Market Overview

Microsoft To Pay Workers Full Wages Regardless Of Hours Worked During Coronavirus Outbreak

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Microsoft To Pay Workers Full Wages Regardless Of Hours Worked During Coronavirus Outbreak

Microsoft Corporation (NASDAQ: MSFT) will pay regular wages to thousands of hourly workers regardless of the time they are required to work during the novel coronavirus (COVID-19) outbreak.

What Happened

"We recognize the hardship that lost work can mean for hourly employees," Microsoft President Brad Smith said in a statement Thursday. "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."

"This is independent of whether their full services are needed," Smith added.

The hourly workers are typically employed by Microsoft contractors on hourly-basis and provided support services to the company's employees across roles such as bus drivers, cafeteria workers, and on-site tech and audio-visual support staff, Smith noted.

Why It Matters

Microsoft has asked its employees in some Seattle and California offices to work from home due to a sudden rise in the number of COVID-19 cases in these areas. This has reduced the need for support staff as well.

Other companies, including Amazon.com Inc. (NASDAQ: AMZN) and Facebook Inc. (NASDAQ: FB), have confirmed cases of the virus among employees.

More than 233 cases have been confirmed countrywide, with 12 reported deaths from the virus, according to data from Johns Hopkins University.

Earlier last week, Microsoft downgraded its guidance for third-quarter earnings due to the impact of the coronavirus.

Price Action

Microsoft stock closed 2.51% lower at $166.27 per share on Thursday and traded slightly higher at $166.75 in the after-hours.

Photo Credit: Public domain photo via Wikimedia

 

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