electronic engineering company electronic engineering...

45
ELECTRONIC ENGINEERING COMPANY Electronic Engineering Policy & Procedure Handbook Issue Date: 6/1/2005

Upload: others

Post on 03-Jul-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

ELECTRONIC ENGINEERING COMPANY

Electronic Engineering Policy & Procedure Handbook

Issue Date: 6/1/2005

Page 2: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Table of Contents

Policy Page Number: INTRODUCTION 020 Employee Welcome Message 1 030 Company History 2 040 Introductory Statement 3 051 Employee Acknowledgement Form 4 060 Customer Relations 5 EMPLOYMENT 101 Nature of Employment 6 103 Equal Employment Opportunity 6 104 Business Ethics and Conduct 6 105 Personal Relationships in the Workplace 7 112 Non-Disclosure of Confidential Information 8 EMPLOYMENT STATUS & RECORDS 201 Employment Categories 9 202 Access to Personnel Files 9 204 Personnel Data Changes 10 205 Introductory Period 10 209 Performance Evaluation 11 EMPLOYEE BENEFIT PROGRAMS 301 Employee Benefits 12 305 Holidays 12 306 Workers' Compensation Insurance 13 308 Time Off to Vote 13 309 Bereavement Leave 14 310 Relocation Benefits 14 311 Jury Duty 14 312 Witness Duty 15 313 Benefits Continuation (COBRA) 15 315 Paid Time Off (PTO) 16 316 Health Insurance 17 317 Life Insurance 17 319 Long-Term Disability 18 320 401(k) Savings Plan 18 322 Employee Referral Program 19 328 Parental Leave for School Visits 19 TIMEKEEPING/PAYROLL 401 Timekeeping 20 403 Paydays 20 405 Employment Termination 21 408 Company Business Expense 21

Page 3: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

WORK CONDITIONS & HOURS 501 Safety 22 502 Work Schedules 22 504 Use of Telephones 22 505 Smoking 22 506 Rest and Meal Periods 23 507 Overtime 23 508 Use of Equipment and Vehicles 23 510 Emergency Closings 24 512 Driving Company-Owned Vehicles 24 514 Visitors in the Workplace 25 516 Computer and E-mail Usage 25 518 Workplace Monitoring 27 522 Workplace Violence Prevention 27 LEAVES OF ABSENCE 602 Family and Medical Leave 29 603 Personal Leave 30 605 Military Leave 31 EMPLOYEE CONDUCT & DISCIPLINARY ACTION 701 Employee Conduct and Work Rules 32 702 Drug And Alcohol-Free Workplace Policy 32 703 Sexual and Other Unlawful Harassment 34 704 Attendance and Punctuality 36 705 Personal Appearance 36 710 Security Inspections 37 712 Solicitation 37 716 Progressive Discipline 37 718 Problem Resolution 38 720 Airborne Substance/Fragrance Policy 39 722 Workplace Etiquette 40 MISCELLANEOUS 800 Life-Threatening Illnesses in the Workplace 41

Page 4: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Welcome new employee! On behalf of your colleagues, I welcome you to EECo and wish you every success here. We believe that each employee contributes directly to EECo's growth and success, and we hope you will take pride in being a member of our team. This handbook was developed to describe some of the expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should familiarize themselves with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with EECo. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! Sincerely, Mark Clark President

1

Page 5: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

2

Page 6: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

COMPANY HISTORY

Electronic Engineering (EECo) was founded in 1946 as a service organization for the two-way radio industry in Iowa, which mainly consisted of cab companies, utility companies and police and fire departments. Because of a lack of qualified technicians, most of Electronic Engineering's knowledgeable "tech'xperts" traveled throughout the state supporting businesses requiring two-way technology. In January of 1950, WOI-TV in Ames began broadcasting television programming, and with that a new Electronic Engineering division was born - television repairs. Then in 1953, when air-conditioning came along, we began servicing and installing air-conditioners for businesses and residents in central Iowa. This opened the door for us to become a home appliance service center. In fact, we even became an authorized warranty repair center for washers and dryers. In the '60s as our service division continued to expand, we began to offer tone paging. The service was run by an operator, who callers informed whom they needed paged. A few years later we replaced the service with a fully automated paging terminal. During this time we became known as "The Beeper People" by our customers because of the sound our pagers made. Because of growth in the electronic communications industry, EECo became a full-line Motorola Dealer in the early '80s. During that time period we introduced Motorola display paging, which replaced tone pagers. This allowed our customers to receive numeric pages from individuals instead of operators. At the same time we also offered word message paging. In 1986, we introduced cellular phone technology to Des Moines when the first cellular phone call was made from our property at 1200 Keo. Since then the technology has been changing at a rapid pace, making the phones smaller and more affordable for the public. In the early '90s we launched our Internet Gateway system, which allows our customers to send word message pages via the World Wide Web to anyone who has paging service with us. As we look to the future, things are just as exciting. Technological advances will continue to change the way we communicate. However, some things never change like our commitment to meet the needs of our customers.

3

Page 7: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

INTRODUCTORY STATEMENT

This handbook is designed to acquaint you with EECo and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by EECo to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As EECo continues to grow, the need may arise and EECo reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. The only exception to any changes is our employment-at-will policy permitting you or EECo to end our relationship for any reason at any time. Employees will, of course, be notified of such changes to the handbook as they occur.

4

Page 8: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

EMPLOYEE ACKNOWLEDGEMENT FORM

The employee handbook describes important information about EECo, and I understand that I should consult my supervisor or the Director of Human Resources regarding any questions not answered in the handbook. I have entered into my employment relationship with EECo voluntarily and acknowledge that there is no specified length of employment. Accordingly, either I or EECo can terminate the relationship at will, with or without cause, at any time, so long as there is no violation of applicable federal or state law. Since the information, policies, and benefits described here are necessarily subject to change, I acknowledge that revisions to the handbook may occur, except to EECo's policy of employment-at-will. All such changes will be communicated through official notices, and I understand that revised information may supersede, modify, or eliminate existing policies. Only the Chief Executive Officer of EECo has the ability to adopt any revisions to the policies in this handbook. Furthermore, I acknowledge that this handbook is neither a contract of employment nor a legal document. I have received the handbook, and I understand that it is my responsibility to read and comply with the policies contained in this handbook and any revisions made to it. EMPLOYEE'S NAME (printed): _______________________________________________ EMPLOYEE'S SIGNATURE: _________________________________________________ DATE: __________________________________

5

Page 9: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

060 Customer Relations Effective Date: 6/1/01 Customers (both internal and external) are among our organization's most valuable assets. Every employee represents EECo to our customers and the public. The way we do our jobs presents an image of our entire organization. Customers judge all of us by how they are treated with each employee contact. Therefore, one of our first business priorities is to assist any customer or potential customer. Nothing is more important than being courteous, friendly, helpful, and prompt in the attention you give to customers. Our personal contact with customers, our manners on the telephone, and written communications we send are a reflection not only of ourselves, but also of the professionalism of EECo. Positive customer relations not only enhance the perception or image of EECo, but also pay off in greater customer loyalty and increased sales and profit.

6

Page 10: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

101 Nature of Employment Effective Date: 6/1/01 Employment with EECo is voluntarily entered into, and the employee is free to resign at will at any time, with or without cause. Similarly, EECo may terminate the employment relationship at will at any time, with or without notice or cause, so long as there is no violation of applicable federal or state law. Policies set forth in this handbook are not intended to create a contract, nor are they to be construed to constitute contractual obligations of any kind or a contract of employment between EECo and any of its employees. The provisions of the handbook have been developed at the discretion of management and, except for its policy of employment-at-will, may be amended or cancelled at any time, at EECo's sole discretion. These provisions supersede all existing policies and practices and may not be amended or added to without the express written approval of the chief executive officer of EECo. 103 Equal Employment Opportunity Effective Date: 6/1/01 In order to provide equal employment and advancement opportunities to all individuals, employment decisions at EECo will be based on merit, qualifications, and abilities. EECo does not discriminate in employment opportunities or practices on the basis of race, color, religion, sex, national origin, age, disability, or any other characteristic protected by law. EECo will make reasonable accommodations for qualified individuals with known disabilities unless doing so would result in an undue hardship. This policy governs all aspects of employment, including selection, job assignment, compensation, discipline, termination, and access to benefits and training. Any employees with questions or concerns about any type of discrimination in the workplace are encouraged to bring these issues to the attention of their immediate supervisor, the Director of Human Resources, or the President. Employees can raise concerns and make reports without fear of reprisal. Anyone found to be engaging in any type of unlawful discrimination will be subject to disciplinary action, up to and including termination of employment. 104 Business Ethics and Conduct Effective Date: 6/1/01 The successful business operation and reputation of EECo is built upon the principles of fair dealing and ethical conduct of our employees. Our reputation for integrity and excellence requires careful observance of all applicable laws and regulations, as well as a scrupulous regard for the highest standards of conduct and personal integrity. The continued success of EECo is dependent upon our customers' trust and we are dedicated to preserving that trust. Employees owe a duty to EECo, its customers, and owners to act in a way that will merit the continued trust and confidence of the public.

