1 September 2013

Nevada Meal Period and Rest Break Policy

and Acknowledgement Form

It is Sodexo’s policy to comply with all state and local laws regarding meal periods and rest breaks, including those of the State of Nevada. Therefore, Sodexo adopts the following policy applicable to its nonexempt (hourly paid) employees who work in Nevada:

Meal Periods:

Employees who work eight consecutive hours are required to take a 30-minute, unpaid, duty-free meal period.

If the employee’s meal period is not indicated on a schedule, the employee’s supervisor shall inform the employee of the time of the employee’s meal period.

Employees must clock or sign out and in for their meal period and shall not perform any work duties during the meal period.

Employees may not waive their meal period except as permitted by law and approved by Human Resources.

Employees who are unable or forget to clock out or in for a meal period must notify their supervisor immediately and record the missed punch on the Punch Exception Log, initial the entry, and have the supervisor or manager approve the entry by initialing the missed punch.

Employees who are unable to take a meal period for any reason must notify their supervisor immediately.

Employees who are not provided with a meal period as set forth in this Policy should contact their supervisor, manager or Human Resources representative immediately.

Rest Breaks:

Employees are permitted to take one paid 10-minute rest break for every four hours worked or major portion thereof.

Employees should take their rest break as close as possible to the middle of each 4-hour work period of their shift.

If an employee’s rest break is not posted on a schedule, the employee’s supervisor shall inform the employee of the time of the employee’s rest break.

Employees should not clock or sign out for rest breaks.

Employees shall not perform any work duties during the rest break.

Rest breaks may not be combined with other rest breaks or the employee’s meal period.

2 September 2013

Employees who are not provided with a rest break as set forth by this Policy should contact their supervisor, manager or Human Resources representative immediately.

If you have concerns about your meal periods or rest breaks, you can utilize Sodexo’s Promise of Respect and Fair Treatment process or contact the Business Abuse Hotline to voice those concerns.

Compliance with Sodexo’s Nevada Meal Period and Rest Break Policy:

Employees are expected to know and comply with Sodexo’s Nevada Meal Period and Rest Break Policy. Violations include, but are not limited to:

Failure to take meal periods or rest breaks as instructed.

Failure to report missed meal periods or rest breaks.

Failure to clock or sign out and in for meal periods.

Per the Sodexo Payment of Wages for All Hours Worked Policy, CP-217, accurate timekeeping of all work time and meal periods is critical.

Employees who fail to comply with Sodexo’s Nevada Meal Period and Rest Break Policy will be subject to constructive counseling, up to and including termination of employment. Employees who intentionally violate Sodexo’s Nevada Meal Period and Rest Break Policy and/or the Payment of Wages for All Hours Worked Policy (i.e. misrepresent time worked) are subject to immediate termination of employment.

Managers who fail to enforce and comply with Sodexo’s Nevada Meal Period and Rest Break Policy will be subject to constructive counseling, up to and including termination of employment.

Employees Covered by a Collective Bargaining Agreement:

Employees in units covered by a collective bargaining agreement shall follow the terms of the applicable collective bargaining agreement pertaining to meal periods and/or rest breaks. If the applicable collective bargaining agreement is silent on the subject of meal periods and/or rest breaks, then this Policy or state law shall apply.

Employees who have any questions concerning this Policy should contact their supervisor, manager or Human Resources representative. Employee Acknowledgement I acknowledge that this policy has been provided and explained to me. I understand and agree to follow this policy. Print Employee Name: ______________________________________

Employee Signature/ Date: ___________________________________

Nevada Meal Period and Rest Break Compliance

September 2013

Manager Oversight and Enforcement To comply with the Sodexo Nevada Meal Period and Rest Break Policy, managers must:

Post the Nevada Meal Period and Rest Break Policy and Acknowledgement Form where other notices to employees are posted.

Schedule and post nonexempt employee meal periods and rest breaks.

Provide an unpaid 30-minute duty-free meal period to employees working eight consecutive hours.

