Page 21 - Employee Handbook

EMPLOYEE HANDBOOK
Version 2025.10.28

SECTION 5—LEAVE OF ABSENCE

5.1 Paid Time Off (PTO)

5.1.1 Exempt (Salary) and Corporate Employee Paid Time Off (PTO)

Paid Time Off (PTO) is an all-purpose time off policy for eligible corporate/salary full-time employees to use for vacation,
personal/family illness, doctor/dentist appointments, or personal business. PTO combines traditional vacation and sick
leave plans into one flexible, inclusive policy. PTO is payable in the same manner as the regular salary and is subject to
the same withholding elections. This policy is subject to applicable State and Federal Laws. Employees classified as
benefits eligible, and who are so notified by A-MAX Auto Insurance, are eligible to accrue PTO hours. Part-time employees
are not eligible for PTO.

Upon entering an eligible employment classification, corporate/salary full-time employees will begin to accrue PTO
according to the schedule provided in the employee's offer letter.
• PTO is accrued each pay period based on completed years of service and job level pursuant to the Accrual
Schedule (see section II).
• PTO accrual is based on the employee’s designated standard work schedule and number of eligible hours paid
per pay period, up to 2080 hours worked.
• PTO accrual is based on calendar year, 01/01.
• Exempt/corporate employees are eligible to rollover 40 PTO hours. PTO hours that are rolled over must be used
within the first six (6) months of the rollover.
• PTO begins to accrue from the first day of hire; however, the employee is not allowed to use PTO until after the
designated job level waiting period has been met.
• Employees who have a change in status (part-time to full-time) will begin to accrue PTO on the first pay period
of their new status at the accrual rate based on their length of service.

I. Guidelines for Taking PTO

PTO hours can be used for any reason, including vacation, personal/family illness, doctor/dentist appointments, or
personal business, subject to the needs of the business.

• Employees must obtain approval from their manager prior to taking PTO, unless for unscheduled
personal/family illness. The company may require a doctor’s note and may grant or deny advance requests for
PTO based on the needs of the business.
• Employees are responsible for reporting PTO hours as soon as possible, either before or after it is taken.
• Managers are responsible for ensuring that employees have accurately reported PTO hours taken.
• Exempt/corporate employees can take PTO in 8-hour increments.
• Employees may “borrow” PTO hours not yet accrued. “Borrowed” PTO hours will accrue back with future pay
periods as determined by the Accrual Schedule.
• Employees and managers are responsible for developing a mutually agreed PTO plan that causes minimal
business disruption and allows the employee to utilize all of the employee’s PTO annual allotment by the end
of the calendar year. The company reserves the right to create blackout periods during which PTO should be
avoided if possible and during which requests will be subject to close review by management.

II. Accrual Schedule

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