Paid Sick Leave Policy

Resolution Text

WHEREAS:

Nearly 28 million people working in the private sector in the U.S. have no access to earned sick time, or “paid sick leave” (PSL), for short-term health needs and preventive care.1 Working people in the United States face an impossible choice when they are sick: to stay home and risk their economic stability, or to go to work and risk their health and the public’s health.

The vast majority (62%) of the lowest earning 10% of American employees do not have access to PSL.2 48% of Latinx workers and 36% of Black workers report having no paid time away from work of any kind.3

As the COVID-19 pandemic has shown, PSL is a crucial contributor to improved public health outcomes. One study found a 56% reduction in COVID-19 cases per state as a result of temporary federally mandated PSL,4 and others an 11-30% reduction in influenza-like illnesses from state and local mandates.5 State and local PSL mandates have also been shown to reduce the rate at which employees report to work ill in low-wage industries where employers often don’t provide PSL.6

PSL both increases productivity7 and reduces turnover, which in turn reduces costs associated with hiring.8 This is particularly important for lower-wage industries where turnover is highest. Companies across sectors, such Darden,9 Levi’s,10 and Patagonia11 are expanding and publicly sharing their policies.

However, Hilton Worldwide Holdings (Hilton) does not publicly describe its paid sick leave policy. 

Hilton offers a Paid Time Off (PTO) program, described on the company’s website as “best in class.”12 However, there are clear benefits to workers from having standalone PSL and paid vacation days. Importantly, some PTO policies require greater advanced notice/preapproved days off which is often not feasible when sick. 

Hilton estimates that 30 percent of global employees and 45 percent of domestic employees are unionized.13 This resolution defers to the PSL and PTO policies within collective bargaining agreements. 

Hilton also operates franchised brands whose employees may not fall under the company’s leave policy. However, Hilton has the capability to set PSL policy expectations across franchised operations and to offer incentives to franchisees to match the leave policy of company-owned properties. 

More transparency on Hilton’s policies such as worker eligibility requirements, number of hours of PSL provided by worker classification, requirements for using PSL, and whether PSL can be used to care for a family member who is ill help, will investors understand how the company is managing this human capital management, brand maintenance, and public health issue.

RESOLVED: Shareholders of Hilton ask the company to publicly disclose its permanent paid sick leave policy, above and beyond legal requirements. For purposes of this proposal, ‘permanent’ means a sick leave policy that is not conditioned on the existence of a pandemic or other external event.”