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Frequently Asked Questions BAPTIST HEALTH | My PTO Time Rev. 9-2017 (Final) (v2) 1 | Page Welcome to the new Baptist Health | My PTO Time! We are excited about modernizing and standardizing our leave benefits and have prepared the following FAQs in the hope that they will answer most of the questions you may have as we transition from our existing leave benefit programs to the new Baptist Health | My PTO Time. As announced, Baptist Health | My PTO Time will include both paid time off (“PTO”) and an Extended Illness Bank (“EIB”) leave that will become standard across the entire system. The FAQs are divided into seven sections: I. General Questions II. Questions about the Conversion Process III. Questions about the new PTO Program IV. Questions about the new Extended Illness Bank (EIB) V. Miscellaneous Questions VI. Some Examples VII. Last Question Should you have questions not covered below, please contact your local HR representative. I. General Questions Q1. Why are we making this change? A) This change is being driven by our desire to (i) recognize and respond to the overwhelming requests by our employees to modernize, standardize and combine our existing PTO and sick time into one bank, (ii) improve our perceived competitiveness in the market to ensure that we can continue to recruit the best talent to serve our patients and (iii) improve the consistency, fairness and flexibility of managing our leave programs. Q2. What exactly is changing? A) Currently, Baptist Health employees participate in one of several leave programs depending on where they work. Effective with this change, and with limited exceptions, all Baptist Health employees will participate in the new PTO program, which will consist of one PTO bank to be used for all leaves (e.g., vacation, holidays, sick days, personal days, etc.) supported by an auxiliary Extended Illness Bank (EIB).

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Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 1 | P a g e

Welcome to the new Baptist Health | My PTO Time! We are excited about modernizing and

standardizing our leave benefits and have prepared the following FAQs in the hope that they will answer

most of the questions you may have as we transition from our existing leave benefit programs to the

new Baptist Health | My PTO Time. As announced, Baptist Health | My PTO Time will include both

paid time off (“PTO”) and an Extended Illness Bank (“EIB”) leave that will become standard across the

entire system. The FAQs are divided into seven sections:

I. General Questions

II. Questions about the Conversion Process

III. Questions about the new PTO Program

IV. Questions about the new Extended Illness Bank (EIB)

V. Miscellaneous Questions

VI. Some Examples

VII. Last Question

Should you have questions not covered below, please contact your local HR representative.

I. General Questions

Q1. Why are we making this change?

A) This change is being driven by our desire to (i) recognize and respond to the overwhelming

requests by our employees to modernize, standardize and combine our existing PTO and

sick time into one bank, (ii) improve our perceived competitiveness in the market to ensure

that we can continue to recruit the best talent to serve our patients and (iii) improve the

consistency, fairness and flexibility of managing our leave programs.

Q2. What exactly is changing?

A) Currently, Baptist Health employees participate in one of several leave programs depending

on where they work. Effective with this change, and with limited exceptions, all Baptist

Health employees will participate in the new PTO program, which will consist of one PTO

bank to be used for all leaves (e.g., vacation, holidays, sick days, personal days, etc.)

supported by an auxiliary Extended Illness Bank (EIB).

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 2 | P a g e

Q3. Which employees will participate in the new PTO program?

A) The new Baptist Health | My PTO Time program will apply to all employees within Baptist

Health with the exception of Baptist Health Medical Group providers and senior executives

who currently participate in the Allowed Time Off (“ATO”) program. Contract, PRN/POOL,

and temporary employees are also ineligible for such benefits.

Q4. For those locations that currently have sick day benefits, will these still exist?

A) Yes and no. Sick time as it currently exists will go away, and time has been added to the

new PTO bank that is intended to be used for future sick days. Any accrued time off

existing as of the date of converting to the new program, including PTO and/or sick days,

will be rolled into the new PTO bank and/or EIB. See conversion process below.

Q5. What are the benefits of having only one bank of time versus maintaining separate banks for

PTO and sick time?

