Full Text of Sample Intranet-Ready Employee Handbook http://members.aol.com/mattlawfrm/manfull.html#one#one Table of Contents Preface: Welcome Aboard Section One: Corporate Philosophy on Courtesy and EEO Section Two: Payroll, Personnel and Administration Section Three: Benefits Section Four: Leaves & Approved Absences Section Five: Safety Section Six: Business Operations Section Seven: Conflicts of Interest Section Eight: Discipline and Termination Section Nine: Rules of Conduct Section Ten: Problem Resolution Procedure Exhibit A: Drug Testing Policy Exhibit B: Sample Forms Table of Contents Legal Notice Preface: Welcome Aboard A Brief History of Our Company We are glad that you decided to join our Company, and want to tell you a bit more about who we are, what we do, and how we do our work here. Our Company was founded xx years ago, by zzz and yyy. [Brief intro and overview of the Company's history and products] Company Goals The Company's goal is to develop a team of happy, loyal and productive workers who are eager to help the Company produce quality products for its customers at a reasonable cost, so that the Company will generate sufficient profits to permit continued growth for the Company and create continued opportunities for employment and advancement for all employees. Our employees are a part of our Team. The key to the success of any Team is mutual support, respect and tolerance of any differences. To build an environment of trust, it is essential that all of us openly communicate our desires and expectations, and try to work together in a courteous manner to resolve our differences. Purpose of this Handbook This handbook was developed to communicate the employee benefits available to eligible employees, and to provide some general guidance about Company rules and operating procedures which the Company believes will be useful to all employees. This handbook sets out general policies which the Company uses in hiring, management, compensation, vacations, discharge and other aspects of the employer/employee relationship. We also will try to keep the lines of communication open through periodic notices to employees, as well as periodic employee meetings. Open Communication is Encouraged Communication is a two-way street. As a result, employees are encouraged to openly talk with their supervisors and managers about ideas which they may have to improve Company operations, and to discuss any problems which may prevent the operations from running in an efficient professional manner. Employees also are encouraged to talk openly with their supervisors about any concerns which they may have with respect to their particular working conditions. It is the job of our supervisors to act as a link between employees and upper management, and to help the employee to get answers to questions or concerns. So, don't be afraid to talk with your supervisor and ask for his/her assistance in getting answers to your questions. Changes/Revisions/Interpretations of Guidelines Obviously, no employee handbook can anticipate every circumstance or question which may arise in the workplace. Furthermore, it is virtually impossible to write any guideline which can be fairly applied to all situations at all times. Common sense or good judgment may dictate that exceptions should be approved in certain circumstances, or that certain policies should be abandoned as unworkable based upon past experience. Therefore, the Company reserves the right to interpret, modify, revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate. Such revisions may be made in the Company's sole discretion and may be made with or without prior notice. To the extent that policies in this Handbook vary from prior policy or practice, the provisions of this Handbook will govern. In compliance with federal benefits law (ERISA), changes in policies pertaining to benefits normally will be made prospectively if the change appears to adversely affect benefit rights which have accrued and vested. We are Firm Believers in the Free Enterprise System The Company is a firm believer in the free enterprise system, and in the importance of flexibility and independence for both employers and employees. In keeping with this philosophy, the Company believes that employees should have the unfettered right to quit a job if they don't like it, or if they want to move somewhere else, or if they want to further their education, or maybe just stay home to take care of children or aging parents. Just as the Company believes that employees need this flexibility to run their own lives effectively, the Company wants the same flexibility to run its business. As a result, employees should be aware that this Handbook is not intended to create any employment contract with them which promises that they will be employed for any set period of time. In particular, the provisions in this handbook are not intended to create any promise for lifetime employment or any guarantee that employees will be discharged only for "cause." Unless you are a top level executive who has negotiated a written employment contract, signed by the President and approved by the Board, your employment is considered to be "at will." This means that either you or the Company can end the employment relationship at any time for any reason. Of course, we hope that you will like it here - and that you will be such a terrific asset to our Company that we would hate to lose you. And, we hope that we can make this such a terrific place to work that you would hate to leave. But, we realize that some employees will leave for all sorts of reasons (transfer of a spouse, college graduation, starting a family, etc.), and that we may have to ask others to leave for all sorts of reasons (including inability to do the job, or inability to get to work on time or at all, or inability to get along with supervisors or coworkers). So, our relationship may be for a short time or for many years. Regardless of how long we will work together, we do know this. If we treat one another courteously and with genuine good will, try to walk a mile in each other's shoes and see both sides, listen to one another, and try to deal with each other in an honest and fair fashion, we believe that everyone will benefit from our relationship and be glad for the time which we spend together. Welcome to our Team! Table of Contents Legal Notice Section One: Corporate Philosophy on Courtesy and EEO The Company firmly believes in the philosophies behind the “Golden Rule” of treating those with whom we come in contact in our work with the same courtesy, professionalism and respect which we would like to be shown ourselves. As a result, the Company strongly supports the concept of Equal Employment Opportunity, because we believe such policies benefit our business, our employees and our entire society. In keeping with this policy, all employees are expected to abide by applicable federal and state laws which prohibit discrimination against any employee or applicant for employment because of race, color, religion, sex (gender), national origin, age, disability, or status as a qualified disabled veteran or veteran of the Vietnam era. This includes providing reasonable accommodations to the religious beliefs of others, as well as providing reasonable accommodations for any ADA- covered disabilities which they might have. These same principles require our employees to abide by applicable federal and state non-discrimination laws in their dealings with customers, visitors, vendors and suppliers, including providing appropriate accommodations to disabled individuals in order to permit them comparable access to our services and facilities as provided to non-disabled individuals. Employees who receive requests for such accommodations should always ask for management guidance before rejecting an accommodation request. Consistent with our Golden Rule philosophy, all employees are expected to take personal responsibility to try to get along with others who may have different beliefs, backgrounds, or other differences, and to display common courtesy in their dealings with one another. The common courtesy which we expect of our employees includes: being careful to avoid teasing and unkind "jokes" or remarks about the personal characteristics of another person; avoiding workplace discussions of issues likely to generate disputes (such as politics, religion, and sex); avoiding racial, ethnic or sexually-oriented jokes; avoiding invasions of the personal privacy of others; and otherwise making genuine efforts to treat others with the same courtesy, consideration and respect which you would like to receive. It also means avoiding any use of position or power for personal gain or advantage (including using influence or position to engage in any conduct which would constitute harassment under this policy). There are a number of reasons why our Company places a strong emphasis on the use of common courtesy in dealing with others. The most important reason is that we believe that this policy helps us to establish an environment of trust within our Company which makes it much easier to work together productively, because this trust allows us to give one another the benefit of the doubt when problems arise. This environment of trust, in turn, makes it easier to resolve misunderstandings and work out satisfactory solutions if some mistake has been made. Anti-Harassment Policy: In the course of carrying out their duties for the Company, no employee, supervisor or manager has been given any authority by the Company to require any other employee, vendor, customer or supplier to enter into any type of sexual relationship, to demean any individual because of gender/sex, or to require any such person to listen to or participate in sexual discussions (including sexual jokes) which are unwelcome or offensive to such individual. Likewise, no employee, supervisor or manager has been given any authority to require any employee, vendor, customer or supplier to adopt any particular religious views, to demean any individual because of their religious views, or to require any such person listen to or participate in religious discussions which are unwelcome or offensive to that individual. Furthermore, no employee, supervisor or manager has been given any authority to demean any employee, vendor, customer or supplier because of their race or ethnic background or the existence of any disability, or to require any such individual to listen to offensive or unwelcome jokes or remarks based upon race, ethnicity or disability. Under the law, this type of rude behavior is also likely to be considered to be unlawful "harassment" if the employee knew that the conduct would be unwelcome or offensive (or the conduct was of the type which most reasonable people would have realized would be offensive under the circumstances). If offended, it is a good idea in most cases to give the other person the benefit of the doubt; courteously inform them that their conduct is upsetting; and give them a chance to correct the problem. However, common sense should prevail, and cases of serious misbehavior should be brought to the attention of management or Personnel (as should situations where offensive behavior continues, even after objection has been registered). All forms of harassment are forbidden, including harassment based on sex (gender), race, color, religion, national origin, age, disability or veteran status. Of course, it also should be obvious that such conduct is a serious violation of our Golden Rule philosophy. Any Company employee found to have engaged in unlawful harassment is subject to severe disciplinary action (up to and including discharge). The Company likewise does not expect its employees to put up with harassment by vendors, suppliers, customers or visitors. Any such harassment should be reported promptly, so that the Company can address the problem quickly. Using The Problem Resolution Procedure: Full details of the Problem Resolution procedure are set forth in a separate section of this handbook. Briefly summarized, employees should take the following actions if they believe that they have been subjected to harassment or other unlawful treatment in violation of our EEO Policy: If an employee believes that he/she has been treated rudely or offensively by another Company employee, the first step for the employee to take is to determine whether there is any reasonable chance that the offending party may have been unaware that the conduct was offensive. If so, then the employee should take personal responsibility to first try to resolve the situation by talking with the individual; advising the individual that the conduct was objectionable; and giving this individual an opportunity to correct the situation. Many times, offensive situations arise from thoughtlessness or insensitivity, or amount to clumsy efforts to joke or tease, without any true intent to do harm. Thus, a private discussion which gives the benefit of the doubt to the other party is often appreciated, and usually can lead to an amicable resolution of the problem. If the problem remains unresolved, then the complaint should be brought to the immediate supervisor (or next level of management, if the supervisor is involved), using the normal Problem Resolution procedure. On occasion, however, an employee may engage in conduct which most reasonable people know would result in serious offense to another (such as racial name-calling, or very explicit sexual jokes). In such a situation, the employee should promptly report the matter to the immediate supervisor (or the next level of management, if the supervisor is involved). Other employees also have a responsibility to report these types of problems if the affected employee is reluctant to report the matter, so that the situation does not escalate to the point where the work of everyone in the area becomes adversely affected by a poisoned atmosphere. In truly urgent situations where the personal wellbeing of the employee or of a coworker is seriously endangered by the conduct of a supervisor or another coworker (such as instances of attempted sexual molestation), the first step is to get to safety, and then to alert top management using the procedures set out for reporting serious supervisory misconduct. In the case of harassment by any outside vendor, customer, visitor or supplier, the procedure to follow depends upon the nature and severity of the harassment. Where no offense may have been intended by the outside individual (such as joke-telling by a salesman which offends some, but not others), it may be appropriate to try to handle the matter in the same way as when dealing with a coworker who has inadvertently done something offensive (unless the outside person is at a much higher level, in which case it may be better to ask the supervisor to handle the matter). Where the outside person is being verbally abusive (such as engaging in name-calling or using racial/sexual epithets), the employee should try to remain calm; keep notes of what was said; avoid confrontations (which only tend to escalate matters, and result in arguments over who started it); and send immediately for a supervisor to handle the matter. However, if the outside person has been or appears very likely to become physically abusive (including pushing, shoving, or grabbing), the employee should find any excuse to leave the area immediately, and then promptly find the nearest supervisor to handle the problem. Non-Retaliation Policy: The Company wants all employees to feel free to present workplace problems through its Problem Resolution procedure, and to feel free to insist on courteous treatment in compliance with this Policy. As a result, no retaliation is permitted against a person who has made a good faith complaint or report of a workplace problem (including a complaint of possible discrimination or harassment), or who has made a good faith request for an investigation into whether discrimination or harassment has occurred, in accordance with the Problem Resolution Procedure. Compliance with Affirmative Action Rules and Other Legal Requirements: In compliance with E.O. 11246 and its implementing regulations, as well as in compliance with other laws applicable to federal contractors and subcontractors, Company decisions regarding employment are designed to utilize only valid requirements for hiring and promotions, and to ensure equal employment opportunity in all other aspects of employment. Our policy of non-discrimination extends to: Employment, promotion, demotion, recruitment or recruitment advertising, layoff or discharge, rates of pay or other forms of compensation. The Company is committed to equal employment opportunity without regard to race, color, religion, sex (gender), disability, national origin. age or veteran status in connection with, but not limited to, hiring, placement, promotion, demotion, transfer, recruiting, advertising, solicitation, compensation, selection for training or termination of employment. To reaffirm and supplement the long standing commitment, the Company has adopted specific affirmative action plans (AAPs) to insure that these policies will be carried out. The Personnel Manager oversees the implementation and monitoring of our EEO policy, as well as our AAPs, but equal employment opportunity is considered to be the responsibility of all of our employees. The Company maintains required summaries of its AAPs in the Personnel office. Qualified handicapped individuals, as well as qualified disabled veterans and veterans of the Vietnam era, are encouraged to voluntarily self-identify in order to be considered for affirmative action under these AAPs. The Company is required by law to make reasonable accommodations for qualified individuals with disabilities, unless doing so would result in an undue hardship. This policy governs all aspects of employment, including selection, job assignment, compensation, discipline, termination, and access to benefits and training. If an employee has a disability or impairment which is creating job difficulties or requires an accommodation, this matter should be brought to the attention of the supervisor or the Personnel Manager. The Company is also obligated to comply with the Immigration Reform and Control Act of 1986, and cannot employ any individual unless they are a citizen of the United States or an alien with proper authorization to work in the United Sates. Each new employee must complete the Employment Eligibility Verification Form I-9, and present documentation establishing identity and employment eligibility. Employees with questions on immigration law issues are encouraged to contact the Personnel Manager. Table of Contents Legal Notice Section Two: Payroll, Personnel, and Administration Importance of Accurate Data Personnel Data Changes Employment Categories Introductory Period Normal Business Hours Time Clock Practices and Timekeeping Overtime Paydays Administrative Pay Corrections Performance Evaluations Emergency Closing Business Travel Expenses Importance of Accurate Data The Company relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented throughout the hiring process and employment. Any misrepresentations, falsifications, or material omissions in any of this information or data may result in the Company's exclusion of the individual from further consideration for employment or, if the person has been hired, may result in termination of employment. It is the practice of the Company to check employment references of all employees. Return to Section 2 Index Personnel Data Changes It is the responsibility of each employee to promptly notify the Company of any changes in personnel data. Personal mailing addresses, telephone numbers, number and names of dependents, individuals to be contacted in the event of an emergency, educational accomplishments, and other such status reports should be accurate and current at all times. If any personnel data is changed, the employee must notify the Personnel Manager. Return to Section 2 Index Employment Categories Each employee is designated as either NON-EXEMPT or EXEMPT from federal and state wage and hour laws. NON-EXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT employees are excluded from the overtime provisions of federal and state wage-hour laws. REGULAR FULL-TIME employees who are regularly scheduled to work the Company's full-time schedule and are not employed in a temporary, casual or introductory status. Generally, regular full-time employees are eligible for the Company's full benefit package, subject to the terms, conditions, and limitations of each benefit program. INTRODUCTORY employees are those whose performance is being evaluated to determine whether regular full-time employment in a specific position is appropriate. TEMPORARY employees are those who are hired as interim replacements, usually to temporarily supplement the work force or to assist in the completion of a specific project. Employment assignments in this category typically are of a limited duration. Employment beyond any initially-stated period does not in any way imply a change in employment status. Temporary employees retain that status unless and until notified of a change. While temporary employees receive all legally mandated benefits (such as workers' compensation insurance and Social Security), they will be ineligible for the Company's other benefit programs. CASUAL employees are those who have established an employment relationship with the Company, but who are assigned to work on an intermittent and/or unpredictable basis. While they receive all legally mandated benefits (such as workers' compensation insurance and Social Security), they are ineligible for all of the Company's other benefit programs. PERMANENT PARTTIME employees are those who are regularly scheduled to work for less than 40 hours per week. In general, parttime employees will not be eligible to receive most Company benefits other than those available to temporary and casual employees (although, in some cases, they may qualify for holiday pay or reduced pension coverage if working in excess of a half-time basis). The Personnel Manager should be consulted about benefit eligibility. Return to Section 2 Index Introductory Period All employees (except temporary and casual workers) will work on an introductory basis for the first 90 calendar days after their date of hire. This introductory period is intended to give new employees the opportunity to demonstrate their ability to achieve a satisfactory level of performance and to determine whether the new position meets their expectations. The Company uses this period to evaluate employee capabilities, work habits, and overall performance. Any significant absence will automatically extend an introductory period by the length