Test Policy - HR

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Policy Number: # 1-1-0
Posted Date: 4/28/2016
Approved Date: 4/28/2016
Last Modified Date: 4/28/2016
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This policy related to:
Covenant Master Manual
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Covenant HealthCare

Policy Title:

Paid Time Off

Section:

Benefits

Effective Date:  8/1/1999

Policy No: 116

 

Review Dates: 11/2015

Revised: 1/1/2008, 3/1/2009, 6/1/2010, 10/2011, 10/2012, 6/2013, 10/2013, 11/2015

 

Objective:

To provide eligible employees with specified time off with pay for the purpose of rest, relaxation, holiday activities, illness and personal or family needs.

Scope:

 

All Full and part-time Covenant HealthCare employees.

 

Policy:

Full and part-time employees earn Paid Time Off (PTO) based on paid hours (excluding overtime) to a maximum of 80 hours per pay period. Accrual rates are based on benefit accrual hours and increase as different levels are reached.  Employees may utilize their PTO/CASHOUT accruals upon commencement of employment. 

Employees will accrue PTO into two banks; PTO and CASHOUT (CSH). PTO will accrue for the entire year, 26 pay periods. Employees must use hours from either bank throughout the year for time not worked.

The full annual allocation of CASHOUT bank accrues from the 2nd pay period through the 21st pay period each year. Any hours remaining in the CASHOUT bank will automatically be paid to the employee within the month of November. Any outstanding payroll deduction balances (ie: Pharmacy, Gift Shop, Health Insurance, etc.) will be withheld from the CASHOUT bank payment.

Hours cannot be transferred between the two banks. Employees need to let their manager know which bank they are using when taking time off.

Upon termination, an employee may receive pay for any accrued but unused PTO and CASHOUT, provided the employee has given the appropriate notice and has worked as scheduled through their notice periodHowever, if employment is terminated for any type of misconduct, an employee will forfeit their PTO and CASHOUT banks.  Covenant reserves the right in its sole discretion to determine whether the termination is for misconduct.

Employees who are grandfathered into the Catastrophic Sick Bank will have it forfeited upon termination and/or the employee transfers into an ineligible status as this is a form of disability income and not owned by the employee.

PTO accrual rates and the maximum levels of PTO that can be accumulated are indicated below:

 

 

Covenant accrual rates* (New hires on or after 1/1/99 and current employees moving to higher rates)

Benefit Accrual Hours

Accrual Rate for Paid Hours

 

 

 

Annual Accrual for 2080 Hrs/Year

Maximum Accrual

PTO

CSH

PTO

CSH**

Total

Max

<10,399

7.31%

2.50%

152

40

192

288

10,400-20,799

8.08%

3.50%

168

 

56

224

336

20,800-31,199

9.23%

4.50%

192

 

72

264

396

31,200-41,599

10.00%

5.50%

208

 

88

296

444

41,600+

10.38%

5.50%

216

 

88

304

456

** Accrues over 20 pays

Employees who do not wish to be paid for hours remaining in the CASHOUT bank are advised to use these hours, rather than regular PTO hours, to be paid for time not worked prior to December.

 

Definitions:

PAID TIME OFF (PTO): Full and part-time employees earn PTO based on paid hours (excluding overtime) to a maximum of 80 hours per pay period. Accrual rates are based on benefit accrual hours and increase as different levels are reached.  PTO will accrue for the entire year, 26 pay periods.

CASHOUT (CSH): The full annual allocation of CASHOUT bank accrues from the 2nd pay period through the 21st pay period each year.

 

Provisions:

Employees may use earned PTO or CASHOUT for vacation, holidays, sick time, or for other personal reasons. Employees are encouraged to retain some accrual of this time to protect against a loss of income in case of an accident or illness.

The specific time, dates, and duration of any PTO must be approved 24 hours in advance by the employee’s manager. Each department will have a process for PTO requests. In approving the use of PTO, the manager will take into consideration the needs of the department/unit, the employee’s length of service, and the employee’s preferences. If hours are the determining factor in vacation request approvals, accumulated ‘tenure’ hours are to be used for this tenure listing.

Employees that were denied a PTO request and do not report to work on the requested shift/s will receive two (2) absences.

Unscheduled absences and tardiness will be deducted from the employee’s PTO or CASHOUT banks.

PTO/CASHOUT will be paid at the employee’s straight time hourly rate, excluding shift differential and other premiums, and will not be used in the calculation of over-time hours.  If an employee does not have accrued PTO or CASHOUT Bank time, time off requests may not be approved. Managers may authorize unpaid time off for urgent situations only by exception.

Employees whose departments are closed on and/or around the holiday are required to use available PTO or CASHOUT to be paid for the unworked shift.

Employees absent from work during the course of the workweek will be brought up to their budgeted hours using PTO or CASHOUT except for the limited circumstances listed below. 

Employees may, but are not required to use PTO or CASHOUT hours above and beyond their normally budgeted hours in a pay period if the following conditions apply:

  • If an employee is scheduled over budgeted hours – an employee may choose to receive PTO or CASHOUT for the hours they were originally scheduled above budgeted hours. Example:  An employee who is budgeted for 24 hours per week picked up an extra shift, therefore, is scheduled for 32 hours.  If that employee is not present for one of the scheduled shifts, an employee may choose to take PTO or CASHOUT for 32 hours rather than the 24 hours they were budgeted for. Managers have the responsibility to define and communicate the hours of work according to the needs of the department.
  • All full-time and part-time employees are required to use accrued PTO for any scheduled unworked shifts on the holiday.

Employees absent due to personal disability must be paid from the employee’s regular PTO or CASHOUT banks for the elimination period of one week of budgeted hours.  Employee’s with Catastrophic Sick Bank who are off for  longer than one week of budgeted hours work may request pay from hours accumulated in their Catastrophic Sick Bank to commence at the end of the one week elimination period.  PTO, CASHOUT or CATASTROPHIC accumulated time may be used to supplement STD following the elimination period.  Medical documentation of the nature and duration of the disability and other relevant information may be required.

Employees who do not have hours accumulated in their Catastrophic Sick Bank may use any accrued PTO or CASHOUT hours to continue or supplement (STD) pay during an absence for medical reasons.

All absences, paid or not paid, must be reported to the employee’s manager. All paid absences must be reported in the time and attendance system.

Hours may not be transferred between the PTO and CASHOUT banks. The choice to use hours out of one bank as opposed to another bank cannot be reversed once the hours have been paid to the employee.

PTO/CASH BANK DONATIONS:

Donations are paid out at the donating employee’s rate of pay. These donations are intended to be approved only in cases of critical incidents. Managers must sign off on all requests to transfer PTO or CASHOUT bank hours and forward to Human Resources Consultant for final approval.

CASHOUT PROCEDURE:

Any hours remaining in the CASHOUT bank will be paid out in November.

References or Appendices:

CROSS REFERENCE:

Attendance & Tardiness

Employee Separation

Introductory Employment Period

Leaves of Absence

•   Worker’s Compensation

 

 

 

 

 

 

 

 

 

 

 

 

Approvals:

 

 

 

Vacant                                              

Director Human ResourcesDate

 

 

 

 

                                                  

Kevin Birchmeier, Vice President Human ResourcesDate

Page 1 of 4

 

Approved Date: 4/28/2016 5:24:22 PM

Document History



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