THE EMPLOYEE HANDBOOK

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1 THE EMPLOYEE HANDBOOK 1603 Lyndon B Johnson Freeway Suite 350 Dallas, TX (972)

2 TABLE OF CONTENTS EMPLOYEE HANDBOOK TABLE OF CONTENTS MANAGEMENT PRINCIPLES & PRACTICES SECTION 1 Cover Page 1 Introduction 2 Confidential Nature of Company Affairs 3 Ethics and Ethics Policy 3 Equal Opportunity Statement 3 Fair Housing Procedures 3 EMPLOYMENT SECTION 2 Cover Page 1 Management Rights 2 Hiring/Rehiring/Testing 3 Nepotism 4 Performance Guidelines 5 Performance Reviews 7 Hours of Work 8 Employment Classifications 9 Exempt/Hourly Employees 10 Attendance/Punctuality/Absenteeism 11 Resignation/Termination 12 Disciplinary Guidelines 13 Grievance Procedures 14 PERSONAL CONDUCT SECTION 3 Cover Page 1 Drug Abuse 2 Dress Code 5 Smoking 8 Sexual Harassment 9 Standards of Conduct 10 Conflict of Interest 11 PAY PRACTICES SECTION 4 Cover Page 1 Pay Procedures 2 Recording of Time Worked 3 Revised 05/13/2015 Employee Handbook: Table of Contents 1 of 2

3 TABLE OF CONTENTS ABSENCE FROM WORK SECTION 5 Cover Page 1 Vacation 2 Sick 4 Holiday 5 Military/Reserve Leave 6 Family and Medical Leave 7 Maternity Leave 8 Return to Work Program 9 Jury Duty/Witness Duty 10 Funeral Day 11 EMPLOYEE EXPENSES SECTION 6 Cover Page 1 Mileage/Travel Reimbursement 2 EMPLOYEE BENEFITS SECTION 7 Cover Page 1 Employee Benefits 2 COMPANY PREMISES AND WORK AREAS SECTION 8 Cover Page 1 Use of Property and Equipment 2 Use of Personal Equipment 6 Children and Pets in the Workplace 8 Safety in the Work Place 9 Hazardous Chemicals 10 MISCELLANEOUS SECTION 9 Cover Page 1 Accident/Injury Occurrence 2 Living On-Site 3 Transfers 4 Leasing Commissions 5 Educational Reimbursement 6 Revised 05/13/2015 Employee Handbook: Table of Contents 2 of 2

4 MANAGEMENT PRINCIPLES & PRACTICES MANAGEMENT PRINCIPLES & PRACTICES Revised 02/25/2010 Employee Handbook: Management Principles & Practices 1 of 1

5 MANAGEMENT PRINCIPLES & PRACTICES INTRODUCTION We want to take this opportunity to welcome you to our company. The purpose of this Employee Handbook is to assure continuity and consistency among all property operations. It will provide guidelines for hiring new personnel, payroll procedures, employee benefits and other day-to-day policies. Our goal is to supplement the good judgment of company employees with sound personnel procedures and policies. We rely heavily upon qualified people to administer these policies and to uphold and promote the pursuit of excellence. Whether you are embarking upon a new career or furthering an established one, we want to help make the transition as comfortable and successful as possible. This Handbook has been assembled for several reasons: To familiarize you with your new surroundings. To set forth general policies and procedures. To foster independence and initiative in your decision-making by giving you general guidelines to follow. To let you know what you can expect from us, as well as what we expect from you. THIS HANDBOOK IS NOT INTENDED TO BE AN EMPLOYMENT CONTRACT. Please read through it now and refer back to it often or when necessary. If you have questions your supervisor will be happy to discuss them with you. We hope you will find our company an enjoyable and challenging environment in which to work. Revised 02/25/2010 Employee Handbook: Management Principles & Practices 2 of 2

6 MANAGEMENT PRINCIPLES & PRACTICES CONFIDENTIAL NATURE OF COMPANY AFFAIRS It is the policy of this company that the general internal business affairs of the organization not be discussed with anyone outside the organization except as may be required in the normal course of business. Information designated as confidential is to be discussed with no one outside the organization and only discussed within the organization on a need to know basis. ETHICS AND ETHICS POLICY It is the policy of this company to prohibit its employees from engaging in any activity, practice or act which conflicts with, or appears to conflict with, the interests of this company, its customers or its suppliers. Employees are not to engage in, directly or indirectly, any conduct which is disloyal, disruptive, competitive or damaging to the company. EQUAL OPPORTUNITY STATEMENT It is the policy of this company to provide equal opportunity employment to all employees and applicants for employment. No person is to be discriminated against in employment because of race, religion, color, sex, age, national origin or handicap. It is the policy of this company to be an equal opportunity employer and to hire individuals on the basis of their qualifications for the job to be filled. It is the policy of this company to comply with all applicable federal and state laws, local health standards, and OSHA and safety regulations. Employees are expected to comply with all safety and health requirements established by employer or by federal, state and local law. FAIR HOUSING PROCEDURES It is the policy of this company to provide its residents with the best possible service. Employees are expected to treat residents and guests in a courteous, respectful manner at all times. Federal law prohibits discrimination on the basis of race, color, religion, sex, national origin, family status or disability. All personnel of the company are expected to follow this policy. All persons involved in the leasing process must comply with federal housing laws, specifically understanding that discrimination based on any factor(s) listed above is both a violation of Federal Housing Laws and company operating policies. No supervisor or manager has the authority to make representations in direct conflict with any policy contained herein. As the organization continues to grow, the need may arise to change policies described. The employer, therefore, reserves the right to revise, supplement or rescind any policy or portion of the policy from time to time as it deems appropriate in its sole and absolute discretion. Revised 02/25/2010 Employee Handbook: Management Principles & Practices 3 of 3

