An In-Depth Look at Costco‘s Bereavement Policy

The loss of a loved one is a painful disruption to life that no one is ever truly prepared for. In addition to the heavy emotions of grief, the logistics of arranging a funeral, managing an estate, and handling endless paperwork can quickly become overwhelming.

During such a difficult time, one of the last things anyone wants to worry about is work. Will my employer let me take time off? How many days will I get? Will it be paid? Is my job protected?

Fortunately, Costco Wholesale, the second largest retailer in the world, provides its employees with bereavement leave to navigate the practical and emotional challenges that come with loss. Let‘s take a detailed look at Costco‘s policy and how it stacks up in the retail industry.

The Basics of Costco‘s Bereavement Leave

According to the Costco Employee Agreement, both hourly and salaried employees are eligible for up to 3 days of paid leave in the event of the death of an immediate family member, including:

  • Spouse or domestic partner
  • Child or step-child
  • Parent or step-parent
  • Sibling or step-sibling
  • Grandparent
  • Grandchild
  • Mother-in-law or father-in-law

Employees receive their regular rate of pay for any scheduled shifts missed within those 3 days. The time does not count against earned vacation or sick days.

To qualify for bereavement pay, the employee must have worked at Costco for at least 90 continuous days prior to the death. Seasonal, temporary, or inactive employees are not eligible for paid leave.

It‘s important to note that Costco limits its definition of "immediate family" to the specific relatives listed above. The loss of an aunt, uncle, cousin, or close friend would not be covered under the standard policy.

How Costco‘s Policy Compares

To put Costco‘s bereavement leave into context, let‘s look at some industry benchmarks. According to a 2022 report by the Bureau of Labor Statistics:

  • 88% of civilian workers had access to bereavement leave (paid or unpaid)
  • Within that group, only 60% received paid bereavement
  • On average, employees received 4 days of paid bereavement
  • Part-time workers were less likely to have paid bereavement than full-time

Based on this data, Costco‘s policy of providing 3 days paid leave to both hourly and salaried workers is relatively generous compared to the average employer. Many companies still view bereavement as a luxury benefit rather than a necessity.

That said, some of Costco‘s competitors in the retail space offer more expansive policies:

Retailer Bereavement Leave Policy
Amazon – 3 paid days for immediate family
– 1 paid day for extended family
– Up to 6 additional weeks unpaid
Walmart – 3 paid days for immediate family
– 1 paid day for extended family
Target – 3 paid days for immediate family
– Additional unpaid days if needed
Home Depot – 3 paid days for immediate family
– Up to 10 paid days in special circumstances
Lowe‘s – 3 paid days for immediate family
– Up to 7 paid days if air travel is required

While Costco matches the standard 3 paid days for immediate relatives, some retailers offer additional paid time for extended family or special circumstances such as extensive travel.

Notably, Costco does not provide any paid leave for non-immediate family or allow employees to take additional unpaid days through the bereavement policy like some of its competitors. However, workers may be able to use vacation time or other paid leave if they wish to attend services for an aunt, uncle, close friend, etc.

The High Costs of Unresolved Grief

You may be thinking, how much time off do people really need? Isn‘t 3 days enough to attend a funeral and get back to normal? The reality is that grief is a highly complex and draining process that can‘t be neatly resolved in 72 hours.

Research has consistently shown that unresolved grief can lead to a number of psychological and physical issues, including:

  • Prolonged feelings of sadness, anger, guilt, anxiety, and despair
  • Intense loneliness and social withdrawal
  • Difficulty sleeping, changes in appetite, and lack of energy
  • Reduced immune response and increased risk of illness
  • Lack of focus, memory loss, and impaired work performance
  • Increased risk of depression, PTSD, substance abuse, and suicide

The impacts of bereavement are so strong that grieving employees lose over 30 days of productivity on average due to presenteeism and absenteeism in the year following a significant loss. For employers, that translates to nearly $75 billion in missed work and increased errors every year.

By contrast, when workers feel supported in their grief and have time to process the loss in a healthy way, they are more likely to return to work re-energized, focused, and deeply loyal to their employer. It‘s a classic example of compassionate policies leading to better business outcomes.

