higginbotham handbook 0317 · 2017. 3. 31. · time off for religious observances ... attendance...

Employee Handbook

TERMS & CONDITIONS OF EMPLOYMENT ................................................. 1 AT-WILL EMPLOYMENT STATUS ............................................................................................................. 1

MODIFICATION OF TERMS AND CONDITIONS ...................................................................................... 2

MANUAL IS NOT A CONTRACT ................................................................................................................. 2

MISREPESENTATIONS ................................................................................................................................. 2

ENFORCEMENT AND INTERPRETATION OF POLICIES ........................................................................ 2

REPORTING OF POLICY VIOLATIONS ..................................................................................................... 3

EMPLOYMENT ...................................................................................................... 4 EQUAL EMPLOYMENT OPPORTUNITY (EEO) ........................................................................................ 4

DIVERSITY ..................................................................................................................................................... 5

DISABILITY ACCOMMODATIONS ............................................................................................................ 5

RELIGIOUS ACCOMMODATIONS .............................................................................................................. 5

HIRING ............................................................................................................................................................ 6

CRIMINAL CONVICTIONS/BACKGROUND INVESTIGATIONS ........................................................... 6

ORIENTATION ............................................................................................................................................... 7

PERSONNEL FILES ....................................................................................................................................... 7

CAREER ADVANCEMENT OPPORTUNITIES ........................................................................................... 8

EMPLOYMENT OF RELATIVES .................................................................................................................. 8

REHIRING FORMER EMPLOYEES ............................................................................................................. 9

EMPLOYEE REFERRAL PROGRAM ........................................................................................................... 9

EMPLOYMENT REFERENCES .................................................................................................................. 10

COMPENSATION ................................................................................................. 11 WAGE AND HOUR/EMPLOYMENT CLASSIFICATIONS ...................................................................... 11

JOB DESCRIPTIONS .................................................................................................................................... 11

PERFORMANCE REVIEWS ........................................................................................................................ 12

SALARY ADMINISTRATION ..................................................................................................................... 12

OVERTIME ................................................................................................................................................... 12

WAGE ASSIGNMENTS AND GARNISHMENTS ..................................................................................... 13

PAYROLL ...................................................................................................................................................... 13

EXEMPT SALARY BASIS ........................................................................................................................... 13

BENEFITS .............................................................................................................. 14 BENEFITS ELIGIBILITY AND CREDITED SERVICE ............................................................................. 14

HOLIDAYS .................................................................................................................................................... 14

TIME OFF FOR RELIGIOUS OBSERVANCES .......................................................................................... 15

PAID TIME OFF (PTO) ................................................................................................................................ 15

VACATION ................................................................................................................................................... 17

JURY DUTY AND COURT APPEARANCES ............................................................................................. 18

BEREAVEMENT PAY ................................................................................................................................. 19

VOTING ......................................................................................................................................................... 19

FAMILY AND MEDICAL LEAVE OF ABSENCE ..................................................................................... 19

MILITARY LEAVE ...................................................................................................................................... 25

MEDICAL INSURANCE .............................................................................................................................. 28

GROUP LIFE/ACCIDENTAL DEATH & DISMEMBERMENT (AD&D) INSURANCE ......................... 28

LONG TERM DISABILITY INSURANCE .................................................................................................. 28

OTHER VOLUNTARY INSURANCE OPTIONS ....................................................................................... 29

CONTINUING INSURANCE COVERAGE ................................................................................................. 29

SECTION 125 PLAN ..................................................................................................................................... 30

401 (k) PLAN ................................................................................................................................................. 30

STOCK APPRECIATION RIGHTS .............................................................................................................. 30

LICENSING ................................................................................................................................................... 30

CONTINUING EDUCATION REQUIREMENTS ....................................................................................... 30

WORKERS’ COMPENSATION ................................................................................................................... 31

OPERATING ......................................................................................................... 33 HOURS OF WORK, MEAL AND BREAK PERIODS ................................................................................ 33

BREAKS FOR NURSING MOTHERS ......................................................................................................... 33

TELECOMUTING ......................................................................................................................................... 33

EMERGENCY CLOSING/INCLEMENT WEATHER ................................................................................. 34

ATTENDANCE AND PUNCTUALITY ....................................................................................................... 34

STANDARDS OF CONDUCT ...................................................................................................................... 35

CONFLICTS OF INTEREST ........................................................................................................................ 36

GIFTS / ENTERTAINMENT ........................................................................................................................ 36

EMPLOYEE DATING .................................................................................................................................. 36

CONFIDENTIALITY OF COMPANY INFORMATION ............................................................................ 37

PROTECTED HEALTH INFORMATION (PHI) ......................................................................................... 38

OUTSIDE EMPLOYMENT .......................................................................................................................... 39

NOTARY PUBLIC ........................................................................................................................................ 39

OFFICE ATTIRE GUIDELINES................................................................................................................... 39

COMPANY PROPERTY AND SERVICES ................................................................................................. 40

GENERAL HOUSEKEEPING ...................................................................................................................... 41

VISITORS ...................................................................................................................................................... 42

PERSONAL BELONGINGS ......................................................................................................................... 42

PARKING ...................................................................................................................................................... 42

BULLETIN BOARDS ................................................................................................................................... 42

SOLICITATIONS AND CONTRIBUTIONS ................................................................................................ 42

USE OF COMPANY CREDIT CARDS ........................................................................................................ 43

EXPENSE REIMBURSEMENT ................................................................................................................... 43

DRIVING ON COMPANY BUSINESS ........................................................................................................ 43

SECURITY .................................................................................................................................................... 44

SAFETY ......................................................................................................................................................... 44

COMMUNITY INVOLVEMENT ................................................................................................................. 45

EMPLOYEE SUGGESTIONS ....................................................................................................................... 45

PROBLEM RESOLUTION ........................................................................................................................... 45

WORKPLACE MONITORING AND SEARCHES ...................................................................................... 45

ELECTRONIC COMMUNICATIONS ......................................................................................................... 46

COMPUTER SOFTWARE ............................................................................................................................ 47

SOCIAL MEDIA............................................................................................................................................ 48

CELL PHONES AND MOBILE DEVICES .................................................................................................. 49

VIOLENCE AND WEAPONS ...................................................................................................................... 50

USE OF TOBACCO ...................................................................................................................................... 50

SUBSTANCE ABUSE ................................................................................................................................... 50

ALCOHOL CONSUMPTION ....................................................................................................................... 53

HARASSMENT ............................................................................................................................................. 54

UNSATISFACTORY PERFORMANCE, BEHAVIOR, AND CONDUCT ................................................. 55

DISCIPLINARY GUIDELINES .................................................................................................................... 57

SEPARATION ....................................................................................................... 59 RESIGNATION ............................................................................................................................................. 59

JOB ABANDONMENT ................................................................................................................................. 59

PERFORMANCE-BASED AND MISCONDUCT-RELATED TERMINATION ....................................... 59

MEDICAL SEPARATION ............................................................................................................................ 60

RETIREMENT ............................................................................................................................................... 60

REDUCTIONS-IN-FORCE ........................................................................................................................... 60

TERMINATION PROCEDURES.................................................................................................................. 60

Employee Handbook - Page 1 March 1, 2017

TERMS & CONDITIONS OF EMPLOYMENT

This policy manual is a collection of the Human Resources policies and procedures of the company and should be used by employees as a guide during their employment. All employees are provided a copy of this manual so that they will understand their responsibilities as employees and the company’s obligations to them as the employer. This includes legal obligations, work rules, policies, procedures and discretionary benefits offered to employees for being part of the team. Each employee is expected to read and become familiar with the company’s policies. Most issues will be addressed by the policies within this manual. Any situations encountered that are not addressed in this manual should be referred to Human Resources. Each employee is required to sign the Acknowledgment of Understanding form and return it to Human Resources by the end of the third day of employment or within three days of receipt. The signed form will be retained in each employee’s personnel file. In the event any contradiction arises between the policies and other information contained in this manual and specific federal, state, or local laws or requirements, the latter will govern in all cases. This manual and the policies presented in it replace any prior editions or revisions of this manual and policies, which are hereby retracted, withdrawn, and canceled. Throughout this manual, any reference to “company” refers to Higginbotham Insurance Agency, Inc. AT-WILL EMPLOYMENT STATUS Employment with the company is on an at-will basis. This means that each employee is free to terminate the employment relationship at any time, with or without cause or advance notice. Likewise, the company is free to terminate the employment relationship, with or without cause or advance notice. The company has no employment contract, assurances, or guarantee of continued employment by the employee. Likewise, employees have no employment contract, assurances, or guarantee of continued employment with the company. No verbal communication or written document will provide such a contract, assurance, or guarantee unless specified in writing and signed by a company official who is authorized to enter into such an agreement.


MODIFICATION OF TERMS AND CONDITIONS The compensation, hours of employment, work location, and all other terms and conditions of employment for all employees are subject to modification by the company at management’s discretion. Statements or representations made by company representatives concerning the terms and conditions of an individual’s employment will not constitute an employment agreement or to be binding on the company unless reduced to writing and signed by the executive committee. In addition, the company reserves the right to promote, transfer, or reassign any employee or change any employee’s job duties if necessary to fulfill the business needs and requirements of the company. MANUAL IS NOT A CONTRACT The policies and procedures presented within this manual are for information and illustrative purposes and are not a contract of employment, guarantee of continued employment for any specific period of time, or a contract of any terms or conditions of employment. The work rules contained in the policies and procedures are for illustrative purposes and are not considered to be all inclusive. The company reserves the right to unilaterally amend or withdraw any policy, procedure, or benefit at any time with or without notice, for any reason it deems appropriate. Amendments or modifications are effective upon announcement. In the event that any contradiction arises between the policies and information contained in this manual and specific federal, state, or local laws or requirements, the latter will govern in all cases. Nothing in this manual or any company policy is intended to interfere with employees’ rights to discuss their terms and conditions of employment including, but not limited to compensation, benefits, work hours and working conditions, etc. MISREPESENTATIONS Any misrepresentation made or falsification of information provided by an individual when completing the employment application or at any time during the employment process and/or during his/her employment with the company will be considered grounds for dismissal without advance notice. ENFORCEMENT AND INTERPRETATION OF POLICIES Violation of any policies and procedures, or reasonable suspicion of any such violations, may result in disciplinary action, up to and including termination of employment. Additionally, acts that violate policies may also violate civil or criminal laws and may result in possible prosecution and/or assessment of civil and/or criminal penalties. If company management


decides to make an exception to a policy or practice in a certain instance, this does not restrict management’s right to adhere to the policy or practice in the future. No provision of any policy contained within this document will be interpreted to interfere with or chill employees’ rights to engage in concerted activity for their mutual aid and protection. REPORTING OF POLICY VIOLATIONS All employees are expected to immediately report any observed or known violations of any policy or law, including incidents of discrimination or harassment. Reports should immediately be made to the employee’s manager, Human Resources, or any other member of management. Complaints of policy violations will be promptly and carefully investigated, including interviews with all relevant persons. Investigators will conduct an objective investigation that strikes a balance between the need to conduct a thorough investigation and an employee’s desire for privacy; no employee can be guaranteed complete confidentiality and/or anonymity during an investigation. Employees who utilize this procedure in good faith are assured that they will be free from any and all reprisal or retaliation from reporting such violations or cooperating in an investigation. The company will not tolerate complaints that are abusive or made in bad faith. Each employee is expected to fully cooperate in any investigation involving issues relating to the company’s policies, procedures, property, or any other aspect of the company’s business affairs.


EMPLOYMENT

EQUAL EMPLOYMENT OPPORTUNITY (EEO) The company is an equal opportunity employer that maintains a policy of nondiscrimination with respect to all employees and applicants for employment. All employment decisions will be made without regard to race, color, sex (including pregnancy, gender identity and sexual orientation), religion, national origin, age (40 or older), disability, genetic information, veteran status, or any other status protected by applicable federal, state, or local laws. Employment decisions are based solely on the individual’s qualifications, merit and performance, subject to the business requirements of the company. Requests for accommodations will be reviewed for qualified individuals. Reasonable accommodations will be made in accordance with applicable law. In addition to compliance with federal EEO statutes, the company complies with applicable state and local laws This policy applies to all terms and conditions of employment, including but not limited to the following:

Recruitment, hiring, placement, transfer, promotion, and demotion Training, development, and educational assistance programs Compensation and benefits Social and recreational programs Discipline Termination of employment

The company also maintains a policy of prohibiting discrimination and retaliation for those who are a past or present member of the uniformed service, have applied for membership in the uniformed service; or are obligated to serve in the uniformed service. This policy applies to initial employment, reemployment, retention in employment, promotion, and any benefit of employment. Each employee’s cooperation and support are expected in order to maintain a working environment free from discrimination. Any employee who feels that he/she has been subjected to any type of prohibited discrimination, including retaliation, is to immediately report the incident verbally or in writing to his/her manager, Human Resources, or any other member of management. To enable the company to conduct its investigation, a complaint should include the specific nature of the incident and the date(s) and place(s) such alleged discrimination took place, as well as the name(s) of any individual(s) known to be involved. If the company receives a report of prohibited discrimination, it is the company’s practice to investigate.


DIVERSITY Our company is committed to acknowledging and valuing employee differences and to creating an environment in which every individual's unique strengths and abilities are developed and valued. All employees share in the responsibility for creating this environment, and are expected to demonstrate mutual respect and acceptance in the work place. We believe that utilizing our employees' uniqueness enhances communication, problem-solving and decision-making skills, thereby improving our company’s productivity and performance. We also believe that if our employees mirror the diverse make-up of our communities and our customers, we will be able to better understand, and more effectively respond to, market changes. We strive for excellence in our ability to create an inclusive, respectful, and equitable environment for our employees through leadership, policies, and practices. DISABILITY ACCOMMODATIONS The company will consider all requests for disability accommodations. When an employee has a need for an accommodation, the employee must let the Human Resources Representative know that an adjustment or a change at work is needed for a reason related to a medical condition. A request for reasonable accommodation is the first step in an informal, interactive process between the employee and the company. The company will make an attempt to accommodate the employee’s need for workplace changes with the company’s need to maintain an efficient, productive workplace. Before addressing the merits of the accommodation request, the company will determine if the employee’s medical condition meets the definition of a disability, a prerequisite for the employee to be entitled to a reasonable accommodation. A covered disability includes impairments that substantially limit one or more major life activities. Major life activities, for example, can include caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, sitting, standing, lifting, reaching, and working. The company may require medical or other documentation showing that the employee has a covered disability and stating any functional limitations. The documentation must be sufficient to substantiate that the employee has a covered disability and needs the reasonable accommodation requested. Reasonable accommodations will be made for an employee’s disability, unless such an accommodation results in an undue hardship for the company or creates an unsafe working condition. An undue hardship will be based upon an individualized assessment of current circumstances. RELIGIOUS ACCOMMODATIONS The company will consider all requests for religious accommodations. Such requests may include time off for attendance at religious services, an absence for observance of a religious holiday, or an employee’s attire. The company recognizes that some employees may desire to make religious expression in the workplace while other employees may desire a workplace that is free of religious expression. The company will make an attempt to balance employees’ rights regarding religious expression with the company’s need to maintain an efficient, productive


workplace. Reasonable accommodations will be made for an employee’s religious beliefs, unless such an accommodation results in an undue hardship for the company or creates an unsafe working condition. HIRING All candidates for employment must complete and sign an employment application, apply for a vacant position, and meet the minimum education and/or experience requirements in order to be considered an applicant for a position. The company reserves the right to require pre-employment testing of applicants for employment, and drug screening and/or skills testing may be conducted on a pre-employment basis. Satisfactory employment and/or personal references on applicants being considered for or hired for employment with the company are necessary and will be obtained by Human Resources prior to extension of an offer of employment. CRIMINAL CONVICTIONS/BACKGROUND INVESTIGATIONS The company reserves the right to conduct credit investigations on applicants for and employees in certain cash handling positions and other fiduciary positions as deemed appropriate.

