Paid Time Off

VANDERBILT UNIVERSITY PEOPLE EXPERIENCE POLICIES AND PROCEDURES
SUBJECT: PAID TIME OFF
EFFECTIVE DATE: Oct. 1, 2016

POLICY STATEMENT

Vanderbilt recognizes the importance and necessity to provide employees with paid time off for vacation, personal time and illness (for the employee’s own illness, injury, or caring for family members).

The purpose of this policy is to provide guidance on Vanderbilt’s Paid Time Off (PTO) program. This benefit provides eligible employees a bank of paid time to use when an employee misses time from work.

THIS POLICY APPLIES TO

This policy applies to all full-time and part-time staff, with the exception of staff covered by the collective bargaining agreement.  

POLICY

Vanderbilt’s Paid Time Off (PTO) policy provides eligible employees a bank of time that provides continuation of pay when an employee misses time from work for vacation, personal time or due to their own or a family member’s illness.

Accruals

Eligible employees begin to accrue PTO immediately upon employment (prorated based on FTE < 1.0 / regular hours <40). PTO may be used as it is accrued. An employee’s PTO bank will accrue each pay period at a rate based on the employee's years of service and FTE. PTO does not expire and will continue to accrue until the maximum level, listed below, is reached.

Non-exempt accruals
Non-exempt employees accrue PTO based on their FTE per week (accrual is prorated if FTE is less than 1). Non-exempt accruals are deposited into the PTO bank on a bi-weekly basis, based on the payroll schedule. Employees only accrue PTO when in a paid status. PTO accruals will be prorated for pay periods that include both paid an unpaid statuses.
Exempt accruals
Exempt accrual rates are prorated based on a percentage of full-time equivalency. Exempt accruals are deposited into the PTO bank on a monthly basis. Employees only accrue PTO when in a paid status. PTO accruals will be prorated for pay periods that include both paid and unpaid statuses.
Accrual Amounts
Accruals are displayed in days but are earned/tracked in hours (e.g., 20 days equals 160 hours for a standard 5-day/40-hour workweek). A "day" of PTO time is equal to 1/5 of the regularly scheduled hours per week.

Employees accrue a prorated number of hours each pay period based upon their FTE. The maximum accrual is shown below:

Year	Non-Exempt Employees		Exempt Employees
	Days	Hours	Days	Hours
1 (date of hire to first anniversary)	20 days	160 hours	24 days	192 hours
2	20 days	160 hours	24 days	192 hours
3*	22 days	176 hours	24 days	192 hours
4	22 days	176 hours	24 days	192 hours
5	24 days	192 hours	24 days	192 hours
6	24 days	192 hours	28 days	224 hours
7	26 days	208 hours	28 days	224 hours
8	26 days	208 hours	28 days	224 hours
More than 8	28 days	224 hours	28 days	224 hours

*The higher rate becomes effective during the pay period in which the employee’s service anniversary falls. For example, a non-exempt employee who begins their 3rd year of service on March 15, 2017, will begin accruing PTO at the higher rate as of March 12, 2017 (the beginning of that pay period).  

Maximum PTO Bank Levels

PTO will accrue up to the maximum levels listed. Once an employee’s PTO reached the maximum level, PTO will not accrue until an employee’s bank is reduced.

Year	Non-Exempt Employees		Exempt Employees
	Maximum Days	Maximum Hours	Maximum Days	Maximum Hours
1 (date of hire to first anniversary)	20 days	160 hours	25 days	200 hours
2	20 days	160 hours	25 days	200 hours
3	22 days	176 hours	25 days	200 hours
4	22 days	176 hours	25 days	200 hours
5	24 days	192 hours	25 days	200 hours
6	25 days	200 hours	30 days	240 hours
7	25 days	200 hours	30 days	240 hours
8	25 days	200 hours	30 days	240 hours
More than 8	30 days	240 hours	30 days	240 hours

Advancing PTO
In some circumstances, and at the supervisor’s discretion, an employee may go into a negative PTO balance, up to a maximum of 40 hours. Leaders should discuss the circumstances with their Engagement Consultant before allowing an employee to go into a negative balance. If an employee ends employment with a negative PTO balance, the negative balance is deducted from the final paycheck.  

