jacobi, llc acctknowledge

Jacobi, LLC

DBA

AcctKnowledge

Employee Handbook

Effective September 9, 2019

AcctKnowledge COMPANY CONFIDENTIAL Employee Handbook

Page 1 of 40

TABLE OF CONTENTS

SECTION I: INTRODUCTION ...................................................................................................... 4

Introductory Statement ................................................................................................................. 4 Client Relations ............................................................................................................................ 4 Scope of Employment & Responsibilities for Temporary Employees ........................................ 5

SECTION II: GOVERNING PRINCIPLES OF EMPLOYMENT ................................................. 5

“At-Will” Employment Policy ..................................................................................................... 5 Employee Relations Policy .......................................................................................................... 5 Equal Employment Opportunity Policy ....................................................................................... 5 Prohibition of Harassment, Discrimination & Retaliation Policy ................................................ 6 Americans with Disabilities Act Policy ....................................................................................... 9

Drug and Alcohol Abuse Prevention and Testing Policy........................................................... 10 Business Ethics and Conduct Policy .......................................................................................... 10

Conflicts of Interest Policy ......................................................................................................... 10

Outside Employment and Other Compensation Policy .............................................................. 11 Confidentiality & Non-Disclosure Policy .................................................................................. 11 Employee Conduct and Work Rules Policy ............................................................................... 11

Problem Resolution Policy ......................................................................................................... 12

SECTION III: OPERATIONAL & PAYROLL POLICIES ......................................................... 13

Employment Categories ............................................................................................................. 13 Timekeeping & Pay Periods ....................................................................................................... 14 Personnel Data Changes ............................................................................................................. 15

Employee Records & Employment Applications ...................................................................... 15 Attendance and Punctuality ........................................................................................................ 15

Personal Appearance .................................................................................................................. 16 Resignation ................................................................................................................................. 16

SECTION IV: LEAVE POLICIES ................................................................................................ 17

Holiday Leave Policy ................................................................................................................. 17 Paid Time Off (PTO) Policy ...................................................................................................... 17

Family & Medical Leave Policy ................................................................................................ 18 Jury Duty & Court Appearances Policy ..................................................................................... 26 Military Leave Policy ................................................................................................................. 27 Bereavement Leave Policy ......................................................................................................... 30

Natural Disaster/Other Office Closures ..................................................................................... 30

SECTION V: INFORMATION TECHNOLOGY POLICIES ...................................................... 30

Computer Equipment and Email Usage ..................................................................................... 30 Internet Usage ............................................................................................................................. 31

APPENDIX A - FMLA Poster ....................................................................................................... 33


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APPENDIX B - Drug And Alcohol Abuse Prevention And Testing Policy ................................... 34

APPENDIX C - Acknowledgement................................................................................................ 40


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Welcome to AcctKnowledge!

This Employee Handbook serves primarily as an orientation document and

personnel policy reference for new hires and as a reference for all existing

employees as well. The following pages will provide you with the

Company’s policies, rules, processes and procedures. It is important that

you become familiar with them in their entirety.

Through our evaluation of your qualifications to be a part of our team at

AcctKnowledge (“AK” or “Company”), we are confident that you will be a

highly valued participant in achieving our goals in this customer service

environment. AK hires employees to provide services either directly to AK

(“AK Regular Employees”) or to provide services to AK’s clients

(“Temporary Employees”). AK also conducts searches for candidates for positions with AK clients

(“Direct Hires”). With regard to Direct Hires, AK clients make the decision whether to hire such

candidates and if hired, the candidate(s) become employees of the client and are not employees of

AK.

This Employee Handbook applies only to AK employees. It does not apply to Direct Hires.

Additionally, applicants for positions with AK as Temporary Employees may receive a copy of this

handbook during the application process. However, the handbook is provided only for

informational purposes and does not become applicable to such applicant until and unless the

applicant becomes an employee of AK.

As an employee, you will represent AK. Your appearance, conduct, attitude and reliability, as well

as your technical skills, will contribute to your success and affect the growth and success of AK in

the market place.

We trust that the information on the following pages will be sufficient to guide your daily

performance. Should you be unsure about a particular policy or procedure, please consult with our

management team.

Thank you for choosing to join the AK team. We look forward to your contribution, as we pursue

our collective goal of providing unsurpassed service and support to our clients.

Sincerely,

Chris Jacobi

President/CEO


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SECTION I: INTRODUCTION

Introductory Statement

This handbook is designed to acquaint an employee with AK and provide information about working

conditions, employee benefits, and some of the policies affecting employment. The employee should read,

understand, and comply with all provisions of the handbook. An applicant for a position as a Temporary

Employee should also read, understand, and if such applicant is hired as a Temporary Employee, comply with

all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the

programs developed by AK to benefit employees. One of our objectives is to provide a work environment that

is conducive to both personal and professional growth.

No employee handbook can anticipate every circumstance or question about your employment. As AK

continues to grow, the need may arise and AK reserves the right to revise, supplement, or rescind any policies

or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. This

handbook supersedes any and all past policies, procedures, understandings, and standards, written or verbal,

express or implied to the extent the subject matters are addressed herein unless specifically outlined in a written

employment agreement signed by the President/CEO of AK and you. If there is an inconsistency with a prior

understanding, you have an obligation to contact the President/CEO of AK for resolution. Only the

President/CEO of AK has the authority to amend or permit an alteration or departure from the terms of this

Employee Handbook.

If you are hired as a Temporary Employee, you are to follow the provisions in this handbook and also the

client’s rules and policies that apply to you. These would include, for example, where you can park and

whether smoking or the use of tobacco is permitted. If there is a conflict between the client’s rules and policies

and those contained in this handbook, the policies contained in this handbook will control. If you have any

questions about what client rules and policies apply to you, contact AK’s HR Administrator for clarification.

This handbook is not contract of employment for any specified period of time. No statement in the handbook

may be construed to grant any employment contract of a fixed duration, nor may this handbook be interpreted

as making an implied or express contract of employment that is for a fixed duration or other than “at-will.”

Client Relations

Clients are among our organization's most valuable assets. Every employee represents AK to our customers

and the public. The way we do our jobs projects an image of our entire organization. Clients judge all of us by

how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any

client or potential client by being courteous, friendly, helpful, and prompt in the attention we give to clients.

Our personal contact with the public, our telephone etiquette and the communications we express, either orally

or in writing to our clients or potential clients, are a reflection not only of ourselves, but also of the

professionalism of the staff. Positive client relations not only enhance the public's perception or image of AK,

but also for you as an employee or future employee.


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Scope of Employment & Responsibilities for Temporary Employees

If you are a Temporary Employee, it is your responsibility to make AK aware of your availability for

assignments. If, upon completion of an assignment, you fail to contact AK within 48 hours to advise us of

your availability or if you fail to notify AK weekly of your availability for work, AK will consider such failure

as a voluntary resignation. Such failure and/or refusal to accept assignments may affect current and/or future

unemployment claims.

If you are approached by a client of AK with an offer of direct employment, you are to notify AK. AK and its

clients may have an agreement that involves the client paying AK a conversion/buy out fee if the client hires

a AK Temporary Employee prior to a certain set period of hours.

If you are assigned to work at the offices of a client, your services are to be rendered only at the job site to

which you are assigned. It is expressly outside the scope of your job as a Temporary Employee with AK to

drive a vehicle or to run errands requiring the use of a vehicle on behalf of a client. In the event a client asks

you to perform duties involving leaving the jobsite, you must obtain specific permission to do so from AK

prior to undertaking any such activity.

SECTION II: GOVERNING PRINCIPLES OF EMPLOYMENT

“At-Will” Employment Policy

Employment with AK is voluntarily entered into, and the employee is free to resign at will at any time, with

or without cause. Similarly, AK may terminate the employment relationship at will at any time, with or without

notice or cause.

Policies set forth in this handbook are not intended to create a contract, nor are they to be construed to constitute

contractual obligations of any kind or a contract of employment between AK and any of its employees.

Employee Relations Policy

AK believes that the work conditions, wages, and benefits it offers to its employees are competitive with those

offered by other employers in this area and in this industry. If employees have concerns about work conditions

or compensation, they are strongly encouraged to voice these concerns openly and directly to their manager.

Our experience has shown that when employees deal openly and directly with their manager, communications

can be clear, and attitudes can be positive. We believe that AK amply demonstrates its commitment to

employees by responding to employee concerns.

Equal Employment Opportunity Policy

Responsibilities. It is the responsibility of every employee to abide by and carry out the letter, spirit, and intent

of this Equal Employment Opportunity Policy. All officers, supervisors, and employees of the Company

should continually examine their personnel practices to ensure that the Company operates within this Equal

Employment Opportunity Policy.


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Protections. The Company is an equal opportunity employer and prohibits discrimination in all aspects of

employment, including, but not limited to, recruitment, hiring, training, wage administration, promotions or

upgrading, demotions, downsizing, transfers, benefits, compensation, work assignments, daily work

environment, discipline, and termination. The Company prohibits discrimination based on race, color, religion,

sex, sexual orientation, gender identity, national origin, disability, pregnancy, age, military status, veteran

status, genetic information, or any other characteristics protected by applicable federal, state, or local laws.

Nothing in this Equal Employment Opportunity Policy, however, is intended to limit or expand the Company’s

obligations pursuant to applicable federal, state, and local laws, rules, and regulations. All decisions of the

Company affecting applicants for employment and employees will be based on an individual’s qualifications,

including education, experience, job-related skills, interest, job performance, and availability.

Questions. Any employee with questions about equal employment opportunities at the Company is

encouraged to bring these issues to the attention of the President/CEO.

Complaint Procedure. The Company has established the following procedure for reporting alleged violations

of the Equal Employment Opportunity Policy:

(a) Requirement to Make Complaint. An employee who perceives or believes that particular

conduct or comments of another person violate this Equal Employment Opportunity Policy must report

such conduct or comments to the President/CEO or any member of management as soon as reasonably

practicable. An employee has the obligation to make a complaint whether the conduct or comments

are directed at the employee or at someone else.

(b) Investigation. All complaints shall be promptly and impartially investigated by appropriate

management personnel or outside counsel.

(c) Complaint of Retaliation. This Complaint Procedure also applies when an employee

perceives or believes that another person is engaged in retaliation prohibited by the next paragraph.

Retaliation Prohibited. The Company prohibits any retaliation against an employee who, in good faith, has

made a complaint or participated in an investigation under this Equal Employment Opportunity Policy. Any

employee of the Company who, after reasonable investigation, has been determined to have retaliated against

an employee for making a good faith complaint is subject to discipline, up to and including termination of

employment. If an employee believes he/she or another employee has been the subject of retaliation, the

employee is required to make a complaint alleging retaliation by using the Complaint Procedure contained in

this Equal Employment Opportunity Policy.

Effect of Violation. Violations of this Equal Employment Opportunity Policy may result in disciplinary action,

up to and including termination of employment.

Prohibition of Harassment, Discrimination & Retaliation Policy

Protections. The Company has established this Prohibiting Harassment, Discrimination & Retaliation Policy

which prohibits discrimination against and harassment of its employees in any form, by any supervisor,

employee, client, customer, vendor, director, owner, or officer of the Company. This includes harassment

and/or discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin,

disability, pregnancy, age, military status, veteran status, genetic information, or any other characteristics

protected by applicable federal, state, or local laws. The Company also prohibits retaliation against anyone

who has made a complaint under this policy. Any violation of this policy may result in disciplinary action, up

to and including termination of employment. Nothing in this policy, however, is intended to limit or expand

the Company’s obligations pursuant to applicable federal, state, and local laws, rules, and regulations.


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Sexual Harassment

Definition of Sexual Harassment. Unwelcome sexual advances, requests for sexual favors, and other verbal

or physical conduct of a sexual nature may constitute sexual harassment when one or more of the following

occur:

(a) Submission to such conduct is made either explicitly or implicitly a term or condition of an

individual’s employment;

(b) Submission to or rejection of such conduct by an individual is used as a basis for employment

decisions affecting such individual; and/or

(c) Such conduct has the purpose or effect of unreasonably interfering with an individual’s work

performance or of creating an intimidating, hostile, or offensive working environment.

