1. HR Administration For … Pastors, Principals, Business Managers & Administrators July, 2009

2. Overview Compensation Benefits Criminal Background Check Virtus Training Employee Records

3. Overview Policy Administration Conflict Management Legal Compliance Discipline and Termination Human Resource Staff

4. Compensation There is no such thing as a paid volunteer If you need to pay people for what seems to be a volunteer position, you must pay them at least the minimum wage and pay them through the employee payroll with all appropriate tax deductions.

5. Compensation All employees must be paid through the regular employee payroll, with all appropriate taxes withheld. No cash payments are allowed.

6. Compensation Cash payments preclude an employee’s participation in our benefit programs (health, life, disability, etc.) regardless of how many hours s/he works.

7. Compensation Cash payments do not count toward pension or Social Security benefits and can leave an employee destitute in his or her retirement years.

8. Compensation Cash payments make the employer liable for state and federal penalties for failing to withhold and submit income taxes on a quarterly basis.

9. Compensation Cash payments may subject the employee to paying back taxes with penalties, and possible criminal charges, if s/he has not reported those cash payments on his or her tax returns.

10. Compensation Compensation information for most parish and school employees can be found in the “Compensation Guidelines” booklet distributed each year by the Department of Personnel Services.

11. Compensation The minimum wage in Illinois is currently $8.00 per hour for employees 18 and over…..and $7.50 per hour for employees under 18 (as of July 1, 2009).

12. Compensation Exempt employees are those who supervise two or more people, and have the authority to hire, fire, discipline, make salary increase recommendations, etc. (or have significant input regarding those decisions) OR

13. Compensation Those whose positions require a specialized course of study generally obtained through a 4- year college degree program. OR

14. Compensation Highly skilled computer technicians OR Administrative employees who are directly involved in running the employer’s business and have authority to make independent decisions on significant matters

15. Compensation Teachers, principals, site administrators, business managers, pastors, associate pastors, parish administrators, qualified professional lay ministers, information technology professionals and those having true supervisory authority are exempt employees.

16. Compensation Maintenance employees, secretaries, bookkeepers, office clerks, librarians, teacher aides, playground monitors, lunchroom monitors and extended day workers do not meet the criteria for exempt status and are therefore non- exempt employees.

17. Compensation Exempt employees are paid an annual salary that is NOT based on hours worked per week. Exempt employees are NOT entitled to overtime pay or comp-time for hours worked in excess of their regular weekly schedule.

18. Compensation This applies to all exempt employees, including: –Principals –Site Administrators –Teachers –Business Managers –Lay Parish Ministers –Etc.

19. Compensation Exempt employees must be guaranteed an annual salary of at least $23,600 and may not be docked for absences of less than a full day, except as allowed under FMLA.

20. Compensation Part-time employees who work in exempt positions… EXCEPT FOR TEACHERS… must be treated as non-exempt employees for purposes of time records and overtime unless they are guaranteed a minimum salary of $23,600 per year regardless of how few hours they actually work.

21. Compensation Part-time teachers may be paid a pro rated salary based on the percentage of a full-time schedule they are hired to work.

22. Compensation Non-exempt employees must be paid straight time wages for all hours up to 40 worked in the same work week, and time and a half for all hours actually worked in excess of 40 in the same week.

23. Compensation Lunch periods should not be less than ½ hour, and are UNPAID unless the employee is required to continue performing duties while on lunch.

24. Compensation Supervisors may adjust the work schedule of a non-exempt employee in order to avoid an overtime situation as long as the adjustment is made within the same workweek and does not result in the employee working more than 40 hours in the same work week.

25. Compensation An employee who is scheduled to work 8 hrs/day M-F but actually works 12 hours on Monday can be scheduled to work fewer than 8 hours per day on one or more of the remaining days in the workweek to avoid overtime.

26. Compensation An employee who is scheduled to work 8 hours per day (Monday through Friday) but actually works 12 hours on Friday, for a total of 42 hours for the week cannot be scheduled to work fewer hours the next week in order to avoid overtime.

27. Compensation Overtime is determined by the number hours actually worked in one or more non-exempt positions, at one location or multiple locations, within the same workweek.

28. Compensation For example, 25 hours as a teacher’s aide + 20 hours as an extended day worker = 40 hours of regular pay and 5 hours of overtime pay (time and a half).

