Paid Time Off (PTO) & Holiday Policy Updates- FAQs

HR 4002- Holidays, Modified Operations, and Essential Services Days

https://muhealth.policytech.com/dotNet/documents/?docid=76770&app=pt&source=browse 

General Questions 

1. What is changing with Holidays and PTO?

   • Beginning Jan 1, 2027, MU Health Care is modernizing its approach to paid time off by providing additional PTO accruals throughout the year in place of most paid holidays. Additionally, the maximum PTO balance employees may carry will be adjusted to 1.5 times their total annual accrual. Veterans Day will remain a paid holiday for benefit-eligible employees.  

2. Why is this changing? 

   • Benefits changes are one part of a broader organizational redesign to strengthen the long-term financial sustainability of MU Health care. MU Health Care operates continuously to support patient care, even on holidays. The updated approach supports MU Health Care’s broader strategy to increase access to care across our ambulatory network while aligning with how many peer health systems structure clinic operations and holiday schedules.

3. Does this affect all employees?

   • This change applies to all MU Health Care benefit-eligible employees (30+ working hours). Employees who are not benefit-eligible do not receive PTO or holidays and are not impacted. 

4. What will happen to my current PTO balance? 
   • MU Health Care employees’ PTO balance as of December 23, 2026, will carry over to January 1, 2027.  MU Health Care employees will not lose any previously accrued PTO with the change. 
   • Accrued hours in excess of the updated maximums will be moved to a PTO overage bank on January 1, 2027. The excess PTO bank must be exhausted before new accruals can be earned. 
   • If you do not have more than the updated maximums, there will be no changes to your current PTO balance. 
   • You can review your current PTO balance by following  these instructions.
5. Why is Veterans Day kept separate while other holidays are combined into the PTO bank? 
   • Veterans Day is maintained as a separate paid holiday for legal and policy reasons. All other holidays are being consolidated into the PTO bank as part of this change. 
6. If I participate in the PTO Cash-In Program,  and I have PTO in the overage bank, will I still be able to accrue PTO if I do not take time off? 
   • No. Hours in the PTO Overage Bank will need to be exhausted before you can begin accruing PTO again. 
   • Additional information on the Leave Cash-In Program is available here. 
7. When will I get the additional time added to my available PTO bank?
   • Effective 12/27/2026, the rate at which you accrue PTO will increase. There will not be a lump sum added to available PTO.  
8. What will my new PTO accrual rates be? 
   • Updated accrual rates and maximum PTO balances for MU Health Care employees are outlined in CRR 340.025. Effective 12/27/2026, the rates will be as follows: 
   •  

   • Type of Position	Years of Service*	Per Year	Hours per Week	Hours per Pay Period	Max Hours Balance**
     HOSPT Hourly, Non-exempt	Up to five years	24 days	3.69 hours	7.38 hours	288 hours
     	Five up to 15 years	29 days	4.46 hours	8.92 hours	348 hours
     	Over 15 years	34 days	5.23 hours	10.46 hours	408 hours
     HOSPT Monthly, exempt and REGISTERED NURSES	Up to five years	29 days	4.46 hours	Based on the # of Mondays in the month	348 hours
     	Five years and over	34 days	5.23 hours		408 hours

   •  
9. Will I be required to work on Holidays?

   • MU Health Care has designated Holidays as either “Essential Services Days” or “Modified Operations Days.” Whether you are scheduled and required to work will depend on your job title and function and what department or unit you work in. Department leadership is responsible for determining the staffing necessary to maintain the designated level of operations. 

     • On Essential Services Days, MU Health Care will maintain only essential clinical services and support functions necessary to provide inpatient, emergent and urgent care services. Outpatient clinics and other non-essential services are generally closed. 

       • Unless otherwise instructed, exempt employees will not be expected to work and utilize PTO.  

     • On Modified Operations Days, full clinical services and necessary support services will be open including outpatient clinics, laboratory services, pharmacy, imaging, surgical services, cath lab, interventional radiology lab, endoscopies, and therapy services.  

       • Unless otherwise instructed, exempt employees are expected work on Modified Operations Days. 

10. Can I still take time off on former holidays? 

    • ​​​​​​​Yes. Employees may continue to use PTO on any day, including days that were previously observed as paid holidays, subject to standard scheduling and manager approval processes. ​​​​​​​

11. Which Holidays are Essential Services Days, and which Holidays are Modified Operations days? 

    • Essential Services Days

      • New Year's Day

      • Martin Luther King Jr. Day

      • Memorial Day

      • Independence Day

      • Labor Day

      • Thanksgiving Day

      • Friday following Thanksgiving Day

      • Christmas Day

    • Modified Operations Day

      • Juneteenth

      • Veterans Day

12. How will I know if my department, unit or location is open and/or will otherwise be operational on Essential Services and/or Modified Operations Days? 

