Employee manual version 2018

LEADER’S STAFFING

EMPLOYEE HANDBOOK & Safety Orientation 2018

Table of Contents FOREWORD ...............................................................................................................................................5 RECEIPT FOR EMPLOYEE HANDBOOK .............................................................................................. 6 EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT.........................................................7 NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY ..............................................................7 Individuals and Conduct Covered by Anti-Harassment Policy ...................................................8 Retaliation Is Prohibited...................................................................................................................8 Reporting an Incident of Harassment, Discrimination or Retaliation .........................................8 The Investigation ..............................................................................................................................9 Responsive Action ............................................................................................................................. 9 Procedure for Requesting an Accommodation ...........................................................................10 CONFIDENTIAL NATURE OF WORK .................................................................................................. 10 EMPLOYMENT............................................................................................................................................ 12 INITIAL EMPLOYMENT PERIOD .......................................................................................................... 12 EMPLOYEE CATEGORIES ................................................................................................................... 12 Full-Time ..........................................................................................................................................12 Part-Time .........................................................................................................................................13 Temporary Employees ...................................................................................................................13 COMPENSATION........................................................................................................................................ 14 PAYMENT OF SALARY ......................................................................................................................... 14 OVERTIME PAY ....................................................................................................................................... 14 TIME RECORDS ..................................................................................................................................... 15 UPDATING PERSONNEL RECORDS ................................................................................................... 15 TIME OFF ..................................................................................................................................................16 PAID TIME OFF ....................................................................................................................................16 Holidays ............................................................................................................................................. 16 Jury Duty ...................................................................................................................................... 16 TIME OFF WITHOUT PAY ..................................................................................................................... 16 Military Leave ..................................................................................................................................16 Return from Military Leave .............................................................................................................. 17 2|Pag e

LEAVE UNDER THE FAMILY AND MEDICAL LEAVE ACT ("FMLA") .............................................. 18 Eligibility ..........................................................................................................................................18 USERRA ...........................................................................................................................................19 Qualifying Reasons For FMLA Leave ...........................................................................................19 Leave Period-for all leave, except Military Caregiver Leave .....................................................19 Proper Notice Of FMLA By Employee ..........................................................................................20 Certification For Leave For Serious Health Conditions Or Qualifying Exigencies .................20 Qualifying Exigencies ....................................................................................................................21 Military Caregiver Leave ................................................................................................................21 Reinstatement .................................................................................................................................23 Resolution Of Problems .................................................................................................................23 Posting Of FMLA .............................................................................................................................24 Leaders Staffing Designation And Approval Of FMLA ............................................................. 24 Retroactive Designation ................................................................................................................25 FMLA Leave Run Concurrently with Disability Leave ................................................................25 Sanctions .........................................................................................................................................25 Additional Information....................................................................................................................25 For further information or clarification about FMLA leave, please contact your LSSC or the Human Resources Department .....................................................................................................................25 STATUTORY EMPLOYEE BENEFITS .....................................................................................................26 DISCLAIMER .......................................................................................................................................... 26 BREASTFEEDING POLICY ..................................................................................................................26 ON THE JOB ............................................................................................................................................... 27 ATTENDANCE, PUNCTUALITY AND DEPENDABILITY ...................................................................27 Attendance & Punctuality ..............................................................................................................27 Call in ...............................................................................................................................................28 Vacation Hours Applied to All Absences .....................................................................................28 Point System ...................................................................................................................................28 DRUG & ALCOHOL ABUSE ................................................................................................................. 29 VIOLENCE IN THE WORKPLACE ........................................................................................................ 34

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ACCIDENTS AND EMERGENCIES ...................................................................................................... 34 OPEN DOOR POLICY ..........................................................................................................................34 E-M AIL AND INTERNET POLICY .......................................................................................................35 SOCIAL MEDIA POLICY ......................................................................................................................36 EMPLOYER AND CUSTOMER INFORMATION AND PROPERTY ...................................................36 VOICE MAIL POLICY ...........................................................................................................................37 USE OF COMPANY-OWNED EQUIPMENT AND COMPUTER SYSTEMS .......................................38 TELEPHONE USE ................................................................................................................................39 INTERNAL INVESTIGATIONS AND SEARCHES ................................................................................ 39 SMOKING POLICY...............................................................................................................................40 WORK PERFORMANCE ............................................................................................................................ 41 DISCIPLINARY PROCEDURES ............................................................................................................ 41 LEAVING LEADERS STAFFING ................................................................................................................ 42 RESIGNATION........................................................................................................................................ 42 DISMISSALS .......................................................................................................................................... 42 Immediate Dismissals/Misconduct ...............................................................................................42 POST RESIGNATION/TERMINATION PROCEDURES ....................................................................... 43 Exit Interview ..................................................................................................................................... 43 Benefits ............................................................................................................................................44 Final Paycheck ................................................................................................................................44

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FOREWORD WELCOME TO Leaders Staffing Whether you have just joined our staff or have been at Leaders Staffing for a while, we are confident that you will find working for our company to be a dynamic and rewarding association.

We consider the employees of Leaders Staffing to be its most valuable resource. *Please note: the terms “client” or “customer” will be used interchangeably in this document. Both terms refer to the company location where you report to work.

When reviewing the manual, please keep the following in mind: First, this manual contains only general information and guidelines. It is not intended to be comprehensive or to address all the possible applications of, or exceptions to, the general policies and procedures described. For that reason, if you have any questions concerning eligibility for a particular benefit, or the applicability of a policy or practice to you, you should address your specific questions to your Leaders Staffing Staffing Coordinator (LSSC) or the Leaders Staffing Human Resources Department.

Second, the procedures, practices, policies and benefits described here may be modified or discontinued from time to time. We will try to inform you of any changes as they occur.

Third, this handbook and the information in it should be treated as secret and confidential. No portion of this handbook should be disclosed to others, except Leaders Staffing employees and others affiliated with Leaders Staffing whose knowledge of the information is required in the normal course of business.

Fourth, because many Leaders Staffing employees work for Leaders Staffing clients or customers, Leaders Staffing employees who work for clients will also be subject to the policies, procedures and practices of the client and their worksite(s). Affected employees should refer to all client-issued policies, procedures and practices, either written or oral. However, as a Leaders Staffing employee, you should always contact Leaders Staffing for all questions.

Finally, some of the subjects described here are covered in detail in official written insurance policy documents. You should refer to these documents for specific information, since this handbook only briefly summarizes those benefits. Please note that the terms of the written insurance policies are controlling.

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RECEIPT FOR EMPLOYEE HANDBOOK I acknowledge that I have received a copy of Leaders Staffing’s Employee Handbook. I agree to read it thoroughly, including the statements in the foreword describing the purpose and effect of the Handbook. I agree that if there is any policy or provision in the Handbook that I do not understand, I will seek clarification from my LSSC or the Leaders Staffing Human Resources Department. I understand that Leaders Staffing is an "at will" employer, and as such, my employment with Leaders Staffing is not for a fixed term or definite period and may be terminated at the will of either party, with or without cause, and without prior notice. No supervisor or other representative of the company (except the President) has the authority to enter into any agreement for employment for any specified period of time, or to make any agreement contrary to the above.

In addition, I understand that this Handbook states Leaders Staffing’s policies and practices in effect on the date of publication. I understand that nothing contained in the Handbook may be construed as creating a promise of future benefits or a binding contract with Leaders Staffing for benefits or for any other purpose. I also understand that these policies and procedures are continually evaluated and may be amended, modified or terminated at any time.

Please sign and date this receipt and return it to the Leaders Staffing Human Resources Department.

Date:

Signature:

Print Name:

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INTRODUCTION EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT Equal Employment Opportunity has been, and will continue to be, a fundamental principle at Leaders Staffing, where employment is based upon personal capabilities and qualifications without discrimination because of race, color, national origin, religion, sex (with or without sexual conduct), age, disability, alienage or citizenship status, marital status, creed, genetic predisposition or carrier status, sexual orientation or any other characteristic protected by law.

This policy of Equal Employment Opportunity applies to all policies and procedures relating to recruitment and hiring, compensation, benefits, termination and all other terms and conditions of employment.

The Leaders Staffing Human Resources Department has overall responsibility for this policy and maintains reporting and monitoring procedures. Employees' questions or concerns should be referred to their LSSC or the Leaders Staffing Human Resources Department.

Appropriate disciplinary action may be taken against any employee willfully violating this policy.

NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY Leaders Staffing is committed to providing its employees with a work environment in which all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits discriminatory practices, including harassment. Therefore, Leaders Staffing expects that all relationships among persons in their workplace will be business-like and free of bias, prejudice and harassment.

