McDonald's is lobbying the Trump administration to make changes to a bill that would require some employers to provide paid sick leave amid the coronavirus outbreak, executives said on an internal call on Monday, a recording of which was obtained by Business Insider.

McDonald's leadership spoke with President Donald Trump on Tuesday morning. On Monday, they discussed concerns about how the bill would affect franchisees' finances with members of the Trump administration, including Treasury Secretary Steven Mnuchin.

"McDonald's supports the bill that would provide sick leave support to employees impacted by Coronavirus, and in fact, McDonald's and many of its franchise owners have already committed to offer those same benefits to potentially diagnosed employees," a McDonald's representative told Business Insider.

Fast-food chains have faced backlash about workers' vulnerability during the coronavirus outbreak. An estimated 517,000 employees at McDonald's locations don't have paid sick leave.

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McDonald's is pushing for changes to a coronavirus relief bill that would require its restaurants across the US — 95% which are owned by franchisees — to give workers two weeks of paid sick leave, describing it as an effort to protect franchisees' financials.

The fast-food giant has been lobbying the Trump administration and Congress to alter a bill that would require employers with 50 to 500 workers to provide two weeks of paid sick leave, executives said on an internal conference call on Monday. McDonald's has pushed back against plans to use a tax credit to cover the cost, which executives said would fail to protect franchisees.

"We know that the funding mechanism and the repayment timing could cripple small-business owners," David Tovar, McDonald's vice president of US communications, said on the call, a recording of which was obtained by Business Insider.

Tovar said McDonald's was "pulling out all the stops to work with" the National Franchisee Leadership Alliance, "owner-operators, our trade partners, our friends in Congress, congressional leaders, and anyone who can make a difference to fix the bill."

A McDonald's representative told Business Insider that the company was not opposed to the bill itself.

"To be clear, McDonald's supports the bill that would provide sick leave support to employees impacted by Coronavirus, and in fact, McDonald's and many of its franchise owners have already committed to offer those same benefits to potentially diagnosed employees," the representative said. "At the same time, we are sensitive to the economic pressures independent owner-operators face and are supportive of efforts to ensure they have the cash flow needed to keep their employees working."

McDonald's leadership, along with other fast-food executives, spoke with President Donald Trump on Tuesday morning about the response to the coronavirus outbreak. In a speech that afternoon, Trump praised companies' drive-thru and delivery efforts.

McDonald's leadership also spoke on Monday with members of the Trump administration, including Treasury Secretary Steven Mnuchin, to discuss concerns about the bill. Tovar said that he was "encouraged" by Mnuchin's comments and that the Trump administration was open to feedback from McDonald's.

On the internal call on Monday, McDonald's discussed new policies meant to assist franchisees financially amid the coronavirus outbreak. Executives said the fast-food giant would eliminate effective rent for March, forgo base rent in April and May, and delay scheduled ground breaks for new locations. The company is also cutting media spending.

McDonald's announced on Monday that it would close seating areas at all company-owned stores and encouraged franchisees to do the same. McDonald's executives said on Monday's internal call that the company was planning for every possible outcome, including serving a reduced menu and closing locations.

Fast food under fire

A McDonald's worker. Justin Sullivan/Getty Images

The fast-food industry has faced criticism for its lack of paid sick leave amid the coronavirus outbreak. Several restaurant chains and retailers have recently changed their sick-leave policies to allow for two weeks of paid leave for employees who are quarantined or have COVID-19, the illness caused by the coronavirus.

McDonald's adjusted its sick-leave policy to provide 14 days' protected leave for employees at company-owned restaurants following exposure to or a diagnosis of COVID-19. The company previously allowed and continues to allow employees at company-owned stores to earn up to five days of paid time off a year.

A McDonald's representative told Business Insider that while sick-leave policies varied in accordance with local laws, restaurants worked to offer flexibility to employees. Further, the representative added, it is "McDonald's expectation that crewmembers stay home when they are sick."

At 95% of McDonald's locations in the US, owner-operators have the freedom to determine their own sick-leave policies.

Citing surveys from The Shift Project, a New York Times opinion article published on Saturday highlighted McDonald's as the employer in the retail, restaurant, and hospitality industries with the most workers who lack paid sick leave, with 517,000 employees.

"As the new coronavirus spreads across the United States, the time has come for restaurants, retailers and other industries that rely on low-wage labor to abandon their parsimonious resistance to paid sick leave," The Times' editorial board said. "Companies that do not pay sick workers to stay home are endangering their workers, their customers and the health of the broader public."

The coronavirus relief bill originally required a permanent paid-sick-leave requirement. Republicans pushed back, and it was dropped.

McDonald's has asked franchisees to reach out to local representatives to express concerns about the bill's funding mechanism. The International Franchise Association has also pushed back on the bill.

"The construction of the paid leave mandate and refundable tax credit leaves small businesses with a significant and immediate cash flow crisis for the next six to eight critical weeks," Matt Haller, the IFA's senior vice president of government relations and public affairs, wrote in an open letter on Monday.

Are you working at a chain restaurant during the coronavirus outbreak? Email retail@businessinsider.com to share your story.