Manager handbook 2015 test4ak

Employee Handbook WELCOME! MAIN MENU

About CapSpecialty

Educational Opportunities

Recruitment & Hiring

Termination of Employment

Training & Orientation

Classification of Employees

Compensation & Benefits

Performance Reviews

Transfer

Health Insurance

Holidays / Leave

Confidentiality & Privacy

AVH [Pick the date]

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CapSpecialty, Inc. Capitol Facilities Corporation Capitol Indemnity Corporation Capitol Specialty Insurance Corporation CATA Services Co. North American Kiosk RPG, Inc. Platte River Insurance Company Professional Risk Management Services, Inc. Employee Handbook This handbook is designed to acquaint employees of Capitol Indemnity Corporation and any subsidiaries thereof (the “Company” or “CapSpecialty”) and provide them with information about working conditions, employee benefits and some of the policies affecting employment. Every employee must read, understand and comply with all provisions of the handbook. This handbook is not intended to contain all of the terms or conditions of employment or all of the Company’s policies. In addition, employees should be aware that the Company may revise, supplement or rescind any policies, procedures, or portions of the handbook at any time as it deems appropriate, in its sole and absolute discretion. For your convenience, this handbook is organized into sections to allow you to easily locate information that you need, and is available in electronic format on the employee intranet site.

PLEASE TAKE NOTE OF TWO IMPORTANT POINTS: 1. THIS HANDBOOK IS NOT A CONTRACT AND THE STATEMENTS MADE IN THIS HANDBOOK ARE NOT INTENDED TO FORM A CONTRACT AND MAY NOT BE INTERPRETED TO FORM A CONTRACT BETWEEN THE COMPANY AND ANY EMPLOYEE. 2. THE COMPANY ADHERES TO A POLICY OF EMPLOYMENT-AT-WILL AND EITHER THE EMPLOYEE OR THE COMPANY MAY TERMINATE THE RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE OR REASON. You are encouraged to ask your manager or Human Resources for answers to your questions or concerns. Please also note that this handbook supersedes and replaces any previously issued handbooks, manuals or policy statement of the Company to the extent they are different or may conflict.

Management Version The purpose of the Management Version of the Company’s employee handbook is to outline the Company’s policies and provide guidance on how those policies should be administered (indicated throughout the handbook by italicized, bold content). IT IS MANAGEMENT’S RESPONSIBILITY TO UNDERSTAND THE INFORMATION PRESENTED AND TO POSITIVELY SUPPORT AND ADMINISTER THE POLICIES OF THE COMPANY IN A CONSISTENT AND IMPARTIAL MANNER. The primary objectives of this handbook are:  To establish standards for positive employee relations which sustain and support our company culture.  To communicate company policy, to promote uniform understanding and to facilitate consistent application and administration of policies to employees.  To assist management in fulfilling responsibilities and complying with employment law.

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This handbook is subject to change. Although Human Resources reviews the handbook and solicits feedback from all levels, each member of management should assist in keeping the handbook effective by identifying opportunities for improvements, and making recommendations to Human Resources.

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Employment-At-Will Employees are “at-will” employees. This means that employment with the Company is voluntarily entered into and the employee is free to resign at any time, with or without cause or reason. Similarly, the Company may terminate the employment relationship at any time with or without notice, reason or cause. This policy may be modified only in a written document signed by the CEO and President of the Company. This handbook does not constitute, and should not be read to create, any promise by the Company that the policies set forth in this handbook will be followed in every case. Nothing in this handbook alters an employee’s at-will status. No manager of the Company has the right to enter into an agreement, which is contrary to the foregoing.

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Equal Employment Opportunity Statement The Company is an equal opportunity employer and seeks to insure equal opportunity and equal treatment of all employees and applicants for employment without unlawful discrimination as to race, color, national origin, ancestry, citizenship status, creed, religion, religious affiliation, age, sex, pregnancy, maternity, caring responsibility, marital status, civil partnership, sexual orientation, gender identity or expression, genetic information, disability, military status or other protected status under Federal, state or local law, in all employment decisions including but not limited to recruitment, hiring, compensation, benefits, training, promotion, termination and all other terms and conditions of employment.

The Company complies with the Americans with Disabilities Act regarding reasonable accommodation of employee disabilities. If a disability interferes with the performance of your duties or with your work environment, please inform Human Resources. The Company will work with you to explore reasonable accommodations to address the situation, which would enable you to accomplish the essential functions of the job.

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Our Mission Statement, Vision Statement and Core Values

MISSION STATEMENT TBD VISION STATEMENT To be the preferred specialty insurance company for small and mid-sized businesses in the U.S. CORE VALUES [need to add employee expectations on how to embody these values.]         

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We understand our partners.

We are entrepreneurs.

We take personal initiative.

We are team oriented.

We are problem solvers.

We are responsive and timely.

We support personal growth and learning.

We are creative.

We have fun.

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About CapSpecialty CapSpecialty has been insuring business owners since 1959. The Company pairs specialty insurance, including commercial property, casualty, surety and professional lines, with exceptional service for agents nationwide. CapSpecialtyâ&#x20AC;&#x2122;s paper companies have both admitted and non-admitted underwriting capabilities, an A ("Excellent") rating from A.M. Best, and a commitment to providing customized protection for small and mid-sized businesses in the U.S. Based in Middleton, Wisconsin, CapSpecialty underwrites on the paper of Capitol Indemnity Corporation, Capitol Specialty Insurance Corporation and Platte River Insurance Company.

These underwriting companies are subsidiaries of Alleghany Insurance Holdings LLC, part of Alleghany Corporation (NYSE: Y).

CapSpecialty is very active in our communities, participating in various local charitable events and sponsoring local organizations such as the United Way, American Red Cross, Big Brothers/Big Sisters, and Domestic Abuse Intervention Services.

The Company establishes the time and duration of working hours as required by workload and customer service needs. The corporate office hours are 8:00 a.m. â&#x20AC;&#x201C; 5:00 p.m. (CST), MondayFriday.

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Educational Opportunities The Company encourages employees to continue their education. See the Employee Education & Development Philosophy.

TUITION REIMBURSEMENT The Company will reimburse full-time employees up to 100% of tuition for courses related to the employee’s current job. The Company will also pay up to 50% of the tuition costs related to an approved course of study designed to obtain a degree in a subject area that would add value to the Company and enhance the employee’s preparation for other positions within the Company.

Courses must be pre-approved by the employee’s manager, Policy Team Member and the Head of Human Resources & Administration. The amount of reimbursement will be based on the current cost per credit at the University of Wisconsin – Madison, or other appropriate state college, and based on educational program type (i.e. Bachelor’s Degree, Master’s Degree).

Course work may be offered through colleges, technical schools, or correspondence schools.

Reimbursement is based upon successful completion (C grade or better) of each course and is limited to a maximum of 15 credits per calendar year per applicant (some exceptions may apply with Policy Team Member approval). The employee is responsible for all other costs such as fees, books and any costs over the maximum. The Company follows IRS guidelines with regards to any potential taxation of reimbursement. Please contact Human Resources with any questions.

The application for reimbursement, which can be found on the Intranet, must be presented to the Head of Human Resources & Administration for approval prior to enrollment.

Reimbursement is granted only to full-time employees with at least six (6) months of employment with the Company. Employees who terminate before completion of an approved course are not eligible for reimbursement.

If an employee voluntarily terminates employment within two (2) years of completion of any course which the Company has paid for, the tuition is repayable to the Company on the following schedule:  

Leaving within 0-12 months of completed & reimbursed courses – 100% repayment.

Leaving within 13-24 months of completed & reimbursed courses – 50% repayment.

INDUSTRY EDUCATION The Company pays 100% of all costs associated with the Insurance Institute of America (IIA), Chartered Property Casualty Underwriter (CPCU), Certified Insurance Counselors (CIC) and the Professional Liability Underwriting Society (PLUS). Exam time is provided. When available, the Company also will offer study groups with assigned course leaders (other employees) during business hours.

If the employee takes a CIC, CPCU, IIA or PLUS exam but does not pass the exam, the employee has an opportunity to retake the exam and the Company will pay for the second exam fee incurred. After the second non-pass, exam fees as well as any additional books and class fees, will be reimbursed to the employee only after successful completion of the course.

The Company strongly supports continuing professional education. To recognize employees’ educational achievements, the Company pays a bonus upon reaching certain certifications or designations: Last Revised 01/2015

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    

Any Associate in Insurance Designation - $500 Certified Insurance Counselor (the Company) - $500 Other Certification/Designation directly related to the Employee’s Profession - $500 (needs Policy Team Member & Human Resources approval) Chartered Property & Casualty Underwriter (CPCU) - $1,000 Registered Professional Liability Underwriter (RPLU) - $1,000

These bonuses are considered taxable income.

Please direct any interested employees to Human Resources to order course materials.

Employee attendance at company-provided study groups is encouraged and considered during business hours.

OTHER EDUCATION Seminars and other educational opportunities taken at the request of the Company are paid by the Company at the time of enrollment.

The Company will pay for attendance, on company time, at professional and technical seminars and conferences that are job-related and have been approved by the employee’s manager. Normally, fees for these conferences/seminars will be paid for upfront by the Company. Otherwise, employees can pay for fees using a companyissued corporate credit card then submit a manager-approved Expense Report via the Concur Expense system. Though not encouraged, in extraordinary circumstances, employees can pay for the fees with their personal credit card and submit for reimbursement through the Concur Expense system.

Upon completion of any attended training, employees must update their training records via the Employee Access system. It is the manager’s responsibility to ensure their employees have updated their training records in a timely manner.

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Employee Education & Development Philosophy Employees are the foundation and means by which the Company will grow and prosper.    

Change is occurring at an ever-increasing rate. We need to increase our rate of learning to keep pace.

Everyone arrives with various knowledge and skills. We believe it is each person’s responsibility to increase his/her knowledge and skills.

What was learned in the past does not necessarily prepare us for the future, because the environment is constantly changing.

We believe it is as important to understand the “why” of a process, as it is the “how.”

Therefore, we believe the Company has a responsibility to encourage and support employees’ ongoing education, training and development. Learning and growth need to become a fundamental part of all of our jobs. Job descriptions and work schedules will be adjusted to integrate learning opportunities into each position. Annual budgeting will provide adequate resources for these investments in our workforce.

Development efforts should be focused on achieving mastery of current job responsibilities first.

Development related to future advancement may be pursued once such mastery has been demonstrated. The Company is committed to supporting these self-development efforts to the extent possible while maintaining consistency with our Employee Education & Development Philosophy and in harmony with the Company’s business needs.

A development plan should be developed for all employees and include the following: 1. Corporate New Hire Onboarding Program. Employees are provided with an introduction and overview of the Company to help them become familiar with basic company policies. In addition, employees participate in a formal corporate training program to assist them in becoming familiar with the Company’s various departments and functions.

2. Job-Specific. This is learning geared directly to an employee’s current job description.

The goal is to increase his/her productivity and mastery of skills specific to current needs.

3. Career Path. This addresses the employee’s ability to prepare for a change in job responsibilities or promotional opportunities that may arise.

4. Organizational. Employees should be knowledgeable about certain topics that cross job and departmental boundaries. Project management, time management, process improvement, team development, communications and customer service are examples of skills that every employee should work to improve.

The Performance Management process provides a Training & Development Goals section that should be a part of every employee’s annual review. Managers are encouraged to jointly develop performance plans with their employees and to discuss their employees’ performance with them at frequent intervals (quarterly is suggested) so that at all times employees have a good understanding of their expectations and how their performance is perceived by their managers.

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The Company will support employee development plans by providing the following: Self-Study Resources. These resources include reference books, computer-based training software, professional journals, video-based resources and informal tutoring.

Mentoring. This informal option can be used by new managers and technical positions, such as underwriters, as a resource for assistance in development of their skills. The mentor serves as an advisor, coach and referral agent.

Formal Classes. Classroom training will be made available on-site when practical. There are numerous classroom opportunities to acquire additional training as needed. The Company will pay 100% of the costs associated with classes that are job-related and pre-approved.

Seminars, conferences, and workshops. The Company will also pay 100% of the cost of these educational opportunities if an employee is assigned or approved to attend by the Company. These opportunities must be specifically and directly related to job responsibilities.

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Nepotism Policy In order to avoid the potential for, or appearance of, conflicts of interest or breach of confidentiality, the Company may not permit relatives (including members of the same household) to work in positions where one relative has direct or indirect control or authority over the other, has access to sensitive or confidential information which may be used to affect the other’s working conditions, progress, or performance, and/or reports to the same Policy Team Member and/or Manager.

It is the employee’s/applicant’s responsibility to notify Human Resources of any personal circumstances that might present a conflict with this policy. Conflicts with this policy will be handled on a case-by-case basis. In each instance, management will determine whether a transfer or some other accommodation can be arranged, or whether one of the employees will have to resign or be dismissed.

It is the manager’s responsibility to notify Human Resources if he/she becomes aware of potential conflicts with this policy.

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Personnel Records The Company maintains personnel records and information for each applicant, employee and past employee. This information is kept currently in both paper format as well as maintained in an online database, ADP Employee Access. The Company tries to balance each individual’s right to privacy with the Company’s need to obtain, use and retain employment information.

Personnel records normally may include, but are not limited to, the following:     

Application forms/resumes Payroll information Performance reviews Disciplinary records Employee benefit information

Employees have a responsibility to keep their personnel records up-to-date and should update their online ADP Employee Access records, or notify Human Resources in writing/via e-mail, if any changes in the following occur:         

Name Address Telephone number Marital status Emergency contact information Dependent information Benefit changes, beneficiary changes Military status Educational achievements

Employees are allowed to inspect their own personnel records. A written request to schedule an appointment to review an employee’s personnel file must be sent to Human Resources. A representative from Human Resources will be present at the review. A reasonable charge may apply for any copies.

If an employee disagrees with or finds an error in their records, they may make a written request to correct it. If the request is denied, the employee’s statement of disagreement will, if they wish, be included in their records.

Managers may review the personnel files (personal and medical information excluded) of employees they directly manage, or of an employee they are considering for a position.

As a general rule, all employment-related information is maintained by Human Resources. If managers keep employment-related files (i.e. performance reviews), they must be kept in a confidential manner. Managers must also give the originals of key documents (keeping copies for their own files) to Human Resources for retention in the personnel files.

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Recruitment and Hiring The Company is an equal opportunity employer, and will recruit and hire individuals based solely on legitimate business considerations. As such, managers should coordinate all recruitment and hiring through Human Resources in order to facilitate recordkeeping, consistency and compliance with applicable laws.

As a general matter, the Company attempts to fill job openings above entry-level by hiring from within. However, the decision to hire and promote remains within the sole and absolute discretion of the Company. In this respect, when candidates from outside the Company are considered for job openings, the Human Resources Department will utilize the recruiting methods and sources it deems appropriate to fill the openings. Any candidate for employment must fill out and sign an employment application in order to be considered for hiring.

The Company relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented throughout the hiring process and employment.

Any misrepresentations, falsifications, or material omissions in any of this information or data may result in the Company’s exclusion of the individual from further consideration for employment, or if the person has been hired, termination of employment.

Recruitment Procedures The Company is an equal opportunity employer and hires individuals solely upon the basis of their qualifications for the position to be filled. Managers must coordinate all recruitment and hiring through Human Resources in order to facilitate recordkeeping, consistency and compliance with relevant employment law.

The recruitment process will begin once Human Resources receives the approved “Employment Requisition Form” (see “Employment Requisition Forms” section below) with the current position description attached. Open positions will be posted internally for three (3) working days. However, advertisement may be done simultaneously.

In instances when management determines that the needs of the company require simultaneous recruitment, all internal candidates should receive consideration/preference. All internal candidates should be granted an interview if they meet the minimum job qualifications.

When candidates from outside the company are to be considered for an open position, Human Resources will recruit applicants and utilize methods and sources deemed appropriate to fill the opening. All interviewed applicants must complete an application form and submit it to Human Resources. Applications and resumes will be kept on file for a period of 18 months.

Human Resources will review each application/resume, determine which candidates meet the minimum qualifications for the position, and forward the information on to the hiring manager for review. The hiring manager will select candidates to interview, providing Human Resources with the information necessary to schedule a meeting time (i.e. time needed for each interview, other interviewers, etc.). It is encouraged to have more than one individual involved in the interview process. This individual can interview with the hiring manager or separately.

“Interview Question Checklists” are available for managers to use to create the list of candidate questions. These checklists are available from Human Resources based on the manager’s selection/addition of questions.

To ensure equity and confidentiality, all interviews must be conducted in a confidential manner. Hiring is not based on a single factor or condition, but an accumulation of Last Revised 01/2015

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information from many sources that must be analyzed, evaluated and reviewed before the decision to hire is made.

After interviews have been completed, the hiring manager and Human Resources will discuss the interview results. Primary consideration will be given to skills and qualifications for the position. When the final candidate has been chosen, HR and the hiring manager will discuss and determine the starting salary to be offered. Also, if this is an external recruitment, HR will need to obtain two work-related (i.e. past/current manager) references as well as conduct criminal, and any necessary educational, background checks on the candidate prior to any job offer being made. If an offer must be made prior to the completion of these background checks, such offer will be made contingent upon a favorable outcome, and must be completed prior to the employment start date.

Once the decision has been made, Human Resources will make the job offer. Upon the applicant’s acceptance, the new hire process will begin and Human Resources will notify any external candidates not receiving the position. For internal hires, the manager has the option to make the offer once the decision has been made. Upon internal acceptance, Human Resources will generate the Employee Transaction Form (Appendix, pg. A-1) for approval by the hiring manager, the department manager (if applicable) and the appropriate Policy Team Member. Managers will notify any internal candidates not selected for the position, treating the meeting as a coaching opportunity and providing the candidate with tips and suggestions on professional growth.

Also at the close of the recruitment process (upon candidate acceptance), Human Resources will request that the manager return all original recruitment paperwork, including interview questions and notes, where it will be kept and retained in the recruitment file.