7

Page 11: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

EECo will endeavor to comply with all applicable laws and regulations and expects its directors, officers, and employees to conduct business in accordance with the letter, spirit, and intent of all relevant laws and to refrain from any illegal, dishonest, or unethical conduct. In general, the use of good judgment, based on high ethical principles, will guide you with respect to lines of acceptable conduct. If a situation arises where it is difficult to determine the proper course of action, the matter should be discussed openly with your immediate supervisor and, if necessary, with the Director of Human Resources for advice and consultation. Compliance with this policy of business ethics and conduct is the responsibility of every EECo employee. Disregarding or failing to comply with this standard of business ethics and conduct could lead to disciplinary action, up to and including possible termination of employment. 105 Personal Relationships in the Workplace Effective Date: 6/1/01 The employment of relatives or individuals involved in a dating relationship in the same area of an organization may cause serious conflicts and problems with favoritism and employee morale. In addition to claims of partiality in treatment at work, personal conflicts from outside the work environment can be carried over into day-to-day working relationships. For purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with the employee is similar to that of persons who are related by blood or marriage. A dating relationship is defined as a relationship that may be reasonably expected to lead to the formation of a consensual "romantic" or sexual relationship. This policy applies to all employees without regard to the gender or sexual orientation of the individuals involved. Going forward from the effective date of this policy, relatives of current employees may not occupy a position that will be working directly for or supervising their relative. Individuals involved in a dating relationship with a current employee may also not occupy a position that will be working directly for or supervising the employee with whom they are involved in a dating relationship. EECo also reserves the right to take prompt action if an actual or potential conflict of interest arises involving relatives or individuals involved in a dating relationship who occupy positions at any level (higher or lower) in the same line of authority that may affect the review of employment decisions. If a relative relationship or dating relationship is established after employment between employees who are in a reporting situation described above, it is the responsibility and obligation of the supervisor involved in the relationship to disclose the existence of the relationship to management. The individuals concerned will be given the opportunity to decide who is to be transferred assuming the availabilty of another suitable position. If that decision is not made within 30 calendar days, management will decide who is to be transferred or, if necessary, terminated from employment. In other cases where a conflict or the potential for conflict arises because of the relationship between employees, even if there is no line of authority or reporting involved, the employees may be separated by reassignment or terminated from employment. Employees in a close personal relationship should refrain from public workplace displays of affection or excessive personal conversation.

8

Page 12: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

112 Non-Disclosure of Confidential Information Effective Date: 6/1/01 The protection of confidential business information and trade secrets is vital to the interests and the success of EECo. Such confidential information includes, but is not limited to, the following examples:

computer processes • • • • • • • • • •

computer programs and codes customer lists customer preferences financial information marketing strategies pending projects and proposals research and development strategies technological data technological prototypes

All employees are required to sign a confidentiality and non-disclosure agreement as a condition of employment. Employees who improperly use or disclose trade secrets or confidential business information will be subject to disciplinary action, up to and including termination of employment, even if they do not actually benefit from the disclosed information.

9

Page 13: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

201 Employment Categories Effective Date: 6/1/01 It is the intent of EECo to clarify the definitions of employment classifications so that employees understand their employment status and benefit eligibility. These classifications do not guarantee employment for any specified period of time. Accordingly, the right to terminate the employment relationship at will at any time is retained by both the employee and EECo. Each employee is designated as either NONEXEMPT or EXEMPT from federal and state wage and hour laws. NONEXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT employees are excluded from specific provisions of federal and state wage and hour laws. An employee's EXEMPT or NONEXEMPT classification may be changed only upon written notification by EECo management. In addition to the above categories, each employee will belong to one other employment category: FULL-TIME: A full-time employee is any employee who averages in excess of 30 hours per week for more than 90 days and is not classified as casual. These employees are eligible to participate in all benefit and leave programs. Benefits for full-time employees will be on the basis of an eight hour work day or regularly scheduled hours, whichever is less. REGULAR PART-TIME: Any employee who averages between 20 and 30 hours per week is classified as regular part-time. Individuals in this category are eligible to participate in limited benefit and leave plans. (Please refer to the individual benefit and leave plans to determine eligibility for participation.) Benefits for which regular part-time employees are eligible will be based on regularly scheduled hours on regularly scheduled work days. CASUAL PART-TIME: Employees classified as casual part-time are not eligible to participate in benefit or leave programs. Included are employees who:

work less than 1000 hours per year; • • •

accept temporary assignments (specific assignments not to exceed one year); or are "on call" or work only as needed.

202 Access to Personnel Files Effective Date: 6/1/01 EECo maintains a personnel file on each employee. The personnel file includes such information as the employee's job application, resume, records of training, documentation of performance appraisals and salary increases, and other employment records. Personnel files are the property of EECo, and access to the information they contain is restricted. You have the right, with limited exceptions, to view documents which the Company keeps in your personnel file. Generally, only supervisors and management personnel of EECo who have a legitimate reason to review information in a file are allowed to do so. Access is restricted when requested by third person parties to name, dates of employment, position, and other related employment information deemed appropriate.

10

Page 14: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Employees who wish to review their own file should contact the Director of Human Resources. With reasonable advance notice, employees may review their own personnel files in EECo's offices and in the presence of an individual appointed by EECo to maintain the files. 204 Personnel Data Changes Effective Date: 6/1/01 You are responsible for notifying the Human Resources Department of changes that affect your personnel records. Most of these changes can be documented using the Employee Information form, which can be obtained through your supervisor or found on the Company's internal website. Changes include, but are not limited to, the following:

Home address (Employee Information form) • • • • • • • •

Home telephone number (Employee Information form) Emergency contact changes (Employee Information form) Additional education completed (contact Human Resources) Marital status (Employee Information form) Birth or adoption of a child (contact Human Resources) Change in Life Insurance and/or 401(k) plan beneficiaries (contact Human Resources) Changes in the status of any dependent - e.g. no longer in school - (contact Human Resources)

205 Introductory Period Effective Date: 6/1/01 All new employees serve an introductory period during their first six months of employment. This period is established to benefit both the employee and EECo. It is a period of adjustment and adaptation, both personally and in terms of learning the job requirements and work rules. During this period both the employee and his or her supervisor should pay particular attention to the employee's performance and progress. The supervisor may offer advice and counseling when a problem becomes apparent. If EECo determines that the designated introductory period does not allow sufficient time to thoroughly evaluate the employee's performance, the introductory period may be extended for a specified period. Any significant absence will automatically extend an introductory period by the length of the absence. In no case should completion of the introductory period be considered to constitute a contract guaranteeing continued or permanent employment. Either the employee or EECo may end the employment relationship at will at any time during or after the introductory period, with or without cause or advance notice. During the initial introductory period, new employees are eligible for those benefits that are required by law, such as workers' compensation insurance and Social Security. They may also be eligible for other EECo provided benefits, subject to the terms and conditions of each benefits program. Employees who are promoted or transferred within EECo may also be required to complete a secondary introductory period with each reassignment to a new position. The employee's employment status will not change until they have successfully completed the secondary introductory period. If the employee, who in the sole judgment of management, is not successful in the new position, the employee can be removed from that position at any time during the secondary introductory period. If this occurs, the employee may be allowed to return to his or her former job or to a comparable job for which the employee is qualified, depending on the availability of such positions and EECo's needs, or the employee may be terminated.

11

Page 15: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

209 Performance Evaluation Effective Date: 6/1/01 Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Introductory performance evaluations are generally conducted at six months and one year before reverting to the company's standard review schedule. (An employee that moves into a new position is also reviewed after six months.) Introductory reviews allow the supervisor and employee to discuss the job responsibilities, standards, and performance requirements of the new position. Additional formal performance evaluations are conducted to provide both supervisors and employees the opportunity to discuss job tasks, identify and correct weaknesses, encourage and recognize strengths, and discuss positive, purposeful approaches for meeting goals. The performance of all employees is generally evaluated according to an ongoing 12-month cycle, towards the end of the fiscal-year end (June 30th). Merit-based pay adjustments are awarded by EECo in an effort to recognize truly superior employee performance. The decision to award such an adjustment is dependent upon numerous factors, including the information documented by this formal performance evaluation process.

12

Page 16: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

301 Employee Benefits Effective Date: 6/1/01 Eligible employees at EECo are provided a wide range of benefits. A number of the programs (such as Social Security, workers' compensation, state disability, and unemployment insurance) cover all employees in the manner prescribed by law. Benefits eligibility is dependent upon a variety of factors, including employee classification. Your supervisor can identify the programs for which you are eligible. Details of many of these programs can be found elsewhere in the employee handbook. Currently the following benefit programs are available to eligible employees:

401(k) Savings Plan • • • • • • • • • • •

• • • • • •

• •

Bereavement Leave Dental Insurance Employee Discounts Holidays Jury Duty Leave Life Insurance Long-Term Disability Medical Insurance Paid Time Off (PTO) Benefits Clothing Benefits

Some benefit programs require contributions from employees, but most are fully paid by EECo. The availability of benefit program offerings and eligibility for those programs is subject to change. On average, the benefit package for regular full-time employees represents an additional cost to EECo of approximately 30 percent of an employee's wages. 305 Holidays Effective Date: 6/1/01; Revision Date: 10/1/01 EECo will grant holiday time off to all employees on the holidays listed below:

New Year's Day (January 1) Memorial Day (last Monday in May) Independence Day (July 4) Labor Day (first Monday in September) Thanksgiving (fourth Thursday in November) Christmas (December 25)

EECo will grant paid holiday time off to all eligible employees who have completed one month of service in an eligible employment classification. If your work week is less than forty hours, holiday time will be adjusted accordingly. Eligible employee classification(s):