It is the policy of Leaders Staffing to ensure equal employment opportunity without discrimination or harassment on the basis of race, color, national origin, religion, sex (with or without sexual conduct), age, disability, alienage or citizenship status, marital status, creed, genetic predisposition or carrier status, sexual orientation or any other characteristic protected by law.

Leaders Staffing prohibits and will not tolerate any such discrimination or harassment by or instigated against its employees.

Definitions of Harassment Sexual harassment constitutes discrimination and is illegal under federal, state and local laws. For the purposes of this policy, sexual harassment is defined, as in the Equal Employment Opportunity Commission Guidelines, as unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature when, for example: (i) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment; ii) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; or (iii) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile or offensive working 7|Pag e

environment. a. Harassment on the basis of any other protected characteristic is also strictly prohibited. Under this policy, harassment is verbal or physical conduct that denigrates or shows hostility or aversion toward an individual because of his/her race, color, religion, national origin, age, disability, alienage or citizenship status, marital status, creed, genetic predisposition or carrier status, sexual orientation or any other characteristic protected by law or that of his/her relatives, friends or associates, and that: (i) has the purpose or effect of creating an intimidating, hostile or offensive work environment; (ii) has the purpose or effect of unreasonably interfering with an individual's work performance; or (iii) otherwise adversely affects an individual's employment opportunities.

Harassing conduct includes, but is not limited to: epithets, slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes and display or circulation in the workplace of written or graphic material that denigrates or shows hostility or aversion toward an individual or group (including through e-mail).

Individuals and Conduct Covered by Anti-Harassment Policy These policies apply to all applicants and employees, and prohibit harassment, discrimination and retaliation whether engaged in by fellow employees, by a supervisor or manager or by someone not directly connected to Leaders Staffing (e.g., an outside vendor, consultant or customer).

Conduct prohibited by these policies is unacceptable in any workplace where a Leaders Staffing employee conducts his or her daily work, and in any work-related setting outside the workplace, such as during business trips, business meetings and business-related social events.

Reporting an Incident of Harassment, Discrimination or Retaliation Leaders Staffing requires the reporting of all incidents of discrimination, harassment or retaliation, regardless of the offender's identity or position. Individuals who believe they have experienced conduct that they believe is contrary to Leaders Staffing’s policy or who have concerns about such matters should file their complaints with their LSSC, the Leaders Staffing Director or any member of Leaders Staffing management that the employee feels comfortable approaching. b.

PLEASE REMEMBER-You are an employee of Leaders Staffing, and you have an obligation to make Leaders Staffing aware of any harassment, retaliatory or discriminatory behavior you witness or are subjected to while employed by Leaders Staffing. We need to know about any such incidents of discrimination, harassment or retaliation, no matter who the harasser is or by whom the harasser is employed.

Early reporting and intervention have proven to be the most effective method of resolving actual or perceived incidents of harassment. Therefore, while no fixed reporting period has been established, Leaders Staffing strongly urges the prompt reporting of complaints or concerns so that rapid and constructive action can be taken. Leaders Staffing will make every effort to stop alleged harassment before it becomes severe or pervasive but can only do so with the cooperation of its staff/employees.

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The availability of this complaint procedure does not preclude individuals who believe they are being subjected to harassing conduct from promptly advising the offender that his or her behavior is unwelcome and requesting that it be discontinued.

The Investigation Any reported allegations of harassment, discrimination or retaliation will be investigated promptly, thoroughly and impartially. The investigation may include individual interviews with the parties involved and, where necessary, with individuals who may have observed the alleged conduct or may have other relevant knowledge.

Confidentiality will be maintained throughout the investigatory process to the extent consistent with adequate investigation and appropriate corrective action.

Responsive Action Misconduct constituting harassment, discrimination or retaliation will be dealt with promptly and appropriately. Responsive action may include, for example, training, referral to counseling, monitoring of the offender and/or disciplinary action such as warning, reprimand, withholding of a promotion or pay increase, reduction of wages, demotion, reassignment, temporary suspension without pay or termination, as Leaders Staffing believes appropriate under the circumstances.

AMERICANS WITH DISABILITIES ACT POLICY STATEMENT Leaders Staffing is committed to complying with all applicable provisions of the Americans With Disabilities Act ("ADA"). 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. Consistent with this policy of nondiscrimination, the Company will provide reasonable accommodations to a qualified individual with a disability, as defined by the ADA, who has made the Company aware of his or her disability, provided that such accommodation does not constitute an undue hardship on the Company.

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Employees with a disability who believe they need a reasonable accommodation to perform the essential functions of their job should contact the Leaders Staffing Human Resources Department.

Leaders Staffing encourages individuals with disabilities to come forward and request reasonable accommodation.

Procedure for Requesting an Accommodation On receipt of an accommodation request, a member of the Leaders Staffing Human Resources Department will meet with you to discuss and identify the precise limitations resulting from the disability and the potential accommodation that Leaders Staffing might make to help overcome those limitations.

Leaders Staffing will determine the feasibility of the requested accommodation considering various factors, including, but not limited to the nature and cost of the accommodation, Leaders overall financial resources and organization, and the accommodation's impact on the operation of Leaders Staffing, including its impact on the ability of other employees to perform their duties and on Leaders Staffing’s ability to conduct business. Any client-impact and limitations also must be taken into consideration by Leaders Staffing for its employees who work at a client location.

Leaders Staffing will inform the employee of its decision on the accommodation request or on how to make the accommodation. If the accommodation request is denied, employees will be advised of their right to appeal the decision by submitting a written statement explaining the reasons for the request. If the request on appeal is denied, that decision is final.

The ADA does not require Leaders Staffing to make the best possible accommodation, to reallocate essential job functions, or to provide personal use items (i.e., eyeglasses, hearing aids, wheelchairs etc.).

An employee or job applicant who has questions regarding this policy or believes that he or she has been discriminated against based on a disability should notify his or her LSSC or the Leaders Staffing Human Resources Department. All such inquiries or complaints will be treated as confidential to the extent permissible by law.

RETALIATION IS PROHIBITED Leaders Staffing prohibits retaliation against any individual who reports discrimination, harassment, engages in any activity protected under the law, or participates in an investigation of discrimination, harassment or other protected activity. Retaliation against an individual is a serious violation of this policy and will be subject to disciplinary action, up to and including termination.

CONFIDENTIAL NATURE OF WORK All Leaders Staffing records and information relating to Leaders Staffing or its clients are confidential, and employees must, therefore, treat all matters accordingly. No Leaders Staffing or Leaders Staffing client-related information, including without limitation, documents, notes, files, records, oral information, computer files or similar materials (except in the ordinary course of performing duties on behalf of Leaders Staffing ) may be removed from any worksite without permission from Leaders Staffing . Additionally, the contents of Leaders Staffing’s records or information otherwise obtained in regard to business, customers or clients may not be disclosed to anyone, except where required for a business purpose. Employees must not disclose any confidential information, purposefully or inadvertently through casual conversation), to any 10 | P a g e

unauthorized person inside or outside the Company. Employees who are unsure about the confidential nature of specific information must ask their supervisor for clarification. Employees will be subject to appropriate disciplinary action, up to and including dismissal, for knowingly or unknowingly revealing information of a confidential nature. This policy is not intended to prevent an employee from disclosing his or her own personal wage, bonus or other benefit information, if he or she so chooses.

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EMPLOYMENT INITIAL EMPLOYMENT PERIOD Every new employee goes through an initial period of adjustment in order to learn about the Company and about his/her job. During this time the employee will have an opportunity to find out if he/she is suited to, and likes, his/her new position.

Additionally, the initial employment period gives the client/supervisor a reasonable period of time to evaluate his/her performance. The initial employment period is ninety (90) days.

During this time, the new employee may be discharged at any time if his/her LSSC concludes that he/she is not progressing or performing satisfactorily. Additionally, as is true at all times during an employee's employment with the Company, employment is not for any specific time and may be terminated at will, with or without cause and without prior notice.

At the end of the initial employment period, the employee and his/her supervisor may discuss his/her performance. Provided his/her job performance is "satisfactory" at the end of the initial employment period, he/she will continue in our employment as an at-will employee.

EMPLOYEE CATEGORIES Based on the conditions of employment, employees of Leaders Staffing fall into one or more of the following categories: Full-Time Part-Time Temporary Employees Full-Time An employee is a full-time employee if he or she averages at least 30 hours of service per week in a calendar month. A full-time employee can be classified as exempt or non-exempt. Exempt employees are classified as such if their job duties are exempt from the overtime provisions of the Federal and State Wage and Hour Laws. Exempt employees are not eligible for overtime pay.

Their salaries are calculated on a weekly basis.