of the absence. Where the Company determines that the designated introductory period did not allow sufficient time to thoroughly evaluate the employee's performance, the introductory period may be extended. Upon satisfactory completion of the initial introductory period, employees enter the "regular" employment classification. Employees who are promoted or transferred within the Company after completion of their initial Introductory period must complete a secondary Introductory period of 90 calendar days with each assignment to a new position. If moving from one regular full-time position to another regular full-time position, this new introductory period will have no effect on benefit participation. However, employees moving to a regular full-time position from any classification which is not a regular full-time position must complete an initial introductory period as a regular full-time employee before they will be eligible for benefits offered only to regular fulltime employees. If an employee fails to satisfactorily complete the initial introductory period, the employee will be terminated. If the employee fails to satisfactorily complete an introductory period after moving to a new position, the employee usually will be allowed to return to his or her former job or to a comparable job for which the employee is qualified, depending on the availability of such positions and the company's needs. All employees are eligible for those benefits that are required by law, such as workers compensation insurance and Social Security, regardless of their classification. Upon becoming regular fulltime employees, they may be eligible for additional Company benefits. Any such benefits will be subject to the terms and conditions and eligibility restrictions of each benefits program. Employees should read the information for each specific benefits program for the details on eligibility requirements. Return to Section 2 Index Normal Business Hours Regular office hours are Monday through Friday, 8:00 A.M. to 4:30 P.M., with a thirty minute lunch period. Plant employees and other non-office personnel may have different regular work hours. Consult your supervisor if you are unsure about your regular hours of work. All personnel are expected to be at work at their assigned time of arrival, ready to work. It is the employee's responsibility to inform the supervisor before the start of the work period if unable to report for work. Failure to do so may result in severe penalties. Personal business should be arranged outside of regular work hours, if at all possible. If it is not possible to arrange personal business at a time outside of work hours, refer to the Leaves section or talk with your supervisor to find out the procedures and requirements which must be followed in order to ask for permission to take time off work. However, unless accrued paid leave can be applied to the absence, or unless the work can be made up, the absence may be treated as unexcused. Time off for non-exempt employees usually is without pay, unless the employee is allowed to apply accrued leave to the absence. Exempt employees usually will be expected to make up the lost time if less than one full day of absence (and they may be docked for absences of one full day or longer, unless available paid leave can be applied to the absence or unless docking is not permitted under the FLSA). The Leaves section contains further information regarding pay during missed time from work. ;Any questions should be referred to Personnel. Return to Section 2 Index Time Clock Practices and Timekeeping Accurately recording of time worked is the responsibility of every non-exempt employee. Federal and state laws require the Company to keep an accurate record of time worked by non-exempt employees in order to calculate employee pay and benefits. Non-exempt employees should accurately record the time they begin and end their work, as well as the beginning and ending time of each meal period. They should also record the beginning and ending time of any split shift or departure from work for personal reasons. Employees should not work overtime without obtaining the permission of the supervisor. All overtime work must be recorded on time sheets. Altering, falsifying, or tampering with time records (including punching in a time card for another employee) may result in disciplinary action, up to and including termination of employment. Non-exempt employees should report to work no more than 10 minutes prior to their scheduled starting time and should not stay more than 10 minutes after their scheduled stop time without prior authorization from their supervisor. It is the responsibility of every employee to sign his/her own time records to certify the accuracy of all time recorded. The supervisor will review and then initial the time record before submitting it for payroll processing. If corrections or modifications are made to the time record, both the employee and the supervisor normally will be required to verify the accuracy of the changes by initialing the time record. Return to Section 2 Index Overtime When operating requirements or other needs cannot be met during regular working hours, employees will be given overtime work assignments. Overtime is mandatory, and failure to work scheduled overtime will be considered an unexcused absence which will subject the employee to disciplinary action. Non-exempt employees are entitled to overtime pay at the rate of 1.5 times their regular hourly rate if they work over 40 hours in a workweek. Our workweek is considered to start at 12:01AM on Monday and ends at 12:00 midnight on Sunday. Overtime is not paid unless the hours are actually worked, so unworked time (such as sick days, vacations days, etc.) will be excluded in determining whether the employee is eligible for overtime pay. Non-exempt employees are not permitted to decide on their own initiative that they will work overtime, as this could cause the Company to be required to make large unexpected payments for time which it never needed or expected to have been worked. All overtime work must receive the supervisor's prior authorization. Working more than 40 hours per week without obtaining express approval by the supervisor may subject a non-exempt employee to disciplinary action, up to and including discharge. Non-exempt employees should not report for work more than 10 minutes before their scheduled starting time, and should remain outside their work areas until the start of their shift. Likewise, such employees should stay out of their work areas during scheduled lunch breaks. Return to Section 2 Index Paydays All employees are paid biweekly on every other Friday. Each paycheck will include earnings for all work performed through the end of the previous payroll period, less any advances and deductions. In the event that a regularly scheduled payday falls on a day off (such as a holiday), employees normally will receive pay on the last day of work before the regularly scheduled payday. If a regular payday falls during an employee's vacation, the employee's paycheck will be available upon his or her return from vacation. Return to Section 2 Index Administrative Pay Corrections The Company takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck, and that employees are paid promptly on the scheduled payday. In the event that there is an error in the amount of pay, the employee should promptly bring the discrepancy to the attention of the Personnel Manager so that corrections can be made as quickly as possible. Errors on time cards that have been signed and initialed will be corrected on the following payday. Payroll processing errors will be corrected as soon as possible. Return to Section 2 Index Performance Evaluations Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Formal performance evaluations are conducted at the end of the introductory period. Thereafter, periodic performance appraisals should be completed at least once per year (and may be completed more often where extra counseling appears appropriate). On occasion, a supervisor may forget that an appraisal is due because of other work pressures. Employees are encouraged to speak up and request their appraisals if overdue, as raises generally are not given until a satisfactory appraisal has been completed for the employee. Return to Section 2 Index Emergency Closing At times, emergencies such as severe weather, fires, or power failures may disrupt company operations. In extreme cases, these circumstances may require the closing of a work facility. When operations are officially closed due to emergency conditions, the time off by non-exempts will be unpaid (and time off of full workweeks for exempts also will be unpaid). However, with supervisory approval, employees may use available paid leave time, such as unused vacation benefits, to cover the lost time. If the closure is prolonged, employees may be eligible for unemployment compensation to assist them in replacing income lost due to the emergency closure. Non-exempt employees in essential operations may be asked to work on a day when operations are officially closed. In these circumstances, those employees who work will receive regular pay (including overtime, where applicable). Return to Section 2 Index Business Travel Expenses The Company will reimburse employees for reasonable business travel expenses incurred while on assignments away from the normal work location. All business travel must be approved in advance by the supervisor or manager. Employees whose travel plans have been approved should make all travel arrangements through the Company's designated travel agency. Arrangements for air travel are to be made through the authorized company travel agent. If departure time is known far enough in advance, all efforts are to be made to secure the lowest possible fare. All frequent flyer mileage and all other bonus plans offered by airlines are the property of the Company, and the use of any bonus awards are determined solely by the Company. When approved, the actual costs of travel, meals, lodging, and other expenses directly related to accomplishing business travel objectives will be reimbursed by the Company, if same is paid by an employee. Employees are expected to limit expenses to reasonable amounts. Cash advances to cover reasonable anticipated expenses may be made to employees after travel has been approved. Employees should submit a written request to their supervisor when travel advances are needed.Out of pocket expenditures of cash by company employees who claim cash reimbursement must submit detailed expense accounts at the time of the reimbursement claim. The expense record must show the amount, date, place, what the expense was for, with whom the expense occurred and must be accompanied by a receipt, voucher or other source document. Employees should contact their supervisor for guidance and assistance on procedures related to travel arrangements, travel advances, expense reports, reimbursement for specific expenses, or any other business travel issues. Employees who are involved in an accident while traveling on business must report the incident to their immediate supervisor, as soon as practicle. Vehicles owned, leased, or rented by the Company may not be used for personal use without prior approval. The Company issues gasoline and other credit cards to certain employees. In all cases, those issued cards are responsible for the accuracy of the charges, and any accompanying records. Charges for anything other than direct company business is grounds for dismissal. All credit card transaction documents shall be submitted to accounts payable as soon as possible. Charges appearing on charge card statements not supported by receipts will be paid by the individual responsible for the charge. Closing date for submitting charge card receipts is the tenth of the month following actual date of the charge. Abuse of this business travel expenses policy, including falsifying expense reports to reflect costs not incurred by the employee, can be grounds for disciplinary action, up to and including termination of employment. Return to Section 2 Index Table of Contents Legal Notice Section Three: Benefits Introduction Very brief overviews of our existing benefit programs are contained in this handbook. However, many of the benefit plans (such as the insurance and profit- sharing plan) are covered by federal law (ERISA), which require a detailed Summary Plan Description (SPD) of the provisions of these plans. You will be furnished with an SPD for those plans for which you are eligible, and may review the full text of any of the plans by making a request to Personnel. Please note that the full text of the official documents will govern in the event of any conflicts or ambiguities with any summaries (including any summaries provided in this handbook). While we hope that this Manual will provide some basic background information about program participation requirements, some of the requirements may be rather technical or confusing. Your supervisor or the Personnel Manager will be happy to provide further information about each of the programs for which you are eligible. Feel free to ask if you are not sure. The Company reserves the right to alter, modify or eliminate its benefit plans at any time, as well as to administer and interpret all aspects of such plans to the fullest extent of discretion permitted by applicable federal or state law. Significant changes in plan with vested benefits ordinarily will not be retroactive, unless permitted by applicable law. All employees, regardless of classification, are eligible for Social Security contributions on their behalf; are covered by Workers Compensation insurance if injured on the job; and are covered by unemployment compensation insurance if their employment is terminated through no fault of their own or where laid off due to lack of work. In addition to these benefits, employees who are permanent part-time employees also may be eligible for coverage under FMLA or the Profit- Sharing Plan if they meet certain required minimum service and hours-worked requirements, and also may be eligible for holiday pay under certain limited circumstances. Regular full-time employees are eligible for each of the benefit programs of the Company which are listed below, subject to eligibility requirements and any limitations or conditions of each program. Social Security Coverage Workers Compensation Coverage Unemployment Compensation Insurance Health Insurance Health Benefits Continuation Life Insurance Holidays Profit-Sharing Plan Educational Assistance Vacation and Other Forms of Leave (see Leaves section) Social Security Coverage Every pay period, you and the Company will contribute a significant percentage of your wages (currently about 7.7% each) into the Social Security system, including Medicaid. This money provides certain important benefits for each employee. The benefits offered by Social Security include disability payments and medical insurance for you if you become totally disabled for any reason prior to normal retirement; survivor benefits to your spouse and minor children if you die; and also retirement benefits and health insurance for you and your spouse when you reach retirement age. Information about available Social Security benefits may be obtained from your nearest Social Security office. Some general information also is available from the Personnel office. Return to Section 3 Index Workers Compensation Coverage The Company is required to purchase workers compensation insurance on each employee, at a substantial annual cost. This insurance provides important benefits to an employee who sustains an on-the-job injury while doing work for the Company. Benefits provided include: payment of all costs of medical care needed for the injury (including necessary rehabilitation); payment of temporary disability payments during the time that the employee cannot work due to the injury; certain lump sum payments for any permanent residual disability which may limit future employment prospects of the employee; and payment for retraining if the employee is unable to return to the former occupation. The benefits are administered by the state workers compensation court (with benefits other than medical payments usually being established through a schedule fixed by the court). The forms needed to apply for such coverage are available through Personnel, and will be filed for you upon prompt notice of any on-the-job injury. Certain strict time limits apply on these claims, so it is very important to give prompt notice of any injuries to your supervisor and/or Personnel. Return to Section 3 Index Unemployment Compensation Insurance The Company pays premiums to the state unemployment insurance fund in order to provide unemployment insurance for its employees. This fund is designed to pay for unemployment benefits in cases where the employee is out of work through no fault of his/her own. Benefits are available when employment is terminated or suspended as a result of a layoff due to lack of work, and also may be available where employment is terminated due to inability of the employee to perform assigned work despite earnest effort to meet expectations. Benefits also may be available if the employee left due to a substantial alteration in pay or working conditions. Claims for unemployment compensation are handled through the offices of the State Employment Service, which make an initial assessment of the claim, and then can hold hearings if there is a question or dispute about whether the employee is eligible for benefits. Return to Section 3 Index Health Insurance The Company will pay a portion of the monthly premium for health insurance coverage for regular full-time employees once they have successfully completed their 90-day introductory period. The contribution required from the employee for coverage depends on various factors, including whether family members are to be covered and the type of plan selected. The employee's share of the health insurance premium payable is withheld from the first paycheck of each month. Information about the health insurance plan is available from the Personnel Manager. New employees who have been (or still are) covered by other health plans within 24 months of hire should obtain a certificate of prior coverage from their old plan, as this prior coverage may allow the employee to join the Company's plan without exclusion of pre-existing conditions (or could reduce the time period during which the exclusion applies), depending on whether a significant break in prior coverage has occurred. Return to Section 3 Index Health Benefits Continuation Federal law (COBRA) gives employees and their qualified beneficiaries the opportunity to continue their existing health insurance coverage under the Company's health plan for a period of time after the occurrence of a "qualifying event" which otherwise would result in the loss of coverage. Some common qualifying events are termination of employment (whether by resignation, layoff, discharge or even death); a substantial reduction in an employee's hours; an extended non-FMLA leaves of absence; or legal separation or divorce of the employee and his/her spouse. When such a qualifying event occurs, the Company will notify the employee of the right to continue health insurance coverage under COBRA, as well as the time limits and triggering events which are applicable in order to continue coverage. To continue coverage, the employee (or beneficiary) must timely elect to exercise their COBRA rights and must timely pay the total premiums required for coverage (including their own share and the Company's share, as well as an administrative fee). Upon request, the Company also will provide a written notice to covered family members which describes their separate rights under COBRA (such as the rights of a divorced spouse to continue coverage by payment of applicable premiums). It is very important to keep Personnel advised of changes within the family unit, so that the appropriate notices may be sent in a timely manner. Return to Section 3 Index Life Insurance Regular full-time employees who wish to purchase life insurance at group rates may choose to enroll in the optional group life insurance program. All premiums are paid by each individual employee for the level of coverage selected, through the convenience of automatic payroll deductions. Details about this insurance plan may be obtained through the Personnel Manager. Return to Section 3 Index Holidays The Company observes the following holidays: New Year's Day (January 1) Memorial Day (last Monday in May) Independence Day (July 4) Labor Day (first Monday in September) Thanksgiving (fourth Thursday in November) Christmas Eve (December 24) Christmas (December 25) New Year's Eve (December 31) The Company will grant paid holiday time off to all regular full-time employees, as well as permanent part-time employees regularly working 20 or more hours per week who otherwise would have been scheduled to work on the holiday. Holiday pay will be calculated based on the employee's straight-time pay rate (as of the date of the holiday) times the number of hours the employee otherwise would have worked on that day. To be eligible for holiday pay, employees must work the last scheduled day immediately preceding the holiday, as well as the first scheduled day immediately following the holiday. If a recognized holiday falls during an eligible employee's paid absence (such as vacation or sick leave), the absence for this day shall be credited to holiday pay instead of the other leave account. For example, if the employee is on vacation over the Memorial Day holidays, he would not be charged for a vacation day for Memorial Day and would instead receive regular holiday pay for that holiday. If eligible non-exempt employees work on a recognized holiday, they will be paid double time for all hours worked on the holiday in lieu of receiving holiday pay. Return to Section 3 Index Profit-Sharing Plan The Company has a retirement plan in the form of a profit-sharing plan. A copy of the Trust provisions, as well as a Summary Plan Description, may be obtained through your supervisor or through Personnel. Return to Section 3 Index Educational Assistance The Company has developed an educational assistance program to encourage personal development through formal education, so that employees can maintain and improve job-related skills. This program is open to all regular full-time employees. In order to be eligible for educational assistance, individual courses or courses which are part of a degree, licensing, or certification program must be related to the employee's current job duties or to a foreseeable future position in the organization. An employee who