PLEASE REFER TO THE REALMANAGE EMPLOYEE GUIDEBOOK, EFFECTIVE JULY 1, 2022. It is located in the P Drive:

P:\HMI ALL ACCESS\RealManage Forms\RealManage Family of Brands Employee Guidebook.pdf

 

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Employee Handbook

Welcome!

We believe every employee contributes to the success of Hammersmith® and are pleased to have you as a contributing member of our team.

At Hammersmith®, we expect every team member to make decisions and behave according to our core values, to work hard, accept responsibility, be accountable for their own performance, provide professional and courteous service to our clients, work in partnership with their peers and their Department Manager, and treat the entire team and the Company brand with respect.

This handbook describes many of our policies and outlines the programs and benefits available to eligible employees.

The handbook should answer many questions you may have about your employment at Hammersmith®, so it’s important for you to become familiar with the handbook as soon as possible.

Our business is filled with many challenges and opportunities and we are confident you will find your experience here to be stimulating and rewarding.

Once again, welcome!

Sincerely,

John Hammersmith, CMCA®, AMS®, PCAM®
CEO
Hammersmith^®

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TABLE OF CONTENTS

Welcome History, Goals, and Culture Purpose of the Handbook At-Will Employment Workplace Commitments Equal Employment Opportunity (EEO) Anti-Harassment and Non-Discrimination Policy Equal Pay Grievance Procedure No Retaliation Violence and Bullying Americans with Disabilities Act (ADA) and Pregnancy Accommodation Religious Accommodation Employee Eligibility and Work Authorization Open Door Policy Workplace Safety Weapon Free Policy Drug Free / Alcohol Free Policy Non-Smoking Facility Employment Classifications Introductory Period Employees Exempt Employees Non-Exempt Employees Regular Full-Time and Part-Time Employees Seasonal Employees Temporary (“Just In Time”) Employees Leave Policies Holidays Vacation Pay Sick Pay and Safe Time Bereavement Leave Voting Leave Jury Duty Unpaid Leaves of Absence Break Time for Nursing Mothers Communicable Disease Contagious Illness Company Benefits Health and Wellness Benefits Notice of the Right to Continue Health Insurance under COBRA 401(k) Retirement Plan Employee Assistance Program Worker’s Compensation Program

Company Policies and Procedures Code of Business Conduct and Ethics Conflicts of Interest Dress Code Employee Pay Wage Attachments Payroll Deductions Employee’s Responsibility to Update Information Hours of Work / Breaks Compensatory Time Off Overtime Inclement Weather Attendance, Punctuality and Unreported Absences Company Reimbursement Policy Company Credit Card Policy Bonding and Licensing Educational and Licensing Assistance Internet / Email Usage Social Networking and Blogging Instant Messaging and Internet Relay Chat Phone and Cell Phone Usage Office and Desk Inspection Policy Customer Relations Job Descriptions Job Postings Employee Referral Program Personal Relationships and Hiring of Relatives Workplace Etiquette and Company Culture Outside Employment Visitors at Work Convictions Space Heater Policy Crisis Communications Work Performance Performance Expectations Performance Reviews Performance Improvement Disciplinary Action Policy Promotion Policy Internal Transfers Access to Personnel Files Termination Policies Employment Termination Final Paycheck Exit Survey

IMPORTANT NOTICE

THIS HANDBOOK IS DESIGNED TO ACQUAINT EMPLOYEES WITH HAMMERSMITH® AND SOME INFORMATION ABOUT WORKING HERE. THE HANDBOOK IS NOT ALL INCLUSIVE, BUT IS INTENDED TO PROVIDE EMPLOYEES WITH A SUMMARY OF SOME OF HAMMERSMITH’S GUIDELINES. THIS EDITION DATED MARCH 1, 2021 SUPERSEDES ALL PREVIOUSLY ISSUED EDITIONS.

AT HAMMERSMITH®, NEITHER THE EMPLOYEE NOR THE COMPANY IS COMMITTED TO AN EMPLOYMENT RELATIONSHIP FOR A FIXED PERIOD OF TIME. EMPLOYMENT WITH IS AT-WILL. EITHER THE EMPLOYEE OR MANAGEMENT HAS THE RIGHT TO TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME, FOR ANY REASON. THE LANGUAGE USED IN THIS HANDBOOK AND ANY VERBAL STATEMENTS MADE BY MANAGEMENT ARE NOT INTENDED TO CONSTITUTE A CONTRACT OF EMPLOYMENT, EITHER EXPRESS OR IMPLIED, NOR ARE THEY A GUARANTEE OF EMPLOYMENT FOR A SPECIFIC DURATION. NO REPRESENTATIVE OF HAMMERSMITH®, OTHER THAN THE CEO OF THE COMPANY, HAS THE AUTHORITY TO ENTER INTO AN AGREEMENT OF EMPLOYMENT FOR ANY SPECIFIED PERIOD AND SUCH AGREEMENT MUST BE IN WRITING, SIGNED BY THE CEO AND THE EMPLOYEE.

NO EMPLOYEE HANDBOOK CAN ANTICIPATE EVERY CIRCUMSTANCE OR ANSWER EVERY QUESTION ABOUT EMPLOYMENT. AFTER READING THE HANDBOOK, EMPLOYEES THAT HAVE QUESTIONS SHOULD TALK WITH THEIR IMMEDIATE SUPERVISOR OR THE HUMAN RESOURCE DEPARTMENT. IN ADDITION, THE NEED MAY ARISE TO CHANGE THE GUIDELINES DESCRIBED IN THE HANDBOOK. EXCEPT FOR THE AT-WILL NATURE OF THE EMPLOYMENT, HAMMERSMITH® THEREFORE RESERVES THE RIGHT TO SUSPEND, TERMINATE, INTERPRET, OR CHANGE ANY OR ALL OF THE GUIDELINES MENTIONED, ALONG WITH ANY OTHER PROCEDURES, PRACTICES, BENEFITS, OR OTHER PROGRAMS OF HAMMERSMITH®. THESE CHANGES MAY OCCUR AT ANYTIME, WITH OR WITHOUT NOTICE.

As a company, we operate in a number of states within the United States. State, local, and federal employment laws change with some frequency, either as a result of a judicial decision or new legislation or regulations. Although we seek to monitor the laws in all states where we have employees, our Handbook may not always reflect the very latest requirements. We are, of course, committed to complying with all applicable laws. If you have specific questions, please contact our Human Resources Department.

 

Section 1 – Welcome

1.1
History, Goals, and Culture

The professionals of Hammersmith® (or “Company” or “Hammersmith Management, Inc.” or “HMI”) have been dedicated to the advancement of quality living communities in Colorado for over 40 years. We pride ourselves on working with Homeowner Association Boards and Homeowners in order to provide personalized and hands-on management benefits.

Incorporated in 1981, Hammersmith® was born out of the need to provide comprehensive, customized, and flexible services for Homeowner Association management. The Company’s accomplished and highly educated leaders, licensed Community Association Managers, accountants and experienced support staff are committed service providers focused solely on meeting the needs of the approximately 180 Associations we manage.

1.2
Purpose of the Handbook

This handbook provides employees an overview of the policies and procedures of this Company and to convey the Company’s expectations. It is not all-inclusive but does offer an overview of our policies and work environment.

This handbook is not a contract, expressed or implied, guaranteeing employment for any length of time and is not intended to induce an employee to accept employment with the Company.

With or without notice, the Company reserves the right to revise, suspend, revoke, terminate or change any of its policies, in sole or in part, whether described within this handbook or elsewhere, in its sole discretion. The information contained in this handbook supersedes all previous statements of the Company dealing with similar subject matter.

1.3
At-Will Employment

Employment with the Company is at-will. An at-will employment relationship can be terminated at any time, with or without reason, with or without notice, by either the employer or the employee, subject only to the applicable requirements of state or federal law. This at-will employment relationship exists regardless of any statements to the contrary in this handbook, any employment application or form, other document, policy, or any statement made, or action taken by any representative of the Company.

Any salary figures provided to an employee in annual or monthly terms are stated for the sake of convenience or to facilitate comparison and are not intended and do not create an employment contract for any specific period of time.

Nothing in this statement is intended to interfere with, restrain, or prevent concerted activity as protected by the National Labor Relations Act. Such activity includes employee communications regarding wages, hours, or other terms or conditions of employment. Hammersmith® employees have the right to engage in or refrain from such activities.

Section 2 – Workplace Commitments

2.1
Equal Employment Opportunity (EEO)

Hammersmith® is an equal opportunity employer. In accordance with applicable law, the Company prohibits discrimination against any applicant or employee based on any legally-recognized basis, including, but not limited to: race, color, religion, sex (including pregnancy, lactation, childbirth or related medical conditions), sexual orientation, gender identity, age (40 and over), national origin or ancestry, citizenship status, physical or mental disability, genetic information (including testing and characteristics), veteran status, uniformed servicemember status or any other status protected by federal, state or local law. Our commitment to equal opportunity employment applies to all persons involved in our operations and prohibits unlawful discrimination by any employee, including supervisors and co-workers.

The Company also complies with Colorado law, which prohibits discrimination and harassment against any employees or applicants for employment based on race (including hair texture, hair type or protective hairstyles commonly or historically associated with race (e.g., braids, locs, twists, tight coils or curls, cornrows, bantu knots, afros and headwraps), color, creed, sex (including pregnancy, married women and unmarried mothers), religion, age (over 40), national origin, sexual orientation (including actual or perceived orientation and transgender status), ancestry, religion, civil air patrol status and lawful activities during nonworking hours. The Company also does not discriminate against qualified applicants because they did not apply through a private employment agency. This policy applies to all employment actions including hiring, promotions, compensation, training, layoffs, recalls and terminations. It is our commitment and intent to comply with all Federal, State and local civil rights laws.

2.2
Anti-Harassment and Non-Discrimination Policy

Hammersmith® is committed to providing a work environment in which all individuals are treated with respect and dignity, and one that is free of discrimination and harassment. Each employee has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits unlawful discriminatory practices, including harassment. In keeping with this commitment, the Company maintains a strict policy prohibiting unlawful harassment, including sexual harassment.

This policy prohibits unlawful harassment in any form. Unlawful harassment includes verbal or physical conduct which: a) has the purpose or effect of substantially interfering with an individual’s work performance, b) creates an intimidating, hostile, or offensive work environment, or c) otherwise adversely affects an individual’s employment opportunities. Harassing conduct includes epithets, slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes; and written or graphic material that denigrates or shows hostility or aversion toward an individual or group that is placed on walls or elsewhere on the Company’s premises or circulated in the workplace, on company time or using company equipment by e-mail, phone (including voice messages), text messages, social networking sites or other means.

Hammersmith® prohibits sexual harassment and inappropriate sexual conduct. Sexual harassment constitutes discrimination and is illegal under federal, state and local laws. For the purposes of this policy, sexual harassment includes unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when:

• Submission to such conduct is made a term or condition of employment; or
• Submission to, or rejection of, such conduct is used as a basis for employment decisions affecting the individual; or
• Such conduct has the purpose or effect of unreasonably interfering with an employee’s work performance or creating an intimidating, hostile or offensive working environment.

Sexual harassment includes various forms of offensive behavior based on sex. The following is a non-exhaustive list of the types of conduct prohibited by this policy:

• Unwanted sexual advances or propositions (including repeated and unwelcome requests for dates);
• Offers of employment benefits in exchange for sexual favors;
• Making or threatening reprisals after a negative response to sexual advances;
• Visual conduct: leering, making sexual gestures, displaying of sexually suggestive objects or pictures, cartoons, posters, websites, emails or text messages;
• Verbal conduct: making or using sexually derogatory comments, innuendos, epithets, slurs, sexually explicit jokes, or comments about an individual’s body or dress, whistling or making suggestive or insulting sounds;
• Verbal and/or written abuse of a sexual nature, graphic verbal and/or written sexually degrading commentary about an individual’s body or dress, sexually suggestive or obscene letters, notes, invitations, emails, text messages, tweets or other social media postings;
• Physical conduct: touching, assault or impeding or blocking normal movements;
• Retaliation for making reports or threatening to report sexual harassment.

This policy applies to all applicants and employees, including supervisors, co-workers, and non-employees such as clients, vendors, consultants, etc. Conduct prohibited by this policy is unacceptable in the workplace and in any work-related setting outside the workplace, such as during business trips, business meetings and business-related social events.

All employees are expected to conduct themselves in a professional and businesslike manner at all times. Any employee found to have acted in violation of the Company’s policy regarding harassment and discrimination shall be subject to appropriate disciplinary action, up to and including termination.

All supervisors and managers are responsible for:

• Implementing this policy, which includes, but is not limited to, taking steps to prevent harassment and retaliation;
• Ensuring that all employees under their supervision have knowledge of and understand this policy;
• Promptly reporting any complaints to the designated Human Resources Representative so they may be investigated and resolved in timely manner;
• Taking and/or assisting in prompt and appropriate corrective action when necessary to ensure compliance with this policy; and
• Conducting themselves, at all times, in a manner consistent with this policy.

Failure to meet these responsibilities may lead to disciplinary action, up to and including termination.

2.3
Equal Pay

Subject to limited exceptions allowed under the law and only when warranted by the factual circumstances, the Company pays female and male employees equal pay for work within the same establishment, on jobs that require equal skill, effort, education, experience and responsibility, and that are performed under similar working conditions. In general, substantially similar work is determined by evaluating the level of skill, effort, responsibility and performance under similar working conditions.

2.4
Grievance Procedure

Any Hammersmith® employee who feels that he or she has experienced, witnessed, or become aware of discrimination or harassment in violation of these policies, should bring the matter to the immediate attention of his or her supervisor. In the event that reporting to a supervisor is not plausible or possible, or the incident is not resolved to the employee’s satisfaction, the Director of Human Resources or any member of the Human Resources team should be contacted. Prompt reporting of complaints or concerns is encouraged, so that rapid and constructive action can be taken before relationships become irreparably strained. Therefore, while no fixed reporting period has been established, early reporting and intervention have proven to be the most effective method of resolving actual or perceived incidents of harassment.