Non-Exempt employees receive overtime pay in accordance with our overtime policy. Their salaries are calculated on an hourly basis.

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Part-Time Part-time employees work an average of less than 30 hours per week in a calendar month. Parttime employees also can be classified as exempt or non-exempt.

Temporary Employees A temporary employee is hired for temporary placement at an entity unrelated to Leaders Staffing.

Placement assignments vary in duration, hours or operation and job duties. A temporary employee may be a full-time or a part-time employee and may be exempt or non-exempt. A temporary employee retains the right to reject temporary placements offered to them by Leaders Staffing. Temporary employees may be subject to periods during which no offer of temporary placement is made.

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COMPENSATION PAYMENT OF SALARY Salary payment is made weekly for base salary due up to the pay date.

Paydays usually are every Thursday.

Overtime payment, which is included with the non-exempt employee's base salary payment, is also paid weekly with such payment covering hours worked in the prior week period. (For additional explanations see section on overtime policy and procedures.)

It is Leader Staffing’s preference that employee paychecks will be direct deposited into a bank account.

To activate direct deposit, a Direct Deposit Authorization form from your LSSC may be obtained and the employee should have his/her bank complete the form. The completed form must then be returned with a voided personal check to your LSSC. A statement of earnings is given each pay period to employees indicating: Gross Pay Statutory Deductions Voluntary Deductions The amount of Federal withholding is affected by the number of exemptions claimed on Form W-4, Employee's Withholding Allowance Certificate. If an employee's marital status changes or the number of exemptions previously claimed increases or decreases, a new Form W-4 must be submitted to the Leaders Staffing Human Resources Department.

OVERTIME PAY Depending on the work needs of the client, employees will be required to work overtime when requested to do so. Prior approval of a supervisor, however, is required before any non-exempt employee works overtime. Employees working overtime without approval will be subject to disciplinary action, up to and including termination.

Non-exempt full-time employees are eligible for additional pay for work performed beyond their regularly scheduled 40 weekly hours. Additional time is paid at a rate of 1 ½ times the employee's hourly rate.

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Each day, the time the employee starts and finishes work must be recorded on a time record. The employee's supervisor at his or her work location must approve his/her hours worked at the end of each week. All additional overtime worked must be approved by a supervisor each day.

Additionally, time records with overtime must be countersigned by the supervisor and must be in the Payroll Department by noon the Monday preceding payday in order for an employee's pay to be processed for payday.

TIME RECORDS The attendance of all employees is recorded daily by each employee and is submitted weekly with your supervisor’s signature of approval to your LSSC. Our attendance records are Company records, and care must be exercised in recording the hours worked, overtime hours, and absences. Employees are not to clock or sign in or out for other employees. Violations of this policy may result in appropriate disciplinary action, up to and including immediate discharge.

All non-exempt employees must record the time they arrived/departed, each day, on his/her time record. Each employee is responsible only for his/her own recordkeeping.

Once an employee clocks or signs in, work is to commence immediately. Failure to do so is considered falsification of timekeeping records.

If an employee forgets to clock or sign in or out, he or she must notify his or her supervisor and his or her LSSC immediately so the time may be accurately recorded for payroll.

Exempt employees are not required to sign in or out; however, business trips, vacation, sick and personal days must be recorded on the attendance sheet by the employee designated to monitor attendance.

UPDATING PERSONNEL RECORDS To keep necessary Company records up to date, it is extremely important that you notify your LSSC of any changes in: Name and/or marital status Address and/or telephone number # of eligible dependents W-4 deductions Person to contact in case of emergency

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TIME OFF PAID TIME OFF Paid Time Off for each employee is governed by the New Hire Orientation documents provided to each employee prior to starting work for each client. Please refer to those documents for details on paid time off. Additional questions should be directed to your LSSC. Holidays Refer to your LSSC for Details on annual holidays.

Jury Duty A leave of absence for jury duty will be granted to any employee who has been notified to serve.

Upon receipt of the notice to serve jury duty, the employee should immediately notify his/her supervisor, as well as your LSSC. Additionally, a copy of the notice to serve jury duty should be attached to the employee's attendance record for attendance purposes.

Upon the employee's return, the employee must notify your LSSC and must submit a signed Certificate of Jury Service indicating the number of days served.

If the jury duty falls at a time when the employee cannot be away from work, the Company may request that the court allow the employee to choose a more convenient time to serve if he/she makes a request in accordance with the court's procedures. The employee must cooperate with this request.

TIME OFF WITHOUT PAY Military Leave/USERRA An employee who is a member of the United States Army, Navy, Air Force, Marines, Coast Guard, National Guard, Reserves or Public Health Service will be granted an unpaid leave of absence for military service, training or related obligations in accordance with applicable law.

Employees on Military leave may choose to substitute their vacation or other paid time off while on Military Leave. At the conclusion of the leave, upon the satisfaction of certain conditions, an employee generally has a right to return to the same position he or she held prior to the leave or to a position with like seniority, status and pay that the employee is qualified to perform.

Continuation of Health Benefits During a military leave of less than 31 days, an employee is entitled to continued group health plan coverage under the same conditions as if the employee had continued to work.For military leaves of more than 30 days, an employee may elect to continue his/her health coverage for up to 24 months of uniformed service, but may be required to pay all or 16 | P a g e

part of the premium for the continuation coverage Requests for Leave Leave for Active or Reserve Duty Upon receipt of orders for active or reserve duty, an employee should notify his/her supervisor, as well as his or her LSSC, as soon as possible, and submit a copy of the military orders to his/her supervisor and his or her LSSC (unless he/she is unable to do so because of military necessity or it is otherwise impossible or unreasonable).

Leave for Training and Other Related Obligations (e.g., fitness for service examinations) Employees will also be granted time off for military training (normally 14 days plus travel time) and other related obligations, such as for an examination to determine fitness to perform service. Employees should advise their supervisor and/or Leaders Staffing head of their training schedule and/or other related obligations as far in advance as possible.

Return from Military Leave Notice Required Upon return from military service, an employee must provide notice of or submit an application for reemployment in accordance with the following schedule: 1) An employee who served for less than 31 days or who reported for a fitness examination, must provide notice of reemployment at the beginning of the first full regular scheduled work period that starts at least eight hours after the employee has returned from the location of service.

2) An employee who served for more than 30 days, but less than 181 days, must submit an application for reemployment no later than 14 days after completing his/her period of service, or, if this deadline is impossible or unreasonable through no fault of the employee, then on the next calendar day when submission becomes possible.

3) An employee who served for more than 180 days must submit an application for reemployment no later than 90 days after the completion of the uniformed service.

An employee who has been hospitalized or is recovering from an injury or illness incurred or aggravated while serving must report to your LSSC (if the service was less than 31 days) or submit an application for reemployment (if the service was greater than 30 days), at the end of the necessary recovery period (but which may not exceed two years).

Required Documentation An employee whose military service was for more than 30 days must provide documentation within two weeks of his/her return (unless such documentation does not yet exist or is not readily available) showing the following: (i) the application for reemployment is timely (i.e. submitted within the required time period); (ii) the period of service has not exceeded five years; and (iii) the employee received an honorable or general discharge.

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LEAVE UNDER THE FAMILY AND MEDICAL LEAVE ACT ("FMLA") The Family and Medical Leave Act (FMLA) provides eligible employees with up to 12 workweeks of unpaid leave for certain family and medical reasons during a 12 month period, or 26 weeks for Military Care Giver Leave. During this leave, an eligible employee is entitled to continued group health plan coverage as if the employee had continued to work. At the conclusion of the leave, subject to some exceptions, an employee generally has a right to return to the same or to an equivalent position.

Eligibility To be eligible to take an FMLA leave, an employee must meet all of these criteria: •

·The employee must have been employed by the Company for at least 12 months.

Any portion of a week that the employee is on the payroll counts as a full week for FMLA eligibility. Employment does not have to have been continuous. Hourly employment with the Company counts toward fulfilling this requirement.

•

Separate periods of employment in which the break in service exceeds seven (7) years will not be used to determine FMLA eligibility.

•

For the 12 months immediately preceding the first day of the FMLA leave, the employee must have worked at least 1,250 hours. These hours must be actual work hours, not compensated hours. Hours using any type of paid time off benefits or holiday time do not count.

•

Must not have exceeded 12 weeks of FMLA leave during the preceding 12 month period.

USERRA Time in the military service covered under the Uniformed Services Employment and Reemployment Rights Act (USERRA) will count towards fulfilling the length of employment and hours of work requirements to be eligible for an FMLA leave.

