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Olive Garden's parent company will now pay sick leave to hourly employees in a watershed moment for the restaurant industry

Hayley Peterson   

Olive Garden's parent company will now pay sick leave to hourly employees in a watershed moment for the restaurant industry
Retail2 min read
Olive Garden
  • Olive Garden parent company Darden Restaurants is giving all hourly employees paid sick leave, effective immediately, amid the coronavirus outbreak.
  • The policy change could pressure other companies to follow suit. More than four in 10 service industry workers have no access to paid sick leave, according to Labor Department data.
  • Little or no access to paid sick leave can result in some employees reporting to work while ill.
  • Visit Business Insider's homepage for more stories.

Darden Restaurants announced late Monday that it will give all its hourly employees paid sick leave benefits, effective immediately, amid the coronavirus outbreak.

Darden owns Olive Garden, Longhorn Steakhouse, The Capital Grille, Eddie V's, Cheddar's Scratch Kitchen, Yard House, Seasons 52, and Bahama Breeze.

Previously, hourly employees of these restaurants were not paid for any work hours they missed due to illness.

Under the new policy, paid sick leave will accrue at a rate of one hour for every 30 hours worked, the company said.

Current employees have been granted a "starting balance" of paid sick leave based on their most recent 26 weeks of work and "can use this benefit immediately," a spokesperson said.

The company said it has considered adding paid sick leave for a long time, and "now is the right time to do it."

"We are fortunate to have outstanding team members working in our restaurants committed to bringing our brands to life and creating lasting memories for our guests," Darden CEO Gene Lee said in a statement. "As we continue to make investments in our employees, we strengthen our greatest competitive edge - because when our team members win, our guests win."

Darden's new policy could pressure others to follow suit

The new policy makes Darden one of the first major companies in the US to change its paid sick leave policies in response to the coronavirus outbreak. It could mark a watershed moment for the restaurant industry if other companies follow its lead.

About one quarter of US workers have no access to paid sick leave, according to Labor Department data. In the service industry, which includes restaurant workers, the share of workers without access to paid sick leave jumps to 42%.

Little or no access to paid sick leave can result in some employees reporting to work while ill, which could be dangerous as the US seeks to contain the spread of the novel coronavirus.

Some members of Congress are now proposing a new measure that would give workers 14 days of paid sick leave during a public health crisis.

"Right now, the experts are telling people: Stay home if you're sick," Sen. Patty Murray, a Democrat from Washington, told the New York Times this week. Many workers aren't paid if they follow that advice, and "that's why paid sick days are such a critical part of this response," she said.


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