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

The Company will maintain confidentiality, as is practicable, throughout the investigatory process to the extent consistent with adequate investigation and appropriate corrective action.

If the Company determines that a violation of Company policy has occurred, remedial action will be taken, commensurate with the severity of the offense. Appropriate action will also be taken to deter any future harassment or discrimination prohibited by this policy. If a complaint of prohibited harassment, discrimination or retaliation is substantiated, appropriate disciplinary action, up to and including termination of employment, will be taken.

The initiation of a good faith complaint of harassment or retaliation will not be grounds for disciplinary action, even if the allegations cannot be substantiated. Any individual who makes a complaint that is demonstrated to be intentionally false may be subject to discipline, up to and including termination.

2.5
No Retaliation

Hammersmith® prohibits retaliation against employees for using the Company’s complaint procedure, reporting proscribed harassment, or for filing, testifying, assisting or participating in any manner in any investigation, proceeding or hearing conducted by a governmental enforcement agency. Prohibited retaliation includes, but is not limited to, termination, demotion, suspension, failure to hire or consider for hire, failure to give equal consideration in making employment decisions, failure to make employment recommendations impartially, adversely affecting working conditions or otherwise denying any employment benefit. If an employee feels he/she has been retaliated against, the employee should file a complaint using the procedures set forth above.

2.6
Violence and Bullying

Hammersmith® is committed to providing a safe, violence-free workplace, and strictly prohibits actual and threatened workplace violence. The Company does not tolerate bullying behavior. Individuals who engage in workplace bullying may be disciplined, up to and including termination of employment.

Workplace bullying is the use of force, threats or coercion to abuse, intimidate, or humiliate another employee. Workplace bullying includes, but certainly is not limited to, the following:

• Verbal abuse, such as the use of patently offensive, demeaning and harmful derogatory remarks, insults and epithets;
• Verbal or physical conduct that is threatening, intimidating or obscene;
• Pushing, shoving, kicking, poking, tripping, assaulting, or threatening physical assault, or intentionally damaging a person’s work area or property; or
• Sabotage, or deliberately subverting, obstructing or disrupting another person’s work performance.

Cyberbullying refers to bullying, as defined above that occurs through the use of a computer, cell phone, smartphone, tablet, pager or other device that transmits electronic information, regardless of whether the device is owned by or located at the Company or connected to the Company network. Cyberbullying is also prohibited.

Workplace violence is any intentional conduct that is sufficiently severe, abusive or intimidating to cause an individual to reasonably fear for their own personal safety or the safety of their family, friends and/or property such that employment conditions are altered or a hostile, abusive or intimidating work environment is created for one or several employees.

Examples of workplace violence include, but are not limited to:

• Threats or acts of violence occurring on Company premises, regardless of the relationship between the parties involved in the incident;
• Threats or acts of violence occurring off Company premises involving someone who is acting in the capacity of a representative of the Company;
• Threats or acts of violence occurring off Company premises involving an employee if the threats or acts affect the business interests of the Company;
• All threats or acts of violence occurring off Company premises, of which an employee is a victim, if we determine that the incident may lead to an incident of violence on Company premises; and
• Threats or acts of violence resulting in the conviction of an employee or agent of the Company, or an individual performing services for the Company on a contract or temporary basis, under any criminal code provision relating to violence or threats of violence when that act or the conviction adversely affect the legitimate business interests of the Company.

Examples of conduct that may be considered threats or acts of violence under this policy include, but are not limited to:

• Threatening physical contact directed toward another individual;
• Threatening an individual or the individual’s family, friends, associates or property with harm;
• The intentional destruction or threat of destruction of the Company’s or another’s property;
• Menacing or threatening phone calls;
• Stalking;
• Veiled threats of physical harm or similar intimidation; and/or
• Communicating an endorsement of the inappropriate use of firearms or weapons.

Workplace violence does not refer to workplace arguments or debates that are zealous or impassioned, provided there is no resort to any form of coercion. Discussions about sporting activities, popular entertainment or current events are not considered workplace violence when there is no threat of violence being directed to the workplace or any individual connected with it. Rather, workplace violence refers to behavior that demonstrates an intention to engage in violence, condones violence in our workplace, or targets any individual with acts or threats of violence.

The Company’s prohibition against bullying and workplace violence applies to all persons involved in Company operations, including employees, clients, and vendors.

Employees must report any occurrence of actual or threatened violence immediately to their supervisor or Human Resources. All reports of workplace violence will be taken seriously and will be investigated promptly and thoroughly and will be kept confidential to the extent possible. Law enforcement will be contacted when appropriate.

2.7
Americans with Disabilities Act (ADA) and Pregnancy Accommodation

Hammersmith® follows State and Federal laws and prohibits discrimination against individuals with disabilities and pregnant employees and acts in accordance with regulations and guidance issued by the Equal Employment Opportunity Commission (EEOC). Furthermore, it is the Company policy not to discriminate against qualified individuals with disabilities in regard to application procedures, hiring, advancement, termination, compensation, training or other terms, conditions and privileges of employment.

To comply with applicable laws ensuring equal employment opportunities for individuals with disabilities, Hammersmith® will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or an employee, unless undue hardship and/or a direct threat to the health and/or safety of the individual or others would result. Any employee who requires an accommodation in order to perform the essential functions of their job, enjoy an equal employment opportunity, and/or obtain equal job benefits should contact your immediate supervisor, designated manager, or Human Resources to request such an accommodation. Human Resources will communicate with the employee and engage in an interactive process to determine the nature of the issue and what, if any, reasonable accommodation(s) may be appropriate. In some cases, this interactive process may be triggered without a request from the employee, such as when the Company receives notice from its own observation or another source that a medical impairment may be impacting the employee’s ability to perform essential job functions.

Employees who believe they need an accommodation must specify, preferably in writing, what barriers or limitations prompted the request. The Company will evaluate information obtained from the employee, and possibly the employee’s health care provider or another appropriate health care provider, regarding any reported or apparent barriers or limitations, and will then work with the employee to identify possible accommodations, if any, that will help to eliminate or otherwise address the barrier(s) or limitation(s). If an identified accommodation is reasonable and will not impose an undue hardship on the Company and/or a direct threat to the health and/or safety of the individual or others, Hammersmith® will generally make the accommodation, or it may propose another reasonable accommodation which may also be effective. Employees are required to cooperate with this process by providing all necessary documentation supporting the need for accommodation and being willing to consider alternative accommodations when applicable.

Hammersmith® will also consider requests for reasonable accommodations for medical conditions related to pregnancy, childbirth and lactation where supported by medical documentation and/or as required by applicable federal, state or local law.

Employees who wish to request unpaid time away from work to accommodate a disability should speak to Human Resources.

2.8
Religious Accommodation

The Company will provide reasonable accommodation for employees’ religious beliefs, observances, and practices when a need for such accommodation is identified and reasonable accommodation is possible. A reasonable accommodation is one that eliminates the conflict between an employee’s religious beliefs, observances, or practices and the employee’s job requirements, without causing undue hardship to the Company.

The Company has developed an accommodation process to assist employees, management, and Human Resources. Through this process, the Company establishes a system of open communication between employees and the Company to discuss conflicts between religion and work and to take action to provide reasonable accommodation for employees’ needs. The intent of this process is to ensure a consistent approach when addressing religious accommodation requests. Any employee who perceives a conflict between job requirements and religious belief, observance, or practice should bring the conflict and request for accommodation to the attention of his or her immediate supervisor to initiate the accommodation process. The Company requests that accommodation requests be made in writing, and in the case of schedule adjustments, as far in advance as possible. The written request will include the type of work conflict that exists and the employee’s suggested accommodation.

2.9
Employee Eligibility and Work Authorization

Hammersmith® is committed to employing only individuals who are authorized to work in the United States and who comply with applicable immigration and employment laws. As a condition of employment, every individual must provide satisfactory evidence of their identity and legal authority to work in the United States within three business days of commencing employment. Section 1 of the Form I-9 must be completed on or before the first date of employment. If the employee cannot verify their right to work in the United States within three business days of employment, the Company will be required to terminate their employment immediately.

2.10
Open Door Policy

The Company has an open-door policy and takes employee concerns seriously. The Company values each employee and strives to provide a positive work experience. Employees are encouraged to bring any workplace concerns they might have or know about to their supervisor or another member of management.  Suggestions and questions will be answered as quickly as possible. 

2.11
Workplace Safety

The safety and health of every Hammersmith® employee and visitor, and the environment are of primary consideration in the Company’s continuous efforts to eliminate or reduce conditions and behaviors that could result in injuries or illnesses. Hammersmith® is committed to the principle that such a safety culture will help maintain employee health, increase productivity, minimize lost work time, and reduce costs.

All employees are responsible for promoting and managing the safety of themselves, their employees, and their work environment. All staff are required to adhere to and comply with Hammersmith® safety policies and training requirements, to be aware of and identify safety issues, and to report all incidents and safety concerns on a timely basis. All staff must bring conditions, behaviors, or practices that create risks for themselves, visitors, or the environment to the attention of their supervisors. Staff suggestions and participation in the resolution of such risks are highly encouraged.

Failure to comply with safety policies and training requirements, inattentiveness in identifying and appropriately responding to a situation that is clearly unsafe, and/or failure to timely report safety concerns and incidents, may result in disciplinary action up to and including termination of employment.

2.12
Weapon Free Policy

To ensure that Hammersmith® maintains a workplace safe and free of violence for all employees, the Company prohibits the possession or use of dangerous weapons on company property.

“Company property” is defined as all company-owned or managed buildings and surrounding areas such as sidewalks, walkways, and driveways under the Company’s ownership or control. Unless this prohibition is contrary to state or local law, the workplace specifically includes company parking areas. This policy applies to all Company-owned or leased vehicles and all vehicles that come onto Company property. “Dangerous weapons” include firearms, explosives, knives and other weapons that might be considered dangerous or that could cause harm, including those for which the holder has a legal permit. Employees are responsible for making sure that any item possessed by the employee is not prohibited by this policy.

As further described below, Hammersmith® reserves the right at any time and at its discretion to search all company-owned or leased vehicles and all vehicles, plus packages, containers, briefcases, purses, lockers, desks, enclosures and persons entering its property, for the purpose of determining whether any weapon is being, or has been, brought onto its property or premises in violation of this policy. Employees who fail to comply with this policy or refuse to promptly permit a search under this policy will be subject to discipline up to and including termination.

2.13
Drug Free / Alcohol Free Policy

The Company follows Federal law with regard to illegal drugs. Hammersmith® considers all Federal Controlled Substances Act Schedule 1 drugs to be “illegal drugs,” whether for non-medical or ostensible medical purpose.

The Company acknowledges that Colorado law permits medical and recreational use of marijuana. Marijuana is considered illegal under Federal law and prohibited under this policy. Any employee using, possessing, or having marijuana in their system, or having drug paraphernalia when reporting to work, undertaking any work for the Company while under the influence of marijuana, or failing to meet our testing requirements will be considered in violation of the Company drug and alcohol policy.

Hammersmith®’s commitment to a safe and productive work environment strictly prohibits the use, sale, transfer, manufacture, distribution, or possession of alcohol, drugs, drug paraphernalia, or controlled substances on Company premises, or while performing work on behalf of the Company, including in any personal vehicles being used for Company business or parked on Company property.

It is Company policy to foster a work environment free from the effects of illegal or non-prescribed drugs, controlled substances, and alcohol. Use of drugs and alcohol impairs employee judgment, which may result in increased safety risks, employee injuries, and poor decision-making.

The Company has a zero-tolerance drug and alcohol policy. Actions/conduct deemed to be a violation of the drug and alcohol policy include:
1. When employees are working, are operating any Company vehicle, are present on Company premises or are conducting Company-related work offsite, they are prohibited from:
A. Using, possessing, buying, selling, manufacturing or dispensing an illegal drug (to include possession of drug paraphernalia),
B. Being under the influence of alcohol or an illegal drug as defined in this policy, and
C. Possessing or consuming alcohol;
2. Testing positive for illegal drugs or alcohol;
3. Refusing to comply with warranted drug/alcohol testing; and
4. Interfering with testing, i.e., adulterating, tampering or otherwise interfering with accurate testing, including failure to obey tester’s instructions.

Employees who violate this policy will be subject to disciplinary action, up to and including termination. Legal action may also be taken depending on the situation.

Company-Sponsored Events with Alcohol
Alcohol may only be consumed at Company-sponsored events when permission is given from the employee’s supervisor. Alcohol should only be consumed in a responsible manner and never in excess.

Furthermore, lawful off-duty alcohol use, while generally not prohibited by this policy, must not interfere with an employee’s job performance.

DUI / DWAI
Employees whose positions with the Company require driving as a part of their work may be removed from such positions or terminated if convicted of driving under the influence of alcohol or other regulated substance whether on or off duty.

Inspections and Searches
The Company wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives or other improper materials. To this end, the Company prohibits the control, possession, transfer, sale or use of such materials on its premises to the extent permitted by applicable law. We require the cooperation of all employees in administering this policy.
Desks, lockers and other storage devices are provided for the convenience of employees but remain the sole property of the Company. Accordingly, they, as well as any articles found within them, can be inspected by any agent or representative of the Company at any time, either with or without prior notice.

In addition, to ensure the safety and security of employees and customers, and to protect our legitimate business interests, we reserve the right to question and inspect or search any employee or other individual entering or leaving company premises or job sites. The inspection or search may include any packages or items that the individual may be carrying, including briefcases, handbags, knapsacks, shopping bags, et cetera. If a non-exempt employee is present during any search or inspection, the employee must report the time spent during the search or inspection as working time.

These items are subject to inspection and search at any time, with or without prior notice. We also may require employees to agree to reasonable inspection of their personal property and/or person while on the job or on the Company’s premises. The individual may be requested to self-inspect their personal property or person by displaying the contents of any packages and/or turning out their pockets, etc., in the presence of a representative of the Company, typically a management employee of the same gender. The Company will not tolerate any employee’s refusal to submit to a search.