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Qualifying Reasons For FMLA Leave The following reasons qualify an employee for FMLA: 1. Birth of a child and to care for a newborn child of the employee, spouse as defined by Indiana law, 2. Placement with the employee of a child through adoption or foster care of a child 3. Care for any of the following who has a serious health condition: the employee's spouse, the employee’s child under 18, or the employee’s parent 4. Care for the employee's child 18 or older who has a serious health condition and is incapable of self-care because of a mental or physical disability.

5. A serious health condition that renders the employee unable to perform the functions of his or her job 6. A qualifying exigency which occurs while the employee’s spouse, child or parent is on covered active duty or has been notified of an impending call or order to covered active duty in the Armed Forces. The term covered active duty means duty during deployment to a foreign country. Qualifying exigencies to manage the service member’s affairs are described on the DOL form Certification of Qualifying Exigency for Military Family Leave.

Leave Period-for all leave, except Military Caregiver Leave 1.

An eligible employee may take up to 12 workweeks of leave during a 12-month period.

The 12-month period is a “rolling” 12-month period. The 12 month period is measured backward from the date an employee uses any FMLA leave. Under the ‘‘rolling’’ 12-month period, each time an employee takes FMLA leave, the remaining leave entitlement would be the balance of the 12 weeks which has not been used during the immediately preceding 12 months.

2. If the purpose of the leave is to care for a sick family member or one's own serious health condition, the employee may take the leave intermittently or by means of a reduced work schedule.

3. Such leaves are subject to the qualifications and limitations set forth in the FMLA federal regulations.

•

Under certain circumstances, Leaders Staffing may place employees who are on an intermittent leave or a reduced work schedule in another position with equivalent pay and benefits. This placement is considered to be a temporary transfer and should be discussed with the Leaders Staffing Human Resources Department. Such employees must make a reasonable effort to schedule the intermittent leave, so it does not disrupt operations.

4. For the purposes of determining the amount of leave taken by an employee on FMLA, the following days will be counted: (1) the employees scheduled shift; (2) holidays that occur within a week, if that entire week has been taken by an employee for FMLA; and (3) holidays that the employee was scheduled or expected to work.

5. When an employee is on an FMLA leave to care for a family member and the leave is 20 | P a g e

terminated by the death of the family member, the employee will be granted the normal time off for funerals/bereavement as described in the respective policy.

Proper Notice Of FMLA By Employee Employees must provide at least 30 days advance notice of an anticipated FMLA leave by notifying the Leaders Staffing Human Resources Department.

It is understood that under some circumstances it is not practical to provide 30 days of advanced notice. In these cases, employees must provide FMLA notice to the Human Resources Department as soon as practicable. At the very least, the employee must provide, on the date of the absence, his or her LSSC or the Human Resources Department sufficient preliminary information for the reason behind the absence. Employees must provide the Leaders Staffing Human Resources Department with sufficient information and must cooperate fully with the Leaders Staffing Human Resources Department or risk having the FMLA delayed or denied.

If employees do not give proper notice of a clearly foreseeable leave or does not cooperate fully with Leaders Staffing, Leaders Staffing can delay the leave for up to thirty (30) days after receiving notice of the need for an FMLA leave.

Certification For Leave For Serious Health Conditions Or Qualifying Exigencies Serious Health Conditions In cases where an FMLA leave is to care for the serious health condition of the employee, or a spouse, child as identified above, or parent of the employee, the employee must provide medical certification on the applicable Medical Certification form. The Leaders Staffing Human Resources Department should request the certification at the time employee gives notice of leave or within five (5) business days thereafter. Once requested, it is the employee’s responsibility to provide the Leaders Staffing Human Resources Department with the medical certification within 15 calendar days.

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•

If the certification is incomplete or unclear, the employee is to be given 7 additional calendar days to provide more complete information.

•

If the certification is still insufficient, the Leaders Staffing Human Resources Department may contact the employee’s health care provider for clarification and/or authentication of the employee’s medical certification.

•

The Leaders Staffing Human Resources Department may require a second opinion from a health care provider designated by Leaders Staffing .

Leaders Staffing will pay the cost of the second opinion, if required.

•

If there is a difference between the medical certification and the second opinion, the Leaders Staffing Human Resources Department may require a third opinion from a mutually agreeable provider. Again, Leaders Staffing will pay the cost of the third opinion.

•

Employees may be asked to recertify the need for the FMLA after 30 days from receipt of past medical certification, in less than 30 days in certain circumstances such as a change in the employee's condition, or every six (6) months.

•

All medical certifications and related information that describe the health or medical history or condition of the employee or family members must be handled as confidential medical information. Such information must be stored in a locked file separate from the personnel file.

•

When certification is requested, it is the employee’s responsibility to provide the employer with timely, complete, and sufficient certification and failure to do so may result in delay or denial of FMLA leave.

Qualifying Exigencies In cases where an FMLA leave is for a qualifying exigency, the employee must fill out a copy of the DOL form Certification of Qualifying Exigency for Military Family Leave. The Certification can be obtained from the Leaders Staffing Human Resources Department. The completed form along with the documentation that the employee provides will be used to determine if the leave request qualifies and the length of the leave.

When certification is requested, it is the employee’s responsibility to provide the employer with timely, complete, and sufficient certification and failure to do so may result in delay or denial of FMLA leave.

Military Caregiver Leave Military Caregiver Leave is FMLA leave to care for a covered service member who has suffered serious injury or illness in the line of covered active duty. The term covered active duty means duty during deployment to a foreign country.

A covered service member means a current member of the Armed Forces, National Guard or Reserves who is undergoing medical treatment, recuperation, therapy, is in outpatient status, or is otherwise on the temporary disabled list for a serious injury or illness or is a veteran undergoing

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treatment, recuperation, or therapy for a serious injury or illness and who was a member of the Armed Forces, National Guard, or Reserves, at any time during a period of 5 years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy.

An employee who has a qualified family relationship with a covered service member may take up to 26 weeks of leave during a single 12-month period. A qualified family relationship is a spouse, parent, child or next of kin. Contact the Leaders Staffing Human Resources Department to determine if a qualified family relationship exists.

•

The leave entitlement described in this paragraph applies on a per-covered service member, per-injury basis, such that an eligible employee may be entitled to take more than one leave if the leave is to care for a different covered service member or to care for the same covered service member with a subsequent serious illness or injury.

•

An employee may have an FMLA leave for up to 12 weeks for one of the qualifying reasons previously covered above in the same 12-month period in which an FMLA leave is taken to care for a covered service member.

•

No more than 26 weeks total of FMLA leave may be taken within any single 12-month period. The 12-month period is a rolling 12 months, as described previously.

The Leaders Staffing Human Resources Department should provide the employee with a copy of the DOL Form Certification for Serious Injury or Illness of Covered Service member for Military Family Leave to be completed by the employee and an authorized military health care provider of the covered service member. The employee may present certain military certifications such as “Invitational Travel Orders” or “Invitational Travel Authorizations” for purposes of certification that must be accepted by the Leaders Staffing Human Resources Department.

•

Recertification and second or third opinions are not permitted.

•

If the certification is incomplete or unclear, the employee is to be given 7 additional calendar days to provide more complete information.

•

The Leaders Staffing Human Resources Department or a person designated by Leaders Staffing may contact the covered service member’s health care provider for clarification and/or authentication of the medical certification.

•

In all instances when certification is requested, it is the employee’s responsibility to provide the employer with complete and sufficient certification and failure to do so may result in delay or denial of FMLA leave.

All questions should be directed to your LSSC or the Leaders Staffing Human Resources Department.

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FMLA and Time Off Accruals Run Concurrently Beginning on the first day of the leave, staff must use all time off accruals as part of the 12-week FMLA leave.

•

An employee’s compensatory time must be used prior to the use of any other paid time off accruals.

•

The requirement that an employee must use paid time off accruals to cover FMLA leave applies to any FMLA leave, including a leave that is taken either intermittently or through a reduced work schedule.

•

All time missed in a work day due to an FMLA must be charged to paid time off accruals.

When the paid time off accruals are exhausted, the remainder of the FMLA leave is without pay.

This time and the time charged to accrued time off benefits--are to be recorded on the attendance record as FMLA leave.

Reinstatement If Leaders Staffing requires a fitness for duty to be completed prior to an employee’s reinstatement, the Leaders Staffing must provide FMLA Form #3 Intent to Return and Fitness for Duty/Medical Release and a list of the essential functions when the leave is requested.

At the conclusion of the leave, the employee will be returned to the same position held at the time the leave began or to an equivalent position with equivalent pay, benefits, and working conditions, e.g., the same shift or the same or an equivalent work schedule.

•

Employees on an FMLA leave are still subject to a reduction in force or reassignment that would have occurred otherwise had the employee been working.

