1. KAWEAH DELTA HEALTH CARE DISTRICT EMPLOYEES EFFECTIVE 7/1/15 AB1522 Healthy Workplace Healthy Families (HWHF) Act of 2014 Human Resources Policy Changes  On September 2014, Governor Brown signed into law the requirement for employers in the State of California to provide sick time to employees, under certain conditions.  Effective 7/1/2015, an employee in California who works for 30 or more days within a year is entitled to benefits.  KDHCD offers a PTO Plan to Full Time and Part Time benefit-eligible employees that meets most requirements of the new law. However, there are a few changes noted as Impact #1 and Impact #2 noted on the next slide.  Other employees, including part-time and per-diem, will accrue one hour of Paid Sick Leave (PSL) for every 30 hours ‘worked’ (accrual rate of.033). Accrual begins 7/1/2015. Accrued time may be used beginning on the 90 th day of employment. Accrued PSL is capped at 48 hours accrued in a calendar year, but unused accrual will carry over to the following year.  Whether PTO or PSL, HWHF may be used for the following purposes:  Themselves or a qualifying family member for the diagnosis, care or treatment of an existing health condition or preventive care.  Specified purposes for an employee who is a victim of domestic violence, sexual assault, or stalking.  HWHF may be used in 2-hour to 12-hour shift increments.  Employees may use 24 hours of this accrued time in a year and may not be disciplined.

2. KDHCD – Positive Changes Change #1 Currently, Kaweah Delta provides Paid Time Off (PTO) accrual for benefit-eligible new (or newly eligible) employees beginning on the 90 th day of employment. Our PTO accrual complies with AB1522-HWHF, but we need to accrue from the first pay period of eligibility. Change: Effective 6/21/2015, benefit-eligible employees will begin PTO accrual s on the first pay period of employment at the current PTO-only accrual rate of.038, slightly higher than the mandated accrual rate of.033. PTO may be used when accrued. If it meets the definitions under HWHF, 24 hours may not be considered in attendance disciplinary actions. Change #2 Currently, benefit-eligible employees do not accrue PTO if they are paid less than 36 hours in a two-week pay period. Change: Effective 6/21/2015, these employees will accrue PTO on these qualifying hours. Change #3 Currently, benefit-eligible employees hired after 2009 accrue EIB at a lower rate than those hired before 2009. Change: Effective 6/21/2015, all benefit-eligible employees will accrue at the same rate (.0231 per paid hour, excluding overtime and EIB hours paid). For a full-time employee, this equates to 48 hours per year. Change to Kin Care: Kin Care will apply to ½ of the annual accrued EIB balance, rather than PTO (max of 24 hours per rolling 12 months). Change #4 Currently, Per-Diem, Private Home Care and Non-Eligible Part-Time employees do not accrue any time off benefits. Change: Effective 6/21/2015, employees will accrue PSL not to exceed 48 hours in a calendar year at the mandated accrual rate of.033, or one hour for every 30 hours worked. May use accrual after 90 days of employment if meets definition under HWHF; 24 hours may not be considered in attendance disciplinary actions.

3. KDHCD – Policy Modifications  Modifications to the Attendance Policy HR.184:  Changed guideline of Excessive Absenteeism from two occurrences in 45 days to 4 in a rolling 12-month period to start Progressive Discipline.  An occurrence is defined as full days off (including consecutive days), or two tardies, two times leaving early or a combination of one tardy/one leaving early.  Absences protected by law, including 24 hours of PTO/PSL under AB1522-HWHF may not be considered as an occurrence.  Progressive Discipline is 4, 5, 6, 7, and 8 occurrences before termination is considered. When considering Discipline after 7/1/2015, count only one occurrence (if any) within the prior rolling 12 months.  Kin Care: Policy change to allow for ½ of accrued EIB in a rolling 12 months, instead of ½ of accrued PTO (max of 24 hours in a rolling 12 month period).  Code “PTO/EIB unscheduled” will be utilized for all sick time not covered by PSL, EIB, EIB/Kin or an approved leave of absence, for example FMLA/CFRA/PDL. This includes sick calls exceeding 24 hours of consecutive scheduled work.  Modifications to the Progressive Discipline Policy HR.216:  Current practice: Staff who receive a Counseling within nine months of evaluation are not eligible for a merit increase.  Change: Counselings are considered in the performance of an employee and may affect the calculation of the merit increase, but will not void the merit entirely.

4. KDHCD – Positive Changes!  Benefit-eligible employees receive PTO accrual as of their first pay period.  These employees will also accrue on pay periods where they may be paid less than 36 hours.  Non-benefit eligible employees accrue PSL as of their first pay period.  Parity of EIB Accrual with new and grandfathered benefit-eligible employees, as well as with newly eligible PSL employees.  Kin Care applies to EIB for benefit-eligible employees.  Attendance Policy modified to focus on reliability over a 12-month period  Employees in Progressive Discipline will be eligible for a merit increase with their Performance Evaluation For questions, please feel free to call Human Resources 624-5254! Thank you!