Darden rolls out paid sick leave plan
The restaurant giant behind Olive Garden and LongHorn Steakhouse has rolled out a paid sick leave policy at the same time restaurants are facing a tight labor market and concerns about coronavirus.
The new policy for Orlandobased Darden Restaurants, which had about 1,800 restaurants in November, applies to all of its more than 180,000 hourly employees. About 75% of those workers did not have paid sick leave before the policy, spokesman Rich Jeffers said.
“With the stroke of a pen, they have just worked their way around everything, and they have scooped the entire industry,” said restaurant analyst John Gordon. “They have set the casual dining standard.”
But in 2013, Gov. Rick Scott signed a bill backed by Darden Restaurants and other businesses that blocked local governments from enacting laws to mandate paid sick time. Activists had pushed for sick time in Orange and Miami-Dade counties.
When asked about the change, Jeffers pointed out the company had different leadership at the
time. Gene Lee became CEO in 2015.
Stephanie Porta, who advocated for earned sick time in Orange County, called Darden’s announcement “bittersweet.” She added she hoped the company would track the impact of the new policy to show that it is actually good for business.
“It’s never too late to do what’s right, and we’re not going to forget their history of doing what was wrong,” said Porta, executive director of Organize Florida.
Coronavirus impact
Jeffers said Darden has been working on the sick leave policy for some time, but the current environment accelerated the plan.
“The development of paid sick time is not in response to COVID-19,” he said.
The company’s restaurants are also now conducting hourly handwashing checks and more frequently sanitizing areas that guests touch, such as door handles and condiments, Jeffers said.
In addition to concerns over coronavirus, Gordon pointed out restaurants have faced difficulties attracting workers. He said the move by Darden is good marketing. The unemployment rate was 3.5% in February, according to the U.S. Bureau of Labor Statistics.
“Customers do notice this stuff,” Gordon said. “I am aware of polls over a period of time that actually indicate that companies should take care of their employees.”
Darden wasn’t alone in announcing a sick leave policy this week.
Instacart, an online grocery pickup and delivery service, announced a sick pay policy for its in-store shoppers, part-time employees who can earn one hour of sick pay for every 30 hours worked with a cap of 40 sick pay hours per year.
“Today, we’re introducing a number of new guidelines, resources, and investments to further support the health and safety of all Instacart shoppers,” a statement from Instacart said. “These include updated health and safety guidelines for shoppers, a new sick pay policy for all in-store shoppers nationwide, and additional support for any shopper or part-time employee affected by COVID-19.”
Coronavirus is a wake-up call for state, local and federal policy, said Rich Templin, director of politics and public policy with Florida AFL-CIO, which represents more than 500 unions.
“It’s just not a good or sustainable practice in a state that relies so heavily on tourism and service to have people interacting with tourists when they’re sick,” Templin said.
“This approaching pandemic is really pointing out the inefficiencies and the unfair practices that especially lower-wage workers have to deal with that simultaneously make it so much harder to stop the spread of the disease.”
Darden’s policy
Hourly employees at Darden Restaurants will accrue one hour of paid sick leave for every 30 hours worked, Jeffers said.
Current employees will have a starting balance of sick time based on their most recent 26 weeks of work and can use it immediately. New hires will begin accruing sick time upon starting and can use it after 90 days of employment.
The pay rate will be based on the employee’s 13-week average.