Employment Requisition Forms To initiate the employment process, the hiring manager must complete and submit the Employment Requisition Form (Appendix, pg. A-2) with a copy of the current position description attached. If this is a newly developed position, or if the hiring manager has changed the qualifications and/or responsibilities, the position description must be sent to Human Resources for grade evaluation prior to recruitment. For Temporary or LTE recruitment, managers must complete the Employment Requisition Form Temporary/LTE Position. See “Temporary Employment” for more information on Temporary/LTE recruitment. Both requisition forms can be found on the Intranet.

Temporary Employment The Company will supplement its regular work force with temporary employees when necessitated by periods of peak workload, employee absences, or other situations as determined by management.

Human Resources is responsible for arranging the hiring of temporary employees and should be contacted when the need for temporary employees arises. Hiring managers need to complete the Employment Requisition Form Temporary/LTE Employees (Appendix, pg. A-3) and obtain their department manager/Policy Team Member’s approval signature.

Temporary and limited-termed employees are not eligible for leave or other benefits.

Position Descriptions The purpose of the position description is to provide a record of duties and responsibilities of the position, to provide the minimum qualifications for the position in Last Revised 01/2015

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terms of experience and education, to identify the working conditions and the physical and mental factors and to document other important factors of the job. The position description is also the basis for determining the relative position and value compared to all other positions within the organization.

The position description is written by the manager with input from the employee. It is the manager’s responsibility to review the document with the employee for accuracy, to determine the appropriate weight of each task and to clarify where disagreement may exist.

If the position description is being written for a new position, it is created by the immediate manager, with input from the employee, and reviewed and approved by the next level of management. Once it is approved by management, the position description is forwarded to Human Resources for evaluation.

Position descriptions should be reviewed annually for accuracy during the performance management process, assuring that the duties and responsibilities of the positions are current and appropriately valued. If a position becomes vacant, reviewing and updating the position description should be completed before submitting the “Employment Requisition Form” to begin recruitment.

Relocation The Company will pay relocation expenses for new full-time, exempt employees subject to approval by hiring manager, department head/Policy Team Member and the Head of Human Resources and Administration. Relocation expenses are defined as expenses paid on the employee’s behalf for the transportation of household goods and relocation expenses reimbursed to the employee, including temporary housing and funds paid to employee for any tax gross-up.

Reimbursement for any other expenses would be an exception to the policy and will be reviewed on a case-by-case basis. Human Resources will assist the hiring manager and appropriate Policy Team Member in determining the appropriate amount of relocation expenses to offer the employee.

These expenses may result in amounts which are considered taxable income, and the employee is responsible for any tax consequences. Any questions regarding deductibility of expenses need to be referred to the employee’s personal tax advisor.

The Company does not provide personal tax advice to employees.

The employee will be asked to sign an “Agreement for Payment of Relocation Expenses” agreeing to repay the Company all or a portion of the relocation expenses if the employment is voluntarily terminated or terminated due to gross misconduct, willful misconduct, overt violations of company policy or misconduct (including, but not limited to dishonesty, possession or use of drugs or alcohol, gambling, insubordination, damage to Company property or falsifying reports) within 24 months following relocation. The repayment will be based on the following schedule: Time Employee Has Worked Since “Starting Date” Less than 8 months 8 months but less than 15 months 15 months but less than 19 months 19 months but less than 24 months 24 months or more Last Revised 01/2015

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Percent Owed To Employer 100% 75% 50% 25% 0%

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References/Verifications All requests for references are handled by Human Resources. As a general rule, the Company will only verify dates of employment, position held, most recent salary and rehireable status.

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Talent Scout Program The Company will award a $1,000 cash bonus if we hire a full-time candidate referred by an active full-time employee. This bonus is payable upon hiring the new employee, and only if the referring employee is on the active payroll when payment is due. These bonuses are considered taxable income.

Policy Team Members are not eligible for this bonus. Managers are also ineligible when recommending a candidate within their area of responsibility.

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Termination of Employment In the absence of a specific written agreement, employees are free to resign at any time, and the Company reserves the right to terminate employment for any lawful reason at any time. See our “Employment-At-Will” policy.

Employees are asked to give a two-week notice of their intent to resign. Employees may not take time off during their two-week resignation period, unless pre-approved by their manager.

Managers are responsible for notifying Human Resources promptly when employees resign. A written resignation must be obtained by the manager and forwarded to Human Resources.

Any employee who is absent from work without having notified his or her immediate manager of the absence and the reason for it, will be considered as having resigned, or will be considered to have abandoned their job, after the third consecutive business day of absence.

Human Resources will inform the employee of the benefits to which he/she may be entitled as a result of termination of employment. If the employee is covered under a group health plan through the Company, he/she has the right to choose continuation coverage (COBRA) if they lose this coverage because of termination of their employment (for other than gross misconduct on the employee’s part).

Termination procedures are only guidelines and do not constitute a legal contract between the Company and its employees. In addition, consistent with the Company’s Employment-at-Will policy, the Company maintains the right to terminate employment for any lawful reason at any time.

Managers are responsible for notifying Human Resources promptly when employees terminate. A written resignation (or email) must be obtained by the manager and forwarded to Human Resources. Managers are also responsible for collecting the employee’s access card and other applicable company property on the employee’s last day of employment (See “Manager’s Terminating Employee Checklist”, Appendix, pg. A6). Employees may not take time off during their two-week resignation period, unless pre-approved by their manager.

Upon termination, hourly (non-exempt) employees will be paid for any accrued but unused vacation days (employee must have been employed for more than six (6) months). There is not a payout of time for salaried (exempt) employees.

Notify Human Resources immediately if any employee is absent from work without giving notification of the absence and the reason for it. After three (3) consecutive days, they will be considered as having resigned or as abandoning their job.

Exit Interviews An exit interview is conducted with Human Resources to advise separating employees on benefit continuance options and to close out any remaining business between the Company and the employee. An exit questionnaire is also distributed to employees who voluntarily separate employment, soliciting feedback on workplace issues to try to identify factors that contribute to employee turnover.

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Training and Orientation The Human Resources Department is responsible for the overall development and coordination of the Company’s corporate training and orientation programs. The Company has an “Employee Education & Development Philosophy” which encourages and supports ongoing employee training and education.

The Company’s Employee Orientation Program includes corporate history, policies, benefits and new employee forms and documentation. The Company’s Corporate New Hire Onboarding Program provides training by each department (as selected by the manager) for new employees.

Human Resources is responsible for the overall development and coordination of the Onboarding Program and for implementing the portions of it that cover corporate history, philosophy, policies, benefits and new employee files and documentation. Managers are responsible for providing job and department orientation and welcoming for their employees (See “Manager’s New Employee Checklist,” Appendix, pg. A-4). It is also the manager’s responsibility to ensure their employee attends the scheduled training sessions that are a part of the Corporate New Hire Onboarding Program.

Human Resources may provide information on current external training opportunities.

Managers are responsible for recommending employees for special training programs, for providing on-the-job training and for assigning on-the-job trainers. Such training will be conducted during normal working hours, whenever practical.

Upon completion of any attended training, employees should update their training records in the employee self-service site, ADP Employee Access, or complete and submit a “Training Notification Form” to Human Resources.

Examples of work-related training include (but are not limited to):  Association Memberships  Certifications Earned  Conferences  Continuing Education Courses  Designations Earned  Industry Education Classes  On-site Training  Seminars/Webinars It is the manager’s responsibility to ensure their employees have updated their training records in a timely manner. Employees are encouraged to update their training records through ADP Employee Access or submit the Training Notification Form (Appendix, pg.

A-8), which is available on the Intranet.

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Classification of Employees REGULAR AND TEMPORARY/LIMITED TERM EMPLOYEE (LTE) The Company occasionally supplements its regular work force with temporary employees.

Temporary/LTE employees are not eligible for leave or other benefits. All other employees are considered regular employees.

EXEMPT (salaried) AND NON-EXEMPT (hourly) All regular employees are categorized as either exempt or non-exempt for pay purposes, depending on the nature of their job duties and methods of compensation.

Employees are considered exempt if they hold an administrative, executive or professional positions and are paid a predetermined salary regardless of the number of hours worked each week. Exempt employees are not entitled to receive overtime pay.

Employees are considered non-exempt if they are compensated on an hourly basis and are therefore entitled to receive overtime pay after working 40 hours in a given week. California hourly employees receive overtime pay after working eight (8) hours in a given day.

FULL-TIME AND PART-TIME Regular employees are also categorized as either full-time or part-time. Full-time employees are those employees who regularly work 40 hours per week. Full-time employees are entitled to receive all of the benefits described in this handbook.

Part-time employees are those regular employees who regularly work less than 40 hours per week. Part-time employees working at least 25 hours per week will receive prorated health and dental insurance, and applicable time off. Additionally, part-time employees working at least 25 or more hours per week will be eligible for life insurance and short-term and long-term disability coverage.

Employees are classified in these three ways for pay and benefit purposes. Human Resources can provide you with more information on work schedules and uses of leaves if you manage part-time employees.

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Compensation The Company’s compensation program considers both direct pay and benefits. This policy will address direct pay.

WAGE AND SALARY STRUCTURE The Company believes that it pays wages and salaries that compare favorably with positions in other companies having similar responsibilities and requiring similar skills.

Position Evaluation and Grading Using the position descriptions as the starting point, positions are evaluated and marketpriced using several sources of information. Each position has an important role to play within the organization, and each position has a minimum and maximum value the Company will pay, or is willing to pay, for that function. Therefore, positions are compared to one another internally, which develops the hierarchy of positions within the organization, and then they are compared externally for going rates of pay.

SALARY REVIEW The Human Resources Department has been appointed to establish and review all wages and salaries. It is the responsibility of Human Resources to determine salary ranges and whether the salaries of individual employees accurately reflect their job performance and responsibilities.

Merit increases will be based on the performance of the individual employee, at the discretion of the manager, and adjustments to salary ranges will normally be approved by Human Resources.

Managers may recommend salary increases for their employees at their discretion, though this is done generally in conjunction with regular performance reviews. Recommendations need to be reviewed by department heads and/or Policy Team Member, and approved by Human Resources.

It is Company policy to review the job performance of each employee on a regular basis.

Performance reviews will normally occur in January – March of each year. Effective date for company-wide performance reviews and any applicable merit increases will be the first full payperiod in April. New hires should be reviewed upon completing six (6) months of employment.

Reviews may take place, however, at any time deemed appropriate. (See “Performance Reviews” policy for more information.)

On each payday, employees can view their online pay statement via ADP Employee Access which shows gross pay, deductions and net pay. State, federal, city (if applicable) and Social Security (FICA) taxes, employee contributions to Company benefit plans and other miscellaneous deductions will be deducted automatically, and, if required, based on the employee’s signed authorization.

OVERTIME Overtime compensation will be paid to hourly employees who work in excess of forty (40) hours during the normal workweek at one and one-half times their regular hourly rate. The overtime calculation includes only actual hours worked. Vacation, sick, holiday and personal hours are not used in calculating overtime. For California employees, overtime is paid to hourly employees who work in excess of eight (8) hours per day. All overtime must be pre-approved by the employee’s manager.

Overtime should be performed only when a business need is presented and only if preapproved by the manager.

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Pay Policy All employees are paid on a bi-weekly basis, through direct deposit.

The Company follows the federal and state wage and hour laws (Fair Labor Standards Act).

Those laws have a variety of provisions, including differing requirements for wages, overtime, vacation, absences, etc., for hourly and salaried employees. That is why there are some differing policies on these issues in the handbook, based upon salary and hourly status. If employees have any concerns about their pay, or believe there have been errors in payment amount, in withholding or in deductions in pay for absences or other issues, employees must inform their manager or Human Resources. Employees need to be specific in identifying their concern or the error.

The Company will review the concern and will correct any errors as quickly as possible.

Employees have a right to raise concerns. The Company appreciates their employees’ concerns because it allows the company to correct pay issues for the employee before they continue and become “accounting” issues. No employee will suffer retaliation for raising a concern about pay.

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Performance Reviews The goals of performance reviews are to maintain communication between the employee and their manager, identify expectations, problem-solve obstacles to performance and recognize the employee’s accomplishments.

The Company believes that the job performance of each employee should be reviewed on a regular basis. Performance reviews will normally occur in January – March of each year. The effective date for Company-wide performance reviews and any applicable merit increases will be the first full pay-period in April, as confirmed by Human Resources. New hires are normally reviewed upon completion of six (6) months of employment. Reviews may take place, however, at any time deemed appropriate.

The performance review is a written evaluation of the employee’s job performance. Reviews are based on job-related competencies as related to job responsibilities/results, and also include annual goals and objectives, a development plan, training goals and employee comments.

Information derived from the performance review may be considered when making employment decisions affecting an employee including, but not limited to, training needs and opportunities, compensation, promotions, transfers or continued employment.

After the written evaluation is completed, the manager and employee will generally meet and discuss the review, assess the employee’s strengths and weaknesses in a constructive manner and set objectives and goals for the period ahead. The employee should be given the opportunity to examine the written review and make written comments about any aspect of it.

The employee and manager should sign and date the review, obtain the appropriate department head and/or Policy Team Member’s signature and forward it to Human Resources.

Managers may recommend salary increases for their employees at their discretion, though this is done generally in conjunction with regular performance reviews.

Recommendations need to be reviewed by department head and/or Policy Team Member and forwarded to Human Resources and approved prior to communicating the increase to the employee.

Managers are encouraged to jointly develop performance plans with their employees and to discuss their employees’ performance with them at frequent intervals (quarterly is suggested) so that at all times employees have a good understanding of what their expectations are and how their performance is perceived by their managers.

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Promotion To fill vacancies above the entry level, management prefers to promote from within and will first consider current employees with the necessary qualifications and skills, unless outside recruitment is deemed to be in the Company’s best interest.

Employees are encouraged to seek advancement opportunities and to obtain promotion and career guidance from their manager, department head and/or Human Resources.

Candidates for promotion will normally be screened and selected on the basis of, but not limited to, job-related qualifications, performance appraisals, attendance and work records. Employees with documented performance issues are not eligible for promotion.

A promotion is the advancement to a position that has significantly more responsibility and is broader in scope than the previous position.

Employees being promoted, or regraded, to a higher grade level will receive a monetary reward calculated off their base salary. Guidelines for such rewards are as follows: 1 grade 2 grades 3 grades

6-10% 8-12% 10-14%

If the increase does not bring the employee to the minimum of their new grade level, their salary will automatically be moved to the minimum.

Promotional increases will be reviewed on a case-by-case basis. Factors to be considered are:     

The employee’s current pay relative to the new salary range.

The relative difference in the salary ranges between the prior job and the new job.

The salaries paid to the employee’s co-workers.

The employee’s anticipated performance.

The new job’s salary relative to market/industry pricing.

Promotional increases should not exceed the maximum specified in the guidelines.

Other situations where a higher promotional increase is being requested may require the advance approval of the CEO. Promotional increases should not be communicated to the employee until the appropriate approvals have been obtained.

If promotion results in a new manager for the employee, the employee’s next performance evaluation will most often be a joint effort between the new and former managers.

“Employee Transaction Forms” (Appendix, pg. A-1) are generated by Human Resources for employment status changes of employees resulting in salary change. If managers have any type of employment changes for their staff, they should contact Human Resources prior to communication of such changes.

Demotion Employees who are involuntarily demoted for reasons other than performance or discipline may continue to receive their current rate of pay unless the current rate is above the maximum of the range of the new grade level. In that case, the pay rate may be “frozen” and there will be no increase in pay as long as the pay rate exceeds the maximum for the new position. If employees voluntarily accept a new position that is a Last Revised 01/2015

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grade lower (or are involuntarily demoted due to performance), a salary review will be conducted according to the guidelines established by management to determine the new pay rate.

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Time Sheets Hourly employees are required to complete an individual, electronic bi-weekly time sheet showing the daily time worked and any vacation, sick or personal time used. It is the employee’s responsibility to complete the time sheet on a daily basis and forward it as an e-mail attachment to their manager for approval on a bi-weekly basis.

Both the employee and the manager are responsible for the accuracy of the time sheet PRIOR to submitting it to Human Resources. It is also the manager’s responsibility to make sure all time sheets have both signatures. Falsification of time records by an employee may result in disciplinary action, up to and including termination, for that employee.

Hourly employees must record the “Start” and “Finish” times and dates on their time sheet (a copy of the Company’s payroll schedule is available on the Intranet). Upon entry, the “Total Hours Worked” column will automatically update as well as the “Hrs Summary” section field on the bottom of the time sheet, summarizing the Week 1 and Week 2 hours. All categories totaled together should equal 80 hours for full-time employees, unless an employee has received permission to work overtime.

Regular Hours include all hours worked. Record times to the nearest quarter of an hour (increments need to be entered as minutes). Only regular hours are used in calculating overtime. If a full-time employee’s hours worked do not total at least 40 hours for that week, the employee’s available personal and/or vacation time will be used to make up the additional hours needed to reach that total of 40 hours. AT NO TIME can an hourly employee work extra hours one week to make up for time not worked in another week.

For example, if an employee works only 35 hours during Week 1, that employee cannot make up the additional 5 hours needed during Week 2 (or in any other week) and be paid for 45 regular hours. They must either make up the extra 5 hours during Week 1, or use their available personal and/or vacation time to supplement the missing hours.

(NOTE: In California, overtime is paid to hourly employees who work more than eight (8) hours in any day.)

Overtime Hours are those hours worked beyond 40 hours in a single week (except in California where overtime is paid to hourly employees who work more than eight (8) hours in any day). All overtime must be pre-approved by a manager.

Vacation and personal time off may be recorded in quarter hours by hourly employees. Vacation and personal time off are not used in calculating overtime.

Sick Time Usage may be recorded in quarter hours by hourly employees. If an hourly employee uses sick time during the week, they may make up the time in the same week, the sick time pay will be decreased by the number of minutes/hours the employee made up. (Example: If an hourly employee used 4 hours of sick time and works 3 extra hours in the same week to make up the hours missed, the employee will be paid for 1 hour sick time and 3 regular hours.) Sick time hours are not used in calculating overtime.

Holiday Hours are not used in calculating overtime.

