Paid Time Off (PTO) - Carondelet.org

NETWORKPOLICY & PROCEDURETitle: Paid Time Off (PTO)Section: Management of Human ResourcesDept. of Origin: Human ResourcesEffective Date: January 1, 1993Last Review Date: January 21, 2013Signature: _____Daisy Jenkins____________Exec. Vice President, Human ResourcesI. POLICY STATEMENTCarondelet Health Network (CHN) provides a flexible Paid Time Off (PTO) benefit program whichcombines traditional vacation, personal, sick leave and holiday benefits for Eligible Associates.II. PURPOSETo provide time away from work for relaxation, recreation or recovery from brief illness without worry offinancial hardship.III. DEFINITIONSCarved Out Associates: Classification of eligible associates that are deemed to be excluded from the PTOplan, but are eligible for an alternative plan (e.g., front-loaded time off plan) CHN has decided to utilize.Eligible Associates: Associates who are budgeted to work at least 24 hours a week or 48 hours per payperiod, excluding travelers, seasonal and any other contract staff.Eligible Work Hours: PTO hours are accrued on regular hours worked, education hours, PTO or Holidayhours paid, jury duty hours, bereavement hours, and Hospital Convenience Leave (HCL) hours. PTO doesnot accrue on overtime, any premium pay or leave of absence hours. Shift differential is not paid on PTOhours.Front Load Time Off Plan (Executive & Employed Physicians): Certain carved out classifications ofeligible associates deemed to be excluded from the PTO Plan are eligible for the Front Load Time Off Plan.This Plan provides a specified amount of hours off on an annual basis. These hours are made available to theassociate at the beginning of each year. Front Loaded Time Off hours may not be cashed out or carried overat year end. See Front Loaded Time Off Plan Procedure.Workforce Relationships: (hold down the control key and click here to view the types of workforcerelationships policy)IV. ROLES AND RESPONSIBILITIES1) Associates requesting time away from work who have accrued PTO sufficient to cover the requested timeoff are expected to use their accrued PTO.If PTO balance does not cover all of the time requested, it will only pay the associate the PTO balanceavailable.Management is not required to grant a request for PTO solely to prevent a pending forfeiture of excessaccrued PTO, if granting the request will be detrimental to unit operations or other associates. Repeateduse of unscheduled leave or poor time management which causes hardship to unit operations may begrounds for corrective action.2) The minimum PTO usage increments are as follows:a) 15 minutes for Non-Exempt associatesb) Four (4) hours for Exempt associates. Exempt associates absent four (4) hours or more use four (4)hour increments of PTO. Exempt associates absent for less than four (4) hours receive their regularPaid Time Off (PTO)Page 1 of 3

pay for the day. Exempt associates absent more than four (4) hours in a day who do not have enoughPTO hours accrued to cover their absence will receive regular pay for the day.3) Except as provided for in other pay policies, associates may not work and receive PTO pay onthe same day to, in effect, buy back PTO hours. However, the maximum amount of PTO hours anassociatemay take in a workweek is limited to the associate’s regular budgeted hours (FTE status).4) Associates must obtain approval from their manager in advance of scheduling use of PTO. Managersdetermine the amount of advanced notice necessary for efficient scheduling and unit operations.Management must be notified of unforeseen illness or emergency absences in accordance with the call-inpolicy established by the respective department. Failure to observe departmental notice requirementsmay result in unpaid leave and/or corrective action.V. SPECIAL CONSIDERATIONS1) PTO accrues each pay period from date of hire (anniversary date) based on the number of Eligible WorkHours paid (maximum 80 hours) in the pay period.2) Maximum cash-out when an associate transfers to a non-benefited position, another AH ministry oremployment is terminated is one (1) year’s PTO accrual.3) Available hours are held in the associate’s PTO bank until used or cashed out due to:a) Transfer to a non-benefited position;b) Sell-back pursuant to the PTO Cash-Out Policy;c) Personal Leave of Absence (PLOA); ord) Termination from employment4) Associates who do no successfully comlete the 90-day Introductory period are not eligible for PTO cashout.5) Associates with less than six (6) months of service are not eligible for PTO cash-out. Effective for anynew hire associates with a new hire date of 01/01/2013 and greater.6) Payout upon Benefited to Non-Benefited Status Change: When an associate moves from a benefiteligible status to a non-benefit eligible status, an associate may be eligible to receive a pay out of theirunused PTO at 100% of their pay rate prior to the status change.An associate must have six (6) months in the benefit eligible status to be eligible to receive the pay out ofthe PTO upon status change.7) PTO must be accrued before it can be used. All associates may use accrued PTO from date of hire.Negative balances are not permitted for any position classification.8) PTO/Holiday hours may not be used as any part of the necessary notice period for resignation,termination or during a period of disciplinary suspension.9) PTO is used for sick leave and for the first seven days of a Short Term Disability case.10) PTO Transfers within Ascension Health System:Associates transferring to or from another Ascension ministry may transfer up to the maximum PTO bankof hours allowed by the receiving Health Ministry, minus 80 PTO hours (enables associate to accrue timeoff upon transfer). For associates transferring from CHN, the balance of one (1) year’s accrual of PTOhours minus the transfer of hours to the new ministry will result in PTO cash-out. PTO cash-out may berequested in lieu of PTO hours transfer (for movement either to or from CHN) with notice prior toprocessing of the associate’s last paycheck. If PTO cash-out is requested in lieu of PTO transfer, thenumber of hours available for cash-out may not exceed the cash-out maximum equal to one (1) year’sPaid Time Off (PTO)Page 2 of 3