29. Compensation Non-exempt employees may not be given comp time in lieu of overtime pay. Non-exempt employees can not legally waive their right to overtime pay.

30. Benefits Vacation Holidays Sick Days Personal Days Health Dental Short-Term disability

31. Benefits Life Insurance Long-Term Disability Cafeteria Plan Professional Growth Allowance Retreat Discount on Graves and Crypts

32. Benefits Retirement Plan 403(b) Share Plan

33. Benefits - Eligibility ALL employees who are hired to work at least 26 hours per week for 8 or more months of the year are eligible for ALL employee benefits.

34. Benefits - Eligibility Eligibility can be achieved by working the required schedule at one location, or by working part-time at two or more locations so that the employee’s combined schedule meets the minimum eligibility requirements for benefits.

35. Benefits - Eligibility Employees hired for positions in which they will NOT be regularly scheduled to work at least 26 hours per week for at least 8 months of the year are not eligible for any benefits under any circumstances.

36. Benefits - Eligibility This means: –NO paid sick days –NO paid holidays –NO paid vacation –NO paid personal days –NO health, life, dental, LTD –NO pension, –NO 403(b) match –NO Share Plan Contribution

37. Benefits - Eligibility No parish, school or agency of the Archdiocese of Chicago is authorized to waive, change or add eligibility requirements for any benefits.

38. Benefits - Uniformity No parish, school or agency of the Archdiocese of Chicago is authorized to add to or subtract from the standard benefit offerings made available to all full-time and benefits eligible part-time employees of the Archdiocese.

39. Benefits – Benefits - Employee Costs No parish, school or agency of the Archdiocese of Chicago is authorized, under any circumstances, to pay the employee cost for any benefit.

40. Benefits - Vacation Vacation benefits for school employees are incorporated into the school calendar. This includes time off with pay during the Christmas season and time off with pay during either the Easter Season or Spring Break.

41. Benefits - Vacation School employees include principals, teachers, teacher aides, librarians and other employees who work the academic year.

42. Benefits - Vacation Non-exempt, non-school employees are entitled to 2 weeks paid vacation after 1 year of eligible service, 3 weeks after 5 years and 4 weeks after 15 years

43. Benefits - Vacation Exempt, non-school employees are entitled to 3 weeks paid vacation after 1 year of eligible service and 4 weeks after 5 years of service.

44. Benefits - Paid Holidays The number and selection of paid holidays to be celebrated is determined locally, but must be consistent for all similarly situated employees.

45. Benefits - Paid Holidays For example, the holiday schedule may be different for school and non-school employees, but all school employees at the same location should have the same holidays and all non-school employees should have the same holidays.

46. Benefits - Sick Days & Personal Days School employees are entitled to 10 paid sick days per year to be used for their own illness, or the illness of an immediate family member. 2 of these 10 days may be used for personal reasons (personal days)

47. Benefits - Sick Days & Personal Days Non-school employees are entitled to 10 paid sick days and 2 paid personal days each year.

48. Benefits - Sick Days & Personal Days Unused sick days and unused personal days are not compensable at the end of the year or upon termination of employment, and they may not be used as additional vacation days.

49. Benefits -Sick Days & Personal Days However….unused sick days will carry over from year to year, up to a maximum accumulation of 120 days.

50. Benefits - Health Blue Cross & Blue Shield PPO HMO Illinois Blue Advantage HMO –Single coverage –Family coverage Dependent children covered to age 23 whether or not they are full-time students

51. Benefits - Health PPO –Provides coverage in or out of the network –$400 annual deductible applies (2 per family) –In-network co-pay 85% by the plan and 15% by the employee up to an annual out of pocket maximum of $2,000 ($4,000 per family) –Out-of-network co-pay is 75% by the plan and 25% by the employee up to an annual out-of-pocket maximum of $3,500 ($7,000 per family)

52. Benefits - Health HMO Illinois –Provides coverage in-network ONLY –$15 office visit co-pay for primary care physician and any specialists to whom you may be referred. –Most other expenses covered at no addition charge

53. Benefits - Health Blue Advantage –Provides in-network coverage ONLY –BA network is a subset of HMOI –No office visit co-pay for primary care physician or referral specialist –Most other expenses covered at no additional charge

54. Benefits - Health All employees who are working in a benefits- eligible status may participate in employee health benefits, regardless of age. Employees over age 65 may elect to have Medicare as their primary health plan…but are not required to do so. In most cases, it will be in the employee’s best interest to continue participating in the employee health plan.