desires to receive educational assistance must apply to his supervisor and Personnal for approval of the course before enrollment. The Company has the sole discretion to determine whether a course qualifies for educational assistance. Upon receiving approval, the employee will be eligible for tuition assistance when he can produce evidence of satisfactory completion of the course with a grade of C or higher. Such assistance will amount to reimbursement to the employee of one-half of the cost of tuition and books for the course (and will be conditioned upon a commitment by the employee to repay all educational assistance payments received within the last twelve months of his employment if he quits before having worked a full twelve months after such payment). Return to Section 3 Index Table of Contents Legal Notice Section Four: Leaves & Approved Absences The purpose of this Section is to identify the common reasons that employees request time off work, and to provide some guidelines on when the Company will treat such absences as excused (so that no disciplinary action will be taken for the absence). Obviously, not every possible situation can be envisioned or identified, and the Company retains the right to decide whether a particular absence should be excused in any particular situation. General Guidelines on Attendance Funeral Leave Military Leave Court Attendance & Jury Duty Voting Time Job-Related Injury Leave Vacation Short-Term Personal Time Off Sick Pay Personal Leaves of Absence Flextime Maternity/Paternity Leave FMLA Leave General Guidelines on Attendance Certain types of leave are required by federal or state law. These types of leave includes leave to obtain treatment for work-related injuries; FMLA leave (including pregnancy leave); military leave; time needed to vote; and appearance in court for jury duty or in response to a subpoena. The Company will grant an approved absence if an employee needs leave for these reasons, upon receipt of a timely notice for such leave; proper verification of the need for such leave; and completion of any necessary forms and paperwork for the leave. In addition to these government-required leaves, the Company realizes that times will arise when an employee may need to take time off from work because of minor illness or in order to attend to various civic, personal or family matters which cannot be handled outside of the normal work day. By the same token, when an employee misses work (especially if the work cannot be made up), this creates a hardship on the Company and on other coworkers who need to cover for the employee. Repeated absences, even for what may appear to the employee to be good reason, may result in disciplinary action (unless leave is required by federal or state law). Before the Company will consider making an effort to accommodate a request for time off from work for absences which are not covered by federal or state laws, the Company needs to receive as much advance notice as possible of any anticipated absence. Requests for time off are more likely to be approved where considerable advance notice is given; the reason for the absence is legitimate and verifiable; the nature of the absence requires that the employee miss all or part of the normal workday; the employee has presented a workable plan for making up missed work and/or can propose a workable redistribution of his work to others during the absence; and the employee has remaining paid leave time available which may be applied to the absence. Where the employee has given little or no notice of the absence and the absence was avoidable with reasonable care (e.g., forgot to set alarm or overslept), the absence is very likely to be treated as unexcused - even if the employee is allowed or required to make up the time. Employees should keep the following factors in mind in requested time off from work: 1. If we didn't need you at work, we would not have hired you. Thus, every effort should be made to keep any absences from work to a bare minimum. 2. Any situation where the employee is absent from the job during the normal workday (including situations where the employee comes in late, leaves early, takes a long lunch period, or leaves/returns at some point during the workday) is treated as an "absence" unless it falls within an applicable grace period. 3. Most employees will be allowed an occasional 5-10 minute grace period at the start of the day to allow for occasional traffic problems or weather delays if the time is made up during the same day. Check with your supervisor, however, as certain production jobs and customer service jobs have very strict reporting times. Likewise, in situations where common sense dictates that the employee should have used extraordinary effort to show up on time (such as for an important customer meeting), no grace period will apply. 4. Employees who abuse grace periods may be subject to disciplinary action, even if the time is being made up. If you discover that you are consistently having trouble reporting at a particular time, you should talk with your supervisor about possible flextime scheduling BEFORE getting into disciplinary trouble. 5. Good reason and advance notice must be given for any non-emergency absence, or the absence will NOT be treated as excused. 6. Even if good reason (in the eyes of the employee) may have been given to request time off, the Company retains sole discretion to decide whether or not to excuse the absence (unless approval of the absence is required by applicable state or federal law). 7. Requests for time off may be denied based upon such factors as existing work loads; earlier leave requests by others in the group; and your own prior work history, attendance and disciplinary record. In this Company, long-term good employees who rarely miss work are more likely to receive special consideration than brand-new employees who are often absent or late and who don't work very hard when they are here. 8. Failure to provide as much advance notice as possible of a proposed absence may result in denial of permission for the absence or insistence that the absence be postponed to a later date. 9. Except for true emergency situations, non-scheduled absences are not acceptable and will result in the absence being treated as unexcused. 10. Any unexcused absence (whether for a foreseeable or emergency absence) is grounds for disciplinary action. The degree of discipline to be imposed will depend on the prior work history of the employee; the promptness of the employee in providing notice (even if belated); the justification provided for the absence; and the attitude displayed by the employee in the situation (demonstration of defiance, insubordination, or lack of concern over compliance with company rules will be dealt with more severely than where the employee demonstrates sincere concern over the absence and has a concrete plan in place to prevent future absences). 11. The issue of whether the absence will be excused is different from the decision on whether the absence will be paid. Unless the employee has available paid leave time which applies to the absence, or the time can be made up, the time missed will be treated as unpaid if the employee is non-exempt (if exempt, the employee only will be docked for absences of one day or more unless the absence is covered by FMLA intermittent leave, or other conditions permit docking under the FLSA). 12. Once paid leave time of a particular type has been exhausted, any additional leave granted for the same reason normally will be unpaid. Thus, if an employee has already used all available bereavement pay for the year, the employee may be granted permission to miss work to attend a funeral of a different relative - but the employee will not receive any paid leave for the time missed (subject to FLSA requirements applicable to exempt employees). 13. The employee must meet all conditions for the leave in order to be entitled to the leave. For example, if no family member has died during the year or the employee has no illnesses covered by sick pay, an employee is NOT entitled to fake an illness or fake the death of a relative in order to get additional time off. 14. Do not believe a coworker or buddy who tries to convince you that you are entitled to make up some phony excuse to be off because these are days which "you had coming". If you falsify the reasons for a leave request, you will be fired immediately. Return to Section 4 Index Funeral Leave Employees are provided with a maximum of three days of paid bereavement leave per year. Bereavement pay is payable only for the time which the employee needs to miss work in order to attend the funeral of one of the following relatives: the employee's spouse, or the parent, child, sibling, grandparent or grandchild of the employee. Bereavement pay is calculated based on the base pay rate at the time of absence, and will not include any special forms of compensation, such as incentives, commissions, bonuses, or shift differentials. In order to allow an employee to deal with the particular trauma of the death of the employee's spouse or minor child, the Company normally will allow the employee to take additional time off (either by granting an unpaid leave of up to two additional weeks or allowing the employee to apply up to two weeks of accrued vacation time to the absence). The employee should coordinate with the Personnel Manager and supervisor, if the employee wishes to obtain extended leave in such instances. Requests for funeral leave must be made as soon as the employee is aware of the need for leave, and must include appropriate information to allow the Company to verify the need for the leave (including full name of the deceased, relationship to the employee, as well as name/address and phone number of the funeral home). Fraudulent requests for funeral leave are grounds for immediate discharge. The Company also realizes that employees may wish to attend funerals of other persons (including in-laws, close friends, or family members beyond the immediate family) after the available bereavement pay for the year has been used. In such cases, if workloads permit, the Company may allow the employee to take up to 3 days off without pay to attend the funeral, or to apply vacation days to the time off (up to a maximum of 3 days). As a general rule, if the funeral is within 75 miles of the facility, no more than one day of leave may be allowed. If the funeral will take place over 75 miles from the facility, additional leave time may be granted (up to 3 days of leave). Return to Section 4 Index Military Leave The Company will comply with all applicable legal requirements regarding leave for employees who are absent due to military service. If you are going to be absent due to military service, please check with the Personnel Manager so that arrangements can be made for such leave. Return to Section 4 Index Court Attendance & Jury Duty The Company will grant leave to employees who must be absent due to jury duty. The Company may require proof of such court attendance. Employees on jury duty will receive their regular compensation, less jury pay, for the first ten working days of any such service. Additional jury duty time beyond ten working days will be unpaid (unless the employee chooses to apply available accrued leave time to the absence). However, any absence for jury duty will be considered to be excused, and during the period of jury service the employee will be treated in the same manner as any employee on unpaid personal leave. If an unpaid leave will present an undue hardship to the employee, the employee should advise the court of this fact at the time of jury selection. Employees who wish to make court appearances in their own litigation should make advance arrangements to request time off for such appearances. Vacation time normally may be applied to the absence, if such time is available and advance arrangements have been made. Employees should be aware that court dates normally are set several weeks in advance. Failure to request time off in a timely manner may be viewed as grounds for denial of the leave and/or denial of the application of vacation time to the absence. As a result, employees may be well advised to inform their counsel of the need to receive timely notice of any court appearances (because "emergencies" created by neglect of counsel are not viewed as genuine emergencies by the Company). If the employee is subpoenaed to appear on behalf of another person in litigation to which the employee is not a party, the employee should follow the usual procedures for requesting personal time off. Absences for such appearances will be unpaid (subject to any FLSA requirements applicable to exempt employees), unless the employee is permitted to apply accrued vacation time to the absence. If an employee appears as a witness on behalf of the Company in any litigation, the time spent will be treated as working time and will be paid. Return to Section 4 Index Voting Time Most employees have adequate time to vote before or after work hours. If special arrangements need to be made to arrange adequate voting time, employees should request adjustment of their work schedules at least one day before the date of the election. Please contact Personnel or your supervisor to make such arrangements. Return to Section 4 Index Job-Related Injury Leave An employee who sustains an on-the-job injury will be granted a leave of absence while the employee is temporarily unable to perform the duties of his job (which is called "TTD"). This leave will run concurrently with any available FMLA leave, but can be extended for as long as the period of TTD continues (even if FMLA leave has expired). The injured employee has the responsibility of advising the treating physician(s) of the essential physical requirements of the job (or, where applicable, mental requirements), so that the physician can have the necessary information to assess when the employee will be able to return to work. The employee should contact the Personnel office to obtain a description of the essential functions of the job in question, and must promptly provide the same to all treating physicians. In addition, the employee may be required to provide a release to the Personnel Manager to contact the treating physician to obtain appropriate additional information needed to assess the ability of the employee to work. In most cases, the opinion of the treating physician will be sufficient to allow leave to be granted. However, on occasion, the assessment of the treating physician may be called into question. Such situations frequently arise where the employee has chosen to see a chiropractor or general practitioner who primarily handles workers compensation and car wreck claims, instead of a board-certified specialist in the type of injury sustained (such as a certified hand surgeon for a hand injury, or orthopedic specialist for a bone/joint injury, or neurologist for a nerve injury). Thus, employees who wish to avoid delays or unnecessary complications in the resolution of their claims may find that their claims will be handled more easily if they choose to obtain treatment from a recognized specialist in the area. While this does not guarantee that no differences of opinion will arise between their treating physician and physician hired by the insurance carrier to conduct an independent exam, such disputes tend to be less frequent and less severe when a recognized specialist is used for treatment of the injury. When the ability of the employee to return to work has been called into question, the Company reserves the right to condition additional leave upon prompt cooperation in an Independent Medical Examination or cooperation by the employee in the prompt presentation of the issue to the Court for decision. While the employee is recuperating, the employee should be aware that the Company has a limited ability to accommodate requests for temporary light duty. In situations where the doctor does not believe that the employee has recovered sufficiently to be given a full release to return, the employee should request that the doctor contact the Company to determine whether work can be provided which will meet the restrictions which the doctor believes to be necessary. On occasion, temporary light duty work only will be available in a different job classification, and the Company reserves the right to offer temporary reassignment to this position (with or without any change in pay) in order to allow the employee to return to work. Failure to accept a temporary light duty assignment can lead to termination of TTD pay, and may result in a ruling by the court that the remainder of any leave will be without pay. Once the employee has reached maximum medical improvement, the treating physician will issue a final impairment rating to assess if there is any residual permanent impairment. At this point, the employee also will be released from further medical care, but this release may be with or without restrictions. When this final release is made, the employee must bring a copy of the doctor's report to the Company. If released without restrictions before FMLA leave time has been exhausted, the employee will be reinstated to his former position as quickly as possible (except in cases where the job has been eliminated and/or persons of like status are on layoff status). Where restrictions have been imposed, the Company will assess whether reasonable accommodations are available which would permit the employee to perform his prior job, or whether other jobs are available which the employee could do with the restrictions imposed. On occasion, the injury may have been so severe that reinstatement is not possible. In such circumstances, the Company will make efforts to assist the employee in pursuing any retraining available under the workers compensation laws or to assist the employee in seeking a total disability determination from Social Security. Return to Section 4 Index Vacation Benefits Paid vacation time off is available to regular full-time employees to provide them with time away from work to attend to personal or family matters, and other personal pursuits. The amount of paid vacation time which employees will receive is governed by the years of service which they have accumulated. A year of service for vacation purposes is calculated starting with the date of hire and normally will run for twelve consecutive months thereafter (so each year of service typically will coincide with the anniversary date of the employee). However, the anniversary date may be adjusted for leaves of absence in excess of two weeks (unless otherwise prohibited by law). Vacation benefits accrue as follows: [See Options] Vacation pay is paid at the employee's base pay rate at the time of vacation. It does not include overtime or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials. Paid vacation time typically is scheduled in minimum increments of one-half day. Where the employee is using vacation pay for a FMLA-covered absence, however, different rules may apply. Check with Personnel in these situations to determine how your vacation pay may be applied to such an absence. [Options for Payment on Termination] [Options for Vacation Scheduling] Return to Section 4 Index Short-Term Personal Time Off For the purposes of the time-off and sick pay provisions of this section, members of the immediate family will be considered to be the spouse of the employee, and the parents, children and siblings of the employee. Relatives by marriage (in-laws) are not covered, nor are relatives beyond the immediate family. Procedure for Foreseeable Absences: If an employee desires non-emergency time off work for personal reasons related to care of the employee or member of the employee's immediate family (under circumstances which would not qualify as FMLA leave), the employee must apply to the immediate supervisor for permission to take time off as soon as the need for the absence is known and provide full details regarding the proposed date/time of the absence, the reason for the absence, how the employee proposes that missed work will be made up, or what type of leave is proposed to be applied to the absence. An example might be to take an afternoon off work so that a child may go to the orthodontist to be fitted for braces on the teeth. Every effort must be made to coordinate the scheduling of the proposed absence with the supervisor so as to cause the least possible disruption of the business. Subject to work requirements, an excused absence usually will be granted if at least two weeks notice of the absence has been given and work schedules can be rearranged so that missed work can be made up without undue disruption of the business operations. Normally, non-exempt employees will need to be able to make the work up within the same workweek (so that overtime problems will be avoided). In essence, this results in a one-time flextime arrangement (and can be made in a variety of ways, including trading shifts or days off with another employee, or working early or late on certain days to make up the missed work). Permission also may be granted if a request is made at least two weeks in advance and vacation pay can be applied to the absence (so long as this does not conflict with the scheduled vacation of another employee) or the employee has available sick pay time which may be applied to the absence (i.e., the absence is a type which qualifies for sick pay). Where no paid leave is available and/or where the work cannot be made up, permission for time off is within the sole discretion of the Company (except where leave is required by FMLA or other applicable federal or state law). Unless the employee offers an exceptionally good reason for the absence, and has consistently maintained an excellent work history, additional time off is unlikely to be approved in these remaining cases. Severe disciplinary action may be imposed (up to and including discharge) where: The employee fails to seek or obtain timely advance permission for foreseeable absences; The employee fails or refuses to make reasonable efforts to accommodate the business needs of the Company or legitimate expectations of coworkers; The employee fails to report to work after permission for time off has been denied or postponed due to unwarranted delays by the employee in providing proper advance notice of the absence. Procedure for Emergency absences: Unscheduled absences create very severe headaches for any company. Such absences should be kept to a bare minimum, and reserved for truly serious matters which could not be foreseen and could not have been avoided (even with advance planning by the employee). If an emergency situation arises, the employee must immediately contact the supervisor to advise of the