Remind employees when their meal periods are scheduled. Ensure coverage is available so that employees can take an uninterrupted 30–minute meal period.

Ensure frontline and nonexempt, administrative, technical, and professional employees clock, record or sign out and in for their 30-minute unpaid meal periods.

Provide a 10-minute paid rest break to employees for every four hours worked or major portion thereof.

Ensure employees do not clock or sign out and in for rest breaks.

Remind employees of their rest breaks and encourage them to take them.

Review time records on a daily basis if possible.

Review the Nevada Meal Period and Rest Break Policy with new employees on the first day during orientation. Have the employee sign the Employee Acknowledgement at the end and place in the personnel file. If an employee refuses to sign the Employee Acknowledgement, sign and date the form yourself to indicate when you provided and reviewed the policy with the employee. Note on the document the employee’s refusal to sign and place in the employee’s personnel file.

Review the requirements of the Nevada Meal Period and Rest Break Policy with existing employees on a regular basis.

Enforce the policy. Hold employees accountable for taking their meal periods as required. Promptly take disciplinary action according to the Constructive Counseling process or the disciplinary procedures provided in the applicable collective bargaining agreement. Always act consistently.

Sodexo relies on its managers to ensure it complies with Nevada’s meal period and rest break requirements. Accordingly, managers who fail to comply with the policy will be subject to discipline up to and including termination of employment. If you have any questions about the policy or your responsibilities, contact your HR representative.

September 2013

NEVADA REST BREAK SUMMARY CHART

Employee Hours of

Work

Less than 3 ½ hours

3 ½ up to 6 hours, 59 minutes

7 hours up to 10

hours, 59 minutes

11 hours up to 14

hours, 59 minutes

15 hours up to 18

hours, 59 minutes

10-minute Rest Break Entitlement

0

1

2

3

4

* Note: An unpaid meal period is not considered when determining the number of hours worked by an employee when calculating the number of rest breaks for which the employee is eligible.

Nevada Meal Period and Rest Break Compliance

September 2013

Employee Constructive Counseling Employees are expected to know and comply with the Sodexo Nevada Meal Period and Rest Break Policy. Violations include, but are not limited to:

Failure to take meal periods and rest breaks as instructed Failure to clock, record or sign out and in for meal periods Failure to report missed meal periods and rest breaks to the supervisor or manager

Employees who unintentionally fail to comply with Sodexo’s Nevada Meal Period and Rest Break Policy will be subject to constructive counseling as follows:

For initial violations, deliver a Written Coaching. For second violations, deliver a Written Warning, review the policy with the employee and have the employee sign the

Nevada Meal Period and Rest Break Policy and Acknowledgement Form. For third violations, deliver a second Written Warning, review the policy with the employee and have the employee sign the

Employee Acknowledgement again. For fourth violations, employees may be subject to termination. Review the facts with your Human Resources

representative.

Employees who intentionally violate the Sodexo Nevada Meal Period and Rest Break Policy (for example: misrepresent time worked) are subject to immediate termination of employment. All Constructive Counseling Notices must be placed in the employee’s personnel file. Template Constructive Counseling Notices are provided to assist you in documenting written coaching and written warning actions. If you need assistance, contact your Human Resource representative.

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September 2013

NEVADA MEAL PERIOD AND REST BREAK Q&A

Meal Periods

Q1. Do employees have to punch/sign out and in for meal periods?

A. Absolutely. It is important documentation to confirm employees have received their 30-minute meal period as required by state law.

Q2. Can I require an employee to work through her meal period if I pay her for the time?

A. No. The employee is entitled to a 30-minute duty free meal period if the employee works eight consecutive hours. Any time a meal period is missed or the employee is unable to take the full 30 minutes, the employee must be paid for time worked or the short meal period.

Q3. Can I require an employee to take a meal period at her workstation?

