WHEREAS: More than 28 million people working in the private sector have no access to earned sick time, or “paid sick leave” (PSL), for short-term health needs and preventive care.1 Those most unlikely to have access to paid sick days include Black, Indigenous, and people of color (BIPOC), part-time, immigrant, retail, and other service-industry workers. In fact, 48% of Latinx workers and 36% of Black workers report having no paid time away from work of any kind.2
As the COVID-19 pandemic has shown, PSL is a crucial contributor to public health, allowing workers exposed to illness to quarantine.3 A study found 56% reduction in COVID-19 cases as a result of federally mandated PSL,4 and 11-30% reduction in influenza-like illnesses from state and local mandate.5
For a major retailer like TJX focused on physical stores (versus ecommerce), a lack of PSL could pose significant reputational and operational risks as TJX competes for employees in a tight labor market and for customers seeking a safe shopping experience. The company has identified “Associates’ willingness or ability to staff our stores and distribution centers or otherwise continue employment as a result of health concerns, economic pressures or otherwise” as an operational and strategic risk.6 The productivity loss due to sick employees being forced to work due to lack of PSL, otherwise known as “presenteeism”, can have immediate and chronic consequences estimated to cost the national economy $160 billion annually. This issue can be overcome by paid sick days.7
Also, given that BIPOC workers are disproportionately affected by the lack of PSL, not offering employees a consistent and comprehensive PSL policy could pose reputational risks for TJX by conflicting with the company’s strong commitment to workplace inclusion and “policies and practices that reflect our philosophy of inclusion”.8
Given the operational and reputational risks companies face, shareholders can benefit from better disclose of TJX’s PSL policy. Transparency of the company’s PSL policies such as specific eligibility requirements, amount PSL hours provided to each position, and whether PSL can be used to care for an ill family member will help investors understand how the company manages these risks.
Companies in various sectors have took the initiative in disclose PSL policies for the sake of transparency and to alleviate confusion among employees and shareholders, including Macy’s9, Darden10, Kroger11.