A) As many of you have noted in various surveys, there are numerous benefits of having one

PTO bank from which to manage your leave rather than trying to manage both PTO and sick

time. First, we believe that this change provides employees increased flexibility to manage

their time that best meets their individualized needs. Employees who need to care for a

sick pet have the same opportunity to take off time as do employees who need to care for

a sick child. Second, we believe this change will promote better planning, creating an

increased commitment to fellow co-workers, as well as a decreased likelihood of perceived

sick time abuse or attempts to game the system. No longer will an employee feel the need

to “call-in sick” at the last minute for a would-be personal day merely to gain access to their

sick time (e.g., instead of using PTO, which they may need for an upcoming vacation). Now,

employees will be encouraged to plan ahead to take time off, which, in turn, should help

their co-workers by allowing their manager (or the employee) to find someone to cover for

the employee without the need for their co-workers to work “short” due to last minute

notices.

Q6. When will these changes go into effect?

A) These changes will go into effect with the launch of Workday®, our new Human Resources

information system. Workday is currently expected to go live at most locations at the end of

calendar year 2017. As this date becomes more clear, we will provide updated information as

to the timing of the conversion to the new Baptist Health | My PTO Time program.

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 3 | P a g e

B) Note: Baptist Health Floyd is anticipated to go live on Workday in FY2019 but will launch

Baptist Health | My PTO Time with the rest of Baptist Health.

II. Questions about the Conversion Process

Q7. What will happen to my existing accrued balances (PTO/sick/old EIB/etc.)?

A) Existing balances within your current time off banks will be transferred hour-for-hour into

either the new PTO bank or new EIB as part of the new program. Significantly, no

employees will lose any accrued time as part of this transition. Existing PTO banks will be

rolled into the new PTO bank, and existing vacation carry-over, sick days and EIBs will be

rolled into the new EIB. Further, employees will have a one-time opportunity to sell back

and/or convert existing accrued PTO and/or sick time prior to transitioning to the new

Baptist Health | My PTO Time program. Additional details provided below.

Q8. Will I have an opportunity to convert and/or sell back any of my old PTO/sick time before we

make this transition to the new Baptist Health | My PTO Time program?

A) Yes. All employees will have the opportunity to sell back and/or convert any accrued time,

consistent with existing rules prior to go-live with the new Baptist Health | My PTO Time.

Specifically, other than those employees working at Baptist Health Floyd or Baptist Health

Madisonville (who have their own programs), employees will be have the opportunity to

sell back PTO in October, consistent with existing programs, and will have one additional

(a/k/a “special”) opportunity to sell back PTO in November 2017 in anticipation of

transitioning to the new Baptist Health | My PTO Time program. Additionally, employees

will also have the opportunity at the same time to sell back and/or convert accrued sick

time to PTO.

Q9. How will the sell-back of accrued PTO be handled?

A) Both the sell-back of accrued PTO in October as well as the “special” PTO sell-back in

November will be done on a “dollar-for-dollar” basis consistent with existing sell-back rules,

e.g., such sell-backs are limited to a maximum of thirty (30) hours or one-half (½) of your

current PTO balance, whichever is less. Please note that there will not be any PTO sell-

back in January, and quarterly PTO sell-backs will resume in April.

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 4 | P a g e

Q10. How will the sell-back/conversion of accrued sick time be handled?

A) In lieu of the sell-back of sick time that traditionally occurs in January, employees will be

provided an opportunity to sell back accrued sick time in November as part of the one-time

“special” PTO sell-back process. Additionally, all employees, regardless of eligibility for

retirement, will have an opportunity to “convert” accrued sick time to PTO time as do

current retirees. Sick time will be sold and/or converted based on available balances and in

the following priority order:

Employees with sick time balances greater 560 are eligible to sell and/or convert

any accrued sick time hours greater than 560 hours at 40¢ on the dollar up to a

maximum of 80 hours.

Remaining sick time hours greater than 1,400 may be sold and/or converted at

20¢ on the dollar. Any remaining sick time hours may be sold and/or converted

at 10¢ on the dollar.

