Good Shepherd Medical Center

Good Shepherd Medical Center Policy/Procedure

Division: Effective 02/28/2016 Page 1 of 9 Date: Department: Human Prior Policy 10/01/2000 Committee Approval/Dates: Resources Dated: 05/01/2002 Exec Mgt: 01/2016 Revised: 10/19/2004 09/30/2008 Reviewed: 10/19/2004 5/31/2009 12/2007 6/11/11 1/2015 11/27/11 01/2016

Subject: Paid Time Off Policy Policy Number: HR 5-130

PAID TIME OFF POLICY

The Paid Time Off program (PTO) provides accumulated hours each pay period that will be placed in two banks – the Paid Time Off bank (PTO) and the EIB bank (EIB). The paid time off policy provides eligible employees with a benefit that allows them to be paid for time spent away from work for planned vacations, holidays, periods of illness or disability, and personal business. Eligible employees accrue benefit hours that may be used, according to established guidelines, to replace their regular earnings during such absences. Paid Time Off (PTO) is a benefit program that replaces the more traditional vacation, holidays and sick leave benefits. In a PTO program those benefits are combined. The combined hours accumulate over time in accounts established for each eligible employee. The employee may then use the accumulated hours to replace their usual earnings during periods of time spent away from work for a variety of reasons.

08ac5bcabe4a413bd2ac788d9a40745e.docx Procedures/Guidelines

Good Shepherd Medical Center encourages employees to utilize their PTO by properly scheduling time away from work for their personal use.

I. Eligibility

Full-time and regular part-time employees are eligible for PTO. Temporary, PRN and other non-benefit eligible employees are not eligible for PTO benefits.

I. Paid Time Off Accrual

1. Hours for PTO accumulate in two separate accounts, a Personal Time (PTO) account and an Extended Illness Bank (EIB) account.

2. PTO accrual begins with the first day of employment. At the end of each pay period, a portion of the employee’s total annual benefit hours is added to each PTO account. This process is known as accruing hours. All hours accrued at the end of a pay period are available for use in any following pay period. There are twenty-six (26) pay periods in a year.

3. Employees earn PTO and EIB every pay period based on length of employment, employee status and job classification. PTO accrual is earned on worked hours including paid PTO, jury duty, meetings, funeral pay, orientation hours and EIB hours.

4. Accrual levels are on Attachment “A” of this policy. Employees transferring from a non-benefited position to a scheduled full-time or regular part-time status will accumulate PTO and EIB based on the date of most recent status change.

5. Employees transferring from a full-time or regular part-time status to PRN or other non-benefited status will accumulate no further PTO and EIB. The PTO balance will be distributed to the employee. The hours accumulated in EIB will be zeroed out.

6. For employees hired prior to October 1, 2008, hours in the PTO account may accumulate over time to a maximum of 400 hours and 248 hours for employees hired on or after October 1, 2008. Employees are responsible for managing their PTO account to maintain an optimum balance of hours and avoid reaching the maximum. However, the CEO (or his designee) may temporarily raise this ceiling on accruals for specific employees when business conditions require.

7. Persons whose employment has been terminated and who are later re- employed are considered "new employees" for purposes of accruing PTO. Credit for previous service will not be granted.

2 II. Usage –Paid Time Off

B. For Paid Time Off (PTO)

1. Accumulated PTO hours will be used for scheduled and unscheduled purposes. The pre-scheduled PTO is meant to be used for vacations, holidays, personal time or family needs. The unscheduled PTO is meant for short-term illnesses and emergencies.

2. Employees are required to use available PTO time when taking time off. This includes vacations, holidays, sick time etc. PTO usage is at the discretion of the employee if the supervisor calls off the employee involuntarily (i.e. low census) from scheduled worked hours or if the department closes for any length of time.