The company also retains the express right to conduct background investigations on prospective and current employees. Background investigations may include review of criminal conviction records. Conviction of a crime is not an absolute bar to employment and will not automatically eliminate an individual from consideration for or continuation of employment. All relevant circumstances, such as how long ago the conviction occurred and the crime involved, will be considered in relation to specific job requirements. Conviction of a crime that is related to the job the individual is expected to perform may be cause for denial of employment. Arrest records alone will generally not be considered in determining an individual’s eligibility for employment, although the underlying behavior may be considered. The company will comply with the provisions of the Fair Credit Reporting Act and all applicable amendments when conducting any type of background investigation (e.g., criminal, credit, motor vehicle record, etc.). Particularly, the Human Resources Representative will ensure the correct disclosure of rights has been made; authorization has been received before a background investigation is conducted, appropriate adverse action notices have been provided in instances in which an adverse action is taken due to the results of a background investigation, and the safeguarding of personally identifiable financial information has been maintained. Also, the company will comply with laws governing the proper disposal of any documents (paper, electronic, or other format) that contain consumer information derived from a credit report. Reasonable measures will be taken to protect against unauthorized access to or use of sensitive consumer-related information. The company reserves the right not to employ or retain in employment anyone who has been convicted of any felony or misdemeanor offense that relates to the duties and responsibilities of


the position. You must report any conviction occurring during the course of your employment to the Human Resources Representative immediately. ORIENTATION All employees must complete required paperwork, including an Employment Eligibility Verification Form (I-9), W-4 Form, benefits enrollment forms, and other related information. Human Resources will obtain these documents at the time of hire. Documentation for the I-9 establishing employment eligibility and identity must be submitted to the Payroll Coordinator within three working days of the employee’s date of hire. The new employee’s manager is responsible for providing him/her with a tour of the offices and a review of the organizational structure. The manager will also provide an overview of the Policies and Procedures Manual and his/her job description. PERSONNEL FILES Information relating to an individual’s employment with the company is contained in a personnel file and is the confidential property of the company. No information will be placed in a personnel file unless there is a clear business reason to do so. Due to the confidential nature of personnel files, and the company’s desire to protect an employee’s personal information (social security number, medical information, etc.), Human Resources is responsible for controlling all access to them. Personnel files are not to be removed from the premises. The personnel file will be used for retention of job-related information and records, including position and salary history, employee status change information, performance evaluations, disciplinary actions and documentation of experience, education, training, and/or skills. A separate file section will be established on each employee in which documents containing more sensitive information are to be placed. Such information may include complete copies of workers’ compensation forms, statements from health care providers, proof of age certificates, including I-9 forms, W-4 forms, any document containing personal identification (e.g. photographs, race, sex, birthdate, marital status, etc.), and/or any employee information protected under applicable employment discrimination laws should not be retained in the personnel file. Such items are to be retained in the separate file with access controlled and limited only to Human Resources. Such information cannot be used as a basis for any decisions in the employment process, including, but not limited to, hiring, placement, transfer, promotion, demotion, training, compensation, benefits, discipline, and/or termination. Employees may review the personnel file containing their job-related information in the presence of Human Resources and/or the employee’s manager upon appointment during regular business hours. If an employee disagrees with any information in the personnel file, he/she can submit written comments that may be attached to the information. Under no circumstances may an employee alter or remove any document in the file. Former employees and other individuals


who are not employed by the company will not be permitted access to their personnel file except in particular instances such as during a review by a government agency. Additionally, requests by former employees for copies of documents in the personnel files generally will not be honored. Managers may have access to review the personnel files only of those employees reporting directly to them, unless an employee has applied for transfer to the manager’s area of responsibility and a review of the file is necessary to determine past performance and qualifications for the position. Managers will not generally have access to the separate files containing protected employee information. Each employee is responsible for informing Human Resources of any changes to his/her personal status that may alter payroll or benefit status. Such information may include, but is not limited to: Name Change Marital Status W-4 Deductions Telephone Number Gain or Loss of Dependents Emergency Contact Address Beneficiaries In addition, an employee should notify management of any job-related education, certification, or other training accomplishments achieved during his/her employment. CAREER ADVANCEMENT OPPORTUNITIES Company management will attempt to promote or transfer employees to fill vacant positions. Employees are eligible for consideration after 1 year of employment. Consideration will be given to such factors as the employee’s performance and attendance, ability, conduct, training, education, and experience as well as the company’s ability to replace the employee in their current position, and whether the transfer or promotion is in the company’s best interests. A promotion involves a documentable, quantifiable increase in responsibilities, accountabilities, and job content. Employees must meet the same criteria as external candidates, and they will be given consideration for transfer or promotion prior to the consideration of external applicants. An employee’s experience and qualifications will be reviewed in order to determine whether he/she meets the requirements of the position. If it is determined that the employee meets the qualifications of the position for which he/she is being considered, an interview will be scheduled with the hiring manager. EMPLOYMENT OF RELATIVES The company does not permit the employment of relatives of officers in certain positions. Further, relatives of employees, whether officer or non-officer, will not be employed in positions where:

actual or perceived conflicts of interest would be created a direct reporting relationship would exist management peer relationships would exist


relatives would work in the same department one employee would occupy a position which would have influence over the other

employee’s employment and/or salary administration one employee’s position would perform internal control functions affecting the

other employee’s position one employee would have access to the personnel records of the other employee.

On occasions when the relationship occurs after the fact of employment, Human Resources will review the situation. If actual or perceived conflicts of interest exist, such as direct reporting or management peer relationships, one of the employees may be requested to transfer to another position, if a position is available and if the placement is in the best interest of the company. Otherwise, one of the employees may be terminated. REHIRING FORMER EMPLOYEES Applications received from former employees will be processed according to the same procedures and given consideration as afforded all external applicants for positions. The appropriate manager will review the former employee’s performance records and the circumstances surrounding termination of previous employment with the company. The company will generally not consider for rehire any employee who has been discharged by the company for performance reasons, an act of misconduct, or who left the company without sufficient notice (two weeks) or good cause. Employees who are rehired within five years of their previous termination for the company will receive previous service credit for purposes of vacation accrual or for the granting of Paid Time Off (PTO). EMPLOYEE REFERRAL PROGRAM The company is always looking for good people. Research and company experience has shown that new hires that come into a company through employee referrals are excellent contributors. They also stay with the company longer and are a more cost-effective hire. If an employee refers a qualified candidate that is hired, the referring employee may be eligible for a referral bonus. Candidates who meet the qualifications should be referred to the Human Resources department using the Candidate Referral Form (available from Human Resources). If the referred candidate is hired the referring employee will be awarded 20% of the bonus 30 days of their date of hire, and the balance when the new hired employee has been employed with the company for 90 days.

Employee Referral Program Rules Referral Eligibility: All Company employees, except Production Staff, Human Resources

personnel, and management with hiring authority over the referred candidates are eligible to refer candidates.


The referral date cannot be earlier than the date the job requisition is posted. The hiring of a referred employee must occur within 180 days (six months) of the initial referral date.

The referral must represent the candidate’s first contact with our company. Temporary, summer, contract and former employees of our company are not eligible for referral awards.

To be eligible for an award, the referrals must first be submitted to Human Resources and must include a Candidate Referral Form and a resume.

The first employee to refer a candidate will be the only referring employee eligible for payment.

Only candidates who meet the essential qualifications for the position will be considered. All candidates will be evaluated for employment consistent with our company policies

and procedures. All information regarding the hiring decision will remain strictly confidential. The referring employee must still be employed by our company during the hired

candidate’s first 90 days of employment in order to receive payment. Any disputes or interpretations of the program will be handled through the Human

Resources Department. EMPLOYMENT REFERENCES The company provides appropriate information regarding current and former employees when asked to provide employment references. As such, all mail and telephone inquiries concerning current or former employees are confidential and are to be directed to Human Resources. Information released to inquiring parties will include only verification of dates of employment and positions held, unless the company is legally required by court order or subpoena to reveal additional information. Verifications of employment in response to lending or credit agencies will provide only factual, historical employment, and/or salary information and will not indicate that the individual has a guarantee or assurance of continued employment. Any current or former employee desiring the disclosure of additional information contained in the personnel file must provide an authorization for release of the information to Human Resources.


COMPENSATION

WAGE AND HOUR/EMPLOYMENT CLASSIFICATIONS The Fair Labor Standards Act (FLSA) contains regulations regarding the minimum wage, eligibility for overtime payment, and record keeping requirements. Positions are classified as exempt or nonexempt from the minimum wage, overtime, and recordkeeping provisions of FLSA based on factors such as the duties and responsibilities of the job. Exempt and nonexempt classifications are defined as:

Exempt – There are multiple exemptions, the most common are salaried employees engaged in a bona fide executive, administrative, professional, computer, or outside sales capacity. These employees are exempt from the minimum wage, overtime, and recordkeeping provisions of FLSA. The exempt status of a position is determined by analyzing the job’s entire set of responsibilities against exemption tests set by the Department of Labor’s Wage and Hour Division.

Nonexempt–Any salaried or hourly employee whose compensation (with respect to minimum wage and overtime payment) and hours of work must be administered and maintained in accordance with FLSA. These employees must be paid at least the current minimum wage, have records maintained of their hours worked, and receive overtime pay for any hours worked over 40 hours in a workweek.

Employees are also classified into one of the following employment categories:

Full-time – Any employee who is regularly scheduled to work 37.5 – 40 hours per week.

Part-time – Any employee who is regularly scheduled to work less than the regular 37.5 – 40 hours per week.

Temporary – Any employee who is scheduled to complete a short-term job assignment that is not on-going in nature. Temporary employees may work any number of hours in a week.

JOB DESCRIPTIONS Job descriptions are used by the company to outline the duties and responsibilities of each position. A job description describes the job itself and not the individual who might fill the job. It is the responsibility of each employee to work with his/her manager in keeping job descriptions up-to-date.


PERFORMANCE REVIEWS The purpose of the performance review is to evaluate the employee’s job performance, assess the employee’s job-related strengths and weaknesses, and support changes in job status and/or salary level. The completion of written performance reviews is the responsibility of the employee’s manager, and copies of completed reviews are to be retained in the personnel file following review with the employee. Feedback and discussions with employees regarding their performance may be conducted on a regular and on-going basis throughout the year. SALARY ADMINISTRATION Salary increases are not guaranteed or automatic. They are granted on the basis of either merit or promotion. The granting of salary increases of any type will be made at management’s discretion and will be subject to the company’s ability to fund the increase based upon its overall profitability. Although any salary adjustment may be made based upon an employee’s performance, a review of an employee’s performance is not a guarantee of a salary increase.

Merit Increases – Employees are generally reviewed annually for a merit increase based upon the company’s merit increase guidelines as determined by management. The determination of all increases is based upon the individual’s overall performance, attendance, current salary and position within the salary range.

Promotion Increases – An increase in responsibility and authority may result in a salary increase at the time of the promotion. The employee’s manager will determine whether a job change represents a promotion.

Salary Decreases – A decrease in salary may occur when an employee either voluntarily or involuntarily assumes a position of lesser responsibility. The employee’s current salary and work experience will be considered when determining the employee’s new salary. All salary decreases that result from demotions must be approved by the employee’s manager and Human Resources.

OVERTIME The company will attempt to avoid situations which may cause overtime, but certain individual jobs and circumstances sometimes require overtime work. Employees classified as nonexempt will be paid at the rate of time and one-half for time actually worked that exceeds 40 hours during a scheduled workweek. Hours cannot be averaged over a two-week or payroll period. The company’s defined workweek begins at 12:01 a.m. on Monday morning and ends Sunday night at 12:00 midnight. Nonexempt employees are expected to work overtime only as a result of an actual necessity to complete work, and it should be done with the prior knowledge and approval of their manager before working overtime.


A company-recognized holiday is considered time worked for overtime purposes. Any hours over 32, which a nonexempt employee works in a week in which a holiday occurs, will be compensated at the rate of time and one-half of his/her regular rates of pay. Hours other than holidays (PTO, vacation, bereavement leave, jury duty, etc.) for which an employee receives pay but which are not actually worked are not considered time worked for overtime purposes. An employee must physically work over 40 hours in the week when PTO, vacation, or other paid absences occur in order to receive overtime pay. WAGE ASSIGNMENTS AND GARNISHMENTS The company will comply with all applicable laws and regulations relating to wage assignments and garnishments. No company representative should make any threat of discharge for garnishments or wage assignments connected with any debt. When a wage assignment or garnishment of an employee’s wages or wage deduction order is served on the company, it is to be referred immediately to Human Resources. PAYROLL Employees are paid on semi-monthly schedule on the 15th and the last day of each month. Producers, those employees who are paid on a commission basis, are paid on a monthly basis on the 15th of the month. If either of these days falls on a weekend or holiday, employees will be paid on the preceding regularly scheduled workday. Pay will not be advanced or paid prior to the regularly scheduled payday. Payroll checks will not be released to anyone other than the employee, except upon receipt of the employee’s written authorization specifying the individual to whom the check is to be released. If an employee is permitted time off to attend training, conferences, and/or seminars at the company’s direction, the employee will be compensated at his/her regular rate of pay for such time off. Calculation of pay for paid absences (e.g., holidays, PTO/vacation, leaves of absence, etc.) will be determined by the employee’s regular rate of pay and on the hours that he/she are regularly scheduled to work on that day. Certain deductions, by law, must be withheld from an employee’s pay, including federal income, social security, and Medicare taxes. Other deductions (insurance premiums, charitable contributions, payment for work-related items, etc.) must be approved by the company and authorized in writing by the employee. EXEMPT SALARY BASIS Exempt employees receive full salary for any workweek in which work is performed, regardless of the number of days or hours worked, subject to certain exceptions. If the employee is ready, willing, and able to work, deductions may not be made for time when work is not available. If an exempt employee believes that an improper deduction from salary has been made in violation of company policy, such occurrence should be reported immediately to the Human Resources Representative so that proper reimbursement can be made if appropriate.


