Only 9% of America’s Largest Companies Disclose the Number of Days of Paid Sick Leave They Provide, Unchanged Since 2022
In the U.S., there is currently no federally mandated paid sick leave, despite the vast majority of countries (an estimated 179 of 193) ensuring some form of paid leave for workers in need. Paid sick leave policies are often left in the hands of state and local governments: as of June 2023, 15 states, four counties, and 17 cities have or will soon enact laws regarding paid sick leave to meet the needs of their communities.
In the absence of legislation for all Americans, companies have stepped in, with 77% of workers in private industry able to access paid sick leave as of February 2023. However, nearly 28 million workers still do not have access and just 51% of part-time private industry workers had access compared to 86% of full-time workers. Additionally, compared to their public sector peers who receive 11 days of paid sick leave after one year of employment, private sector workers receive just seven days on average. Perhaps most disheartening is that low-wage workers are significantly less likely to have paid sick leave compared to high-wage workers (38% vs. 96%, respectively).
Key Takeaways
- As of September 2022, 28% of Russell 1000 companies disclose a paid sick leave policy, an increase of seven percentage points compared to September 2021 (21%).
- However, only 9% of Russell 1000 companies disclose the number of days of paid sick leave in their policies as of 2023.
- Among the 89 companies who disclose a policy, just six offer unlimited paid sick leave. Excluding those six, the range is 3-30 days, the mean or average is 8.3 days, and the mode – or most common number – is 10 days.
- For seven industries, zero companies disclose the number of days of paid sick leave in their policies, and 12 industries have just one company disclosing. The Banks industry leads with 12 companies disclosing.
- Alphabet, Axis Capital Holdings, and Advanced Micro Devices lead the Russell 1000 with strong and worker-forward policies on paid sick leave.
Paid Sick Leave Disclosure Among Russell 1000 Companies
In analyzing the Russell 1000 companies included in our 2023 Rankings of America’s Most JUST Companies, 28% disclose a paid sick leave policy for exempt employees as of September 2022, an increase of seven percentage points compared to the year prior. Note that this does not include paid time off policies (PTO), paid vacation, short-term disability leave, or unpaid leave through the Family Medical Leave Act (FMLA).
While this increase in disclosure is a positive sign, only 9% of companies disclose the number of days of paid sick leave they provide. This is unchanged compared to the year before, suggesting that – despite renewed attention on the issue during the COVID-19 pandemic – progress on paid sick leave has stalled.
The Number of Companies by Days of Paid Sick Leave Provided
Of the 951 companies JUST Capital analyzed and ranked in 2023, 89 disclose the days of paid sick leave in their policies (meaning that 862 companies do not disclose). Of those 89 companies, six offer unlimited paid sick leave.
Excluding those six, the range of paid sick leave is 3-30 days, the mean or average is 8.3 days, the median 8 days, and the mode – or most common number of days – is 10. Looking across all companies that disclose the number of days, the majority (53 or 60% of those companies) offer less than two business weeks.
Paid Sick Leave Disclosure by Industry
Looking across sectors, seven out of 36 industries have no companies disclosing the days of paid sick leave in their policies. These include Aerospace & Defense, Basic Resources, Clothing & Accessories, Commercial Support Services, Commercial Vehicles & Machinery, Consumer & Diversified Finance, and Food & Drug Retailers. In addition, 12 other industries have only one company disclosing.
The Banks industry leads with 12 companies disclosing (29% within industry), followed by Software (12 companies or 19%), and Pharmaceuticals (8 companies or 20%).
The Business Case for Companies Providing Paid Sick Leave
While tens of millions of American workers do not currently have access to paid sick leave, multiple studies show that it provides tangible benefits to companies – reducing absenteeism (absence from work) and presenteeism (working while sick), in turn increasing employee satisfaction and productivity, and lowering recruitment and turnover costs. The CDC estimates that absenteeism alone costs businesses $225.8 billion per year due to productivity losses, and one cost-benefit analysis found that while a paid sick leave law would result in a weekly cost of $6.87 per employee, that cost would be more than offset by a weekly benefit of $12.32 per employee due to higher productivity and lower turnover.