A. No. An employee must be relieved of all work duties during the 30-minute meal period.

Q4. Can I allow an employee to waive her meal period so that she can leave work 30 minutes early?

A. No. Working through a meal period does not entitle an employee to leave work prior to her scheduled quitting time.

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September 2013

Q5. Can I allow my employee to waive her meal periods?

A. The law allows an employee to waive the meal period if mutually agreed to by the employee and the manager. It must be completely voluntary and documented in writing. Please contact your Human Resources representative for guidance and the Nevada Meal Period Waiver Agreement.

If at some later date the employee wishes to receive a meal period, any agreement would no longer be in effect and the meal period waiver form should be end dated.

Q6. Can I allow an employee to combine one of her two 10-minute rest breaks with her 30-minute meal period to create a 40-minute meal period?

A. No. You cannot allow employees to combine the meal period and the rest break because the law requires the employer to provide separate meal periods and rest breaks.

Q7. I have employees scheduled to work ten hours and sometimes longer. What is an employee entitled to if they work ten or more hours?

A. Employees who work ten or more hours are entitled to one 30-minute meal period. You can provide an additional meal period based on your operational needs. If an employee works an additional eight consecutive hours following the first meal period, the employee is entitled to an additional 30-minute meal period.

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September 2013

Q8. Can I give my employees a meal period if they work less than 8 hours?

A. Yes, if operational needs allow you can provide a meal period to employees working less than eight hours. However, it is important you use the same criteria for all employees to determine eligibility (i.e. employees working six or more hours) to ensure fairness.

Q9. Can I require my employees to stay on the work premises during their meal periods?

A. No, not unless they are paid for their time. You can require your employees to remain on the premises during their meal periods if a suitable place exists for them to eat. However, that would deny them the time for their own purposes and they would, in effect, remain under the Company’s control, and therefore the meal period would have to be paid.

Q10. Am I allowed to adjust the schedule for meals periods from one workday to the next, or does the meal period schedule need to be fixed?

A. There is no requirement that the scheduling of meal periods be fixed. The law permits flexibility in scheduling meal periods on a day to day basis based on the employer's operational needs. This is to avoid interruption in the flow of work and to maintain continuous operations.

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September 2013

Q11. All my employees start at the same time each day. Do I have to give them their meal period at the same time?

A. No, employees do not have to have the same meal period if they start their shift at the same time.

Q12. How do I ensure that employees are receiving and taking their required meal periods?

A. Scheduling meal periods and posting the meal period schedule helps ensure employees receive their required meal periods. Review time records on a daily basis if possible. If the time records reveal: (1) no clock/sign out and/or in for the 30-minute meal period, or (2) a meal period is less than 30 minutes, 1. Discuss the time record with the employee and record the reason on the time record. Have the employee sign or initial the notation on the Punch Exception Log, the print screen of the time card, or the Frontline Manual Timesheet. 2. If the employee states the missed or short meal period occurred because of personal reasons unrelated to work requirements proceed with (a) a written coaching, or (b) the appropriate constructive counseling step using the appropriate template Constructive Counseling Notice. Attach a copy of the time record with reason to the Constructive Counseling Notice. Remind the employee of the obligation to take meal periods according to Sodexo’s Nevada Meal Period and Rest Break Policy and review the policy with the employee again. 3. If the employee states that he did, in fact, take a meal period but forgot to clock/sign out or in, proceed with (a) a written coaching, or (b) the appropriate constructive counseling step using the appropriate template Constructive Counseling Notice. Attach a copy of the time record with reason to the Constructive Counseling Notice.

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September 2013

Remind the employee of the obligation to take meal periods according to Sodexo's Nevada Meal Period and Rest Break Policy and to clock/sign out and in for his meal periods. 4. Ensure all Punch Exception Logs and Frontline Manual Timesheets are maintained with other time related records for the pay cycle.

Rest Breaks

Q13. Should I have my employees punch/sign out and in for rest breaks?

