It was learned from the Finance and Economics APP that the California Civil Rights Department of USA announced on Wednesday that Microsoft (MSFT.US) has agreed to pay $14 million to settle the allegations made by the institution. The institution claimed that Microsoft unlawfully punished employees who took sick leave or family care leave.

The institution accused Microsoft in the documents submitted to the state court of retaliating against California employees who have used parental leave, disability leave, pregnancy leave, and family care leave since 2017 by denying them salary increases, promotions, and stock rewards.

The department stated that a high proportion of these employees are women and disabled persons who have received low performance evaluation scores, which in turn suppresses their salaries and promotion opportunities, and changes their career paths.

The institution stated that the settlement agreement must be approved by a state judge and will resolve the Civil Rights Department's many years of investigation.

Microsoft denies any wrongdoing in the settlement agreement. In a statement, the company spokesperson said that they do not agree with the allegations made by the institution.

The spokesperson stated: "Microsoft is committed to fostering an environment that allows employees to take time off when they need it and providing them with the necessary flexibility and support to grow both professionally and personally."

In recent years, the state's Civil Rights Department has announced a series of major settlements, mainly in gender discrimination cases. These include a $100 million agreement reached with video game manufacturer Riot Games in 2021, a $54 million settlement agreement reached with Activision Blizzard last year, and a $15 million settlement agreement reached with Snapchat parent company Snap last month.

The institution accuses Microsoft of gender and disability discrimination and interfering with the right of its employees to take time off.

It is currently unclear how many workers will benefit from the settlement agreement. According to court documents, Microsoft, headquartered in Redmond, Washington, has around 6,700 employees in California.

Kevin Kish, the head of the Civil Rights Department, stated in a statement that Microsoft did not provide support to employees when they needed time to take care of themselves and their families.

Kish said, "The settlement announced today will provide direct relief to affected workers and protect them from future discrimination by the company."

In addition to paying $14.4 million, Microsoft has also agreed to hire an independent consultant to ensure that the company's policies do not discriminate against employees taking time off, to provide employees with a way to file complaints, and to provide training for managers and human resources staff.