Pharmacist Payroll Policies. Administrative Guide

Transcription

1 Pharmacist Payroll Policies Administrative Guide

2 Administrative Payroll Guide CVS Rx Services, Inc. Revised: November

3 Table of Contents Definitions... 3 Overview of Pharmacy Payroll Practices...6 Premium Pay (PR5)... 7 Pharmacist Night Rate (RNR)... 8 Swapping Shifts... 9 Unpaid Time Off: Exempt Pharmacists...10 Short Week / Long Week Rotations...11 Pharmacist Payroll Expectations...12 Holiday Pay Policy and Procedures (Exempt Pharmacists Only)...15 Sick Pay Policy and Procedures (Exempt Pharmacists only)...17 Vacation Pay Policy and Procedures (Exempt Pharmacists Only)...18 Appendix A- Payroll Summary Sheet Examples of Pharmacist Payroll Hours Entry...23 Payroll Training Examples

4 Definitions Key Terms The following list summarizes the meanings of Pharmacist Payroll terms as they are used in this Guide. TERMS The Company CVS Rx Services, Inc., which employs all Pharmacists who work in CVS/pharmacy retail stores. Exempt Pharmacist A Pharmacist scheduled to work in a pharmacy for an average of 30 hours or more per week is classified as an Exempt Pharmacist. An Exempt Pharmacist is paid a Base Salary, which, in general, is intended to compensate the Exempt Pharmacist for all hours worked during a pay period. However, it may also be possible for an Exempt Pharmacist to earn additional pay in certain limited situations, as described in this Guide. Non-Exempt Pharmacist A Pharmacist scheduled to work in a pharmacy for an average of less than 30 hours per week is classified as a Non-Exempt Pharmacist. A Non-Exempt Pharmacist is paid for hours worked, and is paid overtime in compliance with applicable laws. Exempt Status The term Exempt refers generally to a colleague who is exempt from (not covered by) the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA). Pharmacists are highly educated colleagues with advanced degrees who consult with customers and patients regarding their healthcare needs on a daily basis. Due to the expertise, education level, and professionalism required to be a pharmacist, their job duties fall into the professional exemption of the FLSA. California Pharmacist Pharmacists located in California are treated as non-exempt pharmacists, consistent with state law, and are paid on an hourly basis. California Pharmacists are paid on a weekly basis and punch in and out at the POS. This Guide is not applicable to California Pharmacists. California Pharmacists should refer to the California Pay Policy in the Appendix. Union Pharmacist Union Pharmacists are Pharmacists who are covered by a collective bargaining agreement. Union Pharmacists should refer to the applicable collective bargaining agreement. This Guide will apply except where it conflicts with existing practice under the collective bargaining agreement. Puerto Rico Pharmacist Pharmacists located in Puerto Rico are referred to in this Guide as Puerto Rico Pharmacists. Pharmacists in Puerto Rico follow the exempt Pharmacist guidelines, except where noted 3

5 Definitions (continued) TERMS Base Salary An Exempt Pharmacist s Base Salary is determined by multiplying his or her Base Hours per week times his or her Base Rate. Every Exempt Pharmacist receives his or her Base Salary on a bi-weekly pay period schedule. Base Hours The average number of hours an Exempt Pharmacist will be scheduled to work in a pharmacy per week, as determined by the Pharmacy Supervisor and/or District Manager. Base Work Schedule The days and hours identified as the standard work schedule for Exempt Pharmacists, which runs Sunday through Saturday, determines their regular weekly schedule. A Scheduled Work Day is a day that falls on the Pharmacist s normal rotation. 4