7 EMPLOYMENT EMPLOYMENT Revised 05/13/2015 Employee Handbook: Employment 1 of 14

8 EMPLOYMENT MANAGEMENT RIGHTS DATE: September 12, 2008 To define the company s management rights. It is the company policy to implement fair and effective personnel policies and practices. Company goals include: To provide equal employment opportunity and treatment regardless of race, religion, color, sex, age, national origin or handicap. To monitor and comply with applicable federal and state laws and regulations concerning employee safety. To provide training consistent with the company s requirements for those whose needs, capabilities and desires warrant such training. The company expects all employees: To give a productive day s work. To begin work on time. To demonstrate a considerate, friendly and constructive attitude toward fellow employees and to our customers. To adhere to the policies adopted by the company. To follow directions and instructions of your supervisor regarding normal work activity. The company retains the sole right to exercise all managerial functions including, but not limited to, the rights: To terminate, assign, supervise and discipline employees. To transfer employees. To establish, change and abolish policies, practices, rules and regulations at will as it sees fit. To assign duties to employees in accordance with the company s needs and requirements and to carry out all ordinary administrative and management functions. AT WILL EMPLOYMENT (Texas only) The employment and compensation of any employee can be terminated with or without cause, and with or without notice, at any time, at the option of either the company or the employee. Revised 05/13/2015 Employee Handbook: Employment 2 of 14

9 EMPLOYMENT HIRING/REHIRING/TESTING DATE: June 20, 2011 To define the company s management rights. It is company policy to be an equal opportunity employer and to hire individuals on the basis of qualifications for the job to be filled. New Hire Prospective employees are required to take a series of written examinations, drug testing, criminal background and credit checks. If an applicant is qualified for the position and has passed all required written tests and references are satisfactory, prior to becoming an employee, applicants will be screened for substance use. Applicants may also be required to take a physical and back evaluation if it relates to specific positions. At the time of the drug testing, applicants will be informed of the testing procedure and the consequences of positive results. The applicant will be given a consent and release form, stating that the testing procedures have been generally explained and that the applicant understands the test results will be released to the prospective employer and used to determine suitability for employment and to identify the drugs to be tested. If the applicant fails to sign the consent and release forms or refuses to be tested or if the test results are positive, the applicant may be denied employment. NOTE: Diluted specimen results will require immediate retesting, without notice, using a standard hair follicle screen. The cost of this test will be at the applicant s expense if the test results are positive. It is the policy of this company to charge pre-employment screening costs up to $135 back to the applicant if derogatory drug, criminal or credit checks result in denial of employment by the company. Rehire When rehiring within sixty days of termination, an employee does not need to be re-tested. If the period is over sixty (60) days, all pre-employment tests should be given. Acquisition Employees joining the company through the acquisition of new property will be treated as new hires unless otherwise requested by the owner of the property. Revised 05/13/2015 Employee Handbook: Employment 3 of 14

10 EMPLOYMENT NEPOTISM DATE: September 12, 2008 To notify employees that this company has a policy as to members of a family working for the company. It is company policy that no more than two (2) members of an immediate family can be employed with the company. No more than two (2) members of an immediate family can work for the company. Immediate family consists of mother, father, son, daughter, sister, brother, cousin, in-law or spouse. Family members may not work at the same property. Exceptions must be approved by the President. Revised 05/13/2015 Employee Handbook: Employment 4 of 14

11 EMPLOYMENT PERFORMANCE GUIDELINES DATE: September 12, 2008 PURPOSES: To define the expected conduct and behavior of employees. Specific rules and regulations regarding employee behavior and conduct are necessary for the efficient operation of the company and for the benefit and safety of all employees. All employees are expected to conduct themselves and behave in a manner which is conclusive to the efficient operation of the company. Such conduct includes but is not limited to: Reporting to work as scheduled and being at the proper work station, ready for work, at the assigned starting time. Notifying the immediate supervisor one (1) hour prior to start time when the employee will be absent from work or is unable to report for work on time. s, phone messages, messages to the answering service or messages to another employee not acceptable. Complying with all company safety regulations and reporting potential hazards and trouble spots to immediate supervisor. Wearing clothing appropriate for the work being performed and in accordance with the SunRidge dress code. Eating meals only during meal periods and only in the properly designated areas. Maintaining a clean and orderly work area. Treating all customers, visitors, and fellow employees in a courteous manner. Performing assigned tasks efficiently and in accordance with established quality standards. Reporting to management suspicious, unethical or illegal conduct by fellow employees, customers or vendors. Following directions and instructions of your supervisor regarding normal work activity. Revised 05/13/2015 Employee Handbook: Employment 5 of 14

