Flippy book test by Mid Valley Press

EMPLOYEE HANDBOOK Our family exists to care for yours.

Facilities that use the following Handbook

Big Stone Gap Blacksburg Blackstone Brookneal Clintwood (Non-Collective Bargaining Unit Only) Dillwyn Front Royal Grundy King George Laurel Meadows Leesburg Lexington Nassawadox Resource Center Rich Creek Tazewell Virginia Beach Wise

Employee Handbook

A M essage f rom o u r P re s i d e n t an d C h ie f E xecu ti ve Of f i c e r To our new employee, I would like to take the opportunity to welcome you as a member of the American HealthCare, LLC/ Heritage Hall team. I am delighted you are joining our organization. Supervisors in the company carefully selected you because you demonstrate the education, skills and personality that we feel coincide with our incredible culture. As a member of the American HealthCare, LLC/Heritage Hall team, you will provide care to our residents and assistance to fellow team members. You will also have the opportunity to truly enhance the life of another person. Each positive influence you make in someoneâ&#x20AC;&#x2122;s existence is a significant achievement to celebrate. I want you to look at your employment as an opportunity for growth and personal enrichment. Please feel free to ask questions. Above all, open communication among every person in the company is important to our success and strength. In order to illustrate commitment to our staff, the companyâ&#x20AC;&#x2122;s organizational structure places our frontline staff and the residents in the most elevated position. The members of the Resource Team, including myself, are here to provide you with the support you need. As a result, this handbook is your first official introduction to American HealthCare, LLC/ Heritage Hall. Information has been included to serve as reference material as you begin your journey with us. We are looking forward to a long-term relationship and your success at American HealthCare, LLC/ Heritage Hall!

Sincerely,

Thomas L. East President and CEO American HealthCare, LLC

YOUR RIGHTS UNDER THE NATIONAL LABOR RELATIONS ACT - Nothing contained in this Handbook is intended in any fashion to prohibit, restrict or interfere with conduct protected by the National Labor Relations Act (“NLRA”). This includes, among other things, engaging in “protected concerted activities.” Protected concerted activities allow you, for example, to talk about the terms and conditions of your employment, such as working conditions, pay, and job related problems with others, as long as it is done in a lawful manner. No Handbook can set out all the rights provided to employees by the NLRA. For more information about these rights, you can visit http://www.nlrb.gov/rights-we-protect. Additionally, if you have any questions, please feel free to talk to the Human Resources Department. NOTHING CONTAINED IN THIS HANDBOOK IS INTENDED TO CREATE (NOR SHALL BE CONSTRUED AS CREATING) A CONTRACT OF EMPLOYMENT (EXPRESS OR IMPLIED) OR GUARANTEE OF EMPLOYMENT FOR ANY SPECIFIC PERIOD OF TIME OR FOR ANY SPECIFIC PROCEDURES OR TYPE OF WORK. EITHER YOU OR AMERICAN HEALTHCARE, LLC/HERITAGE HALL MAY TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME, FOR ANY REASON, WITH OR WITHOUT CAUSE OR NOTICE. PLEASE UNDERSTAND THAT NO SUPERVISOR, MANAGER, OR REPRESENTATIVE OF THE COMPANY OTHER THAN THE PRESIDENT/CEO HAS THE AUTHORITY TO ENTER INTO ANY AGREEMENT WITH YOU FOR EMPLOYMENT FOR ANY SPECIFIED PERIOD OR TO MAKE ANY PROMISES OR COMMITMENTS CONTRARY TO THE FOREGOING. ANY EMPLOYMENT AGREEMENT ENTERED INTO BY THE PRESIDENT/ CEO SHALL NOT BE ENFORCEABLE UNLESS IT IS IN WRITING AND SIGNED BY THE PRESIDENT. THE POLICIES, PROCEDURES, BENEFITS AND OTHER PROGRAMS CONTAINED IN THIS HANDBOOK MAY BE MODIFIED, AMENDED, OR CANCELED BY THE COMPANY AT ANY TIME, WITH OR WITHOUT NOTICE.

Employee Handbook

TA B L E O F C O N T E N T S I BACKGROUND INFORMATION...............................................................................................................................................7 Introduction Mission Statement History Heritage Hall Goal License II EMPLOYMENT.........................................................................................................................................................................................9 Employee Classification Eligibility Policy for Health Plan Coverage Equal Employment Opportunity Policy Statement Employment-at-Will Policy on Harassment Employee Obligation Employee Orientation Employee Privacy Employment Date Employment References Health Requirements Minimum Age for Employment Outside Employment Human Resources Records Selection of Personnel III PAYROLL INFORMATION............................................................................................................................................................13 Breaks Final Paycheck Deposit Hours of Work Meal Periods Payment Schedule Performance Evaluation and Wage Review Time Record IV BENEFITS..................................................................................................................................................................................................15 Section 125 Cafeteria Plan 401(k) Retirement Savings Plan Bereavement Pay Employee Assistance Program (EAP) Holidays Jury Duty Pay Paid Time Off (PTO) V COMMUNICATION.........................................................................................................................................................................18 Communication Employee Suggestions VI EMPLOYEE RECOGNITION PROGRAMS.......................................................................................................................... 18 Employee Service Awards Employee Recognition

VII COMPLAINTS........................................................................................................................................................................19 Grievance Procedure VIII RULES AND GENERAL INFORMATION.............................................................................................................20 Attention to Job Duties Barrier Crimes Cell Phone Confidential Information Credentials/Licenses Dishonest or Fraudulent Acts Dress Code & Appearance Email, Internet and Voicemail Employment of Relatives Inclement Weather Language and Demeanor Romantic Relationships Social Media Policy Transfers Outside the Facility Transfers Within the Facility Uniform Purchases Workers Compensation IX ABSENCES................................................................................................................................................................................25 General Family & Medical Leave Act (FMLA) Military Leave X GENERAL POLICIES...........................................................................................................................................................30 Conflict of Interest Distribution and Solicitation Drug Free Workplace Financial Obligation of Employees Fire Arms Name Badge Noise Personal Losses Personal Packages Personnel Disciplinary Procedures Safety Smoking XI RESIGNATION AND TERMINATION.....................................................................................................................33 Resignations Letters of Recommendation XII SUMMARY................................................................................................................................................................................40 XIII

ACKNOWLEDGMENT AND RECEIPT OF EMPLOYEE HANDBOOK............................................41

Employee Handbook

SECTION I B AC K G RO U N D I N F OR M AT I ON INTRODUCTION American HealthCare, LLC is the management company for Heritage Hall Healthcare and Rehabilitation facilities. The policies and procedures contained in this employee handbook replace or modify all previously printed information. The employee handbook is designed to provide answers to most Human Resources questions you may have. It outlines many of our current policies, procedures and benefits, and we hope it will help you better understand your job and your opportunities while employed with American HealthCare, LLC/Heritage Hall. We encourage you to read the employee handbook in its entirety and use it as a reference. If you have questions, please feel free to contact your Supervisor or Administrator. The information contained in this handbook is not a complete description of all policies, procedures and benefits currently in effect at American HealthCare, LLC/Heritage Hall facilities. This employee handbook does not apply to employees covered by a collective bargaining unit. We recognize that your job satisfaction and happiness affect the manner in which you fulfill your responsibilities, and that a clear understanding between employees and management is a vital part of your work. It is our sincere hope that your association with American HealthCare, LLC/Heritage Hall will be a happy and rewarding part of your life.

