Paid Time Off (PTO) for Exempt Staff and Non-Exempt Non-Union PAO and PAU Staff

Policy Contact: IU Human Resources
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Scope

This policy applies to Exempt staff and Non-Exempt Non-Union PAO and PAU staff employees.

Policy Statement

  1. Indiana University believes that Exempt staff and Non-Exempt Non-Union PAO and PAU staff employees should be afforded certain amounts of paid leave to conduct personal affairs and have a break from work demands. Managers are encouraged to support this purpose by anticipating paid time-off in formulating organizational structures and work schedules.
  2. This policy provides Exempt staff and Non-Exempt Non-Union PAO and PAU staff employees (who were hired after January 1, 1985) with a structured time-off plan for pay during specific periods of leave as a component of total compensation. This single time-off plan covers several types of personal leave, including; vacation time, personal or family sickness, attendance at a funeral, and other personal affairs.
    1. Full-time (100% FTE) staff earn an annual equivalent of 240 PTO hours for the first 60 months of employment based on university service.
    2. Full-time staff earn an annual equivalent of 288 PTO hours on or after 60 months of employment based on university service.
    3. Staff employees with an FTE less than 100% but 50% or greater earn a prorated amount of PTO.
    1. Employees and supervisors are expected to maintain accurate records of specific hours worked, overtime and compensatory time, hours covered by PTO, and other paid leave plans.
    2. Hours worked over 40 hours in the university's workweek, which starts and stops on Saturday at midnight, are covered as overtime or compensatory time. See the Overtime policy for details.
    1. Exempt staff employees are not expected to maintain records of specific hours worked. It is expected that Exempt staff employees and their supervisors are ensuring that the average weekly work effort in each month is consistent with the position's FTE status. (For example, a 100% FTE position is expected to work an average of at least 40 hours a week during a month; a 50% FTE position is expected to work an average of at least 20 hours per week.)
    2. Except for FMLA and Workers’ Compensation covered absences, under FLSA regulations, any reductions in salary for an Exempt staff employee can be made only in full-day increments. If any portion of a day is worked or covered by PTO, PTO Sick Leave, or other paid time-off, the employee must receive full pay for the day. See the FMLA or the Injury on the Job policy for more information.

    Procedures

    General Paid Time Off (PTO) for Exempt staff and Non-Exempt Non-Union PAO and PAU staff

    1. University service credit is used to calculate the amount of PTO staff earns in this time-off plan. See the PTO Accruals section for details.
      1. University service credit includes service as part time with retirement employee and any other staff or academic position eligible for benefits.
      1. A formal leave of absence
      2. A temporary or permanent reduction in force
      3. An absence without pay as defined in the Time Off Accruals During Absences policy
      1. Management’s responsibility is to monitor attendance and the accurate recording of time-off, including partial day absences, and address unacceptable attendance patterns through the Corrective Action policy.
      1. In the event of a seasonal office closure (see the Furlough policy), such as during the winter break, spring break, or summer semester, employees may borrow up to 40 hours of PTO against future accruals under the following two conditions:
        1. The employee is expected to return to work after the furlough.
        2. The employee does not have any recent attendance issues.

        PTO Usage, Recording PTO, and PTO Accruals

        1. Exempt staff are paid monthly and accrue PTO hours at the end of each month, which can be used in the following months, based on the policy provisions below.
          1. General guidelines for supervisors:
            1. Employees are paid a monthly salary based on their FTE status. The accomplishment of goals and objectives, and work effort may exceed the position's FTE status (i.e., more than 40 hours a week) without overtime or compensatory time. (Exempt staff employees are not eligible for overtime or compensatory time.)
            2. Periodically for many Exempt staff and regularly for high-level Exempt staff, work effort may exceed the position's FTE status.
            3. Before requiring an Exempt staff to record a half-day PTO, the supervisor should consider allowing the employee to flex the time during a week when the work effort exceeds the FTE status.
            1. Time-off between ¼ and ¾ of a workday should be charged as a half-day.
            2. Time-off for ¾ or more of a workday should be charged as a full day.
            3. Time-off for ¼ or less of a workday should not be charged as PTO.

