Staffing
Starbucks offering unpaid leave to under-scheduled employees
June 3, 2020
Although Starbucks has reopened more than 85% of its U.S. stores, reduced hours are affecting many employees and has sparked the chain to offer unpaid leave to allow them to apply for unemployment benefits.
"Your feedback has been critical as we consider how to best support partners who are not getting the hours they need, including implementing a new COVID-19 Leave of Absence policy for partners who prefer to take an unpaid leave through Sept. 30 and accrue up to 20 hours per week toward benefits eligibility," Rossann Williams, EVP and president of U.S. company-operated business and Canada, wrote last week in a letter to employees.
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| Rossann Williams, EVP and president of U.S. company-operated business and Canada, wrote a letter to employees offering them unpaid leave. |
Taking the leave would allow employees to explore COVID-19 federal and state unemployment compensation they may be eligible for, such as $600 per week of unemployment assistance under the CARES Act, Williams said. Employees taking the leave, however, may still access their existing benefits including Lyra, Headspace, Spotify, Care@Work, the Starbucks College Achievement Plan and food/beverage benefits.
"Starbucks will pay your health care premiums in full while on leave if you are currently enrolled in one of our plans," wrote Williams, who also said that thousands of partners were already taking advantage of the 30-day Personal Leave of Absence policy. "We want to help make sure partners can now make use of the COVID-19 Leave of Absence if they do not have enough hours available to them during this economic crisis," she said. "I know that every partner’s situation is deeply personal, and each store’s business needs look quite different."
Williams said that the company knows from its experience in China that it's not immune to the widespread economic impacts of COVID-19.
"Customer routines and occasions have changed — for all retailers — and it will take some time to recover," she said. "As many of you are already seeing, the need for modified operations and reduced store hours as well as economic impacts and shifted consumer behaviors are unfortunately impacting our partner hours."
The chain spent last week working with district managers to assess store needs and will soon update store managers, who will then connect with each employee to help them make their decisions.
"Whether you are in the store, field or support center, we all have a responsibility to do everything we can to safely get our stores back in business so we can protect as many partner hours as possible," Williams said. "This is our time to come together and drive our best thinking on how we are going to create Best Moments for our customers, adapt to their new routines, and continue to be that beacon of hope in our communities.
"As we do this, you have our word — and my personal commitment — that we will always keep partner care front and center, especially as we continue to weather the economic crisis ahead. Because we trust in you. We believe in you. And in my heart, I know that we will emerge from this stronger, more resilient than ever before."