6 Definitions (continued) TERMS Premium Pay (PR5) A $6.00 per hour premium, in addition to Base Rate, which is paid to an Exempt Pharmacist for all hours scheduled and worked over 44 hours in a given week Premium Pay is denoted by the pay code PR5. Premium Pay is described further in the Premium Pay section of this Guide. Hours Under Base (HUB) Hours Over Base (HOB) Short Week/ Long Week Rotating Schedule HUB is a pay code that identifies hours that are automatically paid when an Exempt Pharmacist submitted hours are less than their Base Hours, in a given pay period The HUB pay code ensures that an Exempt Pharmacist receives his/her full Base Salary each week, even if he/she has not worked Base Hours or submitted an approved reason for time off. Repeated HUB payments to an Exempt Pharmacist may indicate poor attendance (if an Exempt Pharmacist does not have an approved reason for failing to work a scheduled shift) or a change in business need (if the business no longer needs the Exempt Pharmacist to work the same number of Base Hours). HUB payments therefore should be monitored closely to determine whether disciplinary action and/or adjustment to Base Hours may be necessary. Exempt Pharmacists cannot be asked or required to make up or owe back HUB hours paid outside of the pay cycle in which it was applied Scheduled hours worked in excess of Base Hours in a pay period are noted using the pay code HOB. HOB hours are paid at the Exempt Pharmacist s Base Rate, and they constitute a payment in addition to the Base Salary. Scheduled hours worked filling extra shifts in stores are eligible for HOB payments. HOB is not to be used to capture extra time during scheduled shifts (e.g. when an exempt pharmacist may stay a little later after a scheduled shift ends) Within a bi-weekly pay cycle, Exempt Pharmacists may establish a regular schedule in which they work less than their Base Hours in week 1 and over their Base Hours in week 2. The total hours for the bi-weekly pay cycle must be equivalent to their Base Hours times 2. This type of regularly recurring work schedule is called a Short Week/Long Week Rotation, and is described in the Short Week/Long Week section of this Guide. Swapping Shifts Swapping Shifts refers to an arrangement between two Exempt Pharmacists to trade hours or full shifts within one two-week pay cycle. Rules for swapping shifts are described in the Swapping Shifts section of this Guide. 5

7 Overview of Pharmacist Payroll Policies Exempt Pharmacists are Salaried Exempt Pharmacists are those Pharmacists who are scheduled to work an average of 30 hours or more each week in a pharmacy. Every Exempt Pharmacist receives his or her Base Salary each bi-weekly pay period, and may also be eligible to earn additional pay in certain limited situations. Exempt Pharmacists are not paid by the hour. In general, an Exempt Pharmacist s Base Salary is intended to compensate the Pharmacist for all hours worked during the pay period, whether those work hours involve time on the bench, administrative work, completing or conducting training, or other duties as required by business needs. An Exempt Pharmacist s Base Salary is set by multiplying the average number of hours a Pharmacist will be scheduled to work per week (his or her Base Hours), times his or her Base Rate. Once set, the Base Salary remains consistent, although work hours typically vary week to week. Base Salary (Base Hours and/or Base Rate) is subject to periodic review during employment. As exempt, salaried professionals, Exempt Pharmacists are expected to use their judgment as to the total time they need to work in order to ensure the smooth operation of the pharmacy where they are scheduled. It is not unusual for an Exempt Pharmacist to arrive at his or her pharmacy before a scheduled shift, and to stay after the end of a scheduled shift. The Base Salary is intended to compensate the Exempt Pharmacist for any additional time worked before or after a scheduled shift. Exempt Pharmacists may also be eligible for pay in addition to Base Salary in certain limited situations, which are described in this guide. (See sections on Premium Pay (PR5), Pharmacist Night Rate (RNR), and Hours Over Base (HOB).) Non-Exempt Pharmacists are Paid Hourly Non-Exempt Pharmacists are those Pharmacists who are scheduled to work an average of less than 30 hours on the bench each week. Unlike Exempt Pharmacists, they do not receive a Base Salary. A Non-Exempt Pharmacist is paid for hours worked, and is paid overtime in compliance with applicable laws. Hours of work may vary week to week. It is important for every Non-Exempt Pharmacist to ensure that he or she records and is paid for all time actually worked. 6

8 Premium Pay (PR5) Review the Purpose of PR5 As part of our commitment to the Value Proposition for Pharmacists, CVS RX SERVICES, INC. is committed to sustaining a competitive total rewards package. Premium Pay (PR5) is designed to be an additional incentive for Exempt Pharmacists when they fill additional shifts in stores and thereby work over 44 hours per week (excluding long weeks for pharmacists working the long week/short week schedule described below). CVS RX SERVICES, INC. offers the premium as a way to encourage pharmacists to pitch in and cover shifts that may otherwise be difficult to fill. Identify Who is Eligible for PR5 All Exempt Pharmacists are eligible for Premium Pay. Exempt Pharmacists will be eligible for Premium Pay if they work more than 44 hours in a week filling shifts in a store even if their base is greater than 44. If an Exempt Pharmacist s base is greater than 44, the Base Salary will include Premium Pay for hours over 44. For example, if their weekly base is 46 hours and the Pharmacist works his/her base, Base Salary will be paid including Premium Pay for 2 hours. Know the Hours Eligible for PR5 The following criteria is used to determine which hours are eligible for PR5: Earnings associated with filling shifts in the pharmacy are eligible for Premium Pay. Non-worked hours such as vacation, holiday, sick, funeral, etc., do not count toward the 44-hour threshold and are not eligible for Premium Pay. Hours spent in meetings, in training, or in non-productive time are compensated through the pharmacist s salary, do not count toward the 44-hour threshold, and do not count toward Premium Pay eligibility. Swapped shifts do not count for Premium Pay. How Short / Long Week Rotations Affect PR5 If a Pharmacist works a short/long week rotation, the following guidelines apply regarding PR5: Pharmacists do not receive Premium Pay when working the long week of a Short Week/Long Week Rotation, unless their base is greater than 44 or unless they work more hours than their biweekly base. Pharmacists should continue to submit Base Hours for both long and short weeks to avoid unearned Premium Pay. 7

