Leaves of Absence Policy

DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 1 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

SCOPE: All Company-affiliated subsidiaries including, but not limited to hospitals, ambulatory surgery centers, outpatient imaging centers, physician practices, All About Staffing, Corporate Departments, Groups, and Divisions.

PURPOSE: Affiliated employers may provide various leaves of absence to employees.

POLICY: I. TYPES OF LEAVE: A. EDUCATIONAL LEAVE Consideration will be given an employee requesting a leave of absence to continue his/her education if the employee has expressed full intention of returning to employment.

Eligibility -Full-time regular employees with at least six months of continuous service who seek to enroll as full-time students in a course of study that would otherwise conflict with their normal work schedule. Enrollment in part-time, night or weekend courses will not support eligibility.

Approval - A written request for educational leave should be submitted by the employee to the supervisor on the appropriate Leave of Absence Request form, setting forth the dates of the leave requested, the course of study and the educational institution at which the study will take place. Approval for an educational leave is based on the needs of the employer and the appropriateness of the course of study to operations.

Duration - The leave should not exceed six (6) months.

B. GENERAL MEDICAL LEAVE (Including pregnancy leave not covered by Family Medical Leave, the Tennessee Maternity/Paternity statute, other applicable state statutes and on-the-job injuries or illness)

Eligibility - A medical leave of absence may be granted to a full-time or part-time employee with at least six months of continuous service. Any accrued paid benefit time should be run concurrently with the leave of absence. There is no minimum service requirement for eligibility for a leave of absence occasioned by a pregnancy-related disability, or for a disability arising out of an on-the-job injury or illness.

Approval - A written request for this leave should be submitted by the employee to the supervisor on the appropriate Leave of Absence Request form. A physician’s certification will be required. The department head may approve a medical leave of absence based on the circumstances of the request.

10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 2 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

Duration - Medical leaves, if granted, are granted for the duration of the period of disability, not to exceed six (6) months during a rolling calendar year. If family and medical leave and general medical leave are taken during the same 12-month period, the total combined leave time may not exceed six (6) months. (See Family and Medical Leave guideline).

Medical Verification - The Company reserves the right at any time to require proof or medical verification of an employee's ability or inability to work. Such proof or verification may include periodic reports from, or consultation with, the employee's physician or examination of the employee at the employer’s expense by a physician selected by the employer. Human Resources should be consulted regarding medical verifications.

C. TRAINING LEAVE This policy is in compliance with the Uniformed Services Employment and Re- employment Rights Act (USERRA) of 1994 and the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 under which, service in a training program authorized by the Assistant Secretary for Public Health Emergency Preparedness shall be deemed “service in the uniformed services” for purposes of chapter 43 of title 38, United States Code (USERRA).

Non-exempt employees who must be absent for active or inactive military or National Disaster Medical System training duty (e.g., Reserves or National Guard summer camps, annual cruises, weekend drills, attendance at military schools or a training program authorized by the Assistant Secretary for Public Health Emergency Preparedness) will be granted, upon request, a leave of absence (TRAN) without pay. An exempt employee who works any part of a work week and then reports for training is entitled to be paid for the entire work week. An employee may use PTO for training duty obligations upon written request.

Eligibility - All employees who engage in active or inactive training duty in the uniformed services of the United States, or National Disaster Medical System.

Approval - Request for training leave should be made sufficiently in advance of the projected beginning of the leave to enable the employer to adjust the work schedule accordingly. The employee should use the appropriate Leave of Absence Request form.

Duration - Leave will be granted for the period of the training.

D. ACTIVE DUTY LEAVE This policy is in compliance with the Uniformed Services Employment and Re- 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 3 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

employment Rights Act (USERRA) of 1994 and the Public Health Security and Bioterrorism Preparedness and Response Act of 2002 under which, service as an appointee when the Secretary of Health and Human Services activates the National Disaster Medical System shall be deemed ‘service in the uniformed services’ for purposes of Chapter 43 of Title 38, United States Code (USERRA).

All classifications of employees (Full Time, Part Time, PRN, and Temporary) are covered by USERRA. Former employees of affiliates with five (5) years or less of military service or employees returning from active duty leave have a right to be re- employed or reinstated to the same or comparable position held prior to the period of active duty, including restoration of rate of pay and benefits that would have been attained had the employee not been absent due to active duty military service.