Infrequently, the reinstatement of a Key Employee would result in "substantial and grievous economic injury" to Leaders Staffing. In such cases, your LSSC must approve an exception to the reinstatement rule. Leaders Staffing WILL inform the Key Employee--before the leave begins--that reinstatement might not be available when he or she returns to work.

•

Key Employees are professional who are among the highest ten percentcompensated employees at Leaders Staffing.

Resolution Of Problems Employees have the right to a prompt investigation and response to a question or problem concerning the application of this policy and the Family and Medical Leave Act of 1993.

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Posting Of FMLA Information about the FMLA will be provided to all employees by posting notices in conspicuous places within the Leaders Staffing facilities and the facilities of the client to where employee reports to work.

Information is available from your LSSC or the Leaders Staffing Human Resources Department Also, information concerning the Family and Medical Leave Act of 1993 will be included in any new editions of handbooks or other publications that describe employee benefits or contain policies and practices that are of general interest to employees.

Leaders Staffing Designation And Approval Of FMLA It is Leaders Staffing’s responsibility to designate any absence that meets the eligibility requirements of the FMLA as family/medical leave. The designation of FMLA will occur either as a result of an employee request for FMLA leave or when Leaders Staffing becomes aware that the employee's absence qualifies as FMLA leave, even though the employee may not have requested FMLA leave.

Within five business days of receipt or initiation of an FMLA Leave Notice of Designation, Request, and Approval, the Leaders Staffing Human Resources Department is to notify the employee whether the leave qualifies and will be counted as FMLA leave. Leaders Staffing will complete the applicable section of the bottom of this form. Copies will be retained in Leaders Staffing FMLA files. An employee's rights to FMLA may be denied or delayed only for the following reasons: •

timely advance notice of foreseeable leave is not given;

•

timely submission of required and sufficient medical certification is not made by the employee;

•

the employee fails to provide required fitness to return to work certification;

•

the employee expresses an intention not to return to work;

•

the employee fraudulently requests or obtains FMLA;

•

the employee is employed elsewhere while on FMLA leave without the written approval of Leaders Staffing

An FMLA leave will start immediately if an FMLA-eligible employee who is under Worker's Compensation for a work-related injury declines a modified position assignment offered under Worker's Compensation.

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Retroactive Designation If Leaders Staffing fails to designate an employee’s eligible absence as FMLA, it may retroactively designate the absence as FMLA leave if: 1) the employee has been given notice and; 2) either the retroactive designation does not harm the employee, or the Leaders Staffing and employee have mutually agreed to retroactively designate the absence as FMLA. FMLA Leave Run Concurrently with Disability Leave Any FMLA leave to which an employee may be entitled runs concurrently with time off granted under any disability policy or leave.

Sanctions An employee who fraudulently obtains an FMLA leave is subject to disciplinary action, up to and including termination.

Additional Information For further information or clarification about FMLA leave, please contact your LSSC or the Human Resources Department.

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STATUTORY EMPLOYEE BENEFITS DISCLAIMER Please note that nothing contained in the benefit plans described herein shall be held or construed to create a promise of employment or future benefits, or a binding contract between the Company and its employees, retirees or their dependents, for benefits or for any other purpose. All employees shall remain subject to discharge or discipline.

For complete information regarding any the benefits below, please contact your LSSC.

BREASTFEEDING POLICY Leaders Staffing supports breastfeeding mothers by accommodating the mother who wishes to express breast milk during her workday when separated from her newborn child. The provisions of this Policy meet the requirements of the Fair Labor Standards Act and the State of Indiana as those laws relate to breaks for nursing mothers.

For up to one year after the child’s birth, any employee who is breastfeeding her child will be provided reasonable break times to express breast milk for her newborn.

Please contact the Leaders Staffing Human Resources Department so that Leaders Staffing may make the necessary arrangements to accommodate your needs.

Breaks of more than 20 minutes in length will be unpaid, and the employee should indicate this break period on her time record.

WORKERS' COMPENSATION BENEFITS Leaders Staffing is covered under statutory state Workers' Compensation Laws. Should you sustain a work-related injury, you must immediately notify your supervisor and your LSSC. Should your injury require the attention of a doctor, you can obtain a list of approved physicians.

(Your LSSC will give you the list). Only In the case of an emergency should you receive assistance in going to the nearest hospital emergency room for treatment.

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ON THE JOB

ATTENDANCE, PUNCTUALITY AND DEPENDABILITY Attendance & Punctuality Employees are required to report for work punctually as scheduled. Management reserves the right to require overtime.

Excessive tardiness or poor attendance disrupts workflow and customer service and will not be tolerated. Unauthorized or excessive absences or tardiness will result in disciplinary action, up to and including termination.

Scheduled overtime or voluntary overtime that an employee has committed to that has been missed will be counted as an absence according to this policy.

Poor attendance can come in many forms. Below is a list, although not exhaustive, of attendance issues which will subject an employee to disciplinary action, up to and including termination: •

Tardy: A tardy is considered arriving late from the employee’s designated work scheduled.

This is to include breaks and lunches. (1-minute or more).

•

Leaving Early: An employee who departs from work earlier than the employee’s designated work schedule. This is to include breaks and lunches.

•

Absence: An absence is being absent from work ½ or more of the employee’s designated scheduled workday. Absence is to include any accepted and scheduled overtime.

•

Unscheduled Time Off: Time off taken without providing Leaders Staffing 24 hour advanced notice of a tardy or absence. The application of vacation hours to unscheduled time off does not convert unscheduled time off to scheduled time off.

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•

No Call/No Show: A No Call/No Show is failure to notify Leaders Staffing in the event of an absence tardy, no later than 30 minutes after the employee’s scheduled shift. An employee will be terminated for a No Call/No Show.

or Call in

Employees must call the Leaders Staffing attendance line to report a tardy or absence no later than one (1) hour before your scheduled shift begins. Employee will still be deemed tardy or absent, regardless of whether they follow the call-in procedure. However, failing to follow the callin policy will result in additional disciplinary action, up to and including termination.

If you are leaving a message, please include the time you are calling, scheduled shift, your immediate supervisor, and your reason for absence. You must call the attendance line each day you are absent.

Call In Number:

Fort Wayne – (260) 490-5627 Kendallville – (260) 347-2008 Auburn – (260) 927-0501

Vacation Hours Applied to All Absences An employee with vacation hours will automatically have those hours applied to absences, leave early and tardy situations, except where impermissible by law. A minimum of two (2) vacation hours will be applied to all absences, leave earlies and tardies. The application of vacation hours to unscheduled time off does not convert unscheduled time off to scheduled time off and the employee is still subject to the Attendance & Punctuality Policy and may be disciplined under that policy, depending on circumstances.

EMPLOYEES MAY ALSO BE SUBJECT TO AN ATTENDANCE POLICY ON-SITE AT THEIR SPECIFIC WORK LOCATION WITH ADDITIONAL REQUIRMENTS. EMPLOYEES MUST FOLLOW ALL ON-SITE CLIENT POLICIES. ANY INCONSISTENCIES WITH AN ON-SITE CLIENT POLICY WILL BE CONSTRUED IN FAVOR OF THE ON-SITE POLICY AND SHOULD BE ADDRESSED WITH LEADERS STAFFING IMMEDIATELY. Point System •

Any point system at the on-site client location will control all Leaders Staffing employees’ employment.

•

In the event there is no client point system, Leaders Staffing employees will follow a point system based on their hire date. Employees receive 3 points for use for absences or tardies on their one (1) year anniversary date. Each year on the anniversary date, 3 points are given. Points cannot be rolled over from year to year. At the exhaustion of three (3) points, employees will be terminated.

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•

Loss of points for absences are calculated as follows: 1 point: for every full day missed or working less than ½ of a scheduled or accepted shift. ½ point: for arriving late, leaving early, or not returning from breaks/lunch on time.

½ point: for failure to clock in or out for starting/quitting times including breaks/lunches.

DRUG & ALCOHOL ABUSE OBJECTIVE This policy establishes guidelines to provide a safe, healthy and secure work environment for employees and other individuals doing business with Leaders Staffing.

SCOPE OF POLICY All individuals and employees are subject to this policy while they are employed by and/or in facilities or on property owned, controlled or operated by Leaders Staffing (“Leaders Staffing premises”).

PROCEDURES It is the policy of Leaders Staffing, to strictly prohibit the manufacture, distribution, dispensing, possession, use and/or sale of a controlled substance, including any of the following items by any individuals while employed by and/or on Company premises: •

Illegal or unauthorized drugs (including excessive quantities of prescription or over-thecounter drugs) and any other chemical substances that may affect an individual's mood, senses, responses, motor functions or alter or affect a person's perception, performance, judgment, reactions or senses.