9 Pharmacist Night Rate (RNR) Application of the Night Rate * National Standard The differential rate (Pharmacist Night Rate) is only for Pharmacists working the overnight shift in a 24-hour location. The Pharmacist Night Rate is not used in all markets and is specific to each market. Identify Who is Eligible for RNR Review the following key points regarding RNR eligibility: Eligibility for, and payment of, RNR begins from 12:00 am through shift-end. For example, if a shift is from 7:00 pm to 7:00 am, the Pharmacist will receive RNR for 7 hours (12:00 am to 7:00am). When sick or on vacation, the night differential will not be paid. RNR is not to be utilized when the night adjustment has been reflected in the Pharmacist s hourly rate or salary and may not be used when the Pharmacist is covered by a different market-specific overnight plan (e.g., 72/80 Plan). 8

10 Swapping Shifts Know the General Rules for Swapping Shifts Swapping Shifts refers to an arrangement between two pharmacists to trade hours or full shifts within one pay cycle. Swapped shifts should not result in HUB, HOB, or Premium Pay for Exempt Pharmacists. It also should not result in overtime for Non-Exempt Pharmacists. All swaps of more than two consecutive shifts must be pre-approved by the Pharmacy Supervisor and/or District Manager. Shifts may not be swapped during the year as a means to take time off (saving vacation hours) with the intent to collect unused vacation hours at year end. Know How to Submit Time Exempt Pharmacists should not record swapped shifts Non-Exempt Pharmacists should accurately record their hours worked. 9

11 Unpaid Time Off: Exempt Pharmacists Know the Guidelines for Taking Unpaid Time Off The table below outlines the guidelines when a Pharmacist has requested unpaid time off: Time Period Less than one week Payroll Guidelines Exempt Pharmacists cannot take a shift off as unpaid. As a exempt professional, with very limited exceptions, a Exempt Pharmacist will be paid a minimum of their Base Salary every pay period. You can swap with another Pharmacist (within the same pay cycle) or use vacation time if you need to take a day off. Full week Exempt Pharmacists can take a full week off without pay if approved by their supervisor. NOTE: This may impact your exempt status and should be carefully considered prior to taking the time off. If you take a full week off and no time is submitted, you will not be paid for the week. You may not swap time if you expect more than 1 week off. In this circumstance, you should request a personal leave of absence or other leave pursuant to the CVS RX SERVICES, INC. Leave of Absence policy. Leaves of absences can be requested via myhr (# ), or log onto their myhr profile (myhr.cvs Rx Services, Inc..com) to apply Unpaid Leave of Absence (LOA) Exempt Pharmacists taking a leave of absence pursuant to the CVS RX SERVICES, INC. Leave of Absence policies should refer to the applicable leave policy for guidance. 10

12 Short Week / Long Week Rotations Define a Regularly Recurring Short/Long Week Rotation Exempt Pharmacists may establish a regular schedule in which they work less than their Base Hours in week 1 and over their Base Hours in week 2 of a bi-weekly pay cycle. The total hours for the bi-weekly pay cycle must be equivalent to their Base Hours times 2. This program is not intended to be sporadic in nature but must be a regularly recurring schedule established in agreement with the Pharmacy Supervisor. Schedule Vacations Review the guidelines below regarding scheduling vacation time: Exempt Pharmacists may not schedule their vacations so that all or a majority of the vacation time occurs during the long week. Vacation time should be spread evenly between short and long weeks. Exceptions must be approved by the Pharmacy Supervisor. Know How to Submit Time A short week/long week rotation worked in accordance with the schedule should not result in HUB for the short weeks or HOB for the long weeks. Exempt Pharmacists should indicate Base Hours if a rotating schedule is worked (e.g., if the Pharmacist works a schedule of 30 hours in week 1 and 50 hours in week 2, Base Hours of 40 should be reported each week). Additional hours worked (e.g., picking up an extra shift during the short week) should be reported in the week in which the hours were worked. When an event such as a holiday, vacation, sick or funeral occurs, it is important to subtract the hours not worked from the Base Hours schedule instead of the short or long week schedule. This prevents inaccurate payroll reporting. 11