M I S S I O N STAT E M E N T O u r f amily e xis ts t o ca re fo r yo u r s . HISTORY A modern, warm nursing care center that could meet the health care needs of the senior community was the vision of five business people. They envisioned a center that was designed for comfort, but provided state of the art health care for the residents. They wanted a quality, caring staff and they wanted to furnish that staff with all the tools, knowledge and support required to provide the kind of nurturing care for which American HealthCare is now known. Programs and social events that would enhance the quality of life and build self- esteem were integrated into the daily routine. From these fundamental ideas grew Heritage Hall - Blacksburg, which opened its doors in February 1975. American HealthCare, LLC now cares for residents in seventeen locations in Virginia. The company employs more than 2,000 individuals and receives the services of physicians, pharmacists, technicians and medical staff. Our health care team of highly trained professionals now provides exceptional services to more than just the elderly. Through individualized, interdisciplinary care plans we meet the needs of a diverse population. Patients and residents are admitted without regard to race, religion, or payment source. The vision, now a reality, has developed into a unique blend of talented individuals who share in the philosophy that American HealthCare, LLC through its Heritage Hall facilities, will provide affordable, quality nursing and rehabilitation services in a safe atmosphere of grace, compassion, dignity and understanding to the citizens of the Virginia communities in which we serve.

HERITAGE HALL GOAL The goal of Heritage Hall is to achieve and maintain, through a system of health care management, an unequaled level of measurable quality and productivity in the delivery of health care services that are responsive to the values and needs of our residents. To meet our goal, we must perform in a manner that is unquestionably ethical and moral and in compliance with all laws, rules and regulations.

LICENSE Heritage Hall is licensed as a nursing home by the Virginia Department of Health, Office of Licensure and Certification and is subject to all the rules and regulations thereof. As an employee, your service and concern for the quality of care we provide and insist upon, assists our facility in maintaining the strict professional standards required by the regulations of this agency.

Employee Handbook

SECTION II E M PL OY M E N T EMPLOYEE CLASSIFICATION Employees are classified in one of the following categories: •

Full-Time (regularly scheduled to work at least 30 or more hours per week)

•

Part-Time (employed to work flexible schedules as determined by the supervisor)

•

PRN (employed to work “as needed” with no set schedule)

Benefits are determined by classification.

ELIGIBILITY POLICY FOR HEALTH PLAN COVERAGE This Eligibility Policy for Health Plan Coverage offered by American HealthCare, LLC shall be used to determine whether certain Employees of American HealthCare, LLC are eligible to participate in the American HealthCare, LLC Employee Benefits Plan with regard to the harbor described in Internal Revenue Service (“IRS”) Final Regulations published on February 2, 2004 under Section 4980H of the Internal Revenue Code of 1986, as amended (“Code”), and this Policy shall be interpreted, construed, and limited in accordance with such intent. If you would like to see the complete American HealthCare Variable Hour Eligibility Policy, please request a copy from Human Resources.

EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT American HealthCare, LLC/Heritage Hall is an Equal Opportunity Employer and provides employment opportunities to all individuals without regard to race, color, religion, gender, sexual orientation, national origin, age, disability, marital status, amnesty, or status as a covered veteran or any other protected status in accordance with applicable federal, state and local laws. American HealthCare, LLC/Heritage Hall complies with all applicable state and local laws governing non-discrimination in employment in every location in which the company has facilities. This policy applies to all terms and conditions of employment, including, but not limited to, hiring, placement, promotion, termination, layoff, recall, transfer, leaves of absence, compensation and training. American HealthCare, LLC/Heritage Hall expressly prohibits any form of unlawful employee harassment based on race, color, religion, gender, sexual orientation, national origin, age, disability or veteran status or any other protected status. Any improper interference with the ability of American HealthCare, LLC/Heritage Hall employees to perform their expected job duties is absolutely not tolerated.

EMPLOYMENT-AT-WILL We hope that each employee’s period of employment at American HealthCare, LLC/Heritage Hall will be a rewarding experience. However, we recognize that circumstances change with the passage of time and that some employees may seek opportunities elsewhere or choose to leave the company for other reasons. Other employees may not fulfill the operational needs of the company or changed circumstances may reduce available employment opportunities which may result in involuntary terminations. We sincerely hope that none of these situations occur, but realistically we have to acknowledge that the possibility does exist. Therefore, the right of the employee or the company to terminate the employment relationship at-will is recognized and affirmed as a condition of employment. At-will means that both the employee and American HealthCare, LLC/Heritage Hall have the right to terminate employment at any time, with or without advance notice, and with or without cause.

POLICY ON HARASSMENT American HealthCare, LLC/Heritage Hall is committed to providing a work environment that is free of unlawful harassment of all types. Consistent with our policy of equal employment opportunity, harassment in the workplace based on a person’s race, sex, religion, national origin, age, or disability will not be tolerated. Thus, American HealthCare, LLC/Heritage Hall has a strict policy prohibiting unlawful harassment in any form, including sexual harassment, whether committed by other employees, Supervisors and/or third parties. The harassment policy prohibits unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature, particularly where: 1) submission by an employee to such conduct is made either explicitly or implicitly a term or condition of employment; 2) submission to or rejection of such conduct is used as the basis for decisions affecting an individual’s employment; or 3) such conduct has the purpose or effect of creating an intimidating, hostile or offensive working environment. In addition, this policy prohibits offensive or unwelcome sexual propositions, verbal abuse of a sexual nature, graphic comments about an individual’s body, sexually degrading comments, and sexually suggestive objects, pictures or other materials in the workplace. Each Supervisor is responsible for ensuring that the company’s work environment is free of harassment, whether sexual or otherwise. In addition, all employees are responsible for respecting the rights of their coemployees. Any employee who believes he or she has experienced unlawful job-related harassment should report any such harassment promptly to his or her Supervisor. Should any employee believe it would be inappropriate to discuss the matter with his or her Supervisor, the employee may report it directly to the Human Resource Department, or any member of Management.

Employee Handbook Every effort will be made to promptly investigate all allegations of harassment in as confidential a manner as possible and appropriate corrective action will be taken, if warranted. If the company determines that any employee has violated this harassment policy, appropriate disciplinary action will be taken against the offending employee, up to and including termination of employment. We will periodically follow-up with the complainant to ensure that the actions taken by the company have remedied any problems and that the issues that prompted the complaint have not recurred. American HealthCare, LLC/Heritage Hall prohibits any form of retaliation against an employee for making a bona fide complaint of harassment under this policy or for assisting in a complaint investigation.

EMPLOYEE OBLIGATION Any employee who witnesses any unkindness, rudeness, abuse, neglect or violence of any kind toward a resident must report it immediately to management. An employee abusing a resident in any form will be immediately terminated and reported to the Department of Health Professions if applicable. Each employee has a responsibility and duty to adhere to this policy of Heritage Hall as mandated by the State of Virginia.

EMPLOYEE ORIENTATION All new employees will go through a new hire orientation process. This will include completion of payroll forms as well as an introduction to the history, organization, policies and benefits that American HealthCare, LLC/ Heritage Hall has established. Orientation will explain facility organization, departmental goals, responsibilities and relationships with other departments and employees. All new employees will go through new hire orientation.

EMPLOYEE PRIVACY To protect an employee’s privacy, American HealthCare, LLC/Heritage Hall will not release information to third parties without the written consent of the employee. This includes, but is not limited to, other departments, companies or government organizations. However, any records will be released upon lawful request made by all government agencies and/or as subpoenaed by the courts regardless of employee written consent. Please see American HealthCare, LLC/Heritage Hall’s HIPAA policy for a full overview of privacy.

