HUMAN RESOURCES POLICIES AND PROCEDURES Policy Name: Earned Leave Policy Purpose: To standardize, define and communicate the policy and procedures for administering Earned Leave. Policy Statement: Main Line Health provides Earned Leave eligible employees paid time off from work. This policy does not address the Main Line HealthCare Physician Practices Earned Leave. Procedure: There are two Earned Leave accounts - Basic Leave / Supplemental Basic Leave and Extended Illness / Prolonged Illness. Basic Leave time must be used for personal time off, scheduled vacations, and for the first seven (7) calendar days of short-term illnesses (a physician note may be required after three work days). Extended Illness / Prolonged Illness may only be used for an employee s own non-work related illness or injury. Earned Leave begins accruing on an employee s date of hire or the date they become Earned Leave eligible; however, employees may not use either account until they have been employed for 90 days. Eligibility: All Earned Leave eligible employees who are authorized and regularly scheduled to work at least 32 hours biweekly and who have completed 90 calendar days of employment are eligible to use Earned Leave. Basic Leave and Supplemental Basic Leave Basic Leave Accrual/Carryover: Earned Leave eligible employees will accrue Basic Leave each pay period on a twelve-month cycle based on their pay grade classification and date of hire according to the appropriate Basic Leave Accrual chart, below. All Earned Leave eligible part-time employees will accrue Basic Leave each pay period on a prorated basis based on their pay grade classification, date of hire, and actual hours worked (excluding overtime) according to the appropriate Basic Leave Accrual chart. Earned Leave eligible employees may not carry over more than their maximum annual accrual from one calendar year to the next. Basic Leave accrued above the employee s maximum annual accrual at the end of the calendar year will be deleted. The maximum accrual per year will be based on the employee s last paycheck of the calendar year. The last check paid and dated in the calendar year is the last date to use Basic Leave prior to the carryover. Supplemental Basic Leave Accrual/Carryover: Employees, who have completed 25 years of service, will receive 40 hours (prorated for parttime employees) of Supplemental Basic Leave time every five (5) years on their anniversary date (e.g.: 25, 30, 35, 40, etc.). The five days must be used within the five year period between employment anniversaries. Additional five Page 1 of 4
day allotments will become available on subsequent major anniversaries. The Supplemental Basic Leave bank may not exceed 40 hours (5 days) at any point (Please see Human Resources for details regarding 2014 exception). Unused Supplemental Basic Leave time may be carried over from one calendar year to the next within a five year period. It may be cashed in as outlined below, or it will be paid out on termination. Cash-In: Each year, employees (other than exempt management) may elect to have Basic Leave and Supplemental Basic Leave cashed out in accordance with IRS regulations. All Earned Leave eligible employees may elect to cash-in up to 60 hours of the following year s accruals to be paid in that year. A balance equal to one-half of the employee s biweekly-authorized hours must be maintained. Hours available and balance requirements are shown in the chart below. Authorized Weekly Hours Hours Available For Cash-In 40 60 40 36 60 36 32 60 32 24 60 24 20 60 20 16 60 16 Remaining Minimum Balance Required The cash-in will be reduced and paid out at 75% of the gross payment amount. All applicable taxes will still apply. Here is an example of how the calculation will be made: A) Number of hours requested to be paid out: 20 Hours B) Hourly rate in place at the time of the payment: $19.23 C) A multiplied by B: $384.60 D) Gross Payment Total [multiply C by.75 (75%)]: $288.45 Transfers: An employee who transfers between MLH facilities will carry over any accrued Basic Leave. Use of this accrued leave will be according to the hiring department s policies and procedures. Overtime Calculation: Basic Leave and Supplemental Basic Leave will not be considered as time worked for the purpose of computing overtime. Refer to the Overtime Pay Policy and Procedure, No. 6.3, for further information on the computation of overtime. Scheduling/Requesting Basic Leave: Basic Leave and Supplemental Basic Leave time should be requested in accordance with the procedures established in each department (e.g. verbal, written request, etc.). Employees must have an adequate balance of Basic Leave and Supplemental Basic Leave available to cover the amount of time requested off. A previously approved request may be denied in the absence of a sufficient balance. Basic Leave and Supplemental Basic Leave requests should be submitted as far in advance as possible to allow the supervisor to staff appropriately. Approval from Supervisor/Manager is required. However, approval is discretionary and will be based upon the department s staffing needs. Exempt employees may only utilize Basic Leave and Supplemental Basic Leave time in scheduled full or half shift increments. Employees must notify their supervisor prior to the start of their shift in accordance with the department s procedures regarding emergency situations and/or special circumstances. Scheduled or Unscheduled time off cannot be unpaid if the employee has time available in their Basic Leave and Supplemental Basic Leave banks. Page 2 of 4
Payout upon Termination/Change of Status: Employees will be paid the balance of the Basic and the Supplemental Basic Leave time remaining in their banks after their termination of employment, or if they transfer to a non-earned Leave eligible position, provided they have completed their initial 90 days of employment. Pay Grades Band A Completed Years of Service Earned Leave Accrual Schedule prior to 12/22/2013 FT (80) Hours Accrued Per Pay Period (72) (64) (48) (40) (32) Maximum Accruals Annual Carry Over Allowance 0-4 6.1538 5.5384 4.9230 3.6923 3.0769 2.4615 160 hrs or 4 weeks 200-207; 306-307 5-14 7.6923 6.9231 6.1538 4.6154 3.8462 3.0769 200 hrs or 5 weeks 15-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks 25 & up 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Band B 208-215; 106-112; 308-315; 410-412 0-4 7.6923 6.9231 6.1538 4.6154 3.8462 3.0769 200 hrs or 5 weeks 5-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks 25 & up 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Band C 113-122; 413-422; 316; 900-940 0-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks 25 & up 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Page 3 of 4
Earned Leave Accrual Schedule Effective 12/22/2013 (for status changes, new hires and rehires <45 days) Pay Grades Band A Completed Years of Service FT (80) Hours Accrued Per Pay Period (72) (64) (48) (40) (32) Maximum Accruals Annual Carry Over Allowance Supplemental Basic Leave 0-4 4.6154 4.1539 3.6923 2.7692 2.3077 1.8462 120 hrs or 3 weeks 5-9 6.1538 5.5384 4.9230 3.6923 3.0769 2.4615 160 hrs or 4 weeks 200-207; 306-307 10-14 7.6923 6.9231 6.1538 4.6154 3.8462 3.0769 200 hrs or 5 weeks 15-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Band B 0-4 6.1538 5.5384 4.9230 3.6923 3.0769 2.4615 160 hrs or 4 weeks 208-215; 106-110; 308-309; 410 5-9 7.6923 6.9231 6.1538 4.6154 3.8462 3.0769 200 hrs or 5 weeks 10-14 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks 15-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Band C 0-4 7.6923 6.9231 6.1538 4.6154 3.8462 3.0769 200 hrs or 5 weeks 111-112; 310-315; 411-412 5-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Band D 113-122; 316; 413-422; 900-940 0-24 9.2308 8.3077 7.3846 5.5385 4.6154 3.6923 240 hrs or 6 weeks Page 4 of 4
Extended Illness and Prolonged Illness Extended Illness/Prolonged Illness may only be used for the employee s own non-work related illness or injury. A healthcare provider s certification is required in order to use Extended Illness/Prolonged Illness time. All Earned Leave eligible employees may access Extended Illness/Prolonged Illness beginning with the eighth (8 th ) calendar day of absence. Extended illness/prolonged Illness must be exhausted prior to electing to use Basic leave for absences related to illness or injury. Extended Accrual: Employees hired or who become Earned Leave eligible prior to 12/22/2013, will accrue Extended Illness on a 12-month cycle beginning with the employee s date of hire. An Earned Leave eligible full-time employee will accrue 80 hours of Extended Illness annually on a biweekly basis, or 3.0769 hours per pay period. An Earned Leave eligible part-time employee will accrue up to a maximum of 80 hours annually, prorated on a biweekly basis based on actual hours worked, excluding overtime. Maximum accrual is 640 hours for all Earned Leave eligible employees. Prolonged Illness Employees hired or who become Earned Leave eligible after 12/22/2013, will receive two (2) calendar weeks of Prolonged Illness (maximum 80 hours; prorated for Earned Leave