13 Pharmacist Payroll Expectations Roles & Responsibilities There are several areas of responsibility to ensure the payroll process is accurate and complete. An overview of this process is provided in the table below. Pharmacy Scheduler Pharmacy Supervisor & District Manager ExemptExempt (FT) Floater Pharmacist Maintains designated Market schedule On a weekly basis, completes Exempt floater pharmacist payroll if applicable Raise issues to Pharmacy Supervisor related to schedules and payroll Ensures appropriate district scheduling to fulfill business requirements Follows up on any scheduling questions or concerns Follows up on any payroll concerns Communicates Graduate Interns schedule to store management, if necessary Works with Pharmacy Scheduler to support district scheduling needs Informs Pharmacy Supervisor of any changes in schedule or any special hours to be reported. All changes to schedule must be reported to the Pharmacy Supervisor at least 48 hours in advance, when feasible. Non exempt Pharmacists and Non exempt Floater Pharmacists NOTE: The Scheduler fills out the Payroll Sheet for Exempt floater pharmacist s payroll where applicable. In select markets, hours will be recorded via the punch-in and out process at POS following the same procedures as hourly In other markets, hours will be recorded via the Payroll Summary Sheet. Continued on next page 12

14 Roles & Responsibilities Continued Exempt Pharmacist Interns, Graduates Store Manager/ Asst. Store Manager/ Scheduler Weekly submission: Pharmacist Payroll Summary Sheets must be submitted on a weekly basis. General: Exempt Pharmacists record Base Hours worked, any vacation time or sick time, and additional shifts worked on the Pharmacist Payroll Summary Sheet. o Home Store: Hours in the Pharmacist s home store should be recorded at the home store. Hours over base should be recorded in the home store (unless the shift was a swapped shift, in which case it should not be recorded). Vacation and sick hours should be recorded at the home store. o Hours worked in another store: Hours worked at another store should be recorded at that store; provided that if the hours are being reported to an Admin, they may be recorded on one sheet. o Holiday pay for Exempt Pharmacists is automatically added by Workbrain and does not need to be recorded on the Pharmacist Payroll Summary Sheet. o Total the Pharmacist Payroll Summary Sheet and provide it to Front Store Management no later than Saturday or as directed by the Pharmacy Supervisor or District Manager. o The only time a Exempt Pharmacist should be reporting hours less than Base Hours is if the Pharmacist actually worked less than their agreed-to Base Hours between the two weeks within the payroll cycle. Non-store hours: Meeting time, training time, and other time other than filling shifts in a store are captured in the Exempt Pharmacist s salary and should not be recorded as additional hours on the Pharmacist Payroll Sheet. Long week/short week rotations: Exempt Pharmacists should indicate Base Hours if a rotating schedule is worked (e.g., 30 hours in week 1, 50 hours in week 2; Base Hours of 40 should be reported each week). Swapped Shifts: Swapped shifts should not be recorded on the Payroll Summary Sheet. Hours are recorded via the punch-in and out process. Ensure Pharmacist Hours reported weekly are equivalent to actual hours worked by each designated Pharmacist. Ensure that all pharmacy shifts have been captured in the total pharmacist hours reported to ensure that all Pharmacist time has been entered and paid appropriately (i.e., there is no missing time). Continued on next page 13

15 Pharmacist Payroll Expectations, Continued Know the General Expectations Review the general expectations associated with Pharmacist payroll below: Falsification of payroll is a violation of our company policies and may result in disciplinary action up to and including immediate termination. Exempt Pharmacists must accurately record any time that affects HUB, HOB, Premium Pay, sick time, or vacation. Non exempt Pharmacists must ensure that all time reported is an accurate reflection of hours worked. Pharmacists are highly encouraged to use their eligible vacation. All vacation should be taken within the calendar year unless otherwise approved by the Pharmacy Supervisor and/or District Manager. The Pharmacy Supervisor, in coordination with the Pharmacy Scheduler, approves all floater coverage changes. Pharmacists should not arrange floater coverage themselves. All Pharmacist Payroll Summary Sheets are reviewed and provided to the Store Manager/Assistant Store Manager by the pharmacist on duty no later than Saturday unless otherwise directed by the DM/PS. Graduate Intern hours approved by the Pharmacy Supervisor and/or District Manager are billed to special hours code ICH. Workbrain will cap the Graduate Intern budget at 195 hours per intern. 14