Jury Duty hours are not used in calculating overtime. For hourly employees, it is limited to 10 days in a 12-month period.

Leave Without Pay is granted only if previously approved by a manager, and only if employee’s personal and vacation time balances are zero (0).

Travel – Hourly Travel All in a Day’s Work. If an employee is required to travel during the workday, that travel time is compensable.

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Travel Away from Home. If an employee is required to travel away from home while a passenger on a plane, train, bus or car, travel time occurring during and outside of the employee’s regular hours, such time is compensable. However, bona fide meal periods may be excluded.

Travel may differ from state to state. Questions on what is considered paid-time should be directed to Human Resources.

When documenting your daily hours, the total time must be recorded as total hours worked, plus incremental hours worked (minutes). Minutes worked MUST be rounded to the nearest quarter (1/4) hour and recorded as minutes. Please refer to the table below.

Total Minutes Worked: 00-07 08-22 23-37 38-52 53-60

Record on your time sheet as: 0:00 0:15 0:30 0:45 1:00

Managers are responsible for the verification of correct calculation of all time sheets. This is extremely important to the efficiency of payroll. If there are any questions about how to administer hours, please call Human Resources PRIOR to submitting time sheets to Human Resources.

Managers should collect the time sheets via e-mail the Thursday before pay week. After reviewing time sheets for accuracy, managers must email them to the “Human Resources Time Sheet Processing” mailbox address by 12:00 noon on the Friday preceding payday (deadlines subject to change based on holidays; notice of any changed deadlines will be sent to all employees).

The time sheet is an official record of the employee’s time on and off the job to comply with wage and hour laws and must be accurate. Each form will include a two-week period coinciding with the Company’s pay period.

An example Time Sheet is on page A-7 in the Appendix.

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Transfer The Company may, at its discretion, initiate or approve employee job transfers from one job to another and from one department to another.

A lateral transfer is maintaining the same grade level, which means the new position is considered to have the same responsibility level and scope as the previous position. There will normally be no salary increase when an employee is transferred to a new position at the same grade level.

If the transfer results in a new manager for the employee, the employeeâ&#x20AC;&#x2122;s next performance evaluation will most often be a joint effort between the new and former managers.

Demotion Employees who are involuntarily demoted for reasons other than performance or discipline may continue to receive their current rate of pay unless the current rate is above the maximum of the range of the new grade level. In that case, the pay rate may be â&#x20AC;&#x153;frozenâ&#x20AC;? and there will be no increase in pay as long as the pay rate exceeds the maximum for the new position. If employees voluntarily accept a new position that is a grade lower (or are involuntarily demoted due to performance), a salary review will be conducted according to the guidelines established by management to determine the new pay rate.

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Benefits Program The Company strives to have the most competitive benefits program available. Summary plan documents are available for review. While it is the intent of the Company to keep them as a permanent part of its employee benefits, the Company must necessarily reserve the right to modify or discontinue individual plans.

If questions regarding the application of benefit information in this handbook should arise, reference may be made to the appropriate plan document contained in the Human Resources Department. In instances where this handbook and our human resource policies or plan documents contradict each other, the plan documents will always govern.

Employees are responsible for notifying the benefit provider of any changes in address or marital status immediately. Failure to do so may have serious consequences such as non-coverage of dependents.

HEALTH INSURANCE All full-time employees are eligible to enroll within the first 30 days of employment without submitting written evidence of insurability. Insurance coverage begins on the 31st day of employment. Approximately 80% of the premium costs are paid by the Company, with each employee paying the remaining 20% through payroll deduction. Part-time employees working at least 25 or more hours per week are eligible for pro-rated health coverage. 

Non-WI Office Employees - Remote and branch office employees are eligible for health insurance coverage through UnitedHealthCare (UHC), with two plans to choose from – UHC Choice or UHC Choice Plus.



Wisconsin - Employees in the Wisconsin office have two medical plans available – Dean HMO or Dean Point of Enrollment (POE).

DENTAL INSURANCE Employees in all the offices are eligible for dental insurance coverage through Humana Dental Insurance. All full-time employees are eligible to enroll within the first 30 days of employment.

Insurance coverage begins on the 31st day of employment. Approximately 80% of the premium costs are paid by the Company, with each employee paying the remaining 20% through payroll deduction. Part-time employees working at least 25 or more hours per week are eligible for prorated dental coverage.

LIFE INSURANCE All regular employees working 25 hours or more per week are provided with basic life and accidental death and dismemberment insurance coverage. Premiums are paid for by the Company. Please refer to your policy for complete details. In addition, employees have the option of purchasing, through payroll deduction, dependent life insurance coverage on their spouse and/or children and/or supplemental coverage on themselves at competitive rates.

SHORT-TERM DISABILITY Short-term disability coverage premiums are paid for by the Company for all regular employees working 25 or more hours per week. The coverage takes effect on the 30th day of disability due to sickness or accident. Short-term disability coverage pays 60% of the employee’s regular base salary at the time leave starts, for up to 22 weeks (subject to plan maximum).

The first 29 calendar days of absence due to sickness or accident are covered by the Company’s Sick Leave or Open PTO policies at 100% of regular base salary. Short-term disability then takes over from the 30th day through the 22nd week, after which time Long-term disability coverage may begin.

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The time an employee is off for a disability will be counted against Family and Medical Leave if the disability constitutes a serious health condition (FMLA only applies to the Wisconsin office).

See the plan document for further details.

LONG-TERM DISABILITY Long-term disability coverage premiums are paid for by the Company for all employees working 25 or more hours per week. Long-term disability benefits begin after you have been disabled for 180 days. Long-term disability pays 60% of the two-year average of the employee’s W-2 earnings. Your age at the time of disability affects the length of time you are eligible to receive disability benefits.

See the plan document for further details.

RETIREMENT BENEFITS The Company offers a 401(k) qualified savings plan as a vehicle for employees to save for retirement. This before-tax deduction is available to all regular employees the first of the month following their date of hire.

Deposits made by the employee and company matches of those deposits are immediately vested. The employer shall make a matching contribution of 100% of salary deferral contributions up to 5% of pay for the plan year. The plan’s investment funds are administered

by Principal Financial Group.

FLEXIBLE SPENDING ACCOUNT – SECTION 125 The Company provides a flexible spending program for full-time employees (40 hours/week).

The program allows certain health and dependent care expenses to be funded on a pretax basis. The benefit categories that are available are: 

Dependent Care Reimbursement



Health Care Reimbursement (including prescriptions, vision and dental expenses)

See the plan document for further details.

VISION INSURANCE All full-time and part-time (25+ hours/week) employees are provided with the option to elect vision insurance beginning the first of the month following their date of hire. This plan includes coverage for exams, frames, lenses, and contacts, as well as discounts on laser vision correction. It is a voluntary benefit and the cost is paid 100% by the employee.

EMPLOYEE ASSISTANCE PROGRAM (EAP) The Company offers free, confidential counseling services through the Empathia, Inc. organization to our employees and their immediate family members. Their LifeMatters website contains a wide array of helpful resources and information (www.mylifematters.com; enter CIC1 as the password). Professional counselors are also available at all times at 1-800-634-6433 to provide assistance to employees and their eligible dependents for a wide range of issues, including:      

Family or job concerns Legal and financial worries Alcohol or drug abuse questions or problems Emotional or stress-related issues Family and dependent care needs Other personal problems

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Assistance from the EAP includes telephone and in-person assessments, information and crisis intervention. The current toll-free number is 1-800-634-6433, or online at www.mylifematters.com.

The EAP also provides free management consultation services to managers who are working with employees troubled by personal problems or performance issues. Any manager can utilize this service by accessing the website and entering the Company’s password – CIC2 (managers login only) – or by calling their toll free number. Both will provide information and ongoing support. If calling, a trained professional will: 

Listen to concerns



Help clarify options



Help create a plan for addressing the situation



Provide ongoing support for the manager, the employee and/or the work group

In the event of a traumatic event, an employee assistance counselor may be available for crisis intervention on-site. Please see Human Resources for more information.

IDENTITY RECOVERY COVERAGE The Company offers free Identity Recovery Coverage to all employees. Identity Recovery Coverage provides you with the assistance and expertise to get through the identity theft recovery period.

WELLNESS PROGRAM The Company recognizes the importance of health and wellness, healthy eating, exercising, and balance in our lives. The Company offers Middleton Office employees use of the onsite fitness facility, and a $25/month (up to $300/year) subsidy for employees not in Middleton if they join a fitness club or an organized weight loss program. Employees may also be eligible for a reduction in their health insurance premium if they participate and qualify under the Company’s Wellness program.

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Holiday Bonuses Holiday bonuses are issued to full-time employees each December based on years of service to the company as follows: 1-5 months 6 months 1+ year 2 years to 4+ years 5 years to 9+ years 10 years to 14+ years 15+ years

$50.00 $75.00 $100.00 $200.00 $300.00 $400.00 $500.00

Part-time employees receive a pro-rated holiday bonus. Employees must be on the Company payroll at the time of pay out to be eligible for the bonus. The holiday bonus is considered taxable income. Policy Team Members are not eligible for this bonus.

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Holidays The Company observes holidays each year as determined by management. Eligible employees will be given a day off with pay, based on their scheduled work time for each holiday observed.

If someone is scheduled to work 40 hours per week, the daily allocated time would be eight (8) hours, even if their work hours varied on a daily basis within the week. If an employee works 25-39 hours per week, holiday pay is pro-rated, depending on the average number of hours an employee is scheduled to work per week.

The Company observes the following eight (8) days as paid holidays:        

New Year’s Day Presidents’ Day Memorial Day Independence Day Labor Day Thanksgiving Day Day After Thanksgiving Christmas Day

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Annual Incentive Plan All employees of the Company are participants in the Annual Incentive Plan (AIP).

The AIP is based upon a Target Opportunity established for each Participant, expressed as a percentage of such Participant’s annual base salary. The amount of the award can vary from 0% to 150% of the Target Opportunity depending upon the Company achieving its corporate financial goals, as established by the Compensation Committee, and your personal performance.

A certain percentage of each employee’s Target Opportunity is to be paid at the discretion of the employee’s manager based on the achievement of the employee’s personal goals and objectives. Employees are not entitled to receive any award under the AIP if the Company Objectives are not achieved, regardless of whether the employee achieves their personal goals and objectives with respect to the Plan Year.

All award payouts are at the discretion of the Compensation Committee and are subject to the terms and conditions of the AIP. Capitalized terms used herein and not defined shall have the meanings set forth in the AIP plan document.

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On-The-Job Injury – Worker’s Compensation If an employee sustains an injury while performing work for the Company, the accident must be reported immediately to Human Resources. The employee must submit information for worker’s compensation purposes; however, not every work-related injury is covered by worker’s compensation. Also, employees and managers should report to Human Resources any injury to an individual who is not an employee where such accident occurs on Company premises, regardless of the extent of injury.

The time an employee is not at work for a work-related injury will be counted against any applicable Family and Medical Leave time (Wisconsin only) if the injury constitutes a serious health condition.

It is the manager’s responsibility to report all employee and visitor injuries to Human Resources immediately.

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Open Paid Time Off (PTO) The Company recognizes the need for employees to take time away from the office to creatively recharge. The Company also believes in taking personal responsibility in managing time, workload and results. To that end, this Open PTO policy has been implemented in which each exempt (salaried) employee is afforded the flexibility to take vacation and time off for illness* (for self or dependents**) as necessary. Time taken under this policy will not be limited – employees are encouraged to take the time needed to operate at peak performance.

Employee responsibilities:  Keep managers and team members informed by giving notice at least two (2) weeks ahead of the scheduled PTO. All PTO is subject to manager approval.  Update manager and team members as soon as possible when you need to be out unexpectedly.  Be available when you are needed. Customer calls, staff meetings and other timesensitive responsibilities must be covered regardless of your personal work schedule. If you have planned PTO, make sure to coordinate with your manager and team members to ensure adequate coverage for any of your responsibilities during any PTO.  Be productive when at work. Employees are expected to meet their performance goals consistently and successfully.

Details:  Open PTO policy is only available to exempt (salaried) employees.  Absences for illness totaling three (3) or more consecutive business days require written confirmation from a doctor upon return. A doctor’s release to return to work may also be required.  Approved absences for illness/accident that result in approved short-term disability (STD) needs (i.e. Family & Medical Leave absences) will be covered as follows: o The first 20 working days may be paid 100% of regular base pay under the Open PTO policy. o Approved short-term disability time off is paid by the carrier, at 60% of regular base salary, and covers absences beginning with the 30th day of disability. Open PTO may be used to supplement the remaining 40% of pay. Note: Open PTO, or any other pay, cannot be substituted during long-term disability (LTD). o Any additional/approved time off may be paid at 100% of regular base salary under the Open PTO policy.  Time off under the Open PTO policy does not “accrue” as in traditional plans and, as such, employees will not be compensated for “unused” PTO upon termination of employment.  Abuse of this Open PTO policy may be cause for discipline, possibly resulting in immediate dismissal.

*“Illness”

for purposes of this policy is broadly defined and may include illness, injury or medical condition, or medical appointments, or to address the effects of domestic or family violence, or sexual assault. **“Dependent”

for purposes of this policy means an employee’s: spouse; domestic partner; child (minor or adult biological, adopted, or foster child, stepchild, legal ward, and child of an employee standing in loco parentis); parent or spouse/domestic partner’s parent (including biological, adoptive or foster parent, stepparent or legal guardian or person who stood in loco parentis when employee or spouse/domestic partner was a minor); grandparent; grandchild or sibling.

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Terminated employees may not take time off during their two-week resignation period, unless pre-approved by the manager.

If an employee has been sick for three (3) or more consecutive calendar days, managers must request the employee present written confirmation from a doctor, and in some cases a return to work release statement, and submit it/them to Human Resources.

If managers are unavailable or unable to be reached for approvals, managers need to make sure that their employees know who to contact in their absence. Managers must also consult with Human Resources prior to taking any disciplinary action necessary for abuse of this policy.

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Personal Time All regular full-time, non-exempt (hourly) employees receive 40 hours (five (5) days) of personal time per year. Part-time employees working at least 25 hours per week shall receive pro-rated personal time. Personal time usage must be preapproved by the employeeâ&#x20AC;&#x2122;s manager and may be used in 15-minute increments. If an employee has scheduled personal time off but turns ill during that time, it should still be recorded as personal time. For exempt (salaried) employee time off, please refer to the Paid Time Off policy.

All new hourly employees hired on or after July 1 will receive 20 hours of pro-rated personal time (adjusted accordingly for part-time employees). Up to eight (8) hours of personal time can be carried forward into the next year.

Upon termination, an employee will not be paid for any accrued or unused personal time.

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Vacation (Non-Exempt Employees) All regular non-exempt (hourly) full-time part-time employees (working at least 25 hours per week) shall accrue paid vacation time. Part-time employees accrue vacation on a pro-rated basis (based on the scheduled number of hours that the employee works each week). The amount of paid vacation to which an employee accrues is based upon previous relevant work experience as determined by the Company in its sole discretion and the employee’s years of service at the Company. Vacation time may be taken in fifteen-minute increments. All vacation time must be preapproved by the employee’s manager. The vacation year is January 1 to December 31.

Employees covered by this policy are entitled to paid vacation as follows: 1. Years of Relevant Work Experience Vacation Earned Per Year (Accrual Rate Per Month) 1 through 5 years 10 days (6.667 hrs/mo) 6 through 10 years 15 days (10 hrs/mo) 11 years 16 days (10.667 hrs/mo) 12 years 17 days (11.333 hrs/mo) 13 years 18 days (12 hrs/mo) 14 years 19 days (12.667 hrs/mo) 15+ years 20 days (13.333 hrs/mo) 2. An employee should be in the service of the company for six (6) consecutive months to become eligible to use paid vacation time, unless previously approved. Note: Vacation time begins accruing on the first day of employment.

3. When a scheduled holiday on which the office is closed occurs within an employee’s vacation period it is not to be counted as a vacation day. If an employee has scheduled vacation but becomes ill during that time, it should still be recorded as vacation.

4. A maximum of five (5) days (40 hours) of vacation may be carried forward into the next calendar year. Any accrued but unused vacation greater than five (5) days will be lost and not paid if not used in prior calendar year.

5. The vacation year is January 1 to December 31. Five years of service must be completed by December 31 for additional vacation to be given the next year. For example: 

Date of Hire 5/6/15 with no previous related work experience – would not be eligible for 15 days of vacation until 1/1/21.  Date of Hire 5/6/15 with three (3) years previous related work experience – would not be eligible for 15 days of vacation until 1/1/18.

6. An employee will accrue current year time off on a monthly basis, based on the above work experience schedule. 

For example, an employee with seven (7) years of experience as of current year will earn 10 hours per month.

7. Time off resulting in negative balances is allowable (per manager approval), but may not exceed the employee’s expected annual maximum.

8. Upon termination, an employee covered by this policy will be paid for any accrued but unused vacation days earned during the year of termination, plus an accrued maximum of five (5) days (40 hours) from prior years. Likewise, if the employee at termination has a negative balance, this amount will be deducted from the payout amount and may result in the employee paying the Company back for time used but not accrued, in accordance with all applicable laws. Employees may not take vacation time during their resignation period, unless previously approved. If an employee terminates within the first six (6) Last Revised 01/2015

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months, either through their decision or the Company’s, or if the employee is terminated for gross misconduct, the employee is not eligible for any vacation payout.

It is the manager’s responsibility to review their employee’s time off totals via ADP Manager Access to ensure accurate recordkeeping. Terminated employees may not take vacation time (nor personal or sick time) during their two-week resignation period, unless pre-approved by the manager.

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Service Awards The Company recognizes years of service to the organization for employees who have completed certain levels of years of service to the Company (i.e. 2, 5, 10, 15, 20, 25 years, etc.)

Employees recognized will receive a monetary award through payroll (taxable income) in the amount of $100 for each year of service to the Company.

Employee Recognition The Kudos Koupon Program recognizes employees that go “above and beyond” for the Company. Employees can give “Kudos Koupons” to immediately recognize the efforts of fellow co-workers. Giving a “Kudos Koupon” should be based on the recipient’s ability to go the extra mile, take initiative, resolve problems and be a team player, as well as through their volunteerism through the Company.

