HR-421 Paid Time Off (PTO)

Summary

The University provides eligible employees flexible paid time off (PTO) to promote a healthy work-life balance. Employees may use approved PTO for any reason, including relaxation, vacation, volunteerism, other personal reasons, incidental illnesses, and doctors’ appointments.

If any part of this policy does not reflect the Collected Rules and Regulations (CRR), the provisions of the CRR will govern.

Policy

Per Collected Rules and Regulations, Section 340.025: Paid-Time-Off (Bd. Min. 9-7-22):

Purpose – Paid Time Off (PTO) is a benefit program that allows eligible employees to use their accrued available time off with pay for any reason, upon supervisory approval.
Eligibility – Regular benefit-eligible administrative, service and support and certain non-regular academic employees as approved by the Chancellor and President.
Annual PTO
1. PTO is accrued weekly based on the employee’s years of continuous benefit-eligible service as follows (based on 1.0FTE):
  1. Hourly Paid, Non-exempt Employees
    - 0 – 5 years inclusive: 18 days
    - Over 5 years: 23 days
    - Over 15 years: 28 days
  2. Monthly Paid, Exempt Employees
    - 0 –5 years inclusive: 23 days
    - Over 5 years: 28 days
  3. Nurses accrue on the monthly, exempt schedule
2. Employees working on a basis of 75 percent - 99 percent full-time equivalence will accrue PTO time pro-rata.
3. PTO is available for use once accrued, subject to appropriate supervisory approval.
4. Employees shall be permitted to accumulate two times the allowed PTO earned each year.
Cash-In Program – A cash-in program is authorized for non-exempt MU Health Care employees and other similar employees designated by the President and Vice President of Human Resources, subject to program parameters established by the President and Vice President of Human Resources.
Separation of Employment – Upon separation from the �� System or an employment change to a position not eligible for PTO, employees are eligible to receive payment of unused accumulated PTO, not to exceed 80 hours (based on 1.0FTE). For employees working on the basis of 75 percent - 99 percent full-time equivalence, the 80-hour cap will be adjusted pro-rata. However, employees may not be eligible for PTO payment at separation if discharged for willful gross violation of rules, misconduct, or similar causes.
Effective date – The provisions of this CRR will be effective on or around January 1, 2024, as approved by the President and Vice President of Human Resources.

HR Policy Provisions

Accruals

Eligible employees in active status on the Monday of each week are eligible for the accrual for the corresponding week. Partial weekly accruals are not granted.
Eligible accruals are posted in the employee’s PTO bank every week.
Employees continue to accrue PTO during paid Leaves of Absences. PTO accruals will become available to the employee after returning to work in an active status.

Accrual summary chart (based on 1.0FTE):

Type of Position	Years of Service	Per Year	Hours per Week	Hours per Pay Period	Max Hours Balance
Hourly, Non-exempt	Up to five years	18 days	2.77 hours	5.54 hours	288 hours
	Five up to 15 years	23 days	3.54 hours	7.08 hours	368 hours
	Over 15 years	28 days	4.31 hours	8.62 hours	448 hours
Monthly, exempt	Up to five years	23 days	3.54 hours	Based on the # of Mondays in the month	368 hours
Monthly, exempt	Five years and over	28 days	4.31 hours	Based on the # of Mondays in the month	448 hours

Years of service
1. Years of service are accrued from the employee's most recent benefit-eligible service date.
2. All continuous benefit-eligible service is counted when determining years of service for PTO purposes, including leaves of absence, with or without pay, and periods of continuous benefit-eligible service in academic positions.
Using PTO
1. Supervisors have the responsibility of approving or denying requests for time off. PTO may be denied for unapproved absences. See HR-107 Attendance.
2. PTO is paid at 100% of the employee's salary when the time off is taken, including applicable shift differential if the employee is normally scheduled to work an eligible shift.
3. Official University holidays occurring during an approved PTO period are not charged to accumulated PTO time.
4. PTO is not considered time worked for purposes of calculating overtime. See HR-211 Overtime and Comp Time.
5. PTO must be recorded in the University's timekeeping system as part of the regular payroll processing cycle.
Changes in employment status
1. Employees transferring from one PTO eligible position to another, changing from exempt to non-exempt, or whose FTE is reducing will retain their PTO balance up to the maximum allowed. Any remaining balance will be forfeited. Employees are encouraged to work with their supervisor to take time off to account for the excess PTO before the status change is in effect.
2. Employees transferring to a position that is not eligible for PTO (i.e., variable hour status, faculty appointment, student employment) will be paid lump-sum the unused PTO, up to 80 hours (based on 1.0FTE). Any remaining balance will be forfeited.
3. Employees who experience a layoff from the University will be paid lump-sum the unused PTO, up to 80 hours (based on 1.0FTE), with the remaining balance banked and available for use if the employee receives another benefit-eligible leave accruing position before the end of the layoff period.
4. Employees separating from the University (e.g., resignation, termination, retirement, death) will be paid lump-sum the unused PTO, up to 80 hours (based on 1.0FTE), with the remaining balance unpaid. Any remaining balance will be forfeited. In cases of discharge for willful gross violation of rules, misconduct, or similar causes, employees may not receive such payment.

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HR-421 Paid Time Off (PTO)

Summary

Policy

HR Policy Provisions

See Also

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