Matthies Law Firm, P.C.  

Serving as Employment Law Advisors for over 25 years

Full Text of Sample Intranet-Ready Employee Handbook

This sample employee handbook is intended for general informational purposes only, and should not be applied to any particular legal problem without consultation with your own legal counsel. No attorney-client relationship is established by your access to, or review of, materials on this Website.   Please note that these materials are subject to copyright by their creator (Matthies Law Firm, P.C.), and are used here with express permission from that firm. For more information about Matthies Law Firm, P.C., see the About Us section. These materials may not be reproduced, sold or used by any law firm, personnel consultants or other persons engaged in the business of providing personnel or employment law counselling to businesses, without the express written consent of Matthies Law Firm, P.C. Any other corporation or business entity (including non-profit group) may reproduce the same for their internal use only, provided that appropriate attribution is given to Matthies Law Firm, P.C. as the source of these materials. By accessing any materials on this website, you agree to the foregoing limitations and further agree that any and all disputes arising out of your access or use of these materials must be brought in the courts within Tulsa County, Oklahoma, regardless of the place where you may have accessed these materials.

Special caution should be used in reliance on the summaries of federal and state employment laws, as many laws summarized are quite lengthy, and the regulations which interpret them may be even longer.  As with all summaries, there may be provisions which have been omitted from these materials which could be vitally important in certain factual contexts. Furthermore, these pages are not updated daily, so changes may have occurred which have not yet been included here. In addition, there may be federal laws or the laws of other states which govern the particular problem, and the answer to a particular legal problem may vary depending on a number of factors.

Likewise, provisions in the sample Employee Handbook may be entirely lawful in one state or locale, and yet illegal in another. Thus, the sample Handbook and all legal summaries should be used ONLY for general management education about employment laws and policieis, or as preliminary tools to trigger further research, and not as a substitute for consultation with experienced legal counsel (who typically will review the full text of federal and applicable state statutes, the full text of all regulations, and the applicable federal and state case law before attempting to advise a client about the law which applies to the particular factual scenario presented).

Table of Contents

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!

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.

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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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 counselling 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.

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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).

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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).

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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.

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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).

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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.

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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.

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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.

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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.

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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]

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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.

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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.

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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.

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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.

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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).

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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

Payment on Termination

Vacation Scheduling

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