            Recording PTO Usage

              1. The process for recording PTO must contain the following provisions at a minimum.
                1. Staff are required to record PTO usage at least monthly.
                2. PTO must be recorded using the applicable university system. (Exempt staff employees use the university’s ePTO system.)
                3. At the end of each month, supervisors must review employees’ PTO records to confirm the accuracy and make any necessary corrections.

            PTO Accruals

              PTO accruals are based on the following table, subject to the below provisions:

            Full-time Exempt staff Employees
            University Service PTO Accrual Per Monthly Pay Period Annual Equivalent Accrual
            Up to the first 60 months 20 hours 240 hours
            On and After 60 months 24 hours 288 hours
            1. Non-Exempt Non-Union PAO staff are paid bi-weekly and accrue PTO hours at the end of each bi-weekly pay period, which they can use in the following pay periods, based on the policy provisions below.
              1. General guidelines for supervisors:
                1. Actual hours worked and time-off are recorded in the university's payroll system, with employee pay based on hours worked, overtime, compensatory time, and paid time-off.
                2. Hours worked over 40 hours in the university's workweek are paid as overtime or accrued as compensatory time, under federal regulations and university policy, without exception.
                3. All time not worked based on the position's FTE (i.e., actual work less than 40 hours a week) should be counted as PTO, another paid leave, or absence without pay.

                Recording PTO Usage

                  1. The process for recording PTO must contain the following provisions at a minimum.
                    1. Staff are required to record PTO usage at least weekly.
                    2. PTO must be recorded using the applicable university system. (Non-Exempt Non-Union PAO staff employees use the university's TIME system.)
                    3. After the end of each bi-weekly pay period, supervisors review employees’ records to confirm the accuracy and make any necessary corrections.
                    4. PTO must be recorded in the exact number of hours, including tenths of hours.

                PTO Accruals

                  PTO accruals are based on the following table, subject to the below provisions:

                Full-time Non-Exempt Non-Union PAO staff employees
                University Service PTO Accrual Per Bi-weekly Pay Period Annual Equivalent Accrual
                Up to the first 60 months 9.24 hours 240 hours
                On and After 60 months 11.08 hours 288 hours
                1. Non-Exempt Non-Union PAU staff are paid bi-weekly and accrue a certain number of PTO hours at the end of each bi-weekly pay period, which they can use in the following pay periods, based on the policy provisions below.
                  1. General guidelines for supervisors:
                    1. Actual hours worked and time-off are to be recorded in the university's payroll system, with employee's pay based on hours worked, overtime, compensatory time, and paid time-off.
                    2. Hours worked over 40 hours in the university's workweek are to be paid as overtime or accrued as compensatory time, under federal regulations and university policy, without exception.
                    3. All time not worked based on the position's FTE (i.e., actual work less than 40 hours a week) should be counted as PTO, another paid leave, or absence without pay.

                    Recording PTO Usage

                      1. The process for recording PTO must contain the following provisions at a minimum.
                        1. Staff are required to record PTO usage at least weekly.
                        2. PTO must be recorded using the applicable university system. (Non-Exempt Non-Union PAU staff employees use the university's TIME system.)
                        3. After the end of each bi-weekly pay period, supervisors must review employees’ records to confirm the accuracy and make any necessary corrections.
                        4. PTO must be recorded in the exact number of hours, including tenths of hours.

                    PTO Accruals

                      PTO accruals are based on the following table, subject to the below provisions:

                    Full-time Non-Exempt Non-Union PAU staff employees
                    University Service PTO Accrual Per Bi-weekly Pay Period Annual Equivalent Accrual
                    Up to the first 60 months 9.24 hours 240 hours
                    On and After 60 months 11.08 hours 288 hours

                    Approvals for Usage

                    1. Employees must have supervisory approval to use PTO, except as noted below.
                      1. Employees who encounter a personal or family illness or an emergency may charge the time-off to PTO. Employees must notify their supervisor about the reason and when they expect to return as soon as possible. Employees may be required to provide documentation regarding the nature and circumstances of the absence.
                      1. Employees cannot take FMLA-covered absences without pay if they have paid time-off available. See the FMLA policy for details.
                      2. Employees may choose to use or not use PTO for absences under the Leaves for Military Duty policy.

