Page 39 - Employee Handbook 4-1-2021

Accrual of PTO begins after an employee has completed the 90-day trial period, unless
otherwise approved. Eligible employees are entitled to PTO based upon his/her years
of active service. Active service commences with an employee’s first day of work and
continues thereafter, unless broken by a leave of absence without pay or termination
of employment.

PTO accrues each pay period, but new employees do not accrue PTO until after
completing the 90-day trial period. The length of eligible service is calculated on a
service year basis. An employee's service year may be impacted for any significant
leaves of absence except military leave of absence. Military leave has no effect on this
calculation.
Once an employee enters an eligible employment classification and completes the 90-
day trial period, he/she begins to earn or accrue PTO according to the schedule. After
the 90-day trial period, employees will be retroactively credited with the PTO which
would have accrued during that period.

Achieving a Milestone

When an employee becomes eligible for additional PTO based on service, the
calculation for accrued PTO will begin on the anniversary date on which the milestone
is achieved. The additional time earned cannot be taken prior to the anniversary date.
When a milestone has been achieved, the employee will begin to accrue at the new

rate based on the total years of eligible service.
Example:
Employee is hired on June 25, 2017. An employee with 12 PTO days (96 hours per
year) earns 3.69 hours per pay. The employee becomes eligible for 17 PTO days (136
hours per year) after 5 years of service (June 25, 2022). He/She will start earning
5.23 hours per pay on his/her anniversary date.

PTO Limits and Carryover
If the total amount of unused PTO (including carry-over PTO) reaches a "cap" equal to
two times the annual PTO amount, further PTO accrual will stop until the employee has
used some of the accumulated PTO. Once the employee has reduced the amount of
accrued PTO on record, PTO will once again begin to accrue.
Example:
An employee accrued 12 days per year (96 hours) in 2020 and used no PTO during the
year. He/she carries over 12 days (96 hours) from 2020, accrues 12 more days (96
hours) during 2021, and uses no PTO in 2021. At the beginning of 2022, the
employee has the equivalent of two years’ (192 hours) worth of PTO accrual which is
the maximum an employee can have on record. The employee will not accrue any
additional time, until he/she takes some of the accrued PTO.

There will be no retroactive PTO compensation for any period of time during which
accrued PTO was at the cap. If accrued PTO reaches the cap, the employee loses the
opportunity to earn additional PTO during those months where the cap was reached.

Upon termination of employment, employees will be paid for any accrued and unused
PTO that has been earned through the last day of work, at their base rate of pay at the

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