55. Benefits - Dental First Commonwealth Dental –Single coverage PPO & DHMO –Family coverage PPO & DHMO –No employer subsidy for dental premiums

56. Benefits - Retirement Plan Defined benefit pension accruals for all plan participants have been frozen as of June 30, 2007. New employees hired on or after July 1, 2007, and current employees who transferred into a benefits-eligible status on or after July 1, 2007 will not be eligible to participate in the defined benefit pension.

57. Benefits - Retirement Plan All full-time and benefits eligible part-time employees are eligible to participate in the 403(b) defined contribution pension plan with an employer match of $0.50/$1.00 on the first 4% of his or her annual salary he or she contributes to the plan.

58. Benefits - Retirement Plan Non-benefits eligible part-time employees are eligible to participate in the 403(b) plan, but WITHOUT employer matching contributions.

59. Benefits - Retirement Plan Employee contributions to the 403(b) plan are not taxed for state or federal income taxes, but are taxed for Social Security and Medicare taxes.

60. Benefits - Retirement Plan Regardless of whether or not full-time and benefits eligible part-time employees choose to participate in the 403(b) plan, the employer will make an age-weighted employer contribution each quarter, based on a percentage of the employee’s salary, to a targeted retirement date investment fund for employees hired on or before June 30, 2007.

61. Benefits - Retirement Plan Regardless of whether or not full-time and benefits eligible part-time employees choose to participate in the 403(b) plan, the employer will make an employer contribution each quarter, based on a flat percentage of the employee’s salary, regardless of age, to a targeted retirement date investment fund for employees hired on or after July 1, 2007.

62. Benefits - Retirement Plan The flat percentage will not be less than 1.5% and will not be more than 5%. The actual percentage will be determined by the employer each year, and will be effective from January 1 st through December 31 st.

63. Benefits - Retirement Plan The Archdiocese of Chicago has NO mandatory retirement age. –Employees may continue to participate in our retirement plans and other employee benefits for as long as they continue to work at least 26 hours per week for 8 or months of the year, regardless of age.

64. Benefits - Life Insurance Free life insurance equal to 1 x annual salary, rounded to the next highest thousand. Supplemental life insurance up to an additional 4 x annual salary available at group premium rates

65. Benefits - Long-Term Disability Pays monthly disability benefits equal to 66.66% of monthly salary, coordinated with Social Security and any other disability coverage, after a 180-day elimination period.

66. Benefits - Cafeteria Plan Tax-exempt benefit under Section 125 of the IRS Code. Allows pre-tax employee payroll deductions for health and dental premiums.

67. Benefits - Cafeteria Plan May result in slightly reduced Social Security benefits at retirement, though in most cases, the tax savings in one’s working years will significantly outweigh the modest reduction in Social Security benefits later on.

68. Benefits - Cafeteria Plan Employee payroll deductions for health and dental premiums will automatically be taken on a pre-tax basis unless the employee elects in writing to have them taken on an after tax basis.

69. Benefits - Professional Growth Allowance Lay and religious principals, teachers, and parish ministers are entitled to be reimbursed for expenses related to professional growth, up to the amount specified in the current compensation guidelines.

70. Benefits - Professional Growth Allowance The professional growth allowance is intended to pay for courses, workshops, conferences or other programs selected by the employee and approved in advance by his or her supervisor.

71. Benefits - Professional Growth Allowance The professional growth allowance is not intended to pay for programs or training required by the employer, as these should be the employer’s expense.

72. Benefits - Professional Growth Allowance With few exceptions, non-faculty school employees and those employees not engaged in professional parish ministry are not entitled to a professional growth allowance.

73. Benefits - Professional Growth Allowance The professional growth allowance is generally not to be used to purchase computers, PDAs or other equipment. However, the professional growth growth allowance may be used to purchase software programs designed for computer-based training.

74. Benefits - Retreat All religious employees, lay principals and professional lay parish ministers are entitled to up to 5 days off with pay each year to participate in a structured, religious retreat.

75. Benefits - Retreat The cost of the retreat is to be paid by the employee….but the employee may use his or her professional growth allowance to pay the cost for the retreat.