BENEFITS BENEFITS ELIGIBILITY AND CREDITED SERVICE It is the company’s policy to provide a comprehensive and competitive benefits program for all eligible employees. Eligibility for participation in the company’s benefit programs is detailed in the following benefits summaries, as well as in the summary plan descriptions. Generally, full-time employees regularly scheduled to work 30 - 40 hours or more per week are eligible for all standard company benefits. Part-time employees are eligible for only certain standard benefits, and temporary employees are not eligible for company benefits. In the event that any contradiction arises between the information contained in this manual and the official plan documentation and/or master insurance contracts, the latter will govern in all cases. The total amount of service credited to the employee is important in determining the levels at which the employee participates in various benefit programs. The credited service date begins with the employee’s first day of employment and consists of the total time he/she has actually worked. Employees do not accrue credited service during an unpaid leave of absence, and an employee’s original credited service date may be adjusted for any unpaid time spent on a leave of absence, except where prohibited by law. Adjusted credited service dates may affect seniority status and benefits eligibility, including eligibility for PTO and vacation. Complete information regarding the company’s benefit plans can be obtained from the Human Resources Department. The company is not responsible or liable to any person for the acts or omissions of any insurance company or for the payment or non-payment by any such company of amounts due or claimed to be due under any insurance policy obtained by the company for the benefit of its employees. HOLIDAYS Full-time employees are eligible to receive holiday pay. Employees on unpaid status (e.g., military leave, leave of absence, etc.) are not eligible for holiday pay. The company generally observes the following holidays annually:

New Year’s Day .............................................January 1st Memorial Day ................................................Last Monday in May Independence Day ..........................................July 4th Labor Day ......................................................First Monday in September Thanksgiving Day ..........................................Fourth Thursday in November Day after Thanksgiving..................................Friday after Thanksgiving Christmas Day ................................................December 25th 2 Flexible Holidays ........................................Decided by Members of the Board


At management’s discretion, any or all of these days may be designated as paid or unpaid holidays or may be determined to be normal business days. If a designated holiday falls on a weekend, management will determine whether another day will be designed as the holiday.

A company-recognized holiday is considered time worked for the purposes of calculation of overtime pay. An employee must actually work over 32 hours in the week in which a paid holiday occurs in order to receive overtime pay. In order to receive holiday pay, employees are expected to work regularly scheduled hours on the day before and the day after a holiday, unless the absence has been authorized in advance by the manager. An employee who calls in sick on either of the days surrounding the holiday may be required, at the discretion of the manager, to provide a health care provider’s statement in order to be paid for the holiday. TIME OFF FOR RELIGIOUS OBSERVANCES When an employee’s religion requires attendance at religious services during a scheduled workday or requires the employee to be absent for observance of a religious holiday and the employee desires the time off, the employee should request time off in writing and submit it to his/her manager or Human Resources at least two weeks in advance. If approved, the employee may use available PTO, vacation, or take the day as unpaid. The company will allow the employee time off for religious observances and practices unless such accommodation is not reasonable or practical and without undue hardship on company operations. PAID TIME OFF (PTO) Paid Time Off (PTO) provides full-time employees with paid time away from work. It may be used for paid sick leave, or other personal reasons such as personal business, religious observances, personal emergencies, or military leave. Other times off for which an employee may receive compensation are separate from PTO. Part-time and temporary employees are not eligible for PTO. PTO is granted on the basis of length of service, according to the following schedule:

Completed Service Maximum Annual Paid Time Off After 90 days 3 days

1 – 3 years 5 days 4 - 6 years 7 days

7 or more years 10 days

Use of PTO is subject to the following conditions and procedures: A maximum of 5 PTO days may be carried over at the end of each anniversary. A maximum

of 5 PTO days may be banked at anytime.


PTO benefits are paid at the rate of an employee’s regular base pay. Overtime, and commissions do not apply to PTO benefits.

PTO may be utilized in half-day increments, unless a shorter increment has been approved in

advance by Human Resources for a family or medical leave of absence. Otherwise, up to four hours in a day is considered a half-day, and leave over four hours in a day is considered to be one full day.

Absences in excess of available PTO will be without pay. However, on an exception basis

and at the discretion of company management, up to 10 additional PTO days may be granted for absences for major medical conditions. In such instances, however, employees must provide as much notice as possible prior to the need for the additional PTO days. The company reserves the right to require a physician’s certification verifying the need for the additional PTO leave days.

In the event of a foreseeable absence, the employee must provide two weeks’ notice to

his/her manager or Human Resources. Although efforts will be made to schedule PTO according to personal preference, requested time off may be denied in the event that company operational needs require otherwise. PTO will be scheduled in such a manner as to provide unimpaired service by the company and adequate coverage of all positions.

If an employee is using PTO for sick leave, he/she must contact the appropriate manager as

soon as he/she is aware of the need to be absent, and no later than the time he/she is scheduled to begin work.

An employee must take available PTO in order to stay home while sick or while caring for a sick family member or taking care of other personal business. The employee may not decide to decline the use of available PTO and instead, work from home while sick, caring for a sick family member or other personal situations.

The company requests certification of an employee’s need for PTO due to illness at any time

during the absence. Approval for PTO benefits in the event of illness resulting in absences of three or more days will be granted only when substantiated by a health care provider’s statement. The company reserves the right to require a health care provider’s statement/release for return to work after three or more days of illness. The company also reserves the right to request a second opinion from a health care provider of the company’s choice to verify the illness.

If an employee has an extended absence due to illness, he/she will be required to report to the

appropriate manager at least weekly to keep the company informed regarding his/her condition and estimated time of return to work.

No previous service credit will be recognized for purposes of granting PTO to rehired

employees. Rehired individuals will be granted PTO in the same manner as employees hired with no previous company service.


Unused PTO is not payable at termination unless the reason for the termination is a medical separation. VACATION Vacation provides full-time and part-time employees who are regularly scheduled to work 30 hours per week with paid time away from work. Vacation is accrued based on length of service, according to the following schedule:

Years of Completed Service Monthly Accrual Rate Maximum Vacation Days 1 – 9 1.00 days 10 days

10 years 1.50 days 15 days 15 years 2.00 days 20 days

The following vacation procedures apply to all employees eligible to receive vacation benefits: Full-time employees accrue vacation from January through October, according to the accrual

schedule. No vacation benefits are accrued during the months of November and December. Employees who begin work in November and December are not eligible to accrue vacation benefits until the following calendar year.

New full-time employees begin accruing vacation in their first full month of employment.

However, employees must be employed for 90 days before any vacation may be taken. Part-time employees accrue vacation after one year of employment. The accrual is on a pro

rata basis, based upon the number of hours they are regularly scheduled to work beginning in January and ending in October.

Vacation accruals are accrued at the end of each month. Employees must be employed from

the first of the month continuously through the end of the month in order to accrue vacation benefits for the month.

Employees who are on unpaid status are not eligible to accrue vacation. Vacation time must be scheduled with the appropriate manager, or the employee’s

Supervisor, at least two weeks prior to taking the vacation. All vacation scheduling is subject to supervisory approval. Although efforts will be made to schedule vacation according to personal preference, requested time off may be denied in the event that company operational needs require otherwise. Vacation will be scheduled in such a manner as to provide unimpaired service by the company and adequate coverage of all positions. Priority in vacation scheduling will be based upon seniority.

Vacation may be utilized in half-day increments, and approved in advance by the employee’s

Manager. Up to four hours in a day is considered a half-day, and leave over four hours in a day is considered to be one full day.


Vacation benefits may be carried over at the end of each calendar year. However, any vacation carried over must be used by March 31st of the next year. Vacation cannot be borrowed from a future year.

When an observed holiday occurs during a scheduled vacation, an additional day of vacation

will be granted, and be scheduled at the discretion of the employee’s manager. Illness or other reasons considered as excused absences that fall within a scheduled vacation

will be counted as days of vacation. Payment for any accrued vacation will be included in the final pay of an employee who

resigns and provides adequate (two weeks) notice prior to their resignation, or who is released for unacceptable performance, or due to medical reasons, or is separated from the company as a result of reduction in force.

Employees who are terminated for misconduct, or who resign without providing the

company with adequate (two weeks) notice, will not receive payment for any accrued vacation.

An employee who retires from the company will be paid for any accrued vacation. In the event of the death of an employee, any accrued vacation will be paid to his/her estate

or to a designated beneficiary. Vacation may be taken at any time during the calendar year, whether or not the maximum

annual accrual has yet been reached. If the employee terminates before he/she earns the full amount of vacation already taken, he/she will be required to reimburse the company through authorization of a deduction from his/her final pay and/or direct payment of amounts owed to the company.

Compensation will not be substituted for unused or forfeited vacation. Vacation my not be used to extend employment for resigning employees. The employee’s date of termination will be the last day he/she actually works. Use of vacation will not be granted during an employee’s notice period when his/her resignation has been tendered.

JURY DUTY AND COURT APPEARANCES Full-time nonexempt employees may receive up to 10 paid days off per year for jury duty or service as a witness, to be paid at their regular base rate of pay. Exempt employees will receive their regular base pay for time served on jury duty or service as a witness. Part-time and temporary employees will also be paid for days for court service. Employees may retain any fees received from the court for service on a jury. Employees must provide a copy of the court order, subpoena, or jury summons to their manager for approval for time off for court service as soon after receipt as possible. A postponement of


jury duty may be requested by the company if an employee’s services are vitally needed at the time he/she is called for jury service. Employees must be working to be eligible for paid time off for court service. Pay will not be granted to an employee who is on unpaid status (e.g., military leave, leave of absence, etc.) Employees are expected to return to work if excused by the court any time prior to two hours before the scheduled end of the workday. At the completion of an employee’s court service, he/she must present his/her manager with an official notice from the court, verifying the dates of court service. BEREAVEMENT PAY Upon the death of a member of an employee’s immediate family or of another relative, if such relative lived in the same household as the employee, the employee will be allowed up to five days absence with pay. Relatives considered as members of the employee’s immediate family, (whether or not they lived in the same household as the employee) are the following:

Spouse Child Parent Aunt Sibling Stepchild Parent-in-law Uncle Stepbrother Grandchild Stepparent Stepsister Grandparent

Up to one day, with pay, to attend the funeral of other relatives or friends may be granted at the discretion of the Department Manager. VOTING The company encourages all employees to fulfill their civic responsibility by voting. All employees, including full-time, part-time and temporary employees, are eligible for time off to vote if their work schedule does not allow for two consecutive hours in which to vote during polling hours. Employees must receive prior approval from their manager for time off to vote if the work schedule does not allow at least two hours. Time off to vote will be scheduled in such a manner as to provide unimpaired service by the company and adequate coverage of all positions. FAMILY AND MEDICAL LEAVE OF ABSENCE Eligibility – Employees who work at a company location with 50 employees within 75 miles and have completed at least 12 months of service and 1,250 hours of service in the preceding 12 months with the company, will be eligible for up to 12 weeks of leave for certain family care and medical reasons in a consecutive 12-month period. Generally, employment periods prior to a break in service of seven years or more will not be counted in determining whether the employee has completed at least 12 months of service. The 12-month period will be measured forward from the first date upon which you take leave that qualifies as family or medical leave under the provisions of this policy and will include both paid and unpaid leaves. The next 12-month


period would begin the first time FMLA leave is taken after completion of any previous 12-month period. Use of Family and Medical Leave – The employee may be entitled for up to 12 weeks of family and medical leave for the following reasons: For the birth of a son or daughter of an employee and to care for the newborn. For placement with the employee of a son or daughter for adoption or foster child.

Leave for such purposes must be taken in one consecutive period and must be completed within twelve months following the birth or the placement. However, this leave does not have to be taken immediately following the birth or placement of the child.

To care for the employee’s spouse, son, daughter, or parent (not in-laws) with a serious health condition. Employees who are not eligible for family and medical leave will not be allowed an unpaid personal leave of absence for the illness of a parent.

For your own serious health condition that prevents you from performing your job duties and responsibilities.

For a qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member defined as: 1. National Guard or Reserves or retired member of the Regular Armed Forces or

Reserves on federal active duty in a foreign country or international waters or is called to federal active duty in a foreign country, provided that such duty is in support of a contingent operation; or

2. Regular Armed Forces deployed to a foreign country or international waters regardless of the nature of the service performed in that foreign country or international waters and regardless of whether it is in support of a contingent operation.

Absences due to a work-related injury or illness, whether paid or unpaid, which qualify as a serious health condition will be considered absences under this policy, and time off will be deducted from the maximum annual 12-week leave entitlement period. Use of Military Caregiver Leave – Employees may be entitled for up to 26 weeks of leave in a “single 12-month period” to care for the service member if the employee is the spouse, son, daughter, parent, or next of kin (nearest blood relative) of a covered service member who has a serious illness or injury incurred in the line of duty on active duty for which he or she is undergoing medical treatment, recuperation, or therapy, is in outpatient status, or is on the temporary disability retired list. Coverage also includes a service member’s serious illness or injury that existed before the beginning of the service member’s active duty which was aggravated by service in the line of duty on active duty. A covered service member includes a member of the Armed Forces, including the National Guard or Reserves or a member of the Armed Forces, the National Guard or Reserves who is on the temporary disability retired list. Covered service member also includes a veteran discharged or released under conditions other than dishonorable, who is undergoing medical treatment, recuperation or therapy for a serious injury or illness and who was a member of the Armed Forces within the five years prior to the time the employee’s military caregiver leave begins.


An eligible employee will be entitled to a combined total of 26 weeks of all types of FMLA leave. The “single 12-month period” referenced above begins on the first day the eligible employee takes FMLA leave to care for a covered service member and ends 12 months after that date, regardless of the method used by the company to determine the employee’s 12 workweeks of leave entitlement for other FMLA qualifying reasons. If a husband and wife are both employed by the company, a combined total of 12 weeks is available for the birth of a son or daughter or to care for the child after birth, placement of a child with the employee for adoption or foster care, or to care for the employee’s parent with a serious health condition. A husband and wife employed by the company are limited to a combined total of 26 weeks of leave during the relevant 12-month period if the leave taken is to care for a covered service member and for the birth or placement of a healthy child or care for a parent with a serious health condition. The military caregiver leave does not alter the 12-week limitation that applies to leave taken by a husband and wife employed by the same employer for leave for the birth or placement of a healthy child or to care for a parent with a serious health condition even if the husband and wife combined took fewer than 14 weeks of leave to care for a covered service member.