EMPLOYMENT DATE An employee’s active date of hire is the date she/he starts to work with American HealthCare, LLC/Heritage Hall. An employee’s active date of hire does not change during continuous full-time or part-time employment and is used as a basis for calculating length of service and benefits determination. PRN time is not calculated into length of service for an employee.

EMPLOYMENT REFERENCES All information submitted by an applicant pertaining to employment must be factual. Business and/or personal references will be checked prior to employment. If it is found that an applicant has misrepresented or omitted

information, she/he will not be considered for employment. If after employment has begun, it is discovered that essential facts were omitted or misrepresented in the application, the employee will be subject to immediate dismissal.

HEALTH REQUIREMENTS New employees will receive an intra-dermal PPD (tuberculosis) test upon employment and annually thereafter. These tests are administered by Heritage Hall. If at any time a test is positive, the employee must consent to a chest x-ray at the company’s expense.

MINIMUM AGE FOR EMPLOYMENT Applicants will not be considered for employment unless they have either reached their sixteenth birthday or have valid working permits. Due to the nature of some of the positions, an applicant may be legally required to be at least 18 years of age.

OUTSIDE EMPLOYMENT In pre-approved circumstances, outside employment is permitted provided it does not divide or appear to divide an employee’s loyalty or reduce her/his ability to perform assigned duties in the facility or appears to be a conflict of interest. Immediate supervisors must be informed that employees are also employed outside the company as soon as employment is accepted.

HUMAN RESOURCES RECORDS An employee’s Human Resources file contains all information pertinent to her/his employment (except for certain information which is required by law to be kept separately). The information in the Human Resources file is considered confidential and American HealthCare, LLC/Heritage Hall takes precautions to ensure that each employee’s privacy is protected. An employee who wishes to see her/his Human Resources file should contact Human Resources to make the necessary arrangements. To keep these records current, it is important that each employee notify Human Resources of any changes in name, address, telephone number, marital status, number of dependents, etc.

SELECTION OF PERSONNEL American HealthCare, LLC/Heritage Hall strives to employ individuals who are committed to fulfilling the mission statement and goals of the company. Individuals who possess the necessary qualifications through past experience, educational background and appropriate training will be considered for employment.

Employee Handbook

SECTION III PAY RO L L I N F OR M AT I ON BREAKS All employees who work at least 7.5 consecutive hours are allowed one fifteen (15) minute paid break during the first four (4) hours of work and one ten (10) minute paid break during the remaining 3.5 hours of work. The precise times of break periods shall be determined by Heritage Hall and may need to be altered based on resident needs. Employees who work shifts of less than 7.5 consecutive hours, but more than 4 hours are entitled to one fifteen (15) minute paid break as scheduled by Heritage Hall. Breaks are considered work time and should be taken in areas designated for that purpose. Employees should not leave the building in which they work (or the adjacent outdoor area) during breaks.

FINAL WAGE PAYMENTS Employees who terminate their employment or are terminated for any reason will receive their final pay on the next scheduled payday.This pay will represent payment for all hours worked in the last pay period plus paid time off if eligible, less any amounts owed to the company such as insurance premiums, meal deductions, uniform deductions, etc. If paid time off is eligible, you will receive lump sum payment.

HOURS OF WORK Since a facility provides continuous resident care twenty-four (24) hours a day, seven (7) days a week, it must be staffed accordingly. For this reason, employees will be scheduled to work on weekends and holidays to meet the needs of the department and the facility. Work schedules will be posted fourteen (14) days in advance of scheduled work dates.There may be occasions where an employee may be scheduled to work more or less hours than is considered normal for the job classification depending on the circumstances. Only hours physically worked count toward overtime computation; non-work paid hours (paid time off, holiday, etc.) do not count toward overtime.

MEAL PERIODS All employees who work 5 or more hours during any one shift are scheduled for an unpaid meal period. Employees are expected to take the entire scheduled meal period. All meal periods will be scheduled for a minimum of 30 minutes. Any deviation from this schedule must be authorized by a supervisor. These scheduled meal periods are important and should be adhered to as much as possible. Due to the nature of our business, taking an uninterrupted 30 minute meal period may not always be possible. An employee may only work through or alter her/his meal period with authorization from her/his supervisor. If an urgent situation arises that causes an employee not to take the full meal period, the employee should notify her/his supervisor

immediately and complete a payroll time addition change form. Any employee taking an unauthorized meal break outside of the guidelines may be subject to disciplinary action up to and including termination. In addition, employees who are working should not disrupt other employees during their meal period unless an urgent situation arises. In turn, employees who are taking breaks should not disrupt those who are working. Any employee doing so may be subject to disciplinary action up to and including termination.

PAYMENT SCHEDULE Employees are paid every two weeks on Fridays. Should a regularly scheduled payday fall on a holiday, payment will be received the previous day. Work weeks begin on Friday and end on Thursday. If an error has been made in a paycheck, the affected employee should inform her/his supervisor or facility payroll manager immediately who will contact the Resource Center to have it corrected. If the error is serious enough to create an undue hardship, it will be corrected the week after payday. If not, the correction will be made on the next regular payday.

PERFORMANCE EVALUATIONS AND WAGE REVIEW Beginning with the employee’s first anniversary, and annually thereafter, a written evaluation will be completed by the employee’s supervisor. This will include all phases of job performance, attendance, work habits, etc. Employees will have the opportunity to submit any written comments to their supervisor.The original evaluation will be placed in the employee’s Human Resources file. Upon completion of the evaluation, a pay increase will be determined. Annual raises are not automatically guaranteed. Pay increases will be effective the pay period following the anniversary date of the employee.

TIME RECORD Each hourly employee is required to record hours worked by using the time clock located in each facility. Employees must clock in upon arrival at work, when taking a meal break, upon returning from a meal break and when leaving at the end of the shift. Employees should not begin work more than five (5) minutes before a shift, nor should they work more than five (5) minutes after the end of the shift without supervisor approval. Should an employee fail to clock in or out, or have any deviation from their normal work schedule, a time addition change form is to be completed immediately, signed by the supervisor and turned in to Human Resources so the appropriate adjustments can be made. Unauthorized time may cause disciplinary actions.

Employee Handbook

SECTION IV BE NE F I T S American HealthCare, LLC/Heritage Hall offers Medical, Dental, Vision, Basic Life, Supplemental Life, Short Term Disability, Long Term Disability, Accident, Cancer and a Flex Spending Account to full time employees regularly scheduled for at least 30 hours per week. Please see Human Resources for specific details on the benefits.

SECTION 125 CAFETERIA PLAN American HealthCare, LLC/Heritage Hall provides a premium conversion plan under IRS Section 125 that allows employees to pay certain group insurance premiums with pre-tax dollars; before federal, state and social security taxes are withheld. Because an employee is not being taxed on the premiums, changes in an enrollment may not be made during the year unless a “qualifying event” occurs as determined by the Internal Revenue Service. Please see Human Resources for specific definitions of “qualifying events”. In addition, the following benefits are also offered to eligible employees:

401(k) RETIREMENT SAVINGS PLAN American HealthCare, LLC/Heritage Hall provides the opportunity to build savings for retirement through payroll deduction. Full-time and part-time employees are eligible for participation in the plan after 6 months of continuous employment. Employees must be at least 21 years of age to participate in the plan. Enrollment dates are quarterly beginning January 1, April 1, July 1, and October 1. Please see Human Resources for specific details on the 401(k) plan.

BEREAVEMENT PAY Up to three (3) consecutive days of paid bereavement time is available to full-time employees who have completed 3 months of employment in the event of the death of an immediate family member. Part-time employees who work 1150 hours or more each year are also entitled to up to three (3) consecutive days of paid bereavement for immediate family members. Immediate family is restricted to an employee’s parent or legal guardian, brother, sister, spouse, children, step-children, grandparent, mother-in-law, or father-in-law. For any other relatives you may use PTO days. Pay during a bereavement absence shall be granted only for absences occurring on scheduled workdays.