reasons for the absence and request permission to take time off. If the information provided is insufficient to satisfy the supervisor that the absence was due to an unavoidable emergency, the absence may be treated as unexcused (or a decision may be postponed pending receipt of further information). Sick pay may be applied to such emergency absences, if the absence otherwise would qualify under the sick pay policy. Vacation time normally cannot be applied to unscheduled absences (although, in the case of extended emergency absences due to severe injuries or illness, the Company may elect to waive this limitation). Differences between exempts and non-exempts: As a general rule, non-exempt employees who take time off for personal or family-related absences will not be paid for the time missed (unless the time was permitted to be made up), except where the employee has accrued vacation or sick pay which is permitted to be applied to the absence. Exempt employees usually will be expected to make up work missed by partial days of absence during a work week. As a result, the Company normally will not dock exempt employees for partial days of absence (even when otherwise permitted by FMLA), except in situations where the frequency and duration of the absences make it unlikely that the time can be made up (such as extended intermittent leave under FMLA). However, exempt employees are subject to being docked for absences of one full day or longer due to illness or injury (or for other reasons permitted by the FLSA), unless they have appropriate leave time available which may be applied to the absence. Return to Section 4 Index Sick Pay Regular full-time employees will accrue sick pay at the rate of 0.42 of a day for every full month of service after completion of the initial Introductory period. Sick pay will be calculated based on the employee's base pay rate at the time of absence, and will not include any special forms of compensation, such as incentives, commissions, bonuses, or shift differentials. The amount of sick pay which will be charged back against the employee's accrued sick time will be based upon the time actually missed from work after the one-day waiting period. Time is charged based upon minimum increments of one- tenth of an hour (6 minutes). Unused sick pay may be accumulated and carried over from year to year, up to a maximum of 30 days. Any sick leave days which are unused at time of termination will expire, and employees will not receive any extra compensation for any remaining days in their leave account. Sick pay may not be applied to absences for which the employee is receiving compensation for lost wages under some other insurance program (including workers compensation). Regular full-time employees may apply accrued sick leave to an absence due to their own illness or that of a member of the employee's immediate family, subject to the provisions of this policy. To be treated as an eligible absence to which accrued sick pay may be applied, the absence must be: Due to a verifiable illness or accident of the employee or member of his immediate family. Advance notice and permission must have been obtained for the absence and/or the employee called in and obtained permission for emergency time off. The employee has provided any required doctor's certificates. The employee has completed necessary paperwork applicable to the absence. There is a one-day waiting period before sick pay may be applied to an absence due to a particular accident or illness. The waiting period applies only to the first day of absence due to a particular condition which occurs in any 3-month time period. Additional absences related to the same condition which occur with the 3-month time period after the initial absence do not require an additional waiting period, provided that the employee has presented an appropriate physician's statement which verifies that the absence is related to the same condition. For example, an employee who misses 2 days in March and 3 days in April due to ongoing back problems will not have a waiting period applied to the April absences. However, an employee who misses two days due to the flu in March, and then misses two days in July due to a child's broken wrist, will have a waiting period applied to each of these absences. Return to Section 4 Index Personal Leaves of Absence Leaves of absence may be granted to allow the employee to handle personal, family, educational or religious matters which cannot be handled during regular vacation time off and which are not covered by FMLA leave. Such personal leaves may be granted for periods of time of one week up to a maximum of six months. The decision to grant or deny the leave is within the sole discretion of the Company (based upon a number of factors, including the amount of time requested; whether vacation time was available which could have been used in lieu of asking for added time off; the reason for the request; whether the leave will benefit the Company in any way; the prior work history of the employee; the hardship to the Company if the leave is granted; and related factors). Employees are not eligible to apply for a personal leave until after they have completed three full years of service. Except in extremely unusual circumstances, no employee will be granted more than one extended personal leave (i.e., leave in excess of two weeks) in any three-year period. All such leaves will be unpaid; no benefits will accrue during any extended leave; and the employee will be required to reimburse the Company for health insurance premiums during any extended leave, in the same manner as required for COBRA extension of benefits. Return to Section 4 Index Flextime Employees may request the opportunity to adjust their days of work or starting/ending times to better accommodate personal or family responsibilities. These adjustments may be requested on a temporary or permanent basis. Granting of flextime scheduling is within the discretion of the Company. Usually, initial approval will be only on a trial basis to determine whether such scheduling is workable in the particular job being performed by the employee. If this procedure is determined to be unworkable, the employee is welcome to pursue transfer to other open positions where the hours or work schedule better suits the personal needs of the employee and/or his family (including available part-time work). The Company reserves the right to unilaterally alter the starting/ending times or days of work of an employee, where such an adjustment appears more likely to allow the employee to be able to fulfill obligations to both Company and family. In addition, the Company reserves the right to transfer an employee to another position if such a move would more easily permit the employee to work a full work schedule. Where the absence is covered by FMLA, transfers will be made only in compliance with FMLA. Return to Section 4 Index Maternity/Paternity Leave Requests for time off due to pregnancy-related disabilities will be treated in the same manner as requests for leave due to other non-work-related disabilities (if the employee is not covered by FMLA), or will be treated as a FMLA-covered absence (if the employee is covered by FMLA). Requests by the mother or father for leave to care for a newborn baby (or for a newly-adopted child) will be considered in the same manner as any other request for an unpaid personal or family leave (or will be considered to be covered by the provisions on FMLA leave, if the employee is eligible for such leave). Return to Section 4 Index FMLA Leave Full time regular employees are eligible for an unpaid FMLA leave of absence after completion of twelve months of full-time service. Employees who are temporary, casual or permanent parttime workers also qualify for such leave if they have worked for the Company for at least one year and have worked 1250 hours in the twelve months preceding the absence. Leave may be requested for the employee's own serious health condition, or to care for a member of the employee's immediate family who has a serious health condition. In addition, FMLA provides certain leave to employees for the birth or adoption of a child (although such leave may be limited where both parents work for the Company, so it is important to check with Personnel if this applies to your situation). Under FMLA, members of the immediate family include: parents of the employee (or other persons who have been the functional equivalent of parents of the employee, such as guardians or step-parents), siblings of the employee, and children of the employee. Generally, FMLA leave is not available to care for other relatives, including relatives by marriage. For purposes of FMLA, serious health conditions or disabilities include inpatient care in a hospital, hospice, or residential medical care facility; continuing treatment by a health care provider for a chronic serious health condition; and temporary disabilities associated with pregnancy, childbirth, and related non- permanent medical conditions. Eligible employees are normally granted leave for the period of the disability, up to a maximum of 12 weeks within any 12 month period. Employees will be required to first use any accrued paid leave time before taking unpaid medical leave, and such time will be credited towards their total leave time. In determining eligibility for leave, the Company will employ the "look-back" method. Under this method, the Company will look back to the preceding twelve month period of time to determine if the employee has met eligibility requirements, and also will look back in this period to determine whether the employee has exhausted the twelve-week leave entitlement. Eligible employees should make requests for medical leave to their supervisors at least 30 days in advance of foreseeable events, and as soon as possible for unforeseeable events. A health care provider's statement must be submitted verifying the need for medical leave, and its beginning and expected ending dates. Any changes in this information should be promptly reported to the Company. Employees returning from medical leave must submit a health care provider's verification of their fitness to return to work. Employees who are absent for a work-related injury may have special rights to additional leave. Check with the Personnel Manager to determine what leaves may be available to employees during periods of TTD. During FMLA leave, the Company will continue to provide health insurance benefits on the same basis as provided before commencement of the leave (i.e., if the employee was required to pay a portion of the health insurance premiums before the leave, he will continue to be required to pay such premiums during the leave). An employee on an extended FMLA leave should try to provide the Company with at least two weeks advance notice of the date the employee intends to return to work. When a medical leave ends, the employee will be reinstated to the same position, if it is available, or to an equivalent position for which the employee is qualified. If an employee fails to report to work at the end of the medical leave, or fails to submit required status reports during such leave, the Company will treat the employee as having resigned. Employees also may be entitled to intermittent leave under FMLA, in order to obtain an ongoing course of treatment for a chronic serious health condition (such as radiation treatment, dialysis, or the like), or to bring a covered family member to such treatment where the employee's presence is necessary to provide care for the family member. In order to obtain intermittent leave, the employee should contact the Personnel Manager to fill out necessary paperwork and discuss the best ways to rearrange the work schedule to accommodate the leave. In the case of intermittent leaves, the Company reserves the right to reassign the employee for the duration of the leave to another position where the intermittent absences can be accommodated more easily. Normal sick pay rules will apply to routine FMLA-covered absences of several days duration. However, where the employee or family member has a chronic health condition which requires recurrent intermittent leave, the employee will be permitted to apply sick pay to such absence based upon increments equal to the actual amount of time missed from work, subject to the waiting period rules established by the sick pay policy. Return to Section 4 Index Vacation Pay Alternatives Vacation Accruals Payment on Termination Vacation Scheduling Vacation Accruals Option For each full month completed after initial eligibility, vacation accrues 1: at 0.833 days/month. After completion of 10 years of service, vacation accrues at 1.250 days/month. No vacation credits are accumulated during the initial Introductory period. Employees who fail to complete this Introductory period are not eligible to receive any vacation pay. Employees who satisfactorily complete their Introductory period will be awarded retroactive vacation accrual for the 3 months spent as an introductory employee (i.e., 0.833 days multiplied by 3), which shall be treated as a bonus for successful completion of the Introductory period. Option Vacation is awarded for full years of service only. After completion of 2: one full year of service, an employee is awarded two weeks (80 hours) of vacation pay. Vacation pay awarded may be used only during the year in which awarded, unless otherwise authorized by the Company. On the service year anniversary date of each subsequent year (as adjusted), the employee will receive an award of the following amount of vacation pay: Anniversary of 2nd year through 5th year: 2 weeks (80 hours) Anniversary of 6th year through 15th year: 3 weeks (120 hours) Anniversary of 16th year and thereafter: 4 weeks (160 hours) Option Vacation time is awarded as of January 1st of each year. The amount 3: of vacation time which will be awarded to regular fulltime employees on the calendar year starting January 1st is calculated as follows: Employees with more than one year, but less than 5 full years of completed service, as of January 1st will receive 2 weeks (80 hours) of vacation pay which may be used during the calendar year. Employees with 6 years of completed service through 15 years of completed service as of January 1st will receive 3 weeks (120 hours) of vacation pay. Employees with 16 or more years of completed service as of January 1st will receive 4 weeks (160 hours) of vacation pay. Employees with less than one full year of service will receive a pro-rata award of vacation pay, based upon the number of completed full months of service (for example, an employee with 6.5 months of service will receive 1/2 of the vacation pay granted to employees with a full year of service, which amounts to 1 week of vacation (40 hours). Payment on Termination Option Upon termination of employment, employees will be paid for unused 1: vacation time in their account (including any vacation which was authorized to be carried over from the prior benefit year). Vacation is treated as having accrued only after completion of each full month of service. Thus, no vacation credit will be given for any fractional month of service. Option Upon termination of employment, employees will be paid for unused 2: vacation time in their accounts. Because vacation pay is not awarded until after the completion of each successive full year of service, no vacation pay is considered to have been earned nor is any vacation payable for any partial years of service which may have been completed since the last vacation awards were made. Option Upon termination of employment, employees will be paid for unused 3: vacation time in their accounts. Because vacation pay is awarded on a yearly basis as a reward for completion of a full year of service, employees will not receive additional vacation pay for partial years of service completed since January 1st of the current year. Vacation Scheduling Option In January of each year, the supervisor will hold a meeting to record 1: vacation requests from all employees under his/her supervision, and will create a master vacation calendar in a meeting with all employees. At the start of such meeting, or in an announcement prior to the meeting, the supervisor will list the number of employees who can be permitted to take vacation during the same time period and will also announce black-out periods during which no vacations can be scheduled. Vacation selection shall proceed in order of seniority (using full years of seniority). If two or more employees have the same length of full years of service (i.e., one has 3 years and 2 months, and another has 3 years and 2.5 months), then they will draw lots to determine the order of selection of vacations. Once vacations have been scheduled, the Company will make every effort to honor the requests for these specific vacation times. However, employees are encouraged to check with their supervisors about departmental workloads before purchasing non-refundable tickets or making deposits, and should try to purchase tickets as close to the time of departure as is possible, because circumstances occasionally do arise when a scheduled vacation must be canceled for some reason (such as unforeseen workload requirements or unexpected hospitalization of a coworker). While we will try to honor specific vacation requests where we can, we reserve the right to require that vacations be reset if unexpected problems arise. If a scheduled vacation is cancelled by the Company less than thirty (30) days before it was to be taken, the employee will have the option of resetting the vacation to the next available date; carrying over the vacation to the next year (up to a maximum of four weeks for the year); or being paid in lieu of taking the vacation. Accrued vacation days only will remain in the employee's account for twelve consecutive calendar months, after which any unused vacation time will be treated as forfeited, unless the employee has been asked to defer the vacation in the interests of the Company or unless the employee has applied for and received advance permission to carry vacation time forward in order to apply the same to a foreseeable impending absence (such as maternity leave, extensive surgery, or similar reasons). Once the vacation schedule is set, the employee normally will be expected to take a vacation at the time selected, unless the employee obtains permission from the supervisor at least two weeks before the original vacation date to reset the vacation to a different time period. Failure to take scheduled vacation at the time selected may result in forfeiture of the vacation time, unless the Company has requested the change in scheduling or the employee presents acceptable extenuating reasons to allow the vacation to be reset. While this provision may seem harsh, the Company has determined that it has too many workaholics and procrastinators who inevitably will wait until the last minute to try to set vacations or who pick dates desired by others and then cancel (causing coworkers to want to strangle them), and also has too many worriers who keep banking their vacation days for fear that they might possibly need them for some unknown potential catastrophe. Usually, these are the individuals who are in most need of time away from the office, so this approach has been adopted in the hopes of pushing these employees into actually taking their vacation time. Special arrangements may be made in the case of employees who wish to bank vacation time in order to use it for a foreseeable future absence (such as childbirth or anticipated surgery), or who want to reschedule vacation days when such a situation arises. It is very important to notify your supervisor as soon as possible of the anticipated dates of the absence in order to allow any necessary scheduling changes to be made (as other coworkers may want the vacation time slot which you are giving up, or may have spoken for the time when you will be out - and these coworkers are likely to be most upset if you wait until the last minute to mention that you want to change the schedule). Belated requests for changes in vacation scheduling may result in denial of the request to apply vacation time to the absence and/or insistence that the absence be postponed to a date when it can be better accommodated (if this is a viable option). Option Once accrued, vacation may be scheduled at any time during the 2: year, subject to approval of the supervisor. Employees are cautioned that requests for use of vacation in the last two months of the year, as well as in July, are very popular. Only a limited number of these requests can be approved, so it is advisable to request such time early. Where more employees have requested time off during these time periods than can be accommodated by their department, the supervisor usually will hold a meeting of the employees to decide upon an equitable way to allocate popular vacation times. Once vacations have been scheduled, the Company will make every effort to honor the requests for these specific vacation times. However, employees are encouraged to check with their supervisors about departmental workloads before purchasing non-refundable tickets or making deposits, and should try to purchase tickets as close to the time of departure as is possible, because circumstances occasionally do arise when a scheduled vacation must be canceled for some reason (such as unforeseen workload requirements or unexpected hospitalization of a coworker). While we will try to honor specific vacation requests, we reserve the right to require that vacations be reset if unexpected problems arise. If a scheduled vacation is cancelled by the Company less than thirty (30) days before it was to be taken, the employee will have the option of resetting the vacation to the next available date; carrying over the vacation to the next year (up to a maximum of four weeks for the year); or being paid in lieu of taking the vacation. Accrued vacation days only will remain in the employee's account for twelve consecutive calendar months, after which any unused vacation time will be treated as forfeited, unless the employee has been asked to defer the vacation in the interests of the Company or unless the employee has applied for and received advance permission to carry vacation time forward in order to apply the same to a foreseeable impending absence (such as maternity leave, extensive surgery, or similar reasons). Table of Contents Legal Notice Section Five: Safety Safety Requirements Equipment Maintenance and Use Environmental Compliance "Safety First" Policy Accident Reporting No Weapons Policy Security Inspections Drug and Alcohol Use Drug Testing Program Safety Requirements Nobody wants to be hurt on the job. Safety meetings