Microsoft to Require Its Suppliers, Contractors to Give Paid Family Leave

Microsoft announced yesterday it will soon require that its suppliers and contractors provide at least 12 weeks of paid time off to new parents, reports the Wall Street Journal . This mandate is applicable to vendors with more than 50 employees and includes workers given substantial assignments for Microsoft. The company anticipates that this new policy will affect thousands of workers across the United States. The paid leave benefit requirement will be limited to $1,000 weekly in compensation, and Microsoft suppliers have one year to implement the change. The change seeks to alleviate criticism leveled against large corporations as they outsource more operations to contracting firms, staffing agencies, and other third parties. This practice allows them to frequently avoid paying the gold-standard salaries and benefits they provide to their internal workers. Third-party companies compete on price for valuable contracts, which reduces their incentive to provide higher pay and more benefits to their own employees. Microsoft general counsel Dev Stahlkopf says when the company implemented the 2015 requirement for paid time off, some suppliers indicated that they had wanted to offer more benefits to employees but were hesitant because competitors with fewer benefits would sell their services at a lower price.