Microsoft says it will only work with companies that provide paid parental leave

Microsoft raised the bar for its business partners and suppliers in the U.S. Aug. 30, pledging to only contract with companies that offer employees at least 12 weeks of paid parental leave.

The Redmond, Wash.-based tech giant revealed details of its new paid parental leave policy — which it plans to implement during the next 12 months — in a company blog post. Under the new policy, suppliers with more than 50 employees and which "perform substantial work for Microsoft" must offer employees at least 12 weeks of parental leave at up to $1,000 per week, according to the post.

The paid parental leave policy builds on a commitment Microsoft made in 2015, when the company required its suppliers in the U.S. to provide employees with paid time off.

"By implementing that requirement, we were able to focus our resources on businesses that share with us a commitment [to] providing employees with important benefits," Dev Stahlkopf, corporate vice president and general counsel, wrote in the Aug. 30 post. "We believe now is the time to work with our suppliers to take a next important step."

Microsoft contracts with more than 1,000 firms across the U.S. that might be affected by the policy change, including businesses that supply workers to mow company lawns or serve food in its cafeterias, according to The Washington Post.

Microsoft credited a piece of 2017 legislation passed in Washington state as the impetus for its new policy. Under the legislation, which will take effect in 2020, eligible employees will be guaranteed at least 12 weeks of paid family leave. Federal law only guarantees 12 weeks of unpaid parental leave to employees at companies with at least 50 staffers, according to The Washington Post.

"We realized that while [the 2017 legislation] will benefit the employees of our suppliers in Washington state, it will leave thousands of valued contributors outside of Washington behind," Mr. Stahlkopf wrote. "So, we made a decision to apply Washington's parental leave requirement more broadly and not to wait until 2020 to begin implementation."

Microsoft said paid parental leave supports both employees and employers, since women who take paid maternity leave are more likely to rejoin the workforce a year later and earn more than those who do not. Employers who offer paid maternity leave have also reported improved productivity, higher morale and lower turnover rates, according to Microsoft.

"Further, when men and women have the opportunity to take paid leave, it can help counteract gender caregiving stereotypes, neutralize stigmas and promote equity in the home and office," Mr. Stahlkopf wrote. "We will continue to focus our resources on doing business with companies that share our commitment to increase workforce inclusion and support employees and their families."

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