•

Prescription or over-the-counter drugs that may adversely influence performance or behavior when taken in prescribed quantities.

•

Unless specifically authorized by Leaders Staffing , the carrying, use or possession of the following items is also prohibited while inside Company facilities: o

Firearms, explosives, fireworks or ammunition.

o

Alcohol or intoxicating beverages.

o

Drugs-related paraphernalia.

It is also the policy of Leaders Staffing, to strictly prohibit employees and others working on Company premises from reporting to work or working under the influence of detectable levels of unauthorized or illegal drugs and/or alcoholic beverages.

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EXEMPTIONS AND REASONABLE ACCOMMODATIONS Leaders Staffing recognizes that many prescription and over-the-counter medications may fall within the above prohibition. An employee desiring to use any medications while on duty or on company premises should make a prior request to the Human Resources Manager for an exemption from this policy.

DEFINITIONS Area testing is the testing of all covered persons present at a location or in a geographic area.

Covered persons are all persons employed by or who are in facilities or on property owned, controlled or operated by Leaders Staffing.

Company doctor is any licensed physician designated by Leaders Staffing to act on its behalf.

Leaders Staffing doctor will review any positive laboratory results generated by Leaders Staffing’s drug testing plan and assist Leaders Staffing in interpreting the results on the drug test.

Covered premises includes all property, offices, facilities, land, buildings, structures, fixtures, installations, automobiles, trucks and all other vehicles and equipment, whether owned, leased, rented or used by Leaders Staffing , including its customers, affiliates and subsidiaries.

Company premises shall also refer to all customers' properties and any other work locations, or mode of transportation to and from those locations, while engaged in the course and scope of employment with Leaders Staffing, and/or its subsidiaries.

Drug-related paraphernalia is any material or equipment used or designed for use in testing, packaging, storing, injecting, ingesting, inhaling or otherwise introducing into the human body any illegal or unauthorized drugs covered by this policy.

Drugs, for the purposes of this policy, include alcohol, legal and illegal controlled substances, narcotics, hallucinogens, depressants, stimulants, inhalants and other substances capable of creating or maintaining effects on one's physical, emotional or mental state, such as marijuana, cocaine, opiates, phencyclidine and amphetamines. Any such drugs may be included in the testing program.

Illegal drugs are drugs for which the use, sale or possession is prohibited by law.

TESTING PROGRAM To meet the objectives of this policy, Leaders Staffing will maintain a drug-testing program that includes the following. •

Notification.

The testing program was implemented January 10, 2012 •

Pre-Hire Drug Screen.

Pre-employment drug testing is a part of the employment process. A test will be required for all final candidates and no applicant testing positive will be employed without medical support for use of substance. This includes all employment and re-employment, whether for temporary, part-time, or full-time positions.

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•

For-cause testing.

When a supervisor observes behavior or performance problems that could adversely affect an individual's personal safety or the personal safety of others, the supervisor, with the concurrence of another supervisor, will notify the Human Resources Manager to determine whether a drug test for cause should be conducted.

If a drug test for cause becomes necessary for an employee, the employee will be immediately suspended without pay until a full evaluation has taken place and an appropriate course of action is determined. No prior notice is required to test for cause.

•

Post-accident testing.

Leaders Staffing may send an employee for a drug alcohol screening test if an impairment of judgment, coordination or physical or mental ability could have caused the accident. Leaders Staffing need not specifically suspect drug or alcohol use or impairment before testing.

•

Area testing.

Leaders Staffing may also conduct an area test. An area test may be used where there is an indication that drugs may be in use or there is a potential for damage caused by drug use.

•

Confirmation test. o

A confirmation test will be conducted on every positive test result before the testing laboratory notifies Leaders Staffing . A confirmation test is a test conducted with greater sensitivity for the identification and level of any drug (except alcohol) present in the original sample provided.

o

Testing for alcohol generally will be through a calibrated breath scan instrument by a person trained in the calibration and operation of the instrument. If the instrument detects a blood alcohol level of .02 or greater, the employee will be considered impaired.

o

The effects of the various blood alcohol levels are: o

An alcohol test of .02 but less than .08 will result in immediate removal from the work site and a minimum of a one-day suspension without pay.

o

An alcohol test at .08 or above will be considered a drug test failure with discipline to be determined according to the Leaders Staffing Progressive Discipline Policy, which will result in discipline up to and including termination.

Nothing in this policy limits Leaders Staffing’s rights to determine what disciplinary action, including termination, is appropriate in the event any level of alcohol is found.

•

Testing laboratory.

All drug tests will be analyzed by a laboratory certified by the National Institute on Drug Abuse under the U.S. Department of Health and Human Services.

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•

Testing procedures. o

If an employee's drug test result is confirmed to be positive (in excess of the levels established by applicable federal or state regulations or Company standards), the testing laboratory will notify Leaders Staffing of the test result.

o

Leaders Staffing doctor or other Company representative may contact the employee to determine whether there is a legitimate explanation for the confirmed positive test result.

o

Only those persons with a “need to know” will be provided information regarding a drug test and/or its results, consequences and status.

Nothing in these procedures or this policy in any way limits Leaders Staffing’s right to take disciplinary action, including termination, as a result of a confirmed positive drug test of an employee.

•

Refusal to test.

Any individual refusing to be tested will be deemed to have failed the drug test and will be removed from Company premises. Employees will be subject to disciplinary action, up to and including termination of employment.

SEARCH OF COMPANY PREMISES Leaders Staffing reserves the right to conduct searches of all covered premises at any time and employees are required to cooperate with such search.

MANDATED DRUG TESTING Federal law and regulations require specific drug testing for certain categories of employees.

Leaders Staffing will comply with all such federally mandated testing, including conducting: •

Pre-hire

•

For cause.

•

Post-accident testing.

GENERAL PRACTICES • Company and management responsibility: Every supervisor is required to provide a safe and effective working environment and to support the well-being of each employee through awareness, education and appropriate training of drug and alcohol issues.

• Disciplinary action: Employees violating this policy will be subject to disciplinary action up to and including termination.

Employees charged with or convicted of an unlawful drug activity:

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Any employee who is convicted of an activity involving an illegal drug either on or off Company premises is in violation of this policy. Any employee who is convicted under a criminal drug statute must notify Leaders Staffing, in writing of such conviction no later than five calendar days after the conviction. In deciding what disciplinary action to take, Leaders Staffing may take into consideration: The nature of the offense charged.

The safety requirements of the employee's present job assignment.

The employee's record with Leaders Staffing.

The employee's statement of facts.

The disposition of the charge.

The impact of the offense on Leaders Staffing and Other relevant factors.

Leaders Staffing may take disciplinary action before and/or after final disposition of the charges. o o o o o o o

•

Leaving the work site:

Leaders Staffing will arrange transportation for any employee who feels that they may be impaired from the use of drugs or alcohol.

•

Medication:

Any employee taking medication should consult a medical professional to determine whether the drug may affect his or her personal safety or ability to perform the essential functions of the job and should advise his or her supervisor of any job limitations. Upon notification of job limitations, Leaders Staffing will make reasonable efforts to accommodate the limitation.

•

On-the-job drug use, sale, possession or distribution:

•

Any employee found to use, sell, possess or distribute any illegal or unauthorized drugs (including excessive quantities of prescription or over-the-counter drugs) while on Leaders Staffing premises, performing Company-related duties, or while operating any Company equipment, is subject to disciplinary action, up to and including termination of employment.

Any suspected illegal drug confiscated will be turned over to the appropriate law enforcement agency.

Limitation: To the extent any federal, state or local law, rule or regulation limits or prohibits the application of any provision of this policy, then to the minimum extent necessary and only for that geographical area, this policy is deemed to be amended to be in compliance.

APPEARANCE AND CONDUCT Leaders Staffing expects employees to maintain a neat, well-groomed appearance at all times.

For specific dress codes, please refer to the rules established by the client where you are assigned or contact your LSSC for guidance.

Leaders Staffing requires order and discipline to succeed and to promote efficiency, productivity and cooperation among its employees. The orderly and efficient operations of Leaders Staffing require that employees maintain proper standards of conduct at all times.

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Employees who fail to maintain proper standards of conduct toward their work, their co-workers or the Company's customers, or who violate any of the Company's policies, are subject to appropriate disciplinary action, up to and including discharge.

All instances of misconduct should be referred to your LSSC.

VIOLENCE IN THE WORKPLACE Leaders Staffing strongly believes that all employees should be treated with dignity and respect.

Acts of violence will not be tolerated. Any instances of violence must be reported to the employee's worksite supervisor and your LSSC. All complaints will be fully investigated.

