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Participation: Participation is voluntary and no employee shall pressure or otherwise attempt to influence another employee to donate accrued time. All donations will be kept confidential and the City will not inform the recipient of the names of those donating hours or the number of hours which have been donated. No provisions of this policy or its administration shall be subject to review under the grievance process. Recipient: An employee is eligible to receive donated leave only for time lost from normal work hours and only to make them financially whole once all paid leave banks have been exhausted. PTO Donation Program wages shall be limited to the amount equal to that individual's regular gross earnings per pay period (i.e. current hourly base pay rate multiplied by regularly scheduled hours of work per pay period). Transfers of leave hours will be converted based on the donor's hourly rate of pay versus that of the donee. (i.e. an employee malting $30 per hour donates eight hours of PTO to an employee that makes $15 per hour. The value to the donee would be 16 hours). The IRS has ruled that these payments are considered wages and taxable income for the recipient. An employee may only have an excess of 40 hours of PTO on the books after application of the PTO donations. Donation of PTO will not be allowed once an employee is judged to be disabled by the major medical condition and will not be returning to work. Donated time cannot be paid to an employee in the form of cash or used in any manner other than what is stated in this policy. Donor: An eligible employee who donates PTO time understands this time is a "gift" and that the donated leave will be irrevocable, that there is no control over how the leave is used once donated, and that the receiving employee has no obligation to pay it back. The IRS has ruled that the employee donating the leave realizes no income and incurs no tax deductible expense or loss, either upon donation of PTO or payment to the recipient. An employee may donate up to eight (8) hours per year to a single fellow employee. Once donated PTO time has been transferred to the eligible employee, the donor may not revoke the transaction. EXCEPTIONS Exceptions to these requirements must be approved by the City Administrator and will only be granted in rare and unusual circumstances. Any questions regarding this program should be directed to the City Administrator. 5