EMPLOYEE ASSISTANCE PROGRAM (EAP) American HealthCare, LLC/Heritage Hall is pleased to offer our employees’ access to an Employee Assistance Program at no cost to the employees.The EAP offers support to employees and their immediate families during times of crisis 1-800- 992- 1931. See Human Resources for more detailed information.

HOLIDAYS All full-time employees who have completed 3 months of employment are eligible for holiday pay. American HealthCare, LLC/Heritage Hall currently observes the following days as holidays: New Year’s Day, Memorial Day, Independence Day (July 4th), Labor Day, Thanksgiving Day, and Christmas Day. Employees must work their last scheduled shift before the holiday and their first scheduled shift after the holiday in order to receive holiday pay. Exceptions may be made for absences incurred at American HealthCare, LLC/Heritage Hall’s request, scheduled PTO, or unscheduled absences with a doctor’s excuse, which must be provided within 3 days of the absence. Employees scheduled to work on a holiday will be paid for their hours worked at the regular rate and will also receive holiday pay. Holiday benefits will not be paid to employees during leaves of absence. Holiday pay is not available during paid time off or other leaves of absence.

JURY DUTY PAY In order to fulfill this civic responsibility, if an employee is summoned for jury duty, American HealthCare, LLC/ Heritage Hall does not want an employee to suffer loss of income. A full-time employee who has been with the company for 3 months and a part-time employee who works at least 1150 hours each year are eligible for jury duty pay for absences occurring on a scheduled workday. Jury duty pay is determined by reducing the employee’s scheduled pay per day by the amount the court paid the employee for jury duty. Jury duty pay is considered non-productive pay and is not calculated into overtime. If an employee is excused from jury duty on a given day, they are expected to report to work as normally scheduled. Such employees are expected to return to work at the conclusion of their service if the employee will be able to work for four (4) hours or more in that regular work day; provided, however, that no person who is summoned and appears for jury duty for four or more hours, including travel time, in one day shall be required to start any work shift that begins on or after 5:00 p.m. on the day of appearance for jury duty or begins before 3:00 a.m. on the day following the day of appearance for jury duty.

PAID TIME OFF (PTO) American HealthCare, LLC/Heritage Hall believes that all employees should have the opportunity to enjoy time away from work to help balance their lives. American HealthCare, LLC/Heritage Hall recognizes that employees have diverse needs for time off from work and offers the current PTO policy to better meet the employee’s individual needs. This policy is inclusive and contains provisions for vacation, personal and sick time for both fulltime and part-time employees. Full-time and part-time employees begin earning PTO immediately upon employment. Earned time is available to use the pay period following 3 months of employment. PTO is accrued for each hour worked up to forty hours of paid work time each week. PTO will not accrue during paid time off or other leaves of absence. Following are the PTO accrual rates:

Employee Handbook All full-time employees (defined as scheduled to work at least 30 hours per week) will accrue PTO at the following rates:

Years of Service

PTO Accrual Rate Per Hour Worked

Less than 5 years

.06039

5 years to less than 10 years

.08764

10+ years

.11632

All part-time employees will accrue PTO at the following rates:

Years of Service

PTO Accrual Rate Per Hour Worked

Less than 5 years

.03846

5 years to less than 10 years

.05769

10+ years

.07692

An employeeâ&#x20AC;&#x2122;s accrual rate is determined based on number of years of service in a regular full-time or regular part-time classification.Time spent in PRN classification is not included in the years of service calculation related to PTO accrual. Whenever possible, PTO should be scheduled in advance for vacations, FMLA, appointments and other reasons. Use of PTO is subject to supervisor approval, department staffing needs and departmental procedures. All PTO requests are to be made by completing a time off request form.

SECTION V C O M M U NI C AT I ON COMMUNICATION Open communication between management and employees is necessary for the effective operation of any business. Recognizing this, American HealthCare, LLC/Heritage Hall encourages all employees to voice their opinions and concerns. Department meetings, bulletin boards, newsletters, etc., are used to inform employees of items of general interest as well as specific items pertaining to their jobs. In turn, employees are encouraged to participate actively in meetings and in discussions with management, supervisors, etc.

EMPLOYEE SUGGESTIONS All employees are encouraged to submit suggestions pertaining to improvements, cost reduction, duplication, elimination, labor and timesaving methods and similar matters. Suggestions in writing may be directed to your department head or administrator.

SECTION VI EMP L OY E E R E C O G N I T I ON P ROG R AM S EMPLOYEE SERVICE AWARDS Milestone Service Awards are given to employees in recognition of their years of service. Awards are presented to employees who have completed five (5) years of service and every five (5) years thereafter (10, 15, 20, etc.). Service Award will be given to the employee, by the Administrator or designee, on or near the employee’s anniversary date. For more details see Human Resources.

EMPLOYEE RECOGNITION Throughout the year, American HealthCare, LLC/Heritage Hall recognizes outstanding employees through a variety of employee recognition awards. These awards are presented to employees who demonstrate an above average performance in the areas of attendance, safety, dedication and service as they strive to ensure the very best quality of life for our residents. Four times a year (each quarter), every facility will choose an “Employee of the Quarter”. At the end of the year, these recipients are eligible for the “William B. Hopkins Associate of the Year”.

Employee Handbook

SECTION VII C O M PL A I N T S GRIEVANCE PROCEDURE Satisfactory working relationships largely depend on a mutual understanding of company goals and objectives. Good relationships are easier to achieve in an atmosphere where problems and opinions can be openly discussed. Remember, we can’t adjust a grievance unless we know that one exists. To this end, a procedure has been setup to allow employees to express views about working conditions, management, co-workers or any decision made by management regarding their employment status without worry of retaliation. To support this, American HealthCare, LLC/Heritage Hall has a six-step grievance process that an employee may utilize. The following steps are to be followed in registering and/or appealing a concern. Each step must be initiated within five (5) working weekdays after a decision from the preceding step has been delivered or mailed to you by certified mail at the last address shown in your personnel record.

• Step One - Talks with their supervisor. Supervisor responds with an answer within three (3) working weekdays. • Step Two - Gives their complaint verbally or in writing to their Department Head. Department Head responds with an answer within three (3) working weekdays. • Step Three - Talks to Administrator.The Administrator may request that they put the complaint in writing. Administrator will respond in writing within five (5) working weekdays. • Step Four - Sends their complaint in writing to the head of Human Resources. The Head of Human Resources will review the complaint and respond in writing within ten (10) working weekdays. • Step Five - Sends their complaint in writing to the Regional VP of Operations who will respond with a written answer within ten (10) working weekdays. • Step Six - Sends their complaint in writing to the President/Chief Executive Officer and the Chief Operating Officer of American HealthCare, LLC/Heritage Hall who will respond within ten (10) working weekdays.

At any point during the process, the employee may request that someone from Human Resources or any department head, not involved in the immediate problem, assist in preparing and presenting the complaint. Employees who have been terminated and wish to file a complaint must do so within five (5) working weekdays after their termination date. These complaints should be mailed to the Head of Human Resources, 5310 Valleypark Drive, Suite 100, Roanoke, VA 24019. Please see Human Resources for additional information regarding this procedure.

SECTION VIII RUL E S A N D G E N E R AL I N F OR M AT I ON ATTENTION TO JOB DUTIES Employees are expected to follow directives from supervisors and to fulfill the responsibilities of their position. Sleeping on the job, performing personal work on the job, or distracting co-workers from performing their duties is not allowed. Failure to respond to a directive from a supervisor is considered insubordination and will result in disciplinary action up to and including termination.