Regular full-time employees Regular part-time employees

12

Page 17: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

To be eligible for holiday pay, employees must work the last scheduled day immediately preceding and the first scheduled day immediately following the holiday. Any type of company paid time off will be counted as hours worked. A recognized holiday that falls on a Saturday will be observed on the preceding Friday. A recognized holiday that falls on a Sunday will be observed on the following Monday. If a recognized holiday falls during an eligible employee's scheduled paid day off, holiday pay will be provided instead of the paid time off benefit that would otherwise have applied. Paid time off for holidays will be counted as hours worked for the purposes of determining overtime. 306 Workers' Compensation Insurance Effective Date: 6/1/01 EECo provides a comprehensive workers' compensation insurance program at no cost to employees. This program covers any injury or illness sustained in the course of employment that requires medical, surgical, or hospital treatment. Workers may also receive compensation for lost time. Benefit accruals, such as PTO, will be suspended while an employee is off work due to a work comp injury and will resume upon return to active employment. Employees off work will also be responsible for their share of insurance premiums if applicable. Regardless of how insignificant the injury may appear, employees must immediately notify their supervisor or the Director of Human Resources so a determination can be made regarding medical treatment. Injured employees will be required to fill out appropriate paperwork concerning the injury. Such reports are necessary to comply with laws and initiate insurance and workers' compensation benefits procedures. No matter how minor an on-the-job injury may appear, it is important that it be reported so the employee can qualify for coverage and benefits as quickly as possible. 308 Time Off to Vote Effective Date: 6/1/01 EECo encourages employees to fulfill their civic responsibilities by participating in elections. Under most circumstances, employees should be able to find time to vote either before or after their regular work schedule. If an employee is unable to vote in an election during his or her nonworking hours, EECo will grant enough paid time off so the employee has three consecutive hours (including unpaid time) in which to vote. An employee will provide his or her supervisor a written request for time off to vote at least two working days prior to the election day. Advance notice is required so that the necessary time off can be scheduled at the beginning or end of the work shift, whichever provides the least disruption to the normal work schedule. Employees must submit a voter's receipt on the first working day following the election to qualify for paid time off.

13

Page 18: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

309 Bereavement Leave Effective Date: 6/1/01; Revision Date: 10/1/01 Up to three days* of paid bereavement leave will be provided to eligible employees in the following classification(s):

Full-time employees • •

• • • •

Regular part-time employees Employees are entitled to three days paid bereavement for parent, sibling, spouse, child and stepchild. Two days off will be granted for grandparent, grandchild, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law, and daughter-in-law. Employees may, with their supervisors' approval, use other paid or unpaid leave for additional time off as necessary if extensive travel time is involved. Employees who wish to take time off due to the death of an immediate family member should notify their supervisor immediately. In order to receive bereavement pay an employee must bring in a memorial folder from the funeral. *Assumes a forty-hour workweek for full-time employees. If your work week is less than forty hours, bereavement time will be adjusted accordingly. 310 Relocation Benefits Effective Date: 6/1/01 When EECo asks employees to relocate to a new area, certain relocation benefits may be provided to facilitate the transition. Relocation may be available to any eligible transferred or newly hired employee who must relocate in order to reside within 50 miles of the new place of work. Those employees eligible for relocation benefits are:

Full-time sales employees Full-time executive employees Full-time professional employees Full-time technical or uniquely-skilled employees

For specific information regarding the terms and extent of relocation benefits, please contact the Director of Human Resources. Employees must request relocation assistance for specific items in advance of the date the expenses are incurred. EECo will reimburse expenses only if the employee has received advance approval, incurs reasonable expenses, and submits satisfactory proof of the expense within 30 calendar days of the date the expense was incurred. 311 Jury Duty Effective Date: 6/1/01 EECo encourages employees to fulfill their civic responsibilities by serving jury duty when required. Jury

14

Page 19: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

duty pay will be calculated on the employee's base pay rate times the number of hours the employee would otherwise have worked on the day of absence. In order to receive this pay an employee must show proof of their service. Employee classifications that qualify for paid jury duty leave are:

Full-time employees • • Regular part-time employees

Employees must show the jury duty summons to their supervisor as soon as possible so that the supervisor may make arrangements to accommodate their absence. Of course, employees are expected to report for work whenever the court schedule permits. Either EECo or the employee may request an excuse from jury duty if, in EECo's judgment, the employee's absence would create serious operational difficulties. Benefit accruals, such as PTO, will be suspended during the leave and will resume upon return to active employment. Employees on leave will be responsible for their share of insurance premiums if applicable. 312 Witness Duty Effective Date: 6/1/01 EECo encourages employees to appear in court for witness duty when subpoenaed to do so. If employees have been subpoenaed or otherwise requested to testify as witnesses by EECo, they will receive paid time off for the entire period of witness duty. Employees will be granted unpaid time off to appear in court as a witness when requested by a party other than EECo. Employees are free to use any available paid PTO to receive compensation for the period of this absence. The subpoena should be shown to the employee's supervisor immediately after it is received so that operating requirements can be adjusted, where necessary, to accommodate the employee's absence. The employee is expected to report for work whenever the court schedule permits. 313 Benefits Continuation (COBRA) Effective Date: 6/1/01 The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under EECo's health plan when a "qualifying event" would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; a dependent child no longer meeting eligibility requirements; an eligible employee becoming entitled for Medicare, if this entitlement results in a decision to drop out of the group health Plan; and an employee receiving medical benefits from an employer involved in a Chapter 11 bankruptcy proceeding. Under COBRA, the employee or beneficiary pays the full cost of coverage at EECo's group rates plus an administration fee if so desired. EECo provides each eligible employee with a written notice describing

15

Page 20: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

20

rights granted under COBRA when the employee becomes eligible for coverage under EECo's health insurance plan. The notice contains important information about the employee's rights and obligations. 315 Paid Time Off (PTO) Effective Date: 6/1/01; Revision Date: 10/1/01; Revision Date 06/01/05 Paid Time Off (PTO) is an all purpose time-off policy for eligible employees to use for vacation, illness or injury, and personal business. It combines traditional vacation, sick leave, and personal holidays into one flexible, paid time-off policy. Employees in the following employment classification(s) are eligible to earn and use PTO as described in this policy: • Full-time employees • Regular part-time employees Once employees enter an eligible employment classification, they are granted PTO according to the following schedule: • After six months of service a new hire is entitled to six PTO days*. • After one year of eligible service, an employee is entitled to an additional 12 days of PTO, for

a total of 18 PTO days.* • Each year thereafter through year four, an employee is entitled to 18 PTO days*. • After five years of eligible service, and each year thereafter, an employee is entitled to 23

PTO days*. *Assumes a forty-hour work week for full-time employees. If your work week is less than forty hours, PTO time will be adjusted accordingly. The length of eligible service is calculated on the basis of a "benefit year." This is the 12-month period that begins when the employee is hired. An employee's benefit year may be extended for any significant leave of absence except military leave of absence. Military leave has no effect on this calculation. (See individual leave of absence policies for more information.) PTO can be used in minimum increments of a half-day. To schedule planned PTO, an employee should request approval from their supervisor 48 hours in advance. Requests will be reviewed based on a number of factors, including business needs and staffing requirements. When an employee has requested a ½ day or full day of PTO, the employee should not work hours beyond the 8 hours to be paid unless their supervisor authorizes it. It is mandatory that an employee take a minimum of five days off per year. At least one week of PTO must be taken as a full week, additional time off may be taken in full or half day increments. The employee must report unexpected requests to their supervisor prior to the start of the shift. Unexpected PTO requests may count towards the excessive absenteeism and/or tardiness limit of six occurrences in any continuous six-month period (see attendance and punctuality policy on page 36) per supervisor and HR Manager’s discretion. Employees should make every effort to talk to their supervisor directly rather than leave a phone message. The supervisor must also be contacted on each additional day of an unexpected absence. An employee that misses three continuous days in a row due to illness must bring in a doctor’s statement. Further doctor’s statements may be required depending upon the length of time off work. Under most circumstances an employee must use available PTO before asking for unpaid leave. In the event of scheduling conflicts, preference will be given to an employee requesting a full week of PTO versus an employee who is requesting a partial week of PTO. Following that, the decision will be based on first come first serve.

Page 21: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

As an additional condition of eligibility for PTO, an employee on an extended absence for illness or injury must apply for any other available compensation and benefits, such as workers' compensation. PTO will be used to supplement any payments that an employee is eligible to receive from state disability insurance, workers' compensation, or EECo-provided disability insurance programs. The combination of any such disability payments and PTO cannot exceed the employee's normal weekly earnings. Since the company does not provide a short-term disability benefit, each anniversary year unused PTO will rollover into a salary continuation bank. (An employee with extenuating circumstances, which must be approved by the Director of Human Resources, will be allowed to rollover unused PTO into the next year's PTO allocation.) This bank is to be used when an employee has a medical condition that prevents them from being at work. A maximum of 65 days worth of leave benefits can be accrued – assuming a forty-hour work week. Before being able to draw time from the salary continuation bank, an employee must first use available PTO (up to five days may be saved for future use) and be off work for at least five work days (either paid or unpaid). Upon termination of employment, employees will be paid any unused PTO benefits allocated on their prior anniversary. Employees will not be paid benefits from their salary continuation bank or any accrued benefits that would have been paid their next anniversary. 316 Health Insurance Effective Date: 6/1/01 EECo's health insurance plan provides employees and their dependents access to medical insurance benefits. Employees become eligible for this benefit on the first of the month coinciding with or following their date of hire. The following employment classifications are eligible to participate in the health insurance plan:

Full-time employees • Eligible employees may participate in the health insurance plan subject to all terms and conditions of the agreement between EECo and the insurance carrier. An employment classification change that results in ineligibility to participate in the health insurance plan may qualify an employee for benefit continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA). Refer to the Benefits Continuation (COBRA) policy for more information. Details of each health insurance plan are provided in their respective summary plan descriptions. Information concerning the plans and cost of coverage will be provided to new employees. Contact the Director of Human Resources for more information about health insurance benefits. 317 Life Insurance Effective Date: 6/1/01 The Company provides life insurance and accidental death and dismemberment (AD&D) insurance at no cost to full-time employees. Employees become eligible for this benefit on the first of the month coinciding with or following their date of hire. Dependent life is also included in this plan.