Voluntary Treatment
Employees who voluntarily seek help for substance abuse (self-referral) by contacting the Company will be provided an opportunity to pursue counseling and rehabilitation. The Company will make available to these employees information about counseling and rehabilitation services. An employee who is receiving counseling and/or treatment for substance abuse may use available vacation, sick leave, or, if eligible, family and medical leave. Health insurance often covers the costs of such services, but costs not covered must be paid by the employee. The employee cannot return to work until released by a treatment provider to do so, and upon receiving a negative result on a return-to-work drug and/or alcohol test (as appropriate for that individual). In addition, the employee may be asked to submit to follow-up testing for a period following the return to work.

An employee’s decision to seek help voluntarily will not be used as a basis for disciplinary action, although the individual may be transferred, given work restrictions or placed on leave, as appropriate. A request for help is considered voluntary only if it is made before the employee is asked to submit to any drug or alcohol test or is discovered to have otherwise violated this policy.

Absence because of the employee’s use of the substance, rather than for treatment, does not qualify for leave under this policy. Please see Human Resources for more information about leave and Hammersmith® Employee Assistance Program.

Drug/Alcohol Testing Provisions
Post-Accident: An employee must submit to a drug and/or alcohol test after an on-the-job accident regardless of injury to person(s) and/ or damage to property.

An employee who is involved in an accident must immediately report the accident to his/her supervisor or to Human Resources if the supervisor is unavailable. The supervisor will arrange to transport the employee to the collection site and will arrange for the employee’s transport home, if necessary.

Reasonable Suspicion Testing: An employee will be asked to submit to tests for alcohol and/or drug use when the employee is reasonably suspected of being impaired in the performance of his/her job.

Examples of situations in which reasonable suspicion testing may be conducted include, but are not limited to:
• Specific, personal and articulable observations concerning the appearance, behavior, speech and/or performance of the employee;
• Violation of a safety rule or other unsafe work incident, which, after further investigation of employee behavior, leads a supervisor to believe the employee’s functioning is impaired; and
• Other indicators of impairment.

Supervisors are encouraged to use the Reasonable Suspicion Checklist for a list of objective symptoms.

When a supervisor has reasonable suspicion to request testing, the supervisor will arrange to transport the employee to the collection site and will arrange the employee’s transport home, if necessary. The employee will be paid for hours worked.

Prescription and Over-The-Counter Drugs (“Legal Drugs”)
Employees who must use a medically prescribed or over-the-counter drug which is known or advertised as possibly affecting judgment, coordination, or which may adversely affect ability to perform work in a safe and/or productive manner must notify their supervisor or other member of management prior to the start of their shift. When drug(s) are prescribed by a medical professional, the employee shall inquire of the prescribing medical professional whether the drug prescribed has any side effects which may impair the employee’s ability to safely perform his/her job duties. If the answer from the medical professional is yes, the employee shall obtain a statement from the medical professional indicating any work restrictions and their duration. This statement shall be presented to the Company by the Employee immediately and prior to going on duty. Employees are not required to reveal the name of the medication or the underlying medical condition.

The Company reserves the right to obtain a release/opinion from any “designated medical provider” of its choosing as to prescribed medications impact on an employee at any time and base any work/work continuation conditions based upon such opinion to the exclusion of the employees prescribing medical professional.

2.14
Non-Smoking Facility

The Company prohibits smoking marijuana or any other substance that is illegal under federal law or Colorado law anywhere on its premises.

The Company also prohibits smoking in the workplace and within 15 feet of any window, ventilation intake or entrance to the workplace. For purposes of this policy, smoking includes the use of electronic smoking devices (e.g., e-cigarettes or vaping). Employees wishing to smoke must do so outside of company’s facilities, in locations where smoke does not migrate back into the workplace, during scheduled work breaks.

Employees that observe other individuals smoking in the workplace have a right to object and should report the violation to their supervisor or to another member of management or Human Resources. Employees will not be disciplined or retaliated against for reporting smoking that violates Colorado law or this policy.

Employees that violate this policy may be subject to disciplinary action up to and including termination.

Section 3 – Employment Classifications

The Company assigns positions, determines wages and compensates employees for overtime in accordance with state and local laws and the Fair Labor Standards Act.

3.1
Introductory Period Employees

All new employees shall serve an introductory period of 90 days. During this period, Hammersmith® and the employee will have the opportunity to determine whether further employment with the Company is appropriate. Hammersmith® can extend the duration of the introductory period if, in its sole and absolute discretion, it determines that such an extension is appropriate. The employment relationship can be terminated by the employee or the Company at any time during or after the introductory period, with or without cause. It is important to note that during the introductory period the employee will accrue vacation but will not be able to use it until the introductory period is complete, unless state or local law requires otherwise.

Employees who formerly worked for Hammersmith® and who are rehired will be required to complete an introductory period in the same manner as all new employees. If an employee is rehired within three months of the date of his/her termination of employment with the Company, he or she will be given credit for the number of full years of service completed before his or her prior separation from Hammersmith® for purposes of computing his or her length of service for Company-sponsored benefits.

3.2
Exempt Employees

Exempt employees are employees whose job assignments meet specific tests established by the federal Fair Labor Standards Act (FLSA) and state law and who are exempt from minimum wage and overtime pay requirements. Exempt employees are paid on a salary basis and may work beyond their normal work hours whenever necessary to accomplish the work of the Company. Exempt employees are not eligible to receive overtime compensation. Employees should consult their supervisor with any questions or concerns regarding this status.

3.3
Non-Exempt Employees

Non-exempt employees include those who are covered by the overtime provisions of the Fair Labor Standards Act and any applicable state laws. Non-exempt employees are entitled to overtime pay for work in excess of 40 hours in a workweek, or as otherwise required by applicable state law. Non-exempt employees are required to record time worked via the time tracking methods specified by the Company. Paid and approved time off does not constitute hours worked.

3.4
Regular Full-Time and Regular Part-Time Employees

Employees who successfully complete their introductory period are called “REGULAR” employees. Full-time or part-time status depends on the number of hours per week an employee works.

Regular employees who are salaried or are hourly and regularly work 30 hours or more per week are considered full-time and are eligible for Company-sponsored benefits.

Regular employees who earn an hourly wage and who work on average less than 30 hours per week are considered part-time and are eligible for select Company-sponsored benefits.

3.5
Seasonal Employees

Seasonal employees are defined as employees on payroll who are employed by the Company only during specific times of the year. An employee will not change from seasonal status to another status unless specifically informed of such change, in writing, by management. Seasonal employees are ineligible for Company-sponsored benefits.

3.6
Temporary (“Just In Time”) Employees

Temporary employees are defined as those employees on payroll who are holding jobs of limited duration arising out of special projects, abnormal workloads or emergencies. An Employee will not change from temporary status to another status unless specifically informed of such a change, in writing, by management. Temporary Employees are classified as either non-exempt or contract employees and are ineligible for Company-sponsored benefits.

If your status changes from temporary or seasonal to part-time or full-time, you are considered hired on the date you become a full-time or part-time employee for purposes of calculating eligibility for benefits that require a minimum term of employment.

Section 4 – Leave Policies

4.1
Holidays

All employees, except for seasonal and temporary employees, will receive time off with pay at their normal hourly rate for the following eight (8) recognized HMI Holidays:

1. New Year’s Day
2. Memorial Day
3. Independence Day
4. Labor Day
5. Thanksgiving
6. The day after Thanksgiving
7. Christmas Eve
8. Christmas Day

If a holiday falls on a Saturday, it will be observed on the preceding Friday. If a holiday falls on a Sunday, it will be observed on the following Monday.

Regular and Introductory full-time employees are eligible for eight (8) hours of holiday pay benefits.

Regular and Introductory part-time employees are eligible for four (4) hours of holiday pay benefits.

If a full or part time employee must work on a Company recognized paid holiday, they are paid for the time worked, in addition to their holiday pay.

Holiday pay is calculated using the employee’s most recent rate of pay (base pay plus commission, where applicable) at the time the holiday occurs.

To be eligible for holiday benefits, an employee must work the last scheduled workday before and the first scheduled workday after the holiday. Only excused absences will be considered for exceptions to this policy. Employees are not eligible for holiday pay if they’re on a leave of absence.

Sick leave on the workday immediately preceding or immediately following a paid holiday will disqualify an employee for holiday pay unless a physician’s statement of illness is provided.

If a holiday falls during an employee’s scheduled vacation period, the employee will be paid for the holiday and will not be charged with a vacation day for the day the holiday is observed.

Holiday pay is not considered “hours worked” for the purpose of computing overtime pay.

4.2
Vacation Pay

HMI provides paid vacation time to full-time benefits eligible employees to provide rest, relaxation and personal pursuits. Full-time employees begin accruing vacation time upon hire and continue accruing through their introductory period. They earn the accrued vacation time upon successful completion of their introductory period or on the 91st day of continuous employment at HMI. Part-time employees transitioning to full-time employment will begin to accrue and earn vacation as of the effective date to a full-time benefits’ eligible status.

The amount of paid vacation time employees receives each anniversary year increases with the length of their continuous employment at the rate shown in the following semi-monthly payroll period schedule:

Years of Full-time Service (From your first date of continuous full-time employment)	Accrual per Pay Period	Maximum Accrual
First day of hire through the end of the first anniversary year	3.33 hours per pay period	80 hours (10 days)
Start of the second anniversary year through the end of the 5th year of service	5 hours per pay period	120 hours (15 days)
Start of the 6th year of service on	6.66 hours per pay period	160 hours (20 days)

For the purposes of this policy, an anniversary year is defined as the 12-month period when the employee starts to accrue vacation time beginning with their hire date. New employees begin to accrue vacation upon their hire date, but do not earn it until their 91 day of continuous employment. After completing 90 days of continuous service, they will begin accruing and earning vacation each payroll period.

Employees are allowed to carry over any unused earned vacation into a new anniversary year. No employee is eligible to have more than his or her maximum accrual, based on the above schedule at any one time. Once an employee reaches their maximum accrual ceiling, they cease to accrue additional vacation pay. If the employee later uses enough vacation time to fall below the maximum accrual ceiling, the employee starts accruing vacation pay again from that date forward until reaching the maximum accrual ceiling. As a result, the amount of vacation that employees may be granted each anniversary year might be limited by the amount carried over to the new calendar year. We encourage employees to use all of their earned vacation each year.

To take a vacation, employees are required to request and receive approval from their supervisors in advance, ideally at least two weeks. Requests will be reviewed based on a number of factors, including business needs and staffing requirements. If any conflicts arise in requests for vacation time, preference will be given to the employee with the most seniority. The Company does not allow advances of unearned vacation hours.

If an employee terminates employment for more than 30 days, their length of eligible service will be calculated from his or her rehire date.

In the event of termination of employment, all vacation time accrued and earned but not used will be based on an employee’s regular rate of pay calculation at the time of termination. If employment is terminated for any reason before successful completion of the introductory period, accrued vacation time will not be paid to the employee.

Vacation time off will be paid out based on the regular rate of pay calculation at the time of vacation. Vacation time will not accrue during a leave of absence. If a Company paid holiday falls during an employee’s scheduled vacation period, they will be paid holiday pay in lieu of using the additional vacation hours.

Vacation time off is not considered as time worked in the computation of overtime pay.

4.3
Sick Pay and Safe Time

All regular full-time and part-time Employees will earn sick time. Employees begin accruing sick time upon hire. As with holiday and vacation paid time off, sick time is calculated using the Employee’s most recent rate of pay (base pay plus commission, where applicable) at the time the sick pay occurs and does not count as hours worked for the purposes of overtime calculations.

Sick Accrual Rates
• Full-Time Employees = 1 hour for every 30 hours worked
• Part-Time Employees = 1 hour per every 30 hours worked

“Available Sick Time” is defined as those sick time benefits accrued but unused. “Used Sick Time” is defined as sick time benefits paid to the Employee in the form of wage continuation payments while absent from work.

An Employee may use sick leave for the following safety or health needs: (1) a mental or physical illness, injury, or health condition that prevents work, including diagnosis or preventive care; (2) domestic abuse, sexual assault, or criminal harassment leading to health, relocation, legal, or other services needs; (3) has a family member experiencing a condition described in category (1) or (2); or (4) in a public health emergency, a public official closed the workplace, or the school or place of care of the employee’s child.

Sick time may be carried over into the following year but Employees are not allowed to accrue over 48 hours in any given year. Sick time cannot be used for vacation days.

Employees must request and receive approval of sick time in a method specified by HMI from their supervisor as far in advance as possible and cannot be requested in increments of less than one (1) hour. When possible, employees should include the expected duration of the absence in their request for leave. Also, if the use of paid sick leave is foreseeable, the employee must make a good faith effort to provide advance notice of the need for leave and make a reasonable effort to schedule the leave so as to not unduly disrupt the Company’s operations.

An Employee requesting the use of “Available Sick Time” of four or more consecutive days must include satisfactory evidence that the Employee was under the care of a licensed physician (e.g., doctor’s note) or other reasonable documentation. However, at any time a supervisor may request that a note from the physician be provided to Human Resources.

While the Company understands occasional absences from work are a reality, it is expected that the sick time taken will be the minimum necessary. The Company will not tolerate abuse or misuse of sick-leave. In the event of an absence, an Employee should notify the appropriate person as directed by their supervisor via a phone call or text message at least two (2) hours prior to the start of their shift. Excessive absence from work will be documented and will impact the Employee’s annual review and may result in disciplinary action up to and including termination. If an employee fails to contact their supervisor during each day of an absence of three consecutive workdays, they will be considered to have abandoned his/her job and will be terminated.

An Employee leaving the Company under any circumstance will forfeit any available sick time and shall not be entitled to compensation for accrued but unused sick time. Unused sick leave benefits will not be paid out to an employee while they are employed. Employees rehired within six months of separating from employment will have their accrued unused sick time reinstated.

When applicable, sick leave taken under this policy may run concurrently with available FMLA and/or state family medical leave.

For employees working in a jurisdiction that has a mandatory sick leave law or a jurisdiction that defines how sick leave may be used or accrued, the Company will comply with all legal requirements, including providing greater or different benefits than those indicated here. In such a situation, the leave the employee is entitled to under the law may run concurrently with the leave provided under this policy, to the extent permissible under applicable law.