12 EMPLOYMENT The following types of conduct are prohibited and will subject the individual involved to disciplinary action, up to and including termination. (See Disciplinary Guidelines for specifics.) The reporting to work under the influence of alcoholic beverages and/or illegal drugs or narcotics. Use, sale, or possession of alcoholic beverages and/or illegal drugs and narcotics on company premises. The use of excessive profanity or abusive language. The possession of firearms and other weapons on company property. Insubordination or the refusal by an employee to follow management s instructions concerning a job-related matter. Verbal threats, fighting or assault on a fellow employee, resident or vendor. Theft, destruction, defacement or misuse of company property or of another employee s/resident s property. Gambling on company property. Sleeping on the job. Improper attire or inappropriate personal appearance. Engaging in any form of sexual harassment or activity. Violation of the company s policies on solicitation or distribution. Revised 05/13/2015 Employee Handbook: Employment 6 of 14

13 EMPLOYMENT PERFORMANCE REVIEWS DATE: September 12, 2008 To inform employees of the performance review procedure. It is company policy that the job performance of each employee should be evaluated periodically. Supervisors should complete performance reviews upon the following occasions: Prior to annual review or anniversary day. As supervisor deems necessary. Shopping reports are considered performance reviews. Bad performance reviews and verbal or written reprimands can result in termination. (See Disciplinary Guidelines). A performance review does not necessarily include a salary increase. Revised 05/13/2015 Employee Handbook: Employment 7 of 14

14 EMPLOYMENT HOURS OF WORK DATE: April 22, 2013 To define the hours of work for on-site employees and corporate office employees. To establish the time and duration of working hours as required by work load, customer service needs and efficient management of personnel resources. PROCEDURE On-Site The normal work week for full-time on-site employees is Saturday through Friday. The normal work week is forty (40) hours consisting of eight (8) hours of work per day. The schedule of hours for full-time employees will be determined by the supervisor. The normal work week for part-time on-site employees is Saturday through Friday. The normal work week is twenty-five (25) hours consisting of eight (8) hours of work per day. The schedule of hours for part-time employees will be determined by the supervisor and will most often include holidays for weekends. Supervisors may schedule overtime when it is necessary. Employees are not permitted to work overtime without the prior approval of their supervisor. Lunch breaks are mandatory. Employees cannot skip lunch in order to leave early. Corporate Office The normal work week for corporate office employees is Monday through Friday, forty (40) hours per week consisting of eight (8) hours of work per day. Working an excess of 40 hours may be required from time to time. On Call Time There must always be one management and one maintenance employee on call. He or she must carry a pager or mobile phone at all times, have ready access to a telephone and be within thirty (30) minutes driving time of the property when on call. On call employees must be aware of SunRidge Management Group, Inc. s emergency instructions in the Operations Manual and have a complete list of emergency telephone numbers with them when they are on call. Revised 05/13/2015 Employee Handbook: Employment 8 of 14

15 EMPLOYMENT EMPLOYMENT CLASSIFICATIONS DATE: April 22, 2013 To define employment status classifications. It is the policy of this company to supplement the regular work force with temporary or part-time employees when needed because of periods of peak work load, employee absences or other situations as may be determined by management. Full-Time A full-time employee is an individual who works forty (40) hours per week. Regular full-time employees who are given temporary transfers are not considered temporary employees unless their job has been eliminated and only temporary employment is available. Part-Time A part-time employee is an individual who is hired for an indefinite period, but who works less than twenty-five (25) hours per week. Part-time employees are not entitled to any employee benefits, sick pay, or vacation benefits. Temporary A temporary employee is an individual who is to be employed no longer than ninety (90) days on a temporary basis. Temporary employees are not entitled to any employee benefits, sick pay or vacation benefits. If a temporary employee fulfills the terms of employment, the testing payback will not be enforced. Revised 05/13/2015 Employee Handbook: Employment 9 of 14

16 EMPLOYMENT EXEMPT/HOURLY EMPLOYEES DATE: September 12, 2008 To define which employees are exempt and which employees are hourly. It is company policy to pay employees by their exempt and hourly status. Certain employees will be exempt from overtime provisions. These employee exemptions apply to executive, administrative and professional employees. Exempt employees are expected to work forty (40) hours per week, eight (8) hours a day. All other employees are considered hourly employees and will be subject to minimum wage and overtime pay after physically working forty (40) hours per week. Part time or temporary employees will be granted time off but without pay Revised 05/13/2015 Employee Handbook: Employment 10 of 14

17 EMPLOYMENT ATTENDANCE/PUNCTUALITY/ABSENTEEISM DATE: September 12, 2008 To inform company employees of procedures relating to attendance requirements. It is company policy to require employees to report for work punctually as scheduled and to work all scheduled hours and any required overtime. Employees must notify their supervisor by phone as far in advance as possible, but no later than one (1) hour prior to start of work day, whenever they are unable to report for work. Employees must notify their supervisor as far in advance as possible whenever they know they will be late or must leave early. Such notification should include a reason for the absence and an indication of when the employee can be expected to report for work. Leaving a voice message, , messages to the answering service or messages to other employees is unacceptable. Unauthorized or excessive absences or tardiness will result in disciplinary action, up to and including termination. (See Disciplinary Guidelines for more specifics.) Employees are expected to report for work during inclement weather conditions if the company does not declare an emergency closing. If an employee does not show up for work wages will not be paid for that day unless the employee has pre-approval to work an extra day during the same pay period to make up the time. Otherwise, the employee can take a vacation day. If the employee does not want to take a vacation day, or has not accrued vacation time, wages will not be paid for that day. It is against company policy to advance sick or vacation time to employees or pay wages for work hours missed when employees do not have accrued time available. Employees who are absent from work and do not have any accrued sick or vacation hours will have that time deducted from their wages. Employees must obtain permission from their supervisor in order to leave the company premises during work hours. Employees who are absent from work without giving proper notice to the company are subject to termination. Employees who are absent from work on the second consecutive day, without giving proper notice to the company, will be considered as having voluntarily quit. Absence for incarceration is an unexcused absence. (See Disciplinary Guidelines.) Revised 05/13/2015 Employee Handbook: Employment 11 of 14