are held regularly, and employees are expected to attend and participate. It is the duty of all employees to see to it that their work areas are free from safety hazards. Any employee who observes a situation that constitutes a danger or hazard must report the problem to their supervisor immediately. If the problem is not addressed to the satisfaction of the employee, the matter should be taken to the Location manager or Personnel Manager. Only authorized employees are permitted to operate any of the Company equipment or motor vehicles. Authorization to operate these vehicles will be granted by your supervisor only after training in the operation of the vehicles has been successfully completed and a demonstration of competence is shown by the employee. Equipment Maintenance and Use Equipment is expensive and may be difficult to replace. When using equipment, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines. You should notify your supervisor if any equipment, machines, tools, or vehicles appear to be damaged, defective, or in need of repair. Prompt reporting of damages, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment or vehicles used on the job. The improper, careless, negligent, destructive, or unsafe use or operation of equipment or vehicles can result in disciplinary action, up to and including termination of employment. Likewise, violation of Company safety rules is considered a serious matter, and also will result in disciplinary action (up to, and including, discharge). Safety glasses and hearing protection are mandatory on certain equipment, and if you are to operate any of these machines, your supervisor will inform you of those requirements. Protective guards must be in place on all machines. Floors and work areas are to be clean. Loose fitting clothing or long hair must be safely secured before operating any machines with moving parts. Return to Section 5 Index Environmental Compliance Employees who handle chemicals or other substances which may cause health hazards or industrial pollution must follow requirements on the handling and disposal of such materials. Material safety data sheets are posted and on file to insure that the information contained in them is readily available. Employees are expected to observe and follow environmental and safety rules pertaining to these materials, and to take precautions to insure that such materials are not placed in unlabelled containers where inadvertent injury or pollution may occur. Return to Section 5 Index "Safety First" Policy No employee should perform any task which he sincerely believes will create a serious safety hazard to himself or others. If orders are given to perform a task which the employee believes in good faith to create a serious safety risk, the employee MUST inform the supervisor of his concerns and, if the problem is not corrected, the employee MUST report the matter immediately to the location manager or Personnel. Pending further review, the employee should not perform any task which the employee reasonably believes to be unsafe. Instead, the employee should request reassignment to other tasks, or request permission to return home if no other work is available. Common sense is expected to be used in any refusal to perform an assigned task on the grounds that it is seriously unsafe to do so. For example, if an employee is to drive a Company car on a trip, and discovers that the front passenger safety belt in an automobile is not functional (but knows that no passengers are to be taken on the trip and/or the passengers can sit in the back seat), the absence of an operational front passenger safety belt would not be deemed to be good grounds for refusal to take the trip. On the other hand, if the driver's side safety belt was not functional, this would be good grounds to refuse to make the trip unless a different vehicle was furnished or until the vehicle's safety belt could be repaired. Similarly, if the safety belt didn't seem to be working correctly, the employee could delay the trip in good faith while the belt was being checked out (even if it ultimately was determined that the belt was functional). Of course, the Company reserves the right to take discipline against employees who raise bogus safety claims in bad faith (for reasons such as avoiding work, making trouble, or defying a supervisor). Return to Section 5 Index Accident Reporting If you witness an accident involving a coworker, notify your supervisor immediately. If you can do so without serious risk of injury to yourself, promptly take steps to safeguard your coworkers and company property. This will set in motion the sequence of events necessary to insure that no further harm can occur, that first aid may be rendered, transport to emergency care locations can be swiftly arranged for, and that any necessary paperwork for insurance and treatment of the accident/injury victim can be obtained. Likewise, if you sustain any accidental injury at work, no matter how minor, you should notify your supervisor immediately so that the Company may complete federally-required job safety forms and make an assessment of whether you should be sent for emergency medical treatment. By promptly notifying the Company of job-related injuries, you also will protect your rights to workers compensation benefits in the event that the injury is more serious than first suspected. Return to Section 5 Index No Weapons Policy The Company does not permit employees to possess any firearms or other weapons on Company property (including in cars parked on its premises). Do not bring weapons onto our premises without our express consent. Employees who have a license to carry, or who are licensed deputies, may receive special permission from the Company for such weapons, if a valid reason can be presented for doing so. Any permission is in the sole discretion of the Company, and can be revoked at any time. Return to Section 5 Index Security Inspections The Company wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives, or other improper materials. Desks, lockers, and other Company property remain the sole property of the Company. Accordingly, employees are on notice that these areas may be inspected by any agent or representative of the Company at any time, either with or without prior notice. Nothing should be stored in such areas which the employee does not wish to have inspected. Drug and/or alcohol testing may be required under certain circumstances, as set forth below. Return to Section 5 Index Drug and Alcohol Use It is the Company's desire to provide a drug-free, healthful, and safe workplace. To promote this goal, employees are required to report to work in appropriate mental and physical condition to perform their jobs in a satisfactory manner. While on the Company premises and/or while conducting business-related activities off the Company premises, no employee may use, possess, distribute, sell, or be under the influence of alcohol or illegal drugs. The Company, in its discretion, may permit limited use of alcohol at Company-sponsored functions (such as a Christmas party or picnic), under the condition that employees closely monitor their own consumption and that of any guests to insure orderly behavior, and under the further condition that a designated driver will be used. Similarly, the Company may permit certain employees who entertain customers in the regular course of their work to engage in limited use of alcohol, under the same conditions. The use of prescribed drugs is permitted on the job only if it does not impair an employee's ability to perform the essential functions of the job effectively and in a safe manner that does not endanger other individuals in the workplace. Employees must notify their supervisor if they are taking any prescription medication which carries any warning that the medication should not be used while operating machinery or equipment, so that a determination may be made as to whether the employee can be allowed to work. Employees may not report to work under the influence of alcohol or any illegal drug. If an employee believes that he/she may have a substance dependency or abuse problem, the employee is encouraged to discuss these matters with Personnel. Employees may request approval to take unpaid time off to participate in a rehabilitation or treatment program through the Company's health insurance benefit coverage, provided that any abuse occurred off-premises and provided that the employee is not currently facing disciplinary action for violation of the drug policy. Any employee who violates this drug and alcohol policy is subject to immediate termination. In the sole discretion of the Company, the employee may be allowed to participate in a substance abuse rehabilitation or treatment program as a condition of continued employment. This option normally will be limited to situations where the consumption/use occurred off-premises and after-hours; where the employee has worked for the Company for three years or more; and where the employee has a prior established history of good work performance. If the Company agrees to this alternative, any program will include the requirement that the employee agrees to abstain from use of the problem substance from that day forward; agrees to fulfill all of the requirements imposed by the rehab facility; agrees to periodic monitoring for a minimum of one year after return to work in order to ensure the employee is continuing to refrain from use of the problem substance; and agrees that violation of any of these conditions is grounds for immediate termination. A detailed Drug Policy is included in the Appendix. Employees should familiarize themselves with this policy, and with the circumstances under which we reserve the right to conduct drug testing. Return to Section 5 Index Table of Contents Legal Notice Section Six: Business Operations Visitors in the Workplace Use of Phone and Mail Systems Personal Appearance Solicitation/Use of Bulletin Boards Meal Rooms Rewards for Good Ideas Personal Use of Company Property Visitors in the Workplace To provide for the safety and security of employees and the facilities at the Company, only authorized visitors are allowed in the workplace. Restricting unauthorized visitors helps maintain safety standards, protects against theft, ensures security of equipment, protects confidential information, safeguards employee welfare, and avoids potential distractions and disturbances. All visitors should enter the Company at the main entrance. Authorized visitors will receive directions or be escorted to their destination. Employees are responsible for the conduct and safety of their visitors. If an unauthorized individual is observed on the Company's premises, employees should immediately notify their supervisor or, if necessary, direct the individual to the main entrance. Return to Section 6 Index Use of Phone and Mail Systems Public pay phones are available for employees to make personal outgoing calls during breaks, meal periods, or at other times with the supervisor's permission. No long distance or collect calls may be charged to the Company. Use of Company business telephones for personal business is discouraged. All calls using Company business lines may be monitored, so any personal calls which you wish to keep private should be made on the pay phones. Excessive use of Company-paid time to conduct personal business or make personal calls constitutes theft of Company time, and will be dealt with severely. The use of Company-paid postage, envelopes or supplies for personal correspondence is not permitted. Similarly, the use of Company copiers, fax machines or computers for personal business is forbidden. Company internet or email accounts should be used solely for Company purposes, and employees should be aware that such use is NOT private and will be monitored. Work hours are for work, and any interruptions for personal business should be very brief and kept to a bare minimum. Return to Section 6 Index Personal Appearance Dress, grooming, and personal cleanliness standards contribute to the morale of all employees and affect the business image the Company presents to customers and visitors. During business hours and at any Company functions, employees are expected to present a clean and neat appearance and to dress according to the requirements of their positions. Employees who appear for work inappropriately dressed will be sent home and directed to return to work in proper attire. Under such circumstances, employees will not be compensated for the time away from work. Consult your supervisor if you have questions as to what constitutes appropriate attire. Return to Section 6 Index Solicitation/Use of Bulletin Boards In an effort to assure a productive and harmonious work environment, solicitation or distribution of literature by non-employees on Company property is prohibited. This includes distribution of windshield fliers, or handouts in the parking lot or at building exits/entrances. Employees may not solicit or distribute literature regarding non-business activities during actual working time (Working time does not include lunch periods, work breaks, or any other periods in which employees are not on duty). In making any solicitations, employees should remember our policies on courtesy, and avoid actions which may be viewed as harassment of others. The Company reserves the right to prohibit solicitations which are offensive or in poor taste. Similarly, while occasional sales of items is permitted (such as school candy, Girl Scout or Campfire merchandise, and the like), employees are not permitted to carry out any recurring sales activity on Company property (including Avon, Tupperware and any other regular sales activity). Bulletin boards contain important information, and employees should consult them frequently for: Affirmative Action statement Internal memoranda Organization announcements Payday notices Workers' compensation insurance information State disability insurance/unemployment insurance information A limited area on bulletin boards is reserved for employee postings. These postings are limited to notices of sales of personal goods/materials and to notices about events of general interest (such as sports teams). Because of limited space, the Office Manager will control whether a notice may be posted and will control how long the message will remain up. Employees interested in posting messages may submit it to the Office Manager for approval. Return to Section 6 Index Meal Rooms Meal rooms are provided for employees use during breaks and meals. Employees are responsible for cleanliness of these areas. A microwave and refrigerator are provided. Items in the refrigerator should be marked with the owners name. All items in the refrigerators must be removed before the weekend. Any items left in the refrigerator during the weekend will be thrown away. Return to Section 6 Index Rewards for Good Ideas The Company wishes to encourage innovation and improvement in all areas of our work. Ideas or suggestions for innovations may be submitted to management by way of the Innovation and Ideas boxes in the buildings, and also may be presented directly to your supervisor. To encourage input from all employees, any idea or innovation which creates significant savings of time or money, or which significantly improves the quality of our products, may receive a special bonus of up to $500.00. Return to Section 6 Index Personal Use of Company Property No personal use of company property is allowed. The Company tools, equipment, supplies, materials, or other products and property may not be removed from the premises under any circumstances unless you are specifically authorized to do so by your supervisor for a specific business reason. Return to Section 6 Index Table of Contents Legal Notice Section Seven: Conflicts of Interest Duty to Avoid Conflicts of Interest Outside Employment Nepotism Policy Protection of Confidential Information Duty to Avoid Conflicts of Interest Employees have an obligation to monitor their conduct and personal associations in order to avoid actual or potential conflicts of interest. The purpose of these guidelines is to provide general guidance about the types of situations which may result in a conflict of interest. Contact Personnel or your supervisor for more information or questions about conflicts of interest. A conflict of interest automatically is considered to arise when the employee who makes decisions on purchases by the Company is placed in the position where such decisions may be influenced by any factors other than the best interest of the Company. Improper factors which may influence an employee to do business with a particular vendor (instead of with a competitor who may offer a better price or produce to the Company) includes having a hidden ownership interest in the vendor (directly or through a family member); accepting personal favors, tickets to sporting events, invitations to parties, or other special treatment for the vendor; accepting offers of special jobs for relatives; and accepting kickbacks, bribes, “commissions” or other financial inducements in exchange for steering business to the vendor or as a reward for having done so. No Company employee may accept anything of monetary value in exchange for steering business to a particular vendor (or as an inducement or reward for having done so). Likewise, no Company employee should permit a close relative or friend to accept anything of value from a vendor in circumstances where it would be a conflict of interest for the employee to have accepted the benefit. Where the employee becomes aware of an actual or potential conflict of interest, the employee is obligated to immediately disclose this fact. Such disclosure automatically is required when a relative goes to work for a vendor with whom the employee regularly does business. With proper and timely disclosure, the Company may be able to make arrangements which will alleviate its concerns over possible conflicts of interest. However, the Company retains the right to insist on elimination of the conflict as a condition of continued employment. Where an employee accepts anything of value from a vendor without immediate and prompt disclosure, or otherwise violates this policy, the employee will be subject to serious discipline (up to and including discharge). Where the employee received kickbacks or other payments of significant monetary value, the Company reserves the right to seek repayment of any ill-gotten gains from the employee (or his relatives) and from the vendor. Return to Section 7 Index Outside Employment Outside employment which constitutes a conflict of interest is prohibited. In order to assess whether a conflict of interest may arise, employees must notify the Personnel Manager when they are offered outside employment, and must obtain a clearance to take the position. Employees should be aware that business relationships change, and that the Company reserves the right to withdraw such clearance at any time. Employees normally will be allowed to hold outside jobs with companies which are not competitors, customers, suppliers or vendors of the Company, as long as they continue to meet the performance standards of their job with the Company. All employees will be judged by the same performance standards and will be subject to the Company’s scheduling demands, regardless of any existing outside work requirements. If the Company determines that an employee's outside work interferes with performance or the ability to meet the requirements of the Company as modified from time to time, the employee may be asked to terminate the outside employment if he or she wishes to remain with the Company. Employees may not perform work for other companies, or for their own personal business ventures, on Company time. Likewise, employees may not use, sell or convey confidential business knowledge acquired while at the Company to any third parties (regardless of whether still employed by the Company or working elsewhere at the time that such information is conveyed). Employees may accept minor gratuities (such as meals or minor tokens of appreciation, such as pens) from customers, vendors and suppliers, as long as the reasonable value is less than $25.00 and as long as any such gratuities are accepted only on an sporadic basis. Employees are required to report an offer of goods, monies or services in excess of this amount, and likewise are required to report an effort by any vendor, customer or supplier to obtain confidential internal Company information (regardless of whether compensation is offered in exchange for such information, or the request is merely based upon “friendship”, or “doing a favor for a buddy”, or some other similar basis). For further information, consult the Conflict of Interest and Non-Disclosure sections of this policy. Return to Section 7 Index Nepotism Policy The employment of relatives in the same organization may cause serious problems in the workplace (including perceptions of favoritism towards the relative; personal conflicts with the relative which spill over into the workplace; discussions of personal business on Company time; potential leaks of confidential information; and torn loyalities where a family member must be terminated or disciplined). As a result, the Company has a policy against the employment of relatives in any part of its operations. For the purpose of this policy, “relatives” include parents, siblings, children, grandparents, and grandchildren of the employee or spouse. Where employees become related by marriage after hire, the affected individuals will have thirty (30) days to decide who is to resign. If neither has agreed to resign by the end of this period, the Company will terminate the employee with the least seniority. Where two employees are living together in a close personal relationship without formal marriage (including with roommates of the same sex), the Company reserves the right to treat them as if they are married for the purposes of this Policy. Return to Section 7 Index Protection of Confidential Information The protection of confidential business information and trade secrets is vital to the interests and the success of the Company. Such confidential information includes, but is not limited to, the following examples: Information about employees (including compensation, evaluations and the like) Customer lists Customer preferences Financial information Marketing strategies New materials research Pending projects and proposals Research and development strategies Employees who improperly use trade secrets or confidential business information, or who improperly disclose such information, will be subject to disciplinary action (up to and including discharge). Employees who regularly