4.3.1
Sick and Safe Time and Public Health Emergency Leave (Colorado Employees)

The Company’s Sick Pay and Safe Time Policy provides paid sick leave that is in at least an amount of hours and with pay sufficient to satisfy the sick and safe time requirements of Colorado’s Healthy Families and Workplaces Act (“HFWA”). Available Sick Time may be used for all the same purposes covered by the HFWA and under all the same conditions as the HFWA.
In addition to the sick time provided under the Sick Pay and Safe Time Policy, the Company will also provide Colorado employees with public health emergency leave (“PHEL”) if a public health emergency (“PHE”) has been declared in accordance with the terms below.

On the day a public health emergency is declared or January 1, 2021 (whichever is later), employees will immediately be able to access a one-time supplement of PHEL in addition to whatever amount of Available Sick Time employees have accrued prior to the declaration of the public health emergency. Employees who normally work forty or more hours in a week shall have access to up to 80 hours of total paid leave. Employees who normally work fewer than 40 hours per week shall have access to paid leave equaling either the amount of time the employee is scheduled to work in the upcoming 14-day period or the amount of time the employee actually worked on average in the 14-day period prior to the declaration of the public health emergency, whichever is greater.

From the declaration of a public health emergency until four weeks after the official termination or suspension of the emergency declaration, PHEL can be used for the following reasons: (1) self-isolating or work exclusion due to exposure, symptoms, or diagnosis of the communicable illness in the PHE; (2) seeking a diagnosis, treatment, or care (including preventive care) of such an illness; (3) being unable to work due to a health condition that may increase susceptibility to or risk of such an illness; or (4) caring for a child or other family in category (1)-(3), or whose school or child care is unavailable due to the PHE.

PHEL will become available on the date a public health emergency is declared and will remain available until four weeks after the official termination or suspension of the public health emergency. When the need for PHEL is foreseeable and the workplace has not been closed, employees must notify the Company of the need for PHEL as soon as practicable. To provide notice of the need to use PHEL, employees should contact their Human Resources representative.

For more information, please refer to the Paid Leave, Whistleblowing, & Protective Equipment Poster annexed as Appendix A to this policy.

4.4
Bereavement Leave

In the event of the death of an immediate family member (parent, sibling, current spouse, child, stepchild, current parent-in-law, grandchild, grandparent, “significant other” or other relative residing in household), a regular full-time Employee will be eligible for up to three (3) days off with pay at his or her regular rate of pay to attend the funeral. Employees are required to notify HMI of the purpose of his or her absence not later than the first day of such absence. When requested, proof satisfactory to the Company may be required. Time off in excess of three (3) days is available only upon the prior written approval of management. Funeral leave with pay may be granted a maximum of two (2) times per year. This does not preclude Employees from having time off for such leave without pay.

Bereavement pay is calculated based on the base pay rate at the time of absence and will not include any special forms of compensation, such as incentives, commissions, bonuses, or shift differentials.

4.5
Voting Leave

Voting is an important responsibility we all assume as citizens. HMI encourages Employees to exercise their voting rights in all municipal, state and federal elections. Under most circumstances, it is possible for Employees to either vote before or after work. If it is necessary for Employees to arrive late or leave work early to vote in any election, Employees should arrange with their supervisor no later than the day prior to Election Day.

In accordance with Colorado state law, Employees who have three (3) or more non-work hours available during the hours polls are open (typically 7:00 a.m. to 7:00 p.m.) on election day are not entitled to time off to vote. Upon prior request (before election day) by the Employee, employers must provide up to two (2) hours of paid time off to vote if the Employee does not have three (3) or more non-work hours between 7:00 a.m. and 7:00 p.m.

4.6
Jury Duty

The Company encourages all employees to fulfill their civic responsibilities and to respond to jury service summons or subpoenas, attend court for prospective jury service or serve as a juror.
Under no circumstances will employees be deprived of any benefits of employment, terminated, threatened, harassed, or coerced because they request or take leave in accordance with this policy.

Employees receive regular pay for the first five days of jury duty if they were scheduled to work and a juror service certificate is submitted. This includes part-time, casual and temporary employees, so long as their employment hours can be determined by a schedule, custom or practice established during the three-month period preceding jury service. Any additional time off under this policy will be without pay, except that exempt employees will not incur any reduction in pay for a partial week absence due to jury duty.

Employees seeking compensation for jury duty leave must provide a juror service certificate from the court as soon as practical. The Company will compensate the employee in accordance with this policy within 30 days of receiving the service certificate.

Employees should provide their supervisor with notice of any jury summons or subpoena within a reasonable amount of time after receipt and before their appearance is required.

Paid time off for jury duty is not considered as time worked in the computation of overtime pay. Vacation, sick leave, and holiday benefits will continue to accrue during jury duty leave.

4.7
Unpaid Leaves of Absence

FAMILY MEDICAL LEAVE ACT (FMLA)

The Company will grant family and medical leave in accordance with the requirements of applicable federal and state law in effect at the time the leave is granted. Although the federal and state laws sometimes have different names, the Company refers to these types of leaves collectively as “FMLA Leave.” In any case, employees will be eligible for the most generous benefits available under applicable law.

Eligibility Requirements
In general, Employees are eligible if they have worked for HMI for at least 12 months, for 1,250 hours over the previous 12 months, and if they work at a location with at least 50 Employees within 75 miles. Eligibility requirements may differ for employees who have been on a protected military leave of absence. If employees are unsure whether they qualify, they should contact Human Resources.

The Family and Medical Leave Act (“FMLA”) provides eligible Employees the opportunity to take unpaid job-protected leave for certain specific reasons. The maximum amount of leave an Employee may use is either 12 or 26 weeks within a 12-month period depending on the reason for the leave:

1. An Employee’s serious health condition (up to 12 weeks);
2. Birth or adoption of a child (up to 12 weeks);
3. To care for an immediate family member (spouse, civil union partner, child, or parent) with a serious health condition (up to 12 weeks);
4. To care for an immediate family member who is in the uniformed services (up to 26 weeks);
5. To handle certain qualifying exigencies arising out of an immediate family member’s active duty or call to covered active duty in the uniformed services (up to 26 weeks).

An Employee does not need to use this leave entitlement in one block. Leave can be taken intermittently or on a reduced leave schedule when medically necessary or for qualifying exigencies. Employees must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt HMI operations.

This is an overview of Employee rights under the Family Medical Leave Act. Federal law oversees Employers’ requirements under this Act. Details regarding Employee rights and responsibilities, as well as HMI’s responsibilities under this Act can be found on the Company’s intranet.

Benefits and Protections
During FMLA leave, HMI maintains the Employee’s health coverage under any group health plan on the same terms as if the Employee had continued to work. Employees must continue to pay their portion of any insurance premium while on leave. Upon return from FMLA leave, most Employees are restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. However, employees have no greater right to reinstatement than if they had been continuously employed rather than on leave. For example, if an employee would have been laid off if they had not gone on leave or, if the employee’s position was eliminated during the leave, then the employee will not be entitled to reinstatement.

Unlawful Acts by Employers
FMLA makes it unlawful for any employer to:

• interfere with, restrain, or deny the exercise of any right provided under FMLA; and
• discharge or discriminate against any person for opposing any practice made unlawful by FMLA or for involvement in any proceeding under or relating to FMLA.

Payment During Leaves of Absence
Unless otherwise noted above, all leaves of absence are unpaid. Employees must use available accrued sick time and vacation time while on a leave of absence. All payments of wage-replacement benefits and accrued paid leave will be integrated so that employees will receive no greater compensation than their regular compensation during this period. The use of paid time during FMLA leave time does not extend the length of the leave and the paid time will run concurrently with an Employee’s FMLA entitlement. As long as Employees are receiving paid time off through HMI, they will continue to accrue leave benefits. This ceases once time off goes unpaid through HMI. Employees receiving paid disability benefits (including but not limited to workers’ compensation and state disability benefits) are not required to use accrued paid time while taking FMLA leave or Military Leave. However, upon request, HMI may allow Employees to use accrued paid time to supplement any paid disability benefits.

FMLA leave does not affect the Employee’s eligibility, if any, for short or long term disability payments and/or workers’ compensation benefits under those insurance plans. Leaves of absence taken in connection with a disability leave plan or workers’ compensation injury/illness shall run concurrently with any FMLA leave entitlement.

Employee Responsibilities
Employees must provide 30 days advance notice of the need to take FMLA leave when the need is foreseeable. When 30 days’ notice is not possible, the employee must provide notice as soon as practicable and generally must comply with the Company’s normal call-in procedures.
Employees must provide sufficient information for the Company to determine if the leave may qualify for FMLA protection and the anticipated timing and duration of the leave. Sufficient information may include that the employee is unable to perform job functions, the family member is unable to perform daily activities, the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting the need for military family leave. Employees also must inform the Company if the requested leave is for a reason for which FMLA leave was previously taken or certified.

Employees also may be required to provide a certification and periodic recertification supporting the need for leave. Periodic recertification will not be required when the need for leave is due to pregnancy.

The Company may require second and third medical opinions at the Company’s expense regarding the employee’s own serious health condition or the serious health condition of the employee’s family member. Documentation confirming family relationship, adoption, or foster care may be required. If notification and appropriate certification are not provided in a timely manner, approval for leave may be denied. Continued absence after denial of leave may result in disciplinary action in accordance with the Company’s attendance guideline. Employees on leave must contact the Human Resource Generalist at least two days before their first day of return.

The Company’s Responsibilities
The Company will inform employees requesting leave whether they are eligible under FMLA. If they are, the notice will specify any additional information required as well as the employees’ rights and responsibilities. The Company will provide a reason for the ineligibility if they are not eligible.

The Company will inform employees if leave will be designated as FMLA-protected and the amount of leave counted against the employee’s leave entitlement. If the Company determines that the leave is not FMLA-protected, the Company will notify the employee.

Fraudulent Use of FMLA Prohibited
An employee who fraudulently obtains Family and Medical Leave from the Company is not protected by FMLA’s job restoration or maintenance of health benefits provisions. In addition, the Company will take all available appropriate disciplinary action against such employee due to such fraud.

Nondiscrimination
The Company takes its FMLA obligations very seriously and will not interfere, restrain or deny the exercise of any rights provided by the FMLA. We will not terminate or discriminate against any individual for opposing any practice, or because of involvement in any proceeding related to the FMLA. If an employee believes their FMLA rights have been violated in any way, they should immediately report the matter to Human Resources.

Additional Information Regarding FMLA
A Notice to Employees of Rights Under FMLA (WHD Publication 1420) is attached to this Handbook.

Employees should contact Human Resources as to any FMLA questions they may have.

State Law
A number of states have family leave laws that provide leave benefits which exceed those available to employees under the FMLA. Employees should contact Human Resources for additional information.

PERSONAL LEAVE OF ABSENCE

Employees may request a personal leave of absence without pay for a reasonable period of time up to thirty (30) days. The leave may be extended for a reasonable period of time up to an additional thirty (30) days due to special circumstances, as determined by management on an individual basis. A personal leave of absence may only be requested once all other leave balances have been exhausted. Requests for leaves of absence will be considered on the basis of the Employee’s length of service, performance, responsibility level, the reason for the request, whether other individuals are already out on leave, and the expected impact of the leave on the Company and clients. Requests must be submitted in writing to an Employee’s department manager and Human Resources. Approval is needed prior to a personal leave of absence and is at the discretion of management. This does not guarantee position reinstatement on return.

MILITARY LEAVE

Federal law provides employees with the right to take leave in order to serve in the military. At the federal level, military leave rights are governed by the Uniformed Services Employment and Reemployment Rights Act, commonly referred to as USERRA. This policy discusses military leave under USERRA.

State laws may also provide an employee with rights to take military leave. If the employee works in a state that provides rights in addition to those provided under USERRA, the Company will provide those rights. If an employee plans to request leave based on military service, they should contact Human Resources for information on any additional rights or requirements, if applicable, under state law.

Eligibility for Leave
The Company provides unpaid military leaves of absence to employees who serve in the uniformed services as required by USERRA and applicable state laws. The uniformed services are defined as the Army, Navy, Marine Corps, Air Force, Coast Guard, Army National Guard, Air National Guard, Commissioned Corps of the Public Health Service and any other category of persons designated by the President of the United States in time of war or national emergency. The uniformed services also include participants in the National Disaster Medical System when activated to provide assistance in response to a public health emergency, to be present for a short period of time when there is a risk of a public health emergency, or when they are participants in authorized training.

Service consists of performing any of the following on a voluntary or involuntary basis: active duty, active duty for training, initial active duty, inactive duty training, full time National Guard duty, absence from work for an examination to determine fitness for such duty, and absence for performing funeral honors duty. Total military leave time may not exceed five years during employment, except in certain, defined circumstances.

Notice of Leave
Advance notice of leave is required, preferably in writing, unless giving of notice is impossible or unreasonable, or notice is prohibited by military necessity (which is defined by the United States Department of Defense). When notice is required, employees must provide their supervisor with as much advance notice as possible of any anticipated leave of absence for military service.

Compensation and Benefits During Leave
Accrued, unused vacation or PTO will be paid during military leave at the employee’s request. After 30 days of continuous military leave, employees may elect to continue their health plan coverage at their own expense, for up to 24 months or during the remaining period of service, whichever is shorter.

Reinstatement
In order to be eligible for reinstatement, an employee must have provided advance notice of the need for military leave (where required) and have completed service on a basis that is not dishonorable or otherwise prohibited under USERRA.

Employees whose military service will be for fewer than 31 days must report to back to work at the beginning of the first full, regularly scheduled workday following completion of service, after allowing for a period of safe travel home and eight hours of rest.

Employees whose military service will be for more than 30 days, but fewer than 181 days must apply for re-employment within 14 days after completing service.

Employees whose service is greater than 180 days must apply for re-employment within 90 days after completing service.

As with other leaves of absence, failure to return to work or to reapply within applicable time limits may result in loss of reemployment rights. Full details regarding reinstatement are available from Human Resources.