A “Kudos Koupon” is worth $5 ($25 maximum) and can be redeemed for a cash reward through payroll (taxable income). “Kudos Koupons” can be accumulated over time and are redeemed through Human Resources (a minimum of $20 required). Koupons MUST be signed by the awardee’s manager before distribution.

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Employee Emergency/Safety In case of emergency, dial 9-911.

The Company is committed to the health and safety of its employees. To that end, we will make every effort to maintain a safe and healthy working environment. If an employee has any concerns about their working conditions, please contact Administration Services or Human Resources.

Employees should be familiar with the location of fire alarms and exits as well as the Company’s emergency procedures. In case of a fire or severe storm warnings, DO NOT USE ELEVATORS. Fire: Exit building using stairways and nearest exit.

Storm/Tornado: Take shelter in stairways and restrooms or proceed via stairways to lower levels.

Bomb Threat: Be calm, be courteous, listen and do not interrupt the caller. Try to identify as many characteristics as possible about the caller and get as many details about the threat as possible (e.g. Where is the bomb? When will the bomb go off? What does the bomb look like? Where are you calling from?). Notify your manager as soon as possible as well as the police.

See the Emergency Evacuation Policy.

Please Note: If you need to dial 911 to place an emergency call, you must first dial a “9” for an outside line and then 911 or 9-911.

If you accidentally dial 911, do NOT hang up. Stay on the line; let them know that you dialed 911 by accident and that you are OK. Depending upon the municipality, the responding organization (police, fire, medical) may ask additional questions or take your number and call you back to insure that there is not an emergency.

Calls to 911 from the Middleton office are routed to the Middleton Police dispatch center. If this dispatch center is busy and can't take the call, the call is forwarded to the Dane County Emergency Dispatch Center. When placing a 911 call be prepared to provide them specific information as to the location of the emergency (building address, floor, location on the floor, call back number) and be prepared to have someone meet the responders at the building entrance or reception area.

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Tobacco-Free Workplace Policy The Company is a tobacco-free environment. The use of tobacco products of any kind or electronic cigarettes (e-cigarettes) by anyone where our employees work is prohibited. The use of tobacco products and e-cigarettes is also prohibited in company-owned vehicles.

The Company has a vital interest in maintaining a safe and healthy environment for its customers, visitors and all who work here. The company recognizes that smoking, vaping, breathing secondhand smoke or e-cigarette vapor or using tobacco products of any kind (to include chewing tobacco) contribute to serious health consequences. 

Use of tobacco products and e-cigarettes is permitted only in areas designated and/or posted as “smoking areas” by the building owner and/or property manager. You may not use tobacco products or e-cigarettes anywhere within the Company’s leased workspace.



Lit tobacco products and/or tobacco residue must never be thrown on the ground anywhere inside or outside of the designated smoking areas. Employees discovered littering will be considered in violation of this policy.

Employees with inquiries, complaints or disputes about the use of tobacco products or ecigarettes in the workplace should contact their manager or Human Resources. Any disputes arising under the tobacco-free workplace policy, which involve the health concerns of any individual desiring a smoke-free area, will be accorded priority. Employees and applicants for employment who exercise or attempt to exercise any rights granted under the tobacco-free workplace policy, are protected from retaliatory adverse personnel action which includes, but is not limited to, dismissal, demotion, suspension, disciplinary action, negative performance review, any action resulting in loss of status, compensation or other benefit, failure to hire, failure to appoint, failure to promote, transfer or assignment, or transfer or assign against the wishes of the affected employee. If any employee or applicant feels any such adverse personnel action has been taken against them for exercising their rights under the Smoke-Free Air Act and/or this policy, they should contact Human Resources who shall be responsible for investigating and appropriately resolving any such complaints. Any employee who violates this policy is subject to discipline, up to and including, termination.

Enforcement of this policy is the responsibility of all company management. Violations of this policy should be reported to Human Resources.

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Personal Property The Company will attempt to assist its employees in safeguarding their personal property while at work. However, the Company does not assume responsibility for the loss or theft of personal belongings, and employees are advised not to carry unnecessary amounts of cash or other valuables with them when they come to work.

Articles of personal property found on the Middleton Office’s premises should be returned to the owner, if known, or turned in to the 3rd floor receptionist. Inquiries regarding lost property should be directed to the receptionist.

Articles of personal property found in the Company’s other offices should be returned to the owner, if known, or turned in to the person(s) designated at those offices. Inquiries regarding lost property should also be directed to that designated person(s).

Right to Inspect Personal Property Normal business operations often require other employees to have access to your work area, desk, files, voice mail, computer or mobile communication device(s). There is NO guarantee of privacy. Even if you have a personal access code or password for your voice mail or e-mail, others in the company may have access and may have business needs to retrieve that information and may record or monitor phone calls or the computer system and may trace, intercept, retrieve, copy, review or download and disseminate any communication or files you create or maintain in these systems. All mail is opened by the mailroom and even “personal” mail may be opened in the rush of routine operations. All property and processes here are for business purposes, and management has the right to access and inspect all property and processes. Do not keep anything in your work area, or your phone or computer system, or have mail sent to you which violates company policy or which you do not want other employees to see.

There may be times when security concerns give reason for inspection of the packages, purses, backpacks or other personal parcels that employees have on company premises or company owned/furnished lockers, vehicles, desks or other equipment. Do not bring anything onto the premises that violates company policies or that you would not want seen in the event of such an inspection.

Company Property. All work product, whether on paper, mobile communication device(s) computer or e-mail, is the property of the employer and constitutes business records of the company. These records may be audited by government agencies or subpoenaed into court and should reflect the professionalism of the Company and the employee.

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Use of Office Equipment Office equipment, such as the desk, file cabinets, computer, mobile communication device(s) and telephone, has been provided for business purposes only. Employee use of such equipment for personal reasons should be limited so usage does not interfere with job performance. Management retains the right and sole discretion to access and search an employeeâ&#x20AC;&#x2122;s work area, equipment, files, e-mail, and all other office equipment at any time.

Employees should have no expectation of privacy in their use of Company provided equipment and services.

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Attendance and Punctuality It is Company policy to require good attendance and punctuality on the part of its employees.

Unauthorized or excessive absence or tardiness will not be tolerated.

Employees should, if possible, notify their manager no later than 30 minutes after normal starting time if they are unable to report to work. Such notification should include the reason for absence or lateness and an indication of when the employee can be expected to report for work. If the manager is unavailable, employees should notify an alternate contact as specified by the manager, or if that contact is also unavailable, contact Human Resources. Failure to notify the Company of any absence or delay will normally result in loss of pay (for hourly employees) during the absence or delay, and may be grounds for disciplinary action, up to and including, termination.

Employees who are absent from work for three (3) consecutive business days without giving proper notice to the Company will be considered as having voluntarily resigned.

Employees must obtain permission from their manager if they find it necessary to leave work during working hours. Employees unable to report to work, or those who are going to be late, need to notify their manager no later than 30 minutes after their normal starting time. Employees who do not come to work and do not call in for three (3) consecutive work days will be considered as having voluntarily resigned their employment, or job abandonment.

Regular attendance is a requirement of all employees at the Company. Employees who have excessive absences or tardiness may be disciplined, up to and including, termination. Managers should be aware, however, that employees may have certain rights under the Family and Medical Leave Act (FMLA), Americans with Disabilities Act (ADA), and/or may be entitled to changed work schedules as a reasonable accommodation. These situations may require flexibility and discipline for attendance problems may result in legal problems. Consult with Human Resources prior to proceeding with a disciplinary action.

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Bereavement Leave The Company does not want to prevent attendance at a funeral for close relatives or friends.

For situations not addressed in the Bereavement Leave policy, employees are encouraged to use available time off.

All regular full-time employees are eligible for paid time off to prepare for and attend a funeral according to the schedule below. Part-time employees working at least 25 or more hours per week are eligible for pro-rated bereavement leave.

5 Days Husband, Wife, Domestic Partner, Mother, Father, Stepmother, Stepfather, Legal Guardian, Son, Daughter, Stepson, Stepdaughter, Sibling, Step-Sibling.

3 Days Mother-in-Law, Father-in-Law, Stepmother-in-Law, Stepfather-in-Law, Son-in-Law, Daughter-inLaw, Brother-in-Law, Sister-in-Law, Grandmother, Grandfather, Grandmother-in-Law, Grandfather-in-Law, Step-Grandmother, Step-Grandfather, Great Grandmother, Great Grandfather, Grandchild, Step-Grandchild.

For family members listed under the 5-day leave policy, the Company will send a plant/flowers or a memorial on behalf of employees. Managers are asked to be accommodating whenever possible for an employee’s attendance at relatives’/friends’ funerals not listed in this policy.

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Family and Medical Leave Policy (Middleton Office Only) The Company will comply with all applicable state and federal laws concerning family and medical leave (FMLA). This policy describes the state and federal FMLA laws and addresses certain differences between the two laws. When both laws apply, the leaves under state and federal law will run concurrently and the provisions more beneficial to the employee will apply.

Medical leaves that qualify under the FMLA will also run concurrently with leaves under worker’s compensation, short term disability and other laws, as applicable and as allowed by law.

To qualify for FMLA, employees must be employed with the Company for a total of at least 12 months and have actually worked at least 1,250 hours in the preceding 12-month period. To qualify for Wisconsin family and medical leave (WFMLA), employees must have been employed at least 52 consecutive weeks and have worked or been paid at least 1,000 hours the preceding 52 weeks. In order to be eligible for FMLA, employees must also be employed at a worksite where 50 or more employees are employed by the employer within 75 miles of that worksite.

Employees on FMLA leave with the Company may not engage in any other employment that is inconsistent with the reason for the employee’s FMLA leave.

The Company will not use the taking of FMLA leave in compliance with the law as a basis for any adverse employment decision. Employees should direct any questions regarding FMLA leave to Human Resources.

General Leave Rights Federal FMLA. Under the federal FMLA, eligible employees are allowed up to 12 work weeks of unpaid leave per 12-month period for the following reasons (see also Military family leave below):    

The employee’s own serious health condition that makes the employee unable to perform the functions of his or her position.

To care for the employee’s spouse, child or parent with a serious health condition.

For the birth of the employee’s child, or placement of a child for adoption or foster care with the employee.

For incapacity due to pregnancy, prenatal medical care or child birth.

Wisconsin FMLA. Wisconsin FMLA permits eligible employees to take unpaid leave for the following reasons:   

Two (2) weeks for the employee’s own serious health condition.

Two (2) weeks to care for the employee’s spouse, domestic partner, child, parent or parent-in-law with a serious health condition.

Six (6) weeks to care for the employee’s child after birth or adoption.

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The Company will calculate the federal FMLA 12-month period as a rolling 12-month period measured backward from the date an employee uses any leave under this policy.

For Example: 7/1/2013 – Start date of employee’s requested leave (3 weeks total) 7/1/2012-6/30/2013 – Company reviews previous 12 months for leave taken 11/1/2012 - Employee used 8 weeks FMLA leave starting September 1, 2012 7/1/2013 – Employee has 4 weeks available for newly requested leave Under federal FMLA, leave for birth adoption or foster care placement must be concluded within 12 months of the birth or placement for adoption or foster care. If both parents work for the Company, the employees will share one 12 week leave for the birth or placement of a child.

The Wisconsin FMLA entitlement will run on a calendar-year basis. Any leave for the birth or adoption of a child taken under WFMLA must start within 16 weeks of the birth or adoption of the child.

Military Family Leave. The federal FMLA provides for military family leave. Several provisions of this FMLA policy (including employee notice provisions and certification requirements) apply to military family leave as well.

There are two types of military family leave.

Qualifying Exigency Leave. Eligible employees with a spouse, son, daughter or parent on covered active duty or called to covered active duty status may use their 12-week FMLA entitlement to address certain qualifying exigencies. Qualifying exigencies may include attending certain military events, arranging for alternative childcare or parental care, addressing certain financial and legal arrangements, attending certain counseling sessions, and attending post-deployment reintegration briefings. The 12 weeks of leave afforded for a qualifying exigency is not in addition to the general 12 weeks afforded under the federal FMLA. An employee is entitled to no more than 12 total weeks of leave for any combination of personal, family or qualifying exigency military FMLA. Servicemember Care Leave. Eligible employees may also take up to 26 weeks of leave during a single 12-month period to care for an ill or injured service member who is the employee’s spouse, parent, child, or “next of kin” who is a covered servicemember. A covered servicemember is a current member of the Armed Forces (including National Guard or Reserves) or a covered veteran who has a serious injury or illness incurred in the line of duty on active duty in the Armed Forces or that existed before the beginning of the member’s or veteran’s active duty and was aggravated by service in the line of duty on active duty in the Armed Forces that may render the servicemember medically unfit to perform his or her duties and for which the servicemember is undergoing medical treatment, recuperation, therapy, is on outpatient status, or is otherwise on the temporary disability retired list. The 26 weeks of leave afforded for servicemember care is not in addition to the general 12 weeks afforded under the federal FMLA. Married Employees. Married employees who both work for the company are limited to no more than an aggregate of 26 weeks of leave between them for military family leave.

Definitions of “Child” and “Parent”

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Under both state and federal FMLA laws, “child” means a biological, adopted or foster child, step child, legal ward, or a child for whom the employee provides day-to-day care. Also, the child must either be under age 18, or be 18 years or older and unable to care for him/herself because of a mental or physical disability or serious health condition. Under both state and federal laws, “parent” means biological parent, foster parent, adoptive parent, step parent or an individual who was responsible for the day-to-day care of the employee when the employee was a child. Under federal FMLA law, “parent” does not include parents of spouses or domestic partners. Under state FMLA law, “parent” includes parents of spouses or domestic partners.

Serious Health Condition A serious health condition is an injury, illness, impairment or physical or mental condition that involves: 1) Inpatient care in a medical care facility; or 2) Continuing treatment by a health care provider for a condition that either prevents the employee from performing the functions of the employee’s job or prevents a qualified family member from participating in school or other daily activities.

Continuing treatment by a health care provider includes: 1) A period of incapacity of more than three (3) consecutive full calendar days combined with at least two (2) visits to a health care provider or one (1) visit and a regimen of continuing treatment under the supervision of a health care provider (time limits apply to health care provider visits); 2) Any period of incapacity due to pregnancy or prenatal care; 3) Any period of incapacity or treatment for such incapacity due to a chronic serious health condition; 4) A period of incapacity which is permanent or long-term due to a condition for which treatment may not be effective; or 5) Any period of absence to receive multiple treatments by a health care provider or for a condition that would likely result in a period of incapacity of more than three (3) consecutive calendar days in the absence of medical intervention or treatment. Under Wisconsin FMLA, the requirement for more than three (3) consecutive calendar days of incapacity does not apply.

Notification and Certification Whenever possible, employees must give at least 30 days’ written notice of the need for FMLA leave. When 30 days’ notice is not possible, employees are expected to give as much written notice as is practical. All requests for leave must be made on a Request for Leave form and forwarded to Human Resources. The Company’s normal call-in procedures must also be followed for all FMLA absences.

Employees must give sufficient information to determine if the leave may qualify for FMLA protection and the anticipated timing and duration of the leave. Sufficient information may include that the employee is unable to perform job functions, a family member is unable to perform daily activities, the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting the need for military family leave. Employees must also inform Human Resources if the requested leave is for a reason for which FMLA leave was previously taken or certified.

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The Company may require an employee who is requesting FMLA leave to provide medical certification for the leave. Employees will have 15 days in which to provide the certification, except in extenuating circumstances. If an employee fails to provide adequate certification in a timely manner, the employee’s leave request or continuation of leave may be delayed or denied altogether. The Company may require a second medical opinion at its expense regarding a serious health condition from a health care provider of its choice. If the first two opinions differ, employee may obtain a third opinion at the Company's expense from a mutually agreed upon health care provider. The third opinion shall be binding on the parties. Recertification and periodic reports regarding the employee’s status and intent to return to work may also be required as allowed by law.

The Company will inform employees who have requested leave whether they are eligible for leave, specify any additional information needed, and inform the employee of his/her rights and responsibilities. If the employee is not eligible for leave, the Company will provide a reason for the ineligibility. The Company will also inform eligible employees whether requested leave will or will not be designated as FMLA leave and the amount of leave that will be counted against the employee’s leave entitlement.

The Company may also designate any qualifying absences as FMLA usage. The employee will be notified of this designation.

Intermittent Leave An employee may take any leave covered by WFMLA as intermittent leave, provided the employee provides notice as required by the law. The last increment of intermittent leave for the birth or adoption of a child under WFMLA must begin within 16 weeks after the birth or placement for adoption of the child.

For leaves covered only by FMLA, an employee may take “intermittent” or “reduced schedule” leave, if medically necessary, for the employee’s own serious health condition, to care for a spouse, parent, son, or daughter with a serious health condition, and to care for a covered servicemember with a serious injury or illness. Employees must make reasonable efforts to schedule leave for planned medical treatment so as to not unduly disrupt the Company’s operations. For medically necessary intermittent or reduced schedule leave that is foreseeable based on planned medical treatment for the employee, a family member, or a covered servicemember, the Company may temporarily transfer an employee taking such leave to a position with equivalent pay and benefits if the new position better accommodates the leave.

Military leave due to qualifying exigencies may also be taken on an intermittent basis.

Employees may also take intermittent FMLA leave for the birth, adoption or foster placement of a child during the federal-only portion of their FMLA leave.

Substituting Earned Time Off During the portion of an FMLA leave covered by Wisconsin law, employees may elect to, or not to, substitute accrued paid leave for unpaid FMLA leave. During the federal-only portion of an FMLA leave, an employee may substitute any paid leave the employee would be eligible to take in compliance with the Company’s normal paid leave policies. During the federal-only portion of an FMLA leave, the Company may require employees to substitute accrued paid leave.

Benefits During Leave An employee’s coverage under the Company’s group health plans (i.e., group health and dental coverage) will be maintained during the period of an FMLA leave as required by the Wisconsin and federal FMLA laws and in accordance with the applicable terms of the plans.