16 Holiday Pay Policy and Procedures (Exempt Pharmacists Only) Eligible Employees This policy applies to all pharmacists except: Union Pharmacists California Pharmacists Puerto Rico Pharmacists Recognized Holidays CVS RX SERVICES, INC.-recognized holidays vary by market. Pharmacists should refer to the holiday schedule for their market. HOL: Holiday Pay (nonworking time) All Exempt Pharmacists will automatically receive an 8-hour Holiday benefit for each CVS RX SERVICES, INC./pharmacy recognized holiday. This holiday pay is referred to as HOL. The 8-hour HOL will be included in the calculation of the Exempt Pharmacist s Base Hours prior to the inclusion of HUB. To receive HOL, the Exempt Pharmacist must be in regular pay status (i.e. not on a leave of absence, terminated, or using sick pay) for the last workday before the holiday and the first workday after the holiday. An employee may use vacation time on the day before or the day after the holiday and still receive HOL. See Pharmacist Payroll Summary Sheet for specific detail (Appendix A). Non exempt Pharmacists and any other non exempt pharmacists are not eligible for HOL. For the Christmas holiday, exempt pharmacists will automatically receive an 8-hour Holiday benefit (HOL) for Christmas Day in addition to any hours worked. Exempt Pharmacists will be eligible for additional holiday hours (*in addition to the 8-hour holiday benefit) if: The Exempt Pharmacist works more than 8 hours on Christmas and/or The Exempt Pharmacist works on Christmas Eve after 6 pm OHL and OT2 (Working Time on Holidays) Non exempt Pharmacists are eligible for extra incentive (OHL) pay for time worked on a CVS RX SERVICES, INC. holiday but are not eligible for HOL. OHL is equal to the Non exempt Pharmacist s hourly rate times 1.5. OHL applies to those hours worked by the Non exempt Pharmacist on the calendar workday that CVS RX SERVICES, INC. recognizes as the holiday in their market. If a shift begins on the day before a holiday and continues into the holiday, only the hours that are worked on the actual calendar day of the holiday as designated by CVS RX SERVICES, INC. are eligible for OHL. For the Christmas holiday, OT2 is used which is 2 times the Non exempt 15

17 Pharmacist s hourly rate for hours worked on the holiday (Christmas Eve 6pm through midnight Christmas Day). Exempt Pharmacists are not eligible for OHL time 16

18 Sick Pay Policy and Procedures (Exempt Pharmacists only) Anytime a colleague is out 5 or more consecutive days for personal illness, they are required to apply for Short Term Disability (STD). There is a 5 day waiting period for STD. After the waiting period, if eligible, they are paid 60% for up to 26 weeks. (State sponsored disability laws may vary.) Sick pay is a benefit provided to Exempt Pharmacists to ensure that they are able to take needed days off for personal illness without causing an inaccurate use of HUB. Sick pay is not intended to be used to allow the Exempt Pharmacist to earn HOB or Premium Pay. If a Pharmacist will be absent due to illness, he/she must report the absence to the Pharmacy Scheduler and Pharmacy Supervisor prior to the start of the shift. Failure to report the absence, even if the shift is already covered, may result in disciplinary action. If an Exempt Pharmacist ends up working his/her full Base Hours during the bi-weekly pay period in which they were absent due to illness by filling other shifts, then no Sick hours should be reported on the Payroll Summary Sheet. The absence must still be reported to the Pharmacy Scheduler and Pharmacy Supervisor for accurate reporting, however. If the Exempt Pharmacist does not work his/her full Base Hours during the bi-weekly pay period, then Sick should be recorded on the Payroll Summary Sheet as the number of hours taken as Sick with the balance of the Exempt Pharmacist s Base Hours recorded as Regular to bring them up to Base Hours. o Sick hours should be recorded on the Payroll Summary Sheet in the second week, only if Base Hours are not otherwise met. o See Example 8 in Appendix A. The maximum consecutive Sick pay may not exceed 5 days. If the absence will continue for 5 or more consecutive days, the Pharmacist must contact myhr (# ), or log onto their myhr profile (myhr.cvs Rx Services, Inc..com) to apply The company reserves the right to limit sick pay. 17