In general, an employee returning from military leave will be re-employed in the position and seniority level that the employee would have attained had there been no military leave of absence. If necessary, the Company will provide training to assist the employee in the transition back to the workforce.

Vacation benefits do not continue to accrue during a military leave of absence. An employee returning from military leave is entitled to any unused, accrued vacation benefits the employee had at the time the military leave began minus any vacation benefits the employee chose to use during the leave. Upon reinstatement, the employee will begin to accrue vacation benefits at the rate they would have attained if no military leave had been taken.

In addition to the above, regular full-time and part-time employees who are members of the Colorado National Guard are entitled to an unpaid leave of absence to perform active state service.

Regular full-time and part-time employees who are members of the Colorado National Guard or United States armed forces reserves may take up to 15 days of unpaid leave per calendar year for military training with the United States armed forces.

Upon return from active state service or military training, employees will be reinstated to their former position or to a position of like seniority, status and pay, so long as they:

• Had a non-temporary job before taking leave;
• Provide evidence that training or service was satisfactorily completed; and
• Are still qualified to do the job.

Absence for military service or training will not affect an employee’s rights to receive normal vacation, sick leave, bonuses, advancement or other advantages of employment that would otherwise be expected for the employee’s particular job.

CIVIL AIR PATROL LEAVE

Regular full-time and part-time employees who are members of the Civil Air Patrol are entitled to an unpaid leave of absence, not to exceed 15 workdays in any calendar year, when called to serve on a Civil Air Patrol mission.

Upon return from the leave, employees will be reinstated to their former position or to a similar position, so long as they:

• Had a non-temporary job before taking leave;
• Return as soon as practicable to their position after being relieved from service for the mission;
• Provide evidence that the service was satisfactorily completed; and
• Are still qualified to do the job.

Absence for Civil Air Patrol service will not affect employee rights to receive normal vacation, sick leave, bonuses, advancement or other advantages of employment that would otherwise be expected for the employee’s particular job.

VOLUNTEER FIREFIGHTERS LEAVE

Employees who serve as volunteer firefighters may take time off to respond to an emergency summons that occurred prior to the time the employee is scheduled to report to work.

Employees who serve as volunteer firefighters will also be allowed time off to respond to an emergency summons after the employee has begun work, if:

• The Company does not consider the employee to be essential to the daily operations of the employer’s daily enterprise;
• The employee previously provided written verification of volunteer status from the fire chief; and
• The emergency is within the response area of the employee’s fire department and is of such magnitude that all firefighters must respond.

Employees must provide written verification from the fire chief of the time, date and duration of the employee’s response to the emergency.

Time off under this policy will be unpaid except that exempt employees may be paid, as required by law.

QUALIFIED VOLUNTEERS LEAVE

Regular full-time and part-time (i.e., non-temporary) employees who are qualified volunteers will be allowed time off if called into service by a volunteer organization during a disaster, so long as they provide proof of their status as a qualified volunteer. For purposes of this policy, employees will be considered a qualified volunteer if the:

• Employee is a member of a volunteer organization that enters into a memorandum of understanding with a county sheriff, local government, local emergency planning committee or state agency;
• Volunteer organization is included on the qualified volunteer organization list created and maintained by the Department of Local Affairs;
• Employee is called to service through the volunteer organization under the authority of the county sheriff, local government, local emergency planning committee, or state agency to volunteer in a disaster; and
• Employee receives the appropriate verification from the Colorado Department of Local Affairs that: (a) indicates the volunteer was called to service by a volunteer organization for the purpose of assisting in a disaster; (b) verifies the volunteer reported for service and performed the activities required by the volunteer organization; and (c) includes the number of days of service that the volunteer provided.

Leave under this policy will not exceed 15 workdays in any calendar year and will be unpaid. Employees will, upon completion of the volunteer emergency service and return to work, be restored to the same or similar position as they held prior to the leave. Taking leave under this policy will not affect an employee’s rights to vacation, sick leave, bonus, advancement or other employment benefits or advantages relating to and normally to be expected for the employee’s particular employment.

Employees must return to their employment position as soon as practicable after being relieved from service.

Leave may be denied if more than 20 percent of the Company’s employees on any workday request such leave. Leave may also not be available for essential employees, defined as those employees the Company deems essential to the operation of the Company’s daily enterprise, whose absence would likely cause the Company to suffer economic injury, or whose duties including assisting in disaster recovery for the Company.

DOMESTIC ABUSE LEAVE

Employees who are victims of domestic violence, including sexual abuse, stalking, sexual assault or any other crime including an act found by a court to be domestic violence, may take up to three working days of unpaid leave time within a 12-month period. Only employees employed with the Company for 12 or more months are eligible for this leave.

Employees may use leave available under this policy to:

• Seek a civil protection order to prevent domestic abuse;
• Obtain medical care and/or medical health counseling for the employee or the employee’s children to address physical or psychological injuries resulting from the act of domestic abuse, stalking, sexual assault or other crime involving domestic violence;
• Make the employee’s home secure from the perpetrator of the crime or seek new housing to escape the perpetrator; or
• Seek legal assistance to address issues arising from the crime and attend and prepare for court-related proceedings arising from the act or crime.

Except in a case of imminent danger, an employee seeking leave from work under this policy must provide the Company with advance notice of the leave. In addition, the Company may require the employee to provide documentation verifying the need for the leave.

Confidentiality of the situation will be maintained to the extent possible.

The Company will not retaliate or tolerate retaliation against any employee who seeks or obtains leave under this policy.

VICTIMS OF CRIME AND WITNESS LEAVE

Employees may take time off from work for the purpose of responding to a subpoena to testify in a criminal proceeding or to participate in the preparation of a criminal proceeding, if:

• The employee is a victim of the crime at issue in the proceeding;
• The employee is the crime victim’s spouse, child by birth or adoption, stepchild, parent, stepparent, sibling, legal guardian or significant other (i.e., someone in a family-type living arrangement, who would constitute the spouse or partner of the victim if they were married); or
• The victim is deceased or incapacitated and the employee is the victim’s spouse, partner, parent, child, sibling, grandparent, significant other or other lawful representative.

Employees, who are in custody for the crime, accused of the crime or otherwise accountable for the crime, are not eligible for time off under this policy.

Leave under this policy will be unpaid except that exempt employees will not incur any reduction in pay for a partial week absence due to witness duty.

4.8
Break Time for Nursing Mothers

The federal Fair Labor Standards Act (FLSA) and the Workplace Accommodations for Nursing Mothers Act allows employees to take reasonable, unpaid break time to express breast milk as needed for up to two (2) years after the birth of a child. The Company will provide a place for the employee to express breast milk, other than a bathroom, that is shielded from view and free from intrusion from co-workers and the public. The Company will make reasonable efforts to provide a private location in close proximity to the work area where the employee can express breast milk.

The Company will otherwise treat lactation as a pregnancy-related medical condition and address lactation-related needs in the same manner that it addresses other non-incapacitating medical conditions, including requested time off for medical appointments, requested changes in schedules and other requested accommodations.

Employees should discuss with Human Resources the location for storage of expressed milk. In addition, employees should contact Human Resources during their pregnancy or before their return to work to identify the need for a lactation area.

For employees working in a jurisdiction that has a mandatory lactation accommodation law, the Company will comply with all legal requirements, including providing greater or different benefits than those indicated here.

The Company reserves the right to not provide additional break time or a private location for expressing breast milk if doing so would substantially disrupt the Company’s operations.

The Company will not demote, terminate or otherwise take adverse action against an employee who requests or makes use of the accommodations and break time described in this policy.

4.9
Communicable Disease

A communicable disease is a disease that can be transmitted from one individual to another via: (1) direct physical contact, (2) the air (cough, sneeze or inhaled particle), (3) through a transmission vehicle (either ingested or injected) or (4) through a vector (animals or insects). Examples of some of the most common communicable diseases include measles, influenza, viral hepatitis-A (infectious hepatitis), viral hepatitis-B (serum hepatitis), human immunodeficiency virus (HIV), AIDS, AIDS – related complex (ARC), leprosy, Severe Acute Respiratory Syndrome (SARS) and tuberculosis (TB). This definition may be broadened in accordance with the recommendations and information provided from the Centers for Disease Control and Prevention (CDC).

The Company will make decisions involving those with communicable diseases based on medical information concerning the disease in question, the risks of transmission to others, symptoms and any special circumstances of the individuals involved. The Company will weigh potential risks and available alternatives before making any decisions.

Reporting Procedure
Those employees who demonstrate signs or symptoms of a communicable disease that poses a credible threat of transmission in the Company workplace should report that potential infection or disease immediately to the Human Resources department. The employee is then responsible for keeping The Company informed of his or her condition that may require extended care, missed work, etc. The employee may also be required to provide written documentation from a physician to return to the worksite.

Hiring and Employment
The Company will not discriminate against job applicants or employees with a communicable disease. These individuals will not be denied access to the worksite solely because they have a communicable disease, but may be excluded from company facilities, programs and functions if the Company determines that restriction is necessary to protect the welfare of the infected individual or the welfare of others.

The Company will comply with all applicable statutes that protect the privacy of individuals with communicable diseases.

Abuse of this policy will result in disciplinary action up to and including termination. The Company reserves the right to revise this policy without notice during changing pandemic conditions.

4.10
Contagious Illness

The Company realizes that employees with contagious temporary illnesses, such as influenza, colds and other viruses, need to continue with normal life activities, including working. However, we also seek to maintain a healthy workplace for our employees and customers.

In deciding whether an employee with an apparently short-term contagious illness may continue to work, the Company considers several factors. The employee must be able to perform normal job duties and meet regular performance standards.

In the judgment of the Company, the employee’s continued presence must pose no risk to the health of the employee, other employees or customers. If an employee disputes the Company’s determination that a risk exists, the employee must submit a statement from his or her attending health care provider that the employee’s continued employment poses no risk to the employee, other employees or customers.

Supervisors are encouraged to remind employees that the Company provides paid leave to cover absences due to contagious temporary illness. If an employee has exhausted all of his or her paid leave, the employee may be eligible for an unpaid leave. All employees are urged to contact Human Resources with questions about the possible contagious nature of another employee’s temporary illness.

Section 5 – Company Benefits

HMI offers Employees and eligible family members a comprehensive and valuable benefits program which includes a range of benefits from medical, dental and vision coverage to Long Term Disability, Short-term Disability, Group Life and AD&D and 401(k).

5.1
Health and Wellness Benefits

HMI offers all Regular Full-Time Employees the opportunity to participate in medical, dental, vision, Long Term Disability and Group Life and AD&D upon eligibility. If an employee declines to participate in these programs on their initial eligibility date, they may request entry into the plan during Open Enrollment or Special Enrollment or “qualifying event.” An Employee becomes eligible on the first of the month following 2 full months of employment with the Company. The cutoff to enroll in benefits is the last day of the month prior to eligibility.

Example: Employee starts with the Company on July 6th; they would be eligible for benefits on October 1st and would need to enroll in benefits during the month of September.

Employees will receive an enrollment packet of information prior to their eligibility date. Additionally, after initial eligibility employees may only change their benefit elections during an Open Enrollment period or in the event of a “qualifying event.” Please see Human Resources for more information regarding qualifying events.

The cost of this benefit program will be paid in part by the Company and in part by the Employee. The Employee’s contribution will be deducted through payroll. This deduction may be made on a pre-tax basis in conjunction with the Federal guidelines regarding Section 125 of the Internal Revenue Code. On an annual basis as insurance is renewed, the premium paid both by HMI and the Employee and plans offered are subject to change at the discretion of HMI. Please refer to each plan’s Summary Plan Description for an explanation of the plan benefits and limitations.

5.2
Notice of the Right to Continue Health Insurance under COBRA

On April 7, 1986, a Federal law was enacted (Public Law 99-272, Title X) requiring that most employers sponsoring group health plans offer Employees and their families the opportunity for a temporary extension of health coverage (called “continuation coverage”) at group rates in certain instances where coverage under the plan would otherwise end. Additionally, the Tax Reform Act of 1986 (Public Law 99-514) makes a number of technical amendments to the continuation coverage provisions. For further information on Employee rights and obligations under the continuation coverage provisions of the new law, known as the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”), please contact Human Resources.

Under provisions of COBRA, insured Employees and the insured dependents of active or retired Employees, may apply to continue HMI’s medical, dental and/or vision group insurance coverage if they lose normal eligibility as a result of any of these “qualifying events”:

1. Termination of employment or loss of eligibility;
2. Divorce or legal separation from insured Employee;
3. Cessation of eligibility as a “dependent child”;
4. Loss of dependent coverage when Employee became entitled to Medicare Benefits;
5. Death of an Employee; or,
6. Reduction in work hours below the minimum required to participate in the plan.

The maximum period for continuation depends upon the qualifying event. If an Employee has the right to continue group coverage, the insured will be required to pay the full cost of the insurance.

5.3
401(k) Retirement Plan

Regular full-time and part-time Employees are eligible to participate in the Company 401(k) Plan and Trust following 2 months of employment and if they are age 21 or older. We offer both 401(k) and Roth 401(k) options to which an Employee may contribute a percentage of his/her compensation to the plan each paycheck. The 401(k) plan is in compliance with ERISA Section 404(c). Employees are automatically enrolled in the Company 401 (k) plan once the eligibility date is reached, but have the ability to opt out of participating if desired. Please contact Human Resources for further details.

5.4
Employee Assistance Program (EAP)

HMI provides confidential and voluntary assistance through its Employee Assistance Program (EAP) to all Employees and their family members who may be faced with dynamic challenges of financial concerns, legal issues, alcohol or drug problems, marital problems, illness of a family member, emotional worries, childcare problems, etc. For the welfare of Employees as well as for effective business operations, HMI encourages its Employees to take advantage of this valuable benefit of employment with the Company. Please contact Human Resources for more information on this benefit.

