RESOLVED, that shareholders of McDonald’s ask the board of directors to analyze and report on the feasibility of extending the paid sick leave policy adopted in response to COVID19 and made effective on March 3, 2020 (see: https://www.usatoday.com/story/money/2020/03/09/coronavirus-paid-sick-leave-apple-olive-garden/5006181002/)  as a standard employee benefit not limited to COVID19 and creating incentives for franchisees to adopt such a policy.

Supporting Statement:  The COVID-19 pandemic and the economic crisis it precipitated have drawn the attention of the public and policy makers to the importance of paid sick leave (PSL) for workers and public health. Workers without PSL risk being fired if they do not come into work despite illness, and some workers cannot afford to miss work and forego wages. PSL allows sick workers to stay home, preventing them from infecting coworkers and those with whom they would come into contact on the job. Studies show that PSL mandates adopted in the U.S. since 2007 have reduced the rate at which employees report to work ill in low-wage industries where employers don’t tend to provide PSL and have lowered disease and overall absence rates.

PSL contributes to public health by allowing workers who have been exposed to an infectious disease such as COVID-19 to quarantine, preventing further exposure. According to public health experts, PSL is cost-effective compared to the costs associated with disease spread. Some policy makers argue that PSL has helped to counter the negative economic impact of the pandemic, especially for women and non-white workers, and that a sustainable economy depends on prioritizing safety. Finally, PSL benefits companies, which report that bolstering paid sick leave improves morale and boosts productivity.

Policy makers are debating PSL at the federal, state and local levels. In response to the pandemic, the Families First Coronavirus Response Act (FFCRA) required that certain employers provide paid time off for workers ill with COVID-19 or quarantined due to exposure to the virus. An October 2020 study found that states that gained PSL as a result of the FFCRA had fewer COVID-19 cases and the relationship was statistically significant. The House-passed HEROES Act would fill some of the FFCRA’s significant gaps and extend its PSL requirement through 2021. State and local governments, including California, San Francisco, and Philadelphia have also acted to mandate PSL for workers not covered by the FFCRA. Even before the pandemic, bills had been introduced in Congress to require employers to provide PSL, and eight states plus the District of Columbia had established PSL social insurance systems.

In company-owned restaurants, McDonalds’ policy provides PSL to employees in cases of COVID-19-related quarantine or restaurant closing. This Proposal asks that McDonald’s analyze and report to shareholders on the feasibility of making that policy permanent and creating incentives for franchisees to adopt a similar policy, in each case applicable to conditions other than COVID-19.

We urge shareholders to vote for this proposal.