76. Benefits - Graves and Crypts Catholic Cemeteries provides Archdiocesan employees a discount on the purchase of graves and crypts for themselves, their spouses and their dependent children. Details are available from Human Resources at (312) 751-5352

77. Benefits – Short-Term Disability Eligible employees may purchase short- term disability benefits in increments of $25 from a minimum of $100/wk. to a maximum of $1,250/wk….not to exceed 60% of covered earnings. The plan provides a weekly benefit for a period of 22 weeks after a 30-day elimination period. STD benefits are paid in addition to any sick days the employee may be entitled to.

78. Benefits – Flexible Spending Accounts Eligible employees may elect to have salary deductions on a pre-tax basis deposited into a flexible spending account to cover the cost of certain out-of-pocket expenses related to health care or dependent care for themselves, their spouses or dependent children. Employees determine how much to deduct. Later, when they incur an eligible expense, they receive tax-free reimbursements from the FSA. (Benny Card)

79. Criminal Background Check Under absolutely NO circumstances may a new hire 18 years of age or older be allowed to start work prior to completing the on-line criminal background check, with confirmed favorable results.

80. Criminal Background Check New Hires under 18 years of age need not complete the on-line criminal background check until she or he reaches age 18. Upon reaching age 18 the employee must complete the on-line criminal background check in order to remain employed.

81. Virtus Training Within the first two weeks of employment all new full-time and part- time employees must register for Virtus training. Times,dates and locations are listed on the Archdiocesan website. Employees may enroll on-line or by calling the Office for Protection of Children and Youth at (312) 751-5388

82. Employee Records – Exempt Employees All exempt employees are required, under Archdiocesan policy, to submit timesheets on a bi-weekly basis, indicating only whether they were present or absent each day, and the reason for any absences.

83. Employee Records – Exempt Employees This applies to all exempt lay and religious employees, including: –Principals –Site Administrators –Teachers –Business Managers –Lay Parish Ministers –Etc.

84. Employee Records – Non-Exempt Employees Non-exempt employees are required by law to maintain their own timesheets on a weekly basis, indicating the number of hours they actually worked each day, and indicating the reason for any absences.

85. Employee Records Employee files should contain an official Archdiocesan employment application, the employee’s resume if there is one, verifications of employment and academic credentials, job description, I-9 form, performance appraisals AND

86. Employee Records Disciplinary notices, letters of commendation, compensation information, records of additional training and education, emergency contact information and other information used in making employment decisions.

87. Employee Records Employees have a legal right to review and copy the contents of their personnel files…except for medical records and employment or personal references.

88. Policy Administration Family and Medical Leave of up to 6 months in any 12-month period will be granted to eligible employees beginning the first day of absence, for the birth or adoption of a child, for the employee’s serious illness or for the serious illness of an immediate family member.

89. Policy Administration To be eligible for FMLA, the employee must have one full year of service, and must have worked at least 1,250 hours in the previous year.

90. Policy Administration The FMLA policy applies even to medical leaves resulting from Workers Compensation claims.

91. Policy Administration The employee must submit a completed Leave of Absence Request Form, along with the medical form completed by the attending physician (either the employee’s doctor or the family member’s doctor).

92. Policy Administration As a reasonable accommodation under the Americans with Disabilities Act, you may be required to extend an employee’s family or medical leave beyond the 6-months allowed under our policy. (Call HR at 312-751-5360 if you have any questions.)

93. Policy Administration While on FMLA, employees are paid only to the extent that they have sick, personal or vacation days available. Sick days may only be used for time off that is medically necessary. Holidays are unpaid (unless vacation or personal days are used).

94. Policy Administration Military Caregiver Leave (also known as Covered Servicemember Leave): Under the first of these new military family leave entitlements, eligible employees who are family members of covered servicemembers will be able to take up to 26 workweeks of leave in a “single 12-month period” to care for a covered servicemember with a serious illness or injury incurred in the line of duty on active duty.

95. Policy Administration Based on a recommendation of the President’s Commission on Care for America’s Returning Wounded Warriors (the Dole-Shalala Commission), this 26 workweek entitlement is a special provision that extends FMLA job-protected leave beyond the normal 12 weeks of FMLA leave. This provision also extends FMLA protection to additional family members (i.e., next of kin) beyond those who may take FMLA leave for other qualifying reasons.