17

Page 22: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

The employee life insurance amount is equal to two times their annual salary or the previous year's earnings (including commissions) rounded up to the next thousand, whichever is greater. Dependent coverage on a spouse is 50% of the insured's coverage to a maximum of $20,000. The coverage for a child age 14 days to 6 months is 10% of the insured's coverage to a maximum of $2000; and for a child age 6 months to 19 (or age 23 if a full-time student) years, the coverage is 25% of the insured's amount to a maximum of $5000. AD&D is equal to two times an employee's annual salary or the previous year's earnings (including commissions) rounded up to the next thousand, whichever is greater. Employees in the following employment classifications are eligible to participate in the life insurance plan:

Full-time employees •

Eligible employees may participate in the life insurance plan subject to all terms and conditions of the agreement between EECo and the insurance carrier. Details of the basic life insurance plan including benefit amounts are described in the summary plan description. Contact the Director of Human Resources for more information about life insurance benefits. 319 Long-Term Disability Effective Date: 6/1/01 The Company provides Long-Term Disability insurance for full-time employees effective the first of the month coinciding with or following their date of hire. There is no cost to the employee for this coverage. The plan has a 90-day elimination period and provides for two-thirds of the employee's monthly income to continue if the employee is totally disabled. Employees in the following employment classifications are eligible to participate in the LTD plan:

Full-time employees Eligible employees may participate in the LTD plan subject to all terms and conditions of the agreement between EECo and the insurance carrier. LTD benefits are offset with amounts received under Social Security or workers' compensation for the same time period. Details of the LTD benefits plan including benefit amounts, and limitations and restrictions are described in the summary plan description. Contact the Director of Human Resources for more information about LTD benefits. 320 401(k) Savings Plan Effective Date: 6/1/01 EECo has established a 401(k) savings plan to provide employees the potential for future financial security for retirement.

18

Page 23: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Employees are able to enroll in the 401(k) the first of the month after the following requirements have been met:

are at least age 21 • • •

have completed one year of service with the company have worked at least 1000 hours

The 401(k) savings plan allows an employee to elect how much salary they want to contribute and provides flexibility on how the money is invested so funds can be tailored to an employee's individual needs. EECo may contribute an additional matching amount (50% of an employee’s first 6%) plus a discretionary contribution to each employee's 401(k) account if the company’s fiscal performance warrants such contribution. The match and discretionary contribution are paid after the end of the fiscal year to employees that were employed the full fiscal year. Because an employee's contribution to a 401(k) plan is automatically deducted from their pay before federal and state tax withholdings are calculated, employees save tax dollars now by having their current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed, favorable tax rules typically apply to 401(k) distributions. Complete details of the 401(k) savings plan are described in the summary plan description. Contact the Director of Human Resources for more information about the 401(k) plan. 322 Employee Referral Program Effective Date: 6/1/01 If an employee refers an individual for employment at EECo and the referral is hired, the employee will be compensated for the referral. If the new hire is employed after six months and is meeting expectations and requirements of the job, $500 (taxable wages) will be paid to the employee that referred the new hire. For more information, contact the Human Resources Department. 328 Parental Leave for School Visits Effective Date: 6/1/01 EECo recognizes the value of parental involvement in children's education. For this reason, EECo provides employees who are parents, guardians, or custodians of children in licensed day care facilities or kindergarten through grade 12 unpaid time off for the purpose of school visits. Parental leave for school visits allows employees to participate in activities sponsored, approved, or supervised by the school or daycare such as parent/teacher conferences or field trips. Any available paid leave may be substituted for unpaid leave for school visits. Employees must provide their immediate supervisors reasonable advance notice of the need for parental leave for school visits. Upon return from the leave, employees must provide documentation to the Director of Human Resources from the school verifying the date and time of the visit. Contact the Director of Human Resources for more information or questions about and requests for parental leave for school visits.

19

Page 24: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

401 Timekeeping Effective Date: 6/1/01 The accurate recording of time worked is the responsibility of every nonexempt employee. Federal and state laws require EECo to keep an accurate record of time worked in order to calculate employee pay and benefits. Time worked is all the time actually spent on the job performing assigned duties. All non-exempt employees are required to clock in and out on a time clock or keep a time sheet to record the number of hours worked each day. An employee’s supervisor must approve overtime before it is performed. Nonexempt employees should not have actual hours worked starting more than 15 minutes prior to their scheduled start time nor more than 15 minutes after their scheduled stop time without expressed, prior authorization from their supervisor. Altering, falsifying, tampering with time records, or recording time on another employee's time record may result in disciplinary action, up to and including termination of employment. 403 Paydays Effective Date: 6/1/01 All employees are paid biweekly every other Friday. (The preceding Sunday is the start of the next payroll period). Each paycheck will include earnings for all work performed through the end of the previous payroll period. In the event that a regularly scheduled payday falls on a holiday, employees will receive pay on the last day of work before the regularly scheduled payday. If a regular payday falls during an employee's vacation, the employee's paycheck will be available upon his or her return from vacation. Should an error occur on a paycheck, it must be reported to the employee's supervisor or the Human Resources Department within a week of receiving the check. The law requires that EECo make certain deductions from every employee's compensation. Among these are applicable federal, state, and local income taxes. EECo also must deduct Social Security taxes on each employee's earnings up to a specified limit that is called the Social Security "wage base." EECo matches the amount of Social Security taxes paid by each employee. EECo offers programs and benefits beyond those required by law. Eligible employees may voluntarily authorize deductions (health insurance premiums, 401(k) elections, etc.) from their paychecks to cover the costs of participation in these programs. Employees may have pay directly deposited into their bank accounts if they provide advance written authorization to EECo. (Forms can be obtained through the Human Resources Department.) Employees will receive an itemized statement of wages when EECo makes direct deposits. If you have questions concerning why deductions were made from your paycheck or how they were calculated, contact the Human Resources Department.

20

Page 25: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

405 Employment Termination Effective Date: 6/1/01 Termination of employment is an inevitable part of personnel activity within any organization, and many of the reasons for termination are routine. A two week notice (or longer) is preferred. Below are examples of some of the most common circumstances under which employment is terminated:

Resignation - voluntary employment termination initiated by an employee. • • •

Discharge - involuntary employment termination initiated by the organization. Layoff - involuntary employment termination initiated by the organization for nondisciplinary reasons. Retirement - voluntary employment termination initiated by the employee meeting age, length of service, and any other criteria for retirement from the organization.

The Director of Human Resources will generally schedule an exit interview at the time of employment termination. The exit interview will afford an opportunity to discuss such issues as COBRA, the employees thoughts concerning EECo, and the return of EECo-owned property (such as cell phones, pagers, keys, etc.). Since employment with EECo is based on mutual consent, both the employee and EECo have the right to terminate employment at will, with or without cause, at any time. An employee's final paycheck will be processed during the next scheduled payroll period. Employees will be sent W-2 tax forms in accordance with federal and state regulations. Therefore, it is important for employees to provide EECo with their most current mailing address before leaving the company. 408 Company Business Expense Effective Date: 6/1/01 Work Projects: An employee who is required to be "out of town" overnight on company work projects shall be given a $30/day per diem (one per diem per each night of stay) allowance for meals, personal phone calls, etc. (The per diem amount is subject to change at any time.) Advance requests should be submitted to the Human Resources Department (HR) as soon as an employee is made aware of the travel. If more than one employee from the same branch is involved in the project, requests need to be combined before being turned into HR. Expense reports must be turned in within a month of the reported expense(s). The cost of reasonable motel/hotel accommodations will be paid by the Company. (This does not include movie rentals, room service, bar bills, etc.) Reimbursement for employees of the same sex will normally be on the basis of double occupancy. Employees are expected to use good judgement in selecting economical, but comfortable, lodging facilities. Meetings, Conventions, Seminars: Employees attending approved business related meetings, conventions and seminars will be reimbursed for the actual cost of meals, transportation and lodging. An expense report must be completed, receipts attached, and then submitted to the employee's direct supervisor for approval before being sent to accounting. Expense reports must be turned in within a month of the reported expense(s). Mileage starts as if leaving from work, in other words, calculated to and from work.

21

Page 26: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

501 Safety Effective Date: 6/1/01 It is the intent of EECo to provide a safe and healthy working environment and to establish and insist upon safe practices at all times by all employees. The Company will do all that is reasonable to prevent injury to persons and damage to both public and private property, and to protect employees, the Company, the customer, and the public from results of accidents, hazards, and fires. Each employee is expected to obey safety rules and to exercise caution in all work activities. Employees must immediately report any unsafe condition to their supervisor. Employees who violate safety standards, who cause hazardous or dangerous situations, or who fail to report or, where appropriate, remedy such situations, may be subject to disciplinary action, up to and including termination of employment. Some of the best safety improvement ideas come from employees. Those with ideas, concerns, or suggestions for improved safety in the workplace are encouraged to raise them with their supervisor, or with another supervisor or manager. Concerns about workplace safety issues may be made anonymously to the Director of Human Resources. All reports can be made without fear of reprisal. 502 Work Schedules Effective Date: 6/1/01 The normal work schedule for all employees is 8:00 A.M. to 5:00 P.M. (with an hour lunch), eight hours a day, Monday through Friday. Staffing needs and operational demands may necessitate variations in starting and ending times, as well as variations in the total hours that may be scheduled each day and week, and the actual days that are worked. 504 Use of Telephones Effective Date: 6/1/01 Telephones are a vital part of our business because much of our business is handled on the phone. Personal use of the telephone is limited to breaks and calls should be as brief as possible. Long distance calls should be placed using an employee's own calling card. 505 Smoking Effective Date: 6/1/01 In keeping with EECo's intent to provide a safe and healthful work environment, the use of tobacco in any form is prohibited throughout the workplace, except in specifically designated areas and only during scheduled break times. This policy applies equally to all employees, customers, and visitors.