The normal eighty (80) hour maximum sell-back limit will not apply.

Sell-back requests will take priority over requests for conversion.

Eligible amounts will be verified by HR prior to sell-back or conversion.

Q11. When will the one-time “special” sell-back/conversion opportunity take place?

A) Employees will be able to sell back PTO in October in accordance with normal rules and

processes. Then, in November, all employees (with the exception of those working at

Baptist Health Floyd or Baptist Health Madisonville) will have an additional “special”

opportunity to sell back PTO, as well as a special opportunity to sell back and/or convert

accrued sick time prior to going live with Baptist Health | My PTO Time. This opportunity

will be conducted through an online survey tool that will be used to process employee

requests. The survey will open on Nov. 1 and will close at midnight Nov. 15. Anyone who

fails to complete the online survey request timely will not be able to participate in this sell-

back/conversion opportunity – late submissions and paper forms will not be accepted.

Following the close of the survey request period, HR and Payroll will work to verify and

process all requests.

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 5 | P a g e

Q12. When can I expect to see payment for my elected sell-back of PTO and/or sick time and/or

converted sick time added to my PTO bank?

A) We anticipate being able to process finalized PTO/sick time sell-back requests no later than

the week of Dec. 4 and for checks to be direct deposited into employee bank accounts

sometime between Dec. 8-12. Converted time should be reflected in the employee’s PTO

bank by Dec. 9 in advance of the Workday go-live.

Q13. How will the Thanksgiving, Christmas and New Year’s holidays be handled?

A) When considering sell-back options, employees will be expected to bear in mind the time

off they might need for these holidays. If an employee has insufficient accrued time in

his/her PTO bank, their request for time off during the holiday may be denied.

Q14. Can you provide an example of the sell-back / conversion process?

A) Assume Jill has 200 hours in her PTO bank and 900 hours in her sick bank as of Nov. 1.

During the survey request period, she elects to (i) retain all of her accrued PTO, (ii) sell one-

third (e.g., 300 hours) of her accrued sick hours and (iii) convert one-third (e.g., 300 hours)

of her accrued sick time hours to PTO. Her sick time will be sold / converted as follows:

80 hours of accrued sick time will be sold at 40¢ on the dollar (because her sick

bank balance exceeds 560 hours);

No hours are available to sold at 20¢ on the dollar (because her sick bank

balance is less 1,400 hours);

Note: If she had a total of 1,500 sick hours instead of 900 with which to begin, 20 hours of

these hours would have been available for sale at the higher rate of 20¢ on the dollar (e.g.,

1,500 hours less 80 hours sold at 40¢ on the dollar above = a balance of 1,420 hours … and

1,420 hours less 1,400 hours = 20 hours available for sell / conversion at 20¢ on the dollar).

220 hours will be sold at 10¢ on the dollar;

E.g., 300 hours less the 80 hours sold at 40¢ on the dollar above.

300 additional sick time hours will be converted at 10¢ on the dollar;

E.g., 30 hours will be added to employee’s PTO bank for a new total of 230 hours of accrued PTO.

Remaining balance (e.g., 300 hours) will be transferred to her new EIB.

Frequently Asked Questions

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Rev. 9-2017 (Final) (v2) 6 | P a g e

Q15. What happens to my accrued PTO and sick time hours if I elect not to sell or convert my accrued

time or elect to sell back or convert only some of my accrued time?

A) Any hours not sold and/or converted to PTO (for sick time) will be automatically

transferred hour-for-hour into the employee’s new PTO bank or EIB (as may be applicable).

o Note: If the accrued or remaining sick time hours exceed the applicable EIB cap (e.g., 560 hours), they will be automatically converted to PTO and/or cashed out pursuant to existing rules if the accrued PTO balance would exceed the new two (2) year maximum accrual amount.

