Microsoft responds to Labor Department probe over diversity policy

Historically, board rooms and upper management in the world’s largest tech firms have been whiter than an 18-wheeler full of baking soda. In an effort to diversify their leadership to better represent their own workforce and customers, Microsoft has recently been making changes to hiring policies and employee training. More recently, the United States Labor Department has been probing the Washington-based tech giant to ensure compliance with Federal Contract Compliance Programs. Microsoft made the probe public today, along with an announcement that they are working within the guidelines set forth for government contractors.

In a blog post published today, Microsoft disclosed that the Department of Labor contacted them in regards to pledges first published back in June. The pledges were centered around plans to invest in diversifying their workforce and strengthening local communities. Allegedly, the Labor Department probe is directed at the language that Microsoft used relating to the goal of doubling the number of black employees in management by 2025 and how this could potentially be in violation of Title VII of the Civil Rights Act.

The Labor Department probe of Microsoft comes on the heels of a White House move to block anti-racism training within federal agencies and federal contractors. The executive order gives the government the power to cancel contracts with firms found to be organizing training related to racial diversity, sexual identity, or gender identity.

In its statement, Microsoft said:

We have every confidence that Microsoft’s diversity initiative complies fully with all U.S. employment laws. We look forward to providing the OFCCP with this information and, if necessary, defending our approach. To help achieve our diversity goals, in an announcement on June 23 we committed to investing in our business ecosystem and broader communities and to invest an additional $150 million over five years in our own internal diversity and inclusion programs.

As part of this effort, we will also continue our work training managers and strengthening career planning and talent development. In the letter we received last week, the OFCCP suggested that this initiative “appears to imply that employment action may be taken on the basis of race.” The letter asked us to prove that the actions we are taking to improve opportunities are not illegal race-based decisions.

Emphatically, they are not.

We are clear that the law prohibits us from discriminating on the basis of race. We also have affirmative obligations as a company that serves the federal government to continue to increase the diversity of our workforce, and we take those obligations very seriously. We have decades of experience and know full well how to appropriately create opportunities for people without taking away opportunities from others.

Furthermore, we know that we need to focus on creating more opportunity, including through specific programs designed to cast a wide net for talent for whom we can provide careers with Microsoft. One thing remains true of all our programs. We hire and promote the most qualified person. And nothing we announced in June changes that. Instead, our continued focus is to work hard to consider and develop the broadest range of qualified candidates for opportunities.

The Labor Department has not yet made any comments on Microsoft’s statement.