19 Vacation Pay Policy and Procedures (Exempt Pharmacists Only) Eligible Employees This policy applies to all pharmacists except: Union Pharmacists California Pharmacists Puerto Rico Pharmacists Non exempt Pharmacists (except in Illinois) Vacation Accrual A summary of the CVS RX SERVICES, INC. Caremark Vacation Policy, which has been taken from the Weekly Bi-Weekly Exempt Summary, all states excluding CA and the Operation Manual Vacation Policy Exempt and Non exempt regarding vacation accrual, is provided below. Accrual rates are adjusted two times per year (generally in January and July) and are based on the Base Hours in effect during the preceding six-month period. Exempt colleagues (who work a regularly work a minimum of 30 hours per week) are eligible for the CVS RX SERVICES, INC. Vacation Plan (see schedule located below) on the first of the month following six months of continuous service. Annual vacation eligibility (allocation) for an employee is determined at the time of eligibility. The amount of time is calculated based on the portion of the calendar year for which the allocation is being made. Length of Continuous Service First of the month following six months of continuous service First of the year following six months of continuous service Four full calendar years of service Fourteen full calendar years of service Vacation Weeks per Calendar Year See schedule below 2 weeks 3 weeks 4 weeks Vacation time is calculated once per year either on January 1or at the point of eligibility. Individuals who transfer to different positions throughout the year will not lose or gain allocation vacation time. Vacation time will be allocated to each colleague once per calendar year and accrued (earned) on a monthly basis. Continued on next page 18

20 Vacation Pay Policy and Procedures (Exempt Pharmacists Only), Continued Vacation Accrual, Continued Newly eligible colleagues (whether new hires or colleagues changing from non exempt to exempt status) will be eligible for vacation time according to the following schedule: Month Hired 6-Month Anniversary Vacation Time Factor Vacation Hours* June January 1 12/ July February 1 11/ August March 1 10/ September April 1 9/ October May 1 8/ November June 1 7/ December July 1 6/ January August 1 5/ February September 1 4/ March October 1 3/ April November 2/ May December 1/ Note: * Hours represent two weeks vacation using a 40-hour work week. Actual allocation will be based on the colleague s average hours worked. Allocation for colleagues hired on the first of the month will follow the previous month s allocation. Vacation allocation, the number of vacation hours a colleague is permitted during the calendar year, is accrued (earned) throughout the year. A colleague who changes from exempt to non exempt status is no longer eligible for the CVS RX SERVICES, INC. Vacation Plan, and therefore, the colleague no longer accrues or earns vacation time. If the colleague has used less vacation time than the amount of time accrued, the colleague will receive payment for the unused vacation time provided that the time is greater than or equal to one hour. In the event of a termination, a colleague must be actively employed on December 31 to be eligible for 100% of the allocation. If the colleague has used less vacation time than the amount of time accrued, the colleague will receive payment for the unused vacation time, provided that the time is greater than or equal to one hour. Colleagues who retire from the company having 10 years of service and are age 55 or having 5 years of service and are age 65 will receive full payment of vacation upon retirement. Continued on next page 19

21 Vacation Pay Policy and Procedures (Exempt Pharmacists Only), Continued Vacation Usage Exempt Pharmacists are eligible to receive vacation based on their regular weekly scheduled hours (typically 40) at the end of the preceding year. The vacation balance is displayed within the Workbrain application. If an Exempt Pharmacist wants to take off more vacation time than is currently available, the colleague must get prior approval from his/her Pharmacy Supervisor. The pharmacist may arrange to swap time with another pharmacist; however, no more than 2 consecutive shifts may be swapped, and they must be swapped within the same payroll cycle. All pharmacists must request vacation days and receive approval from their Supervisor well in advance at a minimum of 30 days. Any vacation request may be denied based on staffing availability. Vacation taken in shifts is paid for the number of hours in that shift with the balance of base salary paid as regular pay to bring the pharmacist up to base. Vacation hours are applied prior to the inclusion of HUB and do not count toward premium pay eligibility. The CVS RX SERVICES, INC. Vacation Plan requires colleagues to use all of their vacation time allocated with the exception of employees who become eligible for vacation in either November or December. Exempt colleagues who have used less vacation time than the amount of time allocated will receive payment for the unused vacation time, provided that the time is greater than or equal to one hour. CVS RX SERVICES, INC. will payout all Store Exempt Pharmacists who have used less vacation time than the amount of time accrued, provided that the time is greater than or equal to one hour. Vacation time can be used at any time between January 1 (or the eligibility date for newly eligible colleagues) and December 31 (this date changes each year, check with HR Services). Colleagues can use vacation time up to but not exceeding the allocated amount. Unused vacation time will not carry forward from one calendar year to the next. Note: Any exceptions to any part of the policy must be communicated to HR Services via the Director in the form of an . Continued on next page 20

