PTO Policy. Employees in GID Ohio and Arizona (WFC) (Exempt GID and Arizona employees please refer to the Plan Year PTO Allowance policy)
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1 PTO Policy in GID Ohio and Arizona (WFC) (Exempt GID and Arizona employees please refer to the Plan Year PTO Allowance policy)
2 What is Gap Inc. s Paid Time Off (PTO) Policy? Paid Time Off (PTO) is a combined time-off benefits program and hours accrued can be used for any reason, including vacation, illness, doctor's appointments or personal business. classified as benefits eligible (and who are so notified by the Company) are eligible to accrue PTO hours. Seasonal and part-time employees do not accrue PTO hours. PTO is accrued each pay period based on length of service and job level pursuant to the Accrual Schedule (see below). PTO accrual is based on the number of eligible hours paid per pay period, up to 2080 hours worked. There is no PTO accrual on overtime hours. PTO will be paid at the base salary rate at the time the PTO is taken. whose classification has changed to full-time status will begin to accrue PTO on the first pay period of their new status at the accrual rate based on their length of service. What are the guidelines for taking PTO? PTO can be used for any reason, including vacation, illness, doctor's appointments or personal business. must obtain approval from their Manager prior to taking PTO. are responsible for reporting PTO hours as soon as possible, either before or after it is taken. and Managers are responsible for ensuring PTO is reported in the appropriate Plan Year. Note: If PTO is reported late, after the end of the Plan Year (exact dates depend on pay cycle as described in the What is the PTO Accrual Schedule? section below), the hours reported will be deducted from the next Plan Year s annual allotment. Managers are responsible for ensuring that employees have accurately reported PTO hours taken. must utilize all available PTO before requesting time off without pay. PTO may be reported in 4 or 8 hour increments (Note: Non-Exempt employees may report PTO in.25 increments). and managers are responsible for developing a mutually agreed PTO plan that supports the employee utilizing their PTO annual allotment by the end of the plan year How much PTO is accrued each year? Refer to the Accrual Schedule below. PTO hours accrued is based on the number of eligible hours worked during each pay period. The annual PTO accrual is determined by years of service, and the increase in benefit is effective the pay period following the 5 and 10 year anniversary date of service. Years of service is defined as the cumulative number of years employed at the Company (refer to Rehires section for more information).
3 What is the PTO Accrual Schedule? The following Accrual Schedule is based on a 40-hour work week (please refer to the hourly accrual rate column if you work less than 40 hours a week): Level Completed Years of Service Hourly Accrual Rate Bi-Weekly Paid (Pay Cycle 1 & 2) Weekly Paid (Pay Cycle 3) Days Per Year Benefits Eligible (below Director level) Director to Vice President 0-5 years hours 3.08 hours 20 days (160 hrs) 5-10 years hours 3.85 hours 25 days (200 hrs) 10 or more years hours 4.62 hours 30 days (240 hrs) 0-5 years hours N/A 25 days (200 hrs) 5 years or more hours N/A 30 days (240 hrs) Note, the annual PTO accrual will vary slightly in years when an extra pay cycle is scheduled. These extra pay cycles occur in years when June 30 th falls on a Sunday: Pay Cycle Year Weekly, Cycle , 2019, 2024, 2030 Bi-Weekly, Cycle , 2024 Bi-Weekly, Cycle , 2030 For example, for a full time employee, (below Director level) with 5 years of service, the annual accrual is hours. In the year 2013 however, the annual accrual increases to hours. To identify the correct pay cycle, please refer to the Pay Group section of the GapWeb online paystub, or contact the CSSC at , ext C1= Cycle 1 C2= Cycle 2 C3 = Weekly What happens when the maximum accrual is reached? The maximum amount of PTO hours accrued is determined by the employee s years of service and job level (please refer to the Accrual Schedule above). Once the maximum PTO accrual is reached, the employee will no longer accrue PTO hours until the PTO balance is below the allowed maximum amount.
4 and managers are responsible for monitoring PTO balance to ensure appropriate PTO usage and accurate reporting. Should an employment status change reduce or increase the PTO accrual rate (promotion or demotion), the PTO balance will be compared to the new maximum allowed. If the PTO balance is over the new maximum, the excess PTO hours will be paid out. How will PTO change with an employment status changes? Termination In the event of termination, the value of the PTO balance will be paid in full. Leave of Absence In the event of a Leave of Absence, you may use accrued PTO to supplement your income during your leave. Full-time to Part-time In the event of an employment status change from full-time to part-time, the value of unused PTO balances (PTO accrued less PTO taken) will be paid out in full. State Transfer In the event of a state transfer from CA, MT, MD, NE or PR (where current legislation does not permit a Plan Year allowance program), PTO balances will be paid out. Rehires In the event an employee is rehired by Gap Inc. within one calendar year of the termination date, the benefit level will be re-instated to the tenure level on the last date of employment. (For example, an employee with eight years tenure at time of termination will be re-instated at eight years benefit tenure on first day of rehire if rehired within one calendar year). In the event an employee is rehired by Gap Inc. after one calendar year has passed, the employee will begin at the new employee level, and PTO hours will accrue at that level. Former years of employment will not be included in the tenure calculation. How can PTO supplement longer illnesses and injuries? PTO can be used to supplement an employee s own illness or to care for a family member s illness. Please refer to the Leave of Absence Policy for specific information on how to initiate a Leave of Absence. Short-Term Disability (STD) wage replacement Plans are available for employees who have serious health conditions that may require a leave of absence. Please refer to the Leave of Absence section on the Benefits Homepage. PTO may be used to provide pay for an employee on a medical leave satisfying the seven day waiting period for Short-Term Disability or the waiting period for Worker s Compensation (waiting period varies by state). In the event that the employee received
5 regular pay during the waiting period, those regular hours will be reclassified to PTO hours. PTO may also be used to supplement STD wage replacement. However, in no event may employees supplement pay during a leave of absence and receive more than 100% of their base pay. PTO used during the seven day waiting period will not be credited back to the employee s PTO balance even if disability benefits become available. Holiday Closure Gap Inc. will close our U.S. HQ offices during the last week of every year. The 2013 U.S. HQ Holiday Closure will run from Wed., Dec. 25, 2013 through Wed., Jan. 1, 2014, with Dec. 25 and Jan. 1 as paid company holidays. Similar to years past, HQ employees in the U.S. are required to take PTO during this time unless their organization has determined their work is business critical. As you know, business critical is defined as time-sensitive work that is in direct support of stores, customers or financial close. Of course, supporting our stores and customers is a key focus for us during this important and busy time of the year. The holiday closure does not affect our HQ-International, upper field, distribution centers, or Athleta employees in Petaluma, CA. With manager approval, HQ employees in NY and Albuquerque will have the opportunity to opt-out of the holiday closure. Although the vast majority of employees will not work during this time, some functions feel it is necessary to have someone in the office, or on call. If you are unsure about whether you should plan to take PTO or work during the holiday closure, please speak with your manager or HR generalist. Please note that employees on California Pregnancy Disability Leaves (PDL) or on leaves of absence under the Family Medical Leave Act or California Family Rights Act will not be required to take mandatory PTO during the closure.
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