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Employees who normally pay a portion of the premium for insurance coverage must continue to do so during the period of FMLA leave. If paid leave is substituted for unpaid leave, the employee’s portion of the premium will be deducted from the employee’s paycheck. For those employees on unpaid leave, payment arrangements must be made prior to the start of the leave, or as soon as practicable. A 30-day grace period will apply to premium payments, however, if payment has not been made timely, the employee’s group health/dental insurance may be terminated.

If the Company maintains the employee’s insurance during an FMLA leave, and the employee does not return from FMLA leave, under certain circumstances the Company will have the right to recover the total cost of the insurance premiums paid during the employee’s leave, as allowed by law.

Use of FMLA cannot result in the loss of any employment benefit that accrued prior to the start of the employee’s leave. Other benefit accruals may be suspended during the period of the leave and will resume upon return to active employment. Check with Human Resources regarding other benefit continuation provisions.

Returning to Work at the End of Leave Employees who return to work from FMLA leave within the timeframes protected by the FMLA laws will be returned to their former position or, if that position is no longer available, an equivalent position with equivalent pay, benefits and other employment terms. If an employee wants to return to work before his/her leave is to end, and work is available, the employee must notify Human Resources at least two (2) days prior to the desired return date. If the employee took FMLA leave for his/her own serious health condition, a fitness for duty certification will be required before the employee may return to work. In such cases, an employee’s return will be delayed until such a certification is received.

Failure to Meet Policy Requirements If the employee fails to meet the requirements of this policy for family or medical leave, the request for leave will be denied until the requirements are met.

Failure to Return to Work at End of FMLA-Protected Leave If the employee does not return to work at the end of his/her FMLA protected leave, the employee’s rights under the federal and state FMLA laws, including the right to reinstatement, will no longer be in effect. In such a case, the employee’s employment may be terminated. If the employee’s inability to return to work is due to the continuation, recurrence or onset of the employee’s own serious health condition, or of the serious health condition of the employee’s spouse, child or parent, the Company will consider a request for a further unpaid leave.

However, the employee must submit a written request for consideration of a further leave as soon as the employee realizes that he/she will not be able to return at the expiration of the FMLA-protected leave period. The Company will consider each such request on a case by case basis. There is no guarantee that a further leave will be granted.

Employer’s Duties and Enforcement It is unlawful for employers to interfere with, restrain, or deny the exercise of any right provided under FMLA or to discharge or discriminate against any person for opposing any practice made unlawful by FMLA or for involvement in any proceeding under or relating to FMLA (see FMLA posters). The FMLA does not affect any federal or state law prohibiting discrimination, or supersede any state or local law or collective bargaining agreement which provides greater family or medical leave rights.

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If managers identify an employee as needing to take three (3) or more working days off for any of the above reasons, they need to direct the employee to Human Resources for FMLA forms immediately.

If managers are unsure if an employeeâ&#x20AC;&#x2122;s request for time off should constitute as FMLA, they should contact Human Resources to verify. Do NOT discuss options with the employee.

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Inclement Weather If the Company is open for business, all employees are expected to report to work during inclement weather conditions. When hourly employees are unable to make it to work due to weather conditions, they will be granted an authorized, unpaid absence. This absence may be offset with vacation or personal time, if available.

If the Company declares an emergency closing in the Middleton office, (via the CEO) before opening for business, the Middleton Office’s “Emergency Hotline” – (608) 829-7007 – will be updated and utilized to notify employees and employees will be paid for regularly scheduled hours. The Glastonbury office also uses an “Emergency Hotline” – 1-800-475-4450, x7010. In other offices, a calling tree will be utilized.

If the emergency is declared after employees have arrived for the day, hourly employees will be paid for regularly scheduled hours missed due to the Company’s emergency closing. Those who report to work or remain at work after the Company closes will be paid for the hours they work and not be eligible for extra compensation. Those already on approved time off will not receive extra pay or additional time off.

For example, if the Company closes the office at 2:00 p.m. due to inclement weather, employees that work up to 2:00 p.m. will be paid for their regularly scheduled/standard hours.

However, if an employee leaves at 1:00 p.m. (1 hour prior to the office closing), the employee may use either vacation time or unpaid time for the remainder of his or her regularly scheduled/standard hours.

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Lunch Periods A 30-minute unpaid lunch period must be taken by all hourly employees if an employee works six (6) or more hours in a day. Lunch periods are important refreshers that help keep us productive.

Note: Exempt and part-time employees are not required, but encouraged, to take a lunch break.

It is the managerâ&#x20AC;&#x2122;s responsibility to ensure all hourly employees under their direct management take a 30-minute unpaid lunch period if an employee works six (6) or more hours in a day.

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Sick Leave (Non-Exempt Employees) The Company expects reasonable and predictable attendance from all employees. Reasonable attendance is an average of six (6) days of sick leave per year (excluding FMLA or other special accommodations); however, this is left to management discretion.

To provide for times when a non-exempt (hourly) employee, or the employee’s dependent** has an illness2, or has a medical appointment, the Company offers sick time coverage. This sick time benefit provides a maximum of 20 paid workdays at 100% of regular base salary for a specific condition in any calendar year (January 1 to December 31). Part-time employees working at least 25 or more hours per week are provided pro-rated sick leave based on hours worked. The Company’s short-term disability policy has a 29 consecutive calendar day eligibility period. If a given condition continues past that period, short-term disability coverage may begin if approved by the insurance carrier. Exempt (salaried) employees are not covered by this policy (please see “Open PTO” policy).

1. An employee shall notify their department manager no later than 30 minutes after normal starting time if they are unable to report to work.

2. If an employee is absent for three or more consecutive business days, a doctor’s excuse is required upon return. A doctor’s release to return to work may also be required.

3. Sick time can be used for the employee and/or a dependent. There is a maximum limit of 20 paid sick days in a calendar year (pro-rated for part-time employees).

4. If an employee is already scheduled for vacation/personal time off but becomes ill during this time, it should still be recorded as vacation/personal time taken.

5. Abuse of the sick leave privilege is cause for immediate dismissal.

NOTE: Caring for an ill family member may fall under FMLA. If you have any questions, please contact Human Resources.

Caution About Genetic Information/Family Medical History You may be required or requested to provide doctor excuses for absence, fitness for duty, short term disability, leave verification, Workers Compensation reports or other information relevant to work, safety, insurance or leaves of absence. There is certain information the Company does not need and doesn't wish to have. The Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits employers and other entities covered by GINA Title II from requesting or requiring genetic information of an individual or family member of the individual, except as specifically allowed by this law. To comply with this law, we are asking that you not provide any genetic information, details regarding a medical condition or information about a diagnosis, 

“Illness” for purposes of this policy is broadly defined and may include illness, injury or medical condition, or medical appointments, or to address the effects of domestic or family violence, or sexual assault. 

“Dependent” for purposes of this policy means an employee’s: spouse; domestic partner; child (minor or adult biological, adopted, or foster child, stepchild, legal ward, and child of an employee standing in loco parentis); parent or spouse/domestic partner’s parent (including biological, adoptive or foster parent, stepparent or legal guardian or person who stood in loco parentis when employee or spouse/domestic partner was a minor); grandparent; grandchild or sibling.

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when responding to a request for medical information, fitness for duty, sick leave, FMLA verification, etc. "Genetic information" as defined by GINA, includes an individual's family medical history, the results of an individual's or family member's genetic tests, the fact that an individual or an individual's family member sought or received genetic services, and genetic information of a fetus carried by an individual or an individual's family member or an embryo lawfully held by an individual or family member receiving assistive reproductive services. Please contact Human Resources regarding any questions about this policy or about any information you may be requested to provide.

If an employee has been sick for three (3) consecutive days, managers must request the employee present a doctorâ&#x20AC;&#x2122;s excuse, and in some cases a return to work statement, and submit it/them to Human Resources. If managers are unavailable or unable to be reached, managers need to make sure their employees know who to contact in their absence. Managers must also consult with Human Resources prior to taking any disciplinary action necessary for abuse of the sick leave privilege.

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Short-Term Absences The Company permits employees to be absent from work on a short-term basis under certain circumstances. Eligible employees may receive compensation for authorized short-term absences.

JURY DUTY Time off for jury duty or court service will be granted as needed (with proof of summons and service). Paid time for jury duty will not exceed 10 days for any 12 consecutive months. Please contact Human Resources as soon as you receive notification of jury duty. Jury duty pay may be kept by the employee.

Managers should direct employees, with a copy of their proof of summons and service, to Human Resources.

MILITARY LEAVE If an exempt or non-exempt employee receives orders to report for active duty in the armed forces, he or she will be placed on a military leave without pay and would be unable to use any Company time off plans. Reemployment rights are outlined by law in the Uniformed Services Employment and Reemployment Act. See Human Resources for details.

Regular employees who are in the active reserves who must attend annual training may take two (2) weeks (10 workdays) paid military leave once per year. This leave is in addition to any other paid leave the employee may have accrued.

Written requests for such leave, along with a copy of the orders received, must be submitted prior to the leave period.

Managers should direct employees who require this leave to Human Resources, with a copy of their orders.

LEAVE WITHOUT PAY Leave without pay may be granted for hourly/non-exempt employees only if previously approved by a manager and only if the employeeâ&#x20AC;&#x2122;s personal and vacation time balances are zero (0).

Voting â&#x20AC;&#x201C; Community Service All employees may leave work during the work day for up to three (3) hours in order to vote while the polls are open. Employees should notify their manager before Election Day if they are going to be absent to vote during the workday to allow for coverage.

Non-exempt employees are not paid for time taken to vote. However, an employee may substitute vacation or personal time if absence is pre-approved by the manager.

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Corporate Business Planning For Pandemic Influenza Policy It is the policy of the Company to promote a safe and healthy environment for its employees. To this end, this policy has been created in an effort to minimize exposure and absenteeism in the event that a pandemic influenza is a threat to our employees, their families and business.

The Company remains open in all but the most extreme circumstances. Unless an emergency closing is announced, all employees are expected to report to work. However, all employees are urged to use their own discretion in deciding whether they should come to work.

Personal Hygiene & Good Health Practices to Maximize Health To maximize health, employees should:     

Cover a cough by coughing into their elbow or into a tissue; Wash hands frequently, regularly and use alcohol hand gel; Avoid touching eyes, nose, and mouth; Eat a healthy diet; and/or Follow their physician’s instructions.

Pandemic Flu Team The Company’s Pandemic Flu Team, consisting of the Head of Human Resources & Administration and CIO and appropriate representatives from their departments, are responsible for monitoring emergency conditions for the purposes of communicating and implementing emergency plans to maintain the safety and security of the Company’s premises during emergency conditions.

Designation of Emergency Closing Only by authorization of the CEO will the Company cease operations due to emergency circumstances. If an emergency evacuation is ordered, all employees should calmly and quickly follow their established evacuation procedures and routes. All other locations should refer to the Disaster Recovery Plan.

Business Continuity If an employee, or an employee’s family member, has not been infected with influenza, the employee is expected to report to work.

If emergency conditions prevent an employee from reporting to work or reporting to work on time, the employee is responsible for notifying their manager, if feasible, no later than 30 minutes after their normal starting time. If possible, such notification should be made by telephone conversation directly with their manager. If direct contact is not possible, leaving a detailed voice mail message or message with a member of Human Resources is the preferred alternative. If it is not possible to reach their manager or Human Resources, leaving a message with another employee is acceptable as a last resort. Employees should leave a phone number where they can be reached.

If an employee reports to work and it appears that the employee has the common flu symptoms (i.e. fever, sneezing, runny nose, coughing, sore throat, headache, muscle aches, feeling tired and weak), the employee will be sent to their medical facility for evaluation by trained medical professionals. The employee will be required to bring to work a statement from their doctor documenting it is safe for the employee to return to work.

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If the pandemic influenza is severe enough, the Company may decide to reduce employees’ face-to-face exposure by encouraging employees to telecommute. Under certain circumstances, telecommuting may be mandatory. Employees will be notified of such decisions.

Pay Practices During Pandemic Influenza Crisis • Telecommuting employees will be paid regular hours.

• The Company expects that some healthy employees will refuse to work for fear of catching the virus. If they choose to not work, and not telecommute, they can use time off available to them with their manager’s approval.

• If the Company sends employees home for safety reasons, they will be paid regular hours.

Leave Practices During Pandemic Influenza Crisis Please reference the Family and Medical Leave, Sick Leave and Open PTO policies in this handbook.

Disability For regular employees with influenza, employees may qualify for short-term disability during part of their absence. Please notify Human Resources immediately.

Emergency Medical Procedures If an employee is in need of medical attention, please notify their immediate manager or Human Resources and request assistance. If you believe the situation merits trained medical personnel, please contact 911 immediately and inform 911 of the individual’s symptoms, location and any other information 911 requests, and call the employee’s manager and Human Resources to alert them to the call.

Employee Assistance Program The Company offers an Employee Assistant Program (EAP). The EAP provides 24-hour confidential access to assistance and counseling for personal and workplace issues. The EAP phone number is (800) 634-6433. Please see the Head of Human Resources & Administration for additional information regarding the EAP. Caution About Genetic Information/Family Medical History You may be required or requested to provide doctor excuses for absence, fitness for duty, short term disability, leave verification, Workers Compensation reports or other information relevant to work, safety, insurance or leaves of absence. There is certain information the Company does not need and does not wish to have. The Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits employers and other entities covered by GINA Title II from requesting or requiring genetic information of an individual or family member of the individual, except as specifically allowed by this law. To comply with this law, we are asking that you not provide any genetic information, details regarding a medical condition or information about a diagnosis, when responding to a request for medical information, fitness for duty, sick leave, FMLA verification, etc. "Genetic information" as defined by GINA, includes an individual's family medical history, the results of an individual's or family member's genetic tests, the fact that an individual or an individual's family member sought or received genetic services, and genetic information of a fetus carried by an individual or an individual's family member or an embryo lawfully held by an individual or family member receiving assistive reproductive

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services. Please contact Human Resources regarding any questions about this policy or about any information you may be requested to provide.

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Behavior of Employees Certain rules and regulations regarding employee behavior are necessary for the efficient operation of the Company and for the benefit of all employees. Employees are expected to conduct themselves in a professional manner at all times. Behavior that interferes with operations, discredits the Company, or offends customers or fellow employees will not be tolerated.

Employees involved in the following behavior examples will be subject to disciplinary action, up to and including, termination:       

Reporting to work under the influence of alcohol, illegal drugs and/or narcotics.

Using, selling, dispensing, or possessing alcohol, illegal drugs and/or narcotics on Company premises.

Possessing firearms or other weapons on Company property.

Stealing, destroying, defacing or misusing Company property or another employee’s property.

Threatening, disrespecting or intimidating any fellow employee, sales representative or customer.

Any dishonest behavior.

Any violent or aggressive behavior that could potentially cause harm to others.

The above examples are illustrative of the type of behavior that will not be permitted, but are not intended to be all-inclusive. Also see Alleghany’s Code of Business Conduct and Ethics.

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Confidentiality and Privacy of Business Information During the course of their work, employees may have access to nonpublic company records and personal information of others. The unauthorized disclosure of this information may result in civil penalties including forfeitures and awards of damages and costs, and criminal penalties including fines and imprisonment.

The Company has taken steps to limit access to nonpublic, personal information of others that is obtained in the normal course of business. Employees with access to this information must protect it as required by law and must prevent the unauthorized disclosure of this information.

Company Confidential Information and Trade Secrets. All of the following information (whether written, machine-reproducible, oral or in other form or format) that is held by the Company as proprietary and is not generally known in the business community. This includes the Company's financial, sales, marketing and development information; organizational and business plans, systems, models and forms; client lists; client-specific data; and employee personallyidentifiable information.

Third-Party Confidential Information. Third parties, including but not limited to, the Company's clients, prospects and suppliers provide their confidential information and trade secrets to the Company. Such information may include, but is not limited to client identity, personallyidentifiable information, financial information, business information, dates of birth, social security numbers, third-party's employee names, driver's license numbers, income information, taxes, bank information, legal or insurance claims, information, medical information, protected health information under HIPAA, family information, bonding information and financial statements of clients or prospects.

Employees will maintain the confidentiality of all of the Company and Third-Party Confidential Information and not duplicate, transfer, disclose or use any confidential information except as required in carrying out the employee's job duties. Employees will not access any confidential information except for business purposes, and will not use any confidential information for personal or any non-business purpose. This restriction prohibits disclosing confidential information to other Company employees unless they have a business reason to have access to and utilize such information.

No employee will discuss or give information on the Company or customers to anyone who is not an employee of the Company without express authorization. No one will discuss such information outside Company business premises or in any reception area or other public area without express authorization. When working with confidential information, employees should assure that it is not seen by non-employees or by other employees who do not have a valid reason to have access. This includes not leaving files open when you are away from the work station and others are in the area and maintain strict computer security. If in doubt as to whether information is confidential, assume that it is, and then ask your manager for clarification.

Third-Party Confidential Information, including personally-identifiable information of others that exists in hard-copy form should be destroyed after the business need for maintaining such information has passed. Secure shredder bins are centrally located in all work locations for this purpose. Contact your manager regarding the location of the shredder bin(s) at your work location.

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All records and information in any form are the property of the Company. It can also be subject to inspection by government agencies, auditors or in legal proceedings. Therefore, all records should be maintained properly and in accordance with the various legal and regulatory requirements. No record or information will be destroyed without proper process and authorization.

Violation of this policy may result in discipline, up to and including termination and in the Company or its clients taking legal action against the violator. All the Company records, whether in paper, electronic or other form, must be returned to the company upon termination of employment, and no copies may be retained in any format. Even after the end of employment, federal and state trade secret acts and privacy laws prohibit disclosure or use of the Company regarding the Company and third parties, and can result in legal action against a person who commits unauthorized use or disclosure.

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Customer Service/Response Policy The success of the Company depends upon both the quality of service and timeliness to our customers (internal and external) and their impression of the Company. This impression is formed by the employees who serve our customers, which means that every employee regardless of position is the Company’s ambassador. The more goodwill employees promote, the more customers will respect and appreciate the Company’s service and products.

