Last Review Date 08/2022

Next Review Date 08/2023

Owner Human Resources

HR Policy 03.20 Paid Time Off (PTO)

Statement
Rite Aid, Elixir, and Health Dialog (the “Company”) believe that associates should have opportunities to enjoy time
away from work to help balance their lives. The Company also recognizes that associates have diverse needs for
time off from work. The Company has established this Paid Time Off (PTO) policy to meet those needs.

Time off under this policy includes extended foreseeable time off, such as for vacation, incidental time off to
handle personal affairs, time off due to incidental illness, and time off covered under Rite Aid’s leave policies as
allowed or required by those policies.

This policy supersedes and replaces any Rite Aid policies providing for vacation or sick time or any other time off
with the exception of Rite Aid’s other leave policies currently in effect.

Scope
This Policy applies to all non-union associates employed by the Company.

This Policy does not apply to associates working for the Company in the states of California and Colorado.
Associates working in CA and CO should refer to the Company’s separate CA & CO Paid Time Off policy.

Policy Guidelines
Eligibility
Associates classified as full-time (defined as working at least an average of 30 hours per week) or part-time are
eligible for PTO under this Policy.

Waiting Period
Associates will accrue PTO beginning on their first day of employment but will not be able to use any accrued
PTO hours until the pay period following their 60th day of employment unless otherwise required by law.

Accruing PTO
PTO is accrued per pay period. PTO accrues on paid hours; PTO does not accrue on unpaid hours or during a
leave of absence (paid or unpaid).

Because PTO is accrued by paid hour, there is no maximum annual PTO accrual. Rather, for every paid
hour during the calendar year, associates accrue PTO time. Retroactive credit will not be provided for any period
of time.

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The PTO Plan year runs from the first full pay period in January to the last pay period in December.

PTO Examples1 of Annual PTO Accrual If Paid a Weekly Average Of:

Years
Accrual
Status2 of 10 20 28 30 35 40 45
Rate by
Service hours hours hours hours hours hours hours
Hour3
Full- 90 105 120 135
Time 0–4 0.05770 N/A N/A N/A PTO PTO PTO PTO
hours hours hours hours
Full- 120 140 160 180
Time 5–9 0.07694 N/A N/A N/A PTO PTO PTO PTO
hours hours hours hours
Full- 150 175 200 225
Time 10+ 0.09619 N/A N/A N/A PTO PTO PTO PTO
hours hours hours hours
Part- 17 34 49
Time All 0.03334 PTO PTO PTO N/A N/A N/A N/A
hours hours hours
1
Examples designed for illustrative purposes. Approximate figures rounded for illustration purposes.
2
Associate status is defined in the eligibility section of this Policy.
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Exact annual PTO accrual amounts are based on an associate’s paid hours.

Associates who reach their 5-year or 10-year anniversary during the calendar year will begin accruing at a higher
rate per hour (as defined in the chart above) starting the pay period following the anniversary date.

Associates who change status from part-time to full-time or full-time to part-time will begin to accrue PTO time at
the applicable full-time or part-time accrual rate during the pay period after the status change is processed.
Periodic audits of associate hours will be conducted to ensure full-time and part-time status is accurate.

Management of PTO
The Company encourages associates to use PTO hours in the year in which the hours are accrued. Because
PTO can be used for multiple purposes, including sick leave, it is imperative that each associate responsibly
manage their PTO. It is important to plan ahead for vacations, appointments, personal matters and unplanned
needs. Associates should consider reserving time for the unexpected such as emergencies and illnesses.
Associates who use their PTO and later have a need for time off, such as for an illness or to care for a family
member, will not be granted additional PTO, but may be eligible to borrow time pursuant to this policy or to apply
for a leave of absence. In addition, accrued PTO must also be used for any other absence unless the required
use of PTO is excused by an applicable Company leave policy or by law. In other words, associates generally
may not take unpaid time off until they have exhausted all of their PTO.

Scheduling PTO
Unless otherwise required by applicable law, associates must take PTO in the same calendar year in which it is
accrued, unless the associate has chosen to carry over unused time into the following calendar year as provided
in the Carryover section of this Policy.

Associates requesting PTO in advance for scheduled time off generally should request such time as far in
advance as possible.

Associates requesting PTO for unexpected emergencies or illness must contact their supervisor as soon as
possible (refer to the attendance policy for details on these requirements).

In either case, for advanced scheduling or unexpected emergencies or illness, associates should check with their
supervisor regarding the notice period that is required and also refer to the Rite Aid Attendance Policy for details
on these requirements. Each business unit, department or location may approve time off in its sole discretion
based on business needs and in accordance with applicable law.

To ensure appropriate tracking, all PTO requests must be made by the associate and approved by the supervisor
within the appropriate time keeping system.
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Using PTO
PTO is designed to be used in place of scheduled hours only and generally cannot be used for any non-
scheduled hours to increase hours paid in a pay period.

