Leave Bank Policy
March 09, 2008
The Leave Bank policy allows employees to donate accumulated paid time off (PTO) for use by other employees whose sick and other paid leave has been exhausted. It documents the procedures for granting of leave bank days, administrative procedures, eligibility of employees, donation of leave, and general rules. The company may, at any time, discontinue the leave bank. All days remaining in the leave bank at the time of the discontinuation of this policy will be used until exhausted for approved applicants.
Subject: Leave Bank
Example of: Standard Policy
The leave bank allows employees to donate accumulated paid time off (PTO) for use by other employees whose sick and other paid leave has been exhausted. All employees are encouraged to enroll in short-term and long-term disability insurance benefits offered to them. This leave bank is available to close gaps in such benefits.
Granting of Leave Bank Days
Subject to the eligibility requirements, an employee, upon approval of the HR department, may receive from the leave bank when all other leave is used, up to ____ days of paid leave. Such leave will not cover any time for which short-term or long-term disability benefits are received and is granted in one day increments (except when the individual is eligible for intermittent leave under FMLA). Employees may apply for leave (1) when all of their available paid leave is exhausted, and (2) when additional leave is required for one of the following reasons:
• Serious illness or injury of the employee or the employee’s spouse;
• Serious illness or injury of the employee’s dependent, child, or parent; and
• An extraordinary circumstance that the HR Department deems appropriate.
“Serious illness or injury” uses the definition found in the Family and Medical Leave Act. It can also include a disability as defined in the Americans with Disabilities Act.
Requests for donated leave must include the reason for the request and the anticipated leave time. Appropriate documentation from a licensed healthcare provider is to be submitted.
Each request for use of donated leave will be evaluated. Various factors, including the following, will be considered:
• Whether the reason for the leave is covered by the policy;
• Whether the individual has enrolled in the leave bank;
• The availability of short- or long-term benefits or similar benefits; and
• The availability of leave within the crisis leave pool.
Possible reasons to deny request for crisis leave:
• The employee does not meet leave criteria;
• The employee appears to have managed leave ineffectively (has used leave as accrued without medical certification);
• The employee’s request is unwarranted by circumstances;
• A lack of proper medical documentation; or
• An insufficient balance in the leave bank.
The HR Department will maintain records regarding the leave bank, including deductions, contributions, usage, and other transactions and will schedule and conduct open enrollment periods. The general forms for leave will be used for applying for Leave Bank time. The box for Leave Bank time is to be checked on the form.
The leave bank will be activated when at least __ days are donated.
When two or more applications are pending simultaneously and the bank does not contain sufficient days to grant the total amount of leave that the HR Department approves for all applicants, the HR Department will ask all employees for more days to be donated to the bank. Alternatively, the days available may be prorated among the applicants by a method selected by the HR Department. The HR Department may seek days to be donated when it is judged necessary.
To request donated leave:
• Employee completes the request for banked leave and gives to supervisor.
• Supervisor verifies with payroll that all paid leave will soon be exhausted. Supervisor writes his or her recommendations and sends request to HR Department for review.
• HR approves or denies request and forwards result to employee with a copy to supervisor.
• If approved, supervisor works with payroll to credit employee’s leave balance with the donated leave.
To donate leave:
• Employee completes donation of leave form and gives to supervisor.
• Supervisor with payroll verifies that donating employee has sufficient leave balance and transfers leave from individual to leave bank account.
Eligibility for Leave Bank
Employment eligibility-a full-time or part-time regular employee employed for ______.
Preference may be given to employees who have contributed PTO to the leave bank.
Benefit eligibility-Employees on approved leave of absence for reasons such as FMLA, personal illness, family illness, accident or injury.
Employees will not receive leave bank benefits while receiving any other compensation for lost wages. If employees have a claim against a third party, a condition of leave may be to donate days back at a later time.
The following events are generally not covered by the leave bank:
• Elective procedures
• An illness or injury incurred while committing an illegal act
• Treatment required to avoid incarceration
• Illness or injury resulting from uniformed service
• Other procedures not covered under the healthcare plan (whether or not the individual is enrolled in that plan)
• Other procedures determined by the HR Department to be inappropriate use of the leave bank
These examples are not exhaustive. These policies may be varied in order to comply with applicable law.
Donation of Leave
A donor may contribute no more than 3 days of PTO in a calendar year, and donation may not exceed 50 percent of PTO accrued. Employees may not donate leave that would otherwise be lost under applicable company policy. The company will establish annual deadlines for leave donations to maintain the integrity of the program.
Donations will be made in full-day increments (8 hours).
Donations will be accepted during open enrollment periods conducted annually or at other times set by the HR Department.
An employee who completes the first year of eligible service at a point other than during an open enrollment period and who has an accumulated leave balance will have 30 calendar days after the first day of eligibility to donate to the leave bank. It is the responsibility of the employee to determine the time he or she becomes eligible to donate to the leave bank.
The general forms for leave will be used for applying for leave bank time. The box for leave bank time is to be checked on the form. Participation in the leave bank is voluntary.
With the approval of the HR Department, leave bank contributions for the benefit of a specific individual will be accepted. However, once leave is donated it remains in the leave bank even if not used by the specific individual. Donations for a specific position or illness are not accepted.
Medical information will be maintained in confidence in accordance with applicable law.
The company will seek to administer this policy so that leave donated by employees will not be taxable income to the employee donating the time and will only be taxable to the employee using the donated time. However, the company does not guarantee this tax result.
Abuse of leave from the leave bank includes, but is not limited, to the following:
• A fraudulent medical certification
• Working elsewhere while on leave
• Violation of general leave policies
Employees who abuse leave bank benefits are subject to discipline that may include, but is not limited to:
• Repayment of leave days
• Denial of pay increase
The company may, at any time, discontinue the leave bank. All days remaining in the leave bank at the time of the discontinuation of this policy will be used until exhausted for approved applicants.