> For the complete documentation index, see [llms.txt](https://docs.arborconnect.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arborconnect.com/understanding-expectations/pto.md).

# Paid Time Off (PTO) and PTO Buyout

## PTO policy

Full-time and part-time team members accrue paid time off (PTO) throughout the calendar year and may use that time for leave. Hourly team members may choose to receive money in lieu of PTO by exercising the PTO Buyout benefit one time during each calendar year for up to 40 hours. PRN team members do not earn PTO leave benefits.

Recognized holidays:

* New Years' Day
* Martin Luther King Day
* Memorial Day
* Independence Day
* Labor Day
* Thanksgiving Day
* Christmas Day

## How PTO is accrued

* PTO accrues on all pay periods from January 1 through December 31 and is earned on regular work hours only. (PTO does not accrue on any hours used as PTO, holiday time or overtime).
* There is no separate allocation of time for paid sick leave outside of the company's short term disability plans.
* A team member who does not use all their PTO may carry over up to eighty (80) hours of PTO from one year to the next. On December 31, any accrued PTO hours over 80 will be forfeited.
* Team members should refer to their paycheck stub or the Team Member Self Service function in the payroll system for the current balance of accrued PTO time.

The accrual rate for PTO is linked to a team member's length of service (tenure). The accrual rate will be as follows:

| Tenure in Months              | Accrual Rate | Maximum Hours Accrual Per Year |
| ----------------------------- | ------------ | ------------------------------ |
| 0–35 (up to 3 years)          | 0.0616       | 120 hours (15 days)            |
| 36–59 (3 years up to 5 years) | 0.0821       | 160 hours (20 days)            |
| 60+ (5+ years)                | 0.1026       | 200 hours (25 days)            |

**Note for New Jersey Employees:** The New Jersey Paid Sick Leave time is included and exceed by this accrual process.

## PTO process

* A team member who wishes to take PTO will submit a PTO Request to their Department Head at least four weeks in advance of the desired time when possible. The Department Head will review and determine approval of each request before a team member can take PTO.
* All approved leave requests will be forwarded to the Business Office Director to ensure team members are paid for leave taken.
* Any team member requesting time off will be required to use accrued PTO hours if they have any PTO hours in the bank. Team members cannot request "unpaid" time off if they have accrued PTO hours.
* Non-exempt (hourly) team members may elect to receive up to 40 hours of PTO in lieu of actually taking time off. A team member who wishes to exercise this benefit will submit a Payment in Lieu of PTO request to the Business Office Director. A team member must have an amount of accrued PTO equal to or greater than the requested payout. This benefit can be exercised one time per year and is not available to exempt (salaried) team members.
* The Business Office Director will document when each team member exercises the Payment in Lieu of PTO benefit during the calendar year.
* Team members who are terminated or who resign may request a payout of accrued PTO benefits. Any request for payout of PTO upon termination of employment will be reviewed to confirm that the team member's termination from employment was not for cause. Team members who have been terminated for cause will not receive a payout of PTO benefits. Termination for cause generally refers to any behaviors or actions that put residents, team member, or the community at risk. Such behaviors or actions include but are not limited to resident abuse or neglect, harassment, falsification of documents or theft.
* Team members will not be eligible for payout of unused PTO hours if they do not provide the required notice period. For non-exempt (hourly) team members, the notice period is two weeks. For exempt (salaried) team members, the notice period is four weeks. If there are call-outs during this notice period, the PTO will not be paid out. If there is a preplanned vacation during the notice period, the notice period must be extended to ensure that all time during the notice period is worked.
* Following resignation, the maximum payout of unused PTO is 80 hours for all team members.
* When a team member transfers from one Arbor community to another, the community that the team member is transferring from will be responsible for paying out the unused PTO.
* Re-hires will be offered an opportunity to bridge prior service time for the purpose of PTO calculations. When a team member is re-hired within a year of their prior departure, an adjusted service date will be applied in the payroll system so that they receive credit for previous tenure.


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