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MU Health Care LPN Paid Time Off (PTO) & Holiday Changes
Effective date:
January 1, 2027 (Pending Board of Curators approval)
Who does this impact?
PTO changes apply to all benefit-eligible employees of MU Health Care. Certain accrual rate changes apply specifically to MU Health Care Licensed Practical Nurses (LPNs) who are benefit-eligible (working 30+ hours per week).
What is changing
Effective January 1, 2027, MU Health Care is restructuring how paid time off and holidays are organized for all benefit-eligible employees. The key changes are:
Holidays combined into PTO bank
- All days formerly designated as paid holidays, with the exception of Veterans Day, will be combined into your PTO bank.
- Veterans Day will continue to be recognized as a separate paid holiday.
PTO bank and accrual rate changes
- All benefit-eligible MU Health Care employees
- The total PTO annual accrual will be reduced by 3 days (24 hours) at all service levels (years of service); this applies to all benefit-eligible employees regardless of position type.
- Refer to the PTO accrual chart below for your specific service level and position type.
- Effective January 1, 2027, LPNs will move from the Exempt PTO accrual structure to the Non-exempt PTO accrual structure.
- This change reflects LPNs' classification under the Fair Labor Standards Act (FLSA) as non-exempt employees and is also how most peer health systems categorize and structure PTO for this role.
Maximum accrual cap adjusted
- The maximum PTO balance you can carry will be adjusted to 1.5 times your total annual accrual.
- Refer to the PTO accrual chart below for the maximum hours balance that applies to your position type and service level.
PTO Accrual Chart
Why is PTO and holiday structure changing?
- PTO changes are one component of a broader effort to strengthen the long-term financial sustainability of MU Health Care.
- Like many health systems across the country, we are facing sustained financial pressures that require difficult decisions across multiple areas.
- We reviewed our PTO and holiday structure against peer health systems and found that our existing structure — which maintains separate holiday banks alongside PTO — is an outlier among health systems.
- Combining holidays into the PTO bank and reducing the total bank by three days brings our structure into closer alignment with how the majority of health systems manage time off.
Why is LPN accrual structure changing?
- LPNs are classified as non-exempt employees under the Fair Labor Standards Act (FLSA) and the
non-exempt PTO accrual structure for LPNs is consistent with standard industry practice across health systems.
- When MU Health Care transitioned to its current PTO program, LPNs were placed in the monthly, exempt PTO accrual structure alongside RNs. While intended to support consistency at the time, that structure is not aligned with the non-exempt classification typically used for LPN positions.
- This change aligns the PTO accrual structure with both the FLSA classification of the role and prevailing health care industry practice.
How were decisions made?
- These decisions are grounded in a comprehensive benchmarking process conducted with external expertise, comparing our programs to peer health systems.
- Even after these adjustments, our overall benefits package remains competitive within the market. This was a deliberate outcome of the benchmarking.
- We understand these changes will have a personal impact for many employees, and we do not take that lightly. These decisions were made thoughtfully and with a long-term focus on maintaining a strong, sustainable organization.
Frequently Asked Questions
Does this mean I am losing PTO?
The organizational PTO redesign reduces the total PTO bank by 3 days for all benefit-eligible positions and at all service levels (years of service) across the organization, as represented in the accrual charts above — this applies to LPNs as it does to all benefit-eligible employees.
The Hourly, Non-exempt accrual structure has three service tiers (< 5 years, 5–15 years, and > 15 years) compared to the two-tier structure (< 5 years and ≥ 5 years) in the current Monthly, Exempt schedule. Moving from the exempt to the non-exempt accrual rate results in an additional reduction of 0 to 5 days PTO for LPNs, depending on your years of service.
Your accrual going forward will be based on your years of service under the new schedule shown above.
Why are LPNs on a different schedule than RNs?
RNs are classified as exempt employees under the Fair Labor Standards Act (FLSA), which is why they remain in the Monthly, Exempt accrual structure. LPNs are classified as non-exempt under the FLSA, which corresponds to the Hourly, Non-exempt accrual structure. The two roles carry different FLSA classifications, and this change aligns each role's PTO structure accordingly.
What happens to PTO I have already accrued?
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.
What if my current balance exceeds the new maximum accrual cap?
MU Health Care employees who have current PTO balances that exceed the new annual cap on January 1, 2027, will have the excess in accrual moved to a separate PTO bank. The excess PTO bank must be exhausted before new accruals can be earned.
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.
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.
Are differentials changing?
No. Differentials are not changing as part of this initiative.
Are leave programs such as parental, caregiver, short-term disability or bereavement changing?
No. These leave programs are not impacted by the PTO changes.
Is my base pay changing?
No. Base pay rates are not being reduced as part of these changes.
Are there any other benefits changes that apply only to LPNs?
No, there are no other LPN-only benefit changes.
Where can I get more information or ask questions?
Employees are encouraged to submit questions through AskHR, where they will be routed to the appropriate team..
To ensure employees have an opportunity to learn more and ask questions about benefits program changes, we will be hosting education sessions and open office hours in August and September. Additional details regarding how these changes will be implemented will be shared during those sessions.
You will receive an invitation mid-July with education session options and office hour availability.