Beyond the scope of USERRA, it is the intent of this policy is to make employees called to active military duty or service as an intermittent disaster response appointee, other than routine training, “whole” in terms of missed compensation while on active duty. Employees’ compensation will be offset in circumstances where normal pay is greater than military or National Disaster Medical System pay while on active duty.

Payments will be calculated based on the difference between the employee’s gross regular pay (including shift differentials) at the time of activation and his/her gross pay from the military or National Disaster Medical System. Therefore, regular gross pay will be based on the employees’ scheduled hours and shifts at time of activation. Overtime hours are not included in the calculations; only regular hours, shift differentials, and any applicable other premium pay such as certification differentials, are to be included. An employee may not use PTO in conjunction with Active Duty Leave.

Eligibility - Regular Full Time and Regular Part Time employees who have been served with Activation Orders to report to active duty within their component (USA, USMC, USN, USAF, USCG, National Disaster Medical System, etc). Temporary and PRN employees are not eligible.

Procedure for Supplemental Military Pay Use the link http://www.dfas.mil/money/milpay/pay/paytable2005.pdf to determine the pay for employees on military leave. Use the employee’s military rank and years of service with the Military and match it to the pay grade in column one. Employee’s military years of service should be located on their “JUMPS” (Joint Uniform Military Pay System) Statement. This table is set up for monthly pay periods, so you may need to calculate the differential if the employee is on a bi-weekly or hourly pay schedule. Once employees are able to provide specific proof of pay received from the military, adjustments may need to be made. All payments will be subject to taxes and other applicable withholdings. 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 4 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

1. Determine gross pay employee will be receiving from the Military by looking at the “Basic Pay”. 2. Convert Military “Basic Pay” to an annual amount (12 months) and divide by 26 (# of bi-weekly payrolls in a year). If you process payroll weekly, divide by 52. 3. After you calculate the amount of bi-weekly Gross pay received by the Military (using step 2 above), subtract the employee’s gross regular pay (including shift differentials). The difference will be the employee’s new gross payroll. 4. Enter the amount of the new Gross Payroll to earnings code 78 using on-line time entry for dollars ($$) only. The on-Line time entry screen is accessed through option 11 (SPECIAL PAYROLL ACTIVITIES), then option 7 (TIME ENTRY MENU), then option 1 (ADD TIME). 5. For questions about this procedure, you may contact IT&S Customer Support – Payroll at 1-800-265-8422, option 4, 1.

Procedure for Supplemental National Disaster Medical System Pay Use the link http://www.opm.gov/oca/05tables/indexGS.asp to determine the pay for employees activated under the National Disaster Medical System. Use the employee’s GS grade for their National Disaster Medical System title of position. This information must be taken from the employee’s National Disaster Medical System Activation Orders. All Disaster Medical Assistance Team (DMAT) positions are paid at Step 1 of the GS Grade for their respective National Disaster Medical System title of position.

The tables at the above link are set up for either annual or hourly rates, so you may need to calculate the differential if the employee is on a bi-weekly or hourly pay schedule. Once employees are able to provide specific proof of pay received from the National Disaster Medical System, adjustments may need to be made. All payments will be subject to taxes and other applicable withholdings.

1. Determine gross pay employee will be receiving from the National Disaster Medical System by looking at the “Locality Pay Tables” for either annual or hourly rate. 2. If you use the annual rate, divide by 26 (# of bi-weekly payrolls in a year). If you process payroll weekly, divide by 52. 3. After you calculate the amount of bi-weekly Gross pay received from the National Disaster Medical System (using step 2 above), subtract the employee’s gross regular pay (including shift differentials). The difference will be the employee’s new gross payroll. 4. Enter the amount of the new Gross Payroll to earnings code 78 using on-line time entry for dollars ($$) only. The on-Line time entry screen is accessed through option 11 (SPECIAL PAYROLL ACTIVITIES), then option 7 (TIME ENTRY MENU), then option 1 (ADD TIME). 5. For questions about this procedure, you may contact IT&S Customer Support – 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 5 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

Payroll at 1-800-265-8422, option 4, 1.