Intermittent or Reduced Schedule Leave - Leave taken because of the serious health condition of either you or your eligible family member may be taken on an intermittent or reduced work schedule basis if such an arrangement is certified by the health care provider to be medically necessary or you must provide care or psychological comfort to a covered family member with a serious health condition, as certified by the health care provider. Intermittent or reduced schedule leave may also be taken for a qualifying exigency or for military caregiver leave of absence. During any period in which you are on an intermittent or reduced work schedule, the company may, at its discretion, temporarily transfer you to an alternative position with equivalent pay and benefits that better accommodates the recurring leave. Requesting Leave – Employees in need of a leave of absence are required to provide sufficient information to the Human Resources Representative to make the company aware that the employee needs FMLA-qualifying leave or so that the company can reasonably determine whether the FMLA may apply to the leave request. Employees are responsible for following through with all company requirements in order for FMLA qualifying leaves to be approved. Calling in sick is not sufficient to make the company aware that the employee is in need of FMLA leave. In the event of foreseeable leaves, the employee must provide at least 30 days’ advance notice by completing a leave of absence request form. If 30 days is not practicable, the employee must provide notice as soon as practicable such as the same day or the next business day of becoming aware of the need for leave. For foreseeable leave due to a qualifying exigency, notice must be provided as soon as practicable regardless of how far in advance such leave is foreseeable.


In the event of unforeseeable leaves, the employee must give notice as soon as practicable under the facts and circumstances of the particular case. Employees are required to provide sufficient information and answer applicable questions designed to determine whether an absence is potentially FMLA-qualifying. Failure to respond to reasonable company inquiries may result in delay or denial of FMLA leave. When planning medical treatment, the employee must make a reasonable effort to schedule medical leave including intermittent and reduced schedule leave, so as not to unduly disrupt the company’s operations Once the company has acquired knowledge that a leave is being taken for a FMLA reason, within five business days the Human Resources Representative will provide notice to any employee requesting leave as to whether he/she is or is not eligible for family or medical leave and the rights and responsibilities of the employee as provided under FMLA. Additionally, the Human Resources Representative will provide notice of the requirements for certification and the applicable certification form (with job description describing the job’s essential functions). Medical Certification – When leave is taken due to the serious health condition of either the employee or a covered family member, the employee must provide the certification form completed by the health care provider within 15 days of the request. If the certification is incomplete or insufficient, the Human Resources Representative will notify the employee and allow him/her up to seven days to cure the certification deficiency. The Human Resources Representative may seek clarification from the employee’s health care provider regarding the information contained on the certification form with the employee’s written authorization provided to the company and to the employee’s health care provider. The company reserves the right to request a second opinion from a health care provider chosen by the company, at the company’s expense. In the event of a disagreement between the opinions of the employee’s health care provider and the company’s, a third and binding medical opinion may be sought, also at the company’s expense. The company may request that the employee submit recertification from the health care provider, at his/her expense, to support a continuing medical leave every 30 days or at the expiration of the minimum duration of the condition, whichever is later. Such recertification can be requested at any reasonable interval but not less than every 30 days unless: The employee requests an extension of leave; Circumstances described by the previous certification have changed significantly; or Company management receives information that casts doubt on the continuing validity of the

most recent certification. The company, at its sole discretion, may waive this periodic medical recertification requirement.


In the event that appropriate certification or recertification is not provided, the leave of absence will not be granted or continued, and the employee will be subject to the company’s policies regarding unexcused absences. Fitness-for-duty certification will be required in order to verify that an employee is able to return to work. Certification of fitness to return to duty for absences taken on an intermittent or reduced schedule leave may be required once every 30 days if reasonable safety concerns exist regarding the employee’s ability to perform his or her duties. No second or third opinions will apply for fitness-for-duty certifications. Qualifying Exigency Certification - When leave is taken due to a qualifying exigency (e.g., short-notice deployment, military events, financial and legal arrangements, military member’s parental care, etc.) related to active duty or a call to active duty for the employee’s spouse, son, daughter, or parent, the employee should provide a copy of the covered military member’s active duty orders or other documentation issued by the appropriate National Guard or Reserves military branch. The Human Resources Representative may contact the appropriate military unit to request verification that a covered military member is on active duty or call to active duty status. No recertification requirements will apply to qualifying exigency leaves. Military Caregiver Certification - When leave is taken due to a servicemember with a serious illness or injury sustained in the line of duty on active duty who is the employee’s spouse, son, daughter, parent or next of kin, the employee should provide certification completed by an authorized health care provider of the covered servicemember or the travel orders issued to the employee on behalf of the servicemember. No recertification requirements will apply to military caregiver leaves. Designation of Leave - Once the company has acquired enough information to determine whether the leave is being taken for a FMLA-qualifying reason (e.g., after receiving complete and sufficient certification), the Human Resources Representative will provide a designation notice within five business days to the employee stating whether or not FMLA leave has been approved. Additionally, the designation notice will include applicable information regarding amount of leave entitlement, paid/unpaid time off, fitness for duty certification requirements, certification deficiencies, etc. If a FMLA-qualifying reason is determined by the Company to exist, the Human Resources Representative may designate leave as FMLA whether the employee specifically requests FMLA designation or not. Employees cannot request that the Company waive an FMLA leave designation if the leave qualifies as a bona-fide FMLA leave. Notification During the Leave – The employee may be required to contact his/her manager at least every other week in order for the company to remain aware of his/her progress and anticipated longevity of the leave of absence. Failure to contact the manager as required by this policy may result in denial or delay of the leave or restoration of employment. Return from Leave - When the reason for a family or medical leave ends (for example, a serious health condition no longer exists), the employee is no longer eligible for leave under this policy and is expected to return to work promptly.


When leave is taken due to the employee’s own serious health condition, a fitness for duty release from the health care provider will be required prior to the employee’s return to work, certifying that the employee is able to return to work and can perform the essential functions of the job as described in the job description, with or without reasonable accommodation. Employees will not be allowed to return to work until a fitness for duty release has been obtained. The employee is expected to return to work immediately following the health care provider’s release. If the employee fails to return to work on the next workday following the expiration of an approved leave or release by the health care provider, absent extenuating circumstances, the employee will be deemed to have resigned employment. If the employee decides to voluntarily terminate employment, he/she should notify his/her manager as soon as possible. The employment relationship will be terminated, and the employee’s entitlement to reinstatement, continued leave, and health insurance benefits will cease. . Reinstatement – After the leave period has ended, an employee generally will be restored to his/her former position, or to an equivalent position with equivalent employment benefits, pay and other terms and conditions of employment, if he/she returns to work within the 12-week or 26-week entitlement. However, there are limited circumstances under which an employee would not be reinstated (e.g. in the event of a reduction-force.) An employee on FMLA leave has no greater right to reinstatement or to other benefits and condition of employment than if the employee had not been on FMLA leave. Reinstatement to the same or an equivalent position is also contingent upon the employee’s continued ability to perform all essential functions of the job, with or without reasonable accommodation. At the company’s discretion, an employee on a leave of absence may be offered a light-duty position if one is available and the employee’s health care provider certifies the employee’s ability to perform the duties of that position. Light-duty assignments will not count against the employee’s FMLA entitlement. The employee is not obligated to accept a light-duty position. If the employee accepts a light-duty assignment, he/she will continue to have the right to restoration to his/her original or an equivalent job until the reason for the leave ends or at the end of the applicable 12-month FMLA year, whichever occurs first. If the employee does not return to work when the reason for the leave ends or at the end of the 12-week or 26-week entitlement, whichever occurs first, he/she may not be reinstated. Employment will be terminated as of the last day of the authorized leave period. The individual must then follow the normal job application procedures required of external candidates if he/she desires to be re-employed by the company. If an employee fraudulently obtains leave, the employee will not be entitled to benefits under this policy, and employment may be terminated. Additionally, employees who are considered “key employees” under the provisions of the Act may be denied reinstatement if the reinstatement would result in substantial and grievous economic injury to company operations and if the employee was provided the appropriate notice, stating such, at the commencement of his/her leave. A key employee is a salaried FMLA-


eligible employee who is among the highest paid 10% of the company’s entire workforce within 75 miles of the employee’s worksite. Insurance Continuation – During the leave, employees will be permitted to retain their current insurance coverage as specified in the provisions of the company’s policy, with the company paying the portion of the premiums as indicated. During any paid portion of a leave, employees’ portion of premiums will continue to be taken as a regular payroll deduction. During unpaid leave, the employee will be required to submit payments for his/her portion of insurance premiums if he/she desires to maintain coverage. If the employee fails to submit his/her portion of insurance premium payments on the due date, the company will give him/her 15 days written notice prior to the end of the 30-day grace period that the insurance may be canceled at the end of the grace period. If payment is made within the 30-day grace period, the insurance will not be discontinued. The employee will be responsible for repayment of any insurance premium costs borne by the company for continuation of insurance during the leave should the employee fail to return to work at the conclusion of the leave period for reasons other than a serious health condition which qualifies under the leave provisions or circumstances beyond his/her control. The company will not make payments on the employee’s behalf for any voluntary insurance which the employee may have elected, (i.e. supplemental term life, AD&D, dental, vision, catastrophic illness/cancer plan, long-term disability insurance, or short-term disability insurance, long-term care, etc.). The employee must continue to submit all required premiums for such plans during any unpaid portion of his/her leave, or the insurance coverage will be discontinued in accordance with the respective plan provisions. The employee will be reinstated to coverage under the other benefit plans upon his/her return to work. Benefits Eligibility – An employee on unpaid family or medical leave of absence does not accrue seniority or benefits such as vacation or PTO. However, a family or medical leave of absence cannot be counted as a break in service for purposes of vesting or eligibility for participation in a pension or other retirement plan. Family and Medical Leave Pay – Any available PTO, and then all available vacation, must be taken at the commencement of any leave period prior to the employee beginning unpaid leave status. The maximum amount of leave time available will be 12 weeks (for those employees who qualify for protection under FMLA) or 26 weeks (for those employees who qualify for military caregiver leave, including both paid and unpaid leave). An employee who incurs a work-related injury or illness cannot substitute vacation or PTO benefits for workers’ compensation benefits. The employee is required to accept any workers’ compensation benefits provided. MILITARY LEAVE Employees who are members of a uniformed service or who make application for membership in a uniformed service will be given the required time off for the performance of duty, including


active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty and the time necessary to be absent from employment for an examination to determine fitness to perform any of these duties. Uniformed services generally include the Armed Forces, the Army National Guard, and the Air National Guard. Notification Required for Leave – The employee or an officer of the service must provide his/her manager with advance notice, either written or verbal, of the need for the military leave as soon as possible after receipt of the orders, unless notice is precluded by military necessity (as determined by the Secretary of Defense) or is otherwise not within the employee’s control. The employee should give notice and provide a copy of any official papers as soon as possible after receipt of military orders so that necessary scheduling arrangements can be made. Failure to provide adequate notice may result in a denial of reinstatement. Notification Required for Return to Work – An employee who serves in a uniformed service less than 31 days or who is absent from work for pre-induction examinations must report to the company not later than the beginning of the first regularly scheduled work period that starts at least eight hours, after the employee has been safely transported home from the place of service or examination. Those who serve for 31 to 180 days must submit an application for reinstatement to the company within 14 days of completing service. Those who serve more than 180 days must submit an application for reinstatement to the company within 90 days of completing service. If reporting to work submitting an application for reinstatement within that time period is not within the employee’s control, he/she must report as soon as possible. These time limits may be extended for up to two years if an individual is hospitalized for or convalescing from an illness or injury incurred in or aggravated while in the uniformed service. Failure of the employee to report for work, to submit an application for reinstatement within the allotted time, or to advise his/her manager of a delay due to extenuating circumstances will subject to the employee to the company’s policies regarding unauthorized absences. Reinstatement Rights – Individuals will be eligible for reinstatement if they meet the above notification requirements, if the cumulative length of the absence and all previous absences for military service is not longer than five years (there are some exceptions), and if the individual was discharged or released from active duty under honorable circumstances. If an individual’s military service was for more than 30 days, the company may require documentation to establish that the application for reinstatement is timely, that the military service has not exceeded the five-year limit, and that the service ended under honorable circumstances. However, reinstatement will not be denied if the documentation does not exist or is not readily available at the time of the request. The documentation should be provided as soon as it is available. The company will promptly reinstate an eligible individual in a position that he/she would have attained if continuously employed, if the uniformed service was for a period of 90 days or less. If the employee is not qualified for such position after reasonable efforts by the company (including training), he/she will be reinstated in his/her original position. If an employee returns


to work after a period of more than 90 days, the company has the additional option of reinstating the employee in a position of like seniority, pay and status. If the employee still does not qualify after the company has made reasonable efforts to help the employee become qualified, the employee will be reinstated in another position of lesser status and pay but with like seniority. The company may not reinstate an individual if (1) the company’s circumstances have changed so as to make reinstatement impossible or unreasonable; (2) the individual is no longer qualified for the position despite reasonable efforts made by the company to re-qualify the person, and reinstatement would impose an undue hardship on the company; or (3) the employment from which the employee leaves to serve in a uniformed service is for a brief, non-recurrent period, and there is no expectation that the employment will continue indefinitely or for a significant period. If an individual incurs a disability during, or as a result of, military service, and the individual is no longer qualified for the position he/she would have attained if continuously employed or for the original position, even after reasonable efforts to accommodate the disability, the individual will be reinstated promptly in either 1) any position of similar seniority, pay and status for which he/she is qualified or would become qualified with reasonable training efforts by the company, or 2) in a position that approximates a position of similar seniority, pay and status. A reinstated service member may not be discharged except for cause for a period of one year if the service period exceeded 180 days, or six months if the service period was from 30 to 180 days. Compensation – The employee may voluntarily use any PTO or vacation during all or part of the leave period. If a full-time employee chooses not to use PTO or vacation, the company will pay the difference between military pay and the employee’s regular base salary for military leave up to a maximum of 10 days for nonexempt and exempt employees. In order that necessary salary adjustments can be made, the employee must present a legible copy of the military pay voucher as soon as possible following his/her return to work. Paid military leave for nonexempt employees will be limited to ten days per year. Exempt employees will receive their regular salary for any week in which work is performed. In the event an exempt employee does not perform work during the workweek, he/she will receive pay for a maximum of ten days per year. Part-time and temporary employees are not eligible for paid military leave, but may take unpaid time as provided in this policy. Benefits Protection – Upon reinstatement, an employee is entitled to seniority and other benefits determined by seniority that he/she had at the beginning of the uniformed service. In addition, the employee continues to accrue credited service, but does not earn any additional vacation or PTO leave during any unpaid portion of the leave. An employee who is absent because of service in a uniformed service will be deemed as being on a leave of absence and is entitled to all non-seniority based rights and benefits established by the company’s policies. The service member may be required to continue to submit payments for participation in any such benefit programs if such payments are required of other employees who are not on military leave of absence.