3. Employees must use the accrued hours in their PTO account as long as it is: properly requested, scheduled in advance and in accordance with departmental scheduling procedures. Management is responsible for responding to requests for time off in a timely manner. Reasonable efforts will be made to grant the days requested; however, department workload and/or time off requests from other employees may prevent approval.

4. Employees who work in departments that a) are closed on holidays (New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas, others as approved by Executive Management) may take PTO at their discretion. If the department is closed and the employee is not scheduled to work the holiday, the employee will not be paid for that shift from their PTO account. In some cases an additional day may be used as an official holiday closing if that day falls between the holiday and the weekend. Employees should be careful to maintain a sufficient balance of hours in the account to cover holidays and these possible extra days as no employee will be allowed to utilize hours that are not accrued unless they fit under the new criteria. For those employees required to work on recognized holidays they will receive any applicable holiday pay and will not use PTO.

5. Employees will not receive shift differential when utilizing PTO, EI or Bereavement.

6. GSMC recognizes that employees are occasionally unable to report to work due to illness, emergency, or other unforeseen circumstances. When this occurs, the employee must notify the supervisor (or their designee) two hours prior to their scheduled shift. PTO will not be paid when an employee has not given notification prior to an absence in accordance with departmental call-in policy or when an employee has not received prior authorization for an absence. Employees who are frequently absent without having properly requested and scheduled PTO in advance are subject to corrective action in accordance with GSMC’s Attendance and Corrective Action policies.

3 7. Payment of PTO in conjunction with total hours worked will not exceed an employee’s normal work week based on FTE status.

8. The portion of PTO accrued in one pay period is not available for use until the following pay period. PTO will not be paid in advance.

9. PTO will not be paid in increments of less than one hour except if approved by management for flex staffing. If an employee is asked to leave early due to decreased volumes, incremental personal time pay be used to complete the employee’s scheduled shift.

10. Payment of PTO in conjunction with Regular hours worked will not exceed an employee’s normal work week schedule. Regular worked hours are any hours for which you receive pay. Examples include PTO, bereavement, education, etc. Examples not included are on-call, stand by and differentials.

11. PTO hours are not counted as worked hours when calculating overtime. No employee may go negative in their PTO balance unless they are in their orientation period and it is a recognized GSMC holiday or the department is closed.

12. Employees must work their hours equivalent to their FTE status. In the event the hours worked are short, hours will be adjusted with PTO to meet that FTE level.

13. The first 24 hours (three eight-hour days) of any absence due to injury, illness or childbirth must be paid from the employee's PTO account, provided accrued hours are available. Therefore, employees should be careful to maintain a sufficient balance of PTO in their accounts in anticipation of unforeseen absences. PTO can also be used for the fourth and subsequent days of an absence episode if EIB hours are not available. If the employee has no PTO, they cannot go into EIB until they have been off the required 24 hours.

14. Accrued PTO will not be paid as cash in lieu of time away from work except:

14.i. When the employee agrees to such an arrangement at the request of the management, or

14.ii. When specifically indicated in these guidelines

15. All accrued PTO hours are payable to the employee upon termination if hired prior to March 1, 2016. Employees hired after March 1, 2016 will not be paid PTO at termination if for involuntary discharge. PTO hours will not be paid to any employee, regardless of hire date, whose employment ends during the initial 90 days (based on the most recent hire date or most recent effective date of status change from non-benefited to benefited). 4 C. PTO usage for employees in their first ninety days of employment.

1. Employees within their ninety day orientation period may use PTO after their first pay cycle has been processed if pre-approved by the manager and with appropriate notice.

2. At the discretion of their supervisor, a new employee may go negative in their PTO balance if there is not sufficient PTO accrued for holidays or if the department is closed.

III. Sale of Paid Time Off

A. Employees with a Personal Time balance greater than 100 hours may sell their accrued PTO hours in the following manner:

B. “Buy back” is paid at 75% the rate at which PTO would be paid if it were taken as time off.

C. Hours eligible for “buy back” will be based on the number of hours accrued at the end of the pay period preceding the request.

