The California Civil Rights Department announced on Wednesday that Microsoft has agreed to pay $14 million to address California agency charges of illegally punishing employees who take sick or family leave.

According to California court documents, the California Civil Rights Department has accused Microsoft of refusing to offer salary increases, promotions, and stock rewards to California employees who take parental, disability, pregnancy, and home care leave since 2017.

According to the department, the proportion of women and people with disabilities among these employees is too high, resulting in lower performance evaluation scores and reduced salaries and promotion opportunities, which also affects their career paths.

This settlement agreement still requires approval from state judges.

Microsoft denies any improper behavior in the settlement agreement. A company spokesperson stated that the company does not agree with the agency's allegations. The spokesperson said, "Microsoft is committed to creating an environment that allows employees to take leave when needed and provides them with the flexibility and support they need to thrive both professionally and personally."

In recent years, the California Civil Rights Department has announced multiple major settlement agreements, most of which involve gender discrimination. This includes a $100 million agreement reached with game developer Riot Games in 2021, a $54 million settlement agreement reached with Activision Blizzard last year, and a $15 million settlement agreement reached with Snapchat's parent company Snap last month.

The organization accuses Microsoft of discriminatory behavior based on gender and disability, as well as interfering with the freedom of employees to take leave. It is currently unclear how many employees will benefit from this agreement. According to court records, Microsoft has approximately 6,700 employees in California.

Kevin Kish, Director of the California Civil Rights Department, stated that Microsoft has failed to provide support when employees need to take care of themselves and their families. Kish said, "The settlement agreement announced today will provide direct compensation to the affected employees and prevent future discriminatory behavior by the company."

In addition to a compensation of $14 million, Microsoft has also agreed to hire an external consultant to ensure that company policies do not discriminate against employees who take leave. Employees can file complaints and provide training to managers and human resources professionals.