A. No. Because rest breaks are paid, Company policy does not require employees to punch or sign out and in for rest breaks. Rest breaks should be scheduled and managed on an individual basis. Employees are attesting on the time clock or online when approving their timecard or signing the affirmation statement on the Frontline Manual Timesheet that they received their meal periods and rest breaks as required by law. If the unit is still using Labor Management, employees are signing the affirmation statement on the Time Card Approval Report that they have received their required meal periods and rest breaks.

Q14. Can I allow an employee to waive her 10-minute rest break(s)?

A. Yes. A rest break may be waived if done so voluntarily by the employee. Keep in mind, however, that you cannot coerce or even encourage an employee to waive a rest break. The Company encourages employees to take their rest breaks.

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September 2013

Q15. Can rest periods be scheduled at any time?

A. No. Rest breaks should be scheduled as close as possible to the middle of each 4-hour work period.

Q16. Can I require my employees to stay on the work premises during their 10-minute rest breaks?

A. Yes. You can require employees to stay on the premises during their rest breaks because the employees are being compensated for the time.

Q17. Can I allow an employee to work through her rest break(s) so that she can leave work 10-20 minutes early or arrive at work 10-20 minutes late?

A. No. Working through a rest break does not entitle an employee to arrive late or leave work early. A rest break must be preceded and followed by some work period during the workday. Otherwise, it is not a rest break, but rather, merely a means of shortening the workday. The purpose of the rest period is to refresh workers during the workday. This purpose would be subverted by eliminating the rest break in exchange for a shorter workday.

Q18. Can I allow employees to combine their two 10-minute rest breaks into one 20-minute rest break?

A. No. Combining two 10-minute rest breaks into a 20-minute rest break is not allowed. Each rest break is intended as a separate break. Generally, the first 10-minute rest break precedes the meal period in the first 4-hour work period and the second 10-minute rest break follows the meal period in the second 4-hour work period.

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September 2013

Q19. Are smokers entitled to additional rest breaks?

A. No. Under Nevada law rest break time is based on one 10-minute rest break for each four hours of work or major portion thereof.

Q20. When an employee needs to use the restroom during her work period does that count as her 10-minute rest break?

A. No. The 10-minute rest break is not designed to be exclusively for use of the restroom. Rest breaks are intended to cover other personal needs as well, including taking a walk or stretching, making a personal phone call or smoking in a permitted area. The rest break is not to be confused with or limited to breaks taken by employees to use the restroom. Allowing employees to use the restroom during working hours does not meet Sodexo’s obligation to make rest breaks available to eligible employees. This is not to say, of course, that you do not have the right to reasonably limit the amount of time an employee may be absent from her workstation. It also does not mean that an employee who chooses to use the restroom while on an authorized break may extend the break time by doing so. The law simply prohibits an employer from requiring that employees count any separate use of the restroom as a rest break.

Q 21. Can I give employees 15-minute rest breaks instead of 10-minute rest breaks?

A. Yes. If business permits, employees would probably appreciate a 15-minute rest break. Providing 15-minute rest breaks ensures employees are receiving at least the required 10-minute rest breaks even if they return a couple of minutes early from their break.

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September 2013

Q22. Am I allowed to adjust the schedule of rest breaks from one workday to the next, or does the schedule need to be fixed?

A. There is no requirement that the scheduling of rest breaks be fixed. The law permits flexibility in scheduling rest breaks on a day-to-day basis based on the employer’s operational needs This is to avoid interruption in the flow of work and to maintain continuous operations. However, the law and Sodexo policy want you to provide the rest break as close as possible to the middle of each four hour work segment or major portion thereof.

Meal Periods and Rest Breaks

Q23. How does the policy apply to employees who are scheduled for split shifts?

A. Employees working a split shift are entitled to the meal periods and rest breaks based on the number of hours in each individual work shift. For example, if an employee works four hours in the morning and another four hours in the late afternoon, the employee would be entitled to an uninterrupted 10-minute rest break during the morning work period and another one during the afternoon work period

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September 2013

Employee Relations

Q.24. What do I do if an employee refuses to sign the Employee Acknowledgement on the Sodexo Nevada Meal Period and Rest Break Policy?