22

Page 27: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

506 Rest and Meal Periods Effective Date: 6/1/01 All nonexempt employees that work a full regularly scheduled eight hour day will be provided with two 15 minutes breaks - one in the morning and one in the afternoon. An employee that misses more than 15 minutes during their morning or afternoon hours will not be entitled to that respective break. Since break time is counted and paid as time worked, employees must not be absent from their work stations beyond the allotted break time. Employees that work a full eight hour day are entitled to one meal period of 60 minutes in length. Employees will be relieved of all active responsibilities and restrictions during meal periods and will not be compensated for that time. Hourly employees will automatically be docked 30 minutes for lunch unless the employee informs their supervisor that they worked through their lunch. 507 Overtime Effective Date: 6/1/01 When operating requirements or other needs cannot be met during regular working hours, employees may be scheduled to work overtime hours. When possible, advance notification of these mandatory assignments will be provided. All overtime work must receive the supervisor's prior authorization. Field service techs at remote sites who cannot receive prior approval for overtime must report the time back to their supervisor by noon on the next scheduled work day. Overtime assignments will generally be distributed as equitably as practical to all employees qualified to perform the required work. Overtime compensation is paid to all nonexempt employees in accordance with federal and state wage and hour restrictions. Overtime pay is based on actual hours worked and will include company- designated holidays. Failure to work scheduled overtime or overtime worked without prior authorization from the supervisor may result in disciplinary action, up to and including, possible termination of employment. 508 Use of Equipment and Vehicles Effective Date: 6/1/01 Equipment and vehicles essential in accomplishing job duties are expensive and may be difficult to replace. When using property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines. Please notify the supervisor if any equipment, machines, tools, or vehicles appear to be damaged, defective, or in need of repair. Prompt reporting of damages, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment or vehicles used on the job.

23

Page 28: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

The improper, careless, negligent, destructive, or unsafe use or operation of equipment or vehicles, as well as excessive or avoidable traffic and parking violations, can result in disciplinary action, up to and including, termination of employment. 510 Emergency Closings Effective Date: 6/1/01 At times, emergencies such as severe weather, fires, or power failures, can disrupt company operations. In extreme cases, these circumstances may require the closing of a work facility. In the event that such a decision is made during nonworking hours, the Company will notify radio station WHO (AM - 1040). When operations are officially closed all day due to emergency conditions, the time off from scheduled work will be paid. All full-time employees will be paid for eight hours or their regularly scheduled hours if less. All regularly scheduled part-time employees will be paid for their scheduled hours up to a maximum of four hours. In cases where an emergency closing is not authorized, employees who fail to report for work will not be paid for the time off unless they request available PTO. Only employees that are at work when a decision is made to close early will be paid for the time between the early dismissal and their normal end of shift. Employees in essential operations may be asked to work on a day when operations are officially closed. In these circumstances, employees who work will receive regular pay. 512 Driving Company-Owned Vehicles Effective Date: 6/1/01 It is the intent of this policy to describe the Insurance Company's underwriting guidelines for determining the insurability of each employee to operate company-owned vehicles. Part of the procedure to obtain automobile coverage for our company owned fleet of vehicles and the drivers who operate them, is to provide the insurance company with a list of employees who drive vehicles within our fleet. Primary drivers are those employees who routinely drive company owned vehicles. Secondary drivers are those employees who occasionally drive on company business and either use company owned vehicles or use their personal vehicles and are reimbursed for business expenses. Motor Vehicle Reports (MVRs) are then used to determine the insurability of each driver. These MVRs report all activity that has occurred with with an employee's driving record to include accidents, tickets, suspensions, etc. Just as with your personal automobile insurance, our carrier determines the risk of placing an employee on the company-wide coverage, identifies non-qualified drivers and adjusts the rates accordingly. The underwriting rules of our insurance company mandates that any employee who receives more than three moving violations within a three year period or one DWI conviction in three years will not be covered under our insurance policy. Under previous arrangements, they would only be aware of this once per year. However, our insurance company and EECO has initiated a program to request periodic MVRs between renewals to properly manage the risk and the cost of the premiums of our auto insurance.

24

Page 29: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

If any primary driver loses their coverage under the insurance company guidelines, they will immediately lose their company assigned vehicle and the opportunity to operate a company owned vehicle until such time as they re-qualify for coverage under our insurance company's underwriting guidelines. During that time, EECO will require a copy of the declaration page of their personal automobile insurance. This will verify that the employee has coverage in effect and it will also indicate the level of coverage the employee carries with their policy. Electronic Engineering Company reserves the right to require a minimum of $500,000 liability coverage on the employees personal auto policy in order for the employee to drive their personal vehicle on company business and be reimbursed by the company for such mileage expense. Any secondary driver who loses their coverage under the insurance company's underwriting guidelines, will lose the ability to operate a company owned vehicle in the course of their jobs. They will be held to the same guidelines as primary drivers with respect to showing proof of liability insurance coverage to operate their personal vehicles for company business and to be reimbursed for such mileage expenses in the event that they lose their coverage from the company insurance policy. It is the responsibility of the employee to inform the company if they have lost their driving privileges through action by the Department of Transportation or have received any endorsement or restriction to their drivers license which directly affects their ability to operate company-owned vehicles or to perform work related business in their personal vehicles. Failure to properly notify the company in a timely manner will result in disciplinary action which may include termination. The loss of driving privileges may adversely impact employment status. 514 Visitors in the Workplace Effective Date: 6/1/01 To provide for the safety and security of employees and the facilities at EECo, only authorized visitors are allowed in the workplace. Restricting unauthorized visitors helps maintain safety standards, protects against theft, ensures security of equipment, protects confidential information, safeguards employee welfare, and avoids potential distractions and disturbances. All visitors should enter EECo at the normal customer entrance. Authorized visitors will receive directions or be escorted to their destination. Employees are responsible for the conduct and safety of their visitors. If an unauthorized individual is observed on EECo's premises, employees should immediately notify their supervisor or, if necessary, direct the individual to the main entrance. 516 Computer and E-mail Usage Effective Date: 6/1/01 EECo encourages effective use of e-mail, the Internet/Intranet, and other electronic communications. This statement sets forth our policy with regard to use of company-provided electronic communications tools by our employees and other authorized users. The Internet/Intranet is a valuable tool for the research and location of information that can be of great importance to the company. The Internet/Intranet is a good tool to communicate with our customers, suppliers, vendors, contacts and employees, both present and future. The Internet/Intranet is a good

25

Page 30: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

vehicle to exchange information, quotes and technical data with people the company interacts with. The Internet/Intranet is also a place that contains inappropriate information and locations, and is a vehicle that can easily introduce damaging viruses into the company computer network. Due care and common sense must always be used when accessing the Internet/Intranet. Use of company provided electronic communication tools by our employees should be reasonably related to company business. Personal use of company provided electronic communication tools by company employees who have regular access to these tools in order to perform their jobs, is permitted so long as it is done in a professional manner that does not interfere with job performance, consume significant time and resources, give rise to more than nominal additional costs, or interfere with the activities, rights, or work of other employees. All personal use is subject to this Policy, including the provisions about prohibited use and about access, contents inspection, and disclosure of electronic communications. We encourage employees who have regular access to these tools, in order to perform their jobs, use the Internet/Intranet for personal use outside of normal working hours; the better our employees understand how to use these tools, the more effective we can be as a company. The same care must be taken with regard to the reception (downloading) of any files or e-mails, which could contain any possible viruses that could effect the company computer system. It is never appropriate to access certain information or certain sites even if it is "after business hours" if on a company computer or via the company computer network. Prior to using the Internet/Intranet, each employee is required to review the company Internet/Intranet policy and company Internet/Intranet Usage Quiz, which can be obtained through the employee's supervisor. This information provides a good clear understanding on usage of the Internet/Intranet. If an employee is ever unclear, he or she should consult with his or her supervisor, prior to accessing the Internet/Intranet. The following uses of company provided electronic communication tools are prohibited:

Sending copies of documents in violation of copyright laws or licensing agreements; • • •

• • • •

• •

Sending messages prohibited or restricted by government security laws or regulations; Sending confidential or proprietary information or data to persons not authorized to receive it, either within or outside the company. Content that may constitute harassment or be considered discriminatory, obscene, derogatory or excessively personal, whether intended to be serious or humorous; Sending chain letters, illegal activity, harassment; Exchanging sensitive information related to possible or actual litigation; Promotion of political positions or actions, personal commercial activities; Solicitation of any type, except for company sanctioned activities.

