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Microsoft US Suppliers Required To Offer Paid Parental Leave

The company wants to apply its home state of Washington's family leave program "more broadly."
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Microsoft US Suppliers Required To Offer Paid Parental Leave

Microsoft announced Thursday it will soon require all of its U.S.-based suppliers to offer employees paid parental leave.

In a post on the company's website, the tech giant said its new policy will apply "to all parents employed by our suppliers who take time off for the birth or adoption of a child." Specifically, its suppliers must offer their employees a minimum of 12 weeks paid parental leave, with up to $1,000 per week compensation.

The new requirements only apply to suppliers with more than 50 employees, and are not meant to replace "more generous" state laws.

Although Microsoft acknowledged this might result in increased costs, it will still try to implement these changes over the next year.

The company further elaborated on its decision, pointing to studies showing that employers who offer paid parental leave experience better productivity and lower turnover rates.