Procedure for Coding the Active Duty Leave 1. Access the Payroll/Benefits/HR System – Main Menu 2. Select Human Resources Activities – Employee Maintenance Activity 30 3. Select Activity 18 – LOA 4. Select Activity 1 – Place On LOA Or Correct Current LOA (see below for a screen print)  On this screen, you will enter all appropriate employee data in the required fields. Please note the following items which must be processed per the instructions below: . This leave should be listed as a paid LOA. The date the paid LOA begins is the day following their last physical day at work. . LOA Reason should be listed as ACTV. . Change Pay Status should remain as an ACTV.

SSN: - - NAME: PAY STATUS (LAST PAY PER):

LOA STATUS (PLACE ON LOA):

UNPAID LOA START DATE: - - PAID LOA START DATE: - - LOA END DATE: - - EXPECTED: E

LOA REASON: ACTV LOA REASON EFF DATE: - - LOA COMMENTS: : NEXT REVIEW DATE: - - REVIEW TYPE: CHANGE PAY STATUS TO: A (' '/'A'/'I')

For questions about this procedure, you may contact IT&S Customer Support at 1-800-265-8422.

General Guidance for Benefits Continuation While on Active Duty Leave – (See Attachment A).

E. PERSONAL LEAVE A personal leave of absence without pay may be approved for a variety of reasons. A Supervisor may allow an employee personal leave for situations that in management's 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 6 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

view, require it.

Eligibility - An approved personal leave of absence may be granted to regular full-time or part-time employees with at least six (6) months of continuous service.

Approval - A written request for a personal leave of absence should be submitted on the appropriate Leave of Absence Request form by the employee to the supervisor prior to the commencement of the leave. Approval will be granted by the department head based on the circumstances surrounding the request.

Duration - The leave should not exceed six (6) months.

F. LEAVES OF ABSENCE (FAMILY AND MEDICAL LEAVE) The Family and Medical Leave Act provides that eligible employees are entitled to a total of twelve (12) weeks of unpaid leave during a backwards-rolling twelve-month period for any one, or more, of the following reasons: 1) The birth of a son or daughter, and to care for the newborn child; 2) The placement with the employee of a son or daughter for adoption or foster care, and to care for the newly placed child; 3) To care for the employee's spouse, son, daughter, or parent with a serious health condition; 4) Because of a serious health condition that makes the employee unable to work.

Leave Entitlement - Leave for birth or placement of child for adoption or foster care must be taken within 12 months of birth or placement. When both spouses are employed by the Company they are limited to a combined total of 12 work weeks during a backwards rolling 12-month period if leave is taken for birth or placement of a child for adoption or foster care.

Family and medical leave need not always be taken in one continuous leave period. Leave may be taken "intermittently" or on a "reduced schedule" basis under certain circumstances. Intermittent leave is leave taken in separate blocks of time due to a single illness or injury, rather than for one continuous period of time. A reduced schedule leave is a leave that reduces an employee's number of scheduled working hours per day or per week.

Intermittent or reduced schedule leave for a birth or placement of a child for adoption or foster care may be approved by the employee's department head if staffing and workload permit. Intermittent or reduced schedule leave to care for a qualified sick family member or for an employee's own serious health condition will be approved if the leave is medically necessary.

10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 7 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

An employee who has a serious health condition and is unable to return to work after 12 weeks of family and medical leave may be placed on a general medical leave. (See general medical leave guideline). An eligible employee working in Tennessee who is taking maternity/paternity leave may be entitled to an additional four (4) weeks. (See maternity/paternity leave guidelines). Leave for employees working outside Tennessee will be governed by applicable state and local law.

Serious Health Condition - An illness, injury, impairment or physical or mental condition that involves either: Any period of incapacity or treatment connected with inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility, and any period of incapacity or subsequent treatment in connection with such inpatient care; or continuing treatment by a health care provider which includes any period of incapacity (i.e., inability to work, attend school, or perform other regular daily activities) due to: 1. A health condition (including treatment therefore, or recovery therefrom) lasting more than three consecutive calendar days, and any subsequent treatment or period of incapacity relating to the same condition, that also includes: a) treatment two or more times by or under the supervision of a health care provider; or b) one treatment by a health care provider with a continuing regimen of treatment; or 2. Any period of incapacity due to pregnancy or for prenatal care. A visit to the health care provider is not necessary for each absence; or 3. A chronic serious health condition which continues over an extended period of time, requires periodic visits to a health care provider, and may involve occasional episodes of incapacity (e.g., asthma, diabetes). A visit to a health care provider is not necessary for each absence; or 4. A permanent long-term condition for which treatment may not be effective (e.g., Alzheimer’s, a sever stroke, terminal cancer). Only supervision by a health care provider is required, rather than active treatment; or 5. Any absences to receive multiple treatments for restorative surgery or for a condition which would likely result in a period of incapacity for more than three days if not treated (e.g., chemotherapy or radiation treatments for cancer).