B) The following illustrates the overall conversion process:

C) Please note that the maximum EIB hours permitted is 560 hours. However, employees who

have or are expected to have more than 560 hours in their sick bank or EIB at the time of

conversion to the new Baptist Health | My PTO Time will have all hours transferred to the

new EIB unless they make a different election as part of the one-time conversion

opportunity. Please note that such employees will not be able to earn any additional (e.g.,

new) EIB hours until their balance drops below the 560 hour cap for the new EIB.

Employees may also choose to converted sick hours to PTO hours as part of the one-time

conversion opportunity in order to reduce the number of hours to be transferred to their

EIB.

Frequently Asked Questions

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Rev. 9-2017 (Final) (v2) 7 | P a g e

III. Questions about the New PTO Program

Q16. How much PTO will I earn under the new Baptist Health | MY PTO Time?

A) Full-time employees (e.g., working 40 hours per week) will accrue PTO bi-weekly based on

hours worked and based on their applicable years of service as follows:

0 24 19240 hrs (front loaded)

+ 5.846 hours384

1 26 208 8.000 416

2 26 208 8.000 416

3 26 208 8.000 416

4 26 208 8.000 416

5 31 248 9.538 496

6 31 248 9.538 496

7 31 248 9.538 496

8 31 248 9.538 496

9 31 248 9.538 496

10 31 248 9.538 496

11 32 256 9.846 512

12 33 264 10.154 528

13 34 272 10.462 544

14 35 280 10.769 560

15 36 288 11.077 576

16 36 288 11.077 576

17 36 288 11.077 576

18 36 288 11.077 576

19 36 288 11.077 576

20 37 296 11.385 592

21 37 296 11.385 592

22 37 296 11.385 592

23 37 296 11.385 592

24 37 296 11.385 592

25 37 296 11.385 592

Years of Service (Current Accural based

on Seniority)

New PTO Accrual

(Total Days)(Based on 8 hour day)

New PTO Accrual

(Total Hours)(Based on 1.0 FTE)

New PTO Accrual

(Bi-Weekly Accrual)(Hours per Pay based on 1.0

FTE)

New PTO Maximum

Accrual

(Hours)(2 Years Max)

Frequently Asked Questions

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Rev. 9-2017 (Final) (v2) 8 | P a g e

Please note that actual PTO accrued will be based on actual service hours recognized for purposes of accruing My PTO Time (e.g., generally worked hours plus approved paid time off hours). For example, a .5 FTE who works 20 hours in a week (e.g. 40 hours per pay period) will accrue half of the amounts listed above. Further, the following employees are ineligible to participate in the new PTO/EIB leave benefit program: (i) PRN/POOL employees, (ii) temporary employees, (iii) agency/contract employees and (iv) ATO providers and senior executives who participate in a separate ATO leave benefit program. Finally, under the new program, you must be actively employed for the entire bi-weekly pay period in order to accrue PTO for that period. Employees who terminate employment for any reason prior to the effective close of the applicable bi-weekly pay period will not earn any PTO for that partial week. In short, you must be actively employed for the full pay period in order to have an accrual for that pay period. If you leave for any reason in the middle of the pay period, you would not accrue any PTO for that “partial” period.

Q17. How does this compare to what other companies provide? Is this market competitive?

A) Based on recent market data, the new Baptist Health | My PTO Time is still above the

leave benefits provided by most other organization in our markets (indeed, by several days

– see, e.g., chart below). So, yes, we believe that our leave benefits remain very

competitive, both in terms of the amount of time off benefits provided as well as

continuing to allow carry-over and sell-backs, which have become increasingly rare in

today’s market place.

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 9 | P a g e

Q18. How is PTO accrued by new hires? What does it mean to be “front-loaded”?