                      PTO Sick Leave for Exempt staff and Non-Exempt Non-Union PAO and PAU staff

                      1. Employees may use time from their PTO Sick Leave account to cover personal or family illness or Worker's Compensation supplemental pay. Supervisors may require confirmation of illness or injury through a licensed physician's statement.
                        1. Employees may use PTO sick leave to provide care for illness, injury, or medical/dental appointments for immediate family or household members.
                        2. Members of the immediate family or household are spouses, unmarried children at home or other relatives living with the employee.
                        3. Parents, children, grandparents, brothers, sisters, and relatives of the same degree who are solely dependent on the employee for emergency care.
                        1. Spouse, child, grandchild, parent (or an individual who stood in loco parentis when the employee was under the age of 18), sibling, grandparent, an in-law of the same degree, step relative of the same degree, and other relatives of whom the employee is the sole survivor.
                        1. Time-off between ¼ and ¾ of a workday should be charged as a half-day.
                        2. Time-off for ¾ or more of a workday should be charged as a full day.
                        3. Time-off for ¼ or less of a workday should not be charged as PTO Sick Leave.

                        Calendar Year–End Unused PTO Accrual Balances

                        1. Each employee and the employing unit records time-off accruals and usage. These records are subject to audit throughout the year. At the end of each calendar year, time-off balances are sent to the campus payroll department.
                        2. Up to the annual accrual amount of PTO may be carried over into the following calendar year:
                          1. Employees with fewer than 60 months of university service may carry over 240 hours.
                          2. Employees with 60 months or more of university service may carry over 288 hours.
                          3. Employees may carry over 288 hours at the end of the year in which the monthly accrual rate increases to 24 hours for Exempt staff and the bi-weekly accrual rate increases to 11.08 hours for Non-Exempt Non-Union PAO and PAU staff.
                          1. At the end of each calendar year, full-time (100% FTE) employees with unused PTO hours can allocate up to 136 of those hours to their PTO Sick Leave account. For part-time employees, this amount is prorated by their position's FTE.
                          2. Employees with PTO hours in excess of the annual carry-over maximums have the excess hours up to a limit of 136 hours allocated to their PTO Sick Leave.

                          Effect of Classification Changes (promotion, demotion, transfer, or reclassification) and Reduction of FTE

                          1. From a Non-Exempt (excluding PAO and PAU) staff position to an Exempt staff position
                            1. The Income Protection time balance is transferred into PTO Sick Leave.
                            2. The Vacation time balance is transferred into PTO and serves as the beginning balance.
                              1. If the balance exceeds the maximum accrual amount, the excess time is carried over as PTO, but it must be used or transferred to PTO Sick Leave by the end of the following year.
                              2. The 136 hour maximum amount of PTO that can be transferred to PTO Sick Leave is waived at the end of the first year and the end of the following year.
                              1. The PTO balance is transferred to Vacation time.
                              2. The PTO Sick Leave balance is transferred to Income Protection time.
                              3. Any previously accrued Honorary Vacation is transferred to the vacation time.
                              1. The employee’s academic unit is to certify the amount of vacation time to transfer with IU HR. The vacation balance (up to a maximum of 22 days, 176 hours) is transferred into PTO and serves as the beginning balance.
                              2. A beginning balance of PTO Sick Leave is established based on one-half day of sick leave for each month of university service credit.
                              1. PTO and PTO Sick Leave balances do not transfer to an Academic appointment. Accumulated time-off is paid per the Payment of Unused Accruals upon Separation section below.
                              1. The sick leave time balance is transferred into PTO Sick Leave.
                              2. The vacation time balance and bonus holidays up to the maximum allowed in the new plan are transferred into PTO and serve as the beginning balance.
                              3. Any Honorary Vacation balance is transferred to Honorary Vacation, and no additional Honorary Vacation is earned. With supervisory approval, 100% FTE staff may use up to a maximum of 60 Honorary Vacation days per year. Part-time employees may use a portion of this amount, prorated by their FTE. This limit does not apply to the use of Honorary Vacation for an FMLA leave of absence.
                              4. The provisions of the time-off plan associated with the specified classification will then be applied for accruals and usage.