Leaders Staffing will promptly respond to any incident or suggestion of violence. Violation of this policy will result in disciplinary action, up to and including immediate discharge.

ACCIDENTS AND EMERGENCIES Maintaining a safe work environment requires the continuous cooperation of all employees.

Leaders Staffing strongly encourages employees to communicate with their LSSC, fellow employees, and their worksite supervisor regarding safety issues.

All employees will be provided care, first-aid and emergency service, as required, for injuries or illnesses while employed by Leaders Staffing. Employees should contact their worksite supervisor, the nearest supervisor, and/or 911 in the event of an accident or emergency.

If an employee is injured on the job, Leaders Staffing provides coverage and protection in accordance with the Worker's Compensation Law. When an injury is sustained, it must be reported immediately at the time of the accident to the employee's worksite supervisor and the employee’s LSSC Failure to immediately report accidents is a serious matter as it may preclude an employee's coverage under Worker's Compensation Insurance.

OPEN DOOR POLICY Leaders Staffing promotes an atmosphere whereby employees can talk freely with members of the Leaders Staffing management staff. Employees are encouraged to openly discuss with their LSSC so that appropriate action may be taken. Leaders Staffing is interested in all of our employees' success and happiness with us. We, therefore, welcome the opportunity to help employees whenever feasible.

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E-MAIL AND INTERNET POLICY Every Leaders Staffing employee is responsible for using the electronic mail (E-mail) system, to which he or she is given access, properly and in accordance with this policy. Any questions about this policy should be addressed to your LSSC. The E-mail system to which you have access is either the property of Leaders Staffing or, if you work at an alternative site, the property of the client of Leaders Staffing. It has been provided by Leaders Staffing and/or its client for use in conducting company business. Use of E-mail during business hours should be limited to the purpose of conducting company business. All communications and information transmitted by, received from, or stored in this system are company records and property of the owner of the computer and email system. Employees have no right of personal privacy in any matter stored in, created, received, or sent over the Leaders Staffing or client mail system. These systems may be monitored at any time without an employee’s permission.

Even if employees use a password to access the E-mail system, the confidentiality of any message stored in, created, received, or sent from the Leaders Staffing or client E-mail system still cannot be assured. Use of passwords or other security measures does not in any way diminish Leaders Staffing’s or the client’s rights to access materials on their systems, or create any privacy rights of employees in the messages and files on the systems. Any password used by employees must be revealed to Leaders Staffing as E-mail files may need to be accessed in an employee's absence.

Employees should be aware that deletion of any E-mail messages or files will not truly eliminate the messages from the system. All E-mail messages are stored on a central back-up system in the normal course of data management.

Even though Leaders Staffing has the right to retrieve and read any E-mail messages, those messages should still be treated as confidential by other employees and accessed only by the intended recipient. Employees are not authorized to retrieve or read any E-mail messages that are not sent to them. Any exception to this policy must receive the prior approval of Leaders Staffing management.

Leaders Staffing’s policies against sexual or other harassment apply fully to the E-mail system, and any violation of those policies is grounds for discipline up to and including discharge.

Therefore, no E-mail messages should be created, sent, or received if they contain intimidating, hostile, or offensive material concerning race, color, religion, sex, age, national origin, disability or any other classification protected by law.

The E-mail system shall not be used to send (upload) or receive (download) copyrighted materials, trade secrets, proprietary financial information, or similar materials without prior authorization from Leaders Staffing management. Employees, if uncertain about whether certain information is copyrighted, proprietary, or otherwise inappropriate for transfer, should resolve all doubts in favor of not transferring the information.

Leaders Staffing recognizes that the Internet may have useful applications to Leaders Staffing’s business.,. Employees must receive approval prior to engaging in any internet usage. Absent such approval, employees may not access the Internet using Leaders Staffing’s computer systems or client computer systems during business hours for any reason. "Surfing the Net" is not a legitimate business activity.

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SOCIAL MEDIA POLICY Leaders Staffing management approval is required before anyone can post any information on any social media outlet, chat room, blog, or any type of commercial on-line systems or the Internet during work hours. Any approved material that is posted should obtain all proper copyright and trademark notices. Absent prior approval from Leaders Staffing to act as an official representative of Leaders Staffing, employees posting information must not represent themselves as speaking on behalf of the company and include a disclaimer in that information stating, "Views expressed by the author do not necessarily represent those of Leaders Staffing.”

Violations of Leaders Staffing’s E-mail and Social Media policies may result in disciplinary action up to and including discharge. Leaders Staffing reserves the right to modify this policy at any time, with or without notice.

EMPLOYER AND CUSTOMER INFORMATION AND PROPERTY The protection of Leaders Staffing business information, property and all other Company assets are vital to the interests and success of Leaders Staffing. No Leaders Staffing related information or property, including without limitation, documents, files, records, computer files, equipment, office supplies or similar materials (except in the ordinary course of performing duties on behalf of Leaders Staffing) may be removed from the Company's premises. In addition, when an employee leaves Leaders Staffing, the employee must return to Leaders Staffing all Company related information and property that the employee has in his/her possession, including without limitation, documents, files, records, manuals, information stored on a personal computer or on a computer disc, supplies, and equipment or office supplies.

All employees have a responsibility to not misappropriate proprietary information (which includes drawings, manufacturing processes and equipment, customer and supplier names and requirements, business plans, financial and marketing information, other business and technical information, and documents, data and electronic storage media which relate to those items) and patents of the Company and its customers.

All employees may be exposed to the Company’s, or its customers’, proprietary information in confidence and are expected to maintain that information in confidence and not disclose or use it other than for the Company’s or its customers’ business benefit. Inventions and ideas relating to the Company’s or its customers’ business, or developed using the Company or its customers’ time, materials, information, or facilities, belong to the Company or its customers and should not be otherwise used or commercialized by employees or shared with unauthorized outside parties.

Violation of this policy is a serious offense and will result in appropriate disciplinary action, up to and including discharge.

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VOICE MAIL POLICY Every Leaders Staffing employee is responsible for using the Voice Mail system to which they have access properly and in accordance with this policy. Any questions about this policy should be addressed to the employee’s LSSC. The Voice Mail system to which employees are given access are the property of Leaders Staffing or the property of the client of Leaders Staffing. It has been provided by Leaders Staffing and/or its client for use in conducting company business during business hours. All communications and information transmitted by, received from, or stored in this system are company records and property of Leaders Staffing. The Voice Mail system is to be used for company purposes only.

Use of the Voice Mail system for personal purposes is prohibited during business hours.

Employees have no right of personal privacy in any matter stored in, created, received, or sent over the Leaders Staffing Voice Mail system.

Leaders Staffing , in its discretion, reserves and may exercise the right to monitor, access, retrieve, and delete any matter stored in, created, received, or sent over the Voice Mail system to which employees have access, for any reason without the permission of any employee and without notice.

Even if employees use a password to access the Voice Mail system, the confidentiality of any message stored in, created, received, or sent from the Leaders Staffing Voice Mail system or client system still cannot be assured. Use of passwords or other security measures does not in any way diminish Leaders Staffing’s rights to access materials on its system, or create any privacy rights of employees in the messages and files on the system. Any password used by employees must be revealed to Leaders Staffing as Voice Mail messages may need to be accessed by the Company in an employee's absence.

Employees should be aware that deletion of any Voice Mail messages or files will not truly eliminate the messages from the system.

Even though Leaders Staffing reserves the right to retrieve and read any Voice Mail messages, those messages should still be treated as confidential by other employees and accessed only by the intended recipient. Employees are not authorized to retrieve or listen to any Voice Mail messages that are not sent to them. Any exception to this policy must receive the prior approval of Leaders Staffing management.

Leaders Staffing’s policies against sexual or other harassment apply fully to the Voice Mail system, and any violation of those policies is grounds for discipline up to and including discharge.

Therefore, no Voice Mail messages should be created, sent, or received if they contain

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intimidating, hostile, or offensive material concerning race, color, religion, sex, age, national origin, disability or any other classification protected by law.

The Voice Mail system may not be used to solicit for religious or political causes, commercial enterprises, outside organizations, or other non-job related solicitations during business hours.

Users should routinely delete outdated or otherwise unnecessary Voice Mails. These deletions will help keep the system running smoothly and effectively, as well as minimize maintenance costs.

Because of the storage space required for Voice Mail messages, employees should not send a Voice Mail message to a large number of recipients without prior approval from their supervisor during business hours.

Employees are reminded to be courteous to other users of the system and always to conduct themselves in a professional manner. Voice Mails are sometimes misdirected or forwarded and may be heard by persons other than the intended recipient. Users should create Voice Mail communications with no less care, judgment and responsibility than they would use for letters or internal memoranda written on Leaders Staffing letterhead.