accrual based on the Accrual Schedule noted below. It is CHN’s intention that PTO hours transferred inor out of CHN will result in a financial transfer to either CHN or the accepting ministry.11) Maximum Bank Balance – January Annual Sweepa) Annual Carryover Maximum (annual maximum expressed in hours) where associates accrue PTOthroughout the year until the last pay period in January at which time their bank will be brought downto an annual carryover maximum of 140 hours.b) PTO accrual will continue on the carryover amount after any necessary reduction of hours.12) Cash Conversion Options for PTOa) PTO accrual will continue on the carryover amount after any necessary reduction of hours.b) Sharing PTO- An associate may voluntarily donate (“share”) a portion of their accrued PTO hours tothe PTO share bank to assist other associates. The associate (“Donor”) cannot require that his/hercontribution be distributed to a named individual as condition of the donation. This donation is nonrevocable.The shared hours will be deducted from the Donor’s balance and added to the PTO sharebank13) PTO Accrual ScheduleLength of Service Per Pay Period Accrual Annual Accrual Holiday Pay0 to 12 months 3.08 hours per pay period 80 hours / 10 days 8 holidays paid up to 8hour increments (up to12+ to 60 months 5.85 hours per pay period 152 hours / 19 days 64 hours)60+ to 120 months 7.38 hours per pay period 192 hours / 24 days120+ months 8.92 hours per pay period 232 hours / 29 daysProrated if budgetedhours less than 80 hoursper Pay Period• PTO Hours are used for vacation, sick, personal and leave of absence time• Holiday Hours are awarded to active eligible associates for payment on eight (8) designated Holidays unless an associate workson a Holiday (refer to Supplemental Pay – Holiday Premium Policy for details on Holiday Pay if an associate works on adesignated Holiday)• The date an associate reaches an incremental service range (e.g., 5 years of service), the associate is eligible for the additionalaccrual rate for PTO on the pay period following their anniversary dateVI. PROCESSQuestions concerning the interpretation of this policy should be directed to Human Resources.VII. DOCUMENTATIONPTO codes for Kronos timekeeping system are:• PTOV = PTO (used for) vacation or Holiday time• PTOS = PTO (used for) Sick time• PTO HCL = PTO (used for) paid Hospital Convenience Leave• HCL PTO = PTO accrued not paid Hospital Convenience LeaveVIII. REFERENCES• Supplemental Pay - Holiday Policy• Short Term Disability Policy• Premium Pay Standard Operating Procedure(SOP)• Timekeeping Standards Policy• Types of Workforce Relationships Policy• Front Loaded Paid Time Off Practice (SOP)• PTO Cashout and Share BankPaid Time Off (PTO)Page 3 of 3

IX. APPROVALSCommittee/Department OriginalApproval1 stReview2 ndReview3 rdReview4 thReview5 thReview6thReviewHuman Resources 03/28/00 11/17/03 04/13/07 09/01/07 03/07/08 12/21/08 3/17/11Payroll 03/28/00 11/17/03 10/15/07 5/09/11Policy CoordinatingCommittee06/29/00 11/19/03 04/18/07 10/25/07 03/19/08 01/08/09 6/10/11Committee/Department 7thReviewHuman Resources 1/21/13Payroll 1/24/13Policy Coordinating2/12/13Committee8thReview9 thReview10thReview11thReview12thReview13thReviewPaid Time Off (PTO)Page 4 of 3