SAN FRANCISCO — Microsoft Corp. has agreed to pay $14.4 million to settle allegations that the global software giant retaliated and discriminated against employees who took protected leave, including parental leave or disability leave, the California Department of Civil Rights said Wednesday.

The proposed settlement is the result of a multi-year investigation by the California agency, and the settlement decision still needs to be approved by the state court in Santa Clara County, where the Redmond, Washington-based company has an office.

The state agency, which launched its investigation in 2020, alleged that workers who were excused from work due to pregnancy or disability, or to care for a newborn or sick family member, received lower bonuses and unfavorable performance reviews.

These factors, in turn, undermine workers' entitlement to performance-related pay increases and promotions, and women and people with disabilities are disproportionately affected by this practice, the ministry said.

In a statement, Civil Rights Division Director Kevin Kish praised the company for “coming to the bargaining table and agreeing to make the necessary changes to protect California workers.”

Microsoft responded in a statement that the agency's allegations were inaccurate, but that it would “continue to listen, learn and support our employees.”

As part of the proposed settlement, Microsoft will take steps to prevent future discrimination, including updated training for managers, and an outside consultant will monitor and report on the company's compliance.

The majority of the settlement amount – $14.2 million – will benefit injured workers. The affected employees worked at Microsoft from May 13, 2017, through a yet-to-be-determined date of court approval of the settlement and had taken at least one vacation day that was protected under state or federal law.

Each eligible employee will receive a base payment of $1,500, with a higher payment possible depending on factors such as salary and length of service.

Microsoft employs about 221,000 people worldwide, including nearly 7,000 in California, according to the state's civil rights office. The office did not have an estimate of how many workers might receive a payment.