Examples of Sexual Harassment. By way of example, but not as an exhaustive illustration, the following

conduct by supervisory or non-supervisory personnel of the Company can constitute a violation of this policy:

(a) Threatening or insinuating that an employee’s submission to or rejection of sexual advances

will in any way influence any personnel decision regarding that employee’s employment, evaluation,

wages, advancement, assigned duties, shifts, or any other condition of employment;

(b) Repeated sexual flirtation, joking, or teasing;

(c) Advances or propositions;

(d) Continual or repeated verbal abuse of a sexual nature;

(e) Graphic verbal commentaries about an individual’s appearance;

(f) Sexually degrading words or comments;

(g) Lewd, risqué, or obscene language;

(h) Gender-targeted jokes or cartoons;

(i) The display in the workplace of sexually suggestive objects or pictures; and/or

(j) Intentional, nonconsensual touching.

Other Types of Harassment and Discrimination

Protected Classes. Besides sexual harassment and discrimination, this policy also prohibits harassment and

discrimination based on race, color, religion, sex, sexual orientation, gender identity, national origin, disability,

pregnancy, age, military status, veteran status, genetic information, or any other characteristics protected by

applicable federal, state, or local laws.

Examples. By way of example, but not as an exhaustive illustration, the following conduct or comments can

constitute a violation of this policy:


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(a) Making jokes, statements, or committing acts regarding a particular race, color, religion, sex,

sexual orientation, gender identity, national origin, disability, pregnancy, age, military status, veteran

status or genetic information that are regarded as derogatory, offensive, prejudicial, or harassing;

(b) Using racial or ethnic slurs;

(c) Making derogatory or offensive comments about pregnancy or pregnant women;

(d) Refusing to hire, train, promote, or provide equitable employment conditions based on any of

the aforementioned protected classes, except when business necessity or a bona fide occupational

qualification can reasonably be established.

Complaint Procedure. Early reporting and intervention are effective methods of resolving actual or perceived

incidents of harassment, discrimination or retaliation. The Company has established the following procedures

for reporting conduct that an employee believes may be in violation of this policy:

(a) Requirement to Make Complaint. An employee who perceives or believes that particular

conduct or comments of another person may violate this policy must report such conduct or comments

to the President/CEO or any member of management as soon as reasonably practicable. An employee

has the obligation to make a complaint whether the conduct or comments are directed at the employee

or at someone else. Any supervisor or member of management approached by an individual regarding

possible harassment, discrimination or retaliation is required to bring the complaint to the attention of

the President/CEO. Failure to promptly report such conduct prevents the Company from conducting

a timely investigation and therefore such failure will be grounds for disciplinary actions, up to and

including termination of employment.

(b) Complaints After Normal Business Hours. To report an incident after normal business

hours, employees are to call management at 918-812-6847.

(c) Requests to Stop Harassment. An employee who perceives or believes that particular

conduct or comments is harassment or discrimination is permitted (but not required) to ask or tell the

other individual to stop engaging in such conduct or making such comments. However, the employee

is not relieved of the responsibility to make a complaint, even if the other individual stops whatever

conduct or comments he/she was making.

(d) Complaint of Retaliation. This Complaint Procedure also applies when an employee

perceives or believes that another person is engaged in retaliation by the paragraph below.

Retaliation Prohibited. The Company prohibits any retaliation against an employee who, in good faith, has

made a complaint or participated in an investigation under this policy. Any employee of the Company who,

after reasonable investigation, has been determined to have retaliated against another employee for making a

good faith complaint under this policy is subject to discipline, up to and including termination of employment.

If an employee believes he/she or another employee has been the subject of retaliation in violation of this

policy, the employee is required to make a complaint alleging retaliation by using the Complaint Procedure.

Investigation of Complaint. All complaints shall be promptly and impartially investigated by appropriate

management personnel or outside counsel, subject to the following:

(a) Confidentiality. Complaints will be kept as confidential as possible, subject to the need to

disclose information in the investigation and management response process;


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(b) Interviews. The investigation will include interviews with the employee who made the

complaint, the alleged harasser or retaliator, and others who could reasonably be expected to have

relevant information;

(c) Cooperation. Employees are expected to cooperate fully with and assist in the investigation

if requested to do so by the Company; and

(d) Opportunity to Answer Allegations. Any employee accused of harassment, discrimination,

or retaliation in violation of this policy shall have an opportunity to answer the allegations at a

meaningful time and in a meaningful manner.

Outcome of Investigation. No determination regarding a complaint shall be made until the investigation

pursuant to this policy is completed. If the Company determines that this policy has been violated, the

offending employee will be subject to discipline, up to and including termination of employment. If the

Company determines that the complaint was not made in good faith, with a genuine factual basis, the employee

making the unfounded complaint will be subject to discipline, up to and including termination of employment.

Americans with Disabilities Act Policy

Policy Statement. The Company is committed to complying with all applicable provisions of the Americans

with Disabilities Act (the “ADA”), as amended. It is the Company’s policy not to discriminate against any

qualified employee or applicant with regard to any terms or conditions of employment because of such

individual’s disability or perceived disability so long as the employee can perform the essential functions of

the job, with or without a reasonable accommodation. Consistent with this policy of nondiscrimination, the

Company will provide a reasonable accommodation to any qualified individual with a disability, as defined by

the ADA, who has requested an accommodation, provided that such accommodation does not constitute an

undue hardship on the Company.

Procedure for Requesting an Accommodation.

(a) Employees with a disability who believe they need a reasonable accommodation to perform

the essential functions of their job must contact the President/CEO or any member of management.

The Company encourages individuals with disabilities to come forward and request a reasonable

accommodation.

(b) On receipt of an employee’s accommodation request, the President/CEO or any member of

management and the employee’s supervisor will meet with the employee to discuss and identify the

precise limitations resulting from the disability and the potential accommodation that the Company

might make to help the employee perform the essential functions of his/her job.

Interactive Process. The Company will engage in an interactive process with the employee requesting an

accommodation. The Company may request and require relevant medical information to verify the existence

of the disability and to obtain suggestions on accommodation from an employee’s health care provider. An

employee is required to cooperate fully in this process, including providing a HIPAA authorization if necessary

in order to facilitate communications between the Company and the health care provider.

Decisions on Accommodation Requests / Appeals of Decisions. The Company will inform the employee of

its decision on the accommodation request or provide information on an alternative accommodation. If the

accommodation request is denied, the employee will be advised of his/her right to appeal the decision by

submitting a written statement to the President/CEO, explaining the reasons for the request. If the request on

appeal is denied, that decision is final.


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Limitations on Accommodations. The ADA does not require the Company to make the best possible

accommodation. Nor does the ADA require the Company to provide the accommodation requested by the

employee.

Questions. An employee who has questions regarding this policy should contact the President/CEO.

Drug and Alcohol Abuse Prevention and Testing Policy

Refer to Appendix “B” for the AK Drug and Alcohol Abuse Prevention and Testing Policy.

Business Ethics and Conduct Policy

The successful business operation and reputation of AK are built upon the principles of fair dealing and ethical

conduct with regard to our employees. Our reputation for integrity and excellence requires careful observance

of the spirit and letter of all applicable laws and regulations, as well as a scrupulous regard for the highest

standards of conduct and personal integrity.

The continued success of AK is dependent upon our clients’ trust and we are dedicated to preserving that trust.

Employees owe a duty to AK and its clients to act in a way that will merit the continued trust and confidence

of the public.

AK expects its employees to conduct business in accordance with the letter, spirit, and intent of all relevant

laws and to refrain from any illegal, dishonest, or unethical conduct.

In general, the use of good judgment, based on high ethical principles, will guide you with respect to lines of

acceptable conduct. If a situation arises where it is difficult to determine the proper course of action, the matter

should be discussed openly with your manager and, if necessary, with the President/CEO for advice and

consultation.

Compliance with this policy of business ethics and conduct is the responsibility of every AK employee.

Disregarding or failing to comply with this standard of business ethics and conduct could lead to disciplinary

action, up to and including possible termination of employment.

Conflicts of Interest Policy

Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts

of interest. This policy establishes only the framework within which AK wishes the business to operate. The

purpose of these guidelines is to provide general direction so that employees can seek further clarification on

issues related to the subject of acceptable standards of operation by contacting the President/CEO.

An actual or potential conflict of interest occurs when an employee is in a position to influence a decision that

may result in a personal gain for that employee or for a relative as a result of AK’s business dealings. For the

purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with

the employee is similar to that of persons who are related by blood or marriage.

No "presumption of guilt" is created by the mere existence of a relationship with outside firms. However, if

employees have any influence on transactions involving purchases, contracts, or leases, it is imperative that

they disclose to an officer of AK as soon as possible the existence of any actual or potential conflict of interest

so that safeguards can be established to protect all parties.


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Outside Employment and Other Compensation Policy

Employees may hold outside jobs as long as they meet the performance standards of their job with AK. All

employees will be judged by the same performance standards and will be subject to AK’s scheduling demands,

regardless of any existing outside work requirements.

If an employee's outside work interferes with performance or the ability to meet the requirements of AK as

they are modified from time to time, the employee should consider terminating the outside employment if he

or she wishes to remain employed with AK.

Outside employment that constitutes a conflict of interest is prohibited. Employees may not receive any income

or material gain from individuals outside AK for materials produced or services rendered while performing

their jobs. This may include, but not be limited to, considerations from vendors, contractors and/or purveyors

AK does business with. Prior to any acceptance of gifts, tokens, or considerations for doing business with AK,

an employee must obtain approval from the President/CEO. At that time, the appropriate allocation or

distribution of the considerations will be determined.

Confidentiality & Non-Disclosure Policy

As an employee of AK you may have access to confidential information regarding the Company and the clients

for whom you may work. You are prohibited from disclosing, directly or indirectly, to any unauthorized

person (including other employees), any confidential information.

The protection of confidential business information and trade secrets of clients and of our Company is vital to

the interests and the success of AK. Such confidential information includes, but is not limited to, the following

examples:

• computer processes

• customer lists

• financial information

• business and proprietary information

• technology information

• trade secrets

• research data

• information regarding costs, profits, markets, market studies and forecasts

• billing and fee policies and data

• key personnel data

• other business affairs and methods

All employees may be required to sign a non-disclosure agreement as a condition of employment. Even if they

are not required to sign such an agreement, employees who improperly use or disclose trade secrets or

confidential business information will be subject to disciplinary action, up to and including termination of

employment and legal action, even if they do not actually benefit from the disclosed information.

Employee Conduct and Work Rules Policy

To ensure orderly operations and provide the best possible work environment, AK expects employees to follow

rules of conduct that will protect the interests and safety of all employees and the Company.


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AK does not adhere to any formal system of corrective action and management’s right to take corrective action

to improve performance or to terminate employment is absolute. If corrective action is taken, it will vary based

on the offense, the circumstances surrounding the offense, and the employee’s past record with AK.

It is not possible to list all the forms of behavior that are considered unacceptable in the workplace. The

following are examples of infractions of rules or conduct that may result in disciplinary action, up to and

including termination of employment:

• Theft or inappropriate removal or possession of property

• Falsification of timekeeping records

• Working under the influence of alcohol or illegal drugs

• Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the workplace, while on

duty, or while operating employer-owned vehicles or equipment in violation of Company policy

• Fighting or threatening violence in the workplace

• Boisterous or disruptive activity in the workplace

• Negligence or improper conduct leading to damage of Company-owned or customer-owned property

• Insubordination or other disrespectful conduct

• Violation of safety or health rules

• Smoking in prohibited areas

• Sexual or other harassment or discrimination in violation of Company policy

• Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace,

subject to applicable laws

• Excessive absenteeism or any absence without notice

• Unauthorized absence from work station during the workday

• Unauthorized use of telephones, mail system, or other Company-owned equipment

• Unauthorized disclosure of business "secrets" or confidential information

• Violation of Company policies

• Unsatisfactory performance or conduct

Employment with AK is at the mutual consent of the Company and the employee, and either party may

terminate that relationship at any time, with or without cause, and with or without advance notice.

Problem Resolution Policy

AK is committed to providing an open and frank atmosphere in which any problem, complaint, suggestion, or

question receives a timely response.

If employees disagree with established rules of conduct, policies, or practices, they can express their concern

through the problem resolution procedure. No employee will be penalized, formally or informally, for voicing

a complaint with AK in a reasonable, business-like manner, or for using the problem resolution procedure.