22 Vacation Pay Policy and Procedures (Exempt Pharmacists Only), Continued Using Vacation In Full Week Increments Exempt colleagues taking a week of vacation will be charged the number of vacation hours that matches their Base Hours. Regardless of whether a full long or full short week is taken as vacation, a Exempt Pharmacist working a Long Week/Short Week rotation should submit Base Hours under special code VAC. A Pharmacist working a Long Week/Short Week Rotation may not take all long weeks off as vacation. See Short Week/Long Week guidance in this guide. Using Vacation In Full Week Increments, Continued Using Vacation in Partial Week Increments If an Exempt Pharmacist takes a full week s vacation during a holiday week, report hours as noted on the Pharmacist Payroll Summary Sheet. The 8-hour Holiday benefit is automatically added by Workbrain to the vacation hours. If a pharmacist takes a vacation during a week in which the store has one or more days with a reduced schedule (e.g., reduced hours on Thanksgiving), the pharmacist will be charged VAC based on his/her regular schedule, not the reduced schedule. Generally, in any week that a Exempt Pharmacist works and takes vacation, the pharmacist will not receive less than his/her base salary. Exempt Pharmacists should report partial week vacation hours in addition to the other Regular or Special Hour Codes on their Payroll Summary Sheet. Vacation may be used and reported in whole hour increments. 21

23 HOL for FT RPh is input systemically Appendix A- Payroll Summary Sheet SPECIAL HOURS CODES SICK Sick Pay FNL Funeral VACA Vacation JUR Jury Duty TR5 Rx Training (T/O) RNR Rx Night Rate NOTE: Special Hours codes are subject to change. Refer to Workbrain for current valid codes.. Exempt Staff Pharmacist Payroll Entry There is no need to enter 8.0 HOL on this form. HOL for FT Pharmacists is automatically added by Workbrain. W/E Date Permanent Employee ID Name REG HOL SICK VACA Other Special Hours Desc. (code) Other Special Amount Total Paid Non exempt Pharmacist Payroll Entry Non exempt employees should accurately record hours worked on the holiday to ensure inclusion of OHL OT 2 for Christmas.. NOTE: Non exempt Pharmacists (in select markets) punch in and out for their shift and do not need to record their time on the Payroll Summary Sheet. W/E Date Permanent Employee ID Name REG HOL worked SICK VACA Other Special Hours Desc. (code) Other Special Amount Total Paid The above hours accurately reflect what I should be paid. Signature: Date: 22

24 Appendix A - Payroll Summary Sheet, Continued EXAMPLES OF PHARMACIST PAYROLL HOURS ENTRY (42 hour base) Exempt Staff Pharmacist NORMAL WEEK W/E Date EX. 1 EX. 2 EX. 3 EX. 4 Permanent Employee ID NORMAL WEEK (LONG week) Name REG HOL SICK VACA Other Special Hours Other Special Hours (Worked 50 hrs according to your schedule) NORMAL WEEK (SHORT week) (Worked 34 hrs according to your schedule) NORMAL WEEK + 12 ADDITIONAL HRS IN HOME STORE (Not a Swapped Shift) NORMAL WEEK BUT WORKED 12 HRS OF BASE IN ANOTHER STORE 30 VACATION / FUNERAL / SICK EX. 5 EX. 6 PLUS: REPORT 12 HRS IN ANOTHER STORE. Will get paid Base of 42 totaled from both VACATION WEEK Regardless of whether a full long or full short week is taken as vacation, the Pharmacist should submit Base Hours under special code VAC. Please contact your RPh Supervisor if you have any questions regarding Vacation Week Hours to be reported. NORMAL WEEK VACATION DAY 12 HR SHIFT EX. 7 NORMAL WEEK - 3 DAYS (12 HR SHIFTS) OFF FOR FUNERAL 6 FNL EX. 8 NORMAL WEEK - SICK DAY 12 HOUR SHIFT HOLIDAY WEEK Holiday Hours will automatically be paid via Workbrain For each recognized holiday, the 8-hour Holiday Pay Benefit will systematically be added to Base Salary. This time is included in the calculation of the colleague s base, prior to the inclusion of HUB. Please refer to below examples for clarification: EX. 9 HOLIDAY - SCHEDULED TO WORK AND WORKED 12 HRS ON HOLIDAY EX. 10 HOLIDAY - SCHEDULED OFF AND DID NOT WORK EX. 11 HOLIDAY - SCHEDULED OFF - STORE IS CLOSED EX. 12 EX. 13 EX. 14 EX. 15 EX. 16 FOR THE HOLIDAY HOLIDAY SCHEDULED TO WORK 6 HRS OVERLAP - DOES NOT WORK BECAUSE OVERLAP NOT NEEDED HOLIDAY FULL WEEK OF VACATION DURING 42 8 Overlap should be rescheduled for another day during the same biweekly pay period for Exempt Pharmacists. Overlap for Non exempt Pharmacists may be eliminated by Rx Supervisor. HOLIDAY WEEK HOLIDAY NOT SCHEDULED TO WORK ON HOLIDAY - DOES NOT WORK BECAUSE ON VACATION (12 hrs) HOLIDAY SCHEDULED TO WORK 12 HRS ON HOLIDAY - DOES NOT BECAUSE TOOK VACATION DAY Total Paid HOLIDAY SCHEDULED OFF- WORK 12 HRS ON HOLIDAY IN ANOTHER STORE 42 8 Plus report 12 hours in another store