have access to highly-confidential information may be required to sign a specific acknowledgement of their non-disclosure obligations as a condition of employment, to serve as additional proof of their knowledge of these legal obligations to the Company. Regardless of whether any such signed acknowledgement is obtained, the Company normally will have the legal right to insist on confidentiality of such information, even after the employee has gone to work for another company. Disclosure of confidential Company information to a future employer is strictly prohibited, and may subject the former employee (as well as the new employer) to suit for any damages resulting from the unauthorized disclosure. At termination, employees will be required to certify that they have returned all company documents and records (including any duplications of the same). To the extent permitted by law, final paychecks will be held pending receipt of this certification. Return to Section 7 Index Table of Contents Legal Notice Section Eight: Discipline and Termination Discipline Reasons for Termination Procedures at Termination Severance Pay Outside Reference Checks Return of Property Discipline If an employee fails to meet our overall expectations for performance of the job (including compliance with Company rules and procedures, as well as use of common sense and common courtesy), the Company must decide whether imposition of discipline is likely to fully correct performance deficiencies and turn the employee into a desirable worker. If the Company does not believe that discipline is likely to turn the employee into a desirable worker, then the employee is subject to immediate termination. Instances where no disciplinary action is likely to be considered to be worthwhile include situations where, despite real effort, the employee simply cannot do the work assigned (whether due to lack of needed skills, lack of physical ability, personality issues, or other factors which the employee is likely to be unable to change within the time needed). Discipline also may be considered not to be worthwhile where the overall record of the employee is poor and/or the employee requires an excessive amount of supervisory time (e.g., the supervisor is often dealing with problems created by the employee, or often having to oversee the employee's work to get satisfactory work or effort, or often having to adjust schedules due to unexcused absences, tardiness or poor work effort by the employee). In making the decision on whether to impose discipline, as well as what type of discipline to impose, the Company considers the following types of factors: the severity of the particular offense in question (some acts are so serious that termination is the only viable option); the prior overall record of the employee (including the number of times that the employee has presented past disciplinary problems, even if different from the current offense, as there is a point where an employee becomes more trouble than she/he is worth); the effect of the offense/ discipline on the morale of other employees in the Company; the effect of the offense/discipline on those who do business with the Company; and whether the employee has demonstrated an overall aptitude, ability and willingness to satisfactorily perform assigned job duties (so that it makes sense to devote scarce supervisory time and resources towards working with the employee to try to correct the problems). The Company believes in treating every employee as an individual, and in assessing each particular situation to determine the disciplinary action to be taken. On occasion, this may mean that an employee will receive greater or lesser discipline for a particular offense than someone else (in most cases, this arises when one person has a clean disciplinary record and has been doing excellent work for several years, while the other is a short-time employee who has been in constant trouble for varying offenses since hire and whose overall work is poor). Any of the following types of disciplinary action may be given to an employee. In addition, where the decision is made to continue employment, the Company reserves the right to impose special requirements or terms on the employee as a condition of continued employment (such as probationary periods during which additional infractions and/or failure to adhere to an agreed performance improvement plan may result in further disciplinary action or termination). Termination - Company decides that further employment of the individual is not in its best interest, and severs the employment relationship. Suspension without pay - Generally, these suspensions are from one to three days of time off without pay. The days of the week of the suspension are Tuesday, Wednesday and Thursday (ie., the suspension will be set up to avoid giving the employee a long weekend off work). As an alternative to suspension without pay, other forms of pay cuts may be imposed as a disciplinary measure (including denial or postponement of raises or bonuses, as well as outright cuts in pay rate or commission levels). Normally, suspensions will not be used for attendance-related offenses, as it makes no sense to provide more time off to someone whose attendance is already unacceptable. Written warning - Employee receives formal written notice from supervisor of the infraction, and the steps required to correct the problem. Employee must commit in writing to immediate correction of the problem. Verbal warning - Employee is verbally notified by their supervisor of the infraction, and a commitment is obtained from the employee to cease the offending conduct immediately. The type of discipline selected is in the sole discretion of the Company. Employees who are dissatisfied with the discipline imposed are free to present their complaints through the problem resolution procedure. However, pending resolution of their complaint, any discipline imposed will continue in effect unless management specifically advises the employee to the contrary. Return to Section 8 Index Reasons for Termination Employment may be ended by the employee or by the Company at any time, and for any reason. Common reasons for ending the employment relationship are: RESIGNATION - voluntary employment termination initiated by an employee. As a courtesy, the Company requests two weeks notice of resignation so that it can seek to fill the opening with minimum disruption. LAYOFF - involuntary employment termination initiated by the organization for lack of work; staff reductions; departmental closure; and the like. RETIREMENT - voluntary employment termination initiated by the employee meeting age, length of service, and any other criteria for retirement. TERMINATION - involuntary employment termination initiated by the Company when further employment of the individual appears to no longer be in the best interest of the Company. This category includes non-disciplinary terminations (such as where an employee cannot return from leave, or is unable to do the job despite good faith effort, or simple personality conflicts where the relationship has deteriorated to the point where the Company concludes that one person must go). It also included terminations for disciplinary reasons. Return to Section 8 Index Procedures at Termination Upon termination of their employment, employees will receive their final pay in accordance with applicable state law (usually at the next regular pay period following termination). All accrued, vested benefits that are due and payable upon termination also will be paid at this time. Other accrued benefits, such as benefits under retirement or savings plans, will be distributed under the terms of those plans. After termination, health insurance benefits usually may be continued at the employee's expense if the employee so chooses, and it may be possible to continue certain other insurance benefits, depending on the terms of the plan. The employee will be notified in writing of the benefits which may be continued, and of the terms under which this is possible. The Company will generally schedule exit interviews at the time of employment termination. The exit interview will afford an opportunity to discuss such issues as employee benefits, conversion privileges, repayment of outstanding debts to the Company, or return of Company-owned property. Suggestions, complaints, and questions can also be voiced. Return to Section 8 Index Severance Pay The Company does not have any policy for payment of severance pay on termination. However, it reserves the right to offer such pay to particular employees, in its sole discretion. Any payment of severance pay will be conditioned upon execution of a full release of any claims against the Company arising out of employment and/or termination (except for rights under any existing benefit plans, and claims which cannot be released without court approval). Return to Section 8 Index Outside Reference Checks Reference checks on former employees are handled by the Personnel office. Please do not ask your supervisor to provide a reference for you, as this is against our Policy and places the supervisor in an awkward position. As a general rule, the Company will confirm only dates of employment, last position held, and salary at termination in response to reference checks (unless the employee engaged in such gross misconduct that it may have a legal obligation to warn others, such as a situation where the employee raped a coworker at the office, embezzled monies, or was dealing drugs at work). If you wish, Personnel will provide you with a statement which describes our general policy on references, and lists the information applicable to your employment, which you may wish to provide to future employers in lieu of a formal reference check. Return to Section 8 Index Return of Property Employees are responsible for all property, materials or written information issued to them or in their possession or control. All the Company property must be returned by employees on or before their last day of work. Where permitted by applicable laws, the Company may withhold from the employee's check or final paycheck the cost of any items that are not returned when required. the Company may also take all action deemed appropriate to recover or protect its property. Return to Section 8 Index Table of Contents Legal Notice Section Nine: Rules of Conduct We expect our employees to use common sense and good judgment, and to conduct themselves in a professional business manner which will foster good relations with their managers, coworkers, and persons with whom we do business. Failure to behave in an appropriate professional business manner, or failure to act in a way which furthers the business activities of the Company, is grounds for disciplinary action, up to and including discharge. We have tried to list examples of the types of offenses which may lead to disciplinary action, but it would not be possible to list every conceivable deficiency or action which might cause the Company to conclude that the continued employment of a particular employee is no longer in the best interest of the Company. As a result, employees should use this list only as an illustration of the types of conduct may lead to discipline or termination. 1. Unacceptable quantity of work. 2. Unacceptable quality of work. 3. Discourtesy or offensive conduct towards others, including violation of EEO Policies. 4. Violation of any other company rules, procedures and policies. 5. Immoral, indecent or outrageous behavior (including off-premises conduct which may be highly offensive to coworkers or customers, such as child molestation or child abuse). 6. Falsification of company records. 7. Deliberate damage to, destruction of, removal of, theft or conversion of company property or property of others. 8. Being under the influence of alcohol or illegal drugs on Company premises or during Company functions. 9. Use, sale or possession of alcohol or illegal drugs on Company premises. 10. Failure to report to work without a satisfactory reason. 11. Conducting personal tasks on company time without permission. 12. Habitual tardiness or excessive absenteeism. 13. Being absent during working hours without permission. 14. Sleeping on the job. 15. Intimidation or coercion of other employees. 16. Willful disobedience, insubordination or failure to carry out any reasonable, lawful order from your supervisor. 17. Improper or indolent performance of duties. 18. Carelessness or recklessness which endangers persons or property. 19. Intentional waste of material. 20. Abuse or misuse of tools or equipment. 21. Playing of pranks, horseplay or practical jokes which endanger the safety of others. 22. Dishonesty, deception or fraud. 23. Trespassing. 24. Violation of safety rules. 25. Acts of aggression or violence, including fighting or threatening actions. 26. Use of threatening, abusive or profane language. 27. Tampering with or removal of authorized notices. 28. Conflicts of interest. 29. Misappropriation of company information or trade secrets. 30. Possession of weapons on Company property. Table of Contents Legal Notice Section Ten: Problem Resolution Procedure Introduction No-Retaliation Policy Common Reasons for Using the PRP Normal Problem Resolution Procedure Procedure for Highly-Serious Incidents Procedure for Misconduct by Outsiders Introduction Whenever an employee is upset with something which has occurred in the workplace, and the employee has been unable to resolve the problem through routine workplace discussions (or the employee reasonably believes that such discussions would be futile or counter-productive), the employee is invited to ask to discuss these issues further by use of the Problem Resolution Procedures (PRPs) included in this section. Most workplace problems arise through disagreement with some decision or action by the supervisor (and/or the company), or through disagreements with a coworker. These problems usually will be resolved using the normal PRP. However, in the case of serious legal violations by supervisors or coworkers which require immediate management attention, a separate Serious Incidents procedure has been adopted. Occassionally, problems may arise due to improper actions by customers, vendors or supplier, which should be handled using the Outsiders procedure. Remember that our supervisors are not mind-readers, and some of them may be so busy at times that they may not notice something which you think should be obvious to them (or, even if they saw something, they may not realize how serious it was to you). It is your obligation to tell your supervisor if something has happened which upsets you. If you don't like the answer, it is your obligation to appeal (as supervisors are human, so they can get busy and sometimes may not "hear" a problem unless you make an issue of it). Bottom-line: We are serious in our commitment to the principles of common courtesy, open communication and application of the Golden Rule. If we make mistakes (as everyone does), we want to fix them - but we cannot do this without your help. Return to Section 10 Index No-Retaliation Policy No employee will be penalized for use of the problem resolution procedure, as long as the employee presents such request for management review courteously and in good faith, and abides by the decisions and instructions of the immediate supervisor while the matter is under review (unless such instructions fall within the definition of serious supervisory misconduct described in the last part of this section). We are not so naive as to believe that every problem can be resolved to everyone's total satisfaction. However, we believe that most problems arise through miscommunication or lack of understanding of the reasons of the Company (or of a coworker) for a particular decision - so, if the problem can be resolved by talking through the concerns of the employee, everyone will benefit by the elimination of most workplace conflicts. Return to Section 10 Index Common Reasons for Using the PRP Most problems with coworkers seem to arise when two stubborn individuals refuse to be flexible and each tries to insist on having things his/her own way (although such problems also can arise when one person is so routinely inflexible that the coworker finally gets sick of giving in and refuses to budge, or where one employee fails to speak up and leads an otherwise flexible person to believe that agreement exists when it does not). Typically, these problems do not arise out of bad intent, but because both employees didn't talk things through sufficiently to see the other point of view. Once management provides the catalyst to help them to talk to one another, a workable solution normally can be reached. Most problems which employees have with the Company itself (or with a supervisor) seem to stem from lack of understanding of the point of view of the supervisor and/or the Company, or lack of good communication between the supervisor and the employee. Open communication with the supervisor (or with higher levels of management) will permit these problems to be resolved in most cases. For example, such discussions may allow the supervisor to discover that the employee may not have properly understood what job duties are most important in the work unit (so the employee has been focused on the wrong things); or the employee may discover that he really needs to pursue more training to meet his goals; or the employee may discover that certain conduct really has created more headaches than he realized (e.g., chronic tardiness is delaying the work of many other employees); or the employee may discover that there are legitimate reasons (such as cost or administrative problems) which caused the Company to adopt a particular policy which the employee dislikes. Similarly, if the employee is upset over the way in which a certain policy has been administered (for instance, he does not like the way in which vacation was scheduled), presentation of a complaint often allows the employee to see the larger picture behind why the rule was adopted. Such complaints also alert the Company to problems or situations which had not been foreseen, and can lead to changes or exceptions to the policy. Finally, even if the discussions reveal that there is simply an honest difference of opinion over such matters as whether certain discipline is justified (e.g., the employee cannot understand why a big issue is being made over attendance when he thinks that he is doing great overall), these discussions may be helpful in assisting the employee to decide whether compliance with certain rules is sufficiently burdensome that he should explore other work assignments within or outside of the Company. As a result, we encourage all employees to use the following problem resolution procedure if they are unhappy about any workplace issue, so that the Company is alerted to the problem early (in time to see if the problem can be resolved before little problems become big ones). Any time limits noted are advisory in nature, and may be waived where the Company finds it to be appropriate to do so. Return to Section 10 Index Normal Problem Resolution Procedure Step 1: As a general rule, problems are more easily resolved if they are raised quickly, so the employee should endeavor to discuss a problem or concern with his/her immediate supervisor within 3 working days after the incident occurred (or within 3 working days of the date when the employee became aware of the problem). Unless the problem involves a routine issue which the employee believes likely to be resolved by a brief discussion with the immediate supervisor, the employee should put the complaint in writing (and include enough facts so that reviewing managers will be able to understand what the problem is about). The immediate supervisor will endeavor to give the employee a response within three working days after the problem has been presented (and normally will respond in writing if the complaint has been presented in writing, although a meeting typically will be held to discuss the response in more detail). Please note: If the problem involves some act by the supervisor which the employee believes to have violated his/her rights under EEO laws, the employee may bypass a meeting with the supervisor and proceed to Step 2, if the employee so desires. However, because an appeal always can be filed later and because most supervisors will appreciate the courtesy of being given the opportunity to explain their actions, employees are encouraged to think about talking first with their supervisor about their concerns (unless the conduct was so highly offensive and unrelated to legitimate work matters that this appears fruitless or the conduct is sufficiently widespread that the management needs to be alerted to the situation, either through this procedure or through the procedure for reporting serious supervisory misconduct). Step 2: If the employee is not satisfied with the response, the employee may appeal to the next level of supervision within five working days. This appeal should include a written response to any new matters or issues raised by the response of the supervisor. The Manager will review this appeal and conduct any investigation which appears to be warranted. Normally, this investigation will be completed within five to ten working days (depending on the nature of the problem). If the problem appears to be a dispute over policy issues beyond the realm of authority of the Manager, the matter may be referred directly to Personnel for further handling. Once the Manager has completed his review, a brief written response will be provided to the employee. Step 3: If the employee remains unhappy with the response of the Manager, the employee may appeal the matter to the Personnel Manager for final resolution (unless the matter already has been referred to Personnel because it involves matters beyond the authority of the Manager). The Personnel Manager will review the file materials, conduct any additional investigation which may appear to be warranted, and render a final decision. Typically, this decision will be issued within five to ten working days, unless the matter is unusually complex. Step 4: Problems, disputes, or claims not resolved through the preceding problem resolution steps may be subject to mediation by a neutral mediator, if both the Company and the employee agree mediation is in their respective interest. Mediation is by mutual consent only. Return to Section 10 Index Procedure for Highly-Serious Incidents Procedure for Highly Unsafe or Illegal Conduct: The Company expects all of its employees, and particularly its supervisors, to be honest law-abiding citizens. We have instructed our supervisors that they are expected to do their best to observe and follow the