Employees cannot disclaim responsibility for failure to adhere to these restrictions. If you need clarification on any of these prohibited uses, contact the company's Human Resources Department. The company reserves the right to access the contents of our employees' and other authorized users' electronic communications. Company management will not routinely examine communications or files on our voice mail, e-mail and other systems. Such examination could be expected to occur in the following circumstances (which are not intended to be all-inclusive):

In the course of performing an audit In the course of performing an investigation triggered by indications of impropriety or misconduct, including without limitation theft, espionage, and any other violation of company policies (including this Policy) As needed to protect health and safety

26

Page 31: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

As needed to prevent interference with the mission of the company • •

• •

As needed to locate substantive information required for company business that is not readily available by some other means In connection with responding to a subpoena or discovery request in legal processes As needed to locate, access, and retrieve information in a individual's absence

The contents of electronic communications may be disclosed without permission of the user. The company will refrain from disclosure that could create personal embarrassment unless the disclosure is reasonably required to serve a business purpose or satisfy a legal obligation. It is the duty of each employee to monitor his or her own personal usage of the Internet/Intranet, and in addition it is the responsibility of each employee to safeguard the company computer network and the company and be observant of any fellow employees that are not following the company's common sense Internet/Intranet policy. This is important for the safety of the computer network and the company. Employees should notify management of irregularity in Internet/Intranet usage by any employee. Employees who choose not to comply with this policy, will be subject to disciplinary action up to and including termination. 518 Workplace Monitoring Effective Date: 6/1/01 Workplace monitoring may be conducted by EECo to ensure quality control, employee safety, security, and customer satisfaction. Computers furnished to employees are the property of EECo. As such, computer usage and files may be monitored or accessed. EECo may conduct video surveillance of non-private workplace areas. Video monitoring is used to provide better customer service, to identify safety concerns, maintain quality control, detect theft and misconduct, and discourage or prevent acts of harassment and workplace violence. Because EECo is sensitive to the legitimate privacy rights of employees, every effort will be made to guarantee that workplace monitoring is done in an ethical and respectful manner. 522 Workplace Violence Prevention Effective Date: 6/1/01 EECo is committed to preventing workplace violence and to maintaining a safe work environment. Given the increasing violence in society in general, EECo has adopted the following guidelines to deal with intimidation or other threats of (or actual) violence that may occur during business hours or on its premises. All employees, including supervisors and temporary employees, should be treated with courtesy and respect at all times. Employees are expected to refrain from fighting, "horseplay," or other conduct that may be dangerous to others. Firearms, weapons, and other dangerous or hazardous devices or substances are prohibited from the premises of EECo without proper authorization.

27

Page 32: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Conduct that threatens, intimidates, or coerces another employee, a customer, or a member of the public at any time, including off-duty periods, will not be tolerated. All threats of (or actual) violence, both direct and indirect, should be reported as soon as possible to your immediate supervisor or any other member of management. This includes threats by employees, as well as threats by customers, vendors, solicitors, or other members of the public. When reporting a threat of violence, you should be as specific and detailed as possible. All suspicious individuals or activities should also be reported as soon as possible to a supervisor. Do not place yourself in peril. If you see or hear a commotion or disturbance near your work station, do not try to intercede or see what is happening. EECo will promptly and thoroughly investigate all reports of threats of (or actual) violence and of suspicious individuals or activities. The identity of the individual making a report will be protected as much as is practical. In order to maintain workplace safety and the integrity of its investigation, EECo may suspend employees, either with or without pay, pending investigation. An employee that is determined to be responsible for threats of (or actual) violence or other conduct that is in violation of these guidelines will be subject to prompt disciplinary action up to and including termination of employment. EECo encourages employees to bring their disputes or differences with other employees to the attention of their supervisors or the Director of Human Resources before the situation escalates into potential violence. EECo is eager to assist in the resolution of employee disputes, and will not discipline employees for raising such concerns.

28

Page 33: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

602 Family and Medical Leave Effective Date: 6/1/01; Revision Date 10/1/01 Electronic Engineering Company will provide up to 12 weeks of job-protected leave (paid or unpaid) during a 12-month period for specified family and medical reasons. This is in harmony with the Family and Medical Leave Act of 1993. Eligibility: To be eligible for FMLA benefits, an employee must be employed by EECo for a total of at least 12 months, and worked at least 1250 hours during the 12 month period before the leave begins. Leave Entitlement: An eligible employee will be granted up to 12 work weeks of leave based on a rolling 12-month period, measuring back from the date leave is requested, for one or more of the following reasons:

Family Leave: Because of the birth or placement of a child for adoption or foster care and in order for the employee to care for such child. (Family leave must conclude within 12 months of the birth

or placement.)

Medical Leave: (1) To care for an employee’s spouse, child, or parent that has a *serious health condition; or (2) Because of a *serious health condition that makes the employee unable to perform the functions of his or her position.

*"Serious health condition" has been defined by the Department of Labor as an illness, injury, impairment, or physical or mental condition that involves: (1) a period of incapacity or treatment in connection with inpatient care; (2) a period of incapacity requiring absence from work, school or other regular daily activities for more than three days that also involves continuing treatment by a health care provider; or (3) continuing treatment for prenatal care or for a chronic or long-term condition that is incurable or so serious that, if not treated, it would likely result in a period of incapacity of more than three days.

An employee who has been on medical leave may be required to submit certification from a health care provider to substantiate that the leave is due to the serious health condition of the employee or the employee's immediate family member or that leave on an intermittent or reduced schedule basis is medically necessary. An employee will be required to present a certification of fitness to return to work when the leave was due to the employees’ serious health condition. Employees under the provisions of FMLA are required to use available paid leave before entering into unpaid leave status. Any paid time taken will be counted against the 12 weeks of leave available under the act. Intermittent Leave: Intermittent leave may be taken for a serious health condition of the employee's spouse, child or parent, or the employee, when medically necessary. Intermittent leave may be taken in blocks of time, or by reducing the normal weekly or daily work schedule by a set number of days or hours. (Intermittent or reduced schedule leave will not be granted for birth, adoption or due to the placement of a foster child in the employee's care.) Maintenance of Health Benefits: If an employee on FMLA leave has been covered under the Company's group health insurance plan, the employee may continue to be covered under the plan while on leave by paying his or her share of the cost. Should an employee fail to pay for his or her share of the insurance cost, coverage will be terminated.

29

Page 34: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Restoration to Position: Any employee who is granted leave is entitled to be restored to the position held by the employee when leave commenced, or to an equivalent position with equivalent benefits and pay. Under limited circumstances, certain highly-paid "key" employees may be denied restoration to their original position or an equivalent position with equivalent pay. Requesting FMLA Leave: Any employee wanting to request a leave under FMLA should contact the Human Resources Department for the necessary forms. In cases where the need to take FMLA leave is foreseeable, the employee is required to give 30-day advance notice. EECo may dictate leave as FMLA, without the employee requesting it, if the required qualifications are met. The company will inform the employee of this determination in writing. It is the intent of EECo to comply with all provisions of FMLA. Definitions and issues not addressed in this policy with be interpreted under the guidelines set forth by the U.S. Department of Labor, Employment Standard Administration, Wage and Hour Division Regulations Part 825. 603 Personal Leave Effective Date: 6/1/01 EECo has a policy of granting personal leaves of absence, in a few well-defined cases, for absences of a week or longer. Employees in the following employment classification(s) are eligible to request personal leave as described in this policy:

Full-time employees • • Regular part-time employees

Eligible employees may request personal leave only after having completed six months of service. As soon as eligible employees become aware of the need for a personal leave of absence, they should present a written request for leave to their supervisor. A personal leave of absence may be granted by EECo for up to one month. An extension beyond one month will be considered in the event of serious or extenuating circumstances. An employee will be required to use any available PTO before entering unpaid leave status. Requests for personal leave will be evaluated based on a number of factors, including anticipated workload requirements and staffing considerations during the proposed period of absence. Benefit accruals, such as PTO, will be suspended during the leave and will resume upon return to active employment. Employees on leave will be responsible for their share of insurance premiums if applicable. When a personal leave ends, every reasonable effort will be made to return the employee to the same position, if it is available, or to a similar available position for which the employee is qualified. However, EECo cannot guarantee reinstatement in all cases. If an employee fails to report to work promptly at the expiration of the approved leave period, EECo will assume the employee has resigned.

30

Page 35: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

605 Military Leave Effective Date: 6/1/01 A military leave of absence will be granted to employees who are absent from work because of service in the U.S. uniformed services in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA). Advance notice of military service is required, unless military necessity prevents such notice or it is otherwise impossible or unreasonable. The leave will be unpaid. However, employees may use any available PTO for the absence. Continuation of health insurance benefits is available as required by USERRA based on the length of the leave and subject to the terms, conditions and limitations of the applicable plans for which the employee is otherwise eligible. Benefit accruals, such as PTO, will be suspended during the leave and will resume upon return to active employment. Employees on leave will be responsible for their share of insurance premiums if applicable. Employees on military leave for up to 30 days are required to return to work for the first regularly scheduled shift after the end of service, allowing reasonable travel time. Employees on longer military leave must apply for reinstatement in accordance with USERRA and all applicable state laws. Employees returning from military leave will be placed in the position they would have attained had they remained continuously employed or a comparable one depending on the length of military service in accordance with USERRA. They will be treated as though they were continuously employed for purposes of determining benefits based on length of service. Contact the Director of Human Resources for more information or questions about military leave.

