TITLE: PTO and EIB Policy Database # 4682 CATEGORY: Policy Page 1 of 6

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1 TITLE: PTO and EIB Policy Database # 4682 CATEGORY: Policy Page 1 of 6 Committee Review: Human Resources, CPPC Required Review: q 1 yr. POLICY: PTO and EIB Policy Nanticoke Health s recognizes the importance of time away from the work place for personal reasons including recreation, rest, celebration and health. A benefit program providing a continuation of wages allows such time without a substantial loss in pay. Nanticoke Health s provides Paid Time Off (PTO) and Extended Illness Bank (EIB) time to eligible full time and part time employees for periods of time away from work with pay. PTO and EIB benefit time encompasses traditional Vacation, Holiday and Sick Time. The supervisor must approve all requests by the employee to use accrued PTO. Availability of PTO or EIB time does not override the application of Nanticoke Health s Absence from Work policy, which is designed to help ensure a dependable and consistent work force. Employees could be disciplined or even terminated under the Absence from Work policy even though they have accrued PTO or EIB available. SCOPE: Employees are eligible for PTO hours based on length of continuous service and employment status. DEFINITIONS: Full time status: an employee normally scheduled to work from 72.0 to 80.0 hours per biweekly pay period. Part time status: an employee normally scheduled to work from 32.0 up to 72.0 hours per biweekly pay period. Eligible status: an employee in either a full time or part time status. Continuous : completed years with no break in employment longer than ninety (90) days with Nanticoke Health s. Benefit Eligible Date: the date an employee becomes eligible for benefits. WAITING PERIOD: Full Time and Part Time employees are eligible to use accrued PTO-EIB upon hire. See PTO Usage section. ACCRUALS: PTO and EIB accruals begin with the 1 st day of the pay period following the employee s benefit eligible date. If an employee is on Leave of Absence (LOA), and is utilizing PTO or EIB, accruals will not continue.

2 Title: PTO and EIB Policy Page 2 of 6 PTO and EIB hours accrued in a given pay period will not be available for use until the following pay period. Employees hired directly from another Nanticoke Health s affiliation (i.e. there has been no more than 90 days elapsed between termination at the prior location and beginning work at this location) will receive credit under this PTO/EIB policy equivalent to any accrued but unused PTO or EIB at their prior location up to the maximums specified in this policy; as well as have their existing balances transferred to the new NHS employer. Employees will accumulate PTO and EIB based on the following schedule. PTO/EIB ACCRUAL CHART FULL TIME NON-EXEMPT (HOURLY) ized PTO per Hours per 0 to to Level Three 11 to Level Four PART TIME NON-EXEMPT (HOURLY) per ized PTO Hours Varies on hours Varies on hours per per hour max of N/A N/A per hour max of N/A N/A

3 Title: PTO and EIB Policy Page 3 of 6 FULL TIME EXEMPT (SALARIED) PTO per ized PTO EIB per EIB Level Three FULL TIME DIRECTORS, MID-LEVEL PROVIDERS AND SENIOR LEADERSHIP ized PTO Hours per per MAXIMUM ACCRUALS: PTO benefits may be accrued to a maximum number of hours as defined in the PTO/EIB Chart. When the maximum is reached, further accumulations stop until PTO time is either used or taken during cash-out options. EIB benefits will accrue to a maximum of 920 hours. accumulations stop until the balance falls below 920 hours. When the maximum is reached, further PTO USAGE: PTO benefits are available for use by non-exempt employees in one-hour increments and for exempt employees in eight-hour (one day) increments. Employees are responsible for requesting PTO in advance, according to departmental policies and procedures. PTO time not scheduled in advance may be counted as an absence occurrence. Supervisors should give approval or disapproval to the employee as soon as possible upon receiving the request. The operational needs of the department are primary in determining approval of PTO requests. The responsibility for scheduling PTO and for approving or denying PTO requests rests with management. When reviewing requests for PTO, supervisors will consider scheduling needs and the order in which the request was received. PTO benefits must be available to use. Negative balances are not allowed.