A) In response to concerns raised by new-hire employees, under the new Baptist Health | My

PTO Time program, we will “front-load” five (5) days of PTO (e.g., 40 hours for full-time

employees regularly scheduled to work 40 hours per week (e.g., 1.0 FTE) and prorated for

employees working less than full time, e.g., a .4 FTE regularly scheduled to work 16 hours

per week would have 16 hours of PTO front-loaded) upon hire. This means that newly

hired employees will have immediate access to this time for planned vacations and

upcoming holidays. They will accrue the remaining 152 hours at the bi-weekly rate of 5.846

hours per pay period (or such lower amount based on the actual amount of service hours

recognized for purposes of accruing time, e.g., hours worked, plus approved paid time off).

As a result of this change, there will also no longer be a need to allow salary exempt staff to

go into arrears. Thus, negative PTO balances will no longer be allowed once we go live with

the new PTO program. Employees who exceed their accrued balance will go unpaid for any

approved time off that cannot be covered by accrued time.

Q19. How does the new PTO accrual work for those who were hired prior to go-live but still have less

than one year of service at the time of implementing the new Baptist Health | My PTO Time?

A) Employees with less than one year of service at the time of go-live will begin to accrue PTO

at the new accrual rate, and they will receive a pro-rated amount of “front-loaded” time

that will be added to their new PTO bank. E.g., if a full-time employee was hired five (5)

months before going live with Baptist Health | My PTO Time, Baptist Health will add 23.3

hours of PTO (e.g., a prorated 7/12’s of 40 hours) to their bank and they will begin to

accrue PTO at the new accrual rate as of the next pay period (e.g., 5.846 hours per pay

period).

Q20. Will we still be allowed to carry over unused PTO year to year?

A) Yes. Employees will continue to be allowed to carry over “accrued but unused” PTO up to a

maximum of two (2) years’ worth of their scheduled PTO accrual. See chart above.

Q21. Are there any limits on how much PTO I can accrue?

A) Yes. The maximum amount employees will be allowed to accrue continues to be limited to

a maximum of two (2) years’ worth of PTO accrual. However, because we have increased

the amount of PTO accrued by employees, the maximum limit has actually increased (e.g.,

the maximum PTO accrual for full-time employees with at least five years of service has

Frequently Asked Questions

BAPTIST HEALTH | My PTO Time

Rev. 9-2017 (Final) (v2) 10 | P a g e

increased from 384 hours to a new maximum of 496 hours based on the new accrual

schedule).

Q22. Can I still sell back my accrued PTO?

A) Yes. Under the new program, “accrued but unused” PTO can be sold back at 75¢ on the

dollar up to four times per year, consistent with the current PTO sell-back schedule (e.g., in

January, April, July and October), subject to the following rules:

In order to be eligible to participate in the sell-back, you must have / maintain a

minimum balance of 40 hours in your PTO bank.

The minimum sell-back is eight (8) hours, and the maximum sell-back is limited to

thirty (30) PTO hours per quarter or one-half (½) of your balance over 40 hours

(whichever is less) (which mirrors the current rule).

Please note that there will no longer be any automatic “over-the-max” cash-out of

excess PTO — excess PTO over the maximum will now automatically spill over into

an employee’s Extended Illness Bank up to the maximum of 560 hours. Any hours

above this cap will be forfeited. However, as part of the conversion, employees

who have greater than 560 sick hours or EIB hours will be allowed to transfer all

hours as part of the initial transfer. Employees will not be able to earn additional

(e.g., new) EIB hours until their balances drop below the 560 hour maximum.

Q23. Why will I only be allowed to sell back PTO at 75¢ on the dollar?

A) Baptist Health recognizes that PTO sell-back is a valued feature of our current leave

program for many employees, and it helps to serve both the needs of the company and

employees alike. However, we also recognized that this is a very unique practice in today’s

market place. Further, we believe that encouraging employees to sell back PTO rather than

use it for its intended purposes may actually hurt our employees when they choose to work

and not take time off to rest and rejuvenate. So, we believe this policy strikes an

appropriate balance between encouraging employees to use their time off while continuing

to provide other employees an opportunity to sell back their accrued PTO should they so

choose.

Frequently Asked Questions

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Rev. 9-2017 (Final) (v2) 11 | P a g e

Q24. What happens to my accrued PTO at termination under the new PTO program?

