Category: HR-BEN

POLICY & PROCEDURE

Subject: Paid Time Off

Classification: Management Approved

Policy Owner: Senior Vice President, Human Resources

Approved by: WFH President and CEO Effective: December 31, 2011

POLICY: It is the policy of the Wheaton Franciscan Healthcare (WFH) to provide all eligible associates with paid time off, which is intended to assist in balancing work and personal time in accordance with our Mission and Values. Paid time off (PTO) provides for the accumulation of paid hours to be used when time is taken off for holidays, vacation, sick days, or personal time.

RATIONALE: Our Mission and Values call us to recognize and respect the need for every person to maintain a balance between work life and personal life. PTO provides an opportunity for associates to leave the work environment for the purposes of self-renewal, relaxation, celebration, or time away to meet other personal or family needs.

SCOPE: This policy applies to all WFH associates in the owned and managed organizations excluding participants in the executive compensation program and employed physicians.

PROCEDURE: Eligibility Associates who have a budgeted FTE of 0.5 or greater begin accrual of PTO from the first day of employment. However, associates are not eligible to use PTO until successful completion of a 90-day introductory period with the exception of the following holidays – New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Temporary, registry, or on-call associates are not eligible for PTO.

Rate of Accrual PTO is accrued each pay period based on the rate determined by job classification, length of service, and number of hours worked and PTO hours paid. Associates will move to the next accrual rate in the month of their 5th, 10th or 15th anniversary date.

PTO pay is based on the associate’s regular hourly base rate and does not include shift differentials, call-in pay, premium pay, or overtime pay. PTO accruals are prorated based on actual hours worked and/or PTO paid per week/month. PTO is not earned while receiving short-term disability, long-term disability or workers compensation benefits.

A maximum of 30 days (240 hours) may be carried over from one calendar year to the next. All days (hours) accumulated beyond 30 days (240 hours) must be taken on or before the end of the pay period that includes December 31st, or they will be forfeited.

Withdrawal A maximum of 30 days (240 hours) of PTO may be transferred with an associate who is transferring from another WFH entity. Hours above 240 will be paid out to the associate at the time of transfer.

HR-BEN Paid Time Off Page 1 of 3 Associates are eligible to use PTO after the 90-day introductory period. PTO must be scheduled in advance and approved by the associate’s supervisor. Except in the case of illness, it is the responsibility of the associate to advise his/her department supervisor that he/she wishes to use PTO prior to the date requested.

Every effort will be made by the supervisor to honor all requests; however, the provision of services rendered by the department will be considered in granting time off. Therefore, scheduling time off for vacation, personal, or holiday time is at the discretion of the supervisor. Supervisors and associates are expected to work together to meet these needs.

Use of PTO for illness or accident requires appropriate notification of absence from the associate to the supervisor.

An associate may request time-off without pay for absences covered by state or federal family and medical leave laws or in the event that all earned PTO has been used. When an associate receives approved time off, PTO hours will be paid only up to the amount accrued and available.

Exempt associates may use PTO in half day or full day increments with prior leadership approval. Non-exempt associates – PTO must be used in increments ranging from 15 minutes to the number of hours they are scheduled to work that day. For example, a full time associate who is normally scheduled 8 hours per day Monday – Friday; however, worked 33 hours between Monday and Thursday and has PTO scheduled for Friday, would need to take 8 hours of PTO on Friday.

Holidays All eligible associates earn PTO hours each pay period, which includes credit for the following holidays - New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Associates who are within the 90-day introductory period, and who have not earned enough PTO time will be able to “borrow” from future PTO hours accrued in order to be paid for the holidays specified above.

If an associate is required by his or her supervisor to work on a holiday in order to meet operational and/or patient care needs, the associate will have the option to be paid PTO hours in addition to hours worked. If an associate does not work on the holiday and the holiday falls on a day the associate would normally be scheduled to work, PTO hours, up to the regularly scheduled hours, will be deducted and paid out of the available PTO hours. Only associates required to work in order to meet operational and/or patient care needs will be authorized to work on a designated holiday. All others are required to take time off and use PTO. Authorization to work on a holiday must be made in advance and approved in writing by the associate’s supervisor.

Cash Out Option A PTO cash out option is available at a designated time each year for non-exempt (hourly) associates only. To be eligible, an associate must have completed at least one year of service and must have a remaining balance of 120 hours or more in his/her PTO bank after the PTO cash out hours are paid. With the PTO cash out, an associate may elect to cash out up to 40 hours of PTO. To qualify, an associate must elect during annual enrollment of the previous year. A request may be for 10, 20, 30, or 40 hours to be paid out the following June, in compliance with IRS requirements.

Payment at Termination

HR-BEN Paid Time Off Page 2 of 3 Upon termination of employment, associates will automatically be paid their remaining PTO hours (up to 240 hours/30 days, unless state law requires payout of a different amount) if the associate has provided adequate notice of resignation and has worked through the required notice period. Adequate notice is defined as follows:  Non-exempt associates: 2 weeks notice required  Leadership and exempt associates: 4 weeks notice required This notice must be in writing. PTO may not be used to fulfill the required notice period. Failure to provide and work through the required resignation notice period will result in forfeiture of any accrued hours. Associates who terminate their employment, either voluntarily or involuntarily, prior to completing their 90-day introductory period are not eligible to receive any unused PTO hours.

Accrual Rates The following tables are based on a 1.0 FTE. Accrual rates will be prorated based on the actual hours worked each pay period.

Beginning with: Vice Presidents, Directors, Managers, Supervisors 1st day of employment 28 days/224 hours per year (2.33 days per month) 5th year of employment 33 days/264 hours per year (2.75 days per month) 10th year of employment 36 days/288 hours per year (3 days per month)

Beginning with: Exempt Salaried Associates 1st day of employment 26 days/208 hours per year (2.16 days per month) 5th year of employment 31 days/248 hours per year (2.58 days per month) 10th year of employment 33 days/264 hours per year (2.75 days per month) 15th year of employment 36 days/288 hours per year (3 days per month)

Beginning with: Non-Exempt Hourly Associates 1st day of employment 23 days/184 hours per year (1.92 days per month) 5th year of employment 28 days/224 hours per year (2.33) days per month) 10th year of employment 33 days264 hours per year (2.75 days per month) 15th year of employment 36 days/288 hours per year (3 days per month)

Replaces: Regional Banked Time/Paid Time Off policies

Cross reference: Termination of Employment

Review Period: One (1) year

Original Policy Date: January 1, 2005

Dates Updated: January 1, 2006; October 1, 2007; January 1, 2010; December 31, 2011

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