Ask Chip: Paid Days Leave Cap Adjustment

Q: Am I losing my accrued Paid Days Leave (PDL) because of the PDL cap adjustment?

A: You will not lose any PDL hours that you have currently accrued.

Beginning Sept. 17, employees who have PDL accrued in excess of 380 hours and up to the previous cap of 520 hours will have those excess hours moved into a separate PDL “bank.” If you fall within this category, you will not accrue PDL until you have less than 380 hours accrued. When you take PDL, beginning on Sept. 17 and moving forward, you will first spend down the PDL in that separate bank, until you are below the cap of 380 hours. At that point, you will resume accruing PDL at the same rate as before, which is determined by the numbers of years you have been employed at Sibley.

For employees who have less than 380 hours of PDL accrued as of Sept. 17, you will not see any change other than the new cap.

All employees will continue to accrue PDL at the same rate as before.


Q: Why does the Internal Revenue Service (IRS) not allow a one-time cash out of accrued PDL, but it does allow PDL to be paid out to employees who leave the organization? Has Sibley considered some other option for allocating vacation time?

A: All PDL at Sibley is non-redeemable leave, which means it can be used for paid time off or accrued to be used in the future. PDL at Sibley is non-redeemable in order to comply with IRS Guideline Section 409A, which states that compensation becomes taxable on the date it becomes available for cash. Under our PDL policy, leave is taxed when it is redeemed,
not when it is available for cash. That means that all accrued PDL must be in the form of non-redeemable leave.

At this time, Sibley is not considering any further changes to the current PDL policy.


Q: Do we receive paid holiday leave since the PDL cap is now 380 hours?

A: The policy regarding leave for hospital-observed holidays is not changing. You will continue to use
PDL to be paid while taking the day off from work on a hospital-observed holiday. Please click here to read the Sibley policy on hospital-observed holidays.


Q: Is there a plan for Sibley to align its PDL and leave policies with other Johns Hopkins entities?

A: There are no plans to change the new Sibley PDL policy or any other leave policies. There are workgroups that meet on a frequent basis to review and make changes as needed to the benefits and policies for all of the Johns Hopkins Medicine entities.


Q: Will Sibley offer paid maternity leave because the PDL cap has been changed?

A: There are no plans to change any leave policies. Sibley continues to follow state and federal
regulations regarding leave. For questions about Family and Medical Leave, please click here to read the Sibley policy or contact Jolie Price, human resources generalist, at jprice34@jhmi.edu. For questions about short term disability, a voluntary benefit that is purchased by the employee during the new hire period or open enrollment, please contact Mario Delgado, director of benefits, at mdelgad4@jhmi.edu.

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