Employees’ timely responsiveness and communications are a reflection of the Company. To meet the service standards that are expected and appreciated, it is necessary to respond to all customers within 24 hours of inquiry. Just as each employee, as customers, expects a timely response, the Company’s customers expect and deserve the same.

The Company understands there may be times that employees are out of the office and are unable to provide a 24 hour response time. It is at these times when voice mail and e-mail needs to reflect that the employee is not available to assist the customer. In these situations, the employee should provide the customer with the option of speaking with another individual. If the employee is out of the office due to unforeseen circumstances, such as being ill, the employee should change their voice mail greeting from home to reflect the absence. General guidelines and examples follow below.

The Company appreciates everyone’s efforts in providing customers with outstanding service.

Responding to them in an effective and efficient manner ensures that the Company will be a “Great Service Organization.”

It is the manager’s responsibility to ensure their employees’ messages are current and reflect correct information.

GENERAL GUIDELINES AND EXAMPLES Voice Mail: Entering and Changing your Personal Greeting Internally: a. Press the Messages button (envelope icon) b. Enter password and pound (#) sign when prompted c. Select Option 4: Set-up options d. Select Option 1: Greetings and follow the voice prompts Externally: a. Dial number/extension b. Press star (*) key when the recorded message begins c. When prompted, enter ID number (extension) followed by pound (#) d. When prompted, enter password followed by pound (#) e. Select Option 4: Set-up options f. Select Option 1: Greetings and follow the voice prompts *Voice mail will announce current greeting as the Standard or Alternate greeting and the greeting will play. To bypass the greeting, press pound (#) and follow the prompts to record greeting(s).

The Out of Office message should be used ONLY when an employee is out for personal reasons (such as vacation) when the employee is absolutely unable to respond within a few

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hours. This should not be used when traveling on business or when the employee is away from their desk. If employees would like to include their cell phone number in the Out of Office message, please feel free to do so.

Sample Voicemail Messages IN OFFICE Hello, this is [FULL NAME] with CapSpecialty. I'm sorry I'm unable to take your call. Please press pound to leave a message, or you may reach me on my cell phone at [10 DIGIT CELL PHONE, SPEAK SLOWLY]. Thank you.

OUT OF OFFICE Hello, this is [FULL NAME] with CapSpecialty. I am currently out of the office with limited access to voicemail until [DATE]. You may leave a message by pressing pound, or if you require immediate assistance press zero and ask to speak to [FULL NAME OF ALTERNATE CONTACT]. Thank you.

Call Forwarding When stepping away from the desk, the Company asks employees to forward the phone into voice mail. By forwarding the phone, the caller will be transferred promptly into voicemail and those working near will not be disturbed by multiple rings.

To Send All Incoming Calls to Voice Mail: a. Press “CFwdALL” Soft Key b. Press Messages (envelope) button To Deactivate Call Forward: a. Press “CFwdALL” Soft Key once Automatic E-Mail Response (Out of Office) As part of the communication strategy, the Company wants to be sure to have a consistent message. The Company understands that the exact messaging may vary slightly depending on the employee’s role within the company and the reason for being out of the office, but the below options can serve as a guide to help craft a professional and useful Out of Office reply.

As a company, employees should to be responsive and perceived as “the best” so it is vital to be accessible even when out of the office, especially for those employees with distinctly external-facing roles. Regardless of role, employees should consult with their manager or department head to understand the expectations and to establish appropriate and consistent protocol when out of the office.

To activate an “Out of Office” message in Outlook:  Click on the “File” tab  Select the “Automatic Replies (Out of Office)” button  Click the option button next to “Send Automatic Replies”  Choose a date range for the message, or leave blank if indefinite time away  Type message into the Auto reply box for BOTH tabs labeled “Inside My Organization” and “Outside My Organization”  Make sure the check box next to “Auto-reply to people outside my organization” is filled with a checkmark

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 

Click OK It is recommended that you send yourself a “test” message to ensure the “Out of Office Assistant” is activated and the correct message is sent

Out of Office Email Reply Tips Here are a few things to keep in mind when creating an Out of Office message:  It’s important that people with similar roles in the same department have a consistent message. For instance, the Regional Underwriting Teams should include their team hotline information as well as the contact information for the rest of their team members. Please consult the head of the department before messages are finalized for ongoing use to ensure a consistent message.  Please refrain from using an Out of Office reply when leaving for a short period of time during the day (such as a long meeting or a lunch break). Also a “daily” Out of Office message at the end of the employee’s day, when the employee is returning the next day, is not necessary.  When returning to the office, TURN OFF the Out of Office reply. Depending on the version of Outlook, employees may be able to select an end date so the reply automatically turns off.  Please refrain from using the CapSpecialty logo in automatic reply signatures as it does not translate properly.

Sample Out of Office Email Messages PTO/Vacation/Personal Day WITH Access to Email (will check email periodically) Hello, I will be out of the office from [START DATE] through [END DATE] but will be checking my email periodically. If you need immediate assistance please contact [NAME] at [EMAIL] or [XXX-XXX-XXXX], otherwise I will respond to your message as soon as possible.

Thank you, [YOUR NAME]

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PTO/Vacation/Personal Day WITHOUT Access to Email Hello, I will be out of the office from [START DATE] through [END DATE] without access to email. If you need immediate assistance please contact [NAME] at [EMAIL] or [XXXXXX-XXXX], otherwise I will respond to your message when I return to the office on [DATE YOUâ&#x20AC;&#x2122;LL BE BACK IN THE OFFICE].

Thank you, [YOUR NAME] Business Travel WITHOUT Access to Email Hello, I am currently out of the office traveling for business with [limited or no] access to email. If you need immediate assistance please contact [NAME] at [EMAIL] or [XXXXXX-XXXX], otherwise I will respond to your message as soon as possible.

Thank you, [YOUR NAME] *Note, it is not necessary to post an Out of Office reply when on Business Travel with access to emails.

Sick Day WITHOUT Access to Email Hello, I am currently out of the office without access to email. If you need immediate assistance please contact [NAME] at [EMAIL] or [XXX-XXX-XXXX], otherwise I will respond to your message as soon as possible.

Thank you, [YOUR NAME] *Note, it is not necessary to post an Out of Office reply if you are accessing your emails while out on a sick day.

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Dress Policy The Company has a “Business Appropriate” Dress Code Policy for all employees. Business Appropriate means that employees wear attire that is appropriate to the nature of their work and the professional image they want to project. There may be special days when sweatshirts and athletic shoes are acceptable. Employees will be notified in advance about these special occasions.

An employee’s dress and grooming should be that which is normally acceptable in business establishments or appropriate to the work situation. Employees often have contact with the public and therefore represent the Company by their appearance as well as their actions. If you are meeting with your customers, vendors, etc., you should dress customer specific. Good judgment by each employee is necessary since fashions change and all issues cannot reasonably be covered in a dress policy. Each manager has the authority and responsibility to assure that the dress policy is followed.

EXAMPLES OF INAPPROPRIATE APPAREL  Athletic shoes Clothing that is particularly revealing, including midriff-bearing and off-the-shoulder clothing  Flip-flops  Halter tops  Leggings  Short skirts/dresses  Shorts  Spaghetti strap dresses  Tank/tube tops  Worn/faded clothing

These guidelines apply to all clothing choices: 1. If you are not sure if something is acceptable…CHOOSE SOMETHING ELSE. 2. Each manager has the authority and responsibility to assure that the dress policy is followed. If an employee is inappropriately dressed, the manager will explain to the employee that his/her dress is inappropriate and should not be worn in the future. In extreme situations, the employee will be sent home to change. Hourly employees that must take time away from work to change into appropriate attire will record the time as unpaid.

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Drug and Alcohol Policy The Company and its employees have a special responsibility to co-workers and the community. The Company is committed to providing employees with a safe workplace. To maintain the safety and health of employees, customers and the public, the Company prohibits the use, possession, distribution, sale, manufacture of illegal drugs/controlled substances on or off the job, being under the influence of alcohol, and abusing prescribed medications during work hours or on Company property. Illegal drugs/controlled substances include, but are not limited to: marijuana, amphetamines, cocaine, barbiturates and opiates.

Employees will promptly inform their manager or Human Resources of any prescription medications they are taking which may affect safe operations. Employees do not generally have to identify the medication or the medical condition for which it is prescribed, but may be requested to provide a physician’s certificate of safety to work and any work restrictions caused by the medication. Employees have a duty to ask their physician whether any medication may create a work safety issue.

The Company reserves the right to implement drug or alcohol testing at any time.

We encourage employees who have alcohol/drug dependency to seek counseling or treatment.

Various alcohol and drug counseling treatments are covered by health insurance benefits (see Employee Assistance Program (EAP) under “Benefit Programs” policy). Participation in treatment or counseling for alcohol or substance abuse will be considered as a mitigating factor in employment decisions but does not protect any employee from discharge or legal consequences for violation of this policy.

It is the manager’s responsibility to immediately report to Human Resources any behavior they witness as being potential violations of this policy.

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Electronic Communications Policy PURPOSE This document is intended to provide employees with basic information on the appropriate use of communication tools available in the Company. While it is not intended to be all-inclusive, it does provide guidance on policies that all employees will be expected to know and follow.

Failure to do so may result in disciplinary action, up to and including, termination.

This policy covers all electronic communication tools provided by the Company. Examples of such tools are telephone, fax, e-mail, voice mail, copiers, scanners, conferencing services, instant messaging, cell phones, cell modems, texting, Internet, Citrix, virtual private networks, and the Company networks. This policy will also apply to any new communication technologies the Company may provide in the future.

USE RESTRICTIONS Company-provided communication tools may not be used for personal gain, solicitation of noncompany business, or advancement of individual views. Employees may not use information obtained during the course of employment for any purpose other than company business.

Employees are responsible for using communication tools in a legal, ethical and productive manner. Additional information can be found in Alleghanyâ&#x20AC;&#x2122;s Code of Business Conduct and Ethics. Use of communication tools should be monitored by managers, and inappropriate use will result in disciplinary action ranging from loss of access to termination of employment.

Employees are expected to use Company-owned communication tools primarily for business purposes. However, incidental personal use of a limited nature is permitted, as long as the use is responsible and does not interfere with your job responsibilities. Examples of acceptable personal use would be using the telephone for brief conversations with spouses, children, or parents; using e-mail to arrange a social engagement; or using the Internet to research information for a charity. If there are times when it is necessary for you to make or receive personal calls during work hours, they should be kept as brief as possible. Employees must remember this equipment is still company property and will be monitored.

Any long distance personal calls should be charged to your home phone or a personal calling card. Personal cell phones should either be turned off or set to vibrate while the employee is working. If the employee needs to use their personal cell phone during work hours, usage should be limited and not be disruptive to the employeeâ&#x20AC;&#x2122;s co-workers.

Employees should exercise common sense, and may not use any Company-provided communication tool in a way that is disruptive, harassing, or offensive to others. Examples of forbidden activity include viewing, sending, or printing sexually explicit messages, images, or cartoons; racial, ethnic or other slurs; or humor of questionable taste.

COPYRIGHT Copyrighted materials belonging to organizations other than the Company may not be transmitted by employees on the Internet. Employees are not permitted to copy, transfer, rename, add or delete information or programs belonging to other users, unless given permission to do so by the owner.

COMPANYâ&#x20AC;&#x2122;S RIGHT TO ACCESS INFORMATION Although employees have individual passwords for communication tools, these systems and their content are the sole property of the Company. Should a business need arise, or should there be reason to believe these tools are being used inappropriately, the contents and usage

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records may be inspected and disclosed without the permission of the employee. The Company reserves the right to monitor any aspect of communication tool use, and inspect messages or files on any device that connects to Company systems, for any reason.

SECURITY AND PRIVACY Internet communications are inherently insecure. Unless authorized to do so, employees are prohibited from using electronic communications to transmit confidential information to outside parties. Confidential information includes but is not limited to client or customer information, credit card numbers, Social Security numbers, employee performance reviews, salary details, trade secrets, passwords, and information that could harm the reputation of the Company or its employees.

The confidentiality of messages and records should be respected by employees. Employees are not authorized to retrieve, read, access, listen to, or forward any communications that are not intended for them. Anonymous messages or efforts to impersonate another person in any communication are forbidden. Any exception to these policies must be for a business purpose and receive prior approval by the department head.

INTERNET ACCESS The Company records access to websites from computers on the Company’s networks.

Managers may request a review of an employee’s Internet activities from the Head of Human Resources and Administration or the General Counsel.

The Company reserves the right to block any site that may pose security risks to Company business. Requests to add/delete/modify blocking filters should be submitted to the Information Technology Help Desk. Blocking filters will only be applied company-wide - not on a department, work group, or individual basis.

REMOTE ACCESS Indirect remote access to Company systems using Citrix, Outlook Web Access, or other web applications will be provided based upon need. Employees using remote access methods should take appropriate precautions:



Remote connections should be attended at all times. The employee is responsible for all activity that occurs on their remote access connections. Remote connections should be promptly terminated when work is finished.



Proprietary or confidential information should not be transferred to, or stored on nonCompany owned systems such as personally-owned computers, mobile phones or public cloud-based systems (i.e. Dropbox, Google Drive, etc.).



All equipment that is used for remote access to Company systems should have up-todate anti-virus software and be kept current on all operating system and application security patches.



Lost or stolen Company-owned equipment should be reported to the Information Services Help Desk immediately.



Mobile communication devices may not be used while driving.

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MOBILE COMMUNICATION DEVICES Employees may use personal smartphones, tablets, and other mobile computing and communications devices for business purposes with the approval of their Policy Team Member and Human Resources. There must be a clear business need, and they need to understand, agree to and sign the “Mobile Device Acceptable Use Policy” form. The Company reserves the right to revoke this privilege at any time. Please refer to the Mobile Device Policy for further information on use of any employee-owned or Company-owned mobile device.

RECORD RETENTION Company data and records should not be transported via unsecured email or stored in unsecured locations such as at an employee’s home or on non-Company-owned computers and/or cloud services. Paper copies of data or records should only be made when absolutely necessary. These copies should be retained according to our corporate records retention schedule or disposed of as soon as possible in the secured shredding bins provided.

Employees should protect company data and records when away from their desks by locking their computer workstation or placing physical records in a locked drawer.

The Company has established automated message retention and destruction policies in the Outlook/Exchange email system. These policies are designed to ensure that records required for business and regulatory purposes are retained and preserved, while other records are deleted on a periodic basis. Employees should not attempt to circumvent the email retention policy by copying items outside of the email system, by creating archive files, or by other means.

The General Counsel may notify employees that certain data and records are under a litigation hold. Employees should not delete, remove, alter, or otherwise destroy any records that are included in such a notification.

SOCIAL MEDIA Social media encompasses a broad sweep of online sites like Facebook, LinkedIn, Twitter, Reddit and others. Any use of social media in the course of Company business should be approved by the employee’s Policy Team Member or Human Resources in advance, conducted responsibly, reflect positively on the Company’s image and protect confidential customer and company information. Employee’s personal use of social media should be done off-site and on their own time. Do not mix personal and business communications on social media sites.

Social media sites have been the target of malicious security attacks in the past. Please take appropriate precautions when using them: 

Review privacy settings to prevent accidental information disclosure.



Be cautious of add on services and applications.



Use a strong password that is different from your other accounts.



Beware of what you are clicking on.



Watch out for scam emails related to social media.



And remember – Social media sites are inherently public forums.

If you are suspicious of any activity on social networking sites, please contact the Information Technology Help Desk immediately. Likewise, creating a company page on any social media

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site on behalf of the company must receive prior approval (please contact Human Resources before proceeding).

SOCIAL ENGINEERING Employees should be aware of “social engineering” scams where an individual attempts to gain access to Company systems by convincing the employee to reveal their system credentials. An example would be a telephone company technician calling and asking for information for help in testing, or to be given a connection to an outside line, etc. Information Technology will never ask outside vendors to work with employees without notifying them in advance. If you receive any suspicious calls, especially if you are asked for your username and/or password to systems, contact the Information Technology Help Desk or your manager immediately.

MALWARE SAFETY Malicious computer programs, known variously as viruses, worms, or Trojan Horses, are spread from computer to computer via e-mail, Internet websites, CDs, USB drives and other portable storage devices. The Company provides malware protection software on all computers to prevent the loss of productivity and potential loss or destruction of data that could result from an attack. While this software is updated frequently, computer users also need to be vigilant and follow these precautions: 

Never open e-mail or e-mail attachments from unknown sources. If an employee is not expecting something from a known source, verify that any attached files have been intentionally sent by the author of the e-mail.



Attached files should not be downloaded, detached from an e-mail, saved to a drive, or opened unless the employee knows the source, knows the purpose of the file, and has scanned the file for viruses.

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Downloading or installing software applications is prohibited without prior approval from the Help Desk. This protects the Company from licensing and incompatibility issues as well as from malicious attacks.

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Any computing device not issued by the Company must be checked by Information Technology for adequate anti-malware software and current definition files before accessing the Company’s network.

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Removable media such as CDs/DVDs, USB memory devices, and diskettes that have been created in non- company devices should be scanned by the Help Desk prior to using them. Do not leave removable media attached, or disks inserted when the computer is shut down or started.



Company laptops should be connected to the Company’s network and left on overnight at least once every two weeks in order to install automated software updates.



Any activity that would cause the creation, introduction, or distribution of malicious software is strictly prohibited.

If an employee suspects or receives warning messages of any kind regarding computer viruses, spam, adware or other security threats, please contact the Help Desk before taking any actions recommended in the message.

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GENERAL REMINDERS Exercise good judgment when using electronic communications: 

Plan what you need to say and keep messages brief.

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Consider which communication tool is most appropriate for the message and the recipient(s).

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Clearly identify the subject of the message in the subject line.

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When leaving a voice mail message, state your name and subject of the call first.

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Limit your message to one topic. Use multiple messages for multiple topics.

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Do not forward messages when they appear to be for your eyes/ears only without the permission of the sender.