                              Payment of Unused Accruals upon Separation

                              1. All employees covered by this policy receive the accrued time-off described below, whether or not the employee gives or receives a notice of separation.
                                1. Holidays that are still eligible for use within the specified time allowed
                                2. Paid Time Off (PTO) balance
                                3. Compensatory time-off for PAO staff
                                4. Honorary vacation balance, up to a maximum of 60 days (480 hours) for 100% FTE staff. (Exempt staff and Non-Exempt Non-Union PAO and PAU staff employed before 1985 or promoted from a Non-Exempt (excluding PAO and PAU) position to an Exempt staff and Non-Exempt Non-Union PAO and PAU staff position before May 2002 may have previously accrued honorary vacation.)
                                1. 25% of pay for 152.0 through 312.0 hours
                                2. 50% of pay for hours more than 312 hours
                                1. Exempt staff and Non-Exempt Non-Union PAO and PAU staff in the 15% IU Retirement Plan have vacation or PTO deducted from the interim benefits payment. Contact the campus human resources office for details.

                                Sanctions

                                Managers, supervisors, and employees who violate this policy are subject to disciplinary action, up to and including termination.

                                History

                                November 2022
                                Updated to increase in number of hours that can employees can transfer from PTO into the PTO sick leave at the end of the calendar year from 120 hours to 136 hours.

                                July 2022
                                Updated to clarify when an employee can use PTO Sick Leave.

                                June 2022
                                Updated "temporary" employee nomenclature to "part time".

                                May 2022
                                Interim provisions to this policy for Keep IU Healthy (KIH) expired on April 30, 2022. The previous version of HR-05-70 can be viewed here.

                                January 2022
                                IU HR completed a full and substantive review to assess the ongoing need and effectiveness.

                                February 2021
                                Updated the staff employee group terms due to Job Framework Redesign Project.

                                December 2020
                                Interim provisions to this policy expired on December 31, 2020, under the terms of the Families First Coronavirus Response Act (FFCRA).

                                August 2020
                                Interim provisions to this policy were put into effect to comply with the Families First Coronavirus Response Act (FFCRA). This version of HR-05-70 can be viewed here.

                                May 2018
                                Removed same-sex domestic partner language.

                                April 2018
                                Updated wording to clarify how full time equivalent (FTE) impacts paid time off accruals.

                                November 2017
                                Updated to remove PAS salary plan.

                                September 2017
                                 Removes Affidavit of Domestic Partnership.

                                December 2016
                                Revised to add PAS salary plan.

                                February 2016
                                This policy replaced the following policies:

                                Professional Staff and
                                Support and Service Staff not Covered by a Union                                		10.6 - Paid Time Off (PTO) Policy for Professional (PA) Staff
                                This policy replaces parts of the following policies:
                                • C.1.a.
                                • C.1.a.i.
                                • C.1.a.iii.
                                • C.1.a.iv.
                                • C.1.a.v.
                                • C.2.a.ii.
                                • C.2.a.ii.first dot
                                • C.2.a.ii.second dot
                                • C.2.a.ii.third dot
                                • C.2.b.iv.
                                • C.2.b.iv.first dot
                                • C.2.b.iv.second dot
                                • C.2.b.v.
                                • C.2.c.i.
                                • C.2.c.ii.
                                • C.2.c.iii.
                                • C.2.d.i.
                                • C.4.b.
                                • C.4.b.i.
                                • C.4.b.ii.
                                • A.1.
                                • A.1.a.
                                • A.1.b.
                                • A.2.
                                • A.3.
                                • B.1.
                                • B.2.
                                • B.3.
                                • E.2.
                                • A.1.
                                1. Indiana University approved the merging of administrative (AD), professional (PR), other academic (OA), and counseling (CN) positions into one functional classification called professional. At the same time, a new paid time off benefits plan was authorized for this group of employees. Both actions were effective January 1, 1985.
                                  1. Enrollment in the new paid time off plan was optional for persons already employed by IU. Those who enrolled in the plan are identified as being in the PA Paid Time Off Plan.
                                  2. Enrollment in the PA Paid Time Off plan is required for persons appointed as of January 1, 1985.