5.5
Worker’s Compensation Program

The Company carries Worker’s Compensation Insurance coverage as required by law to protect Employees who are injured on the job. The insurance provides medical, surgical, and hospital treatment in addition to payment for loss of earnings that result from work-related injuries. Compensation payments begin from the first (1st) day of an Employee’s hospitalization or after the fourth (4th) day following the injury if an Employee is not hospitalized. In this scenario, the Employee will be paid compensation for the first four (4) regularly scheduled workdays based on Employee’s normal working schedule. The cost of this coverage is paid completely by the Company and is always paid in accordance with applicable state law.

If an Employee is injured while working, it must be reported immediately to management, regardless of how minor the injury may be. You must obtain any necessary medical treatment, fill out and accident report, regardless of the severity of the injury and if additional medical treatment is needed, obtain your supervisor’s consent before leaving the premises.

Treatment for on-the-job injuries must be obtained from one of the physical locations to which the Company directs Employees or else an employee may be responsible for the cost of medical treatment. However, in the event of a life or limb-threatening emergency, the employee will be sent to the nearest emergency facility.

If there are any questions regarding the Workers’ Compensation Insurance program, please contact Human Resources.

The Company will notify the workers’ compensation insurance company if we have reason to believe an employee has supplied false or misleading information in connection with a claim and/or has filed a fraudulent claim. Workers’ compensation fraud is a crime and may also be grounds for disciplinary action, up to and including termination of employment.

Section 6 – Company Policies and Procedures

6.1
Code of Business Conduct and Ethics

Hammersmith Management is firmly committed to complying with its legal and ethical obligations under all state and federal laws. As a result, we expect all Employees, at every level within the Company, to comply strictly with all legal and ethical obligations. Our philosophy can be implemented only if our Employees recognize their responsibility to treat everyone in an honest and fair manner. Accordingly, an Employee’s failure to fulfill his or her responsibilities under this policy may result in disciplinary action, up to and possibly including immediate termination.

HMI holds all Employees responsible for carrying out and monitoring compliance with this commitment. If any Employee becomes aware of any violation of a legal or ethical obligation, or any unfair or improper treatment of a customer, the Employee must immediately report the matter to Human Resources so that it can be investigated right away. In this manner, we can take all necessary steps to investigate any potential violations of our policy and can take appropriate action to correct any violations or incorrect perceptions that are found to exist. By making it the responsibility of all Employees to police compliance with our strict ethical standards and commitment to complying with all legal responsibilities, we can continue to maintain our reputation in the community.

Employees should feel free to report any information regarding this policy without fear of reprisal or retaliation of any kind. Employees can report information to the Human Resources Department in confidence if they wish. HMI will treat such information as confidential to the extent it can do so without failing to fulfill its legal obligations. In addition, Employees who do not wish to identify themselves can report information anonymously.

Guidelines:

Do’s

• Perform your work objectively and effectively.
• Deal fairly, honestly and ethically at all times and with all people.
• Make decisions regarding vendors based upon quality and value.
• Foster appropriate relationships.
• Report to your supervisor lunches, meals and golf that you are invited to.
• Encourage vendors to participate in Company programs (i.e., Golf Tournament, Sponsorships, etc.).
• Tell a vendor who offers a gift that it must go through our Company Relationship Coordinator (CRC) and that it must be accessible to every team member that serves our clients, and further that the CRC will distribute the gift.
• Protect the Company’s Assets.
• Report violations of Ethical Standards.
• Comply with all laws, both in letter and in spirit.
• Ask first, act later.

Don’ts

• Don’t accept a gift, cash, gift card, tickets etc. from a vendor.
• Don’t take advantage of a vendor by accepting lunch, dinner and golf invitations excessively.
• Don’t give anyone favorable treatment because of anything other than their value to our clients.
• Don’t disclose confidential information except when authorized.
• Don’t work for a competitor, customer, supplier, vendor, etc. while working for the Company.
• Don’t act first and ask later in matters of Ethics and Business Conduct.

6.2
Conflicts of Interest

All employees have a duty to further the Company’s aims and goals, and to work on behalf of its best interest. Employees should not place themselves in a position where their actions or personal interests may be in conflict with those of Hammersmith Management, Inc. Examples include: soliciting or profiting from the Company’s client or prospect base or other company asset for personal gain; acting on behalf of Hammersmith Management, Inc. in servicing or obtaining a client, and limiting the best solution for the client or prospect for personal financial gain; and acting as director, officer, employee or otherwise for any business or institution with which Hammersmith Management, Inc. has a competitive or significant business relationship without the written approval of the Chief Executive Officer.

Employees should report to their manager any situation or position (including outside employment by an employee or any member of an employee’s immediate household) which may create a conflict of interest with Hammersmith Management, Inc.

6.3
Dress Code

Dress, grooming, and personal cleanliness standards contribute to the morale of all employees and affect the business image that Hammersmith® presents to its clients. During business hours, employees are expected to present a clean, safe and neat appearance and to dress appropriate to the work situation. Office dress can be casual. However, torn jeans or other torn clothing and tee shirts with inappropriate verbiage or pictures are not appropriate casual attire. Employees should dress for client facing meeting in appropriate business attire. Tattoos and piercings other than ears must not be visible during business hours.

Care should be taken when applying scented perfumes, powders and colognes to be considerate of those persons sensitive to strong odors.

Note: An Employee who reports to work improperly dressed will be subject to disciplinary action and may be sent home and directed to return to work promptly in proper attire. Employees will not be compensated for their time away from work.

6.4
Employee Pay

Paydays

Employees are paid twice a month, on the 10th and 25th. The 1st through 15th workdays of the month are paid on the 25th and the 16th through the last day of the month are paid on the 10th. The workweek starts at 12:01 A.M. Monday morning and ends at 12:00 Midnight on Sunday night. The normal workweek schedule is forty (40) hours. If the 10th or 25th fall on a weekend or holiday, the Employee will be paid on the last regular business day prior to the weekend or holiday.

Direct Deposit

HMI encourages all Employees to participate in direct deposit to the financial institution of their choice to ensure there is no delay in receiving their paycheck. Employees who do not elect direct deposit may choose to either pick up their check at the Inverness office or at the nearest HMI satellite office (Loveland, Colorado Springs). HMI has no control over the USPS mail delivery; therefore, if an Employee does not receive his or her check as expected, the Company will not start the process of voiding and reissuing a paycheck until at least five (5) business days after the check date has elapsed. If the check is not delivered within five (5) business days, the Employee may request a replacement paycheck and will be responsible for any stop payment and reissuing fees associated with the creation of a new paycheck.

Payroll Errors

The Company takes every precaution to avoid payroll errors. In the event that an error occurs, the Employee is to notify their supervisor immediately, so that it can be investigated. If a correction is needed payroll will make the adjustment on the Employee’s next paycheck. If the Company discovers an error, it will be communicated to the Employee and adjusted accordingly in a timely fashion. The Company complies with all applicable laws, including the Fair Labor Standards Act, and will not allow any form of retaliation against individuals who make good faith reports of alleged violations of this policy, or who cooperate in an investigation by the Company, even if the reports do not reveal any errors or wrongdoing.

Discussion of Wages

No employee is prohibited from inquiring about, disclosing, comparing or otherwise discussing their wages. The Company will not terminate, discipline, coerce or otherwise discriminate against employees because they make such inquiries, disclosures, comparisons or otherwise engage in such discussions of their wages.

6.5
Wage Attachments

In the event the Company is served notice of garnishment of an Employee’s earnings, Human Resources will provide a copy of the notice to inform the Employee. HMI is required by law to comply with wage garnishments until an official notification of release is received or the balance is paid in full.

6.6
Payroll Deductions

As required by law, the Company will make certain deductions from the Employee’s paychecks, including those for Federal income tax, State income tax, city occupational privilege tax and social security tax. Other deductions such as those for health insurance, 401(k), etc., can only be made at the specific written approval by the Employee. Additional deductions may take place that are not part of the regular payroll processing. These may include reimbursement to the Company for paid trainings, lost or destroyed building access cards, etc. These deductions are not reoccurring and will be discussed with the Employee prior to them being process in payroll. The amount of all deductions will be listed on the employee’s pay stub.

6.7
Employee’s Responsibility to Update Information

It is the responsibility of each Employee to inform Human Resources of any changes in dependents (such as spouse, children born or adopted or children who reach 19 years of age, 25 years of age if a full-time student), as well as any changes in the Employee’s home address, telephone number and emergency contacts. Keeping this information updated is crucial for the proper administration of benefits and to the timeliness of notices and other correspondence to the Employee.

6.8
Hours of Work / Breaks

Hours of Work

Company offices are normally open for business from 8:00 A.M. to 5:00 P.M., Monday through Friday, with the exception of Holidays. Although the official workweek will vary based upon the business operations and site location, the basic day of work for full-time Employees is eight hours, exclusive of the meal period. Various factors, such as workloads, operational efficiency, and staffing needs, may require variations in an Employee’s work week, start and end times, and total hours worked each day or each week. The Company reserves the right to assign Employees to jobs other than their usual assignments when required. In addition, Employees may be required to work overtime or hours other than those normally scheduled whenever necessary. All overtime must be approved in writing by management.

All non-exempt Employees are required to use the Company timekeeping system to record all hours worked. Altering, falsifying, tampering with time records or systems, or recording time on another Employee’s time record will result in disciplinary action, up and including termination.

Lunch Break

It is the Company’s policy to comply with all laws regarding meal and rest breaks. Employees shall be entitled to an uninterrupted and ‘duty free’ meal period of at least a thirty-minute duration when the scheduled work shift exceeds five consecutive hours of work. The Employees must be completely relieved of all duties and permitted to pursue personal activities to qualify as a non-work, uncompensated period of time. When the nature of the business activity or other circumstances exist that makes an uninterrupted meal period impractical, the Employee shall be permitted to consume an “on-duty” meal while performing duties. Employees shall be permitted to fully consume a meal of choice “on the job” and be fully compensated for the “on-duty” meal period without any loss of time or compensation.

Break Periods

One ten (10) minute break period in each four (4) hour work period is provided for all Employees. Break periods are provided on Company paid time. Employees are expected to remain on Company premises during the break and to return to work promptly at the end of the break period. Staggered break periods may be necessary in certain departments.

6.9
Compensatory Time Off

Exempt Employees

Exempt Employees are paid a fixed salary that is intended to cover all of the compensation to which they are entitled. Because they are exempt, such Employees are not entitled to additional compensation for extra hours of work or time off in lieu of additional compensation. The Company does not maintain any compensatory time off plan or arrangement for exempt Employees except as specifically referenced in client contracts. Accordingly, any time off that is provided an exempt Employee is done on an informal basis. Neither extra compensation nor compensatory time off is, under any circumstances, owed or payable to an exempt Employee upon separation from the Company’s employment for any reason. Any personal time off that is approved by an Employee’s manager that does not fall within paid time off as listed in this handbook will be without pay.

Non-Exempt Employees

Non-exempt Employees are entitled to overtime pay whenever they perform overtime work. The Company does not permit Employees to take time off in lieu of receiving overtime pay. Employees may not request the opportunity to make-up time for time missed if the make-up time will result in work being deemed overtime work. Any personal time off that is approved by an Employee’s manager that does not fall within paid time off as listed in this handbook, will be without pay.

6.10
Time Reporting

Non-exempt employees must accurately record time worked on a daily basis by clocking in and out of the Company’s time clock in the Paylocity timecard system. This electronic timecard system is used for calculating employee pay.

Employees are responsible for verifying their timecard information in Paylocity for accuracy and submitting that information to their supervisor on a weekly basis for approval and submittal. Any corrections to the timecard information must be made and submitted by the payroll submission deadline. It is necessary for employees to indicate whether the time recorded is for time worked, or time off. Employees should not punch another person’s timecard or permit anyone else to punch. Falsifying timecard information will not be tolerated and will result in termination.

Exempt employees are required to report their department manager only time-off from their regular work schedule using the time off request feature in Paylocity.

These records are the only ones used by the Company to calculate your pay. It is very important they are accurate and complete. Employees are expected to submit accurate and complete time records reflecting all hours worked. Contact your supervisor or payroll@ehammersmith.com with any questions about how your pay is calculated. Promptly notify your supervisor or payroll@ehammersmith.com if you notice any mistakes in your time records or your pay. Also notify one of these individuals if you perceive anyone is interfering with your ability to record your time accurately and completely. All reports will be investigated, and appropriate corrective action will be taken. The Company will not tolerate retaliation against employees for making a report or participating in an investigation.

6.11
Overtime

Employees shall be paid for hours worked in accordance with all legal requirements. Employees who qualify, as administrative, executive or professional exempt Employees within the meaning of the State and Federal wage and hour laws are exempt from overtime pay and are not subject to this policy. All Non-exempt Employees qualify for overtime pay.

Management must approve all overtime work by a non-exempt Employee in advance. Because unauthorized overtime is against Company policy, Employees who work unauthorized overtime are subject to disciplinary action, up to and including termination. Any Employee discovered not logging hours to conceal overtime worked will also be subject to disciplinary action, up to and including termination.

Overtime Calculations
Overtime pay is calculated at one and one-half times the Employee’s regular rate for 12 hours or more in a workday, or for over 40 hours in a workweek, or as otherwise required by law. Overtime is computed on the basis of a non-exempt Employee’s total hours worked in a workweek. Hours paid but not worked (e.g., Holiday, sick and vacation), do not count as “hours worked” for overtime purposes. For overtime pay calculation purposes, the workday begins at 8:00 am and ends at 5:00 pm. The workweek begins at 12:01 am Monday and ends at 12:00 midnight on Sunday.

For additional information, a Colorado Overtime and Minimum Pay Standards Order (COMPS Order #37) Poster is attached in the PDF of this handbook (see link at top of page).

6.12
Inclement Weather

To ensure proper staffing at all times, Employees must be on the job. It is essential that all Employees make every effort to report for work, but never at risk to an Employee. In the event of extremely inclement weather, the offices may close at the discretion of the CEO. Employees will be notified as soon as possible by their supervisor. If there is no notification of an office closure or delayed start, Employees will be expected to report to work. Non-exempt Employees failing to report for work, including those who call in and are instructed by their Supervisor/Department Head not to report for work, will not be paid unless the Employee has accrued paid time off available to them, in which case they are allowed to use that time.