Employees performing military service and/or their covered dependents may elect to continue health insurance coverage for up to 24 months. Employees should continue to pay their portion of the health insurance premiums for themselves and/or their dependents. If the continuation of coverage is not elected, health insurance coverage on the same terms in which they originally participated will be restored without any lapse in coverage when the employees are reinstated, without any requirement that they fulfill any qualifying conditions or waiting periods (except for illnesses or injuries deemed by the Department of Veterans Affairs to have been service connected). An absence for military service will not be considered a break in employment service for 401(k) purposes. Nor will an employee who is absent for military service forfeit benefits already accrued or be required to re-qualify for participation in 401(k) plan. Failure to report for work, to submit an application for reinstatement within the allotted time, or to advise the employee’s manager of a delay due to extenuating circumstances will subject the employee to the company’s policies regarding unauthorized absences. MEDICAL INSURANCE All full-time employees working 30 hours or more per week, are eligible to participate in the company’s group medical insurance plan after an appropriate initial waiting period (see Human Resources for details). The company currently pays the majority of the premium for employee coverage. Eligible dependents may be covered and such payments may be made as a payroll deduction with the employee’s authorization. Employees will receive information regarding insurance benefits upon employment with the company. This benefit and the portion of the premium paid by the company are subject to change at the discretion of management. GROUP LIFE/ACCIDENTAL DEATH & DISMEMBERMENT (AD&D)

INSURANCE All full-time employees are provided with two times their annual salary in group life and AD&D insurance up to a maximum of $300,000. The company pays the entire cost of this coverage. An employee’s coverage is effective the first day of the month following 60 days of continuous employment. Complete information regarding this benefit plan is available from the Human Resources Department. LONG TERM DISABILITY INSURANCE Full-time employees are eligible to participate in the long-term disability plan at the date of hire. The company pays the full cost of long-term disability insurance coverage. The basic benefit is 60 percent of the employee’s monthly earnings for a qualified injury or illness following 90 days of absence. Complete information regarding this benefit is available in the summary plan description.


OTHER VOLUNTARY INSURANCE OPTIONS The company provides various other group insurance plans to eligible employees at the employee’s full expense. Such options include dental care, vision care, long-term care, short-term disability, and additional life insurance coverage. Complete information regarding these additional insurance options will be provided upon employment with the company. CONTINUING INSURANCE COVERAGE Employees and covered family members may be permitted to temporarily extend certain insurance coverage at group rates under COBRA in instances where coverage under the plan would otherwise end. Plans for which coverage may be continued include medical, dental, and vision insurance. Employees and their spouses and dependent children covered under the company’s group insurance plan(s) have a right to choose insurance continuation coverage under COBRA for 18 months if they lose coverage under the plans due to: termination of employment (for reasons other than gross misconduct) a reduction in hours of work, resulting in loss of eligibility for insurance participation Spouses or dependent children covered under the company’s group insurance plan(s) have a right to choose insurance continuation coverage under COBRA for 36 months if they lose coverage under the plan(s) for any of the following reasons: death of the employee divorce or legal separation from the employee the employee’s Medicare entitlement the dependent child ceases to be a dependent (as defined by the plan(s)) In the event of a divorce, legal separation, a child losing dependent status under the plan(s), or the birth or placement of a child with an employee for adoption, Human Resources must be informed in writing within 60 days of the occurrence of the qualifying event. Failure to provide written notification of such a qualifying event within the 60-day period will result in loss of the right to continuation coverage. An employee, employee’s spouse or dependent child may be entitled to up to eleven additional months of continuation coverage (for a total of 29 months) if he/she is certified as disabled under the United States Social Security Act. In order to be eligible for this additional continuation coverage, it must be determined that the individual was disabled before or during the first 60 days of continuation coverage. The employee, employee’s spouse, or dependent child must provide the company with a copy of the Social Security Administration’s Determination of Disability within 60 days after the determination is made and before the end of the 18 months following the date that employment was terminated or hours of employment were reduced.


Individuals who choose insurance continuation coverage will be required to pay the full cost of the coverage, plus an additional charge for administration of the coverage. Group insurance coverage will end if eligible individuals do not choose continuation coverage. A full discussion of insurance continuation and/or conversion rights and responsibilities will be provided by the company upon enrollment in the group insurance plan(s). Additionally, when a qualifying event occurs, employees and their covered family members will be provided more information regarding their right to choose continuation and/or conversion of coverage and the applicable time frames for election of coverage. SECTION 125 PLAN The company provides eligible employees with a Section 125 plan, which allows employees to pay for dependent medical coverage, as well as certain health care and dependent care costs, on a pre-tax basis. Employees will receive information regarding this benefit upon employment with the company. 401 (k) PLAN All employees who are at least 21 years of age are eligible to participate in the company’s 401(k) plan. An employee is eligible to participate the first day of the next quarter following 90 days of employment. Eligible employees may make tax deferred contributions to the plan through a salary reduction program. These contributions are subject to both plan maximums and IRS established maximums. Employees will receive information regarding this benefit upon employment with the company. Higginbotham Profit Units Higginbotham's Profit Units Plan gives each employee the ability to participate in the company's growth by earning grants of profit units on the employee's individual and departmental achievements. An employee is eligible for participation after one year of employment on May 1 1st. The plan allows participants to sell ("put") a maximum percentage of their shares after an assigned period, or save for retirement. LICENSING Employees involved in handling insurance placement of contact with customers for insurance reasons must obtain a proper insurance license. If the position requires that the employee is licensed, the employee must complete the licensing process within 90 days. The company will pay for up to three (3) testing attempts. The company will pay for the insurance license fee and any training expenses. CONTINUING EDUCATION REQUIREMENTS The State Board of Insurance requires all agents, solicitors, and customer service representatives to be licensed. In order to maintain the state license, each individual (unless he/she has been exempted) is required to accumulate 30 continuing education credits during each two-year


licensing period. Literature listing course dates and locations is available from the Licensing division of Human Resources. Company management must approve the course in advance and any time off from work. You will be required to sign Higginbotham’s Education Reimbursement Agreement before you can be approved for a course. If approved, the company will pay the cost of tuition and text materials. The company encourages all clerical staff to complete their CISR designation. WORKERS’ COMPENSATION Workers’ compensation insurance is maintained by the company to provide compensation to all employees (including full-time, part-time and temporary employees) for loss of wages due to injury or illness which occurs in or as a result of employment and also pays necessary related medical expenses, according to applicable state law. An employee may elect to decline such coverage if, no later than five days after beginning employment, the employee notifies Human Resources in writing that he/she wishes to retain his/her common law right of action. In such an instance, the employee would not be covered by the insurance plan and would not be able to obtain workers’ compensation income or medical benefits in the event of a job-related injury or accident. If the employee declines workers’ compensation insurance coverage, the employee may be terminated immediately, as coverage under workers’ compensation is a condition of employment with the company. All job-related injuries and accidents, regardless of the need for medical attention or severity of the injury or illness, must be reported immediately to the appropriate manager. If an employee requires medical attention, he/she will be sent to a health care provider or hospital for appropriate medical treatment. If necessary, the employee’s designated emergency contact will be notified of the illness or injury. Following the provision of appropriate medical care, the manager will ensure completion of the appropriate injury report forms and submit the forms to Human Resources. Workers’ compensation payments which an employee receives while on a workers’ compensation leave of absence may not be supplemented by any available PTO. Following a work-related injury or illness, the employee will only receive benefits available through workers’ compensation insurance. An employee who incurs a work-related injury or illness cannot substitute paid time off benefits for workers’ compensation benefits. The employee is required to accept workers’ compensation benefits if provided and will not be allowed to utilize any available paid time off in conjunction with workers’ compensation payments. An employee who is off of work due to a work-related injury or illness is expected to return to work immediately following release by his/her health care provider. Workers compensation leaves of absence will be administered as other medical leaves under the company’s Family and Medical Leave of Absence policy. Employees on workers’ compensation leave who qualify for 12 weeks of leave under the policy will be allowed to return to the same or an equivalent position if released to return to work within the employee’s available 12 week leave entitlement. If the employee does not return to work within the specified time period, the employee may be


replaced. However, when medically and fully released by a health care provider, the employee may reapply for available positions for which he/she is qualified and will be given the same consideration as external candidates.


OPERATING HOURS OF WORK, MEAL AND BREAK PERIODS The Managing Director (s) of each office is responsible for establishing the office hours to best serve the business needs of the company, customers and community. Work schedules are determined by each employee’s manager based upon business and customer needs. Employees are responsible for knowing and adhering to their office’s operating hours and their scheduled work hours. Time off for lunch will be unpaid, unless the employee is performing work during the meal period. Employees are not guaranteed break periods. If granted, breaks will be at the discretion of and scheduled by the manager. Fluctuation in an employee’s work hours may occur and should be expected on an occasional basis. Advance permission must be given by the appropriate manager in order for an employee to deviate from an assigned schedule. Producers are expected to notify the receptionist of their whereabouts and expected time of return to the office. BREAKS FOR NURSING MOTHERS The company allows employees who are nursing, reasonable breaks in order to express breast milk as frequently as needed during the work period for up to one year after the birth of their child. Employees are to contact their supervisor or Human Resources representative regarding the facilities and any need for flexibility in the work schedule in order to have the time to express milk. TELECOMUTING The company considers telecommuting to be a viable alternative work arrangement in cases where individual, job and manager characteristics are best suited to such an arrangement. Telecommuting allows an employee to work from home, on the road, or in a satellite location for all or part of their regular workweek. Telecommuting is a voluntary work alternative, approved by the company, that may be appropriate for some employees and some jobs. Telecommute work hours will conform to a schedule agreed upon by you and your manager. Telecommuting is not designed to be a replacement for child or elderly adult care, The focus of this arrangement must remain on job performance and meeting business demands. The availability of telecommuting as a flexible work arrangement for employees can be discontinued at any time at the discretion of the company.


Non-telecommuting employees must take available PTO in order to stay home while sick or caring for a sick family member or taking care of other personal business. Employees may not decline taking available PTO in order to instead work from home while sick, caring for a sick family member or other personal situations. EMERGENCY CLOSING/INCLEMENT WEATHER There may be occasions when emergencies such as severe weather, fires, power failures, or other occurrences disrupt normal company operations or create a serious transportation hazard and make it difficult for employees to arrive at work. The company evaluates such situations carefully before determining whether an office closing is warranted. If this occurs, each manager will attempt to contact his/her employees by 7:00 a.m. Employees should report to work unless the occurrence (such as inclement weather) proves to be an actual safety threat or an office closing has been announced. Employees are expected to use appropriate discretion in determining whether to attempt to come to work. Employees are expected to notify the appropriate manager as soon as possible if they will be late or absent from work due to an emergency occurrence. Employees who are scheduled to work on a day that the office is officially closed or closed early will receive their normal pay for the day. When the office is considered to have normal work schedules, nonexempt employees will not be paid for time missed due to inclement weather or other emergency occurrence unless they use available PTO or vacation time. Exempt employees will be required to use available PTO or vacation for an absence due to inclement weather or other emergency occurrence. ATTENDANCE AND PUNCTUALITY All employees are expected to report to work at their scheduled starting time and ready to work. Absenteeism and tardiness result in delays and create an extra workload on other employees who are in attendance as expected. Managers are responsible for the reporting and control of absenteeism and tardiness in their departments. Managers are ultimately responsible for identifying problems, counseling employees, and implementing any necessary disciplinary action. In the event of an unforeseen illness or an emergency situation requiring an employee to be late or absent from work, he/she is to notify the appropriate manager no later than one-half hour prior to the time he/she is regularly scheduled to begin work. Calls to non-designated personnel will not be considered appropriate notification. Notice must be given as to the nature of the illness or other reason for the absence or tardiness. Calls from individuals other than the employee will not be accepted as appropriate notice unless approved by the manager. In the event you must leave work unexpectedly, you are to notify your manager or appropriate designee as soon as the need arises. Absences of less than two hours will be charged to an employee’s PTO account unless the time is made up within the same work week.


If you are absent from work without notice to your manager, you will be considered to have abandoned your job and resigned from employment with the company after two full days of absence. The effective date of termination will be the last day on which you were at work. The company may require certification from a health care provider at any time for absences due to illness. A health care provider’s statement is required upon return to work for any absence of three or more continuous days due to illness or injury. The health care provider’s statement must indicate the nature of the illness or injury, as well as any restrictions upon the employee’s ability to return to work. The company reserves the right to request a second and/or third opinion from a health care provider to verify the illness, at the expense of the company. STANDARDS OF CONDUCT The company is committed to conducting its business affairs with the highest standard of honesty and integrity, and expects each employee to conduct himself or herself in a businesslike and professional manner. Action must be taken to ensure that the company’s products and services are provided and administered in a manner consistent with the company’s standards of conduct. Examples of such conduct include, but are not limited to: Conducting business in an honest and ethical manner and encouraging the same ethical

behavior in others. Maintaining an appropriate level of confidentiality of company trade secrets, financial data,

other non-public proprietary company information, and confidential information of business partners, vendors, and customers which could be used by the company’s competitors.

Complying with all applicable laws and regulations and company policies and procedures, in accordance with applicable laws, and regulations.

Reporting to work punctually, as scheduled, and being at the work area, ready to work, at the

assigned starting time. Notifying the manager should the employee need to be absent from work or unable to report

to work on time. Obtaining specific approval from a manager before removing any property from the

company. Performing assigned tasks efficiently and correctly. Working in a cooperative manner with management, supervisors, co-workers, customers, and

vendors. Refraining from behavior or conduct deemed offensive or undesirable, such as harassment or

discrimination or which bring the company, its employees or customers or your own reputation into questions.


