1 strategicpartnerL E A V E o f A B S E N C E S O L U T I O N S f o r A S S O C I A T I O N S

2 2

A G E N D A

PROPRIETARY & CONFIDENTIAL

•  WHAT ARE WE TALKING ABOUT?

•  FUN FACTS

•  ABOUT ABSOLVE

•  SAVINGS EXHIBIT

•  Q & A

3 3

PROPRIETARY & CONFIDENTIAL

One Leave Many Variables

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I N S U R E R E M P L O Y E R A S S O C I A T I O N C H A L L E N G E

PROPRIETARY & CONFIDENTIAL

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PROPRIETARY & CONFIDENTIAL

TOP LEAVE ADMINISTRATION CHALLENGES REPORTED BY EMPLOYERS1

DISRUPTS WORK OF OTHERS 59%

HURTS MORALE 48%

REDUCES QUALITY OF WORK 40%

ADDS MANDATORY OVERTIME 29%

ADDITIONAL TRAINING 20%

1TotalFinancialImpactofEmployeeAbsencesintheU.S.,SHRM/Kronos2018

B I G P A I N P O I N T F O R E M P L O Y E R S 1

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B I G L I A B I L I T Y , L O T S O F R O O M F O R E R R O R

PROPRIETARY & CONFIDENTIAL

+26% •  26.3% increase in FMLA suits filed

•  $78,000 average legal fees, win or lose

•  Managers, HR can be sued directly and personally liable for damages

UNPRECEDENTED FMLA LAWSUITS1

U. S. DOL INVESTIGATES OFTEN1

43% •  43% of investigation initiated by DOL

•  Average award >$500,000 per lawsuit

•  270,000 workers awarded $240,000,000 in back wages alone in 2014

FMLA JUDGMENT EMPLOYEE

AWARD

Back pay – 3 years wages plus benefits $259,205

Pre-judgment interest $12,715

Liquidated damages $271,920

Plaintiff’s attorneys’ fees and costs $383,514

Plaintiff’s other costs $19,184

TOTAL $956,538

Waltersv.MayoClinicHealthSys.(EauClaireHosp.,Inc.)

No.12-CV-804-WMC,2015WL1000015(W.D.Wis.Mar.5,2015)

An employee brought acRon against her former employer forviolaRonof FMLAand theAmericanswithDisabiliResAct (ADA)arisingfromherterminaRonforaUendanceissues.

A RECENT HEALTHCARE FMLA CASE

1USDepartmentofLaborWageandHourDivision,2017FiscalYearStaRsRcs

7

Direct Costs of Absence as % of Payroll

All paid time off: 8.1%

Overtime costs: 5.7%

Replacement workers: 1.6%

All Direct Costs: 15.4%

7

= 7.3% of payroll each year

A B S E N T E E I S M I S E X P E N S I V E

PROPRIETARY & CONFIDENTIAL

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A B S E N T E E I S M I S E X P E N S I V E

PROPRIETARY & CONFIDENTIAL

Unscheduledabsenceisregularfull-RmeemployeesnotreporRngtoworkasscheduled.Withmorethan500legalreasonsforemployeestocallout,thevolumeandcomplexityofunscheduledabsencerepresentssignificantcomplianceandadministraRvechallengesforemployers.

•  Costsemployers15.4%ofpayrolleachyear(morethanhealthcarecoverage,13.6%1)

•  8.1%salaryconRnuanceforregularly-scheduledworkers

•  7.3%laborreplacementpay(over;me)•  Costisevengreaterforlarge,complexemployers

withdiverseworkforcesworkingremotelyorinthefield

•  ProperFMLAadministraRon,includingcoordinaRonofbenefitswithcollecRvelybargainedandotheremployer-sponsoredbenefits,reducescostandliability

Replacement Labor

(per diem, overtime),

7%

LOA salary, benefits

continuation, 8%

Short-term disability,

0.5%

LOA Administration,

0.1%

Healthcare, 13%

Regularly-scheduled labor, 70%

FIXEDCOST(payingthisanyway–regularpayroll,benefits,taxes)VARIABLECOST(payingthisaslongasyouhavetoreplaceabove)

PAYROLL

1Mercer/KronosTotalFinancialImpactofEmployeeAbsence,2018

9 9

Statistics fail to fully capture

•  size, diversity and complexity of NY counties

•  mandatory short-term disability benefit in NY

•  labor replacement requirement for counties

(police, fire, maintenance, transportation)

N E W Y O R K C O U N T I E S A R E U N I Q U E

PROPRIETARY & CONFIDENTIAL

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L E N G T H O F L E A V E M A T T E R S 1

PROPRIETARY & CONFIDENTIAL

=87daysperleave1

1averagedaysperconRnuousleaveasreportedbyemployersadministeringleavein-house

LOCATIONS WORKERS RULES

+ + +

C o m p l e x i t y o f c o u n t i e s m a k e s l e a v e a d m i n m o r e d i f f i c u l t

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ESTABLISHEDTESTEDPROVENOPTIMALSHOULDDOSIC-SPECIFIC

B E S T P R A C T I C E S

•  Outsourced

•  Centralized, single-source

•  Concurrent management

•  Clinical expertise

•  Real-time analytics

•  Industry specialization

PROPRIETARY & CONFIDENTIAL

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S T R U C T U R E P R O C E S S R E S O U R C E O V E R V I E W

PROPRIETARY & CONFIDENTIAL

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Leave of Absence Claim Map

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AbSolve STANDARD: PREVENT & MINIMIZE ABSENCE (DAY 1)

INDUSTRY STANDARD: PREVENT LTD (DAY 181)

PROPRIETARY & CONFIDENTIAL

A B O U T A B S O L V E | P R O C E S S

15

16 PROPRIETARY & CONFIDENTIAL

C O S T S A V I N G S R O I I L L U S T R A T I O N

17

Reduction in Average Length of Leave Shift Hours Saved

per Leave Regular Pay Saved

per Leave1 Replacement Pay Saved

per Leave1 Total Pay Saved

per Leave1

1 day 8 $280 $140 $420

1 week 40 $1,400 $700 $2,100

2 weeks 80 $2,800 $1,400 $4,200

3 weeks 120 $4,200 $2,100 $6,300

1 month 160 $5,600 $2,800 $8,400

ASSUMPTIONS

Industry: Government

Hourly Wage1: $35 Schedule: 40 hours per week

Replacement: 50%

W H A T A D I F F E R E N C E A D A Y M A K E S

PROPRIETARY & CONFIDENTIAL

1Basedon2019NewYorkStateAverageWeeklyWage(AWW)of$1450.17;assumesthesamehourlypayrateandscheduleforreplacementlaborasregularly-scheduledlabor

+ =

IdlePay

50%replacement

About AbSolve AbSolve is a Custom Absence Management Program solutions provider with a proprietary and distinct insurance and administration model. Recognized for applying entrepreneurial thinking, leading-edge technology, and above and beyond client service to help hospitals better manage routine and complex employee leave programs, our unique business model empowers all employees with resources to directly align the firm’s strengths with the interests of our clients across four core lines of business: Advisory, Benefits Administration, Compliance and Analytics.