If a situation occurs when employees believe that a condition of employment or a decision affecting them is

unjust or inequitable, they are encouraged to make use of the following steps. Employees may discontinue the

procedure at any step.

(a) Employee raises an issue to his/her immediate manager after the issue arises. If the manager

is unavailable or the employee believes it would be inappropriate to contact that person, the employee

may present the issue to the President/CEO or any other member of management.

(b) Manager responds to the issue during discussion or after consulting with appropriate

management, when necessary. The manager documents the discussion.


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(c) Employee presents the issue to the President/CEO if the issue is not resolved.

(d) President/CEO reviews and considers the issue. President/CEO informs the employee of the

Company’s response and forwards a copy of the written response to the HR Administrator for the

employee's file. The President/CEO has full authority to make any adjustment deemed appropriate to

resolve the issue.

Not every issue can be resolved to everyone's total satisfaction, but only through understanding and discussion

can employees and management better understand each other. This understanding is important to the operation

of an efficient and productive work environment.

SECTION III: OPERATIONAL & PAYROLL POLICIES

Employment Categories

It is the intent of AK to clarify the definitions of employment classifications so that employees understand

their employment status. These classifications do not guarantee employment for any specified period of time.

Accordingly, the right to terminate the employment relationship at will at any time is retained by both the

employee and AK.

“NON-EXEMPT” - Employees in positions which are non-exempt according to the Fair Labor Standards Act

(FLSA) are eligible to receive overtime for hours worked in excess of 40 hours per workweek, or other

applicable state overtime regulations. Holiday and Paid Time Off, or other pay, if applicable, do not count

toward the hours worked for the purpose of calculating overtime.

“EXEMPT” - Employees in positions which meet the exemption status according to the FLSA perform

requirements according to a defined function and are paid a weekly salary. Such employees, by definition, are

exempt from the overtime provisions of the FLSA and are not entitled to any overtime pay for work performed

in excess of 40 hours in a workweek. Exempt employees are expected to put in the hours necessary to

accomplish assigned objectives, goals, tasks or projects which may require to work in excess of 40 hours per

workweek. If applicable, deductions from the salary of an exempt employee will be made in accordance with

the FLSA.

In addition to the designation of non-exempt and exempt, employees will belong to one of the following

employment categories:

“REGULAR, FULL TIME” - To be classified as a “Regular, Full-Time Employee,” the employee must be

employed to work in the offices of AK and not be employed to work at a client’s place of business. Employees

who are employed to work at a client’s place of business are not classified as “Regular, Full-Time Employees,”

but are classified as “Temporary Employees” as defined below. In addition, to be classified as a “Regular,

Full-Time Employee,” the employee must regularly work 24 hours or more per workweek.

“REGULAR, PART TIME” - To be classified as a “Regular Part-Time Employee,” the employee must be

employed to work in the offices of AK and not be employed to work at a client’s place of business. In addition,

a “Regular, Part-Time Employee” is one who regularly works less 24 hours per workweek.

“TEMPORARY EMPLOYEES” - One of our primary lines of business is to provide Temporary Employees

to provide services at client businesses. Employees assigned to work at the work site of a client are classified

as a Temporary Employee regardless of the number of hours they regularly work.


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“DIRECT HIRE” – AK conducts searches for clients for the client to directly hire an individual as the client’s

employee. In this situation, the client is the employer of the individual and the individual is not an employee

of AK. Since the individual is not an employee of AK, this handbook is not applicable to “Direct Hires.”

All determinations of classification of employees are in the sole discretion of AK.

For purposes of determining eligibility for employee benefits, different classification rules may apply.

Employees should consult this handbook, the Summary Plan Descriptions, and other plans, programs or

policies to determine whether they are eligible for employee benefits.

Timekeeping & Pay Periods

Timekeeping is to be completed and approved weekly by all non-exempt employees and approved by an

authorized client if applicable. The AK workweek begins on Monday at 12:01 AM and ends on Sunday at

midnight. A completed, approved and client-authorized record of hours worked must be received by the AK

office by 8:00 AM on Mondays. Approved delivery methods include email, US mail, personal delivery or by

using AK’s web-based Electronic Timekeeping System (ETK). If a client requests timekeeping records at a

different time, such as the last day of the workweek, employees must comply with the client’s request.

The Timekeeping record is an important part of payroll (record keeping) and is essential to our billing process.

If corrections or modifications are made to the timekeeping record, both the employee and the manager must

verify the accuracy of the changes by approving the appropriate timekeeping record.

Temporary Employees are paid on Friday for work performed the previous workweek. Paychecks may be

picked up on Fridays from 8:00 AM to 5:00 PM. Direct deposit is also offered as a convenience.

Regular, Full-Time Employees and Regular Part-Time Employees are paid on the 1st and 3rd Fridays of each

month, with commissions (if applicable) paid the 2nd Friday of each month.

Your attention to prompt completion and submittal of these records is essential to our business. The pay system

is driven by receipt of your weekly timekeeping record.

Employees may have their pay directly deposited into their bank accounts if they provide advance written

authorization to AK. Employees will receive an itemized statement of wages when AK makes direct deposits.

Responsibilities of employees include:

• Non-Exempt employees are required to record all time worked accurately on the appropriate

timekeeping record and submit the timekeeping record on time.

• An employee may not record anyone else’s time or allow anyone else to record his/her time.

• Anyone who falsifies his/her timekeeping record, or someone else’s timekeeping record will be subject

to disciplinary action, up to and including termination.

• Non-exempt employees may not work from home or otherwise off premises of the client or AK offices

and outside of normal hours without the express consent from AK management and the client, if

applicable.

• Overtime for non-exempt employees should be pre-approved by the client, if applicable, or AK

management.

Permissible Deductions: Employees’ pay will include deductions for certain items such as your portion of

health, dental or life insurance premiums if applicable; state, federal or local taxes, social security; or, voluntary

contributions to a 401(k) or pension plan, if applicable.


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Exempt employees may be subject to deductions as permitted under the FLSA. For example, absent contrary

state law requirements, exempt employees’ salary can be reduced for the following reasons:

• Full day absences for personal reasons.

• Full day absences for sickness or disability under certain circumstances in accordance with the FLSA.

• Full day disciplinary actions for certain infractions to our written policies.

• Family and Medical Leave absences (either full or partial day absences).

• To offset amounts received as payment for jury and witness fees or military pay.

• The first or last week of employment in the event you work less than a full week.

In any workweek in which an exempt employee performs any work, their salary will not be reduced for any of

the following reasons:

• Partial day absences for personal reasons, sickness or disability.

• Absence on the day before or after a paid holiday or because the facility is closed on a scheduled work

day.

• Absences for jury duty, attendance as a witness, or military leave in any week in which you have

performed any work.

• Any other deductions prohibited by state or federal law.

If a deduction is made from your salary that you do not understand, you are to contact the HR Administrator

to obtain an explanation or correction.

Personnel Data Changes

It is the responsibility of each employee to promptly notify AK of any changes in personnel data. Personal

mailing addresses, telephone numbers, number and names of dependents, individuals to be contacted in the

event of an emergency, educational accomplishments, and other such status reports should be accurate and

current at all times. If any personnel data changes, please notify the HR Administrator as soon as the change

takes place.

In the event someone inquires about your employment, it is Company policy not to release any information

other than the dates of your employment and present or last position held. Pay information is given out on a

current employee only in the event a signed and dated release by the employee is provided to the Company.

Employee Records & Employment Applications

Employee records maintained by AK are the property of the Company. These records shall be kept

confidential. Any medical records will maintained separate from the personnel file and will only be used as

permitted by law.

AK relies upon the accuracy of information contained in the employment application, as well as the accuracy

of other data presented throughout the hiring process and employment. Any misrepresentations, falsification,

or material omissions in any of this information or data may result in the exclusion of the individual from

further consideration for employment or, if the person has been hired, termination of employment.

Attendance and Punctuality

To maintain a safe and productive work environment, AK expects employees to be reliable and to be punctual

in reporting for scheduled work. Absenteeism and tardiness place a burden on other employees and on AK. In


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the rare instances when employees cannot avoid being late to work or are unable to work as scheduled, they

should notify their manager as soon as possible in advance of the anticipated tardiness or absence.

Poor attendance and excessive tardiness are disruptive. Either may lead to disciplinary action, up to and

including termination of employment.

Personal Appearance

Dress, grooming, and personal cleanliness standards contribute to the morale of all employees and affect the

business image AK presents to clients and visitors.

During business hours or when representing AK, you are expected to present a clean, neat, and tasteful

appearance. You should dress and groom yourself according to the requirements of your position and accepted

social standards. This is particularly true if your job involves dealing with clients or visitors in person.

Your manager is responsible for establishing a reasonable dress code appropriate to the job you perform. If

your manager feels your personal appearance is inappropriate, you may be asked to leave the workplace until

you are properly dressed or groomed. Under such circumstances, you may not be compensated for the time

away from work. Consult your manager if you have questions as to what constitutes appropriate appearance.

Without unduly restricting individual tastes, the following personal appearance guidelines should be followed

for all positions:

• Shoes must provide safe, secure footing, and offer protection against hazards.

• Long hairstyles should be worn with hair pulled back off the face and neck if such hairstyle could

present a hazard to the individual or others in the workplace.

• No tattered jeans or shorts.

• Shirts with language or graphics that are vulgar, sexually explicit, or may be otherwise offensive are

not allowed.

• Attire that is revealing or provocative is not allowed.

• Offensive body odor and poor personal hygiene are not professionally acceptable.

• Perfume, cologne, and aftershave lotion should be used moderately or avoided altogether, as some

individuals may be sensitive to strong fragrances.

• Jewelry should not be functionally restrictive, or dangerous to job performance.

• Mustaches and beards are acceptable but must be clean, well-trimmed, and neat.

Resignation

Resignation is a voluntary act initiated by the employee to terminate employment with AK. Although advance

notice is not required, AK requests at least 2 weeks written resignation notice from all employees.

Prior to an employee's departure, an exit interview may be scheduled to discuss the reasons for resignation and

the effect of the resignation on benefits.


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SECTION IV: LEAVE POLICIES

Holiday Leave Policy

The Company will observe the following holidays at AK’s offices and the AK offices will be closed for

business:

New Years Day

Memorial Day

Independence Day

Labor Day

Thanksgiving Day

Thanksgiving (Day after)

Christmas Day

Birthday (This must be used in the month in which your birthday falls or it will be forfeited.)

When one of these holidays falls on a Sunday, the holiday will be observed on the following Monday. When

one of these holidays falls on a Saturday, the holiday will be observed on the previous Friday.

Holiday Pay. Subject to the eligibility rules below, employees receive holiday pay as follows:

Non-Exempt, Regular Full-Time Employees. Non-Exempt, Regular Full-Time Employees will receive

eight (8) hours of holiday pay at his/her normal hourly rate for all of the holidays listed above.

Exempt, Regular Full-Time Employees. Exempt, Regular Full-Time Employees will be paid their normal

salaries as holiday pay if they work during the workweek in which the holiday falls.

Regular, Part -Time Employees. Regular, Part-Time Employees are not eligible for holiday pay.

Temporary Employees. Temporary Employees are not eligible for holiday pay.

Effect of Unpaid Leave. Notwithstanding anything else in this policy, an employee who is on unpaid leave is

not eligible to receive holiday pay.

Paid Time Off (PTO) Policy

Eligibility: All Regular, Full-Time, Employees are eligible for Paid Time Off (PTO). Regular, Part-Time

Employees and Temporary Employees are not eligible for PTO.

Regular, Full-Time Employees will start accruing PTO on their start date; however, they may not use the PTO

until after 90 days of employment. Exceptions require approval of the President/CEO.

Procedure for Request: Employees should be respectful of peers and their team when scheduling time off

during peak vacation times and in other circumstances when business needs require their presence. Employees

should communicate with their team to ensure proper coverage while on leave. As customary, please provide

a minimum of two (2) weeks notice and preferably at least 30 days notice prior to your request for proposed

use of PTO, except in cases of illness or other personal situations. Documentation may be requested for

unplanned PTO days.


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A request should be sent via email to the employee’s manager. A quarterly PTO statement will be sent to the

employee and his/her manager. This should be reviewed for accuracy. In the event of a discrepancy, please

notify the manager immediately. Failure to accurately report PTO may result in deduction from your balance,

and could include disciplinary action, up to and including termination.