BARRIER CRIMES Under the Code of Virginia, American HealthCare, LLC/Heritage Hall is required to obtain an original criminal history record with respect to certain barrier offenses for employees and is prohibited from employing persons convicted of specified barrier crimes as listed under the Code of Virginia. Employees convicted of a crime while employed at American HealthCare, LLC/Heritage Hall are responsible for reporting the conviction to Human Resources immediately to determine whether or not the offense is a barrier crime.

CELL PHONES Cell phones, other than those provided by the company to certain employees, should be kept turned off during working time and other than in and emergency, used only during breaks and meal times to place or receive personal calls or other personal messages. The use of the camera, video or recording function of a cell phone is prohibited.

CONFIDENTIAL INFORMATION Employees have access to confidential information about residents, customers, employees and the plans, performance and services of American HealthCare, LLC/Heritage Hall. Such information must always be treated as confidential and not misused by employees, former employees or outsiders. Disclosing confidential information to anyone not entitled to such information or assisting anyone in gaining access to company records are both direct violations of the policy. The communication of false or derogatory information about American HealthCare, LLC/Heritage Hall, residents, customers or employees is also a violation of company policy and will be subject to disciplinary actions up to and including termination.

CREDENTIALS/LICENSES Employees in positions requiring professional registry and/or licensure are expected to provide documentation of current registration and/or licensure in the Commonwealth of Virginia upon employment and as appropriate thereafter. Employees are expected to maintain personal licensure requirements in a current status and to immediately report to Human Resources any problems with professional registration or licensure.

Employee Handbook DISHONEST OR FRAUDULENT ACTS Employees cannot continue employment if they commit a dishonest act (theft, passing bad checks, forgery, etc.) or a breach of trust. A breach of trust is a wrongful use, misappropriation or omission with respect to any property, funds or information which have been entrusted to a person.

DRESS CODE & APPEARANCE Employees are expected to dress in a manner that is professional, clean, in good condition, moderate, noncontroversial and appropriate to their job duties. Department managers will establish specific guidelines for their departments based on the dictates of professionalism, safety and health related concerns.

• Uniforms are required in many departments. • Tight fitting or revealing clothing is not allowed. • Clothing with controversial or offensive symbols, slogans or words are not allowed. • Fully enclosed shoes that protect the heels and toes are required. • Crocs, shape-ups, exercise/toning or rocker shoes, flip flops, clogs (with open back) not allowed. • Hair, beard and nails must be clean and neatly trimmed. Extreme styles and colors should be avoided. • Jewelry, body-piercings, hair ornaments and make-up should be minimal and in good taste. • Visible tattoos must be covered.

EMAIL, INTERNET AND VOICEMAIL American HealthCare, LLC/Heritage Hall email, internet access, voice-mail systems, telephones, fax machines, personal computers and mobile devices and all communications and information transmitted by, received from, or stored in these systems and computers and devices are company records and are the property of the company. These systems and computers are to be used for company purposes only and personal use is prohibited. American HealthCare, LLC/Heritage Hall reserves the right to monitor, access, retrieve and delete anything contained in any of these systems or computers. Employees should have no expectation of privacy with regard to their use of the company’s electronic communication systems.

EMPLOYMENT OF RELATIVES Without prior approval by the responsible members of facility management team, relatives may not be employed in the same department/unit on the same shift; under circumstances where one relative exercises supervisory or management authority over another; or in a situation where one relative can exercise influence over the work of another or potentially compromise the best interest of American HealthCare, LLC/Heritage Hall. See Code of Conduct for more details.

INCLEMENT WEATHER Being a facility employee requires a dedication to duty unsurpassed by any other type of employment.Therefore, during inclement weather, employees are expected to make the extra effort to report for work on time. If weather conditions are of an extreme nature causing an employee to be unable to travel, she/he should contact their department head immediately. Failure to report to work due to inclement weather could result in forfeiture of 7.5 hours of PTO. Refer to your Administrator/Supervisor for more details.

LANGUAGE AND DEMEANOR Employees are expected to refrain from loud, abusive, threatening, inappropriate or cursing language. Employees are expected to refrain from threatening, aggressive, hostile or violent behavior towards individuals or property.

ROMANTIC RELATIONSHIPS Dating relationships between employees are discouraged. Employees involved in a dating relationship are expected to keep their personal lives separate from work. Should a work related conflict or problem develop, appropriate action including transfer or change of job status or duties, will be taken. See American HealthCareâ&#x20AC;&#x2122;s Code of Conduct on dating relationships.

SOCIAL MEDIA POLICY At American HealthCare, LLC/Heritage Hall, we understand that social media can be a fun and rewarding way to share your life and opinions with family, friends and co-workers around the world. However, use of social media also presents certain risks and carries with it certain responsibilities. To assist you in making responsible decisions we have established these guidelines for appropriate use of social media. This policy applies to all employees who work for American HealthCare, LLC/Heritage Hall.

Guidelines In the rapidly expanding world of electronic communication, social media can mean many things. Social media includes all means of communicating or posting information or content of any sort on the Internet, including to your own or someone elseâ&#x20AC;&#x2122;s web log or blog, journal or diary, personal web site, social networking or affinity web site, web bulletin board or a chat room, whether or not associated or affiliated with American HealthCare, LLC/Heritage Hall, as well as any other form of electronic communication. The same principles and guidelines found in American HealthCare, LLC/Heritage Hall policies apply to your activities online. Ultimately, you are solely responsible for what you post online. Before creating online content, consider some of the risks and rewards that are involved. Keep in mind that any of your conduct that adversely affects your job performance, the performance of fellow employees or otherwise adversely affects members, customers, suppliers, people who work on behalf of American HealthCare, LLC/Heritage Hall or its legitimate business interests may result in disciplinary action up to and including termination.

Employee Handbook Know and follow the rules Carefully read these guidelines, the American HealthCare, LLC/Heritage Hall Code of Conduct, and the Harassment Policy (p. 10); and ensure your postings are consistent with all American HealthCare, LLC/Heritage Hall policies. Inappropriate postings that may include discriminatory remarks, harassment, and threats of violence or similar inappropriate or unlawful conduct will not be tolerated and may subject you to disciplinary action up to and including termination.

Be respectful We must respect our residents’ privacy. Do not disclose resident names, addresses, social security numbers, dates of birth or medical information. Also, do not post images, including photographs or drawings, depicting the confidential, personal and/or health-related information of our residents. Always be fair and courteous to fellow employees, customers, members, suppliers or people who work on behalf of American HealthCare, LLC/Heritage Hall. Also, keep in mind that you are more likely to resolve work-related issues by speaking directly with your co-workers or obtaining the assistance of Management than by posting complaints to a social media outlet. Nevertheless, if you decide to post complaints or criticism, avoid using statements, photographs, video or audio that reasonably could be viewed as malicious, obscene, threatening or intimidating, that disparage customers, members, associates or suppliers, or that might constitute harassment or bullying. Examples of such conduct might include offensive posts meant to intentionally harm someone’s reputation or posts that could contribute to a hostile work environment on the basis of race, gender, age, national origin, disability, religion or any other status protected by law or company policy.

Be honest and accurate Make sure you are always honest and accurate when posting information or news, and if you make a mistake, correct it quickly. Be open about any previous posts you have altered. Remember that the Internet archives almost everything; therefore, even deleted postings can be searched and retrieved. Never post any information or rumors that you know to be false about American Healthcare, LLC/Heritage Hall, fellow employees, members, patrons, suppliers, people working on behalf of American HealthCare, LLC/Heritage Hall or competitors.