6.13
Attendance, Punctuality and Unreported Absences

To maintain a safe and productive work environment, Employees are expected to be reliable as well as punctual in reporting for scheduled work. Employees are also expected to take their lunch/mealtimes within the time limits set by their supervisor. Absenteeism and tardiness place a burden on fellow Employees and the overall operations and frequent absenteeism or tardiness may result in disciplinary action, up to and including discharge.

In the rare instances when Employees cannot avoid being late to work as scheduled, they are to notify their supervisor by phone, email, or text message as soon as possible prior to anticipated tardiness.

If an Employee is going to miss work because he/she or an immediate family member is sick, Employees are to notify their supervisor as soon as possible, ideally a minimum of two (2) hours prior to reporting time (the supervisor will advise an Employee of an alternative person to contact if he or she is unavailable).

If an Employee does not notify their direct supervisor or the alternative person of a tardiness or absence, it will be considered an unapproved, unscheduled absence. Each situation of absenteeism, tardiness or early departure will be evaluated on a case-by-case basis. Even one unexcused absence or tardiness may be considered excessive, depending upon the circumstances. However, the Company will not subject employees to disciplinary action or retaliation for an absence, tardiness or early departure for which discipline may not be imposed under applicable law. If the employee believes that an absence, tardiness or early departure is (or should be) excused pursuant to applicable law, the employee should notify their manager of this fact as soon as possible, but no later than at the time of the absence, tardiness or early departure. If an employee believes they have mistakenly been subject to disciplinary action for an absence, tardiness or early departure that the employee believes is or should be excused/approved, the employee should promptly discuss the matter with their manager or Human Resources. The Company will investigate the situation and any errors will be corrected. Employees who fail to report for work without any notification to their supervisor and whose absence continues for a period of three days (No Call / No Show) will be considered to have abandoned and voluntarily terminated their employment, absent extraordinary circumstances.

6.14
Company Reimbursement Policy

HMI provides reimbursement for Company related expenses. Purchases must be made on behalf of the Company and in conjunction with the Employee’s job duties. Reimbursement requests must be submitted each monthly along with receipts for the expense. Additionally, mileage reimbursement may be provided for necessary business travel. All reimbursements must be submitted monthly on the proper form(s) along with matching receipts. Abuse of this policy, including falsifying expense reports to reflect costs not incurred by the employee, may result in disciplinary action, up to and including termination of employment.

6.15
Company Credit Card Policy

The Company will issue Company credit cards to certain Employees for use in their jobs; this policy sets out the acceptable and unacceptable uses of such credit cards.

Use of Company-issued credit cards is a privilege, which the Company may withdraw in the event of serious or repeated abuse. Any credit cards the Company issues to an Employee must be used for business purposes only, in conjunction with the Employee’s job duties. Employees with such credit cards shall not use them for any non-business, non-essential purpose, i.e., for any personal purchase or any other transaction that is not authorized or needed to carry out their duties. Employees are responsible for any unauthorized purchases deemed by the Company to be for personal use.

Misuse of a Company credit card that violates this policy will result in disciplinary action, up to and including termination of employment.

6.16
Bonding and Licensing

HMI Employees may be required to be bonded (insured). If so, the ability to be bonded may be a requisite of employment. The bonding Company requires certain specific and personal information from each Employee. The Company will make every effort to keep this information confidential. In addition, in selected cases and for selected Employees, and as required by law, some HMI Employees may be required to be licensed. The ability to be licensed may also be a requisite of employment.

6.17
Educational and Licensing Assistance

HMI recognizes that the skills and knowledge of its Employees are critical to the success of the organization. It is also important to HMI that we maintain our Accredited Association Management Company (AAMC) Designation as well as our Designated Manager License. In order to do this, some Community Association Managers must obtain and maintain their CMCA, AMS and/or PCAM Designations. Community Association Managers must be licensed in the state, if required by law.

To facilitate these Designations as well as other educational classes that can benefit HMI and our Employees, HMI will provide educational assistance to Employees who have completed 90 calendar days of service. The policy for community management educational assistance is issued under separate cover, and reimbursement for educational assistance is contingent upon following these policies.

Any other Employee wishing to take a class and be reimbursed by HMI must submit a written request to their Director, which must include the name of the class, the name of the entity presenting the class, what positive impact towards their position with HMI will result from their participation in this class, the date(s) and times of the class and the cost of the class. All requests must be approved by a department Director and CEO shall have the final authority and discretion to determine if the class requested fulfills the Company’s requirements for reimbursed education, as determined by the Company from time to time.

If the class meets these criteria, upon successful completion of the class, the Employee will be reimbursed the cost of the class. If an Employee leaves the Company within one year after completing the course(s), the Employee will be expected to totally refund the cost of the course(s) to HMI.

6.18
Internet / Email Usage

The Company provides access to the vast information resources of the Internet to help our Employees perform their job faster, smarter, and in the most productive manner possible. The facilities that provide that access represents a considerable commitment of Company resources for telecommunications, networking, software, storage, and support, etc. Moreover, the cost of providing these resources is significant. As such, HMI considers the Internet and its usage a Business Tool and is to be used as a specific part of the Employee’s job duties. As with HMI computers, network and information systems; Internet access is Company property. As such, HMI Employees may use the Internet for only legitimate Company purposes. Employees may make limited use of our email system for personal business matters, so long as such use is kept to a minimum and does not interfere with your work. Employees may not use Company computer resources for commercial, unauthorized, or political advocacy purposes. Employees may not download or install destructive programs, viruses, or self-replicating programs on HMI computers or networks. Equally, Employees may not save, copy, download, or distribute software, system files, programs, or information from the Internet or Company networks unless for legitimate Company-business purposes, or without expressed permission from the Information Technology Department. Unnecessary or unauthorized Internet usage causes network congestion. It slows other users, takes away from work time, consumes supplies, and ties up printers and other shared peripherals. Unlawful Internet usage may also garner negative publicity for HMI and expose an Employee or the Company to significant legal liabilities.

There is an expense associated with providing internet access and HMI has limited bandwidth for Internet activity, so use the Internet with discretion and disconnect when not in use. This cooperative effort by all HMI Employees will make Internet usage more effective. Employees forgo a level of freedom when using Company computers, network, information system, and the Internet. An Employee shall have no expectation of privacy as to the use of HMI computers, network, information system, and the Internet. Employees waive any right to privacy in anything that is created, stored, sent or received on the computer or the Internet, owned by HMI. The Company has the right, but not the duty, to monitor any and all aspects of its computer, network system and computer usage, including, but not limited to, monitoring sites Employees visit on the Internet, monitoring and reviewing materials downloaded or uploaded by Employees and reviewing E-mail sent or received. In many cases, emails are considered a record of the client Associations we serve and are discoverable evidence in most legal environments. Upon separation of employment, all Company equipment and communications should be returned to the Company. If Company equipment is not returned upon separation, the employee will be responsible for reimbursing the Company for the unreturned equipment.

Emails: Use of the Email is encouraged as a means of better communication within the Company and its vendor, suppliers, or other departments, and acts similar to the use of a telephone. Incidentally, as with telephone calls, personal Email messages do/will come in and Employees do have permission to answer such messages. However, as stated in the preceding paragraph, all incoming or outgoing information will be considered HMI property, and will be handled as such. Abuse of Email privileges may bring disciplinary action against an Employee. Electronic mail is like any other form of Company communication and may not be used for harassment or other unlawful purposes. Remember that when you send email from the Company domain, you represent the Company whether your message is business-related or personal.

Text: While the use of text messaging to relay information internally about work orders or violations may be acceptable under selected circumstances, it is not an acceptable form of communication to clients regarding Association business and does not provide HMI adequate compliance of Association record keeping as stipulated in the management contracts.

Employees should not expect that e-mail, voicemail, telephone or computer usage information is confidential or private. By use of HMI’s electronic equipment, an Employee is consenting, in advance, to HMI’s accessing, intercepting or monitoring any electronic communication or stored electronic communication. Employees may not utilize HMI’s resources in a manner that violates any existing statute, ordinance, or regulation effective in the United States or the State of Colorado, or that violates any Company rule or policy.

6.19
Social Networking and Blogging

In general, HMI views websites, web logs and other information published on mediums accessible by the public by its Employees positively, and it respects the right of Employees to use them as a medium of self-expression. If an Employee chooses to identify as an HMI Employee or to discuss matters related to Company business, please bear in mind that although the information that is published will generally be viewed as a medium of personal expression, some readers may nonetheless view the information as written on behalf of HMI. In light of this possibility the following guidelines must be followed:

• Company equipment, including computers and electronic systems, are limited to business use only.
• Understand that an Employee assumes full responsibility and liability for public statements.
• Employees are not permitted to disclose confidential or proprietary information. At all times Employees must abide by all non-disclosure and confidentiality policies.
• Company policies governing the use of corporate logos and other branding and identity apply, and only individuals officially designated have the authority to speak on the Company’s behalf. Therefore, Employees are not permitted to use any Company logo or graphics without first obtaining permission.
• Employees must always comply with all other employment policies, including the Anti-Harassment and Non-Discrimination Policy.

Since the information published on social media is for the most part accessible by the general public, HMI expects Employee comments to be truthful and respectful to the Company, the Employees, customers, partners, affiliates and others (including our competitors) as HMI itself endeavors to be. Do not criticize individual Employees, and instead consider discussing the criticism personally instead of making it public. HMI takes the position that statements about our Company, our Employees, customers, partners, affiliates and others (including our competitors) must not be disrespectful, defamatory, obscene, threatening or harassing.

6.20
Instant Messaging and Internet Relay Chat

Due to multiple security weaknesses in the popular versions of Instant Messaging (IM) and Internet Relay Chat (IRC) the use of these services is generally prohibited in the workplace. Any use of IM or IRC services must be approved by the Company and is subject to the same terms as outlined for e-mail and internet use, as discussed in this policy.

Sanctions:

• All Employees shall abide by the Internet Usage Policy. HMI reserves the right to modify and revise the policy. Employees will be given the revisions as they occur.
• Employees shall implement the new policy immediately, upon receipt. Use of the Company computer, network, information system, and the Internet is a privilege. Any Employee found violating the Company computer, network, and Internet Usage Policies will be subject to disciplinary action, including suspension or revocation of usage privileges or termination from employment. The severity of the violation shall dictate the severity of the disciplinary action.
• Disciplinary action will be determined on a departmental basis. Departments shall investigate any violation and consult with the Director of Information Technology to determine the severity of the violation. The Employees may also be subject to civil and criminal prosecution depending on whether the Employee has also violated relevant computer and Internet laws.

6.21
Phone and Cell Phone Usage

During business hours or during their scheduled work time for hourly Employees, the use of personal cell phones for calls or text messaging is restricted to breaks and lunches with the exception of Company business purposes or emergency situations only. In addition, Employees whose positions require them to carry a cell phone are prohibited from using the phone while driving unless they have a hands-free phone due to the potential risk associated with the use of cell phones while operating a motor vehicle. Sending and/or receiving text messages is expressly prohibited while operating any vehicle. It is also a requirement that cell phones are turned to “silent” or “vibrate” mode during Company and business-related meetings. Employees should also be aware that texting while driving is a violation of Colorado law, in addition to being a violation of company policy. It is also a violation of Colorado law to use earphones while driving, unless the earphone is built into protective headgear or is a device that only covers one ear and is connected to a wireless, handheld telephone.

Access to the Company telephone system is given principally for work-related activities or approved educational/training activities. Telephone usage should be based upon cost-effective practices that support the Company’s mission and should comply with applicable rules and regulations.

The Company telephone system is at all times the property of the Company. By accessing the telephone system through facilities provided by the Company, you acknowledge that the Company has the right to monitor its telephone system from time to time to ensure that employees are using the system for its intended purposes.

6.22
Office and Desk Inspection Policy

The Company provides offices, supplies, desks, bookshelves and technology tools for the convenience of its Employees at the Company’s expense. Although offices are made available for the convenience of Employees while at work, Employees should remember that all offices and their contents remain the sole property of the Company. Moreover, the Company reserves the right to open and inspect offices, as well as any contents, effects or articles that are in Company furniture. Such an inspection can occur at any time, with or without advance notice or consent; such an inspection may be conducted during, before or after working hours by management of the Company.

As described above, prohibited materials, including weapons, explosives, alcohol and non-prescribed prescription drugs or medications, may not be placed in an office or desk. Perishable items also should not be stored in an office or kept for prolonged periods. Employees who, if requested, fail to cooperate in any inspection will be subject to disciplinary action, including possible suspension or discharge. The Company is not responsible for any articles that are placed in the office that are lost, damaged, stolen or destroyed.

6.23
Customer Relations

Our clients are vital to the success of our business. Every Employee represents Hammersmith Management to our clients, homeowners, potential clients, business partners and the public. One of the highest priorities at Hammersmith Management is to provide our clients and potential clients platinum service.

Nothing is more important than being courteous, friendly, prompt, and helpful to clients and each other. Contacts with the public, telephone manners, and any other business communication to our clients reflect not only on the Employee, but also on the Company brand and the professionalism of our Company.

“Good customer relations builds customer loyalty.”

6.24
Job Descriptions

HMI strives to maintain accurate job descriptions for all positions within the Company. We use job descriptions to identify the requirements of a job, set the hiring criteria, identify training needs and set standards for Employee performance evaluations.

An Employee’s job description does not necessarily cover every task or duty that may be assigned. Employees may be assigned additional responsibilities, as necessary. If there are questions or concerns about a job description, contact an immediate supervisor.

6.25
Job Postings

On an on-going basis and to the extent possible and practical, every available position within HMI is posted on the Careers section of the Company’s website. Postings will contain the required qualifications and experience and apply with applicable laws. Employees who meet the job criteria are encouraged to apply, after having their supervisor sign off on the internal applications or may refer external candidates who are qualified.

6.26
Employee Referral Program

HMI recognizes that Employees are a great resource for recruiting candidates for employment. Please refer qualified applicants to Human Resources. Candidates should meet the criteria for the job, and HMI will give every consideration to all qualified candidates. To be eligible to receive recognition under the referral program, the referring employee must complete a referral form in MyHammersmith.com at the start of referred candidate’s employment. Contact Human Resources for further details.