Pay for PTO Hours:

Exempt Employees. An exempt employee will receive his/her normal salary and PTO may be taken in

increments of four (4) hours (or half day).

Non-Exempt Employees. A non-exempt employee’s rate of pay for each hour of PTO will be equal to his/her

normal hourly rate and will be taken in one (1) hour increments.

Accrual: PTO accrues monthly based on years of service and renews annually on your anniversary date

according to the schedule below:

0 – 1 Years of Service 6.67 Hours per Month 10 Days per Year

2 – 5 Years of Service 10.00 Hours per Month 15 Days per Year

6+ Years of Service 13.33 Hours per Month 20 days per Year

No Advances. PTO cannot be used before it is accrued.

Roll-over of PTO Hours. To encourage employees to use PTO and maintain a work/life balance, PTO does

not roll-over after the end of the calendar year. If there are circumstances where the employee was unable to

take PTO, the President/CEO, in his sole discretion, may allow either partial or total rollover of the balance or

pay in lieu of the balance.

Pay in Lieu of PTO. Pay in lieu of PTO is allowed for up to 16 hours of the accrued balance upon the end of

the calendar year and any unused accrued PTO in excess of 16 hours will be forfeited at the end of the calendar

year.

Payment for Unused PTO Leave Upon Termination: If an employee’s employment with the Company

terminates for any reason, the employee will receive pay for unused accrued PTO in lieu of taking the unused

accrued PTO. Payment will be made on the next available paycheck, as administratively feasible.

Family & Medical Leave Policy

When Policy is in Effect: This policy will not be in effect unless the Company is a covered employer under

the federal Family and Medical Leave Act (the “FMLA”) as of the date when an employee requests leave

under this policy (“FMLA Leave”). In general, the Company is a covered employer under the FMLA if it has

employed at least 50 employees for each working day during each of 20 or more calendar workweeks in the

current or preceding calendar year.

Compliance with FMLA and Other Family Leave Laws. It is the intent of this policy to comply with the

FMLA and the U.S. Department of Labor’s FMLA regulations. In the case of a conflict with this policy and

the FMLA and the FMLA regulations, the FMLA and the FMLA regulations control. Where applicable state

or local family and medical leave laws offer more protections or benefits to employees, the protections or

benefits provided by such laws will apply. This policy is not to be construed to offer more benefits to

employees than the FMLA and applicable state or local family and medical leave laws require. Additional

information regarding the FMLA is found on the Department of Labor’s FMLA poster. A copy of the poster

is included as an Appendix to this Employee Handbook. The poster can also be found in the areas of the

Company premises where employment law posters are posted.


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Definitions. Most of the defined words and phrases used in this policy are set forth later in this policy, in a

separate section.

Eligible Employees. An employee is eligible to take FMLA Leave and to be restored to the same position or

to an equivalent position upon returning from FMLA Leave if the employee satisfies the following conditions:

(a) The employee has worked for the Company for at least twelve (12) months, measured as of

the date the requested FMLA Leave is to begin;

(b) The employee has worked for the Company for at least one thousand two-hundred fifty (1,250)

hours in the last twelve (12) months, measured as of the date the requested FMLA Leave is to begin;

and

(c) The employee is employed at a Company worksite that has fifty (50) or more employees

within a seventy-five (75) mile radius, measured as of the date FMLA Leave is requested.

(d) Such an employee is referred to in this policy as an “Eligible Employee.”

For purposes of determining whether the employee has worked for the Company for at least twelve (12)

months, employment periods prior to a break in service of at least seven (7) years are not counted, unless an

exception in the FMLA regulations (such as for USERRA-covered service) requires some or all of that prior

employment to be counted.

Notifications to Employees by the Company.

(a) Notification of Eligibility. When an employee files a request for FMLA Leave, the Company

will notify the employee as to whether he/she is an Eligible Employee within five (5) business days of

the date of such request. If the requesting employee is an Eligible Employee, the notice from the

Company will notify him/her of any additional information that the FMLA requires to be provided to

Eligible Employees, including written information regarding his/her rights and responsibilities under

the FMLA. If the employee is not an Eligible Employee, the notice from the Company will notify the

employee of the reason(s) for ineligibility.

(b) Status of Requested Leave. The Company will inform an Eligible Employee as to whether

the requested leave is FMLA Leave and, if so, the amount of FMLA Leave that will be counted against

the FMLA Leave entitlement. If the Company determines that the requested leave is not FMLA Leave,

it will notify the Eligible Employee that the request does not qualify as FMLA Leave.

Entitlement for 12-Week FMLA Leave. An Eligible Employee may take up to 12 weeks of unpaid FMLA

Leave within any 12-month period (as that period is described in section bellow describing Rolling 12-Month

Period) and is entitled to be restored to the same position or to an equivalent position upon returning from

FMLA Leave for any of the following reasons:

(a) Birth. For the birth of the Eligible Employee’s Son or Daughter and in order to care for such

newborn Son or Daughter;

(b) Adoption or Foster Care Placement. For the placement of a Son or Daughter with the

Eligible Employee for adoption or foster care;

(c) Serious Health Condition of Family Member. To care for the Eligible Employee’s Spouse,

Son or Daughter, or Parent with a Serious Health Condition;


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(d) Employee’s Own Serious Health Condition. Because of the Eligible Employee’s own

Serious Health Condition which makes the Eligible Employee Unable to Perform the Functions of the

Job; or

(e) Qualifying Exigency. Because of “any qualifying exigency” arising out of the fact that an

Eligible Employee’s Spouse, Son or Daughter, or Parent is a military member on Covered Active Duty

(or has been notified of an impending call or order to Covered Active Duty). Qualifying exigencies

include short-notice deployment, attending certain military events and related events, certain childcare

and school activities, addressing certain financial and legal arrangements, attending certain counseling

sessions, to spend time with the military member who is on short-term, temporary rest and recuperation

leave while deployed, attending post-deployment reintegration briefings, and certain types of parental

care.

Expiration of Entitlement for Birth, Adoption, or Foster Care Placement. Entitlement to FMLA Leave

because of the reasons set forth as described above (i.e., birth, adoption, or foster care placement) expires

twelve (12) months after the date of birth, adoption, or foster care placement.

Rule for Spouses who are Co-Workers. Spouses employed by the Company who request FMLA Leave

because of the reasons set forth above (i.e., birth, adoption, or foster care placement) or to care for a Parent

due to the Parent’s Serious Health Condition may only take a combined total of 12 weeks of FMLA Leave

during any 12-month period.

Rolling 12-Month Period for 12-Week FMLA Leave. The Company will measure the 12-month period

during which the 12 weeks of FMLA Leave may be taken as a rolling 12-month period measured backward

from the date an Eligible Employee uses any 12-week FMLA Leave under this policy. Each time an Eligible

Employee takes FMLA Leave, the Company will compute the amount of 12-week FMLA Leave the Eligible

Employee has taken under this policy and subtract it from the amount of available 12-week FMLA Leave. The

balance of 12-week FMLA Leave remaining is the amount that the Eligible Employee is entitled to take at that

time.

Entitlement for 26-Week Military Caregiver Leave. An Eligible Employee who is the Spouse, Son or

Daughter, Parent, or Next of Kin of a Covered Servicemember with a Serious Injury or Illness may take up to

twenty-six (26) weeks of FMLA Leave during a single 12-month period (as that period is described below) to

care for the Covered Servicemember. This type of FMLA Leave is referred to in this Policy as “Military

Caregiver Leave.”

12-Month Period for 26-Week Military Caregiver Leave. The 12-month period during which the twenty-

six (26) weeks of Military Caregiver Leave may be taken begins on the first day the Eligible Employee takes

Military Caregiver Leave and ends twelve (12) months after that date.

Maximum Combined FMLA Leave. The maximum combined amount of FMLA Leave (including FMLA

Leave subject to the 12-week limitation) that may be taken during a single 12-month period is twenty-six (26)

weeks.

Notice of Leave to the Company.

(a) Notice for Foreseeable Need (but not Qualifying Exigency). If an Eligible Employee’s need

for FMLA Leave (for reasons other than a qualifying exigency) is foreseeable, the Eligible Employee

must give the Company at least thirty (30) days’ prior written notice.

(b) Notice for Foreseeable Need (Qualifying Exigency). For foreseeable FMLA Leave due to

any qualifying exigency, the Eligible Employee must give the Company notice as soon as practicable,

regardless of how far in advance such FMLA Leave is foreseeable.


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(c) Effect of Failure to Provide Notice. Failure to provide the required notice for foreseeable

FMLA Leave may be grounds for delay of FMLA Leave.

(d) Notice for Unforeseeable Need. Where the need for FMLA Leave is not foreseeable, the

Eligible Employee is expected to notify the Company as soon as practicable after learning of the need

for the FMLA Leave.

(e) FMLA Forms Required. All requests for FMLA Leave must be made on forms approved by

the Company. Employees must contact the HR Administrator to obtain the forms.

(f) Sufficiency of the Notice. As part of the notice, Eligible Employees must provide sufficient

information for the Company to reasonably determine if the requested leave qualifies as FMLA Leave

and as to the anticipated timing and duration of the FMLA Leave. Sufficient information may include

that the Eligible Employee is Unable to Perform the Functions of the Job, the employee is pregnant or

has been hospitalized overnight, a family member is unable to perform daily activities, the need for

hospitalization or Continuing Treatment by a Health Care Provider, or circumstances supporting the

need for Military Caregiver Leave. Employees must also inform the Company if the requested leave

is for a reason for which FMLA Leave was previously taken or certified.

Medical Certification.

(a) When Medical Certification is Required. Subject to the Punctuality and Attendance Policy

in this Employee Handbook, if an Eligible Employee is requesting FMLA Leave because of the

Eligible Employee’s own Serious Health Condition, because of a Serious Health Condition of the

Eligible Employee’s Spouse, Son or Daughter, or Parent, or because of Military Caregiver Leave, the

Eligible Employee and the relevant Health Care Provider must supply appropriate medical

certification.

(b) Notice from the Company of Need for Medical Certification. Within five (5) business days

after a request for FMLA Leave is made by an Eligible Employee, the Company will notify him/her

of (i) the requirement for medical certification and (ii) the date when the certification is due (which

must be at least fifteen (15) days after the Eligible Employee receives the notice of the medical

certification requirement).

(c) Effect of Failure to Provide Medical Certification. An employee’s failure to provide

requested medical certification in a timely manner may result in delay or denial of FMLA Leave or of

a continuation of FMLA Leave until it is provided. It is an employee’s responsibility to ensure that

his/her Health Care Provider accurately, completely, and timely completes and returns to the Company

any medical certification requested by the Company.

(d) Second and Third Opinions. The Company, at its expense, may require an examination by

a second Health Care Provider designated by the Company, if it has reason to doubt the medical

certification initially provided by the Eligible Employee. If the second Health Care Provider’s opinion

conflicts with the original medical certification, the Company, at its expense, may require a third,

mutually agreeable, Health Care Provider to conduct an examination and provide a final and binding

opinion. If the Company decides not to require a third certification, the Eligible Employee is entitled

to FMLA benefits. Pending receipt of the second or third medical certification, the Eligible Employee

is provisionally entitled to FMLA benefits. Second and third certifications are not available for

Military Caregiver Leave if the original certification came from a Health Care Provider with the

Department of Defense or the Department of Veteran Affairs or through a Health Care Provider

authorized by TRICARE.


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(e) Recertification. For non-Military Caregiver Leave, the Company may require subsequent

medical recertification at the Eligible Employee’s expense, but not more often than the FMLA allows.

(f) Use Company-approved Forms. All medical certifications and re-certifications required by

this policy must be submitted to the Company by the Eligible Employee using the forms approved by

the Company. Employees must contact the HR Administrator Department to obtain the forms.

Certification for FMLA Leave Due to a Qualifying Exigency. An Eligible Employee requesting FMLA

Leave due to a qualifying exigency must provide certification using the form available from the HR

Administrator.

Reporting While on FMLA Leave. If an Eligible Employee takes FMLA Leave because of the Eligible

Employee’s own Serious Health Condition or because of the Serious Health Condition of the Eligible

Employee’s Spouse, Son or Daughter, or Parent, the Eligible Employee must contact the Company as directed

by the Human Resources Department, regarding the status of the condition and the Eligible Employee’s

intention to return to work, unless a different reporting schedule is necessary and reasonable due to the

circumstances of the FMLA Leave.

