Microsoft to require paid family leave for its suppliers, contractors

Microsoft Corp. will soon require its suppliers and contractors to provide at least 12 weeks of paid time off to new parents, the software giant said Thursday.

The policy applies to Microsoft vendors with more than 50 employees and covers workers given substantial assignments for Microsoft MSFT, -0.06% . For example, a staffing agency that provides information-technology professionals to Microsoft and other clients would only have to cover employees assigned to Microsoft. It will impact thousands of workers around the country, the company said.

The paid leave benefit requirement will be capped at $1,000 a week in compensation, and Microsoft suppliers have 12 months to implement the change.

Pressure is mounting for employers, states and the federal government to offer family-leave benefits. Microsoft’s new policy expands an initiative the company put into place in 2015, when it began to require that its vendors provide at least 15 days of paid sick and vacation time annually to workers assigned to Microsoft contracts.

An expanded version of this report appears on WSJ.com.

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