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Information overload is a significant problem. Do not burden people with copies of messages unless there is a clear need.

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Your communications are a reflection of you and of the Company. Resist the temptation to be too casual. Your private e-mail has the potential to become public through a number of means (e.g. someone forwarding it, someone posting it, you sending it to the wrong address, a subpoena).



When using e-mail do not use all capital letters. Caps are interpreted as YELLING at the recipient!

OUT OF OFFICE MESSAGES Employees using the voice mail and e-mail systems should change their message any time they will be unavailable for an extended period. Managers should work with their employees to ensure that the messages are updated to reflect illness, emergency, or extended absences.

See the Customer Service/Response Policy for details on managing out of office messages.

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Electronic Communications Policy Acknowledgement and Authorization I understand that CapSpecialty, Inc., Capitol Indemnity Corporation, Platte River Insurance Company, Capitol Facilities Corporation, Professional Risk Management Services, Inc. RPG & CATA Services and Capitol Specialty Insurance Corporation (the Company) owns all electronic communication content, including personal use, and there is no expectation of privacy.

I understand the Company monitors the computer, Internet, cell phone and all other electronic devices and the usage of all employees and has the ability to do so at any time, including viewing my work, email, Internet usage and any other usage at the time it is occurring, and that copies of my usage and any messages received by me may be made at the time of usage or anytime thereafter and are the property of the Company.

I understand and agree the Company and systems network administrators and Information Technology consultants (agents) may consent to a law enforcement agencyâ&#x20AC;&#x2122;s search and retrieval of information.

I understand the Company may keep an archived record of all electronic usage, including use of my personal electronic accounts which are accessed using the Companyâ&#x20AC;&#x2122;s computer and Internet access, and that this record may remain on a recoverable media or hard drive, even after all other records are deleted.

I authorize the Company and its agents and systems network administrators to engage in this monitoring and to intercept, inspect, retrieve, download, copy, disclose, disseminate and use any and all information or messages sent or received, whether of a business or a personal nature, from my internal computer system and Internet usage, any company telephones, cell phones or any other company electronic devices or records.

Employeeâ&#x20AC;&#x2122;s Signature

Date

Print Name

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Employee Problem Resolution It is the Companyâ&#x20AC;&#x2122;s policy that each employeeâ&#x20AC;&#x2122;s work-related problems be given important and timely consideration, and that the Company will make every reasonable effort to resolve problems in a mutually acceptable and timely manner.

All employees have the right to use these procedures without restraint, interference, or reprisal, and no individual is authorized to interfere with this right.

Employees shall talk to their immediate manager about the work-related problem. It is the responsibility of the employeeâ&#x20AC;&#x2122;s immediate manager to thoroughly consider all aspects of the problem fairly.

If employees do not receive feedback or resolution from their immediate manager within a reasonable time period, they should contact the next higher level of management. If they still do not receive feedback or resolution, they should contact Human Resources.

At any time during this process, the employee has the right to go to Human Resources for consultation and advice. If the employee requests that this discussion be held in confidence, such confidence will be respected. However, there may be circumstances, such as illegal conduct or harassment, where Human Resources will need to investigate and consult with General Counsel.

This is not a grievance process.

Managers must investigate problems/issues presented to them, no matter how insignificant it may seem to them. Problems/issues not investigated properly or thoroughly could result not only in legal issues and/or financial damages to the Company but also to the individual manager. Managers are encouraged to consult with their manager and/or Human Resources on all problems/issues. Managers must consult with Human Resources when problems/issues are of a safety or legal topic (such as harassment, discrimination, etc.).

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Progressive Disciplinary Process The Company recognizes that most employees perform their job duties in an acceptable manner and do not engage in inappropriate or unacceptable behavior. In those instances where an employee does have performance issues, or conducts him or herself inappropriately, disciplinary action may be necessary. The purpose of the disciplinary process is to encourage positive changes in an employeeâ&#x20AC;&#x2122;s work-related and workplace behavior.

The nature and severity of the discipline will vary, depending on the seriousness of the employeeâ&#x20AC;&#x2122;s behavior or performance issues in a given situation, his or her personnel and performance record and other factors management deems relevant. As a result, at the discretion of management, some situations may result in immediate suspension or termination of employment. There may be instances, however, when management may, at its sole discretion, determine that a verbal or written warning, or suspension of work for a period of time, is more appropriate.

As part of the progressive disciplinary process, the employeeâ&#x20AC;&#x2122;s manager will meet with the employee to discuss the inappropriate behavior, to identify necessary action to correct the behavior, to set a time frame for correcting the problem, and to state the consequences of a failure to correct the problem.

In all situations involving the disciplinary process, the manager must meet with the Head of Human Resources & Administration prior to any disciplinary action taking place.

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Prohibition of Harassment The Company is committed to providing a work environment that is free from discrimination and unlawful harassment. The Company will not tolerate harassment of employees in any form.

Actions, words, jokes, or comments based on an individual’s sex, race, color, religion, national origin, age, disability, marital status or any other legally protected characteristic will not be tolerated. Sexual harassment (both overt and subtle) is a form of employee misconduct that is demeaning to another person, undermines the integrity of the employment relationship, and is strictly prohibited. Such conduct may result in disciplinary action, up to and including, termination from employment.

Federal, state and, where applicable, local law forbids sexual harassment of an individual in employment. Regulations issued by the Equal Employment Opportunity Commission define sexual harassment as follows: Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitutes sexual harassment when (1) submission of such conduct is made either explicitly or implicitly a term or condition of an individual’s employment; (2) submission to or rejection of such conduct is used as the basis for employment decisions affecting such individual; or (3) such conduct has the purpose and effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment.

The Company’s prohibition of sexual and other forms of harassment includes not only conduct which has been defined as unlawful by the courts but goes beyond legal definitions and includes any behavior that is reasonably likely to create a hostile, intimidating or offensive work environment for others. Sexual harassment may include explicit sexual propositions, suggestive or persistent comments of a sexual nature, sexually-oriented text messages (“textual” harassment), the display of obscene or sexually-oriented material, sexually-oriented kidding or teasing, or jokes about gender-specific traits, foul or obscene language or gestures, and physical contact such as patting, pinching, or brushing against another person’s body, and any similar behavior which is unwelcome or offensive. Sex-based harassment – that is, harassment not involving sexual activity or language – may also constitute discrimination if it is severe or pervasive and directed at employees because of their sex.

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, or any other characteristic protected by law 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 (nicknames or labels), slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes and display or circulation in the workplace (including through e-mail, text messages or social media) of written or graphic material that denigrates or shows hostility or aversion toward an individual or group.

Conduct prohibited by these policies is unacceptable in the workplace and in any work-related setting outside the workplace, such as during business trips, business meetings and businessrelated social events. No member of management shall threaten or imply, either explicitly or

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implicitly, that an employee’s refusal to submit to sexual advances may adversely affect the employee’s employment, salary, review, assignment, duties, or any other term or condition of employment. Sexually harassing conduct in the workplace, as described above, will not be permitted of any employee.

If any employee believes that he or she is the object of sexual or other unlawful harassment, the employee should promptly report that fact to Human Resources before the conduct becomes severe or pervasive.

Human Resources will address all complaints of harassment. The Company prohibits retaliation against any individual who reports discrimination or harassment or participates in an investigation of such reports. Retaliation against an individual for reporting harassment or discrimination or for participating in an investigation of a claim of harassment or discrimination is a serious violation of this policy and, like harassment or discrimination itself, will be subject to disciplinary action, up to and including termination of employment.

The Company will review the situation and take prompt, effective and appropriate action. This may include informal action or may be corrective disciplinary action up to and including termination of employment. Employees who are found by the Company to have engaged in sexual or other unlawful harassment, and managers who are found by the Company not to have fulfilled their obligations under this policy, may be subject to corrective disciplinary action, up to and including termination.

EMPLOYEES WHO HAVE EXPERIENCED CONDUCT THEY BELIEVE IS CONTRARY TO THIS POLICY ARE OBLIGATED TO TAKE ADVANTAGE OF THIS COMPLAINT PROCEDURE. An employee’s failure to fulfill this obligation could affect his or her rights in pursuing legal action within the time frames established under Title VII of the Civil Rights Act, as amended, state or local laws or ordinances.

Managers play a particularly important role in identifying and eliminating harassment and discrimination in the workplace. Since managers represent the Company, they have an obligation to report all situations that might be considered harassment or discrimination, whether observed or reported informally or formally. Given the sensitive nature of these situations, managers are advised to contact Human Resources as soon as possible rather than deal with the situation themselves.

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Violence and Respectful Workplace The effects of workplace violence are tragic, and there are increasing practical and regulatory pressures to address this issue with effective policies and practices. Violence does not just mean physical harm to people or property. The National Institute on Occupation Safety and Health defines violence to include not only physical assault but also threats, harassing calls, verbal abuse, following, yelling, bullying and overt intimidation of others. These “less than assaults” are still of a violent nature, and are often precursors of assaults.

The best place to stop violence is early, stopping inappropriate behavior before it escalates.

This policy is designed to help establish a “respectful workplace,” where issues do not develop into violent confrontations.

VERBAL RESPECT The Company is open to the public daily and many visitors walk through our facility on a regular basis. Employees have diverse backgrounds and views of what is appropriate or humorous in the workplace. The Company and its employees must strive to constantly promote a nonoffensive environment. Profanity is prohibited, as well as inappropriate jokes or comments regarding race, sexuality, gender, ethnic group, age, religion, and sexual orientation. Further, hostile or intimidating comments toward other employees are also prohibited. Co-workers must not only show respect toward one another, but also toward the public from which the business is established. A visitor should be able to come into any area of the operations at any time without hearing offensive language.

There is no reason for verbal or physical aggression toward others or destruction of property or products. Any employee who commits such acts or threatens to engage in this sort of behavior is subject to discipline, up to and including termination. Moreover, the Company prohibits the possession of firearms or weapons on company property, or at any other location where an employee may be requested to be as part of his or her work function.

This is not a joking matter. The Company and the employees take safety seriously. One individual’s idea of a “joke” or “teasing” could be perceived by others as a serious threat. So even “joking” on these topics violates this policy.

All employees are responsible for promptly informing their manager of any incidents in which an employee, customer or anyone else on the premises makes threats of physical harm or property destruction. If an employee has a disagreement with another person which the employee believes cannot be addressed in a civil manner, they bring it to the attention of their manager, rather than engaging in a confrontation. If an employee believes they have been subjected to overtly intimidating or violent behavior, promptly inform their manager, Policy Team Member or the Head of Human Resources & Administration.

Managers play a particularly important role in identifying and eliminating harassment and discrimination in the workplace. Since managers represent the Company, they have an obligation to report all situations that might be considered harassment or discrimination, whether observed or reported informally or formally. Given the sensitive nature of these situations, managers are advised to contact Human Resources as soon as possible rather than deal with the situation themselves.

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Company Vehicle Policy The Company provides automobiles for employees for use in performance of their corporate duties. In having or using a company vehicle, you assume a responsibility requiring the use of good judgment and common sense. All employees must have a valid driver’s license to operate a Company vehicle. Please see the Travel & Expense Policy document located on the Intranet, under Department Information and Finance for more information on business use of company and personal vehicles.

Once a car is assigned (long- or short-term), the employee is responsible for its care and operation. All employees are expected to drive in a safe, courteous, and conscientious manner.

All employees are also expected to maintain the good condition of the car.

DEPARTMENT OF MOTOR VEHICLE REPORT (MVR) New employees who will be assigned a Company vehicle must submit a current driver’s license number so their past driving records can be reviewed to satisfy the Company’s insurance coverage requirements. On an annual basis, all employees who are assigned a Company vehicle, or routinely utilize a Company vehicle, will have their driving records reviewed by Human Resources.

DRIVER RESPONSIBILITIES Additional responsibilities for employees who operate motor vehicles – whether personal vehicle, rentals, fleet car, etc. – on Company business shall include, but are not limited to, the following: Company (Fleet) Vehicle Responsibilities 1. Compliance with all applicable motor vehicle laws and operating regulations, to include texting/dialing while driving laws.

2. Use of seat belt at all times (including all passengers).

3. All citations/violations resulting from the improper use of the vehicle will be the employee/driver’s responsibility and non-reimbursable by the Company.

4. Fill the gas tank when it is below ¾ full.

5. Maintain cleanliness of the Company vehicle. This includes throwing away trash, no spilling of food and/or beverages, etc.

6. Report any problems with the vehicles to Administration Services in writing when you return.

7. Return vehicle to assigned stall listed on key tag. If stall is not available, park in any open stall within the CIC fleet car area.

Personal Vehicle Responsibilities 1. Compliance with all applicable motor vehicle laws and operating regulations, to include texting/dialing while driving laws.

2. Use of seat belt at all times (including all passengers).

3. All citations/violations resulting from the improper use of the vehicle will be the employee/driver’s responsibility and non-reimbursable by the Company.

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FLEET SAFETY RULES The following are strictly prohibited while operating a Company vehicle: 1. Operating without a valid driver’s license.

2. Use of tobacco products and electronic cigarettes (e-cigarettes) in the Company vehicle.

3. Allowing any non-employees to operate a Company vehicle. This includes spouses/partners, children, friends, family members, etc.

4. Failure to report an accident or to provide factual information when reporting a vehicle accident, including willful misrepresentation, or the withholding of information. There is an “Accident Kit” located in the glove box with instructions on what to do after an accident.

5. Driving while impaired by the influence of alcohol or drugs.

6. Leaving the scene of an accident (hit and run).

7. Using a mobile device while operating a Company vehicle.

8. Texting or reading emails while driving.

Violation of these rules and other serious driving safety issues can result in revocation of driving privileges or termination of employment, whether or not they resulted in any citation(s).

ACCIDENT REPORTING Employees who operate motor vehicles on Company business have important obligations regarding accident reporting, including responsibilities at the scene of an accident. An accident is defined as any event resulting in vehicle(s) damage, property damage or personal injury.

The following procedures apply to Company vehicles, as well as to employees’ personal vehicles while in use for Company business in the event of an accident: 1. Contact the authorities and, if necessary, summon medical assistance.

2. List all possible witnesses and obtain signed information cards whenever possible.

3. Complete a preliminary incident report at the scene of the accident.

4. Contact your manager and the Administration Services Department immediately.

5. If driving a personal vehicle, contact driver’s insurance company immediately.

The Administration Services Department is responsible for reporting accidents to the Company’s insurance agent and insurance carrier.

PERSONAL USE OF FLEET VEHICLE Any employee with an assigned (long-term) Company vehicle may include on his/her expense report all costs incurred for expenses, such as gas, oil changes and minor repairs. Nonoperating expenses such as overnight garaging, storage, parking and other expenses resulting from personal use are not reimbursable.

All business mileage and odometer readings must be reported on the monthly mileage log (located on the Company’s Intranet), and submitted to Accounts Payable on the first business day of each month. The IRS requires this log to be kept for all business mileage (excluding commuting mileage) and the remainder is deemed to be personal, including commuting

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mileage. Personal taxable benefit will be calculated each month and appropriately reflected in the employee’s income via payroll.

Also note, the IRS position on the following travel is regarded as personal use: 

Commuting to and from the office.



Home to airport to depart on airline travel.



To and from company-sponsored social or athletic activities.

Because personal and corporate tax matters are involved, the employee is required to maintain detailed records relating to travel involving a company car.

MAINTENANCE FOR ASSIGNED VEHICLES Employees that have a vehicle assigned to them are responsible for the cleanliness of the car (internally and externally). Employees are responsible for minor maintenance (i.e. oil changes, rotating tires, replace lights, etc.) which can be done at any local auto body shop. Employees are also responsible for major maintenance (i.e. 30K/60K/90K miles services, new brakes, etc.) which should be done at a Toyota dealership. All vehicle maintenance charges should be expensed to department 15-WI and all receipts for maintenance should be attached to the expense report. The vehicle logbook must be updated to reflect any maintenance performed.

Fuel, washes and tolls need to be expensed to the employee’s department.

If the employee is visiting the Middleton, WI office and maintenance on their vehicle is required, Administration Services can schedule a service appointment with our local shop and deliver/pick up the vehicle for the employee. To do this, the employee must notify Administration Services in advance, indicate when they will be in the office and specify what type of maintenance will be needed.

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Solicitation In the interest of maintaining a proper business environment and preventing interference with the work and inconvenience to customers, the Company has established the following rules related to solicitations and distribution of literature via hard copy or e-mail on Company property: 

 

Employees may not distribute literature or printed materials of any kind, sell merchandise, solicit financial contributions or solicit for any other cause during work time.

Employees may not distribute literature at any time in working areas.

Non-employees may not solicit or distribute literature on the Company’s premises at any time for any purpose.

Work time includes the working time of both the employee doing the soliciting and/or distributing and the employee to whom the soliciting and/or distributing is directed. Work time does not include meal periods when employees are not engaged in performing their tasks.

Working areas include all areas of the premises which the Company owns or has control in which work time activities are taking place. This includes use of the e-mail or voice mail system for solicitation.

State and federal labor laws authorize a company to select a limited number of charities for a company contribution drive. Employees may post their own charities or fund drive information in the public break room (posted information will be cleared weekly) or on the Intranet’s CapSpecialty Classifieds board. Employees may make contributions or sell items, such as Girl Scout cookies and event tickets, in the break room in a manner which gives other employees the option to contribute or purchase.

We ask that you not solicit or post information related to political elections or political, social or religious causes outside of the scope of the labor laws.

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Telecommuting Policy INTRODUCTION Telecommuting is an alternative work arrangement where an individual performs their assigned job duties from a home work location. Telecommuting can be on a full-time basis or for intermittent situations.

This is a voluntary work alternative that may be appropriate for some employees and some jobs.

It is not a Company-provided benefit, and it in no way changes an employee’s terms and conditions of employment with the Company.

Employees wishing to telecommute on a full-time basis must sign a Telecommuting Agreement, along with the employee’s Manager. The Agreement is not required for intermittent, temporary or infrequent telecommuting situations.