Need for More or Less FMLA Leave. If the Eligible Employee needs to take more or less FMLA Leave than

previously anticipated, he/she must notify the Company within two (2) business days after learning of the need

for the change in the amount of FMLA Leave.

Paid and Unpaid Leave. Depending on whether other types of leave are taken concurrently during FMLA

Leave, FMLA Leave may be paid or unpaid, as set forth below. However, the use of paid leave during FMLA

Leave does not extend the 12-week (or 26-week, if applicable) FMLA Leave period.

(a) General Rule – Unpaid Leave. FMLA Leave is unpaid, although an Eligible Employee may

be eligible for disability payments and/or workers’ compensation benefits under those insurance plans.

(b) Exception – PTO. If an Eligible Employee is on FMLA Leave, any accrued, unused paid

PTO must be used concurrently with the FMLA Leave.

Medical and Other Benefits. During an approved FMLA Leave, the Company will maintain the Eligible

Employee’s group health plan benefits, as if the Eligible Employee continued to work during the entire FMLA

Leave period.

(a) Payment for Group Health Plan Premiums While on Paid Leave. To the extent that paid

leave is used during FMLA Leave, the Company will deduct the Eligible Employee’s portion of the

group health plan premiums as a regular payroll deduction.

(b) Payment for Group Health Plan Premiums While on Unpaid Leave. To the extent that

paid leave is not used during FMLA Leave, the Company will pay the Eligible Employee’s portion of

the group health plan premiums, and the Eligible Employee must reimburse the Company for the

premiums within 30 days of the time the premiums normally would have been deducted from payroll.

The Company may cancel an Eligible Employee’s coverage under a group health plan if the Eligible

Employee’s reimbursement for premium payment is more than 30 days late, subject to the terms and

conditions of the group health plan.

(c) Reimbursement if No Return to Work. If an Eligible Employee elects not to return to work

at the end of the FMLA Leave period, the Eligible Employee will be required to reimburse the

Company for the cost of the group health insurance premiums paid by the Company for maintaining

coverage during the FMLA Leave, unless the reason the Eligible Employee does not return to work is

one of the following: (i) The continuation, recurrence, or onset of a Serious Health Condition of his/her


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own or of a Spouse, Son or Daughter, or Parent or the Serious Injury or Illness of a Covered

Servicemember that would otherwise entitle the Eligible Employee to FMLA Leave; or (ii) Other

circumstances beyond his/her control. In the event that the failure to return to work is due to a Serious

Health Condition or the Serious Injury or Illness of a Covered Servicemember, the Company may

request medical certification of the Serious Health Condition. The Eligible Employee is required to

provide medical certification to management within thirty (30) days from the date of the Company’s

request. If the requested medical certification is not timely provided or does not establish a Serious

Health Condition or a Serious Injury or Illness of a Covered Servicemember, the Company may

recover 100% of its portion of the group health plan premiums it paid during the period of unpaid

FMLA Leave.

(d) Payment of Premiums for Other Benefits. The Company may elect to maintain an Eligible

Employee’s benefits other than group health plan coverage by paying the Eligible Employee’s share

of premiums during periods of unpaid FMLA Leave. At the conclusion of FMLA Leave, whether or

not the Eligible Employee returns to work, the Company is entitled to recover only the costs incurred

for paying the Eligible Employee’s share of any such premiums.

Exemption for Key Employees. A salaried Eligible Employee who is among the highest paid 10% of

employees at the Eligible Employee’s worksite or within a seventy-five (75) mile radius of that worksite may

not be returned to their former or equivalent position following FMLA Leave if restoration of employment

will cause substantial and grievous economic injury to the Company. The Company will notify an Eligible

Employee if he/she qualifies as a “key employee,” if the Company intends to deny reinstatement, and of the

Eligible Employee’s rights in such instances.

Intermittent and Reduced Schedule Leave. FMLA Leave may be taken intermittently (in separate blocks of

time due to a single condition) or on a reduced leave schedule (reducing the usual number of hours worked per

workweek or workday), as follows:

(a) By Agreement. When FMLA Leave is taken because of the birth of a Son or Daughter or

placement of a Son or Daughter for adoption or foster care, an Eligible Employee may take FMLA

Leave intermittently or on a reduced leave schedule only if the Company agrees.

(b) Mandatory if Requested by Employee. Military Caregiver Leave and FMLA Leave because

of a Serious Health Condition or a qualifying exigency may be taken intermittently (in separate blocks

of time due to a single health condition) or on a reduced leave schedule (reducing the usual number of

hours worked per workweek or workday) in the following circumstances: (i) When medically

necessary for planned and/or unanticipated medical treatment of a Serious Health Condition or a

Serious Injury or Illness of a Covered Servicemember; (ii) When medically necessary for recovery

from treatment or recovery from a Serious Health Condition or Serious Injury or Illness of a Covered

Servicemember; or (iii) To provide care or psychological comfort to a Spouse, Son or Daughter, or

Parent with a Serious Health Condition or to a Covered Servicemember with a Serious Injury or

Illness.

(c) Reduction of Salary for Exempt Employees. If unpaid intermittent or reduced schedule

FMLA is taken by an exempt employee, the Company is entitled to reduce the Eligible Employee’s

salary based on the amount of time actually worked.

(d) Alternative Position. During intermittent or reduced schedule FMLA Leave, the Company

may temporarily transfer an Eligible Employee from his/her normal position to an alternative position

for which he/she is qualified. However, as compared to the normal position, the alternative position

must better accommodate the recurring FMLA Leave and have equivalent pay and benefits.


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(e) Usage. When intermittent or reduced schedule FMLA Leave is used, the Company will not

require an Eligible Employee to take more FMLA Leave than necessary to address the circumstances

that precipitated the need for the leave, nor will the Company count any time actually worked by an

Eligible Employee against his/her FMLA Leave allotment.

Fitness-for-Duty Certification Required. Before an Eligible Employee on FMLA Leave because of his/her

own Serious Health Condition may return to work, a fitness-for-duty certification from his/her Health Care

Provider is required. The Company does not require that such certification be made on a particular form.

However, the certification must be in writing and must certify that the employee is able to resume work.

Additionally, the Company may require that the certification specifically address the Eligible Employee’s

ability to perform the essential functions of his/her job.

Definitions. In addition to the words and phrases defined earlier in the policy, where the following words and

phrases appear in the Policy, they shall have the respective meanings as set forth in this Section, unless the

context clearly indicates otherwise. Where the defined meaning is intended, the term is capitalized. These

definitions come from the Department of Labor’s FMLA regulations. In the event that the definitions in those

regulations are amended, these definitions shall automatically be amended.

(a) “Chronic Serious Health Condition” means a Serious Health Condition which (i) requires

periodic visits (at least twice a year) for treatment by a Health Care Provider, or by a nurse under direct

supervision of a Health Care Provider; (ii) continues over an extended period of time (including

recurring episodes of a single underlying condition); and (iii) may cause episodic rather than a

continuing period of incapacity (e.g., asthma, diabetes, epilepsy, etc.).

(b) “Continuing Treatment by a Health Care Provider” means any one or more of the

following: (i) a period of incapacity of more than three (3) consecutive full calendar days, and any

subsequent treatment or period of incapacity relating to the same condition that also involves (a)

treatment two (2) or more times, within thirty (30) days of the first day of incapacity (unless

extenuating circumstances exist) by a Health Care Provider, a nurse under direct supervision of a

Health Care Provider, or a provider of health care services (e.g., physical therapist) under orders of,

or on referral by, a Health Care Provider or (b) treatment by a Health Care Provider on at least one

occasion that results in a regimen of continuing treatment under the supervision of the Health Care

Provider; (ii) any period of incapacity due to pregnancy or for prenatal care; (iii) any period of

incapacity or treatment for such incapacity due to a Chronic Serious Health Condition; (iv) a period

of incapacity which is permanent or long-term due to a condition for which treatment may not be

effective and for which the Eligible Employee or family member must be under the continuing

supervision of, but need not be receiving active treatment by, a Health Care Provider (e.g.,

Alzheimer’s, a severe stroke, or the terminal stages of a disease); or (iv) any period of absence to

receive multiple treatments (including any period of recovery therefrom) by a Health Care Provider or

by a provider of health care services under orders of, or on referral by, a Health Care Provider, either

for restorative surgery after an accident or other injury, or for a condition that would likely result in a

period of incapacity of more than three (3) consecutive full calendar days in the absence of medical

intervention or treatment, such as cancer (chemotherapy, radiation, etc.), severe arthritis (physical

therapy), or kidney disease (dialysis).

(c) “Covered Active Duty or Call to Covered Active Duty Status” means (i) in the case of a

member of the Regular Armed Forces, duty during the deployment of the member with the Armed

Forces to a foreign country and (ii) in the case of a member of the Reserve Components of the Armed

Forces, duty during the deployment of the member with the Armed Forces to a foreign country under

a Federal call or order to active duty in support of a contingency operation pursuant to: Section 688 of

Title 10 of the United States Code, which authorizes ordering to active duty retired members of the

Regular Armed Forces and members of the retired Reserve who retired after completing at least 20

years of active service; Section 12301(a) of Title 10 of the United States Code, which authorizes


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ordering all reserve component members to active duty in the case of war or national emergency;

Section 12302 of Title 10 of the United States Code, which authorizes ordering any unit or unassigned

member of the Ready Reserve to active duty; Section 12304 of Title 10 of the United States Code,

which authorizes ordering any unit or unassigned member of the Selected Reserve and certain

members of the Individual Ready Reserve to active duty; Section 12305 of Title 10 of the United

States Code, which authorizes the suspension of promotion, retirement or separation rules for certain

Reserve Components of the Armed Forces; Section 12406 of Title 10 of the United States Code, which

authorizes calling the National Guard into Federal service in certain circumstances; chapter 15 of Title

10 of the United States Code, which authorizes calling the National Guard and state military into

Federal service in the case of insurrections and national emergencies; or any other provision of law

during a war or during a national emergency declared by the President or Congress so long as it is in

support of a contingency operation.

(d) “Covered Servicemember” means (i) a member of the Armed Forces (including a member

of the National Guard or Reserves) who is undergoing medical treatment, recuperation, or therapy, is

otherwise in Outpatient Status, or is otherwise on the temporary disability retired list, for a Serious

Injury or Illness or (ii) a Covered Veteran who is undergoing medical treatment, recuperation, or

therapy for a Serious Injury or Illness.

(e) “Covered Veteran” means a person who was a member of the Armed Forces (including a

member of the National Guard or Reserves) and was discharged or released under conditions other

than dishonorable at any time during the five-year period prior to the first date the Eligible Employee

takes FMLA Leave to care for the Covered Veteran.

(f) “Health Care Provider” means one of the following: (i) a doctor of medicine or osteopathy

who is authorized to practice medicine or surgery by the state in which the doctor practices; (ii) a

podiatrist, dentist, clinical psychologist, optometrist, or chiropractor (limited to treatment consisting

of manual manipulation of the spine to correct a subluxation as demonstrated by X-ray to exist) who

is authorized to practice in the state and performing within the scope of their practice as defined under

state law; (iii) a nurse practitioner, nurse-midwife, clinical social worker, or physician assistant who

is authorized to practice under state law and who is performing within the scope of their practice as

defined under state law; (iv) a Christian Science practitioner listed with the First Church of Christ,

Scientist in Boston, Massachusetts; (v) a health care provider from whom the Company or its group

health plan’s benefits manager will accept certification of the existence of a Serious Health Condition

to substantiate a claim for benefits; or (vi) a Health Care Provider as defined above in (i) through (v)

who practices in a country other than the United States and is licensed to practice in accordance with

the laws and regulations of that country.

(g) “Next of Kin” means, with respect to a Covered Servicemember, the nearest blood relative

of that individual, other than the Covered Servicemember’s Spouse, Parent, Son, or Daughter, in the

order of priority established by the FMLA regulations.

(h) “Outpatient Status” means, with respect to a Covered Servicemember who is a current

member of the Armed Forces, the status of a member of the Armed Forces assigned to a military

medical treatment facility as an outpatient or to a unit established for the purpose of providing

command and control of members of the Armed Forces receiving medical care as outpatients.

