Valparaiso University

1. Valparaiso University NewPaid Time Off Leave Policy October 2013

2. Why did we review this policy? Current Policies Reviewed: Vacation Time Personal Time Sick Time Salary Continuation Today’s Agenda • New Policy Changes • Vacation Time • Sick Time • Short-Term Disability • What does this mean for you? • FAQ’s 2

3. Why did we review this policy? • Address employee morale, retention and recruitment • Remain competitive • Support the Strategic Plan • Goal 4: VU will undertake concrete actions to deepen student, faculty and staff well-being and sense of appreciation by the University… • Goal 3: VU will increase the diversity and the number of backgrounds and perspectives with the faculty, staff and student populations. • Goal 6: VU will develop and implement a sustainable business model.

4. Paid Time Leave • Staff Concerns regarding paid time off leave • New hires variable leave awards based on start date within fiscal year calendar • Inconsistencies between hourly and salaried paid time off policies (vacation, personal, sick, and salary continuation) • Reward service levels past 15 years • Vacation leave carry-over across fiscal years 4

5. Original Hourly Schedule Original Salaried Schedule Original Hourly & Salaried Vacation Schedules 5

6. New Vacation Leave Align hourly and salaried paid time off policies. Reward service levels past 15 years. For new hires, vacation days awarded based on start month. Vacation carry-over across fiscal year for 90 days. Remain competitive with other employers. Address employee morale, retention, and recruitment. 6

7. New Vacation Schedule NOTE: Awards are based on a 40-hour work week. Hence, the benefit will be pro-rated based on each employee’s number of standard hours. 7

8. New Vacation Leave Highlights • Vacation will be awarded on July 1st each year. Employees must work 1 day in new fiscal year to receive vacation days. • Vacation carry-over after June 30 may be allowed with supervisor approval. • 5 day maximum carry-over. • Vacation days that carry-over must be used within 90 days. • Vacation days that carry-over will not be paid out at separation. • Additional awards to recognize service year milestones at 20 years and 25 years. • Personal days no longer exist as separate time off days for hourly staff. 8

9. Original First Year Vacation Waiting period of 6 months before a new employee is awarded and able to use a vacation day. Hired on July 1st, employee has 5 days to use the first fiscal year and then 10 days in the next fiscal year. Hired on July 2nd, employee has 5 days to use the first fiscal year and then 5 days in the next fiscal year. 9

10. New First Year Vacation Schedule NOTES: Awards are based on a 40-hour work week. Hence, the benefit will be pro-rated based on each employee’s number of standard hours. For new hires, days will be awarded after successful completion of initial evaluation period. 10

11. New Vacation Leave Highlights for 1st Year • For the first year of hire, vacation days will be awarded pro-rated based on start month. • Vacation days will be available for use after the successful completion of the initial evaluation period. • Any vacation days awarded but not used during the first year of hire will automatically carry-over to the next fiscal year. • The vacation days that carry over should be used as soon as possible, but within 90 days. • Employees with less than one year of service are not eligible to receive payout of unused vacation days at separation. 11

12. Current Sick Leave • Hourly staff receive paid sick and family illness time for periods of personal illness, injury or medical treatment, or illness, injury or medical treatment for an employee’s spouse, parent or child. • Paid sick/family illness benefits are earned each pay period, at the rate of .0231 hour for every regular hour paid. • The accrued benefit is available for the employee’s use as it is earned, up to a maximum of sixty (60) working days. • Current handbook does not address sick time for salaried employees. 12

13. New Sick Leave Policy • All salaried and hourly staff will receive six (6) sick days (based on a 40-hour work week) each fiscal year, awarded on July 1st. • Sick time can be used for the employee or immediate family. • Sick time can be used in increments of hours and days. • Unused sick days cannot be carried across fiscal years. • Unused sick days will not be paid out to employees. • Transition to new policy: • Hourly staff will receive a payout for any accrued, unused sick time over 6 days. • Accrued sick pay will be paid out at year end over the next three years, in payments equaling 1/3 of the balance. 13

14. New Short-term Disability • Short-term disability coverage will be available to all salaried and hourly staff. • Replaces salary continuance (salaried) and accrual of sick days (hourly). • Short-term disability coverage is self-funded by VU. • Short-term disability benefit • Elimination Period: Seven (7) continuous calendar days • Benefit % (of standard pay), based on continuous calendar days off: • Day 1 – 7: 0% • Day 8 – 31: 100% • Day 32 – 182 (26 weeks): 60% • Weekly Short-term Disability Benefit Maximum: $1,200 • Maximum Benefit Period: 26 weeks • All current benefits eligible to active employees will continue during short-term disability leave. • Vacation and sick days can be used during short-term disability leave to supplement pay to get an employee up to, but not to exceed, 100% pay. 14

15. Next Steps • Policy retroactive 7/1/2013. • Communication to all Hourly and Salaried staff. • Tracking required. • Training required. 15

16. Questions 16