Post only appropriate and respectful content • Maintain the confidentiality of American HealthCare, LLC/Heritage Hall trade secrets and private, proprietary or confidential information. Trade secrets may include information regarding the development of systems, processes, products, know-how and technology. Do not post internal reports, policies, procedures or other internal business-related confidential communications. • Do not create a link from your blog, website or other social networking site to American HealthCare, LLC/Heritage Hall’s website without identifying yourself as an employee of American HealthCare, LLC/ Heritage Hall.

• Express only your personal opinions. Never represent yourself as a spokesperson for American HealthCare, LLC/Heritage Hall. If American HealthCare, LLC/Heritage Hall is a subject of the content you are creating, be clear and open about the fact that you are an employee and make it clear that your views do not represent those of the company, fellow employees, members, patrons, suppliers or people working on behalf of American HealthCare, LLC/Heritage Hall. If you do publish a blog or post online related to the work you do or subjects associated with American HealthCare, LLC/Heritage Hall, make it clear that you are not speaking on behalf of the company. It is best to include a disclaimer such as “The postings on this site are my own and do not necessarily reflect the views of American HealthCare, LLC/Heritage Hall.”

Using social media at work Refrain from using social media while on work time or on equipment we provide, unless it is work-related as authorized by your manager or consistent with the Company policy. Do not use American HealthCare, LLC/ Heritage Hall email addresses to register on social networks, blogs or other online tools utilized for personal use.

Retaliation is prohibited American HealthCare, LLC/Heritage Hall prohibits taking negative action against any employee for reporting a possible deviation from this policy or for cooperating in an investigation. Any employee who retaliates against another employee for reporting a possible deviation from this policy or for cooperating in an investigation will be subject to disciplinary action, up to and including termination.

Media contacts Employees should not speak to the media on behalf of American HealthCare, LLC/Heritage Hall, without contacting the Manager. All media inquiries should be directed to the Manager.

For more information If you have questions or need further guidance, please contact your supervisor and review the Code of Conduct.

TRANSFERS OUTSIDE THE FACILITY Heritage Hall has nursing home facilities in many areas of Virginia. Employees who are relocating within the state may request a transfer to another Heritage Hall facility. Employees interested in a transfer to another facility should discuss this with their Department Manager and the Administrator.

TRANSFERS WITHIN THE FACILITY Heritage Hall recognizes that there are personal as well as business reasons that employees may desire to change from one shift to another. An employee desiring to make this change should notify her/his department head. While seniority does play an important part in granting requests for transfer from shift to shift, other important factors are taken into consideration such as attendance, performance appraisals, date since last move, willingness to work overtime as required, general attitude, etc. Once a request is made, the department head

Employee Handbook will maintain a waiting list of names wishing to transfer to another shift. As openings occur, the next name on the waiting list will get priority of consideration. If the move is refused then the name is stricken from the list. Employees may sign up with a new request at any future date.

UNIFORM PURCHASES In an effort to make the purchase of new uniforms more convenient, American HealthCare, LLC/Heritage Hall has made arrangements with a company that allows employees to purchase new uniforms, but pay for them through bi-weekly payroll deductions, rather than at the time of purchase. Please see Human Resources for more details related to uniform purchases.

WORKERS COMPENSATION All employees are insured in accordance with state workers compensation laws. If an employee is injured or becomes ill while performing their job, the employee must inform their supervisor as soon as possible, but no later than twenty-four (24) hours after the incident occurs. All incidents need to be reported to the supervisor regardless of how slight they may seem. Once a member of management is informed of the incident, procedures will be followed in obtaining care and or treatment. American HealthCare, LLC/Heritage Hall requires any employee reporting an injury to submit to “post accident” drug screening.

SECTION IX A BS E N C E S GENERAL Unscheduled absences from work cause undue hardship on co-workers and, therefore, must be limited. Even excused absences create problems if they become too frequent. Arriving to work regularly and on time is part of an employee’s job. In an emergency, the employee should notify her/his supervisor immediately by telephone giving the reason for the absence and the anticipated date of return to work. If the supervisor cannot be reached, the person designated by the supervisor in such cases should be contacted. If an employee knows in advance that she/he will be absent, the supervisor must be notified as soon as possible for approval. Failure to report to work may result in disciplinary action, up to, and including termination. Please remember - it is mandatory that you do call in and report your absence. Any employee who is absent two (2) consecutive scheduled workdays without notifying her/his supervisor will be considered to have terminated employment voluntarily. Please refer to the Attendance Policy for the complete guidelines.

FAMILY & MEDICAL LEAVE ACT (FMLA) In accordance with the Family and Medical Leave Act of 1993, as amended (“FMLA”), American HealthCare, LLC/Heritage Hall provides family and medical leave to employees as follows:

Reasons For Taking Leave 1. An eligible employee shall be entitled to a total of 12 workweeks of leave during a “rolling” 12-month period measured backward from the date an employee uses FMLA leave for one or more of the following: (a) Because of the birth of a son or daughter of the employee and in order to care for such son or daughter, and because of the placement of a son or daughter with the employee for adoption or foster care. (b) In order to care for the spouse, son, daughter, or parent, of the employee, if such spouse, son, daughter, or parent has a serious health condition. (c) Because of a serious health condition that makes the employee unable to perform the functions of the position of such employee. (d) Because of any qualifying exigency arising out of the fact that the spouse, son, daughter, or parent of the employee is on covered active duty in a foreign country (or has been notified of an impending call or order to covered active duty in a foreign country) in the National Guard, Reserves, and the Regular Armed Forces in support of a contingency. (e) In order to provide “parental care” to a service member’s parent who is incapable of self-care when the care is necessitated by the service member’s covered active duty. The eligible employee must be the spouse, son, or daughter of the service member. 2. An eligible employee who is the spouse, son, daughter, parent, or next of kin of a member of the Armed Forces, including covered veterans, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness is entitled to a total of 26 workweeks of leave during a single 12-month period. (a) A “covered veteran” is an individual discharged or released any time during the 5-year period prior to the first date of the employee’s FMLA leave to care for the covered veteran. (b) A “serious injury or illness” for a current service member includes injuries or illnesses that existed before the beginning of the member’s active duty and were aggravated by service in the line of duty on active duty in the Armed Forces. (c) A “serious injury or illness” for a covered veteran means an injury or illness that was incurred or aggravated by the member in the line of duty on active duty in the Armed Forces and manifested itself before or after the member became a veteran, and is: (i) A continuation of a serious injury or illness that was incurred or aggravated when the covered veteran was a member of the Armed Forces and rendered the service member unable to perform the duties of the service member’s office, grade, rank, or rating; (ii) A physical or mental condition for which the covered veteran has received a VA Service Related Disability Rating (“VASRD”) of 50 percent or greater and such VASRD rating is based, in whole or in part, on the condition precipitating the need for caregiver leave; (iii) A physical or mental condition that substantially impairs the veteran’s ability to secure or follow a substantially gainful occupation by reason of a disability or disabilities related to military service or would do so absent treatment; or

Employee Handbook (iv) An injury, including a psychological injury, on the basis of which the covered veteran has been enrolled in the Department of Veterans Affairs Program of Comprehensive Assistance for Family Caregivers. 3. During the single 12-month period described in paragraph 2, an eligible employee shall be entitled to a combined total of 26 workweeks of leave under paragraphs 1 and 2. Nothing in this paragraph will limit the availability of leave under paragraph 1 during any other 12-month period. 4. Employeeâ&#x20AC;&#x2122;s entitlement to FMLA leave for birth or placement of a child expires 12 months after the birth or placement of the child.