18 EMPLOYMENT RESIGNATION/TERMINATION DATE: September 12, 2008 To inform employees of the procedures relating to resignations and terminations. It is company policy to set specific rules as to the procedure for resignations by an employee. Resignation Employees who resign from the company are expected to give written notice of their intent to resign. The company requirement is to give a two (2) week notice. If notice is not given and/or not fulfilled, employees may forfeit any accrued vacation time at the discretion of the SunRidge president, except where state laws dictate otherwise. Management reserves the right to waive the two (2) week notice and permit immediate departure without pay. Termination The company may terminate employment at will. (Texas only. See Disciplinary Guidelines.) Employees may be terminated by the company with or without cause at any time. Severance Pay The company does not automatically pay severance pay. Employees may be considered eligible for severance pay if they have worked full time for at least a year and are permanently terminated because of: A permanent reduction in the work force by the company. The elimination of a job or position by the company. The sale of a property. This is considered termination. Bonus Commissions Commissions for leases who have moved in and for renewals that have been signed as of the last day of employment will be paid. Commissions for leases who have not moved in or for renewals that have not been signed as of the last day of employment will not be paid. Commissions cannot be transferred to another employee. Revised 05/13/2015 Employee Handbook: Employment 12 of 14

19 EMPLOYMENT DISCIPLINARY GUIDELINES DATE: September 12, 2008 To define the types of disciplinary action that may be taken in response to a violation of company Performance Guidelines. It is company policy that violation of the company standards of behavior and performance standards will result in disciplinary action. The following types of action may be taken depending on the seriousness of the situation. Informal Counseling/Verbal Warning An informal counseling session will be conducted by the supervisor when employee performance or conduct fails to meet specified requirements or normal business conduct. The problem is defined, corrective action identified and the probable results of inaction by the employee in correcting the problem outlined. This does count as a reprimand. Written documentation by manager is required. Written Warning and Counseling In the event of a repeated minor offense or problem, either of performance or conduct, the supervisor will counsel the employee on a formal basis. The employee receives a written Employee Reprimand that indicates the specific steps to be taken in correcting the problem and states its probable results if the corrective action is not accomplished. The employee reviews the Reprimand and may add written comments if desired. The form is signed by both the employee and supervisor, dated, and placed in the employee s file. If the employee refuses to sign, a notation will be made by the supervisor, however, it still counts as written reprimand. Termination The company reserves the right to immediately terminate employees who, either previous to or during employment, pled guilty to or are convicted of a crime such as possession, distribution, dispensing, exchanging, selling or manufacturing controlled substances, illegal drugs, marijuana, drug paraphernalia or inhalants, crimes against persons, theft, burglary or crimes of a sexual nature. Serious policy violations, such as drug policy violation, sexual harassment, discrimination, possession of weapons on-site, fighting, assault, theft, dishonesty, fraud, destruction of company/resident property, unpaid rent, unpaid utilities, violation of computer policy, etc., may result in immediate termination without warning or notice. (See also Living On-Site, if applicable.) Termination can occur within the initial ninety (90) day probation period without disciplinary action. Three (3) written/verbal warnings may result in termination. Revised 05/13/2015 Employee Handbook: Employment 13 of 14

20 EMPLOYMENT GRIEVANCE PROCEDURES DATE: September 12, 2008 To inform employees of their rights to appeal management decisions through a formal grievance process. It is company policy that employees should have an opportunity, when appropriate and practical, to present work-related complaints and to appeal management decisions through a grievance procedure. An appropriate grievance is defined as an employee s expressed feeling of dissatisfaction concerning any interpretation or application of a work-related policy by management, supervisors, or other employees. If the employee has a legitimate grievance, it must be presented to their immediate supervisor in writing. The supervisor will then discuss it with their supervisor. This company will attempt to resolve promptly all grievances that are appropriate for handling under this policy. Revised 05/13/2015 Employee Handbook: Employment 14 of 14