    • Department leadership is responsible for determining staffing needs and communicating whether employees are scheduled or otherwise required to work on Essential Services and/or Modified Operations Days.  

    • Some departments, units, or locations may remain open and operational on Essential Services and Modified Operations Days but may operate with reduced staffing levels based on the applicable operational needs. You should work with your leader if they have questions about their department’s expectations. 

13. If clinics close early the day before an Essential Services or Modified Operations Day, will employees be required to use PTO, or will they have the option to work?

    • This would be treated the same as any other non-Modified Operations or Essential Services day where employees are sent home due to decreases volumes or closures. Employees would have an option to take PTO, take the time unpaid, or work with permission from leadership. Additional information is available in MUHC HR-5001: Operational Closures or Staff Reductions.

14. For those employees that have "sick" time still left, is that going away or counted against the max accrual limit?

    • No. Accrued sick time will not be counted towards the maximum PTO you may have accrued. 

15. Will I incur an attendance occurrence if I do not have enough PTO to cover a MOES day?

    • No, it will not give you an occurrence.

16. Are all hours worked on a Modified Operations or Essential Services day eligible for the premium pay rate, or is there a cap at 8 hours?

    • All hours that an employee works between 12:00am and 11:59pm on a Modified Operations or Essential Services Day will be eligible for premium pay. There is no cap at 8 hours. 

17. If I have supervisor approval, could I work from home on Modified Operations or Essential Services days?

    • These updates do not specifically impact remote work availability, which means the option would be available with leadership approval the same way it is available on normal operating days.

18. If my supervisor does not have enough departmental work for me, or does not approve my request to work, am I required to use PTO or take unpaid leave? 

    • ​​​​​​​If you leader does not authorize work, and you will not otherwise meet your FTE for the week, you other options will be to take PTO or to take the time away from work unpaid.

19. Can I bank the Veteran's Day Holiday Pay as PTO?

    • There is no option to bank the Veterans Day Holiday as PTO.

20. For exempt employees who work on Modified Operations or Essential Services days, how will our timekeepers know not to add PTO on our behalf?

    • All employees should review and sign off on their time cards each week to ensure hours worked are accurately reflected. Refer to  MUHC HR-5014  for additional information.

21. If a Holiday falls on a weekend, will the preceding Friday or following Monday become an Essential Services or Modified Operations Day? 

    • With the exception of Veterans’ Day, Essential Services and Modified Operations Day designations apply to the actual date of the Holiday. If an Essential Services or Modified Operations Day falls on a weekend, the preceding Friday or following Monday will not become an Essential Services or Modified Operations Day. Employees should follow their normal work schedules unless otherwise directed by their leader. 

    • If Veterans Day falls on a weekend, the following Monday will be designated as a Modified Operations Day and Observed Holiday. Eligible staff will also receive Holiday Pay on the following Monday.

22. Are leave programs such as parental, caregiver, short-term disability or bereavement changing? 

    • ​​​​​​​No. These leave programs are not impacted by the PTO changes. ​​​​​​​

23. Are differentials changing? 

    • ​​​​​​​No. Differentials are not changing as part of this initiative. ​​​​​​​

24. Is my base pay changing? 

    • ​​​​​​​No. Base pay rates are not being reduced as part of these changes. ​​​​​​

Working On Essential Services and/or Modified Operations Days and Essential Services/Modified Operations Premium Pay

1. If I work on an Essential Services Day or Modified Operations Day, will I receive premium pay?

   • Eligible non- exempt employees who are scheduled and required to work on an Essential Services Day or Modified Operations Day will receive Premium Pay at 1.5 times their base hourly rate. This premium pay will be paid for hours worked between 12:00 AM and 11:59 PM on the designated Essential Services or Modified Operations Day. 
     To be eligible, you must: 

     1. Be a benefit-eligible, non-exempt MU Health Care employee 

     2. Work in one of the eligible job codes, which are listed here.  

     3. Be scheduled and required to work on the designated holiday.  

   • If you do not meet all criteria, you are not eligible for Premium Pay, even if they work on an Essential Services or Modified Operations Day. 

