Policymakers have begun focusing on hospitality and retail workplaces as a potential source of coronavirus spread. Included below are recent developments in the public affairs space:
- The editorial pages of virtually every major publication – the Wall Street Journal, the New York Times, the Washington Post – in the past two weeks have linked the potential spread of coronavirus to a lack of paid sick leave for entry-level workers. Many of our opponents (and even allies) are now on the record supporting some version of paid sick leave (if even temporary).
- Many companies have announced operational changes that include additional wipedowns and increased resources, including employee hours, toward enhanced sanitation practices, following CDC guidelines. For instance, many coffee chains will no longer refill reusable cups.
- The White House and Congressional Republicans are calling for a temporary national paid sick leave policy. The mechanics of how that would work are unclear at this point. It may function as an add-on to unemployment insurance programs. Congressional Democrats are repeating calls national paid sick leave requirements and are holding hearings on the matter. A federal bill is likely to emerge that includes sick leave, possibly a payroll tax cut and stimulus funding for certain industries.
- States are not waiting and many have begun rolling out their own responses. Governors are also using their bully pulpits to call on companies to act, and governors may be able to require employers to provide paid sick leave via their emergency powers once they declare a state of emergency:
- New York Governor Cuomo amended the paid sick leave law to protect quarantined workers from firing and to require companies to pay those workers sick leave during their time in isolation.
- Colorado Governor Polis declared a state of emergency, and through his emergency powers is requiring that hospitality employers (among others) provide four days of paid sick leave for workers.
- Washington Governor Inslee has enacted one of the most sweeping actions which includes relief for employers and unemployment insurance benefits for affected workers.
- Kentucky Governor Beshears held a press conference last week calling on private companies to be flexible in their paid sick leave policies.
- Ohio House Democrats have called on the governor to use his emergency powers to create a temporary paid sick leave program.
- New Hampshire Senate Democrats called on the governor to expand his voluntary paid leave plan in reaction to coronavirus.
- Meanwhile, many companies have worked to get ahead of these conversations, elevating expectations for other brands. Some have made temporary commitments and others have made long-term policy changes. Both are likely to have long-term impacts on the expectations of employees and the marketplace:
- Darden announced new sanitation standards and a national new sick leave policy. Workers will accrue at a rate of one hour for every 30 worked, and current Darden employees will be credited for hours worked in their most recent 26 weeks. New employees will accrue time when they start working, but they cannot use the time earned until they’ve reached 90 days of employment.
- Starbucks announced new sanitation standards and 30 minutes extra time per shift focused on additional wipedowns in-store. The chain will no longer refill reusable cups. Additionally, the company provides paid sick leave.
- McDonald’s announced new sanitation standards and a paid sick leave policy for employees at corporate stores that includes 14 days of pay for workers that are forced to quarantine.
- Bloomin’ Brands stated that any employee quarantined or diagnosed with Coronavirus or with an existing illness will receive sick pay regardless of how much PTO they have accrued.
- Taco Bell and Wendy’s franchisees are using tamper-proof packaging to prevent delivery drivers from opening food containers.
- Walmart will offer two weeks pay if diagnosed or quarantined, potentially an additional 26 weeks of pay if not able to return to work.
- Industry opponents and labor-backed groups are beginning to see opportunity in the crisis. Fight for $15 has made very specific demands of McDonald’s and its franchisees. Expect increased focus in the coming weeks from regulators / policymakers and activist groups. Protecting workers must be a top priority and third party groups will take advantage of situations where workers feel that is not the case. To Access Align's Analysis: Log In or Subscribe