Facebook Boosts Wages, Benefits for Contract Workers

By Meenal Vamburkar

Pay and benefits increased for contract workers and vendor employees at Facebook Inc., the company said May 12. With the increases, Facebook joins other Silicon Valley companies that are taking steps to narrow the compensation gap in the region.

The new standards include a minimum wage of $15 an hour and at least 15 paid days off for holidays, sick time and vacation, Chief Operating Officer Sheryl Sandberg wrote in a blog post.

For workers who do not receive paid parental leave, the social networking company has a $4,000 new-child benefit, Sandberg said.

California's minimum wage is to increase by $1 to $10 an hour in January. The national rate is $7.25 an hour.

Facebook's changes took effect May 1 for some of its largest support teams at its Menlo Park, Calif., headquarters.

The social network is the latest among Silicon Valley companies boosting compensation for contractors whose work can include food service, grounds maintenance and communications.

Apple agreed in March to 25 percent raises for its drivers. Microsoft Corp. said the same month that it would provide contract workers at least 15 paid days off annually.

Facebook's policy will be implemented more broadly within the year, the company said. The expansion will include people who do substantial work for Facebook and who are employed by companies based in the U.S. with more than 25 workers supporting the social network.

About 14 million contractors a year are hired out by U.S. staffing companies, the American Staffing Association said. About 1.8 million of those work in the information technology, scientific and engineering fields.

For more information, see Compensation and Benefits Library's “BLS Survey of Benefits in Private Industry” chapter.

To contact the reporter on this story: Meenal Vamburkar in New York at mvamburkar@bloomberg.net

To contact the editor on this story: Michael Trimarchi in Washington at mtrimarchi@bna.com.

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