2. Why are only certain employees eligible for Essential Services and Modified Operations Premium Pay? ​​​​​​​
   • Eligibility for premium pay is not a reflection of the value or importance of an employee’s role or the contributions of a department. Premium Pay is intended to recognize benefit-eligible, non-exempt employees in designated job codes who are required to work on Essential Services Days and Modified Operations Days to support MU Health Care’s operational needs. 
3. If I believe a job code should be eligible, how can I request a review?
   • ​​​​​​​​​​​​​​Your first step should be to discuss the concern with your leader. Leaders may then request review of eligible job codes by submitting a ticket via AskHR. Note that leaders making this type of request should be prepared to justify the reason the job code(s) in question should be eligible for Essential Services or Modified Operations Premium Pay.  ​​​​​​​​​​​​​​
   • To view the list of eligible job codes: MOES Premium Pay Job Code Eligibility List 
4. I am an exempt employee. If I am required to work on an Essential Services or Modified Operations Day, will I receive Premium Pay?
   •   ​​​​​No. Essential Services/Modified Operations Premium Pay is only available to benefit-eligible, non-exempt employees in designated job codes. 
   • If you are an exempt employee and are required to work on an Essential Services or Modified Operations Day, you will not use PTO for that day. However, if you are normally scheduled to work and will be absent and unavailable for work, you will be expected to utilize your PTO. 
5. If I work on Veterans Day, do I receive both Holiday Pay and Premium Pay? 
   • ​​​​​​​If you are a non-exempt employee who is eligible for Premium Pay and work on Veterans Day, you will receive both 

     • Holiday Pay, and 

     • Essential Services/Modified Operations Premium Pay for hours worked  

6. Will educational classes, training, or other learning activities be available on Essential Services or Modified Operations Days?  ​​​​​​​

   • No. MU Health Care will not schedule routine clinical education or organizational development activities on Essential Services or Modified Operations Days. 

   • Additionally, please note that non-productive time spent completing education or training activities on an Essential Services or Modified Operations Day is not eligible for Premium Pay.  

7. Do hours worked on an Essential Services or Modified Operations Day count toward overtime? 

   • Yes. Hours worked on Essential Services and Modified Operations Days count toward the calculation of weekly overtime pay. 

Time Off and Using PTO on Essential Services and/or Modified Operations Days

1. If I am not scheduled and required to work on Essential Services or Modified Operations Days, will I still receive pay?  ​​​​​​​​​​​​​​

   • With the exception of Veterans Day, benefit-eligible, non-exempt employees who are not scheduled and required to work on an Essential Services or Modified Operations Day may use PTO if necessary to maintain their regularly scheduled paid hours.  

   • Exempt employees receive their regular salary regardless of whether they work on an Essential Services or Modified Operations Day. Whether PTO is used depends on the day: 

     • On Essential Services Days, exempt employees are expected to use available PTO to cover the day. 

     • On Juneteenth, exempt employees are not required to use PTO. If no PTO request is submitted, the assumption is that the employee is working. 

     • On Veterans Day, exempt employees receive the holiday grant and do not need to use PTO. 

2.  I am an exempt employee. Am I required to work on Essential Services or Modified Operations Days? 

   • ​​​​​​​​​​​​​​Work expectations for benefit-eligible, exempt employees differ based on whether the employee is in a clinical or non-clinical role and the operational designation of the Holiday. 

     • Benefit-eligible, exempt clinical employees are generally expected to work on Essential Services or Modified Operations Days that fall within their regular schedules or as otherwise instructed by leadership. With leadership approval, they may use accrued PTO if they choose not to work on those days.   

     • Benefit-eligible, exempt non-clinical employees are generally not expected to work on Essential Services or Modified Operations Days unless otherwise directed by leadership. Because they are not expected to work on these days, they must use available accrued PTO

3. ​​​​​​​ Do I need to submit a PTO request if I am not scheduled to work on an Essential Services or Modified Operations day?
   1. ​​​​​​​If you are a benefit-eligible, non-exempt employee who is not scheduled to work on an Essential Services or Modified Operations Day and need PTO to meet your regularly scheduled paid hours for the week, you are responsible for submitting a PTO request through UKG in accordance with department procedures. If no request is submitted, available PTO will be applied automatically.​​​​​​​

4. What if I will meet my regularly scheduled paid hours by working non-Essential Services or Modified Operations days? 

   • If an Essential Services or Modified Operations Day falls on a day where you are not normally scheduled to work, or if you will meet your FTE by working non-Essential Services or Modified Operations Days during that week, you do not need to use PTO solely because of the Essential Services or Modified Operations Day. This is because you will meet your FTE through working appropriate hours.  

     • If you are unable to meet your scheduled FTE for the week, you may use available PTO. 

     • See Scenario 1 

5. What if I do not have sufficient available PTO to cover an Essential Services or Modified Operations Day that I am not scheduled or required to work?  

   • Non- Exempt employees who do not have sufficient accrued PTO to cover an Essential Services or Modified Operations Day to meet their FTE in any given workweek will take the time off without pay. 

   • To avoid going unpaid, employees may work with their leaders to explore other options including: 

     • Requesting to work on the Essential Services or Modified Operations Day, if work is available and approved by your leader. 

     • Requesting additional shifts on other non-Essential Services or Modified Operations Days, if available and approved by your leader. 

   • See Scenarios 3 and 4

6. What if I do not want to utilize my PTO to cover an Essential Services or Modified Operations Day that I am not required to work?  