eligible part-time employees; prorated for midyear eligibility) at the start of each calendar year. This bank cannot be carried over and will not exceed an amount equal to two calendar weeks. Prolonged Illness may only be used for the employee s own non-work related illness or injury. A healthcare provider s certification is required in order to use Prolonged Illness time. All Earned Leave eligible employees may access their Prolonged Illness hours beginning with the eighth (8 th ) calendar day of absence. Prolonged Illness must be exhausted prior to electing to use Basic Leave for absences related to illness or injury. Note: if an employee is not approved for Short Term Disability (STD), Extended Illness/Prolonged Illness may not be used after the 7 th calendar day of illness or injury. The employee s Extended Illness/Prolonged Illness bank must be exhausted prior to becoming eligible to use STD. The STD payments are (refer to the Summary Plan Description located on Benefit Express) based on the employee s current rate of pay and standard hours as reflected in MLH s Human Resources Information System (PeopleSoft). An employee may choose to supplement STD with their Basic Leave. The combination of Earned Leave and STD may continue for up to 180 calendar days. At that time, the employee may apply for LTD if eligible. (Refer to Coordination with Other Programs below). Employees must use Basic Leave/Supplemental Basic Leave for the first seven (7) calendar days of their leave for a non-work related illness or injury in order to access their Extended Illness/Prolonged Illness. If the employee has time available in their Extended Illness/Prolonged Illness bank it must be used prior to authorized STD and is only allowed for the employee s own illness. Other Employment: Employment outside of Main Line Health while on Extended Illness/Prolonged Illness leave must be approved by the Human Resources Department. Unauthorized employment while on an approved leave will result in termination. Overtime Calculation: Extended Illness/Prolonged Illness will not be counted as time worked toward the computation of overtime. Refer to the Overtime Pay Policy and Procedure, No. 6.3, for further information on the computation of overtime. Page 5 of 4
Transfers: An employee who transfers between MLH entities will carry over any accrued Extended Illness/Prolonged Illness. Termination/Change of Status: Extended Illness/Prolonged Illness time will not be paid out upon termination of employment. If an employee transfers to a non-eligible status, all time will be deleted. Integration with Other Programs Extended Illness/Prolonged Illness is not available to employees who refuse to file a Workers Compensation claim for a work related injury or who have an approved Workers Compensation claim and refuses temporary duty assignments. Basic Leave/Supplemental Basic Leave may be used to supplement STD benefits for employees on a Family & Medical Leave of Absence or for those on a medical leave. An employee must be approved for STD benefits to be eligible to use Extended Illness/Prolonged Illness hours. Please refer to the Leave of Absence Policy and Procedure (Policy No.4.5), the Workers Compensation Policy and Procedure (Policy No. 4.6), and the Summary Plan Description for Short Term Disability for additional information on the integration of Earned Leave with other Leave Programs. Exclusions: Extended Illness/Prolonged Illness pays no benefits for the following: Work related injury Medical conditions (including pregnancy) not being treated by a physician. Procedures relating to cosmetic surgery, other than such surgery necessitated by accidental bodily injury. Illness or injury caused by or contributed to by an intentionally self-inflicted injury. Illness or injury caused by the employee s commission of or attempt to commit a felony, or to which a contributing cause was the employee being engaged in an illegal occupation. Illness or injury caused or contributed to by war or an act of war (declared or not). Injury sustained as a result of doing any work for pay or profit for another employer. Reference: Leave of Absence Policy (Policy No. 4.5); Workers Compensation Policy and Procedure (Policy No. 4.6) Origination Date: March 14, 1990 Revision Date: October, 2014; November, 2013; February, 2013; June, 2012; February, 2012; November, 2011; February, 2011; February, 2010; November, 2009 Review Date: October, 2014; November, 2013; February, 2013; June, 2012; February, 2012; November, 2011; February, 2011; February, 2010; November, 2009 Page 6 of 4