Nike to Offer Eight Weeks of Paid Family Leave

By Sara Germano 

Nike Inc. will offer extended paid leave to employees caring for new children or sick relatives, joining a growing slate of large companies to increase such benefits as the topic gains political traction.

The world's largest sportswear maker said it would offer eight weeks of paid family leave to the parents of newborns, adopted or permanently placed children, as well as eight weeks of paid leave to workers caring for a sick relative.

The new policy will be extended to full-time U.S.-based Nike employees working 30 or more hours a week, including retail employees and American workers on international assignment. The benefit will be backdated for qualifying workers who welcomed a new child since July 1, 2015.

It marks the first time Nike will include fathers as part of its paid family leave and extends benefits to expanding families of different types. The new policy will be offered in addition to an existing short-term disability benefit offering a minimum of six weeks' paid leave to women giving birth.

The company employs more than 9,200 workers at its headquarters near Beaverton, Ore., and more than 62,000 people world-wide, including retail and part-time workers, according to its most recent annual filing. The upgrades to Nike's benefits policy come on the heels of similar announcements by other fast-growing companies facing intense competition for hires, particularly in the tech industry.

Last year, Netflix Inc. said it would offer unlimited paid family leave for new parents, while Microsoft Corp., Blackstone Group and Adobe Systems Inc. unveiled plans to offer between 16 and 26 weeks off for new mothers.

The issue of paid family leave has gained traction in state legislatures and on the campaign trail this year. Governors Jerry Brown of California and Andrew Cuomo of New York each signed legislation this spring expanding such benefits for residents.

Both Democratic presidential hopefuls Hillary Clinton and Bernie Sanders have made the issue a part of their policy platform on the campaign trail this year.

The family benefits announcement accompanied Nike's periodic sustainability report, which includes targets to reduce waste output, improve sourcing and reduce emissions in owned or operated facilities.

The 115-page report also gave a detailed look at diversity within the company as of its most recent fiscal year. For the first time, U.S. employees who identify as nonwhite reached a majority, with white employees accounting for 48% of workers. Among global workers, 48% are female and 41% of managers are women.

Write to Sara Germano at [e-mail]

(END) Dow Jones Newswires

May 11, 2016 20:54 ET (00:54 GMT)

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