08:23 AM EDT, 07/05/2024 (MT Newswires) -- (Updates with Microsoft's ( MSFT ) response in the last paragraph.)

Microsoft ( MSFT ) entered into a $14.4 million proposed settlement to resolve an investigation into alleged retaliation and discrimination against workers based on their use of protected leave, the California Civil Rights Department said Wednesday.

The agency said that if approved by the court, Microsoft ( MSFT ) will be required to pay $14.2 million to cover direct relief for employees and $225,000 in costs related to enforcement efforts.

The company will also take steps to prevent future discrimination and give monetary relief to workers who used protected leave in the state from 2017 to 2024, according to the agency.

The agency said that under state and federal law, employers cannot interfere with a worker's use of protected forms of leave, including parental, disability, pregnancy and care for a family member.

The company denied wrongdoing and contended that it had complied with its obligations under applicable law, according to a court filing.

"Microsoft ( MSFT ) is committed to an environment that empowers our employees to take leave when needed and provides the flexibility and support necessary for them to thrive professionally and personally," a Microsoft ( MSFT ) spokesperson told MT Newswires. "While we believe the agency's allegations are inaccurate, we will continue to listen, learn, and support our employees."

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