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Microsoft will pay hourly workers regular wages even if their hours are reduced because of COVID-19 concerns

Catherine Shu

As more COVID-19 cases are identified in the United States, some companies are asking employees to work from home if possible. But that impacts the jobs of people who work in on-site operations, including many who are paid by the hour. Today Microsoft said that it will continue paying all vendor hourly service providers in Puget Sound and Northern California their usual wage, even if their work hours are reduced.

The announcement specifically refers to Microsoft workers in the Puget Sound region and Northern California, but the company said it will "[explore] how to best move forward in a similar way in other parts of the country and the world that are impacted by COVID-19."

In a blog post, Microsoft president Brad Smith wrote that employees in those regions who can work from home have been asked to do so.

"As a result, we have reduced need in those regions for the on-site presence of many of the hourly workers who are vital to our daily operations, such as individuals who work for our vendors and staff our cafes, drive our shuttles and support our on-site tech and audio-visual needs," he said. "We recognize the hardship that lost work can mean for hourly employees. As a result, we’ve decided that Microsoft will continue to pay all our vendor hourly service providers their regular pay during this period of reduced service needs."

Smith added, "While the work to protect public health needs to speed up, the economy can’t afford to slow down. We’re committed as a company to making pubic health our first priority and doing what we can to address the economic and social impact of COVID-19. We appreciate that what’s affordable for a large employer may not be affordable for a small business, but we believe that large employers who can afford to take this type of step should consider doing so."

Microsoft is among several tech companies that have asked employees in places where COVID-19 cases have been identified to work from home, like Washington state and California, including Google, Lyft and Square. Concerns about the COVID-19 have also led to the cancellations of major events, like Mobile World Congress and Google’s I/O developer conference.