Changes to ETO accruals coming
A few changes are coming to how some employees will accrue their ETO hours.
Effective Dec. 20, for the first pay period in 2021, all non-exempt (hourly) regular status employees will accrue ETO based on all hours worked with no maximum cap per pay period. Additionally, the annual maximum ETO bank accrual and the ETO accrual per qualified hour worked have both increased. Refer to Earned Time Off Policy 400-CORP-HR-0110 for details.
What has changed?
OLD: The previous practice did not recognize those employees working above their 0.9 FTE with additional accruals that pay period. That meant a 0.9 FTE who worked 72 hours would accrue the same amount of ETO as another 0.9 FTE with the same status who worked 80 hours.
NEW: All non-exempt regular status employees, regardless of their FTE, will accrue ETO based on their actual hours worked per pay period with no maximum per pay period. For example, if you worked 82 hours for the pay period, you will accrue ETO on the 80 hours, as well as on the additional two hours of overtime.
OLD: The previous practice allowed for non-exempt employees who work more than 2,080 hours for the calendar year to be eligible for an additional ETO accrual after year-end on the first 120 hours of worked time over 2,080 hours.
NEW: Since there is no maximum accrual per pay period, this practice will discontinue.
Why the change?
The process changed to better align ETO accruals with actual hours worked for regular status employees. The increase in the ETO accrual per qualified hour, as well as the increase in the maximum ETO bank accrual was to ensure that employees categorized as 0.9 FTE (72 hours) would remain static with this change while recognizing employees who work and use ETO at their budgeted FTE status.
What didn’t change?
- Flexible/on-call employees are still not eligible to accrue or use ETO.
- The maximum ETO bank is still calculated at 2,080 hours (1.0 FTE) times the accrual amount to get an average annual accrual times 1.5.
- ETO utilization is still managed at the department/unit level.
What if I’m an exempt employee?
There is no change in practice to ETO accruals per pay period. Exempt employees will still accrue ETO on up to 80 hours per pay period. However, the ETO accrued per qualified hour and the maximum ETO bank accrual are increasing. ETO for eligible staff is accrued based upon multiplying the “ETO Accrued per Qualified Hour” times the number of qualified hours per pay period. An eligible employee progresses to the next level of accrual after completing the required full years of service as defined below:
|Completed years of continuous service||ETO accrued per qualified hour||Maximum ETO bank accrual|
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