Eligibility - An eligible employee is one who has been employed for at least 12 months, has at least 1,250 hours of service during the 12-month period immediately preceding the date of the requested leave, and who expresses an intent to return to work after the leave.

Approval - An employee desiring to take family and medical leave must give at least 30 days advance notice prior to commencement of leave, if the need for leave is foreseeable. If the need for leave was not foreseeable, and/or 30 days is not possible, the employee 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 8 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

must give as much notice as is possible under the circumstances. The employee should give at least verbal notification to the employer within one or two business days after the need for leave becomes known. The employer may delay the taking of FMLA leave until at least thirty (30) days after the date that notice is provided except in extraordinary circumstances where such notice is not feasible.

A written request for leave should be submitted by the employee to the Supervisor. The request should set forth the reasons for the leave, the anticipated start and the duration of the leave.

When planning medical treatment, the employee should consult with the health care provider and his/her Supervisor, before scheduling treatment, in order to prevent undue disruption of department operations.

Medical Certification - A health care provider’s certification will be required to support a request for leave. Second or third opinions may also be required at the employer’s expense. It is the employee’s responsibility to return both the health care provider certification as well as the Leave of Absence Request form to Human Resources within fifteen (15) days of receipt of the form. A delay in the return of the required documents and certification may result in the leave being denied or postponed. Subsequent re-certifications may also be requested of the employee at periodic intervals which are no more often than every thirty (30) days in order to update the leave record and justify the continuation of the leave. Failure to comply with the requests for re- certification may result in the leave being canceled.

A fitness for duty or physician’s release to return to work will be required when the leave has been taken due to the serious health condition of the employee. An employee will not be returned to work without the proper documentation from the health care provider. Failure to submit a fitness for duty certification may result in the denial of restoration to employment following FMLA leave.

Reinstatement - An employee should provide the employer with periodic reports concerning intent to return to work. An employee should give the employer at least two (2) days notice of intent to return to work earlier than anticipated. An eligible employee who returns from family and medical leave taken in accordance with this guideline will be reinstated to his/her former position, or to an equivalent position with equivalent pay, benefits, and working conditions. Taking of FMLA leave does not entitle the employee to any lesser or greater right to be restored to his/her position, or an equivalent position than the right the employee otherwise would have had if FMLA had not been taken (e.g., during a reduction in force or organizational redesign).

Key Employee - Reinstatement may not always be possible for certain salaried "key 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 9 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

employees." If the employer determines that reinstatement of a "key employee" would cause substantial and grievous economic injury to the operations of the employer, reinstatement may be denied. An employee requesting leave will generally be notified, at the time of the request, of his/her status as a "key employee" and the potential consequences with respect to reinstatement following the leave. If such notice cannot be given immediately, because of the employer’s need to determine whether the employee is a key employee, notice will be given as soon as practicable after receipt of the leave request (or the commencement of leave, if earlier).

If the employer determines, after the leave has begun, that it will not be able to reinstate the key employee at the end of the leave, it will so notify the employee in writing and give the employee a reasonable time in which to return to work. If the key employee elects not to return to work, (if the leave has already begun) after receiving notification of the employer’s intent to deny reinstatement, the employee's eligibility for reinstatement will be governed by the guideline for reinstatement from general medical leave. In such a case, the key employee's insurance coverages continue in effect throughout the entire family and medical leave in accordance with the Benefits Continuation section of this guideline.

Benefits Continuation - An employee on an approved family and medical leave may continue group insurance coverages during the leave. If any portion of the leave is paid, (i.e., EIB or PTO), the premiums normally paid by the employee, while working, will be deducted from such pay.

If the leave is unpaid, or paid benefit time is exhausted before completion of the leave, the medical and dental premiums normally paid by the employee will be paid directly to LifeTimes Connection during the unpaid leave period. Employees who desire to continue other coverages (e.g., life insurance and LTD) during an unpaid leave must pay the full premium amount (company and employee premiums) to LifeTimes Connection during the unpaid leave period. LTD can only be continued if LOA is due to employee illness.

