The U.S. Labor Department contacted Microsoft and Wells Fargo last week to investigate if their pledges to hire more Black employees are a violation of federal discrimination laws. Both companies pledged in June to double their number of Black leaders and managers by 2025.
- Microsoft also pledged to invest an additional $150m over five years in its internal diversity and inclusion programs as well as $50m to support Black-owned small businesses. The company also promised to use its internal data and technology to highlight and eliminate racial differences in the justice system and eradicate police brutality.
- Wells Fargo has already added two Black leaders to its operating committee, mandated that hiring managers interview a diverse range of candidates for positions that pay at least $100,000, and overhauled the compensation metrics for managers to ensure they are meeting the company’s new hiring and promotion targets.
- Microsoft and Wells Fargo were two of several major companies that pledged to increase diversity in their hires after the killing of George Floyd in May.
- Spokespersons for both Microsoft and Wells Fargo expressed confidence that their diversity initiatives are in compliance with federal law.
- Black employees make up 6% of the senior management at Wells Fargo and less than 3% of Microsoft, despite accounting for 13% of the U.S. population.