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Facebook hikes wages for contractors to meet cost of living

By Ed Adamczyk
Facebook hikes wages for contractors to meet cost of living
Facebook contractors in more expensive locations like San Francisco and New York City will see the highest minimum wage. File Photo by John Angelillo/UPI | License Photo

May 13 (UPI) -- Facebook said Monday it will move the minimum hourly wage for contract workers and vendors up to $20 -- depending on where in the United States they live.

Human Resources Vice President Janelle Gale and operations Vice President Arun Chandra said the company made the move because the workers' pay and benefits in some cities are inadequate.

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"After reviewing a number of factors including third-party guidelines, we're committing to a higher standard that better reflects local costs of living. This means a raise to a minimum of $20 per hour in the San Francisco Bay Area, New York City and Washington, D.C., and $18 per hour in Seattle," Gale and Chandra said in a statement. "We'll be implementing these changes by mid-next year and we're working to develop similar standards for other countries."

They said contracted content reviewers will also receive raises, up to at least $22 per hour in the Bay Area, New York City and Washington, D.C. Those living in Seattle will see $20 per hour and $18 for the rest of the United States.

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Facebook's plans are in line with efforts within the tech community to increase compensation for those working for large companies. Last month, Google began requiring companies it works with to provide full benefits to temporary and contract workers, who do not typically receive benefits. The benefits include comprehensive healthcare, sick and parental leave and a minimum wage of at least $15 per hour, and apply to all companies that do business with Google.

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The issue has been contentious at Google for years, with employees contending that non-permanent workers and contractors receive lower pay and fewer benefits than regular employees.

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