Employees should also use professional and courteous greetings on their Voice Mail boxes so as to properly represent Leaders Staffing to outside callers.

In order to avoid accidentally disclosing message contents to unauthorized listeners, employees should not listen to Voice Mail messages while using the speaker phone feature.

Any employee who discovers misuse of the Voice Mail system should immediately contact his or her LSSC. Violations of Leaders Staffing’s Voice Mail policy may result in disciplinary action up to and including discharge.

Leaders Staffing reserves the right to modify this policy at any time, with or without notice.

USE OF COMPANY-OWNED EQUIPMENT AND COMPUTER SYSTEMS It is the policy of Leaders Staffing that the use of its computers and software, and that of its clients, is limited solely to appropriate business use during business hours. Employees are not allowed to use the computer system for their personal benefit during business hours. Employees are strictly forbidden from installing software on the system. Further, this policy reaffirms that Leaders Staffing employees have no reasonable expectation of privacy with respect to any computer hardware, software, electronic mail or other computer or electronic means of communication or storage, whether or not employees have private access or an entry code into the computer system. Leaders Staffing reserves the right to monitor the use of its computer system.

TELEPHONE USE Under certain circumstances, the telephone and fax machine are necessary to accomplish Leaders Staffing positions. Misuse of the telephone is prohibited. No Leaders Staffing employee has the right to utilize any client phone unless required as part of their job duties.

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Personal use of telephones for outgoing calls, including local calls, is limited. The usage limitations are as follows: Upon permission of your supervisor, personal telephone calls are permitted for emergency or necessary family needs. Personal calls should not interrupt workflow and should be made during the normal lunch break. Short personal phone calls to arrange transportation or to check on the safety of immediate family can be made but should be limited to 5 minutes or less. The calls should not cause an interruption in your work performance.

Personal phone calls extend to usage of cell phones including text messaging. Unless the employee’s position within Leaders Staffing requires the usage of a cell phone for client and/or internal communication needs, personal cell phones should not be used during business hours.

Leaders Staffing employees should refrain from using cell phones, with either voice or text communications unless the employee is on their lunch break. Short personal phone calls to arrange transportation or to check the safety of immediate family can be made but should be limited to 5 minutes or less. During work hours, cell phones should be stored with personal belongings (i.e. purse, handbag, etc.) and should not be kept on the employee’s desk or work area.

If emergency or necessary calls are long distance, please use a personal calling card. If you do not have access to a calling card, arrangement for reimbursement can be made for an emergency long distance call. Absolutely no long distance calls of personal nature are to be made without consent of your immediate supervisor.

Although Leaders Staffing encourages participation in church and civic activities, calls regarding these activities are prohibited during business hours.

The Fair Debt Collection Practice Acts protects consumers from getting collection calls at their workplace, if the collector is informed that the consumer cannot take collection calls at work. As these calls can be disruptive in the office, Employees must notify any and all bill collectors that they may not receive collection calls at work.

INTERNAL INVESTIGATIONS AND SEARCHES From time to time, Leaders Staffing may conduct internal investigations pertaining to security, auditing or work-related matters. Employees are required to cooperate fully with and assist in these investigations if requested to do so.

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Whenever necessary, in the Company's discretion, work areas (i.e., desks, file cabinets, etc.) and personal belongings (i.e., brief cases, handbags, etc.) may be subject to a search without notice.

Employees are required to cooperate.

Leaders Staffing will generally try to obtain an employee's consent before conducting a search of work areas or personal belongings, but may not always be able to do so.

SMOKING POLICY In order to comply with government regulations, Leaders Staffing has prohibited smoking throughout its workplaces located within Indiana. Further worksites are subject to the smoking policy of the client who owns the facility.

Any violation of or disputes arising under this policy should be reported immediately to your LSSC. Violation of this policy may result in appropriate corrective action, up to and including discharge.

Leaders Staffing will promptly investigate any disputes arising under this policy and in resolving disputes shall give priority to the health concerns of the employee desiring a smoke-free area.

Each employee is protected from retaliatory action or from being subjected to any adverse personnel action for exercising or attempting to exercise his/her rights under the smoking policy.

Any employee who feels that he/she has been subject to a retaliatory adverse personnel action for exercising or attempting to exercise any rights under this policy or under any applicable law or regulation concerning the subject matter of this policy shall inform his or her LSSC, which will promptly investigate the complaint and provide for adequate redress where necessary.

Any questions regarding the smoking policy should be directed to your LSSC.

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WORK PERFORMANCE DISCIPLINARY PROCEDURES Leaders Staffing reserves the right to impose discipline up to and including discharge.

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

The following is a limited number of examples that may result in disciplinary action, up to and including termination, depending on the circumstances.

Insubordination – A willful refusal to comply with guidelines, the directions of a Supervisor, or work rules or performance standards Neglect of duty – A failure to acceptably perform assigned essential job functions Incompetence – Lack of ability, knowledge, or qualifications to acceptably perform assigned job responsibilities Violation of law – Violating the law, statute, regulation, or any rule of the State of Indiana, the United States, or a local ordinance in the course of employment.

Violation of any Leaders Staffing policy or rule.

For specific disciplinary policies, please refer to the New Hire Orientation documents provided at the time of employment. Further questions should be directed to your LSSC

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LEAVING LEADERS STAFFING RESIGNATION When an employee decides to leave for any reason, the employee’s LSSC would like the opportunity to discuss the resignation before final action is taken. Leaders Staffing often finds during this conversation that another alternative may be better. If, however, after full consideration the employee decides to leave, it is requested that the employee provide Leaders Staffing with a written two-week advance notice period.

Leaders Staffing also fully reserves the right to accept the employee’s resignation, effective immediately, upon notification by the employee.

DISMISSALS Every Leaders Staffing employee has the status of "employee-at-will," meaning that no one has a contractual right, express or implied, to remain in Leaders Staffing’s employ. Leaders Staffing may terminate an employee's employment, or an employee may terminate his/her employment, without cause, and with or without notice, at any time for any legal reason. No supervisor or other representative of the Company (except the President) has the authority to enter into any agreement for employment for any specified period of time, or to make any agreement contrary to the above.

Immediate Dismissals/Misconduct Any employee whose conduct, actions or performance violates or conflicts with Leaders Staffing’s policies may be terminated immediately and without warning.

The following are some examples of grounds for immediate dismissal of an employee: Breach of trust or dishonesty Falsification of Company Record Gross negligence Insubordination Violation of the Anti-Harassment and/or Equal Employment Opportunity Policies Time card or sign-in book violations Undue and unauthorized absence from duty during regularly scheduled work hours

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Deliberate non-performance of work Larceny or unauthorized possession of, or the use of, property belonging to any co-worker, visitor, or customer of Leaders Staffing Possession of dangerous weapons inside Leaders Staffing or customer-ownedbuildings Unauthorized possession, use or copying of any records that are the property of Leaders Staffing Excessive absenteeism or lateness.

Marring, defacing or other willful destruction of any supplies, equipment or property of Leaders Staffing or its customer Failure to call or directly contact your supervisor when you will be late or absent from work Fighting or serious breach of acceptable behavior Violation of the Alcohol or Drug Policy Theft Gambling, conducting games of chance or possession of such devices on the premises or during work hours Leaving the work premises without authorization during work hours.

Sleeping on duty Violation of any Leaders Staffing or Leaders Staffing customer policy or procedure Violation of any Leaders Staffing or Leaders Staffing customer safety rule.

This list is intended to be representative of the types of activities that may result in disciplinary action. It is not exhaustive, and is not intended to be comprehensive and does not change the employment-at-will relationship between the employee and the Company.

All benefits end at the date of termination. COBRA notifications will be sent to terminated employees.

POST RESIGNATION/TERMINATION PROCEDURES Exit Interview An LSSC may contact you to scheduling an exit interview on the employee's last day of employment.

Returning Company and Client Property Upon resignation or termination all former employees must immediately return of all Company customer property in their possession to their LSSC. If their LSSC is not available, the employee may return the property to the Leaders Staffing business offices. Under rare circumstances when the former employee cannot return the property to the Leaders Staffing business office, the 43 | P a g e

employee must leave the company or customer property with his or her supervisor. of Company and/or customer property are as follows:

Examples

Security Card Picture Identification Card Office keys Company-issued credit cards Company manuals Any additional Company-owned or issued property Benefits Benefits end on the last day of employment. An employee has the option to convert to individual life insurance, and/or to continue Medical/Dental Benefits in accordance with the Consolidated Omnibus Budget Reconciliation Act ("COBRA") regulations.

Final Paycheck The final paycheck will be mailed during the next normal pay period.

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