This commitment applies to relationships with competitors, customers, vendors, and the general public. CONFLICTS OF INTEREST Employees should recognize the responsibility to avoid any conflict between personal interest and those of the Company’s business interests. A conflict of interest exists when an employee, knowingly or unknowingly, engages in any activity, which may compromise the employee, another employee, or the company in its relationship with a customer, vendor, or competitor. The company prohibits the brokerage of all lines of insurance by employees or associates. Any exception to this policy must be approved by management in writing. Also, a conflict of interest occurs when the Company’s interests interfere, or appear to interfere, with your ability to make sound business decisions on behalf of the Company. Nothing in this policy is to be interpreted as applying to concerted activity for mutual aid and protection under the National Labor Relations Act. You are prohibited from engaging in any activity, practice, or act which conflicts with, or appears to conflict with, the interests of the Company, its customers, or vendors. You are required to fully disclose any potential conflict of interest to your manager. All activities of the company must be conducted in full compliance with all applicable laws and regulations. If any employee believes that unusual circumstances justify his/her engaging in an activity that may result in a conflict of interest, he/she may request a review of the situation by company management. Failure to disclose a potential conflict of interest or engaging in a practice determined to be a conflict of interest will result in disciplinary action up to and including termination. GIFTS / ENTERTAINMENT On special occasions, it is the policy of the company to express appreciation, gratitude, or sympathy. The company will pay for flowers, gifts, awards, or entertainment for employees and other parties when appropriate and reasonable. Approval by company management must be obtained prior to expenditures being made on these occasions. Except as set forth above, employees shall not give to or receive from one another any gift which has a value in excess of $50.00. Violation of this provision may result in disciplinary action, up to and including termination of employment. EMPLOYEE DATING Dating between employees is discouraged by company management. If such relationships occur and create any type of disruption in the workplace, the company reserves the right to transfer or


terminate one or both employees involved. Managers and supervisory personnel are prohibited from dating or engaging in personal relationships with employees reporting to them either directly or indirectly CONFIDENTIALITY OF COMPANY INFORMATION Safeguarding the confidential nature of information concerning the company’s financial data, future business plans, transactions, trade secrets, technology, present and prospective customers, specialized business processes, suppliers, intellectual property, internal controls and methods to improve efficiency and workforce morale and cohesion is essential to the company’s present and future ability to succeed in a highly competitive business environment. Other people or companies should not unfairly benefit from the company’s competitive confidential information. The need to protect the company’s competitive confidential information should not be misinterpreted as chilling the right of employees to communicate about their wages, hours and working conditions. The need to protect the company’s competitive confidential information also should not be misinterpreted as inhibiting the company’s use of its own information. However, caution and discretion are required in the use of such information and in sharing it only when required in the normal course of business. Confidential records and documents of the company are not to be removed from the company’s premises without prior consent of senior management. Safeguarding the confidential nature of company information and retaining all records and documents are essential to the conduct of company business. “Confidential Records, Documents, and Information,” includes but is not limited to proposals, contracts, expense reports, notebooks, manuals, training-related manuals, and any and all records whether duplicated, computerized, memorized, and handwritten or in any other form and all information contained therein, including client names, e-mail addresses, phone numbers of any and all client and vendor contacts. This also includes payroll and benefit information, employee and client lists, coworkers’ family information, employee/family health information, and any other information contained within personnel files, existing and planned marketing plans and activities, event plans and activities, methods of operation, processes, pending events, vendor databases, and information files, and the requirements of the company’s operating costs, pricing, reimbursements, and similar financial data. While the company’s normal operations require the full flow of information throughout the organization, confidential information available to one department or division of the company should be communicated to other departments or divisions only when required in the normal course of business. Employees may only store business contact info on their personal cell phone for the purpose of conducting business while away from the main office. Employees may not use their personal cell phones or other personal electronic devices as the only device for the storage of company


information, including but not limited to, client information or client contact information. All client information and client contact information is the property of the company and must be communicated fully to the company as soon as it is obtained by the employee. The employee’s personal cell phone and other personal electronic devices are prohibited from being the only locations for the storage of client information and client contact information. Upon termination of employment with the company, the terminating employee shall promptly return all data, documents, client lists, employee records, and all other material, which may have been provided to the employee or which the employee may have obtained in connection with or as a result of employment with the company, had in his/her possession, to include any company data on their personal cell phone or other electronic devices. In accordance with this policy, the terminating employee is required to immediately delete any company-related databases, files, records, or other information stored on personal computer(s), cell phone(s) or mobile devices. Only authorized company representatives are to communicate with the public on behalf of the company. Events may occur that will draw immediate attention from the news media. It is imperative that authorized company representatives communicate on behalf of the company to deliver an appropriate message and to avoid giving misinformation in any media inquiry. All media inquiries regarding company affairs must be referred to the Corporate Marketing Department. This policy is intended to control the company’s official message and not to restrict employee communications about wages, hours, and working conditions. PROTECTED HEALTH INFORMATION (PHI) Protected health information (or PHI) is any information (whether electronic, oral, or in paper format) that is used to identify an individual’s physical or mental health condition, the health care services provided to an individual, or the payment of those services. Employees’ protected health information is treated as private and confidential. The company takes precautions to protect such information from inappropriate disclosure. If you would like the Human Resources Representative to inquire or act as an advocate on your behalf, you must complete an Authorization for Protected Health Information form. This form authorizes the company to use and disclose protected health information while conducting inquiries on your behalf. This form can be used to help you resolve a claim issue, check on the status of a claim, follow-up on pre-certification, and other inquiries deemed necessary with the insurance carrier or health care provider. All employees have a responsibility to respect and maintain the privacy and confidentiality of another employee’s protected health information. Anyone inappropriately disclosing such information, without prior authorization or permission, would be subject to the company’s disciplinary procedures.


OUTSIDE EMPLOYMENT No employee should have outside employment that might interfere with his/her job performance or adversely reflect upon the company. Outside employment will not be considered an excuse for poor job performance, absenteeism, tardiness, leaving early, refusal to travel, or refusal to work overtime or different hours. All employees are expressly prohibited from engaging in any activity that competes with any activity of the company or compromises it interests. This prohibition includes performing any services that create a conflict of interest, the unauthorized use of any company equipment, and the unauthorized use or application of any confidential trade information or techniques. In addition, employees are not to conduct any outside business during paid working time. NOTARY PUBLIC The company maintains a number of employees as notaries for the benefit of company business. The company will pay all associated fees if an employee is asked to be a notary public. Such individuals may not charge company clients or employees for these services. OFFICE ATTIRE GUIDELINES Employees contribute to the image and reputation of Higginbotham Insurance Agency in the way they present themselves. A professional appearance is essential to a favorable impression with customers, visitors and coworkers. Good grooming and appropriate dress reflect employee pride and inspire confidence in the company to our customers.. Business Casual Dress is required Monday through Thursday. Typically, Casual Dress will be permitted on Fridays and other occasions as determined by management. Management may also specify periods when casual days may be suspended. For Producers, it is recognized that Formal Business, Business Casual or Casual dress may be appropriate for client meetings and interactions. Discretion is left to the Producer in these situations as appropriate. The following is a general guideline of appropriate and inappropriate attire. This guideline cannot cover all contingencies; therefore employees must use sound judgement in their choice of attire at work. If there is any uncertainty regarding appropriateness of attire, employees should consult with their supervisor or Human Resources. Managers have the discretion to determine appropriateness in an employee’s appearance Employees whose appearance do not meet company standards may be sent home to change, and will not be paid for that time off. Business Casual Dress – Female Employees Appropriate attire includes, but is not limited to, slacks, suits, capri pants, skirts, dresses, blouses, shirts with collars, sweaters, dresses, dress shoes and business sandals. Inappropriate attire includes, but is not limited to, mini-skirts, skorts, T-shirts, tight fitting shirts, halter tops, and any inappropriately revealing clothing.


Casual Dress-Female Employees Appropriate attire includes, but is not limited to, shirts with collars, casual pants, capri pants, jeans, dresses, skirts, casual sandals and shoes. Inappropriate attire includes, but is not limited to, mini-skirts, skorts, shorts, T-shirts, tight fitting shirts, halter tops, athletic shoes, flip flop sandals, and any inappropriately revealing clothing. Business Casual Dress – Male Employees Appropriate attire includes, but is not limited to, business suits, blazers/sport coats, dress slacks, dress shirts, ties, loafers and dress shoes worn with socks. Casual Dress – Male Employees Appropriate attire includes, but not limited to, sport shirts, collared shirts, slacks (wool or cotton), jeans and casual shoes worn with socks. Inappropriate attire includes, but is not limited to, shorts, T-shirts, sweatshirts, sweatpants and athletic shoes. COMPANY PROPERTY AND SERVICES Equipment and Supplies All storage facilities, offices and workspaces, including desks, file cabinets, etc., are the property of the company and must be accessible to management at all times. Therefore, employees should not expect that such property will be treated as private and personal to the employee. Under no circumstances may an employee use personal locks on offices, furniture, file cabinets, or other company property. The company assumes no liability for the damage, loss or theft caused by third parties to personal property of employees. Computer, copiers, fax machines, and other office equipment and services are for company business purposes and are not to be used for any unauthorized purposes. It is each employee’s responsibility to exercise appropriate care of office equipment and to inform management of any equipment that is not working properly. In the event you store any non-business information in the company’s files or electronic data, then you have waived any right to privacy with respect to that stored information and it is subject to review by the company. The company maintains all necessary office supplies in the company supply room. Each employee is responsible for notifying the supply coordinator when supply levels are low. Employees are not to remove any item from the company’s premises, other than personal belongings, without prior approval of their manager. On or before their last day of work, or at


any other time when the company so requests, all employees must return to the company any and all property, memoranda, notes, record, computer files, manuals and other documents, including all copies of such documents, in any way relating to the business or affairs of the company or any of its employees, customers, clients, consultants, or agents. Likewise, any other items issued to employees by the company or created as a result of employment with the company must be returned and any confidential company information stored on any personal devices must be deleted. Mail and Telephones The company’s mail facilities are for the company’s official mail. The mail facilities are not to be used in any manner that interferes with the efficient operation of business operations. Under no circumstances is an employee to use company postage on personal mail. Office telephones are for business use. Personal telephone calls are to be kept to a minimum so that lines are available for business calls. Since most business contacts in the company are conducted over the telephone, it is important to express a professional attitude in all telephone conversations. Proprietary Property All inventions, copyrights, trademarks, ideas, methods, discoveries, designs, developments, and improvements made or conceived by employees which pertain to the products, processes, or business of the company are the sole property of the company. You must promptly and fully disclose and provide all such information and technology to the company. Employees should respect all copyright and other intellectual property laws. For the company’s protection as well as your own, it is critical that you show proper respect for the laws governing copyright, fair use of copyrighted material owned by others, trademarks, and other intellectual property, including the company’s own copyrights, trademarks, and brands. GENERAL HOUSEKEEPING All employees are expected to maintain their individual work areas and the general office areas to ensure an attractive work environment. All office areas, as well as the kitchen, are to be kept as clean and uncluttered as possible. In the kitchen area, all employees are responsible for rinsing dishes, glasses, etc. and placing them in the dishwasher after use. Food items are not to be left in the refrigerator for lengthy periods. Proper supplies and equipment necessary to perform duties should be neat and orderly. Only files currently being worked with should be on the employee’s desk, and all others should be returned to the proper filing areas. Upon leaving at night, all work areas should be cleared of paperwork, computer printouts and any personal items including coffee cups and soft drink bottles. The computer terminal should be logged off and turned off at night.


VISITORS Personal visits by friends, family or others unrelated to company business should be kept to a minimum. Non-employees should not be permitted access to secured areas. Representatives of other organizations that are engaged in competition with the company are prohibited from having access to company business and operation information. For this reason, no competitor or his/her employee will be allowed access to the company’s work areas, machines, work products, or any company business or operating information without prior approval from a member of senior management. PERSONAL BELONGINGS Employees should keep personal possessions, including wallets, handbags, and jewelry, in their own possession or secured out of sight. The company assumes no responsibility for lost or stolen personal articles. Any loss or suspected theft should be immediately reported to the employee’s manager or Human Resources. Any employee who finds what appears to be a lost personal article should give the article to the manager or Human Resources. Personal property brought onto company premises must not inhibit your performance or the performance of any other employee. PARKING Managers should notify employees of designated parking areas, and employees are expected to park only in these areas. The company assumes no responsibility or liability for damage to employees’ vehicles or theft of articles from their vehicles. BULLETIN BOARDS Bulletin boards will be used to post company information and to inform employees of matters affecting their job and the company. Bulletin boards are for the exclusive use of the company. Employees are not permitted to abuse, deface, or remove posted items. Additionally, employees are not allowed to post any document to the bulletin board without the prior approval of Human Resources. SOLICITATIONS AND CONTRIBUTIONS Employees have the right not to participate in solicitation or distribution activities. Employees are not permitted to distribute literature or printed materials of any kind, sell merchandise, solicit financial contributions, or solicit for any other cause during working time. Employees who are not on working time (e.g., those on lunch or break time) are not permitted to solicit employees who are on working time for any cause or distribute literature of any kind to them. This policy also prohibits solicitations conducted through e-mail, voice mail, and other forms of electronic


communication. Furthermore, employees may not distribute literature or printed material of any kind in working areas at any time. The company reserves the right to prohibit employee solicitation and distribution activities that are not protected by law at its discretion during the time the employee is supposed to be working. Employees are not permitted to participate in any solicitation activities during work time and they are not required to participate in solicitation activities at any time. Non-employees are prohibited from distributing materials or soliciting employees on company property at any time. USE OF COMPANY CREDIT CARDS Individuals in certain positions may be provided with a credit card to use for payment of business-related expenses. Use of a credit card for personal purchases is prohibited. Employees are expected to use any credit cards issued by the company in a financially responsible manner. Documentation of all purchases charged to the credit card must be submitted on the appropriate expense report to the employee’s manager, along with a detailed explanation of the business reason fur the purchase, as described in the Expense Reimbursement policy. EXPENSE REIMBURSEMENT Mileage, gasoline, or other expenses related to the operation of a vehicle are not reimbursable unless they are incurred while conducting company business. Fines or tickets are not reimbursable at any time and are the responsibility of the employee. When personal vehicles are used for company business, mileage will be reimbursed at a rate up to the maximum allowed by the IRS. In addition, an appropriate amount of income will be reported on the employee's’ annual earnings statement in accordance with IRS regulations regarding the personal usage value of an assigned company vehicle. The company does not maintain a petty cash fund. An employee must complete an expense report for documentation of any business expense, which is to be reimbursed. All business expenses must be supported by receipts. The expense report must be approved by the employee’s manager and submitted to the Accounts Payable Clerk for reimbursement. Expenses that are considered to be excessive or unreasonable will not be reimbursed. DRIVING ON COMPANY BUSINESS If you drive on company business, you are required to maintain a valid driver’s license and must maintain the state-mandated minimum liability coverage on your automobile. Only employees are permitted to drive vehicles being used for company business. The primary responsibility of a driver is to operate a motor vehicle safely. The task of driving requires the driver’s full attention and focus; therefore, employees who are driving on company business are expected to follow all traffic regulations (including posted speed limits and cell phone use) and refrain from engaging in any activity that takes their eyes and attention off the road. Employees driving on company business are required to use hands-free equipment if they


must talk on a cell phone while driving (whether the vehicle is owned by the employee or the company). Under no circumstances may an employee text on a cell phone or any electronic device while driving on company business. Employees who drive on business are required to follow all traffic regulations, including posted speed limits, and are expected to maintain their personal driving record free from moving traffic violations and DWIs. Any violations should be reported to the employee’s manager within 2 business days, and payment of any traffic citations will be the responsibility of the employee. Failure of the employee to notify the manager of a DWI is grounds for disciplinary action up to and including termination. The company may periodically audit an employee’s driving record and/or driver’s license for compliance with this policy or to determine whether the employee is currently licensed to drive. Any driving record that establishes a pattern of unsafe driving practices that may endanger the employee or clients, or impact the employee’s ability to perform his or her job duties, could subject the employee to disciplinary action. Employees who drive their own vehicle must maintain at least the state required minimum automobile liability insurance. Additionally, such employees must maintain their driver’s license and vehicle inspection stickers in current status, and abide by any restrictions required for licensing. SECURITY Employees are responsible for understanding and following the company’s established security procedures. Employees should enter and depart through designated entrances and should always be alert for individuals loitering in or near the facility. Human Resources or appropriate manager should be notified immediately of any such persons. Employees should never loan their company keys or identification cards to anyone or disclose their computer passwords to anyone. The last individual in the office each day is responsible for closing the office. This involves turning off lights, computer terminals, coffee machines, copy equipment, securing the elevator at the second floor level, and locking both first floor entrance doors. SAFETY It is the company’s policy to provide a safe and healthful workplace. Managers will promote safe working practices by maintaining property and equipment in safe operating condition and enforcing adherence to applicable safety procedures. In the event of an accident involving employees, customers, or visitors on company premises, Human Resources must be immediately notified regardless of the severity of the injury. An injured or seriously ill individual should not be moved until appropriately trained professionals have appraised the extent of the illness or injury.