Premiums are due on a monthly basis, in advance of the coverage period. An employee's failure to pay his/her portion of the insurance premiums will result in termination of the coverages, after proper notice, at the end of the thirty days following commencement of the leave, or at the end of thirty days following the date premiums became due.

An employee who fails to return to work, following a family and medical leave, for reasons other than health conditions or some other reason beyond the employee's control, is required to reimburse the employer for premiums paid by the employer to continue the employee's insurance coverage during the unpaid portion of the leave. 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 10 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

Employees may choose not to continue insurance coverages during leave. If an employee elects not to continue coverage his/her coverage will be reinstated, upon the employee's return from leave, to the same coverage levels that were in effect prior to the leave. The employee's coverage will be reinstated on the date of return from leave without any waiting period, evidence of insurability, or pre-existing condition exclusion.

G. MATERNITY/PATERNITY LEAVE- Employees with twelve (12) months of consecutive full-time service and who work in the State of Tennessee are eligible for up to four (4) months of unpaid maternity/paternity leave for adoption, pregnancy, childbirth, and nursing the infant. This leave is not in addition to the twelve (12) weeks for which the employee may be eligible under the FMLA. An employee on maternity leave may use sick leave benefits for any portion of the leave during which she is disabled.

Eligibility - Full-time regular employees with twelve (12) consecutive months of service.

Approval - An employee desiring to take maternity/paternity leave must give at least three (3) months’ advance notice of the anticipated date of departure for maternity/paternity leave (unless prevented from doing so by a medical emergency requiring that leave begin earlier), the length of leave, and her/his intention to return to full-time employment.

Duration - Up to four (4) months during the adoption, pregnancy, birth and nursing of the child.

Reinstatement - An eligible employee who returns from maternity/paternity leave requested and taken in accordance with this policy will be reinstated to her/his former position or a similar position unless her/his former position was so unique that the employer, after reasonable efforts, was unable to fill the position on a temporary basis. In the event that the employer determines that it must fill the position of an employee who is on maternity/paternity leave, the employer will so notify the employee. In such a case, the employee’s eligibility for reinstatement will be governed by the guideline for reinstatement from general medical leave or FMLA, if applicable. An employee who seeks other employment or works full or part-time for another employer during maternity/paternity leave will not be reinstated.

II. GENERAL GUIDANCE FOR EMPLOYEE BENEFIT PARTICIPATION WHILE ON LEAVE A. LEAVES OTHER THAN ACTIVE DUTY 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 11 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

An employee on an approved leave of absence may continue group insurance coverages during the leave (not to exceed six months). In order to ensure that benefits are continued through an unpaid Leave of Absence, the employee and Supervisor should submit a Personnel Action Request Form (PAR) indicating the date the unpaid leave will begin. The employee will be notified by LifeTimes Connection regarding premium payments for certain benefits. Refer to the Summary Plan Description for more information.

B. LEAVES FOR ACTIVE DUTY General Guidance for Benefits Continuation While on Active Duty Leave – (See Attachment A)

III. REINSTATEMENT FOLLOWING LEAVE (OTHER THAN ACTIVE DUTY AND FAMILY AND MEDICAL LEAVE) Notice of Request for Reinstatement - An employee who is absent on medical leave should notify the employee's Supervisor of availability to return to work immediately upon being released to return to work by the employee's doctor. An employee who desires to return from another type of leave of absence prior to the date the leave was due to expire should submit written notice of the desire to return to work to the Supervisor at least fourteen (14) calendar days before the desired return date.

Eligibility for Reinstatement - Unless applicable state or local law requires otherwise, an employee seeking reinstatement from any leave other than active duty or family and medical leave or maternity/paternity leave pursuant to Tennessee law is not entitled to reinstatement to his/her former position. The employee may be offered any available position for which the employer concludes s/he may be qualified, at the rate of pay for the new position. If there are no such positions available, the employee may be placed on a priority hiring status for ninety (90) days, and may be considered for the first vacancy for which the employer deems that the employee may be qualified. If no such position becomes available within ninety (90) days, the employee will be terminated. In the event an employee declines an offer of reinstatement to any full or part-time position, the employee will be terminated.