In addition, paid sick leave results in fewer occupational injuries, lower healthcare costs for employers, and better public health in general. Finally, providing paid sick leave can increase a company’s brand reputation, which positively influences a company’s market value.
Companies Leading on Paid Sick Leave
Looking closer at the 89 companies that disclose the number of days in their paid sick leave policies, we identified three that stand out, offering policies that range from four weeks to unlimited: Alphabet, Axis Capital Holdings, and Advanced Micro Devices. These three companies demonstrate that paid sick leave is not a one-size-fits-all type of policy, but one that should be iterated to meet the needs of workers and company culture.
Ranked 1st in Internet and 12th overall
Alphabet recognizes “that vacation days are not the only time Googlers may need to take time away from the office,” and for that reason offers a range of “supportive leave options.” Highlighting the honor system, Alphabet offers unlimited sick time that is used at the discretion of the employee. Policy
Ranked 8th in Insurance and 135th overall
Among many other time off benefits, Axis Capital Holdings provides unlimited paid sick leave. Striving to lead its industry, Axis states that it seeks “dedication and accomplishment” from employees, which the company incentivizes through its comprehensive benefits and perks program. Policy
Ranked 8th in Semiconductors & Equipment and 128th overall
Advanced Micro Devices (AMD) provides up to four weeks of paid sick time to support the well-being of its employees. This policy allows employees to take time off when they are unwell without financial consequences. The sick leave policy reflects AMD’s commitment to prioritizing employee health and ensuring a supportive work environment. Policy
A clear path toward healthier workplaces
In a survey conducted in the early days of the COVID-19 pandemic, JUST Capital found that 74% of Americans agree that companies should provide at least 14 days of paid sick leave to all workers. The circumstances that yielded this strong majority may have shifted, but paid sick leave remains a strong priority for American workers. In late 2022, a massive railroad strike was narrowly avoided when Congress intervened to impose an agreement ensuring that 60% of unionized workers at major railroads now have access to paid sick leave.
Despite the clear push for stronger paid sick leave, corporate America lacks transparency on the issue – with just 9% of America’s largest companies disclosing the number of days they provide to workers, unchanged year over year. 28 million workers continue to lack access to paid leave – and many of these workers are part time, low wage, and/or service sector employees, all of which disproportionately tend to be women and people of color, further increasing racial and gender equity divides.
With paid sick leave providing a clear path toward healthier workplaces and communities, corporate leaders should consider investing in policies (if they don’t already exist) and stronger disclosure (if they do). With greater transparency comes a clearer picture of the state of paid leave today, a deeper understanding of what “good” looks like, and the ability for different stakeholders – such as investors and prospective employees – to evaluate companies and make informed decisions. Companies like Alphabet, Axis, and AMD offer a playbook for best practices, as business continues to recognize the benefits of paid sick leave.
JUST Capital, in collaboration with partners, established the Corporate Care Network to advance the well-being of workers and demonstrate the long-term value of investment in workers. The Network is committed to driving increased access to care benefits, including paid leave and flexible work policies, and highlighting leaders in the space.
If you’re interested in gaining insights into how to improve on the issues that matter most to the American public, and learning how your company can get involved in the Network, please reach out to JUST Capital impact@justcapital.com.
We also invite you to explore additional reports generated by JUST Capital’s Corporate Care Network, focused on paid leave and caregiving benefits:
Top Six Companies Leading on Paid Parental Leave in 2023
Top Companies for Working Mothers
Top Companies for Working Fathers
Spotlight on HPE’s Leading Parental Leave Policies
Morgan Stanley Chief Medical Officer on Enhanced Care Benefits