4 Title: PTO and EIB Policy Page 4 of 6 PTO may only be utilized in lieu of regularly scheduled shifts, not exceeding hours routinely during a pay period, excluding overtime. Time in excess of an employee s regular schedule will not affect utilization of previously scheduled PTO. Example 1: An employee works 40 hours in a week, Monday through Friday. The employee requests to take 8.0 hours of PTO on Saturday. This request should be denied. Example 2: An employee is scheduled to work 32.0 hours in the current week, Monday through Thursday, and take Friday as a PTO day. Due to department needs, the employee is scheduled to work an additional eight hour shift on Tuesday night. The employee finished the week with 40.0 hours regular time and 8.0 hours PTO. The 8.0 hours of PTO above the routinely scheduled hours are permitted, since the PTO hours were previously scheduled. In the event of an absence due to low work volume or closure of an office/business operation, a nonexempt employee generally may choose to utilize PTO instead of absent without pay. Upon the termination of employment, the last day will be the effective date of the termination. PTO hours accrued but not taken at the time of termination will not be applied to the last day when determining benefit coverage except retirement. PTO CASH-OUT OPTION: All Nanticoke Health s employees with one year of service may cash-out PTO hours four(4) times during a calendar year (12 months) period. The cash-out rate is 75%. Full-time employees must retain a minimum balance of 80.0 hours after any cash-out. Part-time employees must retain a minimum balance of 40.0 hours. Each employee has access to ONE (1) cash-out quarterly for the 1 st pay period of the months of March, June, September and December. The request must be in whole hour increments. The request must be for twenty (20) hours or more. PTO Cash-Out is requested on a PTO Cash-out Request Form and requires the supervisor s approval. Approved requests should be forwarded to Payroll for processing 14 calendar days prior to the 1 st pay period in the months of March, June, September, and December. EXTENDED ILLNESS BANK (EIB) USAGE: EIB may be used after the employee has been off work due to personal illness for twenty-four consecutively scheduled work hours (paid by PTO or taken unpaid) per occurrence. EIB usage is not permitted for family members illness. USAGE AND PAYMENT OF PTO AND EIB: An employee on a Medical or FMLA Leave of Absence is required to use any available EIB and PTO

5 Title: PTO and EIB Policy Page 5 of 6 hours in place of normal scheduled hours until a zero balance is reached in each account. (See Absence from Work and Leave Of Absence policies.) PTO and EIB benefits are paid at base pay, exclusive of differentials. PTO and EIB hours are classified as non-productive hours for payroll purposes. The PTO balance of an employee is paid out at 100% upon termination of employment. EIB balances are not cash redeemable at termination or retirement. An employee changing to a non-eligible status will be paid the PTO balance at his/her hourly rate in effect before the change. All EIB hours will be suspended for use while in a non-eligible status and then reinstated(assuming continuous service) upon return to an EIB-eligible status. Employees eligible for EIB may qualify for coverage under the Family Medical Leave Act. ENFORCEMENT: Employees are required to provide complete and correct information when PTO or EIB usage is requested, and to keep their manager informed of changes in circumstances which may affect the reason for the PTO or EIB request. Nanticoke Health s management may require a physician statement to validate the need for time off. PTO payout when an employee separates (voluntary or involuntary) will follow the Separation from Employment policy. REFERENCE: Absence From Work policy Leave Of Absence Separation from Employment policy Worker s Compensation Effective Date: July 1, 2011 Revised: January 23, 2013, November 22, 2013

6 Title: PTO and EIB Policy Page 6 of 6 PAID TIME OFF (PTO) CASH-OUT REQUEST FORM NAME: DEPARTMENT: # OF HOURS REQUESTING: (minimum of 20 hours and must be in whole hour increments) I agree that by signing the PTO CASH-OUT REQUEST FORM I have now used my one PTO CASH- OUT for the quarter. I understand that 80 PTO hours (Full time) and 40 PTO hours (Part time) accrued must remain after the cash-out. I also understand that this form must be submitted to my director in time for him/her to forward to payroll for processing 14 calendar days prior to the 1 st pay period in the months of March, June, September, and December. I understand that all cashout amounts will be paid at 75% regular rate of pay, at time of cashout, exclusive of differentials and all applicable taxes will be withheld. Employee Signature Date To be completed by Department Director Current employee PTO balance: Initials: PTO balance after cashout: Initials: Department Director Signature Date Director Submit to Payroll