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Paid Time Off Policy - 2016 Update

Always refer to the Human Resources Manual on the Forms drive for the latest policy. 

Why Update our Policy?
  • Holiday Pay allows RHA to recognize employees for their hard work and dedication on company recognized holidays. 
  • The change of full-time status from 37.5 to 30 hours per week allows us to offer PDO/PTO to more workers. 
  • New company felt keeping an FMLA PDO Bank needed to be eliminated due to regulatory requirements. 
New Name – From PDO to PTO 
  • Paid Days Off (PDO) is now Paid Time Off (PTO). 
  • New name more accurately reflects what it is. 


PTO Policy Overview
  • The Company’s Paid Time Off (PTO) and Holiday Pay plans provide time off to eligible employees for personal reasons, vacations, holidays, bereavement, the employee’s own illness, or the illness of the employee’s family members. 
  • Employees must meet eligibility and approval requirements. 
  • An employee’s PTO time IS AVAILABLE only to the particular employee and may not be sold or donated to another employee. 
  • Holiday Pay hours are SEPARATE from PTO hours. 
  • Holiday pay and PTOs are NOT part of the equation for Overtime. 
Effective Date of new PTO Policy
  • New PTO policy takes effect on October 9, 2016. 
  • Current PDO policy remains in effect until then 
Reminders on other Changes related to PTO
Full Time is Now 30+ hours
  • New Hires expected to work 30+ hours/week need to be put in a Full Time status. 
  • This is a change from RHA’s previous threshold of a 37.5 hours average. 
  • This is due to the Affordable Care Act requirements. 
  • Employees averaging 30+ hours (and categorized as full-time in our systems) are eligible for full RHA Benefits, including PTO.
New Process for Moving from Full Time to Variable Hour (Part time/PRN) 
  • Only the Manager of Benefits (Misty Guinn) can approve an employee moving from full-time to variable hour. 
  • Units can still move employees from Variable Hour to Full Time via PAR. 
  • Units can still manage an employee’s schedule as needed
  • This is to ensure RHA is compliant with ACA regulations

Updated Paid Time Off (PTO) Accrual Schedule
Change in accrual rate effective @ completion of 1st, 3rd and 10th years of service.

Completed Years of Service

0  Years

1-2 Years

3-9 Years

10 + Years

Hours Per Year

104

156

182

221

Days Per Year (based on 8 hour day)

13

19.5

22.75

27.63

Accrual Per Pay Period

4

6

7

8.5


Comparing Accrual Schedules under Old AND New Policies

Completed Years of Services

0 Years

1-2 Years

3-5 Years

5-9 Years

10+ Years

Old PDO Policy (ending 10/8/2016)
PDO Days/Year

26

26

26

29.25

32.5

New PTO Policy (effective 10/9/2016)
PDO Days + Holiday Pay Days/Year

19

25.5

28.75

28.75

33.63



Announcing Holiday Pay
RHA employees have asked to be recognized for working on holidays. WE LISTENED!

Based on this feedback, RHA is introducing 48 hours of Holiday Pay per year for all full time employees. 
  • All full-time employees will receive 8 hours of Holiday Pay for each company recognized holiday at the time of hire to be used for the remaining holidays in that calendar year. 
  • Pay for these 48 Holiday Pay hours are available to employees immediately upon hire, and will automatically be processed. (PTO still can’t be used until six (6) consecutive full-time months with the company). 
  • Employees that work on a company-recognized holiday will be paid their holiday pay plus their normal hourly rate for the time they worked. 
  • Holiday Pay was made possible by the changes in PTO accrual and payout schedules
  • In order to be eligible for holiday benefits, an employee must actually work the last scheduled workday before and the first scheduled workday after the holiday, except where the employee’s absence is due to approved PTO.

Hourly Full-time employees will receive the holiday pay and either:

1.       Get the day off OR

2.       Get paid what they work that day and get Holiday pay


Holiday Pay Basics
  • Holiday Pay hours are separate from PTO hours. 
  • Holiday Pay and PTO time are NOT part of the equation for Overtime. 
  • Exempt salaried employees will be paid their full salary during weeks of a Holiday.

Recognized Holidays

Recognized Company Holidays 
  • RHA Recognizes these Six (6) Holidays 
  • New Year’s Day (January 1st) 
  • Memorial Day 
  • Independence Day (July 4th) 
  • Labor Day 
  • Thanksgiving Day
  • (last Thursday in November) 
  • Christmas Day (December 25th)
 Eliminated Holidays 
  • Day after Thanksgiving 
  • Day before Christmas 


Discontinuation of the FMLA PDO Bank
Last fall, the new company did not continue the FMLA PDO bank.  That means the rollover of any hours over 120 into the FMLA bank that usually occurred in late Sept/early Oct. won’t be happening anymore.
  • If employees are concerned about getting paid during a planned surgery/accident/etc., we encourage you to also sign up for Short-Term Disability (STD) coverage during Open Benefits Enrollment in the fall. 
  • Additionally, voluntary benefits from UNUM will help cover gaps. 
  • Employees can use still use their PTO hours while on approved personal or medical leave. 


PTO Bank Maximum 160 Hours
Since the FMLA PDO bank is discontinued, and the hours above 120 hour rollover does not have a bank to roll into, RHA has increased maximum to 160 PTO hours effective 10/9/2016.
  • This is a new ‘rolling’ maximum of 160 PTO hours. There will be no date that hours are cut back during the year. 
  • hat means, if employee reaches 160 PTO hours, accrual stops. 
  • Once your balance falls below 160 PTO hours, you’ll accrue PTO again until you reach the 160 maximum. 
  • We encourage employees to use their PTO to ensure work-life balance. 


PTO Limit of 5 Consecutive Days – Then Administrator/Director Approval Needed
  • For employees, many complained of unequal access to time off during peak usage times.
  • For leaders, managing multiple, longer time off events led to coverage challenges for the people we support. 
  • To address these challenges, the threshold for requiring Administrator/Director approval for PTO has been reduced from ten (10) consecutive working days to five (5) consecutive working days
  • Employees may still be able to take more than 5 days PTO in a row. Just need Administrator/Director approval.


PTO Payout at Termination or Switch from Full-time to Variable Hour
  • The notice of resignation of 30 day for exempt, or 10 days for non-exempt (formally defined as Direct Support) employees remains the same. 
  • This notice is required for PTO payout. 
  • Holiday Pay is not eligible for payout. 
  • The PTO payout amount is based on the most recent years of continuous full-time employment
  • PTO is never paid out if an employee is terminated 'for cause'.
PTO Payout Schedule

Completed Years of Continuous FT

Maximum PTO Hours Eligible for Payout
(with notice)

Less than 1 Year

0

1 year

20

2 years

40

3+ years

80


Family Medical Leave Act (FMLA) and Leave of Absence (LOA) 

  • Employees can use their PTO while on FMLA or a Leave of Absence. 
  • Employees CAN NOT use their Holiday Pay while on FMLA or LOA. Holiday pay is only for 'active' employees.
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