(i) “Parent” means the biological, adoptive, step, or foster father or mother of an Eligible

Employee or any other individual who stands or stood in loco parentis to an Eligible Employee when

the Eligible Employee was a Son or Daughter.

(j) “Reserve Components of the Armed Forces” includes, for purposes of qualifying exigency

leave, the Army National Guard of the United States, Army Reserve, Navy Reserve, Marine Corps


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Reserve, Air National Guard of the United States, Air Force Reserve, and Coast Guard Reserve, and

retired members of the Regular Armed Forces or Reserves who are called up in support of a

contingency operation.

(k) “Serious Health Condition” means an illness, injury, impairment, or physical or mental

condition that involves: (i) any incapacity or treatment in connection with inpatient care or (ii)

Continuing Treatment by a Health Care Provider.

(l) “Serious Injury or Illness” means: (i) In the case of a current member of the Armed Forces,

including a member of the National Guard or Reserves, an injury or illness that was incurred by the

Covered Servicemember in the line of duty on active duty in the Armed Forces or that existed before

the beginning of the member’s active duty and was aggravated by service in the line of duty on active

duty in the Armed Forces and that may render the Servicemember medically unfit to perform the duties

of the member’s office, grade, rank, or rating; and (ii) In the case of a Covered Veteran, an injury or

illness that was incurred by the member in the line of duty on active duty in the Armed Forces (or

existed before the beginning of the member’s active duty and was aggravated by service in the line of

duty on active duty in the Armed Forces) and manifested itself before or after the member became a

veteran, and is: (a) A continuation of a Serious Injury or Illness that was incurred or aggravated when

the Covered Veteran was a member of the Armed Forces and rendered the Servicemember unable to

perform the duties of the Servicemember’s office, grade, rank, or rating; or (b) A physical or mental

condition for which the Covered Veteran has received a U.S. Department of Veterans Affairs Service-

Related Disability Rating (VASRD) of 50 percent or greater, and such VASRD rating is based, in

whole or in part, on the condition precipitating the need for Military Caregiver Leave; or (c) A physical

or mental condition that substantially impairs the Covered Veteran’s ability to secure or follow a

substantially gainful occupation by reason of a disability or disabilities related to military service, or

would do so absent treatment; or (d) An injury, including a psychological injury, on the basis of which

the Covered Veteran has been enrolled in the Department of Veterans Affairs Program of

Comprehensive Assistance for Family Caregivers.

(m) “Son or Daughter” means the biological, adopted, or foster child, stepchild, legal ward, or a

child of a person standing in loco parentis, who is either under age 18 or is age 18 or older but incapable

of self-care because of a mental or physical disability at the time that FMLA Leave is to commence.

However, for purposes of determining whether a person is a Son or Daughter of a Covered

Servicemember or is a Covered Servicemember, the age of the person is irrelevant.

(n) “Spouse” means a husband or wife as defined or recognized under state law for purposes of

marriage in the state where the Eligible Employee resides, including common law marriage in states

where it is recognized.

(o) “Unable to Perform the Functions of the Job” means an Eligible Employee is: (i) unable to

work at all; or (ii) unable to perform any of the essential functions of his/her position. The term

“essential functions” is borrowed from the Americans with Disabilities Act to mean “the fundamental

job duties of the employment position” and does not include the marginal functions of the position.

Jury Duty & Court Appearances Policy

Purpose. The Company desires that its employees fulfill their civic duties when called for mandatory jury

duty and mandatory court appearances as a witness. In order to assist employees in maintaining uninterrupted

income, the Company has developed this Jury Duty & Court Appearances Policy.

Notification of the Company. It is an employee’s responsibility to notify the employee’s supervisor as soon

that he/she is summoned for mandatory jury duty or is required by court order or subpoena to appear as a


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witness in a court proceeding by providing a copy of the jury summons, court order, or subpoena to the

employee’s supervisor.

Time Off. The Company shall grant every employee time off for mandatory jury duty and mandatory court

appearances as a witness. However, this policy does not provide any time off for court appearances as a party

to civil or criminal litigation or for any non-mandatory court appearances. If an employee is required to serve

jury duty beyond the period of paid jury duty leave, he/she may use any available paid time off or may request

an unpaid jury duty leave of absence.

Compensation Supplement. The Company shall pay any Regular, Full-Time Employees their normal

wages for each day of time off for mandatory jury duty (the “Compensation Supplement”), up to a total of

(5) five days per calendar year. Jury duty pay will be calculated based on the employee’s base rate times the

number of hours the employee would otherwise have worked on the day of absence. However, an employee

shall not receive any Compensation Supplement unless he/she first submits appropriate documentation to the

Company as to the amount of mandatory jury duty. In accordance with FLSA regulations, exempt employees

will be paid for a full work week for any week in which the employee works in addition to jury duty.

Reporting for Work. It is the employee’s responsibility to keep his/her supervisor informed about the amount

of time required for jury duty or court appearances as a witness and to notify his/her supervisor if court

obligations conclude before the end of the workday. If court obligations conclude before the end of a workday,

an employee’s supervisor may require the employee to report to work for the remainder of the workday.

Requests to be Excused from Jury Duty. Upon the request of the Company, an employee must ask the

court to be excused from jury duty or to serve at a more convenient time for the Company. Such a request will

only be made only if it appears that the employee’s absence from work would materially disrupt the Company’s

business activities.

Discipline. The Company will not terminate, threaten to terminate, intimidate, or coerce any employee by

reason of such employee’s mandatory jury duty or mandatory court appearances as a witness, or the attendance

or scheduled attendance in court in connection with such duty. However, an employee’s violation of this policy

may subject the employee to discipline, up to and including termination of employment.

Military Leave Policy

Purpose. This Military Leave Policy is established to explain some of the rights and obligations of the

Company and its employees under the Uniformed Services Employment and Reemployment Rights Act of

1994 (“USERRA”).

NOTE: USERRA is a complicated law with many different rules. This policy is intended to agree in every

aspect with USERRA and its regulations. However, this policy does not attempt to explain every rule, and

some of the rules in this policy have been simplified, with important details left out. If this policy and USERRA

conflict, USERRA controls.

Definitions. Where the following words and phrases appear in this policy, they shall have the respective

meanings as set forth below, unless the context clearly indicates otherwise. Where the defined meaning is

intended, the term is capitalized.

(a) “Uniformed Services” means the following: the Armed Forces; the Army National Guard

and the Air National Guard when engaged in active duty for training; full-time National Guard duty;

the Commissioned corps of the Public Health Services; any category of persons designated by the

President of the United States in time of war or national emergency; and an intermittent disaster


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response appointee of the National Disaster Medical System when federally activated or attending

authorized training support of their Federal mission.

(b) “Service in the Uniformed Services” means the performance of duty on a voluntary or

involuntary basis in a uniformed service under competent authority, and includes the following: active

duty; active and inactive duty for training; National Guard duty under Federal statute; absence from

employment for an examination to determine the fitness of the person to perform duty in the

Uniformed Services; absence from employment to perform funeral honors duty as authorized by law

(10 U.S.C. 12503 or 32 U.S.C. 115); and absence from employment to serve as an intermittent disaster-

response appointee upon activation of the National Disaster Medical System (“NDMS”) or as a

participant in an authorized training program for the NDMS.

Protection from Discrimination. USERRA provides protection from discrimination.

(a) General Rule. The Company does not deny initial employment, reemployment, retention in

employment, promotion, or any benefit of employment to any person on the basis of his/her

membership, application for membership, performance of Service, application for Service, or

obligation for Service in the Uniformed Services.

(b) Retaliation Prohibited. The Company does not retaliate by taking any adverse employment

action against anyone who has taken an action to enforce a protection afforded under USERRA, made

a statement in or in connection with a USERRA proceeding, assisted, or participated in a USERRA

investigation, or exercised a USERRA right.

(c) Reporting Requirement. A violation of paragraph (a) or (b) above can also a violation of the

Policy Prohibiting Harassment, Discrimination, & Retaliation in this Employee Handbook. Therefore,

any employee who perceives that he/she or another person is being discriminated against in violation

of paragraph (a) or being retaliated against in violation of paragraph (b) is required to make a report

pursuant to the Complaint Procedure set forth in the Prohibition of Harassment, Discrimination, &

Retaliation Policy.

General Rights. Except as provided elsewhere in this policy, USERRA establishes the following general

rights:

(a) Right to Continuing Health Plan Coverage. The Company will allow an employee in

Service in the Uniformed Services to continue employment-based health plan coverage for the

employee and his/her dependents for a limited time.

(b) Right to Reemployment. The Company will reemploy a person serving in the Uniformed

Services upon the completion of that person’s Service in the Uniformed Services.

(c) Right to Lost Benefits. If the Company rehires a person pursuant to this policy, it will also

restore rights and benefits that were lost due to the Service in the Uniformed Services.

Notice of Uniformed Service. Employees must provide advance notice of Service in the Uniformed Services

to the Company. Such notice may be either written or oral. It may be provided by the employee or by an

appropriate officer of the branch of the Uniformed Services in which the employee will be serving.

Length of Absence. The cumulative length of absence of an employee to serve in the Uniformed Services

may not exceed five (5) years, except as otherwise provided in USERRA.

Reporting to Work / Applying for Reemployment. A person returning from Service in the Uniformed

Services must do the following in order to exercise his/her reemployment rights under USERRA:


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(a) Absence of 30 days or less. If the absence from work was from 1 to 30 days, the person must

report to the Company by the beginning of the first regularly scheduled workday that would fall eight

hours after the person returns home from Service in the Uniformed Services.

(b) Absence of 31 to 180 days. If the absence from work was from 31 to 180 days, the person

must apply for reemployment no later than 14 days following completion of Service in the Uniformed

Services.

(c) Absence of greater than 180 days. If the absence from work was greater than 180 days, the

person must apply for reemployment no later than 90 days following completion of Service in the

Uniformed Services.

Reemployment Position. The reemployment position will be determined according to the provisions of

USERRA.

Required Documentation. The Company may request that a person who is absent for a period of Service in

the Uniformed Services of 31 days or more document the period of military service to show the following:

(a) That the application for reemployment was timely;

(b) That the person has not exceeded the five-year limitation; and

(c) That the person’s character of service was honorable.

Where a person is absent for 91 days or more, the Company may delay making retroactive pension

contributions until the person submits satisfactory documentation.

Mandatory Retention Period. If the period of Service in the Uniformed Services was more than 180 days,

the Company will not discharge the employee within one year of reemployment, except for cause. If the period

of Service was less than 181 days but more than 30 days, the Company will not discharge the employee within

180 days of reemployment, except for cause. For employees with less than 31 days of Service, a mandatory

retention period does not apply.

Exceptions to Reemployment Requirement. The Company is not required to reemploy a returning employee

under the following circumstances:

(a) Impossible or Unreasonable. The employer’s circumstances have so changed as to make

reemployment impossible or unreasonable;

(b) Undue Hardship. Assisting the employee in becoming qualified for reemployment would

cause undue hardship for the employer; or

(c) Short-Term Job. The employment position was for a brief, non-recurrent period and there

was no reasonable expectation that such employment will continue indefinitely or for a significant

period.

Right to Continuing Health Plan Coverage. If an employee providing Service in the Uniformed Services

had Company-provided Health Plan coverage prior to such Service, the plan permits the employee to continue

the coverage during the period of Service.

(a) “Health Plan”. The definition of “health plan” is very broad and covers almost any employer

arrangement that provides for or pays the expenses of an employee’s health services.


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(b) Election by Employee. An employee must elect to continue his/her Health Plan coverage.

However, retroactive reinstatement of coverage is required under certain circumstances.

(c) Time Limit. The maximum period of continued coverage is the lesser of 24 months or the

period of the employee’s Service in the Uniformed Services.

(d) Payment for Coverage. The Company can require the employee to pay no more than the

employee’s share if the Service period is less than 31 days but can require the employee to pay up to

102% of the full premium for longer periods of Service in the Uniformed Services.

(e) New coverage. USERRA does not require the Company to institute health plan coverage

simply because an employee is providing Service in the Uniformed Services.

Bereavement Leave Policy Purpose. The Company understands its employees’ needs for time off when a loved one dies. In order to assist

employees in maintaining uninterrupted income during these absences from work, the Company has developed

this Bereavement Leave Policy.