A) Accrued but unused PTO will be paid out as a lump sum at termination (including at

retirement) based on the employee’s recognized years of service at the time of separation

(e.g., the employee’s last day worked) per the following schedule:

Q25. How does this affect my current “accrued but unused” PTO? Does this mean my unused PTO will

be worth “less,” or will this accrued time be “grandfathered” under the old payout rules?

A) The new termination payout schedule will apply to all “accrued but unused” PTO hours as

of the time we go live with the new Baptist Health | My PTO Time program. Existing

accrued time will not be grandfathered for purposes of payout at termination. This tiered

payout schedule has been designed to promote employee retention and to reward our

long-service employees. Additionally, this schedule also takes into account that,

previously, part of an employee’s time off benefits had no value at termination (e.g.,

“accrued but unused” sick time), whereas now such time will have value as PTO. We

believe most employees will be willing to make this tradeoff for the opportunity to have

more PTO and increased flexibility in how they use and manage their time off benefits.

For many of our employees (those with 15 or more years of service), this change will have

no impact, but we recognize that it could adversely impact those who currently fall below

this level. However, we believe everyone has the ability to reach this level (e.g., it is within

each employee’s personal control to manage their situation so that they are not adversely

affected), and it is our sincere hope that all employees will choose to remain with us for a

long time so that, when they do retire or otherwise decide to leave the organization, their

accrued PTO benefits will be paid out to them at the 100 percent level. Moreover, we have

found that the majority of employees currently use nearly all of their accrued PTO (e.g.,

Years of Services (As of last day worked)

Payout

%

Less than 2 years of service 0%

2 Yrs of Service up to 5 Yrs of Service 50%

5 Yrs of Service up to 7 Yrs of Service 60%

7 Yrs of Service up to 10 Yrs of Service 70%

10 Yrs of Service up to 12 Yrs of Service 80%

12 Yrs of Service up to 15 Yrs of Service 90%

15 or more Years of Service 100%

Frequently Asked Questions

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Rev. 9-2017 (Final) (v2) 12 | P a g e

approximately 96 percent of all PTO accrued is used). So, one way to think about this

change is that any old “accrued but unused” PTO is used “first” to cover your next PTO

leave (e.g., dollar-for-dollar or at 100 percent) and that it is the accumulation of your “new”

PTO hours that will be subject to the “new” termination payout schedule (e.g., applying a

first in, first out (“FIFO”) rule). However, to be clear, this termination payout schedule will

apply to all hours in your PTO bank as of the date the new program goes into effect. There

will not be any grandfathering of existing accrued PTO, as it will all move to the new PTO

bank as previously noted.

Q26. When will this new termination payout schedule go into effect?

A) All of these changes, including the new termination payout schedule, will go into effect

with the launch of Workday, our new Human Resources information system. Workday is

currently expected to go live at the end of calendar year 2017.

Q27. What happens to my PTO if I convert from regular employment (e.g., FT/PT status) to PRN

status?

A) Consistent with existing practice, accrued PTO would be paid out to those employees who

elect to convert from regular to PRN/POOL status. Accrued PTO will be cashed out based

on their then accumulated years of service with the company in accordance with the new

PTO termination payout schedule, as referenced above.

Q28. If I use my PTO for an unscheduled absence, will I still get a point for the absence?

A) A. Yes, all unscheduled absence will be subject to our Attendance policy.

Frequently Asked Questions

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IV. Questions about the New Extended Illness Bank (EIB)

Q29. How do I accrue time to my Extended Illness Bank? How do I use the time accumulated in my

EIB?

A) The Extended Illness Bank basically replaces an employee’s former sick bank in two ways:

First, the EIB will serve as the bank to which former sick hours are converted on an

hour-for-hour basis so that employees will not lose any of their accrued but unused

sick time hours.