Eligibility Requirements An employee must be employed by the company at least one year and have worked at least 1,250 hours during the previous 12 months.

Leave Taken Intermittently or on a Reduced Leave Schedule 1. An employee may take intermittent leave or may work a reduced leave schedule due to health or health care reasons when medically necessary. 2. A new parent may not take intermittent leave or work a reduced schedule. 3. If an employee is taking intermittent leave, or leave on a reduced leave schedule, the company temporarily may reassign such employee to an alternative position for which the employee is qualified and that has equivalent pay and benefits and better accommodates recurring periods of leave than the regular position of the employee. 4. Intermittent leave time is calculated as the amount of time that is actually taken. In other words, the company will not require an employee to take more leave than necessary for the qualifying reason for the absence.

FMLA Leave for Spouses Employed by the Company 1.

In any case in which a husband and wife are both entitled to leave, the combined total number of workweeks of leave both may take is limited to 12 workweeks during a 12-month period, if such leave is taken for the birth or placement of a new child or to care for a sick parent.

2. The combined total number of workweeks of leave that a husband and wife may take is limited to 26 workweeks during the single 12-month period if the leave is to care for a service member or is a combination of caring for a servicemember and for the birth or placement of a new child or to care for a sick parent.

Notice of Need for FMLA Leave 1. An employee must provide a minimum of 30 days advance notice when the need for leave is foreseeable. 2. When the need for leave is not foreseeable, the employee must provide as much notice as is practicable under the circumstances.

3. In any case in which the necessity for leave under paragraph (above)(1)(d) is foreseeable, whether because the employee’s family member is on covered active duty, or because of notification of an impending call or order to covered active duty in support of a contingency operation, the employee must provide such notice to the company as is reasonable and practicable.

Certifications 1. All employees who are taking FMLA leave are required to submit a Certification form, which is available from Human Resources. 2. The Certification must be returned within 15 days. Failure to return the Certification in a timely fashion may result in the delay or denial of the leave. 3. Employees will be required to re-certify the health condition from time to time such as when the employee requests or requires an extension of the leave, if the circumstances of the leave change, or for other justifiable reasons. 4. The company reserves the right to require a second Certification at company expense. If the first and second Certifications differ, the company may require a third Certification at company expense, which will be controlling.

Benefit Protection 1. If an employee is currently covered under the company’s health benefits plan, these benefits will be maintained during the approved FMLA leave. Employees will be required to pay their portion of all benefit premiums on a monthly basis. Payment must be received by the Human Resources Department no later than the 20th day of the month. Non-payment of more than 30 days may result in termination of coverage. 2. Employees on FMLA leave will not lose eligibility/entitlement to any benefits/employment programs accrued prior to the day the leave commenced. 3. PTO will not accrue during FMLA leave. Pay for holidays, jury duty or bereavement will not be granted unless the employee meets the condition of the applicable policies to be paid.

Paid and Unpaid FMLA Leave The company will require the use of all accrued but unused paid leave (vacation, sick leave, personal leave, if applicable to the case, etc.) prior to any unpaid leave. The FMLA leave time frame will not be increased by the length of any paid leave (paid leave and unpaid FMLA leave cannot be stacked to increase leave time; instead, such leave must run concurrently). Any paid sick or other leave due to a serious health condition will be designated as FMLA leave and will be counted against the employee’s annual FMLA entitlement. In addition, any workers’ compensation or other disability leave resulting from a serious health condition will be designated as FMLA leave. In other words, all FMLA-qualifying paid leave will be designated as FMLA leave and count against an employee’s entitlement.

Return to Work 1. All employees on FMLA leave must notify his/her immediate supervisor at least 4 days prior to returning to work.

Employee Handbook 2. Employees who are on FMLA leave for their own serious health condition must submit a fitness for duty report to his/her supervisor before returning to work. 3. Upon return from an approved FMLA leave, an employee will be restored to his or her original or an equivalent position with equivalent pay and benefits. 4. Certain “key employees” may be denied job restoration at the conclusion of the leave. 5. Failure of an employee to return to work after the exhaustion of leave will be addressed in accordance with the company’s attendance policies.

Initiating A Request For FMLA Leave As soon as an employee is aware of the possibility of an FMLA leave request, the matter should be discussed with the employee’s supervisor, who will provide the employee with the necessary paperwork to be completed by the employee and/or the employee’s health care provider. If the employee provides sufficient notice of the need for leave, the company may conditionally designate the leave as FMLA-qualifying pending the receipt of a Certification from the employee’s health care provider. The final determination as to the request for leave will be made upon receipt of the Certification.

MILITARY LEAVE Leaves of absence without pay for military or Reserve duty will be granted to full-time and part- time employees. If an employee is called to active military duty or to Reserve or National Guard training, or if an employee volunteers for the same, the employee should submit copies of his/her military orders to the Supervisor as soon as is practicable. The employee will be granted a military leave of absence without pay for the period of military service, in accordance with applicable federal and state laws. If the employee is a reservist or a member of the National Guard, they will be granted time off without pay for required military training. Eligibility for reinstatement after military duty or training is completed will be determined in accordance with applicable federal and state laws.

SECTION X G E N E R A L P OL I C I E S CONFLICT OF INTEREST Every employee of American HealthCare, LLC/Heritage Hall has the responsibility to avoid any activity, interest or relationship with other companies or individuals that would create, or might appear to create, a conflict of interest with American HealthCare, LLC/Heritage Hall. The following list would create a conflict of interest. This list is not all inclusive. • Employees shall not accept personal gifts or services offered by any individual or firm doing business with American HealthCare, LLC/Heritage Hall.

• No employee may contract with or otherwise provide services to or receive benefits from American HealthCare, LLC/Heritage Hall other than pursuant to her/his role as an employee of American HealthCare, LLC/Heritage Hall. • No employee may be affiliated with any individual or firm doing business with American HealthCare, LLC/ Heritage Hall or engage in any conduct which would be unlawful or give the appearance of impropriety under the Medicaid and Medicare fraud and abuse provisions or other provisions of the federal and state laws. See American HealthCare, LLC Code of Conduct for more information on conflict of interest.

DISTRIBUTION AND SOLICITATION In order to avoid disruption to or interference with the American HealthCare, LLC/Heritage Hall’s provision of the best possible resident care services, it is essential that all employees comply with the following rules governing solicitation, distribution of literature and access to the company premises during non-working hours. Employees violating any of these rules will be subject to disciplinary action up to, and including dismissal. • Employees are prohibited from soliciting or distributing literature to members of the general public (residents, their family members and other visitors) on company property. • Employees may not solicit or distribute literature for any purpose during working time, exclusive of break time and meal periods. Employees may not solicit or distribute literature at any time for any purpose in immediate resident care areas including resident rooms, halls and corridors adjacent to resident rooms, sitting rooms on resident floor treatment areas and other resident-oriented areas of the facility. • Employees may not distribute literature in working areas of the facility at any time and may not distribute literature in non-working areas during their working time, exclusive of break time and meal periods.

