July 3 (Reuters) - Microsoft Corp ( MSFT ) has agreed to

pay $14 million to settle a California agency's claims that it

illegally penalized workers who took medical or family-care

leave, the agency said on Wednesday.

The California Civil Rights Department in filings in state

court accused the tech giant of retaliating against its

California-based employees who used parental, disability,

pregnancy and family-care leave since 2017 by denying them

raises, promotions and stock awards.

Those workers, who were disproportionately women and people

with disabilities, received lower performance-review scores that

in turn suppressed their pay and opportunities for promotions

and altered their career trajectory, the department said.

The settlement, which must be approved by a state judge,

would resolve a multiyear investigation by the Civil Rights

Department, the agency said.

Microsoft ( MSFT ) denied wrongdoing in the settlement agreement.

The state's Civil Rights Department has announced a series

of large settlements in recent years, mainly in

sex-discrimination cases. Those include a $100 million deal with

videogame maker Riot Games in 2021, a $54 million settlement

with Activision Blizzard last year, and, last month, a $15

million settlement with Snapchat parent Snap.

The agency accused Microsoft ( MSFT ) of sex and disability

discrimination and interfering with workers' rights to take

leave.

It was not clear how many workers could benefit from the

settlement. Redmond, Washington-based Microsoft ( MSFT ) has about 6,700

employees in California, according to court filings.

Kevin Kish, the director of the Civil Rights Department,

said in a statement that Microsoft ( MSFT ) failed to support workers

when they needed time to care for themselves and their families.

"The settlement announced today will provide direct relief

to impacted workers and safeguard against future discrimination

at the company," Kish said.

Along with the $14.4 million payout, Microsoft ( MSFT ) has agreed to

hire an independent consultant to ensure that company policies

do not discriminate against workers who take leave and that

employees are able to raise complaints, and provide training to

managers and human-resources personnel.