21 PERSONAL CONDUCT PERSONAL CONDUCT Revised 06/20/2011 Employee Handbook: Personal Conduct 1 of 11

22 PERSONAL CONDUCT DRUG-FREE WORKPLACE POLICY DATE: June 20, 2011 This Company has a strong commitment to provide a safe, secure and drug-free workplace for its employees and to establish programs and policies promoting high standards of employee health. Substance use or abuse by employees is prohibited and random drug screening will be used to detect and/or prevent substance abuse by employees. Company policy is reinforced by the federal Drug-Free Workplace Act mandating that certain employers adopt and enforce policies for drug-free work environments. DEFINITION: The most important aspects of the company s policy are that: (1) Illegal drug use or prescription drug abuse by employees is absolutely prohibited; and (2) Drug testing may be used to detect and/or prevent drug abuse by employees. For purposes of this policy, the term drugs includes alcoholic beverages, inhalants and illegal drugs, including marijuana and controlled substances. The term also covers prescription drugs under certain circumstances. Job Applicants Prior to employment, an applicant will be provided a copy of the company s drug-free workplace policy, and the applicant must agree to abide by it. After an employment offer and prior to becoming an employee, job applicants will be tested for drugs. At the time of the drug testing, applicants will be informed of the testing procedure and the consequences of positive results. The applicant will be given a consent and release form, stating that the testing procedures have been generally explained and that the applicant understands the test results will be released to the prospective employer and used to determine suitability for employment and to identify the drugs to be tested. If the applicant fails to sign the consent and release forms or refuses to be tested or if the test results are positive, the applicant may be denied employment. NOTE: Diluted specimen results will require immediate retesting, without notice, using a standard hair follicle screen. The cost of this test will be at the applicant s expense if the test results are positive. Employees Every employee is provided a copy of the company s drug-free workplace policy and the employee must agree to abide by it. Employees are expected to report to work without any impairment which might prevent them from behaving appropriately or performing their jobs safely and efficiently. Drug abuse by employees is absolutely prohibited. Revised 06/20/2011 Employee Handbook: Personal Conduct 2 of 11

23 PERSONAL CONDUCT Drug abuse means: Using or possessing alcoholic beverages while on the job or while using company equipment; Using alcoholic beverages while off the job or on call in a manner which adversely affects the employee s performance and conduct on the job or which poses a direct threat to the safety of others; Using any over-the-counter or prescription drugs while on or off the job or on call in a manner which adversely affects the employee s performance or conduct on the job, except when prescription drugs are taken as directed by the employees doctor; Using, possessing, distributing, dispensing, exchanging, selling or manufacturing controlled substances, illegal drugs, marijuana, drug paraphernalia or inhalants at any time, either on or off the job; Using company property or the employee s job or position to facilitate any of the above; or Violating any federal, state, or local law relating to alcohol or drug-related conduct. Supervisors who have reasonable suspicion that an employee has an unauthorized or unlawful involvement with alcohol, marijuana or controlled substances may ask questions and are required to gather information and refer it to the appropriate management personnel. In cases where reasonable suspicion exists, the company may search (and the employee consents to search) of the employee s locker, tool boxes, food and beverage containers, desk, file cabinets and other personal property such as purses or clothing and personal vehicles on company property. Searches of clothing will be conducted by a person of the same sex. Employees are required to cooperate in all searches. Every employee must immediately report to his supervisor any criminal convictions or guilty pleas by the employee involving drug abuse as defined above. Every employee must immediately report to his supervisor any incidents which the employee believes may involve drug abuse by another employee or any person on company property. Drug or Alcohol Testing During Employment When management has a reasonable suspicion that an employee is violating this policy, the employee may be asked to immediately report to a company-designated physician or medical clinic on company time and at company expense for a supervised drug and/or alcohol tests. The test results will be released to the company. The testing may involve urine tests, blood screens, and other appropriate procedures. The employee will sign all necessary consents or release forms for the testing. The employee will not dilute, switch, alter or tamper with urine or blood samples. If the employee refuses to consent or submit to the tests or has a positive test result, the employee will be subject to immediate discipline, up to and including employment termination. If an employee has a positive test result and is not terminated, the employee must sign and comply with a return-towork agreement and may be required to complete chemical or alcohol dependency evaluations as part of the procedures. Revised 06/20/2011 Employee Handbook: Personal Conduct 3 of 11

24 PERSONAL CONDUCT Whenever an employee has an on-the-job accident, injury or serious safety-related incident, the incident must be reported immediately. The company will require drug testing. At any time, the company may institute a random or universal drug testing program for all employees. In such event, the company will advise all employees of the testing procedures and the consequences of refusal to consent, refusal to submit to testing, or positive test results. Education and Treatment Programs If there are drug education, treatment, or medical rehabilitation programs available through the employer or through health care insurance (if any), an addendum to this company policy will contain a description of the programs and how an employee may request assistance or participation. The addendum, if any, will also describe any requirements for participation. Consequence of Violation Violation of the company s drug abuse policy will result in discipline, up to and including termination without warning or second chance and without severance pay or benefits. Termination of employment because of violation of the company s policy regarding drug use or abuse will be permanently recorded in the employee s personnel record. If requested, the company may inform a subsequent or prospective employer that the employee was terminated for violating the company s drug abuse policy. It may also result in denial of unemployment benefits under the state law. Revised 06/20/2011 Employee Handbook: Personal Conduct 4 of 11

