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Paid Time Off

VANDERBILT UNIVERSITY HUMAN RESOURCES 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. 

  1. 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.  
  2. 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. 
  3. 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 HR 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 Human Resources 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 P TO

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  

 

Human Resources  

(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