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Amazon Offering Emergency Daycare for Employees Until October

By Donna Fuscaldo – Jun 2, 2020 at 2:17PM

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Amazon said it will cover 90% of the cost for ten days of emergency child or adult care for its 650,000 U.S. employees.

Amazon (AMZN -0.54%) is making it easier for employees to juggle day care amid the COVID-19 pandemic, announcing ten days of subsidized emergency backup child or adult care. 

The new family care benefit, which Amazon is offering through Care.com, is available for all of its 650,000 full-time and part-time workers in the U.S. If employees need to tap the benefit, they pay a $25 copay per day for in-center child care or $5 an hour for in-home child or adult care.

A toddler playing with a number wood toy in a daycare setting.

IMAGE SOURCE: GETTY IMAGES.

The tech stock said it's covering more than 90% of the cost of care and plans to invest several million dollars to offer this benefit during the next few months. It didn't say if the spending is part of the $4 billion Amazon earmarked for its COVID-19 response during the current second quarter. Normally it would generate that amount in operating profit.

The benefit will be offered between now and October 2. "We've heard from our employees that access to affordable family care, for both children and adults, is particularly challenging during the COVID crisis and we are committed to supporting them in this unprecedented time," Beth Galetti, Amazon senior vice president of Human Resources, said in a blog post.  

While cities across the country are beginning to lift stay-at-home orders, schools, day cares, and camps remain shuttered, making it difficult for parents to go back to work and get the economy running again. Amazon said that it recognizes the balancing act the pandemic is creating for its employees and found providing access to affordable child care was a top priority based on feedback received from across the company.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool has a disclosure policy.

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