25 PERSONAL CONDUCT DRESS CODE DATE: September 12, 2008 To advise employees that there are company requirements relating to the personal appearance of all employees. It is company policy that an employee s dress and grooming should be appropriate for the work situation. Office employees often have contact with the public and therefore represent the company in their appearance as well as by their actions. Good grooming and appropriate dress are an important part of the company s public image. In positions where uniforms are required, employees should ensure that uniforms are clean, ironed (if applicable) and crisp at all times. All clothing should be functional to the job requirements. The dress and grooming of on-site employees is to be governed by the requirements of safety and comfort. If an employee reports for work improperly dressed or groomed, the Manager should instruct the employee to return home to change clothes or to take other appropriate corrective action. The employee will not be paid until the employee returns to work appropriately dressed. Special dress codes may be required. These codes will be determined by your AVP. If a uniform is required for your position, the employee must wear it. It is the responsibility of the employee to see that it is clean, ironed (if applicable) and in good repair at all times. Name badges are required for all employees. Maintenance must wear picture name badges. Office employees must wear clip-on name badges provided by the Corporate Office. YOU ARE A PROFESSIONAL! MAINTENANCE PERSONNEL (MEN & WOMEN) All Maintenance personnel are required to wear clean uniforms daily. Belts must be worn with shirts tucked in. Hair must be styled and clean. Men should be clean shaven or facial hair must be neatly trimmed. Only SunRidge ball caps can be worn. (If a cap is worn it is considered part of the uniform.) Tattoos must be covered. Hair should be conservatively styled and clean. Conservative earrings are permitted. No other visible piercings are permitted. All clothing must be clean and pressed. Photo name badges are required. All new maintenance staff members must wear a solid color, logo-free shirt until uniforms are provided. Revised 06/20/2011 Employee Handbook: Personal Conduct 5 of 11

26 PERSONAL CONDUCT PROFESSIONAL DRESS CODE FOR MEN Either a suit or dress slacks and shirt is required. A belt must be worn along with matching shoes and socks. Collared dress shirt with a tie. Shirts must be tucked in. Hard-soled dress shoes are required. Shoes should be polished and in good condition. Hair should be conservatively styled and clean. Long hair must be kept in a ponytail. Facial hair should be neatly trimmed. Conservative earrings are permitted. Tattoos must be covered. All clothing must be clean and pressed. Name badges are required. NOT PERMITTED: Blue Jeans T-Shirts Flip-Flops Tennis Shoes (except with Summer Dress Code) Piercings (no other visible piercings except earrings) PROFESSIONAL DRESS CODE FOR WOMEN Suits, dresses and/or coordinated skirt/trouser/blouse ensemble is required. Unless specifically made to be worn un-tucked, all blouses/shirts must be tucked in. If hose are worn; no runners, patterns or decorations. Hard-soled dress shoes are required. Shoes should be polished and in good condition. If worn, make-up should be appropriately applied for day wear. Hair should be conservatively styled and clean. Conservative jewelry is permitted. Tattoos must be covered. All clothing must be clean and pressed. Name badges are required. NOT PERMITTED: Skirts shorter than 1 (one inch) above the top of the kneecap Any tight-fitting ensembles Tight or casual slacks Blue Jeans Casual tops or blouses exposing the midriff Any low-cut or low-back dresses See-through fabrics Flip-flop shoes, slide-style shoes, ankle wrap shoes and canvas shoes Piercings (no other visible piercings except earrings) Revised 06/20/2011 Employee Handbook: Personal Conduct 6 of 11

27 PERSONAL CONDUCT SUMMER DRESS CODE FOR MEN* Solid colored walking length shorts or casual work pants. Only SunRidge approved, tailored shirts. Shirts must be tucked in. Clean, non-decorative tennis shoes. Hair should be conservatively styled and clean. Long hair must be kept in a ponytail. Facial hair should be neatly trimmed. Conservative earrings are permitted. Tattoos must be covered. All clothing must be clean and pressed. Name badges are required. NOT PERMITTED: Shorts shorter than 1 (one inch) above the top of the kneecap Blue Jeans T-Shirts Flip-Flops Piercings (no other visible piercings except earrings) SUMMER DRESS CODE FOR WOMEN* Solid colored walking length shorts, casual work pants or Capri pants. Only SunRidge approved tailored shirts or blouses. Unless specifically made to be worn un-tucked, all blouses/shirts must be tucked in. Clean, non-decorative tennis shoes. If worn, make-up should be appropriately applied for day wear. Hair should be conservatively styled and clean. Facial hair should be neatly trimmed. Conservative jewelry is permitted. Tattoos must be covered. All clothing must be clean and pressed. Name badges are required. NOT PERMITTED: Shorts shorter than 1 (one inch) above the top of the kneecap Any tight-fitting ensembles Blue Jeans Shirt, casual tops or blouses exposing the midriff T-Shirts See-through fabrics Flip-flop shoes, slide-style shoes, ankle wrap shoes and canvas shoes Piercings (no other visible piercings except earrings) *SUMMER DRESS CODE IS ALLOWED FROM MAY 1 ST THRU SEPTEMBER 30 TH. Revised 06/20/2011 Employee Handbook: Personal Conduct 7 of 11

28 PERSONAL CONDUCT SMOKING DATE: September 12, 2008 To notify all employees of company smoking policy. Smoking on company premises is discouraged. Smoking is not permitted in work areas to which customers have access or in such other areas as may be designated by management. On-site employees cannot smoke in any apartment, shop, office or common area. Smoking is permitted in designated smoking areas only. Employees must appropriately dispose of cigarette butts. Revised 06/20/2011 Employee Handbook: Personal Conduct 8 of 11