31

Page 36: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

701 Employee Conduct and Work Rules Effective Date: 6/1/01 To ensure orderly operations and provide the best possible work environment, EECo expects employees to follow rules of conduct that will protect the interests and safety of all employees and the organization. It is not possible to list all the forms of behavior that are considered unacceptable in the workplace. The following are examples of infractions of rules of conduct that may result in disciplinary action, up to and including termination of employment:

Theft or inappropriate removal or possession of property • • • •

• •

• • •

• • • • •

Falsification of timekeeping records Working under the influence of alcohol or illegal drugs Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the workplace, while on duty, or while operating employer-owned vehicles or equipment Fighting or threatening violence in the workplace Negligence or improper conduct leading to damage of employer-owned or customer-owned property Insubordination or other disrespectful conduct Sexual or other unlawful or unwelcome harassment Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace Excessive absenteeism or any absence without notice Unauthorized use of employer-owned equipment Unauthorized disclosure of business "secrets" or confidential information Violation of personnel policies Unsatisfactory performance or conduct

The above list of behaviors are merely examples of conduct that is considered unacceptable and is not intended to be all-inclusive. EECo reserves the right to determine the level of discipline appropriate for any violation of Company rules. Employment with EECo is at the mutual consent of EECo and the employee, and either party may terminate that relationship at any time, with or without cause, and with or without advance notice. 702 Drug And Alcohol-Free Workplace Policy Effective Date: 6/1/01 It is EECo's desire to provide a drug and alcohol-free, healthful, and safe workplace. To promote this goal employees are required to report to work in appropriate mental and physical condition to perform their jobs in a satisfactory manner. EECo prohibits the trade, sale, unauthorized possession or unauthorized use of narcotics and other illegal controlled substances on company premises. Reporting to work under the influence of alcohol or an unlawful controlled substance is also prohibited. Such activities may adversely affect employees safety, health, longevity, and seriously impair their performance. In addition, such substance abuse constitutes a potential danger to the security and welfare of other employees and exposes the company to the risk of a financial and property loss.

32

Page 37: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

To help EECo maintain a drug and alcohol-free workplace, if an employee becomes aware of another employee selling, purchasing, transferring or using drugs while on the job, it must be reported to the employee's supervisor. Employees are expected to notify their supervisor if they are taking prescribed medications or over-the-counter medications that may unfavorably affect the employee’s judgment, performance or behavior. Employees are also expected to follow all directions, restrictions and warnings for any prescribed or over-the-counter medications and drugs. EECo reserves the right to take appropriate action (including relieving an employee from work) if the use of a drug (prescribed or over-the-counter) is impairing or is deemed likely to impair the employee’s faculties or work performance. An employee found in violation of this policy will be subject to discipline, up to and including termination. EECo’s Drug Testing Policy Pre-employment To be considered qualified for employment with EECo a "negative" result on the drug screen is required. If that qualification is not met, or the individual declines to undergo drug testing, he/she (a person who has made application, whether written or oral, to our company to become an employee) will be deemed "not qualified", and either the application process will be terminated or any conditional offer of employment that has been extended will be withdrawn. Unannounced (Random) Testing of Current Employees EECo employees may be subject to drug testing that is conducted on a periodic basis without advance notice of the test. Each member of the entire employee population has an equal chance of selection for testing, regardless of whether the employee has been selected or tested previously. Employees who are not scheduled to be at work at the time of testing (i.e. PTO, leave of absence, work comp, etc.), or who have been excused from work pursuant to the company's policies prior to the time the testing is announced, will be excluded. A positive result, or refusal to undergo testing, will lead to immediate termination. Testing All testing will be administered in accordance with federal and state laws. Any action taken against an employee or prospective employee shall be based on the results of the drug test only. If ECCo does not provide transportation to and from testing, employees will be reimbursed usual and customary mileage expenses. To the extent feasible, the test shall only measure chemical substances in the body that are likely to affect the employee or prospective employee’s ability to safely perform the required duties of the job. Records of the test shall only show or make use of information regarding such substances. Drugs to be tested for include the following:

- Amphetamines/Methamphetamine - Cocaine - Marijuana (THC) - Opiates that include codeine, morphine & heroin - Phencyclidine (PCP)

33

Page 38: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Tampering with a sample or the submittal of a false sample, are actions that will lead to the withdrawal of a job offer or automatic dismissal. At the time of testing, the individual to be tested may provide information to the medical review officer (MRO) or his or her designee that might be relevant to the drug test. Such information may include identification of prescription or nonprescription drugs currently or recently used or any other relevant medical information. The MRO shall, prior to the results being reported to EECo, review and interpret any confirmed positive test results. Test results will be sent to the employee via certified mail. If results are positive, EECo will notify the employee of his or her right to request and obtain a confirmatory test from an approved laboratory of his or her choice. The employee pays the fee for the second test. If a confirmatory test is to be performed, EECo must be informed within seven days from the date EECo mailed the initial notice to the employee. Results of the second confirmatory test will be given to the same MRO who reviewed the initial test results. If the second confirmatory test does not confirm the initial results, EECo will inform the employee via certified mail that the initial confirmation test will not be considered a confirmed positive drug test for the purposes of taking disciplinary action. The employee will be reinstated with back pay plus interest, and the fee paid for the second test will be reimbursed. If the second confirmatory test confirms the initial results, EECo will notify the employee via certified mail of the test results, provide the name and address of the MRO who made the report, and notify the employee of his or her rights to request records. Requirement to Inform Any employee who is convicted or who pleads "no contest" to controlled substance violations occurring in or out of the work place must inform management no later than five days after such occurrence. Failure to comply with this requirement is grounds for immediate termination of employment. Employee Assistance Employees with questions or concerns about substance dependency or abuse are encouraged to discuss these matters with their supervisor or the Director of Human Resources to receive assistance or referrals to appropriate resources in the community. Employees with drug or alcohol problems may participate in a rehabilitation or treatment program through EECo’s health insurance benefit coverage. It is the responsibility of the employee to seek treatment before the problem affects judgment, performance or behavior. Confidentiality All communications concerning drug test results are considered confidential communications and cannot be disclosed to anyone except under limited circumstances. 703 Sexual and Other Unlawful Harassment Effective Date: 6/1/01 EECo is committed to providing a work environment that is free from all forms of discrimination and conduct that can be considered harassing, coercive, or disruptive, including sexual harassment. Actions, words, jokes, or comments based on an individual's sex, race, color, national origin, age, religion, disability, sexual orientation or any other legally protected characteristic will not be tolerated.

34

Page 39: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Harassment Depending on the totality of the circumstances, including the severity of the conduct and its pervasiveness, harassment may include, but is not limited to:

Verbal or physical conduct that denigrates or shows hostility towards an individual because of his or her race, religion, color, national origin, disability, age, and sex orientation and that:

has the purpose or effect of creating an intimidating, hostile, or offensive working •

• •

environment; or has the purpose or effect of unreasonably interfering with an individual's work performance; or otherwise adversely affects an individual's employment opportunities.

Sexual harassment Depending on the totality of the circumstances, including the severity of the conduct and its pervasiveness, sexual harassment may include, but is not limited to:

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature when:

submission to such conduct is made either explicitly or implicitly a term or condition of an individuals' employment; or

• • • •

• • •

submission or rejection of such conduct by an individual is used as the basis for an adverse employment decision affecting the individual; or such conduct has the purpose or effect of substantially interfering with an individual's work performance or creating an intimidating, hostile, or offensive work environment.

While it is not possible to list all the circumstances that may constitute harassment, the following are some examples of conduct, which if unwelcome, may constitute harassment depending upon the totality of the circumstances, including the severity of the conduct and its pervasiveness:

Unwanted sexual advances. Offering employment benefits in exchange for sexual favors. Making or threatening reprisals after a negative response to sexual advances. Visual conduct that includes leering, making sexual or intimidating gestures, or displaying of sexually suggestive objects or pictures, cartoons or posters. Verbal conduct that includes making or using derogatory comments, epithets, slurs, or jokes. Verbal sexual advances or propositions. Verbal abuse of a sexual nature, graphic verbal commentaries about an individual's body, sexually degrading words used to describe an individual, or suggestive or obscene letters, notes, or invitations. Physical conduct that includes touching, assaulting, or impeding or blocking movements.

If an employee experiences or witnesses sexual or other unlawful harassment in the workplace, it should be reported immediately to a direct supervisor, who will in turn, inform the Director of Human Resources. If the supervisor is unavailable or the employee believes it would be inappropriate to contact that person, the employee should contact a member of management through any of the following positions:

Director of Human Resources - Deb Nordaas (or her predecessor) at (515) 286-1885 President - Mark Clark (or his predecessor) at (515) 286-1851

35

Page 40: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

All allegations of harassment will be promptly investigated by the Director of Human Resources. To the extent possible, your confidentiality and that of any witnesses and the alleged harasser will be protected against unnecessary disclosure. Appropriate disciplinary actions and corrective measures will be instituted if the employee's allegations warrant such action. Discipline may include actions up to and including termination of employment. Retaliation (of any kind) against the employee making the allegation or against witnesses helping in the investigation will not be tolerated, and may lead to disciplinary actions up to and including termination. Any supervisor or manager who becomes aware of possible sexual or other unlawful harassment must immediately advise the Director of Human Resources so an investigation can be initiated. 704 Attendance and Punctuality Effective Date: 6/1/01 Regular and prompt attendance is vital to the smooth flow of work within our Company. If, for any reason, you are unable to report to work, you must notify your supervisor as soon as possible, but no later than the start of your assigned work shift. You must make every attempt to notify your supervisor personally; if your supervisor is not available when you call in, leave information with the representative who has been designated by your supervisor to take such calls. Normal working hours for our employees are 8:00 a.m. to 5:00 p.m., with an hour (unpaid) for lunch, unless otherwise specified by your supervisor. Employees are expected to be punctual and to report to work regularly. Excessive absenteeism and/or tardiness may result in disciplinary action, including termination. For the purpose of this policy, excessive absenteeism and/or tardiness will be defined as six occurrences within any continuous six-month period. Supervisors will be provided with bi-weekly reports that track each employee's attendance. Employees who are required to clock in and out on the time clock may clock only themselves in or out. An employee may request under certain conditions that a supervisor clock him or her in or out. Any employee, other than a supervisor, found to be clocking a co-worker in or out will be subject to disciplinary action. 705 Personal Appearance Effective Date: 6/1/01 Dress, grooming, and personal cleanliness standards contribute to the morale of all employees and affect the business image EECo presents to customers and visitors. During business hours or when representing EECo, you are expected to present a clean, neat, and tasteful appearance. You should dress and groom yourself according to the requirements of your position and accepted social standards. This is particularly true if your job involves dealing with customers or visitors in person. Your supervisor or department head is responsible for establishing a reasonable dress code appropriate to the job you perform. Employees in positions that require wearing clothes with the company logo are expected to wear the company designated clothing during work hours. If your supervisor feels your