D. Buy back” may be approved up to 40 hours and must not cause the remaining balance to fall below 100 hours. The “buy back” option is limited to three times per calendar year.

E. PTO “buy back” forms will be available in Human Resources and on GSnet. Requests must be submitted to Human Resources by noon on Friday of the week before payday. PTO “buy back” payments will be directly deposited the following payday.

IV. For Extended Illness Bank (EIB)

A. Accruing Extended Illness

1. EIB hours accrue at the rate of 2.462 hours per pay period, or 64 hours per year, for all Full Time employees. The accrual rate for Regular Part Time employees is .0308 hours per paid hour, to a maximum of 2.462 hours per pay period. These rates remain the same, regardless of years of employment.

2. EIB hours begin to accrue immediately upon employment but are not available for use during the first ninety days of employment. After the pay period following the ninety first day of employment, any hours that are accrued are available for the employee's use, subject to these policies guidelines.

5 3. Hours in the EIB account may accumulate over time to a maximum of 440 hours. For employees hired before October 1, 2008 and have an EIB above 440 hours can retain it. However, accruals will not accrue until the balance falls below 440.

V. For Extended Illness Bank (EIB)

A. Accrued hours in the EIB account provide income protection for employees who are unable to work for an extended time (more than 24 hours) due to injury, illness or childbirth.

B. Employees can use EIB hours only after they have missed 24 consecutive scheduled work hours per occurrence. For most employees working eight-hour shifts, this means those EIB hours are paid beginning with the fourth day and each subsequent day of an absence episode, so long as accrued hours are available.

C. The requirement that 24 consecutive work hours be missed before an employee can use EIB benefits may be waived as follows:

1. When an employee has a second or subsequent lengthy absence (more than 24 hours) for the same illness or injury in the same calendar year.

2. In situations when an exception is deemed appropriate and consistent with the intent of these guidelines (such as when a physician releases an employee to work with restrictions or limitations). Approval of the VP of Human Resources or designee and a member of Executive Management is required.

D. Employees may receive EIB benefits only while they are unable to work. EIB benefits may be used until the employee is authorized to return to work (provided accrued hours are available) but the employee will be required to present a physician's verification of continued disability in order to receive EIB benefits beyond six (6) weeks after the onset of illness, injury or childbirth.

E. The Company may require physician's verification of disability from any employee while he/she is receiving EIB pay. Additionally, the Company may require the employee to be examined by a physician selected by Management. If an employee fails to provide such verification of disability when requested, EIB hours will not be paid during that absence and he/she will be subject to remedial action in accordance with the Company’s Attendance and Corrective Action policies.

F. Suitable authorization to return to work is required after any medical related absence of more than 32 consecutive work hours. When an employee is released by a physician to work a limited number of hours per day or per week, those hours that the employee cannot work may be paid from their PTO account. An employee may not transfer or donate EIB hours to another employee’s bank.

G. An employee may not borrow EIB hours against future accrual.

6 H. EIB may not be used for an illness or accident of an employee’s family member. EIB is only for employee’s extended illness.

I. If an employee has been receiving EIB and a holiday occurs, the employee may continue using EIB for the holiday, not to exceed regularly scheduled hours.

VI. For PTO and EIB

A. PTO and EIB may not be approved for less than one hour for hourly employees.

B. PTO and EIB may be approved no less than one day for salaried employees. If a salaried employee is absent for a portion of the day, the entire day will be paid as if worked.

C. An employee on FMLA leave due to the employee’s illness must use PTO/EIB prior to using unpaid time off.

VII. Retirement Bonus

A. Accrued EIB hours are not payable to the employee upon termination, except under the following conditions:

B. EIB hours may be paid as a Retirement Bonus to employees who are age 55 or older, who are voluntarily terminating employment, and who have completed 10 or more complete years of continuous employment at the Company (see grid below for payout). An employee may only receive one Retirement Bonus from the Company.

