Agenda Item: Discuss and Consider Approval of a Paid Time Off Policy, replacing the current Sick Leave Policy

Background: The Finance and Operations Committee requested staff to present a policy that replaces the organization’s existing Sick Leave Policy with a Paid Time Off (PTO) Policy, providing suggestions of best practices based on local examples of Moody Gardens and Mitchell Historic Properties.

Current Practice

A copy of the current sick leave policy is included at the back of this document as an attachment. The chart below outlines the current benefits provided by each of the entities:

Vacation 10 10 10 Sick / PTO 12 11 10 Holiday 11 10 0 Total 48 46 30

Regional Comparison

HR Houston recently conducted a region wide survey that evaluated the total benefit packages offered by nearly 200 employers which included close to 50 non-profit and governmental entities. Leave benefits were a major portion of the survey, and the data collected shows the following trends:

PTO is becoming more popular in all industries, with nearly half of employers adopting the approach

Median paid Vacation and Sick Leave data show the Park Board is generally aligned with regional business practice of a combined 31 to 42 days of paid leave, depending on years of service. The Park Board currently provides between 33 and 48 days of paid leave.

National data breaks the categories down by industry, which shows non-profit entities consistently offer more paid leave benefits than for-profit employers as part of their employment total rewards program. On average, median days of paid leave are 35% higher for non-profit organizations than their for-profit peers.

*The data presented does not include the median 10 days of paid holidays for our region

Staff Recommendation:

Attracting and retaining a competitive workforce is an operational priority for all organizations as our largest workforce population heads toward retirement.

Staff is recommending that the Finance and Operations Committee approve a Paid Time Off Leave policy (attached), replacing the existing Sick Leave Policy (attached) effective the beginning of the next fiscal year. Pending approval, staff will revise and present other policies that cite the current Sick Leave Policy prior to the start of the next fiscal year.

Funding Source:

Shifting to the Paid Time Off policy suggested by staff will contribute to a decrease in total leave benefits of 20% and will positively impact the 2019-2020 FY budget.

Current Sick Leave Policy

SICK LEAVE BENEFITS

Paid sick leave benefits are provided for all eligible full-time employees. Newly hired employees may use leave as it accrues.

Full-Time employees accrue sick leave benefits at eight (8) hours per month with an accrual limit not to exceed one hundred sixty hours (160), which is the equivalent of 20 days. Employees will not accrue sick leave while on any type of unpaid status.

Sick leave benefits are not intended to be used as a substitute for vacation or personal time. Sick leave benefits may be used if an employee needs to provide care for an immediate family member who is ill or requires medical attention.

If the need for sick leave is foreseeable, employees are required to give notice to their supervisor as soon as they are aware of the need. If the need for sick leave is not foreseeable, employees must notify their supervisor in accordance with departmental procedures, but no later than the start of their scheduled shift.

The employee must notify his or her supervisor every day of their progress.

After three (3) consecutive days of absence, the employee may be asked to furnish a physician’s statement to the Supervisor to verify his or her absence. The physician’s statement should outline any restrictions the employee has, the dates of necessary absence and the date the employee is able to return to work.

Sick leave benefits do not count as hours worked in the calculation of overtime. After an employee’s sick leave has been exhausted, accumulated vacation time will be used. All benefits continue while an employee is on sick leave.

Employees may use sick leave benefits for the first forty (40) hours of an on-the-job injury and as a supplement to any worker’s compensation or disability benefit – not to exceed the employee’s weekly earnings.

Misuse of sick leave benefits subjects an employee to disciplinary action up to and including termination.

Employees are not permitted to borrow against future sick leave accruals or balances.

An on-going record of accrued sick leave is maintained by the Payroll Department and presented on the employee’s pay stub. If you have questions or are in doubt about time accrued or deducted, please see the Payroll Department.

Suggested Paid Time Off Policy

Paid time off benefits (PTO) are provided for all eligible full-time employees. PTO provides you with the flexibility to use your time off to meet your personal needs, while recognizing your individual responsibility to manage your paid time off.

Full-Time employees will accrue PTO benefits at a rate of 0.385 hours per pay period with an accrual limit not to exceed one hundred sixty hours (160). Employees will not accrue PTO benefits while on unpaid leave status.

You are responsible for managing your PTO benefits. It is important that you plan ahead for how you will use it. This means developing a plan for taking your vacations, as well as doctor’s appointments and personal business. It also means holding some time in “reserve” for the unexpected, such as emergencies and illnesses.

Paid leave is a benefit afforded to employees, not a right. You are required to provide your supervisor with reasonable advance notice and obtain approval prior to using PTO.

There may be occasions, such as sudden illness, when you cannot notify your supervisor in advance. In those situations, you must inform your supervisor of your circumstances as soon as possible but no later than your scheduled start time.

Unscheduled absences will be monitored. An employee will be counseled when the frequency of unscheduled absences adversely affects the operations of the department or organization. The supervisor may request that the employee provide a statement from a health care provider concerning the justification for an unscheduled absence.

An employee is required to use PTO hours according to his or her regularly scheduled workday. For example, if an employee works an eight-hour day, he or she would request eight hours of PTO when taking that day off. PTO is paid at the employee’s straight time rate. PTO benefits do not count as hours worked in the calculation of overtime.

Employees classified as exempt may take PTO in no less than one-hour increments. Non-exempt employees should record their PTO in the exact time increments used. Unless otherwise prohibited by law, employees are required to use available PTO when taking time off from work that is not covered under a leave of absence or previously scheduled vacation.

After an employee’s PTO balance has been exhausted, accumulated vacation time will be used to cover any absences. All benefits continue while an employee is on PTO.

Employees may use PTO benefits for the first forty (40) hours of an on-the-job injury or short-term disability if that time is deemed unpaid by the provider.

Employees are not permitted to borrow against future PTO accruals or balances.

PTO benefits are not paid upon termination of employment.

An on-going record of accrued PTO benefits is maintained by the Payroll Department and presented on the employee’s pay stub. If you have questions or are in doubt about time accrued or deducted, please see the Payroll Department.