36

Page 41: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

personal appearance is inappropriate, you may be asked to leave the workplace until you are properly dressed or groomed. Under such circumstance, you will not be compensated for the time away from work. Consult your supervisor if you have questions as to what constitutes appropriate appearance. Where necessary, reasonable accommodation may be made to a person with a disability. 710 Security Inspections Effective Date: 6/1/01 EECo reserves the right to monitor and/or inspect items such as, but not limited to: company vehicles, lockers, desks, work areas, computers, company equipment, or any other items brought onto the company's premises. An inspection may be conducted with or without the employee being present. The following types of circumstances may prompt an inspection: company theft, employee theft, illegal drugs, a concealed weapon, an internal investigation, etc. Inspections will be conducted by the employee's supervisor with another management person in attendance. If after an inspection an employee is found in violation of a company policy and or work rule, he or she will be subject to discipline, up to and including termination. 712 Solicitation Effective Date: 6/1/01 In an effort to ensure a productive and harmonious work environment, persons not employed by EECo may not solicit or distribute literature in the workplace at any time for any purpose. EECo recognizes that employees may have interests in events and organizations outside the workplace. However, employees may not solicit or distribute literature concerning these activities during working time. (Working time does not include lunch periods, work breaks, or any other periods in which employees are not on duty.) Company bulletin boards are provided for the purpose of posting information and announcements affecting the Company and its employees. Make a habit of checking the bulletin boards on a regular basis. If you have a message of interest to the workplace, you may submit it to your Supervisor for approval and posting. 716 Progressive Discipline Effective Date: 6/1/01 The purpose of this policy is to state EECo's position on administering equitable and consistent discipline for unsatisfactory conduct in the workplace. The best disciplinary measure is the one that does not have to be enforced and comes from good leadership and fair supervision at all employment levels.

37

Page 42: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

EECo's own best interest lies in ensuring fair treatment of all employees and in making certain that disciplinary actions are prompt, uniform, and impartial. The major purpose of any disciplinary action is to correct the problem, prevent recurrence, and prepare the employee for satisfactory service in the future. Although employment with EECo is based on mutual consent and both the employee and EECo have the right to terminate employment at will, with or without cause or advance notice, EECo may use progressive discipline at its discretion. Disciplinary action may call for any of four steps -- verbal warning, written warning, suspension without pay, or termination of employment -- depending on the severity of the problem and the number of occurrences. There may be circumstances when one or more steps are bypassed. Progressive discipline means that, with respect to most disciplinary problems, these steps will normally be followed: a first offense may call for a verbal warning; a next offense may be followed by a written warning; another offense may lead to a suspension; and, still another offense may then lead to termination of employment. If more than 12 months have passed since the last disciplinary action, the process will normally start over. EECo recognizes that there are certain types of employee problems that are serious enough to justify either a suspension, or, in extreme situations, termination of employment, without going through the usual progressive discipline steps. While it is impossible to list every type of behavior that may be deemed a serious offense, the Employee Conduct and Work Rules policy includes examples of problems that may result in immediate suspension or termination of employment. However, the problems listed are not all necessarily serious offenses, but may be examples of unsatisfactory conduct that will trigger progressive discipline. By using progressive discipline, we hope that most employee problems can be corrected at an early stage, benefiting both the employee and EECo. 718 Problem Resolution Effective Date: 6/1/01 EECo is committed to providing the best possible working conditions for its employees. Part of this commitment is encouraging an open and frank atmosphere in which any problem, complaint, suggestion, or question receives a timely response from EECo supervisors and management. EECo strives to ensure fair and honest treatment of all employees. Supervisors, managers, and employees are expected to treat each other with mutual respect. Employees are encouraged to offer positive and constructive criticism. If employees disagree with established rules of conduct, policies, or practices, they can express their concern through the problem resolution procedure. No employee will be penalized, formally or informally, for voicing a complaint with EECo in a reasonable, business-like manner, or for using the problem resolution procedure.

38

Page 43: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

If a situation occurs when employees believe that a condition of employment or a decision affecting them is unjust or inequitable, they are encouraged to make use of the following steps. The employee may discontinue the procedure at any step. 1. Employee presents problem to immediate supervisor within five days after incident occurs. (If

supervisor is unavailable or employee believes it would be inappropriate to contact that person, employee may present problem to Director of Human Resources or any other member of management.)

2. Supervisor responds to problem during discussion or after consulting with appropriate management,

when necessary. Supervisor documents discussion. 3. Employee presents problem to Director of Human Resources if problem is unresolved. 4. Director of Human Resources counsels and advises employee, assists in putting problem in writing,

visits with employee's manager(s), if necessary, and directs employee to Vice President of Operations for review of problem.

5. Employee presents problem to Vice President of Operations in writing. 6. Vice President of Operations reviews and considers problem. Vice President of Operations informs

employee of decision and forwards copy of written response to Director of Human Resources for employee's file. The Vice President of Operations has full authority to make any adjustment deemed appropriate to resolve the problem.

Not every problem can be resolved to everyone's total satisfaction, but only through understanding and discussion of mutual problems can employees and management develop confidence in each other. This confidence is important to the operation of an efficient and harmonious work environment, and helps to ensure everyone's job security. 720 Airborne Substance/Fragrance Policy Effective Date: 6/8/01 15 % of the general population have adverse health effects from perfume and solvents, and can become ill from even small amounts of products with a fragrance. Reported adverse health effects include lightheadedness, migraine headaches, vomiting, asthma attacks, neurological symptoms, etc. This is not a preference issue - it's a health issue. Please watch your usage of the following types of products while at work:

Perfume • • • • • • •

Hand lotion Cologne After-shave Hair spray Air freshener And other fragrance related products

39

Page 44: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

Use of the above listed products should take place in the restroom with the door closed. Leave the door slightly ajar and fan running after you leave. We're also asking that you monitor usage prior to entering the building at any time. An employee found in violation of this policy may be subject to discipline. 722 Workplace Etiquette Effective Date: 6/1/01 EECo strives to maintain a positive work environment where employees treat each other with respect and courtesy. Sometimes issues arise when employees are unaware that their behavior in the workplace may be disruptive or annoying to others. Many of these day-to-day issues can be addressed by politely talking with a co-worker to bring the perceived problem to his or her attention. In most cases, common sense will dictate an appropriate resolution. EECo encourages all employees to keep an open mind and graciously accept constructive feedback or a request to change behavior that may be affecting another employee's ability to concentrate and be productive. The following workplace etiquette guidelines are not necessarily intended to be hard and fast work rules with disciplinary consequences. They are simply suggestions for appropriate workplace behavior to help everyone be more conscientious and considerate of co-workers and the work environment. Please contact the Director of Human Resources if you have comments, concerns, or suggestions regarding these workplace etiquette guidelines.

Return copy machine and printer settings to their default settings after changing them. • • • • • • •

• • •

• • • •

Replace paper in the copy machine and printer paper trays when they are empty. Retrieve print jobs in a timely manner and be sure to collect all your pages. Keep the area around the copy machine and printers orderly and picked up. Keep your work area clean and free of debris. Be careful not to take or discard others' print jobs or faxes when collecting your own. Avoid public accusations or criticisms of other employees. Address such issues privately with those involved or your supervisor. Communicate by e-mail or phone whenever possible, instead of walking unexpectedly into someone's office or workspace. Be conscious of how your voice travels, and try to lower the volume of your voice when talking on the phone or to others in open areas. Keep socializing outside of break times to a minimum, and try to conduct conversations in areas where the noise will not be distracting to others. Try not to block walkways while carrying on conversations. Refrain from using inappropriate language (swearing) that others may overhear. Avoid discussions of your personal life/issues in public conversations that can be easily overheard. Monitor the volume when listening to music, voice mail, or a speakerphone that others can hear. Clean up after yourself and do not leave behind waste or discarded papers. Start a new pot of coffee if you have poured the last cup. Remove old food from refrigerators and keep microwave and break areas clean.

40

Page 45: ELECTRONIC ENGINEERING COMPANY Electronic Engineering ...webconnect.connectingyou.com/off_forms/EmployeeHandbook.pdf · 403 Paydays 20 405 Employment Termination 21 408 Company Business

800 Life-Threatening Illnesses in the Workplace Effective Date: 6/1/01 Employees with life-threatening illnesses, such as cancer, heart disease, and AIDS, often wish to continue their normal pursuits, including work, to the extent allowed by their condition. EECo supports these endeavors as long as employees are able to meet acceptable performance standards and their condition does not pose a safety hazard to themselves or other employees. Medical information on individual employees is treated confidentially. EECo will take reasonable precautions to protect such information from inappropriate disclosure. Employees with a life-threatening condition will be treated with respect and the confidentiality of their medical condition maintained. Anyone inappropriately disclosing such information is subject to disciplinary action, up to and including termination of employment. Employees with questions or concerns about life-threatening illnesses are encouraged to contact the Director of Human Resources for information and referral to appropriate services and resources.

41