Employees are expected to adhere to all safety procedures, keep their work areas free from safety hazards, and to report safety or fire hazards to the appropriate manager. COMMUNITY INVOLVEMENT All employees are encouraged to actively participate in community and civic affairs. This not only broadens each employee’s own individual interests, but benefits the community and reflects well upon the corporate citizenship of the company. However, outside activities should never conflict with job responsibilities. EMPLOYEE SUGGESTIONS Employees are encouraged to present concerns or suggestions for improvement in procedures and working conditions so that management may give them consideration for adoption where feasible. PROBLEM RESOLUTION Attempts will be made to review and resolve in a prompt and equitable manner any employee problems presented to management. When a work-related problem occurs, employees are encouraged to first attempt to work out a resolution to the issue with the individual with whom the problem exists. If such action is not possible or is unsuccessful, the employee should present the problem to his/her manager. If the problem cannot be resolved by the employee’s manager, or if it involves the manager, the employee should seek resolution of the problem through the internal chain of command or any member of management. WORKPLACE MONITORING AND SEARCHES The company has the express right to access company property including, but not limited to, desk; lockers; computers; files; e-mail; voice mail; and other electronic communications, etc.; and other property owned or operated by the company. All such property and communications belong to the company and will be monitored, intercepted, reviewed, and/or searched at the company’s discretion for business purposes such as monitoring compliance with company policies and procedures; investigation of business security issues, disclosure of confidential business or proprietary information, or personal abuse of the system; or monitoring work flow or productivity. Any such searches or monitoring will be performed in compliance with all applicable laws and regulations. Any employee bringing a personal computing device, data storage device, or image-recording device on to company premises gives permission to the company to inspect the personal computer, data storage device, or image-recording device at any time with personnel of the company’s choosing and to analyze any files, other data, or data storage devices or media that may be within or connectable to the personal computer or image-recording device in question. Employees who do not wish such inspections to be done on their personal computers, data


storage devices or imaging devices should not bring such items to work at all. Monitoring or searches conducted of company property or premises are not allegations or accusations of criminal conduct, nor is submission to such monitoring or searches an admission of guilt. Employees are expected to cooperate in any such monitoring or searches. To promote the safety of employees and company visitors, as well as the security of its facilities, the company reserves the right to conduct video surveillance of any portion of its premises at any time. Video cameras will be positioned in appropriate places within and around company buildings. The only exceptions to this policy include private areas of restrooms, showers and dressing rooms.

ELECTRONIC COMMUNICATIONS The company may provide e-mail, voice mail, Internet access, and other forms of electronic communication in order to enable employees to communicate more efficiently and to provide an effective resource for the operation of the business. Employees are generally permitted to use electronic communications for business-related reasons only. Unauthorized personal use (including instant messaging and personal browsing of the Internet), any unauthorized access, and/or misuse of the company computer system is prohibited. All company policies, including the Equal Employment Opportunity and Harassment policies should be followed while using the company’s computer system and/or equipment (including the use of company-provided e-mail and Internet access). Only information that has been authorized and is necessary for company operations is to be downloaded to the company’s computer system and equipment, and such information is limited to internal company use. Employees are not permitted to install any software onto the company’s computer system without prior approval from IT management. In addition, employees are expected to log off any secure, controlled-access computer or other form of electronic data system to which they are assigned if they leave such computer or system unattended.

All internal and external communications composed or sent through the company’s systems should be written in a professional manner, regardless of the mode in which the correspondence is transmitted. This includes messages sent outside the company and all internal communications.

Use of the company electronic communication equipment must not disrupt the operation of the company network or interfere with an employee’s productivity.

Communications should not violate policies intended to implement federal or state law, such as the Equal Employment Opportunity and Harassment policies, must be followed while using company equipment. No abusive, profane, or maliciously false language or pictures may be transmitted by employees.


Internet sites that contain offensive material may not be visited under any circumstances. Offensive material includes, but is not limited to, child pornography, other pornography, or anything racist or hate-based.

Company equipment may not be used for any non-work-related solicitations.

All e-mail messages must have your name attached. Messages may not be transmitted under an assumed name and you may not attempt to obscure the origin of any message.

Company equipment may not be used to send or receive copyrighted materials, trade secrets, proprietary financial information, or similar competitive confidential materials without prior authorization from an officer of the Company.

Employees are to respect the laws regarding copyrights, trademarks, rights of publicity, and other third party rights. To minimize the risk of a copyright violation, you should provide references to the source(s) of information you use and accurately cite copyrighted works you identify in your online communications. Do not infringe on company logos, brand names, taglines, slogans, or other trademarks.

Employees must not engage in any activity on the computer or system which would defeat or attempt to defeat security restrictions on the company systems and applications.

E-mail documents and other computer files composed or stored on company equipment are the property of the company and communications produced or transmitted on such equipment will be monitored. The following written notice should be provided to non-employees receiving messages from an employee: Information contained in or sent to the computer system of Higginbotham Insurance Agency, Inc.

is company property and may be accessed and intercepted for review at any time. COMPUTER SOFTWARE It is the intent of the company to comply with copyright laws and software licensing agreements when acquiring, installing, and using software on personal computers owned by the company. Unless the license specifically allows otherwise, a given software package may be used on only one computer and the company must have an original software license on file for each computer where a given software package is installed. Although most software titles may actually be shared on multiple computers if those computers are attached to a network, it is a violation of the copyright to do so unless:

the package was specifically designed to run on a network, and the company is not exceeding the number of users as designated by that package and the software license contained in that package; or

the company has a site license for that product. The IT Manager is responsible for maintaining records of software licensing agreements for the company. In order to ensure compliance with copyright laws and software licensing agreements, and to help prevent computer viruses from being transmitted through the system, you are not permitted


to install or download any software onto the company’s computer system without prior approval from management, and after consulting with the IT Manager. It is illegal to make or distribute copies of copyrighted material without the written authorization of the copyright owner (the only exception being the right of the user to make a backup copy for archival purposes). The copyright law makes no distinction between duplicating software for sale or for free distribution. Unauthorized duplication of software, often referred to as “piracy,” is a federal crime. Employees are not permitted to make, acquire, or use unauthorized copies of computer software. Employees may use software only in accordance with the terms and conditions of the license included with the software. If the employee is unwilling to comply with the terms and conditions contained in the software license agreement, the employee must not use or install the software and should notify your manager of the situation. SOCIAL MEDIA The Company respects the rights of employees to use social media as a medium of self-expression on non-working time. Employees must not disclose trade secrets or any information that is proprietary to the Company (non-public business methods and know-how, systems, training material and instructions for carrying out the company’s business, financial and marketing strategies, and plans) in any discussions or postings that take place in this format. An employee must not represent his/her opinions or statements as being those of the company and must expressly state that his/her postings are “my own and do not represent the company’s positions, strategies, or opinions.” You are prohibited from posting or displaying comments about employees, customers, guests, affiliates and competitors that are vulgar, obscene, maliciously false, threatening, intimidating, harassing or that are in violation of the company’s workplace policies against discrimination, harassment, or hostility based on race, color, sex (including pregnancy, gender identity, and sexual orientation), religion, national origin, age, disability, genetic information, veteran and uniformed services status, or any other status protected by law. Accordingly, harassing comments, obscenities or similar conduct that would violate Company policies is discouraged in general and is never allowed while using Company equipment or during your working time. All employees are expected to know and follow this policy. Nothing in this policy is designed to interfere with, restrain, or prevent employee communication regarding wages, hours, or other terms and conditions of employment, as employees have the right to engage in or refrain from such activities. If you have any questions regarding this policy, it is recommended that you ask your supervisor or Human Resources Representative before acting. Because this is a constantly evolving area, this policy applies to all current and future social media platforms.


CELL PHONES AND MOBILE DEVICES During working time you are expected to exercise the same discretion in using personal cell phones as is expected for the use of company phones. Placing calls, receiving calls, or texting on your personal cell phones should be kept to a minimum and should never interfere with your job performance or the job performance of other employees. Use of personal laptops, tablet computers, digital audio players, and other personal electronic equipment should only be used by employees during authorized breaks and meal periods. The company reserves the right to physically and digitally search any devices with storage or memory capabilities that the employee might bring to work and to make copies of any files found therein. The use of imaging or audio recording capable devices within the company may constitute not only an invasion of employees’ personal privacy, but may breach confidentiality of company trade secrets or other protected information. Therefore, the use of imaging or audio recording devices while on working time is prohibited without a legitimate business need and the express prior permission of senior management and of the person(s) present at the time. Misuse of imaging or devices against coworkers and the company, or for unauthorized copying or transmitting of company information may lead to disciplinary action as well as civil and/or criminal liability. An exception to this policy concerning the use of imaging or audio devices would be to engage in activity protected by law including, for example, taking pictures of health, safety and/or working condition concerns or of strike, protest and work-related issues and/or other protected concerted activities. Employees driving on company business are prohibited from using a cell phone or any other electronic device while operating a vehicle. Safety must come before all other concerns. All employees are expected to follow applicable state and federal laws and regulations regarding the use of cell phones while operating a vehicle at all times. Employees who are charged with traffic violations resulting from the use of their phone while driving will be solely responsible for all liabilities that result from such actions. Employees are strictly prohibited from texting on a cell phone or any other electronic device while operating a vehicle. Individuals in certain positions may be provided with a cell phone, or may be reimbursed by the company for a portion of a personal cell phone plan. The employee is responsible for any cost beyond what has been preapproved. Employees are expected to protect a company provided cell phone from loss, damage, or theft. Upon resignation or termination of employment, or at any time upon request, the employee may be asked to produce the phone for return or inspection. Employees who are issued cell phones for business use should use these phones for business reasons only. Phone logs may be audited to ensure no unauthorized use has occurred. Employees who are issued company cell phones are required to use hands-free equipment any time they are driving a vehicle (whether the vehicle is the employee’s or the company’s). If the hands-free equipment fails to operate or malfunctions, use of the cell phone is to be discontinued until the employee has safely pulled off the road and placed the vehicle in park. Employees on company business, who are using their personal cell phones for business, are also required to use hands-free equipment any time they are driving a vehicle. Failure to use hands-


free cell phone equipment while operating a vehicle on company business is grounds for disciplinary action up to and including termination. VIOLENCE AND WEAPONS The company expressly prohibits acts or threats of violence by or against any employee, customer, vendor, or other visitor to the company’s facilities. In addition, company management strictly prohibits the unlawful possession and/or use of any and all weapons (including guns, knives, explosives, or other items with the potential to inflict harm) on company premises by any employee, customer, vendor, or other visitor. Employees are further prohibited from unlawfully possessing and/or using any and all weapons while conducting business on behalf of the company while off of company premises. Pursuant to Section 30.07, Penal Code (trespass by license holder with an openly carried handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a handgun that is carried openly. Individuals who legally possess a firearm or ammunition are not prohibited from carrying the firearm or ammunition in their locked, privately owned vehicles while parked in company approved parking areas. Any potentially dangerous situations, or observations of weapons in the workplace, must be reported immediately to your manager or the Human Resources Representative. These situations may include knowledge of personal or family relationships that could bring violence into the workplace. USE OF TOBACCO The company’s office locations are tobacco-free environments. Smoking and/or the use of other forms of tobacco are prohibited except in outside areas designated by the company. The non-smoking policy applies to all visitors as well as to all employees. Employees are expected to inform visitors of this policy when necessary. SUBSTANCE ABUSE The company is dedicated to providing and maintaining a safe, healthy, and productive working environment free from drugs, alcohol, and other controlled substances. It is a violation of the company’s policy for an employee to: report for work or perform work duties under the influence of alcohol, illegal drugs,

inhalants, or other controlled substances; manufacture, sell, distribute, dispense, possess, purchase, or use alcohol, illegal drugs,

inhalants, or other controlled substances in the workplace; or use legal drugs in an improper manner


Improper use of legal drugs refers to the use of prescription medication not prescribed for current personal treatment by a licensed medical professional, or the use of any prescription or non-proscription medication to an extent or in a manner which impairs the performance of an employee’s job duties. No prescription drug is to be brought on company property by any employee other than the employee for whom it is prescribed. Such drug must be used by said employee only in the manner, combination, and quantity prescribed. Policy Compliance Measures In order for the company to monitor and implement this policy, the company will require employees and/or applicants for employment to submit to required testing to screen for the presence of illegal drugs, inhalants, alcohol, or other controlled substances in any of the following circumstances: Upon consideration of an applicant for employment. Following a work-related accident where

o there is damage to property o there is a reasonable possibility that drug/alcohol use may have been a contributing

factor to the reported injury or accident and the injury or accident resulted in immediate medical treatment beyond first aid