6.27
Personal Relationships and Hiring of Relatives

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 of work, personal conflicts from outside the work environment can be carried over into day-to-day working relationships.

For the purposes of this policy, a relative is any person who is related by blood, adoption or marriage, or whose relationship with the employee is similar to that of persons who are related by blood, adoption 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 categories of employment, including full time, part-time and temporary classifications, and to all employees without regard to the gender or sexual orientation of the individuals involved.

The Company permits the employment of those in close personal relationships in the same or different departments, except in the following circumstances:

When one relative or member of a dating relationship is responsible for making decisions in employment matters such as the decision to hire, promote or determine the salary of another relative or member of a dating relationship.

When one relative or member of a dating relationship are in confidential positions, such as Human Resources, payroll or administrative assistants are not open to relatives of any Employee.

When one relative or member of a dating relationship is responsible for supervising, directing, evaluating or influencing the evaluation of another relative or member of a dating relationship.
When relatives of the same family or member of a dating relationship would be placed in circumstances in which conflicts may arise between the interests of the Company and the interests of the relatives or either individual of a dating relationship.

The Company 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 promptly disclose the existence of the relationship to management or the Human Resource Department. At that time, the parties may be separated by reassignment or terminated from employment, at the discretion of management.

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.

6.28
Workplace Etiquette and Company Culture

Hammersmith Management believes everyone in the Company has a responsibility to create a pleasant place to work, and one where all Employees show respect and courtesy to each other. There may times when a team member does not realize that they are being unintentionally disruptive to other people. If a situation such as this arises, it is in accordance with HMI culture for Employees to first approach the situation directly in an attempt to resolve the issue. Additionally, we expect all Employees to keep an open mind when they are approached and try to understand the other person’s point of view. If an issue cannot be resolved by approaching the other person, HMI wants to give consideration to any issues that may affect an individual’s job performance. The only way the Company can help answer questions or solve problems is for an Employee to report them.

1. In support of our corporate culture program, Employees are encouraged to first address the problem or misunderstanding directly with the individual with whom he/she is having the problem or misunderstanding. If an Employee is unable to resolve the issue, HMI encourages Employees to speak to their supervisor about the situation. A supervisor can provide an opportunity to discuss the matter fully and will help mediate as necessary to resolve the situation. The majority of problems can be resolved in this manner.
2. In the rare event the problem or misunderstanding cannot be settled, the matter can be taken to Human Resources or another Director will be made available to assist with the matter.

6.29
Outside Employment

HMI understands that there may be instances where it is necessary for an Employee to have a part-time job in addition to their regular full-time position. Employees should understand that other employment must not interfere with their current position or may not involve a conflict of interest or give that appearance. Employees should advise their supervisor if it becomes necessary to take an additional job. Employees are not allowed to accept positions with the Company’s competitors as this represents a conflict of interest.

6.30
Visitors at Work

All visitors, including an Employee’s family members, who wish to see an Employee during working hours, must first check in at the front office. Visitors may be required to sign in and receive a visitor’s badge. Due to the disruption caused by visitors, please keep visits from friends and relatives to a minimum.

If a visit involves an emergency, the Employee will be notified immediately, and will receive all possible cooperation from management.

6.31
Convictions

The Company is committed to assuring a safe and secure environment for its staff, vendors, and homeowners. For this reason, Employees must report any criminal convictions that have occurred while an active HMI Employee to Human Resources. This includes anything after the initial background check was performed. Criminal convictions must be reported within five business days of the conviction.

Convictions for routine traffic-related infractions (e.g., speeding, unsafe movement, improper equipment) are not required to be reported under this policy unless driving is a required part of the Employee’s regularly assigned job duties.

Willful failure to report a criminal conviction may subject the Employee to appropriate disciplinary action up to or including termination.

Human Resources will consider the conviction with regards to the Employee’s job duties, context of events surrounding the conviction, pattern of illegal activity, and other circumstances to determine whether it poses an unacceptable safety risk. Based on the findings, the Company may take action such as modification of job duties and/or appropriate disciplinary action up to and including termination of employment.

6.32
Space Heater Policy

This policy will cover the unsafe nature of space heaters in an office setting. Space heaters are highly inefficient, can overload electrical circuits causing injury or property damage, and pose a serious fire hazard when not used properly. 54% of space heater fires have been associated with direct property damage. Keep in mind that the use of space heaters can interfere with the normal heating system thermostats causing uncomfortable conditions for people in other areas of the building. They also cause an energy drain contributing to higher utility costs.

Because of the hazard that portable space heaters pose in the workplace and when not used properly, they are prohibited from use in any Hammersmith® indoor workspace. If the central building heat system is unable to maintain a target work temperature, it may be determined that it is necessary to allow a space heater for temporary, supplemental heat until the comfort concern can be permanently resolved. Even under this circumstance, CEO approval must be obtained before a portable space heater may be used.

6.33
Crisis Communications

The Company is committed to providing the media and our clients with accurate information. To avoid discrepancies, specific guidelines should be followed when a media inquiry is received.

All media inquiries regarding the company and its operation must be immediately referred to the appropriate person based on the Hammersmith® Crisis Communication plan, who is authorized to make or approve public statements regarding company business. The Crisis Communication plan can be found in P:\HMI ALL ACCESS\Crisis Communications. If you do not know who to refer all media inquiries to, send them to the Vice President of Operations. Unless specifically designated by this person, you are not authorized to make those statements.

The company will generally provide a response to media inquiries within 24 hours. Should the response require a detailed technical explanation, a spokesperson will be designated to address the issue. The spokesperson will be chosen carefully, based on their area(s) of expertise.

Media inquiries include, but are not limited to, official statements, press releases and advertisements.

Please contact the Vice President of Operations with any questions or concerns you have regarding the Media Relations Policy.

Section 7 – Work Performance

7.1
Performance Expectations

Employee conduct and performance form the bases for HMI’s goals of continuous high-quality service and growth while maintaining a positive image with the community. Teamwork and a winning attitude are necessary to maintain the high standards of HMI and to support these goals.

Employees are expected to maintain acceptable levels of work performance and personal conduct. Work performance includes good attendance, timely reporting to work and adherence to established safety rules, operational procedures, and the successful completion of job duties. Personal conduct includes proper personal appearance and hygiene, honesty and politeness, while displaying a positive attitude and a spirit of cooperation. Employees are expected to conduct themselves responsibly with respect to fellow Employees, supervisors, managers, customers and members of the public.

7.2
Performance Reviews

Each Employee will be reviewed at specific intervals. Any pay increases are based on demonstrated performance and are not guaranteed at the time of any particular review. In considering and/or recommending an increase for an Employee, a written review form is used. Items taken into consideration include, but are not limited to, production, performance, contribution, attendance, conduct, ability, and length of service. The Employee must sign all reviews.

7.3
Performance Improvement

When management determines an Employee is not meeting an acceptable level of performance, or professional and positive Company representation, performance improvement is required. In most cases, bringing the matter to the Employee’s attention is sufficient. The major purpose of an improvement plan is to allow the Employee to correct the problem, prevent reoccurrence, and guide the Employee back to satisfactory conduct and acceptable performance.

If the Employee does not correct an unacceptable situation, an escalated improvement plan may be necessary. This action may include: Coaching Sessions, Documented Verbal Counselings, Written Warnings, Performance Improvement Plans, Suspensions (with or without pay), or termination of employment. The action taken will depend on the severity of the problem and the number of occurrences. There may be circumstances when one or more of these steps are bypassed.

HMI recognizes certain types of Employee problems as serious enough to justify either a suspension or termination of employment after the first occurrence. Any action taken by management in an individual case does not and should not be construed to establish a precedent in other circumstances.

As set forth in the front of this handbook, all employment with HMI is terminable at will. As such, employment may be terminated at any time, with or without cause, and with or without notice and in the sole discretion of the Company. No agreement or understanding as to the duration of employment with the Company shall be effective unless such agreement is in writing and has been approved by the firm. Job classification, job descriptions, duties, as well as salary and benefits, may similarly be modified, with or without cause, by HMI with or without prior notice, written or otherwise, to the Employee.

7.4
Disciplinary Action Policy

Disciplinary actions may entail verbal, written and final warnings, suspensions, and termination. Not all of these actions may be followed in all instances. The Company reserves the right to exercise discretion in discipline. Prior warning is not a requirement for termination of employment. All disciplinary actions will be documented; documentation will be placed in personnel files.

Hammersmith Management, Inc. reserves the right to take any disciplinary action the Company considers appropriate, including termination, at any time. In addition to those situations discussed elsewhere in this handbook, listed below are some examples where immediate termination of employment could result. This list is general in nature and is not intended to be all inclusive:
o Discourtesy to a customer, vendor or the general public resulting in a complaint or loss of good will
o Refusal or failure to follow directions from management, insubordination
o Breach of confidentiality relating to employer, employee, customer or vendor information
o Altering, damaging or destroying company property or records, or another employee’s property
o Dishonesty
o Providing false or misleading information to any company representative or in any company records, including the employment application, benefits forms, timecards, expense reimbursement forms and similar records
o Fighting or engaging in disorderly conduct on the company’s or a customer’s premises or off-site while representing the company
o Violations of any of company’s employment policies including, but not limited to, confidentiality, security, solicitation, insider trading, conflict of interest and code of conduct
o Conduct or performance issues of a serious nature
o Failure of a drug or alcohol test

The Company recognizes that personal issues can sometimes affect your performance. The Employee Assistance Program (EAP) is available to employees and their families to provide confidential help with a wide variety of personal problems, issues and concerns.

Use of EAP services, however, does not excuse you from complying with company policies and procedures, or from achieving job requirements or expectations during or after receiving EAP assistance. Participation in the EAP will not prevent the company from taking disciplinary action when warranted.

7.5
Promotion Policy

It is in the best interest of the Company and our Employees to promote from within whenever qualified personnel are available within the organization.

Current openings for jobs at HMI may be posted on the Company website and will contain the required qualifications and experience and all information required by applicable law, as well as instructions on how to apply. For every posted job opening, the Company will disclose the salary or wage rate or range, along with a general description of all the benefits and other compensation that will be offered to the hired applicant. The Company will not rely on an applicant’s salary history to determine whether to offer employment or what salary to offer.

Employees who meet the job criteria are encouraged to apply or may refer external candidates who are qualified. The Company reserves the right to advertise outside the Company to ensure the most qualified person is selected for the position. Both Human Resources and the hiring manager will review the resumes and applications of all candidates and select those who are qualified for an interview.

To be considered, an Employee must have been in their current position for a period of 6 months, be in good standing with their current position/department, and not have any documented performance improvement plans within the previous six (6) months. However, a transfer may take place within the first six (6) months of employment if the management of the Company believes that it is in the best interest of the Company to make an exception to this guideline.

If an Employee meets the requirements of the position, he/she must submit an internal application along with an updated resume to their supervisor for approval. Agreement will be made between all departments and supervisor/managers before any internal changes are made.

7.6
Internal Transfers

To be considered for an internal transfer, an Employee must be in their current position for a period of no less than six (6) months. Exceptions to this policy may be made in unusual circumstances, each case is to be considered separately by management, in management’s sole discretion.

7.7
Access to Personnel Files

Upon request, employees will be allowed to inspect their personnel files at least one time per year. Employees who wish to review their personnel files should contact Human Resources. The review will take place in the presence of a Company representative at a time that is convenient for both the employee and the Company. Employees are permitted to obtain a copy of their personnel files, but may be required to pay reasonable costs for the duplication of the documents.

Following separation from employment, former employees may inspect and/or obtain a copy of their personnel files one time. The former employee may be required to pay reasonable costs for duplication of the documents.

For purposes of this policy, a personnel file does not include documents required by law to be placed in a separate file or records relating to: confidential reports from previous employers of the employee; an active criminal investigation; an active disciplinary investigation by the Company; an active investigation by a regulatory agency or and information that identifies an individual who made a confidential accusation against the employee.

Section 8 – Termination Policies

8.1
Employment Termination

Termination of employment is an inevitable part of personnel activity within any organization, and many of the reasons for termination are routine. Below are examples of some of the most common circumstances under which employment is terminated:

• Resignation—voluntary employment termination initiated by an employee
• Termination—involuntary employment termination initiated by Hammersmith Management, Inc.
• Layoff—involuntary employment termination initiated by Hammersmith Management, Inc. for non-disciplinary reasons

If you wish to resign, we ask that you notify your manager of your anticipated departure date at least two weeks in advance. Of course, as much notice as possible is appreciated by Hammersmith Management, Inc. and your co-workers. This notice should be in the form of a written statement.

If you fail to report to work for three consecutive days without informing your supervisor of the planned absence, we will assume that you have voluntarily resigned.

In the case of termination due to resignation, retirement or a permanent reduction in the work force, your accrued vacation pay will be paid. Unused sick time is not paid upon termination. In the case of termination, any vacation or sick time used in excess of accrued time will be deducted from your final paycheck given your prior written permission.

Furthermore, any outstanding financial obligations owed to the Company will also be deducted from your final check, given your prior written permission. If your final check does not sufficiently cover the money owed to the Company, you will remain liable for that amount.

A meeting between you and your immediate manager will take place prior to your last day of work. If applicable, your rights concerning continuation of group health benefits will be discussed during this meeting. Parking passes, office keys, company equipment and building passes must be returned at this time, along with all other company property and confidential information.

If an employee leaves the Company in good standing, they may be considered for re-employment.

Except as required by law or by separate agreement, employee salary and benefits will end on the date of termination.

Upon resigning from the Company, employees should continue to provide the company with an accurate address for at least one year for tax purposes.

8.2
Final Paycheck

Employees will receive their final paycheck within the time required by Federal and State law.

8.3
Exit Survey

Human Resources will send an exit survey to each Employee who voluntarily leaves the employment of HMI. This survey allows Employees to communicate their views on their work with the Company and the job requirements, operations, and training needs. It also provides the Employee an opportunity to discuss issues concerning benefits and insurance.