Unpaid Time Off
All PTO must be used before time may be taken without pay, except in some cases of extended short-term disability.

Coordinating PTO and Short-Term Disability Insurance (STDI)/Workers’ Compensation

1. Short-Term Disability Waiting Period
  During the waiting period for Short Term Disability Insurance, employees must use a paid leave bank if available (i.e., PTO, Legacy Sick or Parental Leave). Please refer to the University’s Short Term Disability website for more information.
2. During Short-Term Disability Covered Leave
  Employees cannot use PTO while receiving Short Term Disability payments. PTO does not accrue when an employee is being compensated through Short Term Disability as the employee is considered in an unpaid assignment status.
3. Workers’ Compensation
  Employees receiving benefits under workers' compensation cannot be paid from both PTO and workers' compensation for the same hours. However, an employee may supplement workers' compensation pay with PTO to meet their full salary.

Office Closing
If a department operates with a “skeletal staff” or closes for a discretionary reason other than a University holiday or Chancellor-declared administrative day, employees who do not work must use PTO time (or take time off without pay if no PTO is available).

End of Employment
Generally, an employee’s PTO balance will be paid out at their current pay rate at the end of employment or if the employee moves into a position that is not eligible for PTO. This payment is typically included in the last paycheck. PTO is not paid out if employment is terminated for cause, such as financial malfeasance, serious misconduct or other reasons, at the discretion of the University, in consultation with the Engagement Consultant. 

DEFINITIONS

Eligible Employee: Regular and term, full time and part time employees.

FTE: FTE refers to an employee’s full time equivalent based on their normal working hours. For example, if an employee’s normal working hours are 32, they are considered a .8 FTE.

CONSEQUENCES OF NON-COMPLIANCE

Violation of this policy may result in disciplinary action, up to and including termination of employment.

PROCEDURES

These are the procedures for the Paid Time Off (PTO) Policy.

Requesting To Use PTO

Exempt employees should follow their department procedures for requesting PTO and submit the request in Oracle. Approval of PTO is at the discretion of the employee’s leader.

Non-exempt employees should follow their department procedures for requesting PTO and submit the request in UKG (Kronos). Approval of PTO is at the discretion of the employee’s leader.

Recording PTO

Employees are responsible to ensure their time off is accurate and recorded in Oracle.

Non-exempt employees may record PTO in 15-minute increments and PTO must be used for any time missed due to arriving late or leaving early in their workday. Exempt employees should record PTO in full-day increments.

FREQUENTLY ASKED QUESTIONS

Please review the following link.

ADDITIONAL CONTACTS

Subject	Contact/Position	Office	Phone
Questions		People Experience	(615) 343-4788

RELATED POLICIES/DOCUMENTS

HISTORY

Issued: (UPDATED DATE)

Reviewed:

Comment

Amended:
Comment

Disclaimer: The policies and procedures that guide employment practices are intended to assist in consistent administration and compliance. Vanderbilt reserves the right to modify its policies and practices, in whole or in part, at any time. Revisions to existing policies and procedures, and the development of new policies and procedures, will be made from time to time at the discretion of the University. When new policies are implemented or existing policies are revised, the University will notify members of the University community as soon as practicable. However, where differences occur, the most recent policy as reviewed and approved by the University will take precedence. Policies are not intended to apply to statements or actions protected under Section 7 of the National Labor Relations Act. (NLRA) The policies and procedures do not create a contract, implied or expressed, with at-will employees at Vanderbilt.

KEYWORDS

Leave, Personal Day, Day off, Sick Day, Time Off, PTO, vacation