Facebook Sets Minimum Pay, Benefits For Staffing Firms

Facebook logoOne of Silicon Valley’s giants said today it will require its staffing vendors to pay their workers at least $15 an hour and give them paid sick leave and vacation.

Facebook COO Sheryl Sandberg announced the new policy in a blog post today.

“We are implementing a new set of standards on benefits for contractors and vendors who support Facebook in the US and do a substantial amount of work with us. These benefits include a $15 minimum wage, minimum 15 paid days off for holidays, sick time and vacation, and for those workers who don’t receive paid parental leave, a $4,000 new child benefit for new parents,” she said.

The policy took effect May 1 for vendors and contractors working at the company’s Menlo Park, Calif. headquarters. Within a year, Sandberg wrote, the policy will be implemented at all Facebook work sites.

She didn’t say how many workers would be affected.

Among Silicon Valley firms, Facebook is in the forefront of the drive to improve pay and benefits for the thousands of janitors, groundskeepers, cafeteria workers, drivers and other agency-provided workers. The matter became a national issue last summer when a union-connected research Silicon Valley pay disparity chartgroup, Working Partnerships USA, issued a report highlighting the lack of diversity — and the pay discrepancies — among the Valley’s biggest tech firms.

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Blacks and Latinos, the report observed, comprise less than 5% of the workforce at companies like Google and Facebook and LinkedIn, but account for up 75% of the blue collar contractors. Janitors earn an average of $11.39 and hour, which the report compared to the $61.87 average pay of a software developer.

Not long after the report was issued, and after months of picketing by unionized security guards, Google announced it would convert its contract security guards to W-2 employees.

Outside of tech, other companies have been under pressure to improve pay and benefits for their workers. In February, Walmart said it would raise its starting pay to $9 an hour.


John Zappe is the editor of TLNT.com and a contributing editor of ERE.net. John was a newspaper reporter and editor until his geek gene lead him to launch his first website in 1994. He developed and managed online newspaper employment sites and sold advertising services to recruiters and employers. Before joining ERE Media in 2006, John was a senior consultant and analyst with Advanced Interactive Media and previously was Vice President of Digital Media for the Los Angeles Newspaper Group.

Besides writing for ERE, John consults with staffing firms and employment agencies, providing content and managing their social media programs. He also works with organizations and businesses to assist with audience development and marketing. In his spare time  he can be found hiking in the California mountains or competing in canine agility and obedience competitions.

You can contact him here.


2 Comments on “Facebook Sets Minimum Pay, Benefits For Staffing Firms

  1. Remember Henry Ford decided to pay his workers enough so that they could buy the cars that they were building, creating the mass market. It is time that we stop the race to the bottom and acknowledge that lower skilled workers do work hard and have families to support. The 1% have more than they could ever need. I like to see less outsourcing and treating everyone like they are part of the team.

  2. That story about Ford isn’t true. The math proves it isn’t true, because you can’t increase worker pay enough to pay for a new car without also raising the car price.

    But the bigger story is Facebook is making a huge legal mistake.

    Co-employment is a real thing, and mandating what a staffing firm’s employees make is not Facebook’s decision.

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