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Microsoft Reaches $14.4 Million Settlement in California Over Retaliation Claims

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Microsoft Reaches $14.4 Million Settlement in California Over Retaliation Claims

Microsoft has agreed to a $14.4 million settlement in California, addressing allegations that the company retaliated against employees for taking legally protected time off. The California Civil Rights Department announced the proposed settlement, which awaits approval by a state judge. Most of the settlement funds will be distributed to California workers who took parental, family care-taking, or disability leave from 2017 to the present and who opt into the settlement.

The department’s complaint asserted that Microsoft’s policies and practices disproportionately affected women and people with disabilities, leading to discriminatory adverse impacts that were not justified by business necessity. It highlighted that managers were not adequately prevented from considering protected leave when evaluating an employee’s “impact,” a factor used to determine bonuses, promotions, stock awards, and merit increases.

Microsoft, headquartered in Redmond, Washington, employs approximately 6,700 people in California. Under CEO Satya Nadella, the company has made strides in diversifying its leadership and addressing harassment and discrimination issues. Women represented 31.2% of Microsoft’s workforce in 2023, up from 27.6% in 2019.

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Following a 2022 shareholder vote, Microsoft revised its sexual harassment and gender discrimination policies based on recommendations from an external group. As part of the recent settlement, the company will train managers and HR employees in California to ensure protected leave is not considered in “impact” decisions, with APTMetrics monitoring compliance.

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OpenAI CTO Mira Murati Announces Departure After 6 Years

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OpenAI CTO Mira Murati Announces Departure After 6 Years

OpenAI’s Chief Technology Officer, Mira Murati, has announced her departure from the company after six and a half years. In a memo shared on X, Murati expressed that she had made the “difficult decision” to step away from OpenAI, citing her desire for personal exploration and reflection.

“There’s never an ideal time to step away from a place one cherishes, yet this moment feels right,” Murati wrote, emphasizing her commitment to ensuring a smooth transition for the company during this critical time.

Her exit follows other high-profile departures from the company, including co-founder Ilya Sutskever and former safety leader Jan Leike in May, as well as co-founder John Schulman, who left last month to join rival company Anthropic.

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Murati’s departure comes at a time when OpenAI is pursuing a new funding round, potentially valuing the company at over $150 billion, with significant investments anticipated from major players like Thrive Capital, Microsoft, and Nvidia. OpenAI, the company behind ChatGPT, has seen rapid growth since 2022 but has also faced internal controversies and employee turnover, sparking concerns about its ability to scale safely.

Murati became a public figure when she was appointed interim CEO last November after the abrupt ousting of CEO Sam Altman. Despite her departure, she remains focused on supporting OpenAI’s momentum in the coming months.

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

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CrowdStrike Exec Apologizes to US Lawmakers for July IT Outage

During a congressional hearing, CrowdStrike executive Adam Meyers issued a formal apology for the massive IT outage in July, which affected millions of computers globally. In his opening remarks, Meyers expressed deep regret, stating, “On behalf of everyone at CrowdStrike, I want to apologize. We are deeply sorry this happened and are determined to prevent it from happening again.”

Meyers assured lawmakers that the company is committed to learning from the incident and making significant improvements. This includes enhancing testing and checks on updates, as well as altering how future updates are issued to avoid similar disruptions.

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

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Caroline Ellison May Avoid Jail Time for Role in FTX Scandal

Caroline Ellison, the former CEO of Alameda Research and key witness in the criminal case against FTX founder Sam Bankman-Fried, faces sentencing this Tuesday. Despite her involvement in the massive fraud that led to FTX’s collapse, Ellison may avoid significant jail time due to her cooperation with federal authorities.

Ellison admitted to defrauding investors and misappropriating billions of dollars from FTX customers, redirecting funds to Alameda’s speculative trading and debt repayment. Both Ellison and Bankman-Fried face the same serious charges, which carry a potential maximum sentence of 110 years. However, her cooperation with prosecutors has been deemed “extraordinary,” leading the federal Probation Department to recommend “time served” with three years of supervised release.

Her testimony was crucial in portraying Bankman-Fried’s role in the collapse, particularly due to their close personal relationship. This unique insight into his operations helped strengthen the government’s case. While Ellison was involved in fraudulent activities, legal experts believe her lesser control compared to Bankman-Fried will likely result in a lighter sentence, potentially no more than 18 months in prison.

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