An employee may terminate a telecommuting arrangement at any time and for any reason upon 30 days’ advance notice to the Company (less time if mutually agreed upon). The Company reserves the right to terminate a telecommuting arrangement at any time and for any reason in its sole discretion.

CRITERIA FOR PARTICIPATION Criteria for participation in a telecommuting arrangement include the adaptability of the job, aptitude of the employee and approval by the employee’s Manager and the Head of Human Resources & Administration.

Employees typically should be fully trained in all aspects of their job, be in a position deemed appropriate for telecommuting and be in good performance standing to be eligible to participate.

Performance Characteristics The following performance characteristics are usually associated with successful telecommuting employees:     

Ability to work alone effectively for extended periods Completes assignments independently and on time, meeting all quality standards Communicates information fully and timely with management, coworkers and customers Sets appropriate priorities, adapts if priorities change and maintains a suitable athome workspace Demonstrates dependability and responsibility by meeting attendance standards, follows through on projects and work assignments and maintains confidentiality of Company and customer information

Job Characteristics Jobs that are appropriate for telecommuting typically have the following characteristics:   

Face-to-face interactions can be scheduled, or are minimal Needs of internal and external customers can be satisfied from the employee’s home Clear objectives can be set and accountabilities can be clearly defined

WORK PERFORMANCE Performance, conduct and behavior standards for employees working in a telecommuting arrangement are equivalent to the standards applied when employees work at the office.

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COMPENSATION AND BENEFITS Telecommuting employees are subject to the same Compensation and Benefits policies, programs and business rules as in-office employees.

WORKSPACE AND WORKSPACE SAFETY The employee is responsible for establishing and maintaining an adequate workspace and for providing a secure work environment free of distractions and interruptions that would affect performance. The employee must make arrangements with other individuals in the household to establish an acceptable working environment. The employee will not provide care for children, elderly adults or others during working hours.

The employee is also responsible for establishing and maintaining safe, secure and healthy working conditions in his/her home. The employee is responsible for avoiding work that is not normally part of the job when working at their home (such as heavy lifting) and for taking normal precautions to avoid accidents.

The employee will be covered by worker’s compensation laws and procedures for compensable work-related injuries while at his/her home and during designated work hours.

The Company is not liable for any injuries to family members, visitors and others in the employee’s home.

There may be tax and other legal implications for the business use of your home based on IRS and state and local government restrictions. Responsibility for fulfilling all obligations in this area rests solely on the telecommuting employee.

EQUIPMENT AND INFORMATION SECURITY The employee’s manager, in consultation with Information Technology, will decide what Company-provided equipment is needed to perform the work activities of the position.

The Company will not provide on-site technical support at the employee’s home. If a problem cannot be resolved through the IT Help Desk or by bringing equipment into the office, the employee may be required to end the telecommuting arrangement.

Telecommuting employees must abide by the Company’s policies regarding computer and information security. Please refer to the Electronic Communications Policy and Alleghany’s Code of Business Conduct and Ethics.

The Company’s information and equipment must be protected to the same degree that it would be at the office location. Files and documents should be locked when not in use, and Companyowned equipment should not be used by anyone other than the telecommuting employee.

Please contact Human Resources to discuss any telecommuting requests prior to making any final decisions.

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Corporate Travel Policy In an effort to control travel costs, the Company utilizes Fox World Travel (Fox) to coordinate and manage our corporate travel. The Company requires that all business airline travel arrangements be made through Fox. For hotel/motel and rental car reservations, it is highly encouraged that employees use Fox. Coordinating employee’s airline travel in advance with Fox will result in the lowest fare and best value overall. In an effort to reduce expenses, it is highly encouraged for employees to use Fox’s Cliqbook Travel online system when making travel arrangements - all airline travel must be made through this system but hotel/rental car reservations are optional. If communicating directly with a Fox travel agent is required, it is recommended for employees to use e-mail to maintain consistent and clear communication when making travel arrangements. Please see the Travel & Expense Policy section found on the Company Intranet under the Department Information and Finance section, for more detailed Fox travel agent fee information and Cliqbook instructions.

Fox will provide business travelers with airline recommendations, by destination, based on the corporation’s list of preferred suppliers, the traveler’s schedule and the most cost-effective options.

Employees should use the lowest logical airfare available in coach class. If an employee desires first class, the difference in fare will be considered a personal expense and is not reimbursable.

RENTAL CARS Fox will make the employee’s car rental reservations, again utilizing their group discounts. Fox will advise the employee if his/her hotel/motel offers complimentary service to and from the airport at no expense. In many areas, a taxi service offers a fast, convenient and economical mode of transportation from the airport to the employee’s hotel or meeting place. When available, courtesy transportation (i.e., hotel shuttle from airport) is recommended as the first consideration for transportation requirements.

If the employee plans a one-way rental (drop-off), they must inform Fox when they reserve the car. Excessive drop-off charges will be added to the rental if the employee does not make arrangements in advance.

LODGING Fox and Cliqbook Travel have a record of all corporate rates available and can book hotel reservations at the same time as the employee’s other travel arrangements.

TRAVEL & EXPENSE POLICY It is the Company’s policy to reimburse employees for pre-approved reasonable and necessary travel, entertainment and meeting expenses incurred as part of Company business. Employees are not expected to incur personal gain or suffer loss as a direct result of business travel and entertainment, and they are not to expect reimbursement for expenses that are not within established guidelines and limitations. Our policy is that employees who must be away from home on company business should travel comfortably, but economically.

Please see the Travel & Expense Policy, found on the Company Intranet under the Department Information and Finance section, for more detailed information.

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TRAVEL – HOURLY Travel All in a Day’s Work If an employee is required to travel during the workday, that travel time is compensable.

Travel Away from Home If an employee is required to travel away from home while a passenger on a plane, train, bus or car, travel time occurring during and outside of the employee’s regular hours, this time is compensable. However, bona fide meal periods may be excluded.

Travel may differ from state to state. Questions on what is considered paid-time should be directed to Human Resources.

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Copy For Reference Only EMPLOYEE TRANSACTION FORM Effective Date of Change:

Employee Name:

Current Department:

New Department:

Current Manager:

New Manager:

Current Base Salary or Hourly Wage:

New Base Salary or Hourly Wage:

Old Title:

New Title:

Old Grade:

New Grade:

Status (check two): Exempt

Non-Exempt

Part-time

Full-time

Justification for Change (explain below or attach documentation)

Approval Manager Signature: Department Head Signature (If Applicable): Head of/Policy Team Signature: Human Resource Signature:

~ For Human Resources Use Only ~ Pay Date Effective

Initials

Reports Updated

Initials

A copy will be forwarded to you as confirmation once processed by HR.

A-1 1/2015

Copy For Reference Only EMPLOYMENT REQUISITION FORM Submit this form to HR prior to taking any action to fill a position.

Please attach a current position description, indicating any changes.

Department and Position Title: Is this a new position?

Yes No (Double click on the box to â&#x20AC;&#x153;checkâ&#x20AC;?)

(If no, former incumbent name here: If yes, attach justification for approval.)

Is this a budgeted position?

Yes

Is a new Computer needed?

Yes

No No

Telephone Number: Recommended Type of Position:

Cube Number: Regular Full-Time

Regular Part-Time

Please Complete: 1. If this is a new position, why is it needed? What other options have you explored to meet this need (attach further explanation if needed)?

2. If you are refilling a position, what options have you explored to meet the workload requirements other than refilling the position on the same basis as in the past (attach further explanation if needed)?

Manager Signature

Date

Department Manager Signature

Date

Head of/Policy Team Signature

Date

Human Resources Signature

Date

A-2 1/2015

Copy For Reference Only EMPLOYMENT REQUISITION FORM TEMPORARY/LTE POSITION Submit this form to HR prior to taking any action to fill a position.

Please attach a current position description or a brief description.

Department

Position Title

Manager

$ Salary Recommended

Time Frame Needed:

Hours/Week for

Weeks

Start Date: Is a new Computer needed?

Yes

No

Telephone Number:

Cube Number:

Please Complete: 1. Why is this person needed? What other options have you explored to meet this need (attach further explanation if needed)?

2. What qualifications are needed for this position? Please list in detail. (Please attach a bulleted list of duties this position will perform.)

Manager Signature

Date

Department Manager Signature

Date

Human Resources Signature

Date

A-3 1/2015

Copy For Reference Only MANAGER’S NEW EMPLOYEE CHECK LIST START DATE

NEW EMPLOYEE

PRIOR TO START DATE To Be Done

Who Responsible?

1. Order Name Plate

Human Resources

2. Email completed IT Request form to ITHelp, with cc: to Manager and Admin Services

Human Resources

3. Order access card from Admin Services

Human Resources

4. Clean workstation, clear drawers and bins of unnecessary binders, papers, etc.

Manager

5. Order supplies for desk (see page 2) from Admin Services or go to Administration Services link on Intranet – New Employee Supply Order Form

Manager

6. Set up workstation

Manager

7. Assign CapSpecialty Colleague and provide them with CapSpecialty Colleague handout

Manager

8. Assign Training Partner(s)

Manager

9. Order business cards from Admin Services (if applicable)

Manager/New Employee

10. Order corporate credit card – contact HR (if applicable)

Manager

Done?

EMPLOYEE’S FIRST DAY (After HR Orientation)

To Be Done

Who Responsible?

1.

Give tour of key areas in building (restrooms, break room, cafeteria, fitness facility)

Human Resources

2.

Give tour of Department and introduce to coworkers (include assigned copy room)

Manager/Training Partner

3.

Discuss with employee work hours schedule

Manager

4.

Review Timesheets/Exempt Time Off process

Manager

5.

Review and discuss Job Description, sign and return to HR (within first week of employment)

Manager

6.

Discuss training schedule and first review date

Manager

7.

Discuss all departmental policies, etc.

Manager

8.

Pass employee on to Training Partner(s)

Manager

9.

Take Employee to Lunch (or on-site lunch if large team) during their first week

Manager & Team

10. Complete, sign and return this Checklist to HR

A-4 1/2015

Manager

Done?

Copy For Reference Only Manager’s Signature

Date

Continuous follow up and feedback with employees is one of the keys to everyone’s success.

A-5 1/2015

Copy For Reference Only Workstation Supply Check List EMPLOYEE:

CUBE #:

EXT:

(Check off what you need and send it to Admin Services)

 Adding Machine -- tape (circle if needed)  Desk Calculator  Desk Calendar  Desk Organizer (for pens, clips, etc.)  Garbage Can  Paper Recycling Can  Pen/Pencil Tray (for pedestal drawer)  Push Pins  Ruler  Scissors  Stapler  Tape Dispenser  Other____________________________________ Items found in the copy areas:                  

Pens (Red, Blue & Black) Pencils Highlighters Sharpies Correction Tape Binder Clips (small, med, large) Paper Clips (small & large) Post-its (small, med, large) ¾ Scotch Tape Rubber bands Staples Staple Remover Scratch Pads Letter/Jr. Pads File Folders (letter & legal) Hanging Folders (letter & legal) Pocket Folders (letter & legal) Envelopes (right, left, regular, business reply, 9x12, 10x13)

If there is anything you need that is not on the list or in the Copy Areas, please email Admin Services and we will help you out!

A-6 1/2015

Copy For Reference Only Manager’s Terminating Employee Check List EMPLOYEE NAME

TERM DATE

ONCE NOTIFIED OF TERMINATION To Be Done

Done?

1. Send original resignation letter/e-mail to Human Resources



2. If refilling the position, send completed “Employment Requisition” form to Human Resources to begin recruitment process

EMPLOYEE’S LAST DAY To Be Done

Done?

1. Collect building access card 2. Collect any keys to: a. Company Car b. File Cabinets c. Desk drawers (leave in desk) d. Storage rooms e. Other NOTE: Return applicable keys to HR 3. Collect any company equipment given to employee: a. Cell Phone/Blackberry b. Laptop computer c. Other (check with Information Technology) NOTE: Return equipment to IS Help Desk

4. Collect any Corporate Credit Cards & return to Accounts Payable 5. Submit all receipts for pending credit card charges and/or have employee notify Accounts Payable 6. Information Technology will provide access to the users e-mail account, personal directory folder (P:\drive) and voicemail. If you are aware of any other files/folders or potential information please contact ITHELP via email to request access to this information.

NOTE: Access should begin only after employee’s last day 7. F&S Employees Only – Manager to collect all Powers of Attorney and Corporate Seals. Remit to Surety VBO. 8. Complete, sign and return this Checklist to HR

Manager’s Signature

Date

A-7 1/2015

Copy For Reference Only CAPITOL INDEMNITY CORPORATION TIME SHEET FOR NON-EXEMPT EMPLOYEES

From:

Time Period 06/09/07 To:

Employee Department

06/22/07

WEEK 1

Date

SAT. SUN. MON. TUES. WED. THURS. FRI.

Morning 6-12 Noon Start Finish

Afternoon 12-6 p.m.

Start

Finish

Evening after 6 p.m.

Start Finish

Total Hours Worked

06/09/07 06/10/07 06/11/07 06/12/07 06/13/07 06/14/07 06/15/07

0:00 0:00 0:00 0:00 0:00 0:00 0:00 0:00 0:00

WEEK TOTALS TOTAL OVERTIME HOURS

Paid Time Off Benefits Used Vacation

0:00

Sick

Personal

0:00

0:00

Holiday

0:00

Jury Duty

Family Death

0:00

Flex Time/Comments

0:00

WEEK 2 Date

SAT. SUN. MON. TUES. WED. THURS. FRI.

Morning 6-12 Noon Start Finish

Start

Afternoon 12-6 p.m.

Finish

Evening after 6 p.m.

Start Finish

Total Hours Worked

06/16/07 06/17/07 06/18/07 06/19/07 06/20/07 06/21/07 06/22/07

0:00 0:00 0:00 0:00 0:00 0:00 0:00 0:00 0:00

WEEK TOTALS TOTAL OVERTIME HOURS

Employee Signature:

Paid Time Off Benefits Used Vacation

0:00

Sick

0:00

Personal

0:00

Holiday

0:00

Jury Duty

Family Death

0:00

Flex Time/Comments

0:00

Supervisor Signature:

Hours Summary: Regular Hrs

0:00

Overtime Hrs

0:00

Vacation

0:00

Sick

0:00

Personal

0:00

Holiday

0:00

Jury Duty

0:00

Family Death

Total Hours 40:00 - Overtime paid after total hours

Comments / Notes:

A-8 1/2015

0:00 0:00

TRAINING NOTIFICATION FORM Employee (Please Print): Department: Upon completion of any type of work-related training (internal or external), please complete and submit this form to Human Resources.

Examples of work-related training include (but not limited to):    

   

Industry Education Classes Continuing Education Courses Conferences On-site Training

Date(s)

School/Training Sponsor (Required Information - Full Name Please)

Course/Seminar Name

Attended

Seminars/Webinars Designations Earned Certifications Earned Association Memberships

Would you recommended this Course/Seminar to others?

Yes

CEUs

No

Please rate (circle) the Course/Seminar on a scale of 1-10 (1 being poor, 10 being excellent): 1

2

3

4

5

6

7

8

9

10

Comments:

Certifications: Date Achieved: (Please include full name of Certification along with initials) (Required) Designations: Date Achieved: (Please include full name of Designation along with initials) (Required) Association Memberships:

Date Achieved:

(Please include full name of Membership along with initials) (Required)

A-9 1/2015

Employee Signature

Date

A-10 1/2015

CAPSPECIALTY TUITION REIMBURSEMENT APPLICATION Name: Department: __________________________________________ ________________________________ Position: _______________________________________

Employment Date: ___________________________

I hereby apply for reimbursement of tuition for the following courses(s): School

Descriptive Title & Course Number

Credit Hours

Term Begins

Tuition Fees

% Approved (HR USE ONLY)

Term Ends

Explain how the course(s) will help you in your present duties (attach supporting documentation/class description): I understand that Capitol Indemnity Corporation (CapSpecialty) will reimburse me 100% of tuition costs for courses related to my current job. Courses must be pre-approved by my manager, my Policy Team Member and Human Resources. CapSpecialty will also pay 50% of the tuition costs related to an approved course of study designed to obtain a degree in a subject area that would add value to the company and enhance my preparation for other positions within the company. Note: IRS guidelines limit the amount of non-taxable reimbursements. Please contact HR for the current year’s non-taxable maximum. The amount of reimbursement is based on the current cost per credit at area universities (please see Human Resources for cost per credit limit). Course work may be offered through colleges, technical schools, or correspondence schools.

I understand reimbursement is based upon successful completion (C or better) of each course and is limited to a maximum of 15 credits per calendar year. I am responsible for all other costs such as fees, books and any costs over the maximum.

I understand that if I voluntarily terminate my employment within 2 years of completion of college, technical school, or correspondence school training, which the company has paid for, the tuition is repayable to CapSpecialty on the following schedule: Leaving within 0-12 months of completed & reimbursed courses – 100% repayment Leaving within 13-24 months of completed & reimbursed courses – 50% repayment If I voluntarily terminate my employment before completion of an approved course, I am not eligible for reimbursement.

Signed Date Employee Signed Date Manager Signed Date Head of / Policy Team Member Signed Date Human Resources ACTION TAKEN: FOR HR USE ONLY Approved Disapproved

(See above for percentage allowed) Reason:

A-11 1/2015

*** A COPY OF THE FORM WILL BE RETURNED TO YOU ONCE HR SECTIONS HAVE BEEN COMPLETED ***

A-12 1/2015

THE HUMAN RESOURCES DEPARTMENT The Human Resources Department Is Available to All Employees Ann V. Hage

Human Resources & Payroll Assistant

x 4270

Hayley L. Hellenbrand

Head of Human Resources & Administration

x 4282

Debra L. Walker

Benefits & Payroll Specialist

x 4838

Topics

Main Point of Contact

Employee Benefits Questions

Debra

Employee Development Training

Hayley

Employment Issues

Hayley

Payroll Questions

Debra or Hayley

Performance Management

Hayley

Recruitment Questions

Hayley

Time Sheets

Ann or Debra

Feel free to contact another member of the Human Resources Team.

We are all here to assist you in any way possible.

A-13 1/2015