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Microsoft Drops Non-Compete Clauses and NDAs from Employee Contracts

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people walking past a building entrance with Microsoft name and logo

Microsoft said the initiatives "reflect our fundamental principle that people are the heart and soul of our company and our number one priority."

Credit: Bloomberg

Microsoft announced a handful of significant changes for employee contracts and agreements that would scrap some of the most controversial workplace policies in tech. For one, the tech giant will no longer add non-compete clauses in its contracts for employees in the U.S. and will not enforce it for most of its current staff. Only employees in senior leadership roles will have to sign and comply with non-compete agreements. That means most employees in the U.S. will be free to look for jobs with other companies considered as Microsoft competitors.

The company is also ending another controversial practice: Having workers sign agreements with non-disclosure clauses when resolving disputes and providing separation benefits.

Microsoft is also increasing pay transparency by publicly disclosing salary ranges in all of its job postings across the U.S. starting in January 2023.

From Engadget
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