   • Non-Exempt employees who are not scheduled and required to work on an Essential Services or Modified Operations Day will not be required to utilize accrued PTO to meet their scheduled FTE for the workweek. If you elect to take time without pay, you must submit a request through UKG for your leader to approve.  

   • You may also work with your leader to explore other options, including: 

     • Requesting to work on the Essential Services or Modified Operations Day, if work is available and approved by your leader. 

     • Requesting additional shifts on other non-Essential Services or Modified Operations Days, if available and approved by your leader. 

   • See Scenario 4 

7. If I am scheduled and required to work on an Essential Services or Modified Operations Day, may I also take PTO? 

   • PTO cannot be utilized in addition to hours worked on an Essential Services or Modified Operations Day unless it is to meet weekly FTE requirements. PTO is not eligible for Premium Pay. 

8. Will I be eligible to receive Essential Services or Modified Operations Premium Pay if I have a secondary appointment? 

   • If your secondary appointment is in an eligible job code, you will be eligible to receive Premium Pay for hours you are scheduled and required to work in that role on Essential Services and Modified Operations Days.  

9. As a Non Exempt employee, if I choose to take an unpaid time, will it impact my PTO accruals, elections, or benefits?

   • ​​​​​​​​​​​​​​If an eligible non exempt employee is approved to take an Essential Services or Modified Operations Day unpaid, there will not be any impact to their PTO accruals, elections or benefits. PTO accruals are not impacted as these are based on your FTE, not actual hours worked. There is also not an impact to benefits as long as their check has enough to cover benefit premiums. The impact of electing to take the day unpaid is that the employee’s paycheck will not have hours added towards their FTE and it will reflect in their paycheck.   

10. How will these changes impact the CRMC or prior sick buckets that still have time in them?

    • ​​​​​​​There are no changes to how sick is utilized for CRMC or prior sick buckets. The PTO overage bucket will be a completely new and separate bucket for this one-time transition. The most an employee may have in this bucket is 40 hours.  ​​​​​​​

Scenarios

Scenario 1: A 1.0 FTE non-exempt employee is regularly scheduled to work Monday through Friday, 8 hours per day. An Essential Services Day falls on Saturday, which is the employee’s day off. Because the holiday does not impact the employee’s regular work schedule, the employee does not need to use PTO and will meet their scheduled FTE by working their normal Monday through Friday schedule. 

Scenario 2: A 0.75 FTE non-exempt employee is regularly scheduled to work Monday through Thursday, 8 hours per day. An Essential Services Day falls on a Thursday, and the employee will not be scheduled or required to work because their department will be closed. The employee may utilize PTO for the time off on Thursday, or they may request to take the time off unpaid.  

Scenario 3: A 1.0 FTE non-exempt employee works as an LPN in an ambulatory clinic and is regularly scheduled to work Monday through Friday, 8 hours per day. Friday is an Essential Services Day, and the clinic is closed. 

The employee only has 3 hours of available PTO and does not want to go unpaid. She asks her leader if she can work that day instead. The request is not approved because the clinic is closed and there is no available work for the employee to perform.  

Because the employee is unable to work and does not have enough PTO to cover the full 8 hours, she would have the option of using her available 3 hours of PTO and taking the remaining 5 hours off without pay or taking the full 8 hours off without pay.  

Scenario 4: A 0.75 FTE non-exempt employee works as a PSR in an ambulatory clinic and is regularly scheduled to work Monday through Thursday, 8 hours per day. Thursday is designated as an Essential Services Day, and the clinic is closed.  

The employee does not want to use PTO for Thursday and asks her leader if she can work that day instead. The request is not approved because the clinic is closed and there is no available work for the employee to perform. 

As an alternative, the employee asks her leader if she can work an additional shift on Friday. The clinic is open on Friday, and the leader approves the request because work is available and staffing needs support the additional shift. 

Because the employee works Monday, Tuesday, Wednesday, and Friday, she meets her scheduled FTE for the workweek. The employee is not required to use PTO for Thursday because she has met her FTE through hours worked during the week. 

Scenario 5: A 1.0 FTE exempt employee works in care coordination and is regularly scheduled to work Monday through Friday. Thursday is an Essential Services Day, and department leadership determines that limited care coordination coverage is necessary to support continuity of patient care. The employee is scheduled and required to work on Thursday. Because they are required to work, they receives her regular salary for the week and do not need to use PTO for that day. 

Scenario 6: A 1.0 FTE exempt employee works in marketing and is regularly scheduled to work Monday through Friday. Wednesday is an Essential Services Day, and the employee will not be scheduled or required to work because their department will be closed. The employee is expected to use available PTO to cover Wednesday.  

Note that if the employee did not want to utilize PTO, they could also ask their leader if they could work instead of utilizing PTO. Their leadership may approve that request if there is work available. If the request is approved, the employee would not be eligible for premium pay for hours worked on that day.