An International Perspective

As a consumer, it‘s easy to assume that a few days of bereavement leave is a generous and complete benefit. But when you look at the policies in other countries, the insufficiencies of U.S. standards become glaringly obvious.

For example:

  • Australia requires companies to provide 2 days of paid bereavement leave each time an immediate family member dies, up to 2 weeks per year.
  • The UK entitles workers to "reasonable" time off to deal with a death, which is paid at the employer‘s discretion and generally lasts 2-5 days.
  • France mandates that companies give employees 1-3 days of paid leave depending on their relationship to the deceased, plus unpaid time as needed.
  • In Canada, employees who have worked at least 3 months receive 3 paid days of bereavement for immediate family and 2 unpaid days for extended family.

When you consider that many developed nations have laws requiring several days of bereavement leave, the fact that the U.S. has no such mandate seems downright archaic. A company offering just 3 paid days starts to feel far less magnanimous.

What Costco Can Do Better

While Costco‘s bereavement policy is undoubtedly a valuable benefit, there is still room for improvement. As a retail worker myself and an avid Costco shopper, here are a few suggestions I would offer the company:

  1. Expand the definition of "immediate family" to include aunts, uncles, and cousins. Family dynamics have evolved and many households rely on extended family members for childcare, financial support, and more. Losing these integral relatives can be just as devastating as losing a sibling or grandparent.

  2. Allow employees to take up to 5 days of paid bereavement leave if they need to travel more than 500 miles to attend a funeral. Having to rush to an airport, fly cross-country, and jump right back into a normal work schedule is incredibly taxing, especially when you‘re already drained by grief. A couple extra days can provide much-needed breathing room.

  3. Provide ongoing support and flexibility to bereaved employees in the weeks and months following a loss. Simple accommodations like offering a reduced schedule, flexible hours, or temporary work-from-home options can make a world of difference to someone struggling to get through the day.

  4. Create a relief fund for employees to make tax-deductible donations that help bereaved coworkers offset unexpected funeral or travel costs. Even a few extra hundred dollars can offer significant peace of mind when you‘re suddenly faced with exorbitant expenses on top of your grief.

  5. Invest in management training to ensure supervisors and HR staff are equipped to handle conversations about death, accommodate individual needs, and create a supportive environment for bereaved employees. These skills don‘t always come naturally, but some basic education can prevent a lot of unintended insensitivities.

Grief is a highly personal journey that looks different for each individual. There is no singular policy that will be a perfect fit for every loss. But by expanding its bereavement leave and enhancing the supplementary assistance provided, Costco can ensure that employees have the time, space, and resources they need to process the death of a loved one in a way that aligns with their unique situation and beliefs.

The Bottom Line

At the end of the day, bereavement leave is about far more than just attending a funeral – it‘s about providing workers with the support and security to grieve without sacrificing their livelihood in the process. It‘s about recognizing our humanity and treating employees with dignity during one of the most difficult experiences of their lives.

By offering 3 days of paid leave to all employees, Costco outperforms many of its retail peers and meets the basic needs of bereaved workers. But when compared to international standards and the true scope of loss, it becomes clear that U.S. employers, Costco included, still have significant room for growth.

Expanding its policy and enhancing its support for grieving employees would not only benefit Costco‘s workers on a deeply personal level, but also its customer experience and bottom line. When employees feel valued and supported, they are more engaged, productive, and loyal. In an industry as competitive as retail, that positive culture is a powerful differentiator.

At a time when the nation is collectively grieving so many unimaginable losses – from the devastating impacts of COVID-19 to yet another tragic mass shooting – all companies have a responsibility to re-examine their bereavement policies and identify opportunities to provide better, more compassionate assistance.

The loss of a loved one will never be easy, but it is a burden that can be lightened by an employer that understands the gravity of the experience and responds with genuine empathy and care. My hope is that in elevating the conversation around bereavement leave, more retailers like Costco will step up to ensure that no employee has to choose between properly grieving and maintaining their livelihood ever again.