10-19 year level: Employee receives 25% of the value of all unused EI hours. 20-24 year level: Employee receives 50% of the value of all unused EI hours. 25-29 year level: Employee receives 75% of the value of all unused EI hours. 30+ year level: Employee receives 100% of the value of all unused EI hours.

VIII. Changes in Category of Employment

A. PTO:

1. When an employee's schedule changes from Full Time or Regular Part Time to Part Time, PRN or other non-benefited status, accrual of Personal Time hours will stop. If the employee has completed at least three months of employment, all accrued hours in the account at that time will be paid out to the employee. If the employee later returns to a Full Time or Regular Part Time schedule, he/she would accrue Personal Time hours at the rate based on the date of most recent status change.

B. EIB:

1. When an employee's schedule changes from Full Time or Regular Part Time to Part Time, PRN or other non-benefited status, accrual of EIB hours 7 will stop and balance will be zeroed out. If the employee later returns to a Full Time or Regular Part Time status, he/she would resume accruing EIB hours. However, use of EIB hours will be subject to a 90 day waiting period as if he/she were a new employee.

Persons who change from Full Time or Regular Part Time to Part Time, PRN or other non- benefited status during the first three months of employment will forfeit any accrued PTO hours.

Modifications and Exceptions

GSMC reserves the right to modify or rescind this policy and procedure any time and without prior notice. Any exception must be requested through the Human Resources department and have the approval of the Human Resources Vice President.

8 ATTACHMENT “A”

PAID TIME OFF GUIDELINES

PERSONAL TIME ACCRUAL SCHEDULE

FULL TIME EMPLOYEES

Accrued Hours Annual Accrued Year of Employment per Pay Period Hours / Days

1st - 4th 6.462 168 21 5th 6.769 176 22 6th 7.077 184 23 7th 7.385 192 24 8th 7.692 200 25 9th 8.000 208 26 10th 8.308 216 27 11th 8.615 224 28 12th 8.923 232 29 13th 9.231 240 30 14 or more years 9.538 248 31

9 Employees in their ninety day orientation period may go negative in their PTO balance if it is a GSMC recognized holiday or if the department is closed. This is only permitted within the first ninety days.PAID TIME OFF GUIDELINES

REGULAR PART TIME EMPLOYEES

Personal Time accrues for Regular Part Time employees based on the number of paid hours each pay period. The accrual rate is equivalent to that of a Full Time employee:

Accrued Hours Maximum Accrued Year of Employment per Paid Hour Hours per Pay Period

1st - 4th .0808 6.462 5th .0846 6.769 6th .0885 7.077 7th .0923 7.385 8th .0962 7.692 9th .1000 8.000 10th .1038 8.308 11th .1077 8.615 12th .1115 8.923 13th .1154 9.231 14 or more years .1192 9.538

10 PAID TIME OFF GUIDELINES

EXECUTIVES AND DEPARTMENT DIRECTORS (Excluding GSMC Longview Clinical Directors)

Year of Employment Accrued Hours Annual Accrued per Pay Period Hours / Days

1st - 4th 8.000 208 26 5th 8.308 216 27 6th 8.615 224 28 7th 8.923 232 29 8th 9.231 240 30 9 or more years 9.538 248 31

11 *Maximum Accrual is 300 hours for Directors, 400 for ExecutivesATTACHMENT “B”

PTO Policy – Q & A’s

Q: What does FTE status mean?

A: FTE stands for Full Time Equivalent. FTE is the number of hours approved for each position. For example, a full-time eighty hour per pay period employee is equal to a 1.0 FTE. FTE is not based upon your scheduled hours only the budgeted approved hours for position control. If you are uncertain of your budgeted FTE status, you can go into API and check your Approved Hours.