29 PERSONAL CONDUCT SEXUAL HARASSMENT DATE: September 12, 2008 To notify employees that this company does not allow sexual harassment in the workplace. It is company policy to severely discipline any employee engaging in any type of sexual harassment. All employees have the right to an atmosphere free of sexual harassment. Sexual harassment in the workplace is illegal, demeaning to employees, counter-productive, and therefore strictly prohibited. Sexual harassment is described but not limited to such acts as sexual comments, touching, advances, propositions, verbal abuse, offensive jokes, pictures, cartoons, hand gestures, or suggestive body movements. Persons engaging in such activity will be subject to severe disciplinary action, which may include termination. Employees must require that the person(s) engaging in such activity discontinue their offensive conduct. Employees who feel they have been subjected to such prohibited conduct are required to report it to their supervisor or an officer of the company. All supervisors must document and report any and all sexual harassment claims. Any employee making a false complaint will be subject to discipline. All complaints will be handled confidentially. Revised 06/20/2011 Employee Handbook: Personal Conduct 9 of 11

30 PERSONAL CONDUCT STANDARDS OF CONDUCT DATE: September 12, 2008 To inform employees of company standards of conduct and the results of violating these standards. Groups of people who are working together for any purpose require certain guidelines pertaining to their conduct and relationships. In any operation, employees must be aware of their responsibilities to the company and to fellow employees. It is the intention of this company to constructively approach disciplinary matters to insure that actions which interfere with an employee s job are promptly stopped. Violations of personal conduct rules will result in one of the following forms of disciplinary actions: verbal warning, written warning or discharge. In arriving at a decision for proper action, the seriousness of the infraction, the past record of the employee and the circumstances surrounding the matter will be considered. Although it is impossible to identify every possible violation of standards of conduct, the following is a partial list of infractions which may result in disciplinary actions: Accepting bribes, loans, entertainment, fees or gifts from a supplier, a competitor or anyone who has business transactions with SunRidge. Working for competitors or competing with SunRidge in any area of business in which SunRidge presently has a commercial interest. Disclosing or using any SunRidge confidential information. Investing in securities of any supplier, competitor or other party with whom SunRidge does business (excluding ownership of one percent (1%) or less of the stock of publicly traded companies). Falsification of company records, including Employment Application. Failure to disclose guilty pleas or convictions for crimes such as possession, distribution, dispensing, exchanging, selling or manufacturing controlled substances, illegal drugs, marijuana, drug paraphernalia or inhalants, crimes against persons, theft, burglary or crimes of a sexual nature, previous to or during employment. Revised 06/20/2011 Employee Handbook: Personal Conduct 10 of 11

31 PERSONAL CONDUCT CONFLICT OF INTEREST DATE: September 12, 2008 To inform employees of instances which constitute conflict of interest. A conflict of interest exists when a SunRidge Management Group employee cannot conduct an arm s length transaction with a vendor or contractor. Company policy is such that failure to make a disclosure of any conflict of interest will be grounds for immediate termination. Anything compromising the employee s objectivity in selecting the vendor or contractor can contribute to conflict of interest, whether the nature of the potential compromise is by virtue of: Family relationship, whether by blood or marriage. Ex-employee relationship, wherein an ex-employee is given vendor status solely on the basis of having been a good employee and without competing with other vendors in the selection process. Consideration such as money or gifts given to a SunRidge employee by the vendor. Current employment by SunRidge, while also providing services as a vendor or contractor. Consideration given to the vendor by the SunRidge employee or the property which can be interpreted to imply a close relationship, such as free office space or apartment usage without payment to SunRidge. Any other close relationship, such as friendship, in which the vendor received business on the sole basis of the relationship without competing with other vendors in the selection process. Employment of a relative by an employee must be approved by the President and made part of the employment record. Employees may not accept anything of value from any person, group of persons or organization which seeks to do business with the company. Revised 06/20/2011 Employee Handbook: Personal Conduct 11 of 11

32 PAY PRACTICES PAY PRACTICES Revised 02/25/2010 Employee Handbook: Pay Practices 1 of 3

33 PAY PRACTICES PAY PROCEDURES DATE: September 12, 2008 To inform on-site and corporate employees of the pay procedures of this company. It is company policy to pay employees by check on a regular basis and in a manner so that the amount, method and timing of such payments comply with applicable laws or regulations. On-site employees On-site employees are paid semi-monthly. Checks are normally issued after 3:00 PM on the 8 th and 23 rd of each month. If the pay date falls on Saturday, Sunday or holiday, checks will be issued on the Friday before. Overtime, vacation, sick time, etc. that is not paid for the current period due to the time element of processing payroll will be treated as adjustments on the next pay period check. Full-time employees will receive overtime pay for all hours worked in excess of forty (40) physically worked hours in a single work week at a rate of time and one-half the regular pay rate. Overtime requires the advance approval of a supervisor. Compensating time-off may be granted if it is taken within the same work week in which the overtime was incurred. Overtime must be reported on the semi-monthly time sheet with the description on an overtime sheet attached. Corporate employees Corporate employees are paid bi-monthly. Checks are normally issued on the first (1 st ) and fifteenth (15 th ) of each month. If the pay date falls on Saturday, Sunday or holiday, checks will be issued on the Friday before. Deductions Payroll checks have legal obligations and require mandatory deductions. Deductions include: Social Security State tax (if applicable) Medicare Court ordered garnishments Selected voluntary medical benefits: Health, Disability, Dental, Group LTD, Vision, AFLAC, Life If terminated, additional deductions may be taken from your final pay: Pre-employment testing (if terminated prior to six (6) months.) Any monies owed to the company such as rent, utilities, stolen money, overpayment of salary, uniforms, missing equipment and/or petty cash, eviction or social services funds. Revised 02/25/2010 Employee Handbook: Pay Practices 2 of 3