25 Appendix A - Payroll Summary Sheet, Continued HOLIDAY WEEK PHARMACY DEPARTMENT REDUCED HOURS OF OPERATION W/E Date EX. 1 EX. 2 Permanent Employee ID Name REG HOL HOLIDAY - SCHEDULED TO WORK - STORE IS CLOSED FOR THE HOLIDAY 30 8 HOLIDAY SCHEDULED TO WORK STORE HAS REDUCED HOURS (8 HOUR SHIFT INSTEAD OF 12 HOUR SHIFT) SICK VACA Other Special Hours Regular Base Hours reduced because store is closed. HUB will automatically prepopulate to bring RPh to base. Holiday Reduced Schedule (Auto- Calculated as HUB) Total Paid Non-Exempt Pharmacist: use Payroll Summary Sheet to record hours W/E Date EX. 1 EX. 2 Permanent Employee ID WORKS 20 HOURS IN THIS STORE NON HOLIDAY WEEK In select markets, Non exempt Pharmacists punch in and out for their shift and do not need to record their time on the Payroll Summary Sheet. These Non exempt Pharmacists will receive 1 ½ times their hourly rate (OHL) for each hour worked on a Holiday, based on their punches. (OT2 for working on the Christmas Holiday) (Specific Market Exclusions) Name Sun M T W Th F S Other Special Hours Other Special Amount Total Paid WORKS 12 HOURS ON A HOLIDAY 12 OHL ( OT2 for Christmas) 12 *Union Employees: This information may not apply to you. Holiday pay will operate according to your collective bargaining agreement. 24

26 Appendix A - Payroll Summary Sheet, Continued PAYROLL TRAINING EXAMPLES Example: Basic Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week). How many hours should be entered in to Workbrain during the second week? ANSWER: 42 Example: Holiday Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week). o The Pharmacist is scheduled to work 14 hours on Thanksgiving which falls on the second week of the bi-weekly pay cycle. The store is closed. How many Regular hours REG should be entered in to Workbrain for the second week? ANSWER: The hours entered on to the Payroll Summary sheet are as follows. Week 1 42 Regular Hours Week 2 28 Regular Hours (14 Hour shift subtracted from the 42 Hour base, not from the 48 hour long week schedule.) 8-hour Holiday Benefit is systematically added Holiday reduced schedule hrs 6 hrs (auto-calculated as HUB) Example: Funeral Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week). o The Pharmacist is scheduled to work 14 hours on Saturday which falls in the first week of the bi-weekly pay cycle. The Pharmacist must attend a funeral and misses the entire shift. How many hours should be entered for each week? ANSWER: The hours entered on to the Payroll Summary sheet are as follows. Week 1 28 Regular Hours; 14 Funeral Week 2 42 Regular Hours Example: Sick Pay Calculation o A pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to work 12 hours on Tuesday during week one of the payroll cycle. The pharmacist calls in sick for the entire shift. On Wednesday during the second week of the payroll cycle, the pharmacist fills an extra 12 hour shift at a neighboring store. How many sick hours should this pharmacist receive? ANSWER: 0 The sick hours code is used to ensure that pharmacists receive their base pay. That is why sick hours should be added to Workbrain at the end of the second week and only to bring the pharmacist up to the base if needed. 25