Policy for PTO Cash Withdrawal
Department: Hospital-Wide
Purpose:
The purpose of the policy for PTO cash withdrawal is to assist employees facing an extreme hardship, by allowing them to cash out a portion of their available PTO hours.
1. From time to time, employees may have the opportunity to receive cash from their PTO bank. This opportunity will only be available during an unforeseeable emergency* and must have the approval of the hospital CEO.
* An unforeseen emergency is defined by the IRS as “severe financial hardship to the participant resulting from a sudden and unexpected illness or accident of the participants or of the participants dependent, loss of the participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant”. Examples of an unforeseeable emergency would be loss of home due to natural disaster, or a catastrophic illness or accident experienced by the employee or dependent that has created a financial hardship.
2. When withdrawing PTO hours, employees must maintain a minimum balance of forty (40) hours in their PTO bank.
3. PTO hours, paid out in cash equivalent, will be deducted from the employee’s individual “bank” of accrued PTO hours during the next regular pay period. These hours will be paid as dollars based on the current compensation rate, expressed as an hourly straight-time rate excluding any shift differential.
Date: August 13, 2002
Revised: February 8, 2005