IV. BENEFITS AT REINSTATEMENT (OTHER THAN ACTIVE DUTY, FAMILY MEDICAL LEAVE OR MATERNITY/PATERNITY LEAVE) Upon return to work with the employer, the employee's accrued service may be adjusted to reflect the length of absence. If an employees pay rate upon return from a leave of absence is different from his/her pay rate prior to the leave of absence, any vacation or sick leave benefits will be paid at the pay rate in effect at the time they are used. Any sick leave accrued but not used at the end of the leave of absence shall become available to the employee upon return to work in a classification to which this benefit is applicable.

V. REINSTATEMENT AND BENEFITS FOLLOWING ACTIVE DUTY LEAVE, TRAINING LEAVE, OR FAMILY AND MEDICAL LEAVE 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 12 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

Reinstatement from active duty leave, training leave, family and medical leave or maternity/paternity leave shall be granted in accordance with state and federal law.

VI. USE OF ACCRUED BENEFIT TIME DURING LEAVE An eligible employee is entitled to twelve (12) weeks of FMLA and four (4) months (in Tennessee) of maternity/paternity leave run concurrently, when appropriate, whether or not the employee has accrued paid benefit time. In those cases where employees have accrued paid benefit time, (i.e., EIB or PTO), this paid time should be run concurrently with the leave of absence. Paid benefit time may be used only if the usage is consistent with the employer’s earned benefit time utilization guidelines or practice, (e.g., An employee who would not otherwise be eligible for EIB pay may not apply these benefits to their FMLA). See Paid Time Off Policy.

If the leave is due to an employee's own serious medical condition, the employee must use all available EIB benefits before being placed on unpaid leave status. However, the entire leave period whether paid or unpaid will be counted toward the 12-week maximum Family and Medical Leave provided by the employer or, when appropriate, the four (4) month Tennessee Maternity/Paternity Leave period.

VII. ACCRUAL OF BENEFITS WHILE ON LEAVE Benefits such as PTO and EIB do not continue to accrue during any unpaid portion of a leave of absence. However, employees retain benefits accrued prior to, but not used during, the leave. The employee's credit for length of service is protected, but the employee's anniversary date may be adjusted to reflect the time away from work.

VIII. MEDICAL CERTIFICATION (OTHER THAN FMLA) The employer requires medical certification of an employee’s condition or, in the case of leave to care for a qualified, seriously ill family member, that the requested leave is medically necessary. In addition, an employee may be required to submit periodic medical re-certifications to the employer, on a reasonable basis, throughout the leave period. Failure to provide medical certification may result in the leave not being approved or extended. The employer may require an employee, at the employer’s expense, to obtain a second medical opinion. The employer in such cases will designate the health care provider to furnish the second opinion. If the first and second opinions differ, the employer may require the employee to obtain a medical opinion from a third health care provider, again at the employer’s expense. The third healthcare provider will be jointly selected by the employer and the employee. The third opinion is final and binding.

IX. FITNESS FOR DUTY (OTHER THAN FMLA) A fitness for duty or physician’s release to return to work will be required when general 10/2005 DEPARTMENT: Human Resources POLICY DESCRIPTION: Leaves of Absence PAGE: 13 of 14 REPLACES POLICY DATED: April 1, 1998; June 30, 2002, December 15, 2002; March 15, 2003; Sept. 1, 2005 EFFECTIVE DATE: November 1, 2005 REFERENCE NUMBER: HR.203

medical leave has been taken. An employee will not be returned to work without the proper documentation from the health care provider. Failure to submit a fitness for duty certification may result in the denial of restoration to employment following the leave of absence.

The interpretation of this or any Human Resource policy rests with the Human Resource Department who reserves the right to modify, change or discontinue the policy at any time.

