In technology, innovation is the key to economic survival. So it is not surprising that, recently, two tech industry giants announced innovation in paid leave benefits for their employees as a means of attracting and retaining top talent.
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In a notice to employees in August of this year, Microsoft® executive vice president of Human Resources Kathleen Hogan told employees that she “see[s] a tremendous opportunity for companies to put a stake in the ground around what they believe in and what kind of culture they want to build together with employees.”
According to Hogan, Microsoft believes that “it’s our responsibility to create an environment where people can do their best work,” and as a result, Microsoft will be enhancing the company’s U.S. corporate employee benefits in three areas that employees consistently rank among the most important: having time to renew, saving for the future, and flexibility needed to spend time with new children.
As a result, Microsoft has announced a plan to provide its employees with:
- 8 weeks of fully paid maternity disability leave for new mothers,
- 12 weeks of paid parental leave for all parents of new children, and
- A total of 20 weeks of paid leave for birth mothers.
In addition to its new paid leave policy, Microsoft will offer birth mothers an expanded opportunity to use short-term disability leave during the 2 weeks before their scheduled due date to manage the “physical impact that often comes with late pregnancy and to prepare for the upcoming birth.”
Finally, the company promises to offer flexibility for eligible parents to take leave, including the option to take parental leave either in one continuous 12-week period or split into two periods. Parents will also have the option to phase back into work on a half-time basis.
Netflix to grant parents up to 1 year of paid leave
Also in August, Netflix, a video streaming company that promotes a company culture of “freedom and responsibility,” introduced an unlimited leave policy for new parents that allows new mothers and fathers to take off as much time as they want during the first year after a child’s birth or adoption.
According to a statement issued by Tawni Cranz, Netflix’s chief talent officer, the company seeks to give employees “the flexibility and confidence to balance the needs of their growing families without worrying about work or finances.”
Netflix’s new policy will allow parents to return to work “part-time, full-time, or return and then go back out as needed,” and the company promises to “just keep paying them normally, eliminating the headache of switching to state or disability pay.”
As part of the policy, Netflix allows each employee to “figure out what’s best for them and their family, and then work with their managers for coverage during their absences.”
According to Cranz, Netflix’s continued success hinges on “competing for and keeping the most talented individuals in their field. Experience shows people perform better at work when they’re not worrying about home.
This new policy, combined with our unlimited time off, allows employees to be supported during the changes in their lives and return to work more focused and dedicated.”
$1.25M from DOL goes to paid leave grants
The Women’s Bureau at the U.S. Department of Labor (DOL) announced this summer that $1.25 million in grant funds would be available to support research and analysis on the development and implementation of paid leave programs at the nonfederal level. Up to 10 grants of up to $250,000 each will be awarded. Eligible applicants include government entities from states, counties, and cities with at least 100,000 residents.
The program is intended to “support research and analysis needed to explore, develop, implement and/or improve paid family and medical leave programs at the state and municipal levels.”
Grants issued through this program must be used to “conduct research and analysis activities that advance the grantee’s efforts to explore, develop, implement, and/or improve a paid family and medical leave program on behalf of individuals working for employers within its jurisdiction,” according to the Women’s Bureau website.
For more information on the grant program, visit the Grant.gov website.
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 Susan Schoenfeld, JD, is a Senior Legal Editor for BLR’s human resources and employment law publications. Ms. Schoenfeld has practiced in the area of employment litigation and counseling, covering topics such as disability discrimination, wrongful discharge, sexual harassment, and general employment discrimination. She has litigated numerous cases before the U.S. Court of Appeals, state court, and at the U.S. Department of Labor.
In addition to litigating employment cases in state and federal court, she provided training and counseling to corporate clients regarding employment-related issues. Prior to entering private practice, Ms. Schoenfeld was an attorney with the Civil Rights Division at the U.S. Department of Labor in Washington, D.C., where she advised federal agencies, drafted regulations, conducted inspector training courses, and litigated cases for the Office of Federal Contract Compliance Programs, the Directorate of Civil Rights, and the Mine Safety and Health Administration. Ms. Schoenfeld received her undergraduate degree, cum laude, with honors, from Union College, and her law degree from the National Law Center at George Washington University.
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Questions? Comments? Contact Susan at sschoenfeld@blr.com for more information on this topic
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