34 PAY PRACTICES RECORDING OF TIME WORKED DATE: March 10, 2010 To define recording of time worked for on-site employees. Employees are required to complete an individual time sheet showing the daily hours worked for a two-week period. On-site employees should record time worked accurately at the close of each work day. Employees are to record their starting time, time out for lunch, time in from lunch, quitting time, and total hours worked for each work day. Employee time-sheets are to be checked and signed by the employee and their supervisor. Unworked time for which an employee is entitled to be paid (paid absences, paid holidays or paid vacation time) should be entered by the supervisor. Authorized overtime must be pre-approved and listed on a bi-weekly time sheet as well as an overtime sheet with an explanation of time worked descriptions. Falsification of time sheets is cause for immediate termination. Revised 02/25/2010 Employee Handbook: Pay Practices 3 of 3

35 ABSENCE FROM WORK ABSENCE FROM WORK Revised 12/17/2015 Employee Handbook: Absence From Work 1 of 11

36 ABSENCE FROM WORK VACATION DATE: September 12, 2008 To define time-off from regular work hours. It is company policy to grant time off from work under specific rules and guidelines. VACATION It is corporate policy that full-time employees be considered eligible for a paid vacation as follows: All Employees are eligible after six (6) months employment and is accrued as follows: 1 to 5 years employment 3.34 hours per pay period 2 weeks 5 to 10 years employment 5.00 hours per pay period 3 weeks 10+ years employment 6.67 hours per pay period 4 weeks If you become an employee of the company through acquisition of a new property, you will be considered a new employee unless otherwise specified by the owner. Part-time employees and/or individuals hired as temporary or seasonal help are not entitled to accrue or receive paid vacation leave. Eligible employees must complete a Personnel Action Form at least thirty (30) days in advance for approval. On-site employee vacations are approved by the Manager. The Manager s vacation is approved by the Assistant Vice President (AVP). Corporate employee vacations are approved by the SunRidge President. Vacation will be approved on the basis of work load, seniority and earliest request. The company reserves the right of final approval and alterations to all vacation schedules. When a holiday falls during an employee s vacation, the holiday hours will not be deducted from the employee s accrued vacation time. Vacation pay-out will not be granted in lieu of taking time off. If an employee is terminated or resigns before six (6) months of continuous employment, the employee is not entitled to vacation compensation. If an employee is terminated or resigns after six (6) months, it is up to the discretion of the SunRidge President on whether accrued vacation time will be paid, except where state laws dictate otherwise. Only one (1) week of vacation can be carried forward to the following year after an individual s hire date anniversary. Therefore, if an employee lets his/her vacation build up from year to year, he/she will lose all but one (1) week of their accrued time when vacation balances are adjusted. All personnel are encouraged to take their vacations. Accrued vacation is per employee anniversary date, not the physical year. Revised 12/17/2015 Employee Handbook: Absence From Work 2 of 11

37 ABSENCE FROM WORK An employee cannot take more than one week s vacation at a time unless this time is applied toward approved leave of absence. It is against company policy to advance vacation time to employees or pay wages for work hours missed when employees do not have accrued time available. Employees who are absent from work and do not have any accrued vacation hours will have that time deducted from their wages. Revised 12/17/2015 Employee Handbook: Absence From Work 3 of 11

38 ABSENCE FROM WORK SICK DATE: September 12, 2008 To define time-off from regular work hours. It is company policy to grant time off from work under specific rules and guidelines. SICK LEAVE It is corporate policy that paid time off be granted to full-time employees who must be absent from work due to illness. Part-time employees and/or individuals hired as temporary or seasonal help are not eligible to accrue or entitled to receive paid sick leave. Sick leave is accrued at a rate of 2.67 hours per pay period for an annual total of eight (8) days per year. Sick leave cannot be used until the employee has completed and passed ninety (90) days of continuous employment. Sick leave continues to accrue from year to year until an employee reaches an accrual of forty (40) days or 320 hours. At this point, no further accrual will take place in excess of forty (40) days or 320 hours. An employee must notify his or her immediate supervisor of any absence due to illness at least one (1) hour prior to the scheduled work day so that arrangements can be made to cover the work. s, telephone messages, messages to the answering service or messages to other employees are not acceptable notification. Failure to notify your immediate supervisor will result in disciplinary action. In order for an employee to receive sick leave compensation for three (3) or more consecutive days, a statement must be obtained from a qualified physician and given to their immediate supervisor. Employees are urged to make doctor and dental appointments during their lunch time or before or after work whenever possible. In the event it is necessary to take time off during business hours for an appointment, the time may be charged against the employee s accumulated sick leave, provided there is sufficient sick leave time available. With prior approval of the immediate supervisor, the employee may work the necessary hours to make up for the time missed. Sick days are for the employee s personal illness only. Abuse of sick day policy will necessitate a payroll deduction. In no case will payment be made for accrued sick leave at the time of an employee s termination. It is against company policy to advance sick time to employees or pay wages for work hours missed when employees do not have accrued time available. Employees who are absent from work and do not have any accrued sick hours will have that time deducted from their wages. Revised 12/17/2015 Employee Handbook: Absence From Work 4 of 11

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