PROCEDURE: 1. The Supervisor will advise the employee of his/her potential eligibility for a leave of absence when either the qualifying event becomes known to the Supervisor, the employee requests a leave of absence or the employee has been off work for greater than 3 consecutive work days. 2. The Supervisor should contact the Human Resources Department in order to process the Leave of Absence Request form. 3. Human Resources will generate the Leave of Absence Request form upon notification from the Supervisor or employee. 4. The Supervisor will submit a Personnel Action Request form (PAR) indicating the start date of the leave. 5. Human Resources will retain all documentation pertinent to the LOA separate from the Personnel File including medical certifications. 6. The Supervisor will ensure that a physician’s release to return to work is received from the employee before being returned to the job. The medical release should be forwarded to Human Resources. 7. The Supervisor will submit a PAR when the leave becomes unpaid indicating the original date the leave began as well as the date the unpaid portion of the leave began. 8. Supervisors should consult with Human Resources when an employee is returned to work with a temporary or permanent restriction that affects their ability to perform the essential functions of their job. 9. The Supervisor will submit a PAR when the employee returns to work or fails to return to work after exhausting the leave benefit indicating the termination date.

REFERENCES:

Family and Medical Leave Act of 1993 Tennessee Family and Medical Leave Act Americans with Disabilities Act Uniformed Services Employment and Reemployment Rights Act Public Health Security and Bioterrorism Preparedness and Response Act of 2002

10/2005 Active Duty Leave of Absence Continuation of Benefits Topic Comments Continue End Date (Y/N) Direct Deposit Continue current arrangement in place, contact local payroll for Y N/A changes. Salary review date Salary adjusted to reflect merit increases employee would have received N/A N/A if not for the leave. PTO accrual Employee continues to earn PTO through the period of active duty, but Y N/A not to exceed the plan maximum. PTO cash out Employee may cash out within the terms of the PTO policy. N/A N/A Medical  Coverage continues through the end of the month in which the Y End of month employee works. Employees have the option to continue benefits following last through Direct Bill and Payment to Lifetimes. Premium notices work day will be sent to current address on file. UNLESS they opt to  Dependents eligible for TRICARE; if employer plans are continued continue through above process employer plans are primary to TRICARE. through Direct Bill and Payment Dental Same as Medical Y Same as Medical Benefit premium Through LifeTimes Direct Bill and Payment, employees will be billed Y N/A costs at their current “active” rate.

Employee Life May be continued during active duty leave. Employee has the option to Y N/A continue benefits through Direct Bill and Payments to LifeTimes. Premium notices will be sent to current address on file Employee AD&D Will not cover death or disability due to acts of declared/undeclared war N Last work day or reserve duty. Dependent Life May be continued during active duty leave. Employee has the option to Y N/A continue benefits through Direct Bill and Payments to LifeTimes. Premium notices will be sent to current address on file LTD Unable to continue since no longer actively at work. No COBRA or N Last work day conversion option. Reinstatement Reinstated upon return to work with no waiting period other than those N/A N/A (Health & Group) expenses as a result of disease, defect or injury caused by war, declared/undeclared; protected for up to five years. If life is not continued during active leave, evidence of insurability may be required. 401(K) Deferrals on compensation during leave are not allowed. However, N* Last work day rollovers into the plan would be allowed. Loan payments will be suspended until reinstatement. If eligible, employee will be allowed to take in-service withdrawals including hardship distributions. Employee will maintain investment discretion over the account. Certain “catch up” contributions allowed upon reinstatement. Vesting service will be updated with active duty service upon reinstatement.

Attachment to HR.203 Active Duty Leave of Absence Continuation of Benefits

Topic Comments Continue End Date (Y/N) Retirement Plan Annual contribution(s) will be made based on pre-active duty leave pay. N* Last work day Contribution(s) based on Active Duty Military Leave rate of pay will be made after reinstatement. Vesting service will be updated with military service upon reinstatement. ESPP Contributions on this compensation are not allowed. Contributions N Last work day deducted for the current plan period, prior to active duty leave, may be held for purchase or refunded based upon employee election. Employee may re-enter plan upon reinstatement. No “catch up” contributions allowed. Employee must fill out election form to withdraw from plan. Stock Options Plan operates as normal, according to plan documents. Y N/A Job security Reinstatement to original position if return to work in less than 91 days. Y N/A Reinstatement to original or comparable position if return to work in 91 or more days. Seniority No break in service for time spent on active duty Y N/A Employee Available to employee and dependents Y N/A Assistance Program Flexible Spending  Dependent Care Flexible Spending N ** Accounts**  Health Care Flexible Spending Account Y **

* Special rules for bridging service apply upon reinstatement. ** Flexible Spending Account rules apply:  Dependent Care contributions will not continue, claims may still be reimbursed up to the balance of the account  Health Care contributions may continue through Direct Bill & Payment

Attachment to HR.203