Second, while the new PTO program has been enhanced to provide additional time

that can be used to cover routine illnesses (a/k/a sick days), the EIB benefit

provides employees a vehicle for accruing additional time that can be used for

extended illnesses or injuries.

Specifically, employees who manage their PTO well and do not use their

full PTO accrual will have this time “spill over” into their EIB rather than

lose it, as many employees experience in other companies.

This provides employees the opportunity to build a bank of time that can

be used for planned or unplanned absences due to injury, illness, or other

medical event.

In short, an employee’s EIB can serve as a “quasi” short-term disability (“STD”) plan

without the need to independently purchase STD coverage through Baptist Health’s

voluntary STD plan.

EIB hours are available to cover leaves falling under the Family and Medical Leave Act

(“FMLA”) and other qualifying illnesses after five (5) working days/seven (7) calendar

days.

This leave includes any approved Family and Medical Leave Act (FMLA)

leave due to the employee’s own personal injury or illnesses, as well as can

be used to cover time to provide care for an “eligible child” (e.g., any

biological, adopted or foster child, a stepchild, a legal ward, or a child of a

person standing in loco partentis, who is either (i) under the age of 18 or (ii)

is 18 years of age or older who is incapable of self-care because of a mental

or physical disability”).

Frequently Asked Questions

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Regular PTO must still be used to cover initial absence period (e.g., any

absence occurring within the first five (5) working days/seven (7) calendar

days) as well as any short-term, intermittent leaves covered by FMLA.

The following diagram illustrates how the new PTO and EIB work together:

Q30. Can EIB benefits be used to cover intermittent leaves under the FMLA?

A) No. EIBs can only be used to cover “extended” absences lasting more than five work

days/seven calendar days and are not intended to cover short-term, intermittent leaves.

Employees must use PTO to cover intermittent leaves.

Q31. Are there any limits on how much EIB time I can accrue?

A) The maximum amount of EIB time that can be accrued in your EIB is 560 hours. If an

employee’s EIB exceeds 560 hours, any time above this limit will be forfeited. However, as

part of the conversion, employees who have greater than 560 sick hours or existing EIB

hours will be allowed to transfer all hours as part of the initial transfer. Employees will

not be able to earn additional (e.g., new) EIB hours until their balances drop below the 560

hour maximum.

Q32. What happens if my current sick time balance exceeds the maximum 560 hours allowed in the

new EIB?

A) Employees will have the chance to participate in a one-time conversion opportunity

whereby they can designate how they would like to handle their accrued sick time, which

includes the option to either cash out and/or convert such time to PTO.

Frequently Asked Questions

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Q33. Can I sell back any of my accrued EIB time?

A) No. EIB time does not have any cash value and, thus, cannot be sold or cashed out.

However, as noted, employees will have a one-time opportunity to convert and/or sell back

part of their accrued sick bank prior to go-live as part of the conversion from the old leave

programs to the new Baptist Health | My PTO Time program.

Q34. What happens to my accrued EIB time at termination?

A) Because EIB hours have no cash value, they are forfeited and are not paid out at the time of

termination or retirement.

Q35. Will I still be able to “extend” the effective date of my retirement using either PTO and/or EIB?

A) No. Under the new Baptist Health | My PTO Time program, any “accrued but unused” PTO

is paid out as part of the next regularly scheduled pay date following an employee’s

separation from employment (whether due to resignation, retirement or termination) in

accordance with the new PTO termination payout schedule (see above) and cannot be used

to “extend” one’s retirement date. Similarly, because EIB has no cash value, such hours

cannot be used to extend one’s retirement date.

V. Miscellaneous Questions

Q36. Will I still be required to use PTO when my office / medical practice is not open during the

holidays?

