Paid Time Off Policy - Instant Benefits Network

Subject: PAID TIME OFFSource: Human ResourcesPolicy #: HR1049Section: General Page: 1 of 4Distribution: Shea, Osborn, TPK, Greenbaum, Piper Approved by Executive CommitteeReview Dates: 1/9/2009 Effective Date: 10/1/2008POLICY:The Scottsdale Healthcare paid time off (PTO) program consolidates vacation, holiday and sick time benefits.PTO is a benefit accrued each pay period, according to the eligibility of employment status, and length ofservice with Scottsdale Healthcare.PURPOSE:This policy is written to assure that paid time off procedures compliance occurs when staff member’s accessapproved and authorized time off from work. Accrued paid time off may be used as a replacement forscheduled hours for purposes of holidays, vacation, personal, business, family needs, and illness as the staffmember elects, but is subject to departmental staffing requirements and supervisory approval prior toaccessing PTO. PTO does not include time taken for the bereavement leave benefit provided by ScottsdaleHealthcare, voting time, authorized jury duty or workers’ compensation leave as authorized in associatedScottsdale Healthcare policies.SUPPORTIVE DATA:HR1069 Short Term DisabilityHR1005 Voting TimeHR1032 Leave of AbsenceHR1033 Excused Absence Not PaidHR1056 Low Workload StaffingHR1035 Bereavement LeaveHR1036 Jury Duty and Court ProceedingsHR1034 Workers CompensationHR1050 Pay Practices for Recognized HolidaysPARAMETERS:1. PTO Eligibility and RequestA. All regular and seasonal full and part time staff members are eligible to participate in the PTObenefit program. Staff members are to request the use of PTO from their supervisor prior toaccessing PTO. PTO must be available (accrued) prior to accessing PTO.B. Accrual of PTO will begin on the first day of employment, in an eligible status and willcontinue through the final day of employment in an eligible status. For staff memberstransferring from on-call to full or part time regular status, effective the start of the pay period,Sunday May 25, 2008, Scottsdale Healthcare will recognize and give credit for prior years ofservice during which the staff member has worked at least 832 hours within the calendar year.Credit for prior years service will only be considered back to 2000.C. Newly hired staff members may take PTO once it has been accrued subject to staffing needs

SUBJECT: PAID TIME OFF Policy #: HR1049 Page2 of 4and management staff approval. Staff members that would prefer to work during the time adepartment is closed for the holidays may request to his/her manager to conduct their workunder the supervision of another department’s supervision that remains open. The staffmember’s manager must approve this request and this request must be acceptable to themanager that provides the supervision. Refer to HR1050 Practice for Recognized Holidays.D. A department may close on certain days designated as official holidays. In order to be paidfor any of these days, the non-exempt staff member must have sufficient PTO accumulated. Inthe event an exempt staff member does not have sufficient PTO accumulated, consult with thepayroll department for processing assistance.E. Regular and seasonal full and part-time staff members transferring to an ineligibleemployment status will no longer accrue PTO. All PTO preciously available will be paid outto the staff member, at the last hourly rate of pay under which the time was earned, at the timeof transfer. The payout will be processed and paid the first pay period after transfernotification. The payout payment shall be subject to the Supplemental Wage Federal IncomeTax Withholding Rate, FICA/MHI, elected AZ State taxes and all other mandatory deductionsas required by law.F. Scottsdale Healthcare allows the use of PTO hours concurrent with Family and Medicalleaves. Refer to HR1032 Leave of Absence policy. Accrued PTO hours must be used priorto an unpaid leave for childbirth, adoption, foster placement, or to care for a family memberduring a serious medical condition.G. PTO hours will not be counted as hours worked when computing overtime.H. When a staff member reaches his/her maximum accrual, as set forth in the following chart,the PTO will stop accruing, until the accrual falls below the maximum cap level.Paid Time Off CalculationsPTO Program Hour Accruals and AllotmentsLength ofServicePTO Days PerYear**PTO HoursPer PayAccrual PerHourPTO HoursPer Year**MaximumAccrual***Period**

SUBJECT: PAID TIME OFF Policy #: HR1049 Page3 of 4A. Staff members must request approval from their management staff to receive PTO, except incases of unexpected illness or other emergencies.B. Management staff may deny requests for PTO if the staff member fails to request time offwith reasonable advance notice or when staffing requirements are such that the time offcannot be granted.C. In instances of unexpected illness or other emergencies, staff member is responsible fornotifying his/her management staff in accordance with departmental absence reportingprocedures. Payment may be contingent on certification of a qualifying event by aphysician. Use of PTO hours shall not necessarily exempt a staff member for anyappropriate disciplinary action related to attendance. Communication of attendanceexpectations to the staff member is the responsibility of the staff member’s managementstaff.D. In instances where the staff member is taking PTO for events that would qualify under theFamily Medical Leave Act, the staff member must notify his/her management staff.3. PTO PaymentsA. All PTO hours are paid at the staff member’s base rate of pay and includes the staffmember’s assigned shift differential for no more than the number of hours normallyscheduled per day. EXCEPTION: Part-time staff members who have less than 72 standardpay period hours may take a 40 hour block of PTO per week or 80 hours per pay period.B. Staff member shall report PTO hours in accordance with established payroll time reportingprocedures and/or the established Time and Attendance reference documentation.His/her management staff is responsible for approving the electronic time card forpayment.C. Accrued but unused PTO shall be paid to a staff member in accordance with the establishedguidelines referenced in form 60423 Voluntary PTO Payout Request, Open Enrollment PTOCredit (combined payout not to exceed 80 PTO hours in a calendar year), as well as upontermination of employment from Scottsdale Healthcare, resignation, retirement, or transferinto an employment status ineligible for PTO. The lump sum payment shall be subject tothe Supplemental Wage Federal Income Tax Withholding Rate, FICA/MHI, elected AZ statetaxes and all other mandatory deductions as required by law.D. Accrued, unused PTO hours which are paid in the final paycheck shall not extend past thedate of termination of employment. PTO shall not accrue on payout PTO hours.E. The early release of a payroll check or a payroll advance for vacations may be granted forPTO in accordance with guidelines noted on form 60038 Vacation Early Check ReleaseRequest.F. Payment of accrued, unused PTO in lieu of actually taking the time off shall not be granted,except for as noted above. PTO cannot be used to serve out notice prior to termination.G. In no event shall staff receive both PTO for a scheduled day off simultaneously with workedhours.H. The minimum amount of time chargeable to PTO is 15 minutes.

SUBJECT: PAID TIME OFF Policy #: HR1049 Page4 of 44. Special ProvisionsA. The national holidays Scottsdale Healthcare recognizes shall be New Year's Day, MemorialDay, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Staff membersrequired to work on these designated holidays shall receive time and one-half pay for theregular hours worked on the holiday. If the hours worked on the holiday trigger the overtimestipulation for that department, then the non-exempt staff members shall receive double timefor all applicable holiday overtime hours. HR1050 Pay Practices for Recognized Holidays.B. PTO will accrue on hours taken under PTO with the exception of termination payouts (seeitem B4 above).DOCUMENTATION:· Form 60423 Voluntary Paid Time Off Payout Request· Form 60038 Vacation Early Check Release RequestCONTRIBUTORS/AUTHORS:Judie Goe/Linda Alba