law, in order to protect everyone in the Company, as well as members of the public. While we hope that all supervisors follow these instructions, we want to make it clear that no supervisor has the authority to engage in conduct, or to instruct any employee to engage in conduct, which would constitute a plain violation of the legal rights of the employee or coworkers, or a plain violation of the legal rights of the Company or the public at large. If a supervisor goes beyond his authority and intentionally or recklessly engages in conduct (directly or through orders to employees) which would place the Company or its employees at serious legal risk or which is likely to cause serious harm to third parties, we want for upper management to be alerted much more quickly than occurs when the standard problem resolution procedures are followed. As a result, we have created this special avenue to allow prompt reporting of such situations, along with some guidelines for employees to follow in the event that such a situation arises. The types of situations in which this expedited review procedure should be used are situations which will result (or have resulted) in serious criminal wrongdoing, or a serious violation of the rights of the employee or coworkers under applicable employment laws (including EEO laws), or would create risk of serious health/safety hazards, where the employee has reasonable grounds to believe that the supervisor will not fix the problem and the problem is so important or so urgent that the problem cannot be satisfactorily addressed through the normal problem resolution procedures. If the employee concludes that the problem fits into this category, the next step is to decide whether there is time to make a written report to top management or whether the problem is so urgent that top management must be contacted without delay. Usually, if there is time to do so, the employee should try to take the time to write a written report which describes the situation in detail; lists any witnesses; and identifies any facts or supporting records which would be helpful in the investigation. This report should be hand-delivered to the top location manager (unless that individual is implicated, in which case the data should be sent directly to Personnel). On the other hand, a situation could arise where it is absolutely urgent that top management become involved ASAP in order to prevent immediate serious harm to the employee, members of the public, and/or to the Company. An example would include a situation where a supervisor has made threats to force the employee or coworkers to do something immediately which is very unsafe or illegal (for example, telling employees that he will fire them one after another until he finds someone who drive a truck without brakes down a crowded freeway). Another example would include immediate demands by a supervisor that the employee do something which is likely to be traumatic and which would be a very serious violation of EEO laws (such as giving an immediate order for the employee to engage in sex with the supervisor or a customer, under threat of discharge). Employees are expected to refuse to follow an order to do anything which involves serious criminal wrongdoing and/or is likely to cause serious harm to them or to others. If such orders are given, the employee should refuse to obey the order, and ask the supervisor to reconsider (unless this is clearly fruitless). If the supervisor refuses to reconsider, the employee should tell the supervisor that the employee is leaving to make an immediate report of the matter (unless the supervisor is acting so irrationally that the employee fears an assault if this is done). The employee should then leave to make an immediate call to the top location manager or the Personnel Manager from the nearest available safe location. If it is after-hours and these individuals are unavailable, the employee may contact any available supervisor for assistance. If no supervisor can be located, the employee must then assess whether it is essential to take further action immediately to protect the safety of others, or whether it is sufficient to leave voicemail messages for management and to address the problem the next day. When a serious emergency exists which requires immediate action by someone in authority, the first thing to do is to take necessary steps to protect yourself (and coworkers, if there is time to warn them); get away from the danger; and then call for necessary help. If no manager is available to handle the matter (or there is no time to find a manager), then the employee may have no other option than to contact the necessary authorities for help. Some examples of situations which likely would require such actions would be where a boiler is ready to burst because the supervisor is insisting on overloading it, or the supervisor has just driven the truck without brakes off the lot, or the supervisor is acting irrationally (perhaps waving a gun in the air or threatening violence). In situations where employees are working without a supervisor present (so they essentially are supervising each other), these same types of steps should be followed if a coworker engages in conduct which, if committed by a supervisor, would fall into the category of serious supervisory misconduct. Thus, if the coworker cannot be convinced to stop doing something which is likely to cause serious injury to himself or another (or which involves serious criminal wrongdoing), then other employees have an obligation to contact management for help. Once the matter has been reported to management, it is in the interest of all concerned to avoid the possibility of unpleasant confrontations with the supervisor or coworker who was reported. Thus, depending on the circumstances, the employee or the supervisor (or both) may be asked to remain at home for a few days, or may be reassigned temporarily, so that the investigation can be completed without risk of such incidents. In most situations where an initial verbal report has been made, the employee will be asked to provide a full written statement as soon as possible. The employee should recognize that reports of serious supervisory misconduct are not taken lightly by the Company. One or more top managers usually will be required to drop other important business matters to look into the report, and the Company often will need to retain outside counsel to assist in the investigation. While the Company definitely wants to be alerted to serious problems promptly (and normally will give the benefit of the doubt to the employee where the report appears to have been made in good faith, even if it was mistaken), the Company reserves the right to deal severely with employees who intentionally or recklessly abuse this process. It is important for employees to use good judgement and common sense in deciding whether the matter is important enough to warrant immediate top- priority attention by high-level management (e.g., use of this procedure to report some trivial error, such as filing reports in duplicate when government regulations require filing in triplicate or to report some minor safety issue such as a burnt-out light bulb, would be a huge waste of top management time - and could cause management to question the motives or intent or common sense of an employee who failed to use normal problem resolution channels to address such matters). Return to Section 10 Index Procedure for Misconduct by Outsiders (Third Party Misconduct) The Company will not tolerate any harassment of its employees by any outside vendor, customer, visitor or supplier. In the case of name-calling or similar forms of verbal harassment, the employee should try to remain calm and use common sense in dealing with the abusive individual (especially if the person is irate), while either sending a coworker to find a supervisor or excusing themselves to find a supervisor to deal with the individual. Maintaining an attitude of calm courtesy is always difficult while being verbally abused, but it helps to protect the employee from getting into a shouting match or ugly confrontation (so this is much safer for the employee, and also helps to avoid later arguments over who started the conflict). Keeping a calm head also makes it easier for the employee to concentrate on keeping notes about exactly what happened (which will greatly assist the Company in later discussions about the incident with the harasser and/or his employer). Of course, if the employee feels physically threatened (including in danger of a sexual assault), the employee should find any excuse to get away from the individual, go to a safe place, and then immediately contact a supervisor and/or Security for further assistance. Sometimes, situations may arise where no offense may have been intended by the outside individual (such as joke-telling by a salesman which may offend some highly-religious individuals, but does not offend most other employees). It is best to bring these situations to the supervisor, and obtain guidance on the best ways to handle the matter to address your concerns, while also avoiding a possible unpleasant confrontation with an important customer or vendor who likely had no evil intent. For example, there may be occasions when the contacts with this individual are so infrequent, and the nature of the conduct is so mild, that the simplest solution is to permit the offended individual to avoid dealings with this outside person. If the employee is unhappy with the solution devised by the supervisor, the problem resolution procedure is available to deal with such concerns, and to address any alternative solutions which the employee wishes to propose. The problem resolution procedure also should be used to report activities by customers, vendors or suppliers which appear to violate our Conflict of Interest policies. Timely reporting of such actions is essential to protect the Company's interests, as well as those of the employee. Likewise, employees have an obligation to report coworkers who are in violation of those policies. Return to Section 10 Index Table of Contents Legal Notice Appendix A: Drug Testing Policy 1. General Policies on Drug/Alcohol Use The Company has a policy which prohibits any employee from reporting to work, or remaining on duty, with ANY detectable level of alcohol or illicit drugs in their bodies. It is the belief of the Company that it will have a better workforce if the Company discourages any use of illicit drugs by its employees. Likewise, it is the belief of the Company that it will have a better workforce if it discourages any use of alcohol by employees at a level which is still detectable in their blood/urine when such employee reports to work. Therefore, the Company has chosen to adopt a "no detectable level" standard - rather than a standard based upon perceived intoxication and/or levels above a certain permissible limit. All employees should be on notice that, if they choose to use illicit drugs or engage in the habitual use of alcohol (even during off-duty hours), they are likely to report to work with detectable levels of such substances - and severe disciplinary action will be taken against them for violation of the Company's drug/alcohol policy. The Company also has strong policies, which are set forth below, which prohibit possession/use/transfer of illicit drugs on Company property and which likewise restrict the possession/use of alcohol on Company property. Finally, to insure worker and customer safety, all employees who take prescribed drugs which may affect their mental or physical alertness are required to report such information to the Plant Nurse, in order to obtain clearance to work while using such prescribed medications. Details of this policy are set forth below. a. No working while under the influence It is the policy of the Company to prohibit employees from reporting to work with detectable amounts of alcohol or any non-prescribed controlled substances in their blood/urine; to conduct appropriate testing to verify whether such levels are present; and to require evaluation and treatment of employees found in violation of this policy as a condition of continued employment. b. Reporting of certain prescription drugs The Company requires employees to report to the Company Nurse whenever they are taking any prescribed drugs which contain warning labels concerning effects on concentration; on sedation; or on the operation of machinery or motor vehicles. The Company will assess the work of the employee, and the individual effects on the employee, in making a decision whether the employee should be placed on medical leave during the time when this prescription is required. c. Prohibited conduct on Company property It is the policy of the Company to immediately discharge any employee who has any non-prescribed controlled substance in his/her possession on Company property; who transfers or sells any such substance to another person on Company property; or who accepts or purchases any such substance on Company property. It likewise is the policy of the Company to discharge any employee who has alcohol in his possession on Company property (except for unopened containers kept at all times in trunk of the employee's locked personal vehicle). For the purposes of this Policy, Company property includes any Company vehicle. 2. Circumstances Under Which Drug/Alcohol Testing Will Occur The Company will conduct testing of employees and applicants under the following circumstances. Refusal of any employee or applicant to participate in such testing shall be considered grounds for termination a. Testing of Applicants All applicants are offered employment conditioned upon their successful passing of a drug/alcohol test. Failure to submit to such testing shall be grounds for refusal of employment. If the test shows a positive result for presence of drugs or alcohol, and such test results are confirmed, then such test results shall be grounds for refusal of employment. b. Testing Based On Reasonable Suspicion of Violation Whenever the Company has a reasonable suspicion that an employee has violated the policy of the Company, the Company reserves the right to insist that the employee submit to a drug/alcohol test as a condition of employment. "Reasonable suspicion" means a belief that the employee has used, or is using, drugs/alcohol in violation of the policy of the Company, based upon such factors as: observable phenomena, such as display of physical symptoms of usage of such substances while on duty or actual observation of such usage; reliable and corroborated reports by others that the employee has used forbidden substances while on duty; evidence that the employee has tampered with one or more prior drug/alcohol tests while employed with the Company; or evidence that the employee has been involved in drug possession, use or sale while on Company property or while using Company equipment. c. Post-Accident Testing Whenever the employee has been involved in a work-related injury to himself or a coworker or has damaged Company property in an amount anticipated to exceed $500, the Company reserves the right to require that the employee submit to a drug/alcohol test as a condition of continued employment. The Company also reserves the right to conduct post-accident testing under Clause 2.b, above, where the Company has a reasonable suspicion that the accident occurred because of a violation by the employee of this Policy. d. Random Testing In addition to testing based upon reasonable suspicion, the Company reserves the right to randomly test employees for compliance with its policy. As used in this Policy, "random testing" means a mechanism for selection of employees for testing which results in an equal probability that any employee from a group of employees will be tested, and which does not give the Company discretion to waive the selection of an employee selected by this random selection method. e. Scheduled Periodic Testing The Company further reserves the right to conduct drug/alcohol testing as a part of regularly scheduled physical exams for its employees. In addition, the Company reserves the right to conduct periodic testing on a regularly scheduled basis for employees in designated departments, classifications or work groups. Normally, such testing will not be scheduled more often than annually. f. Post-Rehabilitation Testing Where the employee has had a confirmed positive test result, or has been sent to a drug/alcohol dependency program at the request of the employer (and/or paid in whole or in part by an employee benefit program), the Company reserves the right to condition continued employment of such employee upon the taking and passing by the employee of follow-up drug/alcohol tests during a probationary period (which tests may be scheduled as many times as the Company considers necessary within the two (2) year period after the employee's return to work). 3. Employees and Applicants Who Are Subject To Testing All applicants are subject to testing as a condition of hire. All employees are subject to testing whenever they fall within one of the categories set forth in Section 2, above. 4. Substances Covered By Drug/Alcohol Testing Employees and applicants will be tested for their use of alcohol (ethyl alcohol), and for their use of commonly-abused controlled substances, which (at the present time) include: Amphetamines, Barbiturates, Benzodiazepines, Opiates, Cannabinoids, Cocaine, Methadone, Methaqualone, Phencyclidine (PCP), Propoxyphene, and chemical derivatives of these substances. Common street or brand names of these substances include: speed/uppers; downers; tranquilizers, such as Valium; sleeping pills; pain killers, such as Demoral; morphine; heroin; marijuana/grass; angel dust; quaaludes; coke; and opium. Because the listing of all possible drugs of abuse is quite lengthy, and changes from time to time, at the time of the test, interested employees should request a listing of all substances to be tested from the testing laboratory. Employees should be aware that certain substances are detectable in the urine for several weeks after usage. Therefore, all employees are cautioned to be certain to advise testing lab employees of all prescription drugs taken in the past month before the test, and to be prepared to show proof of such prescription to testing lab personnel and/or Company officials. 5. Testing Methods and Procedure All testing will be conducted by a licensed independent medical laboratory, which will follow testing standards established by the State of Oklahoma and/or federal government. Testing will be conducted on a urine sample provided by the employee to the testing laboratory under procedures established by the laboratory to insure privacy of the employee, while protecting against tampering/alteration of the test results. Applicants will submit to testing before hire, and will not be paid for time spent in taking the test. Employees will be considered to be engaged at work for the time spent in taking any tests, and will be compensated for such time at regular rates. The Company will pay for the cost of the testing, including the confirmation of any positive test result by gas chromatography. The testing lab will retain samples in accordance with State law, so that an employee may request a retest of the sample at his/her own expense if the employee disagrees with the test result. 6. Consequences of Refusal to Undergo Testing Employees and applicants who refuse to take testing which is requested under this Policy are subject to immediate discharge or withdrawal of the offer of employment. All personnel should be aware that the Oklahoma Standards for Workplace Drug Testing Act provides that refusal to take a lawfully requested drug/alcohol test, or testing positive on such a test, constitutes "misconduct" within the meaning of the Oklahoma Unemployment Compensation laws and will disqualify an individual from receipt of unemployment compensation. 7. Potential Adverse Personnel Action From Positive Test If applicants have a positive test result, the Company reserves the right to immediately withdraw the offer of employment unless the applicant can provide a satisfactory explanation of the positive test, and thereafter can take and pass another drug/alcohol test. If an employee tests positive on an initial screening test, the employee may be temporarily suspended while the confirmation test is being conducted. On receipt of the confirmation test, the employee is subject to disciplinary action, up to and including discharge. The type of discipline selected by the Company will depend upon a variety of factors, including the prior work record of the employee; the length of prior employment; the prior accident and attendance record of the employee; the circumstances which led to the testing; and the proposals by the employee to address the problem. All employees will be advised of the existence of the Company's Employee Assistance Program through applicable employee handouts and manuals. Employees will be reminded of the availability of such program at the time that the Company provides the employee with positive test results. However, the existence of the EAP - or use by the employee of the EAP - does not constitute any guarantee of continued employment with the Company of any employee who has received a positive test result. 8. Right to Explain Test Results All employees and applicants have the right to meet with the testing laboratory personnel, and with the Company, to explain their test results. These discussions shall be considered confidential (except that information disclosed in such tests may be communicated to personnel within the Company or within the Lab who need to know such information in order to make proper decisions regarding the test results or regarding the employment of the individual). 9. Right to Review Records Employees and applicants have a right to obtain copies of all test results from the testing laboratory, or from the Company. When the individual disagrees with the test results, the individual may request that the testing laboratory repeat the test. Such repeat test shall be at the expense of the individual, unless the repeat test overturns the original report of the Lab, in which case the Company will reimburse the employee for the costs incurred for the retest. 