A) No. In response to employee requests not to be “forced” to use PTO when their office or

practice is closed on a Baptist Health recognized holiday, the PTO leave policy has been

revised to provide hourly employees the option to either use PTO or to take the time off

unpaid. This change only applies to holidays for which the entire department, office or

practice is closed. E.g., if the employee’s office is closed for Thanksgiving, hourly

employees working within that office can chose to take the time off paid (e.g., with PTO) or

unpaid. Given that employees will now have a larger PTO bank that can be used for

vacations, sick time and holidays, it is our hope that most will choose to continue to use

PTO in order to receive a full paycheck for that week. Employees working in any

department, office or practice that is scheduled to be open on a holiday (e.g., a patient care

unit) will be continue to be required to use PTO to cover holidays and to fill their FTE status,

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consistent with existing rules. Please note that salaried exempt employees will still be

expected to use PTO in order to account for their full salary for such weeks.

Q37. Will we be able to donate PTO / EIB to another employee in need under the new PTO program?

A) No. This feature has not been built into the new Baptist Health | My PTO Time program

but may be considered in the future.

Q38. How will these changes affect how employees on FMLA are paid?

A) PTO balances will be used to cover intermittent FMLA occurrences and continuous leaves

of less than five (5) working days (or seven (7) calendar days). After the fifth day of any

continuous leave of absences, time will be deducted from the employee’s EIB (if available).

Upon exhaustion of an accrued EIB time, remaining leave time will be deducted from the

employee’s accrued but unused PTO balance. Should both the EIB and PTO banks be

exhausted, employees will be converted to an unpaid status.

Q39. How will these changes affect employees who qualify for Short-term Disability (STD) benefits?

A) To apply for STD benefits, an employee must fulfill the minimum waiting period of seven (7)

calendar days before becoming eligible. While PTO must be used to cover the initial

waiting period, exhaustion of any additional accrued time off (e.g., PTO and/or EIB) will no

longer be required in order to receive STD benefit coverage (vs. previous STD rules, which

required exhaustion of all accrued sick time prior to accessing STD benefits).

VI. Some Examples…

Q40. Can you provide an example of how all of this works in real life?

A) Yes. Here is a basic example used in the My PTO Conversion / sell-back form:

Assume an employee has 200 hours in their PTO bank and 1,500 hours in their sick bank.

Assume further that this employee elects to (i) sell zero PTO hours, (ii) sell 300 hours of their sick

hours and (iii) convert 300 of their sick hours to PTO. All of their accrued PTO will be transferred

to the new PTO bank, and their accrued sick time will be sold/converted/transferred as follows:

80 hours will be sold at 40 cents on the dollar (because sick bank > 560 hours).

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20 hours will be sold at 20 cents on the dollar (e.g., 1,500 hours - 80 hours = 1,420 balance and 1,420 hours minus 1,400 hours = 20 hours available for sell/conversion at 20 cents on the dollar).

200 hours will be sold at 10 cents on the dollar (e.g., 300 hours less 80 hours sold at 40 cents on the dollar and less 20 hours sold at 20 cents on the dollar).

300 hours will be converted at 10 cents on the dollar (e.g., 30 hours will be added to employee's PTO bank).

The balance (900 hours) will be transferred to the employee’s new EIB.

Please Note: Sick time will be sold and/or converted based on verified available balances and in

the following priority order:

The maximum PTO hours eligible for sell-back is thirty (30) hours or 1/2 of your current PTO balance (whichever is less).

Sick time balances > 560 hours will be sold/converted at 40 cents on the dollar up to a maximum of 80 hours.

Remaining sick time hours greater than 1,400 will be sold/converted at 20 cents on the dollar.

Any remaining sick time hours will be sold converted at 10 cents on the dollar.

Sell-backs will take priority over conversions.

Eligible amounts will be verified by HR/Payroll prior to processing a special election request.

B) We will also look at three more examples on the following pages showing how this works

for employees across the employment spectrum, e.g., (i) “Newbie Ned” (who was just

hired), (ii) “Typical Tom” (who has the same “average” bank of time that most Baptist

Health employees have), and (iii) “Saver Sue” (who works to save a majority of her PTO and

sick time for a “rainy” day).

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VII. Last Question …

Q41. What if I have more questions?

A) Please consult your local HR representative.