96. Policy Administration Qualifying Exigency Leave: The second new military leave entitlement helps families of members of the National Guard and Reserves manage their affairs while the member is on active duty in support of a contingency operation. This provision makes the normal 12 workweeks of FMLA job- protected leave available to eligible employees with a covered military member serving in the National Guard or Reserves to use for “any qualifying exigency” arising out of the fact that a covered military member is on active duty or called to active duty status in support of a contingency operation.

97. Policy Administration The Department’s final rule defines qualifying exigency by referring to a number of broad categories for which employees can use FMLA leave: (1) Short-notice deployment; (2) Military events and related activities; (3) Childcare and school activities; (4) Financial and legal arrangements; (5) Counseling; (6) Rest and recuperation; (7) Post-deployment activities; and (8) Additional activities not encompassed in the other categories, but agreed to by the employer and employee.

98. Policy Administration Christmas Break and the Spring/Easter Break are considered vacation for benefits-eligible school employees, and should therefore always be paid…and should not be charged against accumulated sick days.

99. Policy Administration Personal leaves may be granted for up to 90 days with supervisory approval. Personal leaves are paid only to the extent the employee has personal or vacation days available. Sick days are not to be used for personal leaves. Holidays are unpaid (unless vacation or personal days are used).

100. Policy Administration Parish, school and agency administrators are responsible for communicating, administering and enforcing all personnel policies found in Book Two-The People of God, and summarized in the Employee Handbook.

101. Conflict Management Parish, school and agency administrators are responsible for responding to grievances, allegations of sexual or other forms of harassment, and other concerns brought to them by their employees.

102. Conflict Management Contact Human Resources at the Pastoral Center for assistance. If you don’t know what to do, ask.

103. Legal Compliance All parish, school and agency administrators are responsible for ensuring compliance with all applicable local, state and federal employment regulations, including…

104. Legal Compliance Laws prohibiting discrimination. Laws prohibiting sexual and other forms of harassment. Minimum wage & overtime laws……and more.

105. Legal Compliance Contact Human Resource at the Pastoral Center for assistance when necessary.

106. Discipline and Termination If you do not document issues as they occur, you may not be able to discharge a problem employee when you feel it is necessary without significant legal and financial risk to your parish, school or agency.

107. Discipline and Termination While some situations may warrant immediate discharge, most terminations should be preceded by warnings that spell out what the problem is, what the expectation is, what corrective action will be required, the time frame for change and the consequences if that change does not occur.

108. Discipline and Termination Appropriate forms of discipline include verbal warnings, written warnings, suspensions with or without pay, and discharge.

109. Discipline and Termination ALWAYS contact Human Resources for guidance whenever you have a situation you believe could escalate to the point of discharge.

110. Discipline and Termination You MUST contact Human Resources prior to any involuntary termination, for any reason, including employer initiated non- renewal of a contract, misconduct, poor performance, layoffs, etc.

111. Discipline and Termination Human Resources will assist you in achieving an outcome that is fair to both the employee and the organization, and that can be defended if legally challenged.

112. Human Resources Staff Fred Van Den Hende - Director Human Resources fvandenhende@archchicago.org (312) 534-5352fvandenhende@archchicago.org Christopher Cannova - Dir. of Compensation & Benefits ccannova@archchicago.orgccannova@archchicago.org (312) 534-5386 Grace Cabrera - Benefits Assistant gcabrera@archchicago.orggcabrera@archchicago.org (312) 534-5360

113. Human Resources Staff Daniel Dirnberger - HR Generalist ddirnberger@archchicago.orgddirnberger@archchicago.org (312) 534-5359 Arletta Ferrell - Pension Administrator aferrell@archchicago.orgaferrell@archchicago.org (312) 534-8276 Erin Foucher - Field Rep, Vicariates V & VI efoucher@archchicago.orgefoucher@archchicago.org (312) 534-2021

114. Human Resources Staff Erika Gallardo - HR Field Rep, Vicariates III & IV egallardo@archchicago.orgegallardo@archchicago.org(312) 751- 2017 Lupe Hernandez - Benefits Specialist lhernandez@archchicago.orglhernandez@archchicago.org (312) 751-8209 Valerie Lee - Secretary Vlee@archchicago.orgVlee@archchicago.org (312) 751-8208

115. Human Resources Staff Carol Miller - HR Field Rep, Vicariates I & II cmiller@archchicago.orgcmiller@archchicago.org (312) 534-2560 Susan Zarnowski – HR Assistant szarnowski@archchicago.orgszarnowski@archchicago.org (312) 534-5287