DRUG FREE WORKPLACE American HealthCare, LLC/Heritage Hall has a vital interest in maintaining a safe, healthy and efficient working environment. Being under the influence of a drug or alcohol on the job poses serious safety and health risks to the user and to all those who work with the user. Accordingly, the use, possession, being under the influence or having a detectable presence of drugs or alcohol in one’s system (except where expressly authorized) or manufacture, distribution or sale of such substances on company premises or on-the-job, or off-the-job abuse of such substances which adversely affects or threatens to adversely affect an employee’s job performance or other company interests is prohibited. American HealthCare, LLC/Heritage Hall will employ only individuals who are drug-free and reserves the right to require any employee to submit to a drug test whenever there is an accident or reasonable cause to suspect that alcohol or drug use or abuse may be occurring such that it is or may be contributing to performance problems. Failure to submit to a required drug test may be grounds for termination of employment. American HealthCare, LLC/Heritage Hall has the right and obligation to maintain a safe, healthy and efficient workplace for all of its employees, and to protect the organization’s property, information, equipment, operations and reputation. American HealthCare, LLC/Heritage Hall recognizes its obligations to its residents and their families for the

Employee Handbook provision of services that are free of the influence of illegal drugs and alcohol and will endeavor through this policy to provide drug-free and alcohol-free services. American HealthCare, LLC/Heritage Hall further expresses its intent through this policy to comply with any and all applicable federal and state rules, regulations or laws that relate to the maintenance of a workplace free from illegal drugs and alcohol. As a condition of employment, all employees are required to abide by the terms of this policy and to notify American HealthCare, LLC/Heritage Hall’s management of any criminal and/or drug statute conviction. Should there be reasonable suspicion that an employee is in violation of any aspects of this policy, a drug test will be required. Violation of American HealthCare, LLC/Heritage Hall’s Drug Free Workplace policy will be subject to appropriate disciplinary action, up to, and including termination of employment. Please see Human Resources for an entire copy of the Drug Free Workplace policy.

FINANCIAL OBLIGATION OF EMPLOYEES American HealthCare, LLC/Heritage Hall is legally required to make specific payroll deductions on garnished employee earnings. All employees are encouraged to be good citizens and maintain sound credit ratings.

FIRE ARMS Absolutely no firearms, weapons of any kind or sharp instruments may be brought on to American HealthCare, LLC/Heritage Hall premises.

NAME BADGE All employees are required to wear name badges during working hours while on facility premises. There is no charge for the first name badge or the replacement of a damaged badge. However, there is a charge for name badges lost or damaged through negligence. Should an employee lose or damage their name badge, they should notify their supervisor immediately.

NOISE Noise must be controlled throughout the facility to facilitate the rest of the residents. Consideration of residents must always be the primary concern of employees, so conversations should be conducted as quietly as possible and equipment noises must be kept to a minimum.

PERSONAL LOSSES An employee’s supervisor should be informed immediately of the loss of an item of personal property. Lockers are provided for certain employees and all personal items should be kept secured. American HealthCare, LLC/Heritage Hall is not responsible for items that are lost or stolen. Money or valuables found by an employee should be given to her/his supervisor who will try to locate the rightful owner or turn in such items to the business office. If a lost article is not claimed within thirty (30) days, it will be donated to charity.

PERSONAL PACKAGES Employees must obtain permission before bringing a personal package into or taking one from the facility. The facility reserves the right to inspect any person, packages, lockers, etc. on premises or taken out of the building. Such permissions will eliminate delays and possible embarrassment.

PERSONNEL DISCIPLINARY PROCEDURES American HealthCare, LLC/Heritage Hall currently has a Corrective Action Policy to address performance issues with an employee. While this is typically a three-step process, depending on the severity of the infraction, the initial corrective action utilized may advance immediately to the final phase which may include immediate dismissal.

SAFETY American HealthCare, LLC/Heritage Hall tries to maintain a safe environment for residents, employees and the general public at all times. Your help is also needed to maintain a safe facility. • Please report hazardous conditions and suspicious persons or activities at once and take the initiative to remove hazardous materials immediately, if such removal can be accomplished in a reasonable and safe manner. • A fire and disaster plan has been established for each department. Please become familiar with your specific duties in the event of fire or disaster. • If you are injured or become ill while at work, report it immediately to your supervisor.

A Safety Committee meets regularly to inspect and review any unsafe or potentially unsafe conditions. However, safety begins with each of us. Begin right - by always thinking of safety as you perform your job, or as you learn a new one.

SMOKING American HealthCare, LLC/Heritage Hall believes that the health of its employees is essential to providing quality of care and the service it requires. Therefore, smoking is prohibited unless approved areas have been designated. American HealthCare, LLC/Heritage Hall is under no obligation to provide such areas.

SECTION XI RES I G N AT I O N A ND T E R M I N AT I ON RESIGNATIONS An employee who is considering resignation should discuss the situation with her/his supervisor before making a final decision. This discussion may reveal some factors that might have been overlooked and could change the decision to resign. The following notices of resignation are required:

Employee Handbook • All members of management including, but not limited to, administrators, department managers, assistant department managers, supervisors and other managers are required to give at least four (4) week notice. • All other employees are required to give at least two (2) week notice. • Employees who resign and meet the following criteria will receive 75% of their accrued PTO benefits paid out: • Two (2) years of full-time or part-time service with American HealthCare, LLC/Heritage Hall. • Give appropriate written notice of resignation. • Work through complete notice period. • Return all company property prior to last day of employment or effective date of status change.

If the above provisions are not met, then all accumulated PTO is forfeited upon termination. Any employee terminated under the Corrective Action Guidelines will not be paid for any accrued PTO hours. Employees may not use PTO while working out a notice of resignation. The effective date of the termination is the employee’s last working day. The employee and American HealthCare, LLC/Heritage Hall are free to terminate the employment at their discretion.

LETTERS OF RECOMMENDATION Letters of recommendation are not given upon termination. Requests for reference information must be sent to the facility directly from prospective employers. The facility will release only dates of employment, title at the time of termination and last work location.

SECTION XII S U M MARY The policies contained in this handbook supersede all previous policies and are effective immediately. This handbook is solely intended as a guideline for policies and benefits and is not intended as an expressed or implied contract between the employee and American HealthCare, LLC/Heritage Hall. Nothing in this handbook shall constitute a contract between American HealthCare, LLC/Heritage Hall and the employee. Any employee may separate from her/his employment at any time. Similarly, American HealthCare, LLC/Heritage Hall may terminate any employee from her/his employment at any time at the sole discretion of American HealthCare, LLC/Heritage Hall. We welcome your suggestions for improving company procedures and productivity. The terms, conditions and stipulations of this handbook shall not be reproduced or utilized in any manner, direct or indirect, in whole or in part, by any party without the express written consent of American HealthCare, LLC/ Heritage Hall.

Employee Handbook

SECTION XIII ACKNOW L E D G E M E NT AN D R E C E I P T OF E M PL OY E E H AN D B OOK I acknowledge that I have received a copy of American HealthCare, LLC/Heritage Hall Employee Handbook and agree that it supersedes and replaces all prior handbooks, policies and procedures. I understand that the information in the Employee Handbook represents guidelines only and that the company reserves the right to modify this handbook or amend or terminate any policies, procedures, or employee benefit programs, whether or not described in this handbook, at any time, or to require and/or increase contributions toward any benefit programs. I understand that this handbook is not a contract of employment, express or implied, between me and American HealthCare, LLC/Heritage Hall, and that I should not view it as such, or as a guarantee of employment for any specific duration. I also understand that my employment is at-will and either myself or American HealthCare, LLC/Heritage Hall may terminate the employment relationship at any time, for any reason, with or without cause or notice. I further understand that no Manager or representative of American HealthCare, LLC/Heritage Hall, other than the President/CEO, has any authority to enter into any agreement guaranteeing employment for any specified period of time. I also understand that any such agreement, if made, shall not be enforceable unless it is in a formal written agreement signed by both me and the President/CEO.

_________________________________________________________ Employee Signature

_________________________________________________________ Facility

_________________________________________________________ Department

/ / _____________________ Date

Employee Handbook