Amount of Bereavement Leave. All Regular, Full-Time Employees shall receive three (3) consecutive days

off work, at the normal rate of pay, in the event of the death of an Immediate Family Member. “Immediate

Family Member” means the employee’s spouse, parent, or child, sibling, or grandparent, whether by blood,

marriage, or adoption (including mother-in-law, father-in-law, brother-in-law, and sister-in-law).

Additional Leave. An employee who is otherwise eligible for paid leave under other Company policies may

request leave under such policies in addition to leave under this policy. At the Company’s discretion, an

employee may be allowed additional paid or unpaid bereavement leave in the event of the death of an

Immediate Family Member, a co-worker, or someone else.

Notification to the Company. An employee must notify his/her supervisor as soon as possible of the need for

bereavement leave and of the anticipated length of absence. At the Company’s discretion, an employee may

be required to provide evidence of the need for bereavement leave.

Natural Disaster/Other Office Closures

Emergencies, such as severe weather, fires, power failures or earthquakes, or for other reasons, can disrupt

Company operations. In some cases, these circumstances may require the closing of the Company’s operations

or those of the Company’s clients. If the Company’s operations or those of the Company’s clients are closed

due to an emergency, non-exempt employees will not be paid for the time when the location where they work

or are assigned is closed. If the Company’s location or those of its clients are open, employees should use

their own judgment for personal safety and may use available PTO (if applicable) or an unpaid, excused

absence. Exempt employees should contact the President/CEO regarding when payment will be made when

the Company is closed.

SECTION V: INFORMATION TECHNOLOGY POLICIES

Computer Equipment and Email Usage

Computers, computer files, the email system, software and any other mobile device including smart phones or

tablets furnished to employees are AK property intended for business use. Employees should not use a

password, access a file, or retrieve any stored communication without authorization. To ensure compliance


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with this policy, computer, Internet, and email usage may be monitored, with or without notice to employees.

Employees have no right of privacy or expectation of a right to privacy in any of these systems or equipment.

AK strives to maintain a workplace free of harassment and sensitive to the diversity of its employees.

Therefore, AK prohibits the use of computers and the email system in ways that are disruptive, offensive to

others, or harmful to morale.

For example, the display or transmission of sexually explicit images, messages, and cartoons is not allowed.

Other such misuse includes, but is not limited to, ethnic slurs, racial comments, inappropriate jokes, or anything

that may be construed as harassment or showing disrespect for others.

Email may not be used to solicit others for commercial ventures, religious or political causes, outside

organizations, or other non-business matters.

AK purchases and licenses the use of various computer software for business purposes and does not own the

copyright to this software or its related documentation. Unless authorized by the software developer, AK does

not have the right to reproduce such software for use on more than one computer.

Employees may only use software on local area networks or on multiple machines according to the software

license agreement. AK prohibits the illegal duplication of software and its related documentation.

Internet Usage

Internet access to global electronic information resources is provided by AK to assist employees in obtaining

work-related data and technology. The following guidelines have been established to help ensure responsible

and productive Internet usage. While Internet usage is intended for job-related activities, incidental and

occasional brief personal use is permitted within reasonable limits.

All Internet data that is composed, transmitted, or received via our computer communications systems and is

considered to be part of the official records of AK and, as such, is subject to disclosure to law enforcement or

other third parties. Consequently, employees should always ensure that the business information contained in

Internet email messages and other transmissions is accurate, appropriate, ethical, and lawful.

The equipment, services, and technology provided to access the Internet remain AK property at all times the

property of AK. As such, AK reserves the right to monitor Internet traffic, and retrieve and read any data

composed, sent, or received through our online connections and stored in our computer systems. Data that is

composed, transmitted, accessed, or received via the Internet must not contain content that could be considered

discriminatory, offensive, obscene, threatening, harassing, intimidating, or disruptive to any employee or other

person. Examples of unacceptable content may include, but are not limited to, sexual comments or images,

racial slurs, gender-specific comments, or any other comments or images that could reasonably offend

someone on the basis of race, age, sex, religious or political beliefs, national origin, disability, or any other

characteristic protected by applicable law.

The unauthorized use, installation, copying, or distribution of copyrighted, trademarked, or patented material

on the Internet is expressly prohibited. As a general rule, if an employee did not create material, does not own

the rights to it, or has not obtained authorization for its use, it should not be put on the Internet. Employees are

also responsible for ensuring that the person sending any material over the Internet has the appropriate

distribution rights.

To ensure a virus-free environment, no files may be downloaded from the Internet without prior authorization.

Abuse of the Internet access provided by AK in violation of law or AK policies will result in disciplinary

action, up to and including termination of employment. Employees may also be held personally liable for any


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violations of this policy. The following behaviors are examples of previously stated or additional actions and

activities that are prohibited and can result in disciplinary action, up to and including termination:

• Sending or posting discriminatory, harassing, or threatening messages or images

• Using the organization's time and resources for personal gain

• Stealing, using, or disclosing someone else's code or password without authorization

• Copying, pirating, or downloading software and electronic files without permission

• Sending or posting confidential material, trade secrets, or proprietary information outside of the

organization

• Violating copyright law

• Failing to observe licensing agreements

• Engaging in unauthorized transactions that may incur a cost to the organization or initiate unwanted

Internet services and transmissions

• Sending or posting false messages or material that could damage the organization's image or reputation

• Participating in the viewing or exchange of pornography or obscene materials

• Sending or posting messages that defame or slander other individuals

• Attempting to break into the computer system of another organization or person

• Refusing to cooperate with a security investigation

• Sending or posting chain letters, solicitations, or advertisements not related to business purposes or

activities

• Using the Internet for political causes or activities, religious activities, or any sort of gambling

• Jeopardizing the security of the organization's electronic communications systems

• Sending or posting messages that disparage another organization's products or services

• Passing off personal views as representing those of the organization

• Sending anonymous email messages

• Engaging in any other illegal activities


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APPENDIX A

- FMLA Poster


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APPENDIX B

Drug And Alcohol Abuse Prevention And Testing Policy 1. INTRODUCTION

1.1 Purpose and Goal of the Policy. Jacobi, LLC dba AcctKnowledge (hereafter referred to as the

“Company”) recognizes that the widespread use of illegal drugs and abuse of alcohol in today's society poses

a very serious problem. Not only can the use and abuse of these substances jeopardize the health, safety and

well-being of the individual user and all our employees, it can also endanger the safety of the general public,

cause accidents and injuries, adversely affect productivity and morale and contribute to excessive absenteeism

and tardiness. Accordingly, the Company has adopted this Drug and Alcohol Abuse Prevention and Testing

Policy (“Policy”). All employees of the Company are subject to this Policy. Applicants for certain job

positions are subject to Pre-Employment Testing under this Policy.

The Company hopes that every employee will welcome this Policy and is confident that the Company’s

employees will help contribute to the solution of this difficult health and social problem. THE COMPANY’S

GOAL IS TO MAINTAIN A DRUG AND ALCOHOL ABUSE-FREE WORKPLACE FOR ALL

EMPLOYEES.

1.2 Compliance with Applicable Laws. The Company intends to comply fully with the Oklahoma

Standards for Workplace Drug and Alcohol Testing Act (the “Oklahoma Act”). In the event any of the

applicable Oklahoma laws are amended, the rules and procedures of this Policy shall be deemed to have been

amended automatically at that time in order to reflect and be consistent with the governing laws. The Company

further understands and acknowledges that it has operations in states other than Oklahoma. This Policy shall

apply to all applicants and employees, regardless of their work location. If the provisions of this Policy,

including but not limited to, the provisions in the Medical and Recreational Marijuana section of this Policy,

conflict with applicable state law, this policy shall be interpreted in accordance with the applicable state law.

2. PROHIBITED DRUG AND ALCOHOL USE AND ACTIVITIES

2.1 Illegal Drugs. Employees and applicants are prohibited from being under the influence of, being

impaired by, possessing (whether on their persons or among their belongings), using, transferring, soliciting,

selling or attempting to transfer, solicit or sell any form of illegal drug while on the job, on the Company’s

premises, or on the premises of a client of the Company, or during the hiring process.

For purposes of this Policy, an "illegal drug" is any drug that is illegal under federal or applicable state law:

(a) which is not legally obtainable; (b) which may be legally obtainable but has not been legally obtained by

the employee or applicant; or (c) which is being used in a manner or for a purpose other than as prescribed for

the employee or applicant; provided, however, for purposes of this Policy, marijuana is considered an illegal

drug even if the applicant or employee has a valid medical marijuana license and/or the state where the

applicant or employee works has passed a state law that allows recreational use of marijuana.

2.2 Alcohol. Employees are prohibited from the illegal possession of alcohol (such as having open

containers in Company owned vehicles or Company rental vehicles). Employees are also prohibited from

being under the influence of, possessing, or consuming alcohol while on the job, on the Company’s premises,

or on the premises of a client of the Company, unless expressly authorized by a member of management of the

Company at a level of Vice President or above.


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2.3 Prescription and Over-the-Counter Drugs. Employees are prohibited from abusing prescription

medications or over-the-counter drugs while on job, on the Company’s premises, or on the premises of a client

of the Company. Use of prescription medications on the Company’s premises, or the premises of a client of

the Company, requires that the prescription must be in the employee’s name and unexpired. Abuse of

prescription medication or over-the-counter drugs means taking medications that were prescribed for someone

else, or using prescription medications or over-the-counter drugs for a purpose other than for which they were

prescribed or manufactured or in any way other than in accordance with the doctor's instructions or

recommended dosages. Medical marijuana is not considered a “prescription medication” under this Policy,

even if the applicant or employee has a valid medical marijuana license under applicable state law, and

therefore, the possession and use of medical marijuana while on the job, on the Company’s premises, or on the

premises of a client of the Company is prohibited.

Employees are expected to consult with their physician or pharmacist regarding the effect of medications

prescribed for them and to consult a pharmacist and any package warnings for over-the-counter drugs. When

an employee is taking a prescription medication or over-the-counter drug that can or will have an effect on the

employee's normal mental and/or physical state or interfere with work such as operating vehicles, machinery

or equipment, the employee should inform his or her immediate supervisor so that the need for and feasibility

of a reasonable accommodation may be considered to allow the employee to continue job performance without

endangering his or her health and safety or the health and safety of others.

2.4 Use, Being Impaired By, or Under the Influence. The use, being impaired by, or under the influence

of alcohol, an illegal drug or a prescription or over-the-counter drug may be determined by a positive test result

and/or subjective or objective factors.

2.5 Notice to the Company of Driving Violations and Restrictions. Employees who drive a motor vehicle

to any extent in connection with their job duties must: (a) notify their supervisor immediately if they are

charged with driving while intoxicated or under the influence of drugs or alcohol, on or off the job; and (b)

notify their supervisor before the end of the business day following the day such information is received if

their license, permit or privilege to operate a motor vehicle has been restricted, revoked, suspended, or

withdrawn. The Company must assess each such situation to determine what actions should be taken with

respect to each employee and his or her job duties to ensure the safety of all its employees and the public.

Therefore, failure to report restrictions as indicated above may result in disciplinary action, up to and including

immediate termination from employment.

2.6 Notice to the Company of Drug-Related Convictions. Employees who are convicted of or plead guilty

or no contest to a criminal offense committed while on the job, on the Company’s premises, or the premises

of a client of the Company, which involves the manufacture, use, possession, sale or transfer of prohibited

substances, or the illegal transfer of prescription drugs, shall report that information to their immediate

supervisor within five days of entry of judgment against them. The Company must be made aware of this

information in order for the Company to comply with the federal Drug-Free Workplace Act. Therefore, failure

to report such information may result in disciplinary action, up to and including immediate termination from

employment.

3. MEDICAL AND RECREATIONAL MARIJUANA

3.1 State Laws. Under Oklahoma law, an individual may be issued a medical marijuana license by the

Oklahoma Medical Marijuana Authority (“OMMA”). Other states where the Company operates may have

passed medical and/or recreational marijuana laws, as well. However, such state laws do not modify the

provisions of this Policy unless such state law is in direct conflict with a provision of this Policy.

