By Alan Murray and David Meyer
August 31, 2018

Good morning.

On the cusp of Labor Day weekend, Microsoft announced that it will require its U.S. suppliers to offer a minimum of 12 weeks of paid parental leave to their employees at up to $1,000 a week. The company acknowledged the move “may ultimately result in increased costs for Microsoft,” and exempted suppliers with 50 or fewer employees.

“We have long recognized that the health, well-being and diversity of our employees helps Microsoft succeed,” Dev Stahlkopf, general counsel at Microsoft, said in a blog post. “We also know that we rely on a wide array of other companies to supply us with goods and services that reflect their core competencies, and thus that the people who work for our suppliers also are critical to our success.” You can read the full blog post here.

Expect to hear more of this sort of thing in the years ahead. As discussed earlier this week, the big tech companies are under assault on multiple fronts—one of them being the degree to which they contribute to widening inequality. Much as companies like Walmart and Whole Foods changed environmental practices by putting pressure on their supply chains, the big tech companies now see an opportunity and an obligation to change labor practices and improve the lot of workers beyond their own payrolls.

More news below.

Alan Murray
@alansmurray
alan.murray@fortune.com

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