10. Confidentiality Requirements All records concerning test results will be kept in medical files which are maintained separately from the personnel file of the employee/applicant. These test records cannot be used in any criminal or civil proceeding, except where such action has been brought by the Company or involves a suit between the Company and the employee, unless the records have been ordered released in accordance with a valid order of the Court. The records cannot be disclosed to any other person by the Company, in the absence of a Court Order, except where the employee/applicant has signed a release which specifically authorizes the Company to disclose such records to the requesting person. Except where testing is done as a part of a routine employee/applicant physical exam, testing laboratories may conduct testing only for substances included on the Disclosure list provided to the individual, and may not conduct general testing related to the medical conditions of the individual which are unrelated to drug/alcohol usage. 11. Available Appeal Procedure, Remedies and Sanctions Employees and applicants may request a retest of their positive test results, within five (5) working days after notification by the Company of such positive test result. This retest is at the expense of the individual, unless the original test result is called into question by the retest. Where the employee/applicant believes that the positive test result was affected by taking of lawful or prescribed substances, the individual may be suspended without pay (or hire date postponed) pending receipt of confirming information to substantiate the claims of the individual. Normally, the individual will be provided no more than five (5) working days in which to provide this additional information. Once the Company has determined that there is insufficient evidence to indicate that the test results are inappropriate, the Company will advise the individual of its decision concerning disciplinary and/or corrective action. Applicants have no further appeal rights. If an incumbent employee disagrees with the decision of the Company, the individual must present an alternative written proposal to the Personnel Manager within five (5) working days of notification of this decision. The Personnel Manager, in his/her discretion, may adopt the original decision of the Company, or may adopt the plan proposed by the individual, or may adopt such different plan as may appear to be workable, The decision of the Personnel Manager on such plan shall be final. Once the Personnel Manager has made a final decision regarding the plan which is acceptable to the Company, the individual must notify the Personnel Manager within three (3) working days whether he/she will comply with the terms of the plan. If the employee refuses to sign an agreement to be bound by the terms of such plan, the employee may be discharged. If an employee or applicant believes that the Company has willfully violated their rights under the Oklahoma Standards for Workplace Drug and Alcohol Testing Act, such individual is entitled to file suit within two years of discovery of such violation or within two years of the exhaustion of any internal appeal rights set forth in this Policy. A willful violation of the Act also is a misdemeanor under Oklahoma law. Available remedies in a civil suit include reinstatement, payment of lost wages, and restoration of full benefits, but attorney fees and costs can be awarded to the prevailing party (which means that the Company may obtain its attorney fees and costs from the employee if the suit is unsuccessful). 12. Notice of Policy Changes The Company reserves the right to modify, alter or amend this Policy at any time, and for any reason. Under Oklahoma law, no changes in the Policy can take effect until thirty days after the new Policy has been given to employees. Therefore, employees are encouraged to periodically review the Employee Bulletin Board so that they can be aware of any changes or alterations in this Policy. 13. Policy Does Not Change "At Will" Status Unless an employee has a written contract of employment which has been signed by the President and approved by the Board of Directors, all employees are considered to be employed "at will". This means that, under Oklahoma law, the employee may quit at any time for any reason and the Company may choose to end the employment relationship for any time and for any reason. Nothing in this Drug/Alcohol Policy is intended to alter in any way the "at will" employment relationship, or intended to create any contract of employment between the Company and any employee. Acknowledgement of Receipt of Drug/Alcohol Policy Form Table of Contents Legal Notice Appendix B: Sample Forms Orientation Checklist Acknowledgement of Receipt of Drug/Alcohol Policy Application for Employment FMLA Certification by Health Care Provider Response by Employer to Request for FMLA Leave Orientation Checklist Supervisors: This Form Must Be Completed Before Any Employee Is Put To Work EMPLOYEE NAME: __________________ SUPERVISOR: _______________ DATE: _____________ DEPARTMENT AND CLASSIFICATION: ________________________ 1) Pay policies and procedures _____________ 2) Reporting Structure _____________ 3) Fringe Benefits ___________ 4) Safety Rules ___________ 5) Required safety equipment ____________ 6) Company Rules __________ 7) EEO Policies __________ 8) Employment At Will Policy _________ 9) Handbook signed for _________ 10) New Hire Forms completed __________ I certify that I have been informed of each of the matters listed above, have been given the opportunity to ask any questions which I may have, and fully understand the terms of my employment with the Company. Employee Signature _____________________ Date ________ Company Representative __________________ Date ________ Return to Appendix B Index Acknowledgement of Receipt of Drug/Alcohol Policy This is to acknowledge that I have received a copy of the Company's Drug/Alcohol Policy. I understand that, as a condition of my employment, I may not report to work or remain on duty with ANY detectable levels of illicit drugs or alcohol in my body, and that I am further obligated to comply with the remaining provisions of the Policy. I understand that, from time to time, I may be requested to take drug/alcohol tests in accordance with the provisions of the Policy. I specifically agree to take such tests, and to be bound by the results thereof (subject to any right which I may have to obtain independent confirmation of such test results). I further understand that, if I refuse to take any drug/alcohol test which is requested by the Company in accordance with this Policy, I am subject to immediate discharge. In addition, I acknowledge that I have been informed that Oklahoma law may treat my refusal of testing as grounds to disqualify me from receiving unemployment compensation. By accepting and/or continuing my employment with the Company, I agree to be bound by all provisions of its Drug/Alcohol Policy, including any amendments or modifications which may be made in the future. I understand that any changes of the Policy will be posted on the Employee Bulletin Board, and that it is my obligation to monitor such notices in order to familiarize myself with any changes in this Policy. __________________________ Signature of Applicant/Employee __________________________ Print Name of Employee/Applicant Date: _____________________ Witness: ___________________ Return to Appendix B Index Application for Employment Notice to All Applicants: Our Company is an Equal Opportunity Employer and does not discriminate due to race, sex, religion, national origin, age, handicap or status as a disabled veteran or veteran of the Vietnam era. Date: ___________ Position Sought (Be specific): ____________ Name (Last, First, MI, Name used): ___________________________________________ Soc. Security No. __________________ l8 or over? ____ Eligible to work in US? ____ Where can we contact you:? Address________________________________________ Phone__________ Best times? _________ How were you referred to us? ________ EDUCATION/TRAINING Name/location of school Courses studied GPA Graduated? PHYSICAL/MENTAL/ATTENDANCE QUALIFICATIONS Can you meet all requirements of the job applied for (including attendance requirements), with or without reasonable accommodation? ____ If no, please describe requirements which you cannot meet: ______________________________________________________________ How will you get to work? ______________ How often were you absent from work during the past year? _________________ How often were you late for work? ___________________ EMPLOYMENT HISTORY (List all jobs held within the past 10 years, with most recent job listed first. Use extra sheets if necessary) Company Positions Held Last Supervisor Final Payrate Reason for Leaving Name Experience Machines Software If laid off, will you accept Address/Phone Acquired: Operated: Used: recall? Company Positions Held Last Supervisor Final Payrate Reason for Leaving Name Experience Machines Software If laid off, will you accept Address/Phone Acquired: Operated: Used: recall? Company Positions Held Last Supervisor Final Payrate Reason for Leaving Name Experience Machines Software If laid off, will you accept Address/Phone Acquired: Operated: Used: recall? Explanation for gaps: ______________________________________________ Other training or experience: ________________________________________ Are you claiming Veterans preference? _________ As disabled vet? ___(If so, we will need proof of your service-connected disability). Please list date of discharge, type of discharge, and highest rank ________________________________________________________ I certify that the above information is correct and truthful, and that falsification of this application is grounds for rejection of the application or immediate discharge if I have been hired. I authorize you to contact any prior employers, and release them and you from any liability arising from disclosure of information concerning my past employment history. I understand that, as a condition of employment, I may be asked to pass a medical exam and that, if employed, I will be employed "at will". Applicant Signature _____________________ Return to Appendix B Index FMLA Certification by Health Care Provider The following employee has requested leave under the Family & Medical Leave Act (FMLA) due to a serious health condition of the employee or family member. In order to assess this leave and make necessary plans, our Company needs the following information about the condition, as well as the anticipated duration of leave. Under the FMLA, leave is permitted for periods of time when the patient is incapacitated due to a covered condition, or is receiving treatment for a covered condition, or is recuperating from a covered condition. FMLA permits intermittent and partial days of leave for doctor's appointments, therapy, treatment and other medically-necessary time off due to the condition. Please indicate if such leave will be needed. 1. Employee Name: ________________________________ 2. Patient Name (if leave due to care for family member):____________________________ 3. The attached sheet describes the types of serious health conditions covered by FMLA. Please indicate the category into which the patient's medical condition falls: A __ B__ C__ D __ E __ F __ None of these:____ If None, explain why you believe that FMLA may cover this leave:______________________________________ 4. Briefly describe the medical facts showing that patient has the medical condition checked above, and indicate when this condition first manifested itself: 5. During what time period do you expect that patient will be under your care for this condition? Start ________________ End ________________ 6. Please briefly describe anticipated regimen of treatment: 7. If leave is being sought for employee's own medical condition (not that of family member), please provide the following information about employee's present condition: 1. Can employee perform any work of any type (including work other than existing job)? ____ If so, what type of work?___________________________________________________ 2. Can employee perform the essential functions/duties of his/her existing job? ____ If no, please indicate essential functions which cannot be fully performed due to the condition?______________________________________ 8. Please go to the applicable section, and provide information about the leave required. 1. Pregnancy: If patient is pregnant, is patient presently incapacitated? _____ Are any periods of incapacity foreseen before delivery? ____ If so, when/why? ________________________ Full day ___________________ Partial day (if so, how much time and how often?) ___________________ Will other part-day or intermittent leave be required for treatment, recuperation or medical appointments? _____ If so, specify how often and for how long (e.g., 2 hrs twice/week for 2 months): ___________________________ 2. Chronic Conditions: If patient has chronic condition, is patient presently incapacitated? ___________ For how long? ________________ If not, do you expect future period (s) of incapacity? _____ How often? ______ Duration? _______ Full day _____________________ Partial day (if so, how much time and how often?) _____________________ Will other part-day or intermittent leave be required for treatment, recuperation or medical appointments? _____ If so, specify how often and for how long (e.g., 2 hrs twice/week for 2 months): ___________________________ 3. Acute Conditions: If patient has acute condition, is patient presently incapacitated? ___________ For how long? ________________ If not, do you expect future period(s) of incapacity? _____ How often? ______ Duration? _______ Full day _____________________ Partial day (if so, how much time and how often?) _____________________ Will other part-day or intermittent leave be required for treatment, recuperation or medical appointments? _____ If so, specify how often and for how long (e.g., 2 hrs twice/week for 2 months): ___________________________ 9. If patient is family member of employee, please provide the following additional information: 1. Is the assistance of employee required in order for patient to be able to obtain medical care, or in order to provide for basic daily needs while patient is incapable of self-care? ______ 2. Is presence of employee required due to psychological condition of patient? _____ Physician Signature: ______________________ Speciality: ________________________ Address: ____________________________________ Phone: ____________________ Definitions Any of the following types of medical problems may constitute a "Serious Health Condition" under FMLA: pregnancy; chronic conditions requiring ongoing treatment; non-chronic conditions which involve multiple treatments (e.g. chemotherapy and other cancer treatments); permanent conditions requiring ongoing supervision; acute medical conditions which involve incapacity for at least 3 consecutive days, coupled with ongoing medical care or treatment; or hospitalization in a residential medical facility. Please use the definition which most closely matches the condition (e.g., the "pregnancy" category should be used for pregnancy-related conditions, even though pregnancy also may involve some short hospital stay for delivery). A. "Pregnancy" means all medical care in connection with pregnancy (including prenatal care, delivery, and necessary healing time post-delivery), as well as any periods of incapacity resulting from the pregnancy. Treatment for other reproductive conditions/problems should be assessed under other definitions. B. "Chronic Condition" means a condition which is likely to extend over a prolonged period of time (and often is permanent); is likely to require ongoing periodic treatment (including physical or respiratory therapy, dialysis, and other similar treatment ordered by the physician); and often results in episodic periods of full or partial incapacity (e.g., flareups or relapses of conditions such as Crohn's, MS, epilepsy or diabetes). C. "Multiple Treatments (Non-Chronic Condition)" means any serious health condition which is not expected to be chronic in nature for which the health care provider has prescribed an ongoing course of multiple treatments (which may include surgery) in the expectation of curing the underlying disease or permitting restoration of function/appearance after a serious accident or similar health incident (such as radiation or chemotherapy for cancer where recovery is expected, physical/speech therapy following stroke from which substantial or full recovery is expected, restorative surgery and treatment after severe burns, and other comparable types of treatment). Periods of incapacity during this treatment may vary widely (but, in the absence of treatment, likely would have resulted in total incapacity of three consecutive days or longer). D. "Permanent Condition Primarily Requiring Supervision" means a condition which involves long-term or permanent incapacity where the primary medical care is likely to be palliative or supervisory in nature (such as end-stage disease, senile dementia, permanent paralysis, or similar conditions). E. "Acute Serious Health Condition" means a serious health condition which involves total incapacity of three (3) or more consecutive calendar days and which also involves one of the following: (1) treatment on at least two (2) occasions by a physician or other health care provider; or (2) treatment on at least one occasion by a physician or other health care provider, coupled with a regimen of continuing medical treatment (which includes a course of antibiotics, physical therapy using specialized equipment, or similar physician-prescribed medical treatment - but does not include activities which could have been initiated by the patient without any visit to a health care provider, such as taking OTC medications or general bed rest unaccompanied by prescribed medication or therapy). F. "Hospitalization" means an overnight stay in a residential medical facility (and also includes post- discharge followup care related to the treated condition) related to a condition which does not fall into one of the other categories. Return to Appendix B Index Response by Employer to Request for FMLA Leave Employee Name: _______________ Date of Request: ____________ Supervisor/Dept: _________________________ You have requested FMLA leave for one of the following reasons: 1. Birth or adoption of child, or placement of child with you for foster care; 2. Your own serious health condition which renders you unable to perform the essential functions of your job; 3. A serious health condition affecting a covered member of your immediate family, for whom you intend to provide care. As you should be aware from our published policies, FMLA allows up to 12 weeks of leave in a 12-month period for the reasons listed above. FMLA leave is unpaid, except where you have available paid leave time which can be applied to the FMLA leave. Your health insurance benefits (if any) will continue during any period of FMLA leave on the same basis as before the leave. If you are able to return from the leave before exhausting your FMLA leave allowance, you will be entitled to reinstatement to the same or an equivalent job (unless you fall within the category of highly-compensated individuals and we have noted below that you are not eligible for reinstatement or unless you would have been terminated even if not on leave due to a general workforce reduction, restructuring or other similar valid business reason). If you fail to return from FMLA leave, you may be required to reimburse the Company for its share of your health insurance premiums unless you are unable to return due to a serious health condition or due to other circumstances beyond your control. This is to inform you that: 1. You are ___ eligible ___ not eligible for FMLA leave. 2. Your request for FMLA leave has been ____ approved ___ denied ___ is pending receipt of proper medical certification. 3. If approved as FMLA leave, the requested leave time will be counted against FMLA time available to you. 4. You ___will ___ will not be required to furnish medical certification of a serious health condition. If required, medical certification must be furnished within 15 days of this notice. Failure to timely submit medical certification may result in postponement or denial of leave. 5. We ___ will ___will not require that you substitute available accrued paid leave before using unpaid leave. Our records indicate that you currently have the following paid leave available in your account: 6. If FMLA leave is approved, you ___ will ___ will not be required to reimburse us for your share of any health insurance premiums during the leave. If required to reimburse us for your health insurance premiums, you must furnish a check in the amount of ______ to Personnel by no later than the 1st of each month of your leave. If payment is not timely received within the standard 30-day grace period following the due date for such payment, your health insurance may be cancelled. You will be given 15 days notice of the intent to cancel your health insurance for non-payment. 7. If you wish to continue other insurance benefit programs during your leave (life insurance, disability insurance, etc.), you also will need to provide us a check for your share of those premiums on the same basis as indicated above. 8. You ___ will ___ will not be required to provide a fitness for duty certificate prior to reinstatement to your position. If such a certificate is required and has not been received, your reinstatement may be delayed pending receipt of the certificate. 9. You ___ are ___ are not considered to be a highly-compensated "key employee" as defined by FMLA. Under FMLA, if substantial and grievous hardship would result from holding open the job of a "key employee", this is grounds for denial of reinstatement. We ___ have ___ have not determined that substantial and grievous hardship will result which would prevent your reinstatement following your leave. 10. While on leave, you ___ will ___ will not be required to provide periodic reports regarding the status of your health condition and your intent to return to work. If periodic reports are required, these reports will be due every ___ weeks. Failure to provide reports when due may result in denial of further leave. 11. If you are able to return to work before your leave expires, you must notify us as soon as you learn of this fact and provide a minimum of 2 working days notice of your early availability to return to work. 12. If your health care provider has advised that your serious health condition is of the type which will require ongoing treatment over a period of several months or longer, we will require periodic recertifications regarding the status of your health condition. These recertifications will be required to be submitted every six months, unless we advise you in writing that a different schedule will apply due to the circumstances in your particular case. Company Official: ___________________ Date: ________________
"Sample Business Plan for Funeral Home"