3.2 Oklahoma Laws. To be a medical marijuana license holder under Oklahoma law, an individual must

be a resident of Oklahoma and have a valid medical marijuana license issued by the OMMA or be a non-

resident of Oklahoma with a valid medical marijuana license issued on a temporary basis by the OMMA. A


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holder of a medical marijuana license issued by a state other than Oklahoma is not a valid medical marijuana

license holder in Oklahoma. The OMMA maintains a website and telephone verification system for employers

to validate the authenticity of a medical marijuana license. A medical marijuana license issued by the OMMA

is only valid in the State of Oklahoma, except that such license is not valid on any tribal trust or tribal restricted

land or federal lands in Oklahoma.

3.3 Prohibitions. The prohibitions listed in Section 2 above apply even if the individual is a holder of a

medical marijuana license issued by the OMMA or another applicable state agency or if the individual works

in a state where recreational use of marijuana is allowed under applicable state law.

3.4 Employment Actions Based on a Valid Medical Marijuana License. The Company will not refuse to

hire, discipline, terminate employment or otherwise penalize an applicant or employee solely on the basis of

such applicant’s or employee’s status as a valid medical marijuana license holder unless otherwise required by

federal law or required to obtain federal funding.

3.5 Employment Actions Based on a Positive Test. The Company will not refuse to hire, discipline,

terminate employment or otherwise penalize an applicant or employee solely on the basis of a positive test for

marijuana, its components or metabolites unless one of the exceptions below apply. In such a case, the

Company may refuse to hire, may discipline, may terminate employment, or may otherwise penalize the

applicant or employee solely on the basis of a positive test for marijuana, its components or metabolites. The

exceptions are:

(a) The applicant or employee is not in possession of a valid medical marijuana license.

(b) The applicant or employee possesses, consumes, is impaired by or is under the influence of,

medical marijuana or medical marijuana product while on the job, on the Company’s premises, or on

the premises of a client of the Company, or during the hiring process.

(c) The applicant is applying for or the employee holds a position that is subject to U.S.

Department of Transportation (DOT) drug and alcohol regulations and testing requirements because

it is unacceptable under the DOT regulations for any safety-sensitive employee subject to drug testing

under the DOT’s drug testing regulations to use marijuana.

(d) The applicant is applying for or the employee holds a position involving safety-sensitive job

duties. “Safety-sensitive job duties” means any job that includes tasks or duties that the Company

reasonably believes could affect the safety and health of the employee performing the task or others,

including, but not limited to, any of the following: (i) the handling, packaging, processing, storage,

disposal or transport of hazardous materials; (ii) the operation of a motor vehicle, other vehicle,

equipment, machinery or power tools; (iii) repairing, maintaining or monitoring the performance or

operation of any equipment, machinery or manufacturing process, the malfunction or disruption of

which could result in injury or property damage; (iv) performing firefighting duties; (v) the operation,

maintenance or oversight of critical services and infrastructure including, but not limited to, electric,

gas, and water utilities, power generation or distribution; (vi) the extraction, compression, processing,

manufacturing, handling, packaging, storage, disposal, treatment or transport of potentially volatile,

flammable, combustible materials, elements, chemicals or any other highly regulated component; (vii)

dispensing pharmaceuticals; (viii) carrying a firearm; or (ix) direct patient care or direct childcare.

(e) If required by federal law or required to obtain federal funding.

4. DRUG AND ALCOHOL TESTS

4.1 Reasons for Testing. The circumstances under which the Company may request or require an applicant

or employee to submit to drug and/or alcohol testing are listed below.


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(a) Pre-Employment Testing. Applicants for certain job positions will be required to submit to

drug testing upon receiving a conditional offer of employment. Applicants will be notified upon

receiving a conditional offer of employment if the job position requires a drug test.

(b) For-Cause Testing. The Company may request or require an employee to undergo drug and/or

alcohol testing at any time it reasonably believes that the employee may be impaired by or under the

influence of drugs and/or alcohol, including, but not limited to, the following circumstances: (i) drugs

or alcohol on or about the employee’s person or in the employee’s vicinity; (ii) conduct on the

employee’s part that suggests impairment or influence of drugs and/or alcohol; (iii) a report of drug

and/or alcohol use while at work or on duty; (iv) information that an employee has tampered with drug

and/or alcohol testing at any time; (v) negative performance patterns; or (vi) excessive or unexplained

absenteeism or tardiness.

(c) Post-Accident Testing. The Company may require an employee to undergo drug testing if the

employee or another person has sustained an injury while at work or property has been damaged while

at work, including damage to equipment. Testing for alcohol may be conducted if there is a reason

to believe that the use of alcohol may have been a contributing cause of the accident or damage to

property.

(d) Random Testing. The Company may, from time to time, request or require an employee or

all members of an employment classification or group to undergo drug testing at random and may

limit its random testing to particular employment classifications or groups.

(e) Transfer/Reassignment Testing. The Company may request or require an employee who

transfers to a different position or job, or who is reassigned to a different position or job, to undergo

drug testing.

(f) Scheduled, Fitness-for-Duty, Return from Leave, and Other Periodic Testing. The Company

may request or require an employee to undergo drug testing if the test is conducted as a routine part

of a routinely scheduled employee fitness-for-duty medical examination, or is requested or required

by the Company in connection with an employee’s return to duty from leave of absence, or which is

scheduled routinely as part of the Company’s written policy.

4.2 Refusal to be Tested. Any employee who refuses to submit to the Company's request for drug and/or

alcohol testing or who refuses to complete the required forms will be subject to termination from employment

with the Company. An applicant for employment who refuses to submit to drug testing, or who refuses to

complete the required forms will not be eligible for employment by the Company.

4.3 Adulteration of Samples. The actual or attempted addition of adulterants to drug and/or alcohol testing

samples is prohibited. Use or attempted use of adulterants will subject the employee to disciplinary action, up

to and including termination. Use or attempted use of adulterants by an applicant will result in the applicant

not being eligible for employment. If adulterants are found in samples, the lab results will be reported as

positive.

5. PROCEDURES FOR DRUG AND/OR ALCOHOL TESTING

5.1 Substances That May Be Tested. The substances which may be tested under this Policy are drugs and

their metabolities and components that are illegal under federal or applicable state law and alcohol. Drugs

include, but are not limited to, amphetamines, cannabinoids (marijuana), cocaine, phencyclidine (PCP),

hallucinogens, methaqualone, opiates, barbiturates, benzodiazephines, synthetic narcotics, designer drugs, or

a metabolite of any of these substances. Alcohol means ethyl alcohol or ethanol.


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5.2 Collection Procedures and Testing Methods. The Company will pay the costs of testing requested or

required by the Company. Samples for testing for drugs and/or alcohol will be conducted on an individual’s

tissue, fluid or body product capable of revealing the presence of drugs or alcohol. The cutoff levels for

determining whether a test result is positive or negative shall be those established by applicable law.

5.3 Challenging the Test Results. An applicant and employee may explain, in confidence, the test results.

They may also challenge the results of a positive test by requesting a confirmation test of a sample within 24

hours of receiving notice of a positive test. The individual challenging the results of a positive test must pay

all costs of the confirmation test, unless the confirmation test reverses the findings of the challenged positive

test. In such a case, the Company will reimburse the individual for the costs of the confirmation test.

5.4 Information and Records. Individuals tested may inspect and request copies of records of all drug and

alcohol test results and related information maintained by the Company. The Company will not release such

records to any person other than to the individual tested or the Company’s review officer, except that the

Company may release the test results and related information for the following purposes: (a) as admissible

evidence by the Company or the individual tested in a case or proceeding before a court of record or

administrative agency if either the Company or the individual tested are named parties in the case or

proceeding; (b) in order to comply with a valid judicial or administrative order; (c) to the Company’s

employees, agents and representatives who need access to such records in the administration of the Oklahoma

Act; or (d) as allowed by governing and applicable law. The Company may share drug or alcohol testing

results of any tested person who works pursuant to a contractual agreement between the Company and another

employer.

6. SEARCHES AND INSPECTIONS

6.1 The Company may at any time conduct unannounced searches and inspections of the Company’s premises

or the premises of a client of the Company or of any person and their personal property located on the

Company’s premises or the premises of a client of the Company, including but not limited to the use of scent

trained animals and physical searches. Items that may be searched include without limitation the following:

wallets, purses, clothing, bags, briefcases, lockers, offices, desks, vehicles, and tool boxes. Failure to comply

with a search request will result in disciplinary action, up to and including termination. Individuals who refuse

to comply with a search request will be escorted from the location and will not be allowed to return without

written authorization. Entry upon the Company’s premises or the premises of a client of the Company

constitutes an individual’s consent to and recognition of the right of the Company to conduct unannounced

searches. No person who enters on the Company’s premises or the premises of a client of the Company has a

right to privacy or an expectation of privacy.

7. CONSEQUENCES OF FAILURE TO COMPLY WITH THIS POLICY

7.1 Applicants. Any applicant who has been made a conditional offer of employment and is required to

take a drug test and who refuses to undergo drug testing or who has a positive result shall not be eligible for

employment with the Company, provided, however, if the applicant has a positive result for marijuana, its

components or metabolites, then any action shall made be in accordance with the provisions in the “Medical

and Recreational Marijuana” in Section 3 of this Policy.

7.2 Employees. Any employee who refuses to undergo drug and/or alcohol testing, has a positive test

result on a drug and/or alcohol test, or violates any other provision of this Policy shall be guilty of misconduct

and subject to disciplinary action, up to and including termination of employment, provided, however, if the

employee has a positive test for marijuana, its components or metabolites, then any action shall be made in

accordance with the provisions of the “Medical and Recreational Marijuana” in Section 3 of this Policy.


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8. QUESTIONS

Concerns or questions about this Policy should be directed to the President/CEO. There are no appeal rights

from decisions made by the Company pursuant to this Policy.

THIS POLICY BECAME EFFECTIVE SEPTEMBER 9, 2019, AND MAY BE MODIFIED AT THE

COMPANY'S SOLE DISCRETION AT ANY TIME IN THE FUTURE UPON TEN DAYS NOTICE.


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APPENDIX C

- Acknowledgement

EMPLOYEE HANDBOOK ACKNOWLEDGMENT

I, the undersigned employee or applicant for employment as an employee of Jacobi, LLC d/b/a

AcctKnowledge (the “Company”), hereby acknowledge receipt of the AcctKnowledge Employee

Handbook (the “Handbook”), effective September 9, 2019, including Appendix A and Appendix B

which are part of the Handbook. I acknowledge that I have a responsibility to read the Handbook,

including the Appendices to the Handbook, and to contact the President/CEO or any member of

management if I have questions about anything in the Handbook.

I understand that compliance with the Company’s Drug and Alcohol Abuse Prevention and Testing

Policy at Appendix B is a condition of my employment if hired or a condition of my continued

employment if I am a current employee with the Company. I understand that any violation of the

Drug and Alcohol Abuse Prevention and Testing Policy will subject me to a withdrawal of a

conditional offer of employment if I am an applicant or disciplinary action, up to and including

termination if I am a current employee.

If hired as an employee of AK, I agree to keep the Handbook for future reference and to observe

present and future personnel policies, standards, and rules outlined in the Handbook. I understand

and acknowledge that the Handbook supersedes any and all past policies, procedures, understandings

and standards, written and verbal, express or implied, to the extent the subject matters thereof are

addressed in the Handbook. I understand and acknowledge that the Company reserves the right to

alter, amend, modify, or terminate any benefits, policies, or provisions contained in the Handbook at

any time it chooses with or without prior notice to me. Any such changes will be made in writing and

distributed to me electronically or by other appropriate means. I understand that it is my responsibility

to keep informed of any changes to the Handbook.

I understand that if I am employed by the Company, my employment with the Company is “at-

will,” unless a written contract of employment for a fixed duration of time or for other than

“at-will” employment is signed by the President/CEO and me. I understand that “at-will”

employment means that employment may be terminated either by the employee or by the

Company at any time, with or without cause, and with or without notice. I understand that

nothing in this Handbook nor any oral or written representation by any employee, official, or

supervisor of the Company shall be construed as a contract of employment for any fixed

duration of time or for other than “at-will” employment. I understand that the Company may

make changes to the position, title, job responsibilities, or compensation level of its “at-will”

employees at any time, with or without cause, and with or without notice.

Signature Date

Printed Name

jacobi, llc acctknowledge

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