If an employee has been observed using a prohibited substance on the job. If an employee exhibits a severe or prolonged reduction in productivity. If management has other reasonable suspicion as grounds for testing such employee. On a random basis, utilizing formalized random drug testing procedures. Any employee who tests positive to alcohol, illegal drugs, inhalants or other controlled substances will be subject to disciplinary action, up to and including termination. Likewise, an applicant who refuses to consent to testing or who tests positive to alcohol, illegal drugs or inhalants, or other controlled substances will not be eligible for employment with the company and will have any offer of employment withdrawn. Reasonable Suspicion Testing Reasonable suspicion testing may be based upon, among other things: observable phenomena, such as direct observation of drug use or possession and/or the

physical symptoms of being under the influence of drugs or alcohol; a pattern of abnormal conduct or erratic behavior; arrest or conviction for a drug-related offense, or the identification of an employee as the

focus of a criminal investigation into illegal drug possession, use, or trafficking; information provided either by reliable and credible sources or independently corroborated;

or


newly discovered evidence that the employee has tampered with a previous drug test. Although reasonable suspicion testing does not require certainty, mere “hunches” are not sufficient to meet this standard. If an employee is suspected of using illegal drugs or being under the influence of alcohol, the manager will gather all information, facts, and circumstances leading to and supporting this suspicion. The manager will promptly prepare a written report detailing this information, including the dates and times of reported drug-related incidents, reliable/credible sources of information, and the rationale which forms the basis to warrant testing. If senior management concurs with the reasonable suspicion determination, the employee will be required to undergo drug and/or alcohol testing. Random Testing No position within the company will be exempted from random testing. In implementing the program of random testing senior management will: ensure that the means of random selection remains confidential; evaluate periodically whether the numbers of employees tested and the frequency with which

those tests will be administered satisfy the company’s purpose of achieving a drug-free work force; and

use a third party to randomly select employees for testing The employee selected for random testing and the employee’s manager will be notified the same day the test is scheduled, preferably within four hours of the scheduled testing. The manager will explain to the employee that the employee is under no suspicion of taking drugs and that the employee’s name was selected randomly. An employee selected for random testing may obtain a deferral of testing if the employee’s direct manager and higher-level manager concur that a compelling need necessitates a deferral on the grounds that the employee is: in a leave status (using PTO or vacation, or on a leave of absence); or in official travel status away from the company or is about to embark on official travel

scheduled prior to testing notification. An employee whose random drug test is deferred will be subject to an unannounced test within the following sixty days. Testing Procedures The scheduling, content, scope, and use of the test results will be solely at the discretion of company management. Any required testing will be administered by qualified testing personnel. The collection of specimens for testing will be conducted with due regard for the individual’s privacy but consistent with appropriate practices and procedures in order to ensure the integrity of the collection process. Prior to testing, the individual must disclose to the testing facility any


medications recently taken, or any other relevant information that could potentially affect the test results. If the drug test results are positive and/or the alcohol test shows an unacceptable alcohol concentration, the employee will be subject to disciplinary actions up to and including termination. The employee will not be allowed to continue working and will be provided transportation home. The results of the tests will be confidential and will be communicated only to representatives of the company who have a need to know the information, to officials involved in the counseling and/or rehabilitation process, or to law enforcement and other governmental agencies as may be appropriate or required by law. Any employee convicted of a criminal drug statute violation must notify the company no later than two days after such conviction. Additionally, appropriate law enforcement officials may be notified if an employee violates the company’s Substance Abuse policy. Alcohol and Drug Rehabilitation Upon notice of a positive result on required testing or upon conviction of a criminal drug statute violation, an employee must participate in an approved substance abuse treatment or rehabilitation program, if offered, and must comply with the treatment recommended by such a program. The company’s group health insurance may provide limited coverage for expenses related to substance abuse treatment or rehabilitation programs. Employees should contact Human Resources for information regarding any such assistance. Disciplinary action, up to and including termination of employment, may be enacted at any point for violation of the substance abuse policy, regardless of any rehabilitation or counseling programs offered. An employee granted a leave of absence to participate in an approved substance abuse treatment or rehabilitation program must successfully complete the program, including all follow-up requirements, as well as any return-to-work agreements. The employee will be reinstated upon presenting evidence of successful completion of such a program and a release to return to work if he/she is released to return to work within the job-holding time constraints specified in the company’s Family and Medical Leave of Absence policy. Reinstatement will be conditioned on the employee’s successful completion of required return-to-work testing. As a condition of employment, all employees must abide by all the terms of the company’s substance abuse policy at all times while performing company business, whether on or off of company property. Employees violating any provision of this policy will be subject to disciplinary action, up to and including termination of employment. Additionally, such actions may be reported to appropriate law enforcement officials. ALCOHOL CONSUMPTION Employees are prohibited from consuming alcohol or being under the influence of alcohol while performing work on behalf of the company. Intoxication will not be permitted, and any


employee who is intoxicated or who appears to be intoxicated will be subject to disciplinary action up to and including termination of employment. Employees may occasionally find themselves in situations where alcoholic beverages are being consumed at an event where their attendance is being sponsored by the company. In such instances, employees are not prohibited from consuming alcohol, but consumption must be in moderation so as not to reflect poorly on the company’s reputation or to expose the company to legal liability involving the safety of the employee or others. Alcohol consumption should not lead to impaired performance, inappropriate behavior, endangerment of the safety of any individual, or violation of any applicable law. After consuming alcohol at any such function, employees should not drive or otherwise engage in any hazardous activity if the alcohol consumed would impair their ability to safely perform those activities. HARASSMENT The company will not permit, tolerate, or condone harassment against any individual for any reason, including, but not limited to, harassment on the basis of race, color, religion, national origin, sex (including pregnancy, gender identity, and sexual orientation), age (40 or older), disability, genetic information, sexual orientation, veteran status, uniformed services status or any other status protected by applicable law. Comments, conduct, or innuendoes that might be perceived by others as offensive or harassing are wholly inappropriate and are prohibited in the workplace. This policy applies to company employees, customers, vendors, and visitors to the premises. All employees must avoid offensive or inappropriate behavior in employment-related relationships and are responsible for ensuring that employment-related relationships remain professional and free from harassment at all times. Harassment can include, but is not limited to, the following actions. Inappropriate Communication – Involves any language which is unnecessarily loud or

degrades or berates others, including, but not limited to, racial, religious, or sexual comments or jokes, sexual innuendoes, or threats of any kind, whether communicated verbally, in writing, or electronically. Inappropriate communication also involves offensive or inappropriate written materials including, but not limited to, pictures, letters, email messages, texts, graffiti, etc.

Physical Contact – Includes, but not limited to, inappropriate touching, hitting, kicking, or threatening another person, including restraining by force or blocking the path of another.

Interference or Hostile Environment – Includes any behavior or action which interferes with an employee’s ability to perform job duties and responsibilities, or which results in or creates a hostile or intimidating work environment.


Sexual Harassment – Includes, but is not limited to, unwelcome sexual advances, requests for sexual acts or favors, and other verbal or physical conduct of a sexual nature when:

submission to such conduct is made, either explicitly or implicitly, a term or

condition of an individual’s employment; submission to or rejection of such conduct by an individual is used as the basis for

employment decisions affecting such individual; or such conduct is severe and pervasive and has the purpose or effect of unreasonably

interfering with the individual’s work performance or creating an intimidating, hostile, or offensive work environment.

Retaliation – Includes any adverse action or threat of adverse action taken or made because

an employee has exercised or attempted to exercise any rights under applicable laws or under the policies of the company. Retaliation includes, but is not limited to, threats, or materially adverse employment actions, such as withholding or withdrawal of pay, promotions, training, or other employment opportunities.

It is important that employees clearly understand the serious effects of harassment. Your behavior may result in personal liability, as well as liability to the company. If you feel you have been harassed or discriminated against, you are encouraged to immediately inform the alleged harasser that the behavior is unwelcome. In many instances, the person is unaware that their conduct is offensive and when so advised, can easily and willingly correct the conduct so that it does not reoccur. If this informal discussion with the alleged harasser is unsuccessful in remedying the problem, or if you do not feel comfortable with such an approach, you must report the incident verbally or in writing to your manager, Human Resources or any member of senior management immediately. A complaint must include the specific nature of the incident and the date(s) and place(s) such alleged harassment took place, as well as the name(s) of any individual(s) known to be involved. Complaints of policy violations will be promptly and carefully investigated, including interviews with all relevant persons. Investigators will conduct an objective investigation that strikes a balance between the company’s need to conduct a full investigation and an employee’s desire for privacy. The company limits its dissemination of information regarding the complaint(s) and resulting investigation only to individuals with a legitimate “need to know”. Employees who utilize this procedure are assured that they will be free from any and all reprisal or retaliation for reporting such violations or cooperating in an investigation. UNSATISFACTORY PERFORMANCE, BEHAVIOR, AND CONDUCT Employees are expected to behave in an appropriate and business-like manner. Examples of such conduct are outlined in the Standards of Conduct policy.


The following examples of unacceptable performance, behaviors, and conduct are subject to corrective counseling or other disciplinary action, including termination. This list should not be considered exhaustive or all-inclusive. The nature and severity of an offense will be considered in determining disciplinary action to be taken. Any questions in connection to this policy should be directed to Human Resources. Examples of unacceptable performance-related issues include, but are not limited to: Absenteeism, tardiness, or failure to report to work without sufficient explanation and

authorization or failure to observe work hours, such as scheduled starting and quitting times, breaks and meal periods

Failure to meet quality standards as explained to you by your manager, mistakes due to carelessness, repetitive or excessive errors or failure to obtain necessary work instructions

Failure or refusal to cooperate with or assist other employees, customers, or other individuals with work-related tasks

Performing unauthorized personal work during working time

Misappropriation of company supplies

Use of company equipment for personal financial gain

Destruction of or damage to company property

Violations of performance expectations may also constitute misconduct. Examples of misconduct include, but are not limited to: Insubordination

Profane or abusive language that is uncivil, insulting, contemptuous, vicious, or malicious

Fighting, violence, threats, harassment, intimidation, horseplay, and other disruptive behavior

in the workplace

Interfering with another employee’s job performance

Violating the company’s Substance Abuse policy

Falsifying company records (e.g., time records, expense reports, etc.)

Filing a fraudulent injury-on-the-job claim


Filing a knowingly false report of policy violation

Unauthorized disclosure of confidential company information

Failure to observe established safety policies

Violating the company’s harassment and/or discrimination policies

Disorderly or discourteous conduct, including fighting or using obscene, abusive, or

threatening language or gestures, towards clients, employees, or other individuals, or gossiping with or about employees or clients while performing work or otherwise representing the company

Stealing, destroying, abusing, or damaging company property, tools or equipment or the property of another employee, customer, or other individuals

Possessing a weapon in an unlawful manner while on company property or while on company business

Deliberately concealing another employee’s misconduct

Creating a condition hazardous to company property or a person on company premises

Failing to report any observed or known violation of any policy

Violating any applicable laws or regulations while performing work or otherwise representing the company or otherwise related to the duties and responsibilities of the position

Any other breach of appropriate business standards and conduct and/or the company’s policies and procedures

DISCIPLINARY GUIDELINES This disciplinary policy applies to all (exempt and nonexempt) employees. When appropriate, employees may be counseled in attempt to correct any performance or behavioral problems. Generally progressive disciplinary actions as described below will be followed. However, in certain circumstances and at management’s sole discretion, it may be necessary to impose an action, up to and including termination of employment, without prior notice or counseling and without progressing through each stage of the disciplinary guidelines. Determination of appropriate action will be made on a case-by-case basis based on the nature and severity of the occurrence.


Verbal Counseling – The manager may discuss unacceptable performance or behavior with the employee. The discussion will indicate the nature of the problem and the action necessary to correct it.

Written Warning – The manager will prepare a written warning regarding an employee’s

unacceptable performance or behavior, which will be discussed with the employee. Some infractions may warrant a written warning without prior verbal counseling.

Probation Period/Suspension – A probation period and/or suspension, with or without pay,

may be utilized to address an employee’s unacceptable performance or behavior. Some infractions may warrant a probation and/or suspension without prior disciplinary action.

In situations in which an investigation is necessary in order to determine appropriate disciplinary action in response to a performance or behavioral issue, the employee may be placed on suspension pending the results of the investigation.

Termination of Employment – Unacceptable performance or behavior may result in

termination of employment. Certain infractions may warrant immediate termination of employment without prior disciplinary action.


SEPARATION RESIGNATION Resigning employees are expected to provide appropriate advance written notice of their intent to resign. Failure to provide and work through the appropriate notice of resignation may result in ineligibility for re-employment and forfeiture of payment for any available vacation. An employee’s notice period may not include vacation days. The employee’s date of termination will be the last day he/she actually worked. At least two weeks’ written notice to the employee’s manager is expected prior to the effective date of resignation. The employee should state the effective date of termination and the reason for resigning. Any verbal resignation should be immediately documented by the manager and signed by the employee. The manager should immediately forward the documentation to Human Resources. A resignation is irrevocable, unless approval to rescind it is provided by Human Resources. The company may permit the employee to continue employment during the notice period or accept the resignation immediately, or at any time within the notice period, and pay the employee for the remainder of the notice period, up to a maximum of two weeks at the discretion of management. Any available vacation will be paid to the employee who resigns from the company with appropriate advance written notice and works through the notice period with no absences. Employees will not receive payment for unused PTO when they terminate from the company. JOB ABANDONMENT Employees are expected to provide appropriate notice if they are unable to work. Any employee who is absent from work without notice to his/her manager will be considered to have abandoned the job and resigned from employment with the company after two full days of absence. The effective date of termination will be the last day on which the employee physically worked. An employee who abandons the job will be paid only for each day actually worked. No payment for available PTO or vacation will be made when an employee is terminated for job abandonment. PERFORMANCE-BASED AND MISCONDUCT-RELATED TERMINATION Performance-based or misconduct-related terminations are initiated by the company for unacceptable job performance or inappropriate conduct or behavior (see Standards of Conduct and Unsatisfactory Performance, Behavior, and Conduct in the Operating section).


The effective date of termination will be the last day in which the employee physically worked. Any available vacation will be paid to an employee who is terminated for reasons of unacceptable job performance; however, no payment for available PTO will be made. No payment for available vacation or PTO will be made when an employee is terminated for reasons of misconduct. MEDICAL SEPARATION A medical separation is a release initiated by either an employee or the company when the employee is unable, for health reasons, to continue to work. A medical separation will not affect the employee’s eligibility for continued receipt of workers’ compensation or other disability payments for which he/she is eligible. Upon such a termination, the employee will be paid in accordance with company policy, any available vacation he/she is eligible. RETIREMENT Retiring employees are expected to provide advance notice of their intent to retire in order for the company to plan for the replacement of their position. Your retirement date will be the last day you actually worked. Any available vacation will be paid to you upon retirement. You will not receive payment for unused PTO when you retire. REDUCTIONS-IN-FORCE Organizational changes within the company such as office closings, office relocations, reorganizations, consolidation of functions, restructuring, elimination of job functions, or lack of work may require the termination or transfer of some employees. Any available vacation will be paid to the employee who is terminated due to a reduction-in-force. No payment for PTO will be made when an employee is terminated due to a reduction-in-force. TERMINATION PROCEDURES Regardless of the reason for separation, a terminating employee will generally be interviewed by Human Resources on or before his/her last day of employment. This exit interview will be conducted to give a terminating employee an opportunity to discuss his/her reasons for leaving, as well as for the company to gain information that might improve policies, working condition, or procedures. The following items may be discussed and reviewed during the exit interview, if applicable:


status of benefits final pay PTO or vacation pay due The employee’s correct forwarding address is to be obtained in order to ensure that the annual W-2 and any other documents or forms are mailed to the correct address. If the employee has not already done so, Human Resources should request that the terminated employee sign an authorization for payroll deduction for reimbursement to the company of any funds owed to the company, vacation taken but not yet accrued, or for payment for any lost, damaged or unreturned items. The authorization should be specific as to the amount and purpose of the deduction. Any and all paperwork or forms, including documentation of the exit interview, resignation letter, payroll deduction authorization forms, and other termination paperwork is to be forwarded to Human Resources for processing and retention in the personnel file. Resigning employees will receive their final pay on the next regularly scheduled payday. Employees terminated by the company will be paid within six calendar days from the date of termination.