A. If an employee refuses to sign the Employee Acknowledgement, simply sign and date the Employee Acknowledgement yourself to indicate the date you provided and reviewed the policy with the employee. Note the employee’s refusal to sign and place it in the employee’s personnel file. You should remind the employee, however, that failure to follow the Nevada Meal Period and Rest Break Policy is grounds for constructive counseling, up to and including termination, and the employee’s refusal to sign the Employee Acknowledgement does not excuse him or her from that obligation.

Q25. What do I tell employees who have questions about past failure to provide the meal periods or rest breaks outlined in the Nevada Meal Period and Rest Break Policy?

A. If employees seek additional information about the reason for the Employee Acknowledgement or if they raise specific complaints about past practices, please tell them to contact their Human Resources representative directly and provide the employee with the HR contact information.

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September 2013

Miscellaneous

Q26. Does this state law and Nevada policy apply to my Admin Assistant and Chef (Class Code 4 positions)? They record their time in eTIME using Hours Time Entry View.

A. Yes. The Nevada state law and Sodexo policy for meal periods and rest breaks does apply to administrative assistants and nonexempt chefs. It applies to all nonexempt (hourly paid) employees, not just frontline employees recording their time on the In Touch time clocks or online using Timestamp View or using a Labor Management time clock.

Q27. I manage client employees. Do I post Sodexo’s policy and have employees sign the Employee Acknowledgement on the policy?

A. No, you should not post a Sodexo policy or have the client employees sign a Sodexo employee acknowledgement. Consult with the client’s Human Resources representative to discuss what resources they have available to educate and keep the employees informed of Nevada state requirements.

Q28. I have employees that use pagers for their work. How do I ensure they are not interrupted during their meal periods and rest breaks?

A. Employees should be instructed to turn off or silence their pagers, radios, beepers etc. or give their communication devices to the manager or another employee and log out of any work assignment systems before the start of their meal periods and rest breaks.

Refer to Sodexo’s CP-217 Payment of Wages for All Hours Worked Policy for additional information.

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September 2013

Q29. I supervise union employees. Do I implement this policy in my unit?

A. You should check the collective bargaining agreement and see what it says about meal periods and rest breaks. If the collective bargaining agreement specifically provided for meal periods and rest breaks, follow the union contract. If the union contract does not have a provision covering meal periods or rest breaks, then you should follow Sodexo’s policy. However, before applying Sodexo’s policy or distributing the Nevada Meal Period and Rest Break Policy and Acknowledgement Form to employees, you must consult with your Labor Relations representative. Additionally, when applying Sodexo's policy, you do not want to act contrary to any other part of the union contract. For example, any discipline under Sodexo’s Nevada Meal Period and Rest Break Policy must be consistent with the disciplinary process provided in your union contract. Please consult your designated Labor Relations representative for information specific to your location.

Q30. What are the consequences if I don’t follow the Nevada Meal Period and Rest Break Policy?

A. A manager has the responsibility to comply with the policy and state law. Failure to do so creates great risk for Sodexo. Claims for violations of Nevada meal period and rest break laws can be very costly. Centralized data analysis may be conducted to ensure compliance. Managers not complying with the policy will be subject to constructive counseling up to and including termination of employment.

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September 2013

Q31. Is there a poster on meal periods and rest breaks?

A. No, there is no meal period and rest break specific poster. However, the Sodexo Nevada Meal Period and Rest Break Policy and Acknowledgement Form and the Sodexo Rest Break Summary Chart must be posted in an area accessible to employees (i.e. on the employee bulletin board or near the time clock). The Policy is available in English and Spanish on Sodexo Net. The state required poster, Rules to be Observed by Employers (Rev 11/13/12), contains references to the state law for meal periods and rest breaks.