FTE Examples per Pay Period: 84 hours = 1.05 FTE 80 hours = 1.00 FTE 72 hours = 0.90 FTE 40 hours = 0.50 FTE Below is the employee screen in API. On the lower right of the screen the Pay Distributions (Daily Hours) AH: 72.00

Q: I’m a new hire and I had to be off for low census. Can I go negative in my PTO bank? A: No. A new hire can only go negative in their PTO bank if their department is closed during their first ninety days of employment, for example for a recognized holiday.

12 Q: Can you provide some examples of not being able to take PTO that would exceed my FTE status?

A: Employees will not be paid PTO above their approved FTE status on a weekly basis. To help demonstrate, below are a few examples:

Scenario 1

Your FTE status is 1.0 and you work forty hours per week. You were needed to work extra so by Thursday you have already worked forty hours. On Friday you were going to take a vacation day. Because you already worked forty hours, you would still take Friday off but no PTO will be paid. You will be able to save your PTO to take another day!

Scenario 2

Your FTE status is .5 and you typically work four hours a day, five days a week. On Thursday, you had to work an extra hour. You have scheduled a PTO day for that Friday. By Thursday, you have worked a total of seventeen hours. Therefore, you will receive three hours of PTO on Friday making your total paid hours twenty hours.

Scenario 3

You are a clinical nurse whose status is 1.05. You typically work forty-eight hours one week and thirty-six hours the next. On the week that you were working thirty- six hours, you were scheduled three twelve hour shifts on Monday, Wednesday and Friday. However, you requested PTO for Friday and were scheduled to be off. Census was high and you were asked to work Thursday for an eight hour shift giving you a total of thirty-two hours for the week. Since you picked up an extra shift, you will only need to take four hours of the PTO for Friday totaling thirty-six hours for the week of paid time.

Scenario 4

You are a regular full-time employee or a 1.0 FTE and your department has call responsibility. You are on call sixteen hours on Sunday and you get called back and work four hours. You have scheduled eight hours of PTO on Thursday. Your time for the week would be as follows: thirty-two hours of worked time, four hours of called back time and four hours of PTO.

Scenario 5

You are a full-time FTE who typically works forty hours per week. On week one you were needed extra and worked a total of sixty hours. Week two you had forty hours of PTO scheduled. You would be paid a total of one hundred hours (forty regular paid time and twenty overtime hours of PTO).

Q: Why are you requiring me to take PTO?

13 A: The paid time off policy provides eligible employees with a benefit that allows them to be paid for time spent away from work for planned vacations, holidays, periods of illness or disability, and personal business. Eligible employees accrue benefit hours that may be used, according to established guidelines, to replace their regular earnings during such absences. Paid Time Off (PTO) is a benefit program that replaces the more traditional vacation, holidays and sick leave benefits. In a PTO program, those benefits are combined. The combined hours accumulate over time in accounts established for each eligible employee. The employee may then use the accumulated hours to replace their usual earnings during periods of time spent away from work for a variety of reasons. Employees are responsible for managing their PTO bank appropriately. For instance, if you know you have a vacation coming up and your PTO bank is low, you need to save your time for that vacation. This is a typical national practice at other companies and hospitals.

Q: It’s a holiday and my department is closed for the holiday but I would prefer to work instead of using my PTO. Is this allowed?

A: Only if work load necessitates and it is properly approved by your Department Director.

Q: What are considered worked hours?

A: Any hours for which you receive pay. Examples include PTO, bereavement, education, etc. Examples not included are on-call, stand-by and differentials.

Q: Will my on-call hours count toward my worked hours?

A: Yes, if you are called in to work. On-call stand by does not count towards worked hours. On call, where you are asked to come back in to work, is counted.

Q: Who does this policy apply to?

A: This policy applies to all employees who accrue PTO benefits (i.e. hourly, salaried, non-management and Management).

Q: How does it work with secondary job codes?

A: Hours worked in your secondary job codes are considered worked hours. The combined primary and secondary codes will be analyzed to determine appropriate PTO usage.

Reviewed 01/2015 SVP of HR 01/2016 SVP of HR