If an associate is taking a full day off, the associate must use PTO hours in increments according to their normal
workday. For example:
• If an associate works an eight-hour day and needs to take off a full day, they must request eight hours of
PTO.

• If an associate works a ten-hour day and needs to take off a full day, they must request ten hours of PTO.

PTO is paid at the associate’s regular pay rate and is not subject to overtime unless required by law. PTO is not
earned until it is used, and unused PTO will not be paid out in lieu of taking time off, absent extraordinary
circumstances.

Once an associate gives notice of employment separation, PTO cannot be scheduled or used during the notice
period for vacation purposes and can only be used where required by law.

Borrowing PTO
Full-time associates may borrow up to 40 PTO hours each calendar year. Part-time associates may borrow up to
20 PTO hours each calendar year. Associates will not be permitted to have a negative PTO balance of more than
40 hours (or 20 hours for Part-Time associates) in a calendar year.

Associates with a negative balance at the end of the calendar year will carry over the negative balance into the
next year. The amount that the associate will be able to borrow in the new calendar year will be reduced by the
hours borrowed and not yet repaid from the prior year.

If an associate terminates employment with a negative PTO balance, the equivalent amount (or less if required by
law) will be withheld from the associate’s last pay, to the fullest extent permitted by law. If the equivalent amount
is not able to be withheld from the last pay, the amount will be due to Rite Aid within 60 days of the associate’s
last day worked, where permitted by law.

Carry Over of PTO

All associates are permitted to carry over up to 80 hours of unused accrued PTO from one calendar year to the
next, unless more time is required by applicable law. All hours that exceed the carry over maximum will be
forfeited at the end of the calendar year to the fullest extent permitted by law and will not be paid out.

Holidays within PTO period

In the event that a holiday falls within an approved scheduled PTO period, associates will not be required to take
PTO for that holiday if they are otherwise eligible for holiday pay.

Payment upon termination of employment

PTO will not be paid out upon termination unless required by applicable law. In limited circumstances, rehired
associates may be eligible to have some or all of their PTO reinstated upon rehire if it was not paid out at
termination.

Change or amendment of policy

The Company reserves the right to change, amend or eliminate any of the policies or benefits set forth herein.

Additional Resources
3.02 Personal Leave of Absence
3.03 Family and Medical Leave of Absence
3.04 Military Leave of Absence
3.11 Discretionary Paid Time Off
3.19 Non-FMLA Medical Leave of Absence
3.21 CA & CO Paid Time Off

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3.22 Short-Term Disability
3.23 Jury & Witness Duty
3.24 Bereavement Time Off

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HR Policy 03.20 Paid Time Off (PTO) Addendum
State/Location
Paid Sick Leave Information
This PTO policy is being used to meet the Company’s paid sick leave obligations under applicable state, county
and city paid sick and safe leave laws. Associates have the right to use PTO for all purposes permitted by
applicable law. For example, in St. Paul, Minneapolis, associates can use PTO for purposes permitted by the
Earned Sick and Safe Time Ordinance.

When PTO is used for paid sick and safe leave reasons, the Company will maintain confidentiality and not
disclose without the written permission of the affected associate or as required by law. However, the Company
reserves the right to consider this information in connection with a request for sick and safe time or in connection
with a request for a reasonable accommodation, for a victim of domestic violence, stalking or a sex offense.
Discrimination or retaliation against an associate for exercising any rights provided by an applicable paid sick and
safe leave law, including the use of PTO for paid sick and safe leave purposes, is prohibited.

Seattle, WA: Associates working in Seattle, Washington are eligible for paid sick and safe leave under the Seattle
Sick and Safe Time ordinance and the Company is considered a Tier III employer under the law. PTO may be
used for sick time purposes permitted by law, including: (i) for an associate’s mental or physical illness, injury, or
health condition, or to allow an associate to obtain medical diagnosis, care, or treatment for the same, or for an
associate’s need for preventive medical care; (ii) to allow an associate to care for his/her family member (child,
spouse, state or city registered domestic partner, parent, parent-in-law, sibling, grandparent or grandchild) with a
mental or physical illness, injury, or health condition, or to allow an associate to obtain medical diagnosis, care, or
treatment for the same, or for care of an associate’s family member who needs preventive medical care: (iii) the
associate’s place of business has been closed by order of a public official for any health-related reason (weather-
related closures are not included); or (iv) the associate’s child’s school or place of care has been closed by order
of a public official for any health-related reason. PTO may also be used for “safe time” purposes, including when
an associate is a victim of domestic violence, sexual assault, or stalking, or a family member of a victim, and time
off is needed to seek legal or law enforcement assistance, treatment by a health care provider, social services,
mental health counseling, safety planning, relocation, or other actions to increase safety for the associate or the
associate’s family member, including an individual with whom the associate has or has had a spousal, domestic
partner, or dating relationship, with whom the associate has a child in common, with whom the associate resides
(or has resided), and any adult person related by blood or marriage to the associate.