Microsoft Pays $14 Million to Settle California Probe Over Worker Leave

Microsoft has agreed to pay $14 million to settle a California investigation into its handling of employee leave requests. The investigation, which was conducted by the California Labor Commissioner’s Office, found that Microsoft violated state laws regarding sick leave, paid time off, and family leave.

The investigation was launched in 2021 after the Labor Commissioner’s Office received complaints from Microsoft employees. These complaints alleged that the tech giant was denying workers their rightful leave entitlements and making it difficult for employees to access paid time off.

Here’s a breakdown of the key findings:

• Microsoft failed to properly pay employees for sick leave. The company was found to be withholding pay for sick leave from some employees, which is a violation of California law.

• Microsoft made it difficult for employees to access paid time off. The company’s leave policies were deemed confusing and restrictive, making it difficult for employees to understand their rights and access their paid time off.

• Microsoft discouraged employees from taking family leave. The company was found to be creating a hostile work environment for employees seeking to take family leave, which is a clear violation of California law.

The settlement agreement requires Microsoft to:

• Pay $14 million in penalties to the California Labor Commissioner’s Office.

• Make changes to its leave policies to ensure they comply with California law.

• Provide training to employees on their rights regarding leave.

• Create a system for employees to file complaints about leave-related issues.

This settlement represents a significant victory for California workers and highlights the importance of enforcing labor laws. It sends a clear message to employers that they must comply with state regulations regarding employee leave.

This case study underscores the importance of companies having clear and accessible leave policies, ensuring fair payment for leave, and creating a supportive environment for employees who need to take time off. It also emphasizes the role of government agencies in protecting workers’ rights and holding companies accountable for violations.