Transition to Chevron Holiday Policy Your Life.

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1 Transition to Chevron Holiday Policy Your Life. This policy is usually only available to Chevron employees from the U.S. HR intranet website. However, we ve posted this policy here for your reference because we know not all AMBU employees have access to Chevron s intranet at this time. When your computing station has been transitioned to GIL, you ll have access to this and other HR policies and information on the Chevron U.S. HR website on the intranet. Please note the links referenced in the enclosed policy document will ONLY work from a Chevron GIL workstation! Where to find this Chevron HR policy on the intranet: hr.chevron.com/northamerica/us/ Go to the HR Policies tab and choose Policy #105 from the list. Human Resources

2 HR Policy 105 for U.S.-Payroll Employees Holidays I. GENERAL The company will recognize a limited number of holidays, selected in accordance with the general business practice in each operating area. As operating conditions permit, work should be planned ahead to enable as many employees as possible to be off from work on company-recognized holidays. When continuous operations must be maintained, shift employees as a rule are required to work. Other employees whose work schedules normally allow them to observe a holiday, should be given reasonable advance notice if they will be required to work on a holiday. Eligible employees, as described below, may receive the paid company holidays observed after their first day of work. II. GUIDELINES 1. Holidays Observed The following are the ten 8 - hour holidays recognized by the company for the San Francisco Bay Area. Due to local significance, facilities at other locations may have established a different holiday schedule. Changes from the schedule below or another "established" local schedule require counsel from the Employee Relations unit of Corporate Human Resources/North America Shared Services. New Year's Day January 1 Presidents' Day Third Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Thanksgiving Day Fourth Thursday in November Day After Thanksgiving Friday After Thanksgiving Christmas Day December 25 Added December Holiday Varies with Christmas Day Observance Personal Choice Holiday Open Date Generally, holidays are observed on the day on which they fall. However, in operations where it is normally possible to grant holidays off and where employees are scheduled to work Monday through Friday, Saturday holidays are observed on the preceding Friday and Sunday holidays are observed on the following Monday. Non-represented employees on the 9/80 or 4/10 compressed workweek schedule are to receive fewer than ten holidays. Those on the 9/80 work schedule receive nine holidays while employees on the 4/10 work schedule receive eight. The Compressed Workweek Guidelines contain additional guidance on which holidays may make up the holiday schedule for these two work schedule options. HR Policy Holidays 1

3 Part-time employees working one of the seven approved schedules will be granted a paid holiday only if they are scheduled to work the day the holiday is observed by the company. In addition, his or her paid hours for a holiday will be according to the daily hours of work for the employee s schedule. A company holiday falling on a scheduled day off for a parttime employee should not be rescheduled to one of the employee s workdays. For example, an employee working four five-hour days per week on Monday through Thursday will receive all holidays falling on those days but will not be eligible for any company holidays observed on Fridays. 2. Added December Holiday At facilities and locations where it is normally possible to grant holidays off and where employees are scheduled to work Monday through Friday, the Added December Holiday should be observed as follows: Day of Observance Christmas Day Christmas Holiday Added December Holiday Sunday Monday Previous Friday Monday Monday Tuesday Tuesday Tuesday Monday Wednesday Wednesday Tuesday Thursday Thursday Friday Friday Friday Thursday Saturday Previous Friday Following Monday If the nature of an operation is such that employees always observe Christmas Day on December 25, the added Christmas Holiday is observed on Christmas Eve (December 24). 3. Employee Eligibility Employees are generally eligible under this policy as soon as they start working as long as they are considered by Chevron to be a common-law employee (those who are paid wages on the US payroll and have employment taxes withheld on their behalf by the company) of Chevron Corporation or one of its subsidiaries that it has designated to participate in the Omnibus Health Care Plan and they meet all of the following qualifications: The employee is paid on the U.S.-payroll of Chevron or a participating company. The employee is assigned to a regular work schedule of at least 40 hours per week, or at least 20 hours per week if such schedule is an approved part-time work schedule under the Corporation s Part-time Employment Guidelines or o The employee is designated by Chevron as a Casual employee and he/she have worked (or is expected to work) a regular work schedule for more than four consecutive months or HR Policy Holidays 2

4 o The employee is designated by Chevron as a Seasonal employee and they are not on any type of leave of absence or o The employee is designated by Chevron as a Professional Intern who is working a regular work schedule. An individual is not eligible for paid holidays under this policy if any of the following applies: The individual is not on the Chevron U.S.-payroll, or they are compensated for services to the company by an entity other than Chevron even if, at any time and for any reason, the individual was deemed to be a Chevron employee. The individual is a leased employee or would be a leased employee if they had provided services to Chevron for a longer period of time. The individual entered into a written agreement that provides that they won t be eligible. The individual is a member of a collective bargaining unit (unless eligibility to participate has been negotiated with Chevron) 4. Personal Choice Holiday a. If the Personal Choice Holiday (PCH) is part of the local holiday schedule, it is taken on a day of significance for each employee, subject to these policy provisions, operating needs and management approval. b. Employees and supervisors are jointly responsible to ensure that the Personal Choice Holiday is scheduled and taken every year. The PCH cannot be borrowed from ensuing years. c. For PCHs not taken in a calendar year, the company has an accrual cap on such days of one (1) day. As an example of how the PCH accrual cap applies - an employee on the 5/40 work schedule who receives one PCH and nine fixed date holidays in a calendar year, does not take his or her PCH for two successive years. Due to the cap, in the third year this employee would be eligible for two (2) PCH days and nine (9) fixed date holidays with one of the PCHs being the accrued day from a prior year and the other being the PCH given as part of the current year s holiday schedule. d. Full-time and part-time employees are eligible for the PCH, provided: They report to work on scheduled workdays before and after the holiday. They obtain management approval if they are absent without pay on one of the scheduled workdays surrounding the holiday. Casual, Seasonal and Professional Intern employees are not eligible for the PCH. Newly hired full-time and part-time employees are eligible for the PCH during their initial year of hire if they begin employment before July 1. Those employees hired HR Policy Holidays 3

5 after June 30 do not receive the PCH for that particular calendar year. e. Transferring employees should conform to the holiday schedule of the new organization on the date of the transfer. However, an employee who transfers into an organization that grants the PCH, should only receive the PCH if it is needed to complete his or her full holiday schedule (e.g. 80 paid hours of holiday) for that year. Employees who have taken their PCH prior to transferring to organizations that do not have the PCH, could possibly receive an extra holiday for the year. In such cases, local management may decide to limit total paid holiday time to 80 hours for the year. f. If an eligible employee has not taken their current calendar year s PCH at the time of their termination or retirement from the company, it will be be paid out by Payroll Operations to the employee as part of his or her final paycheck. 5. Day of Observance a. The day of observance for a holiday is established to determine when employees should either be granted time off or paid holiday premium pay for working. It may be the calendar day of the holiday or another day if the holiday falls on a day off. b. For pay purposes, the day of observance is a 24-hour period starting at midnight (i.e., the calendar day) when an employee's scheduled hours of work fall within that period. However, when an employee's scheduled hours of work overlap midnight, the day of observance will be shifted as follows: When the scheduled work hours start after 8:00 p.m., the employee's day of observance is the 24-hour period beginning at the time such work starts, on the day preceding what would normally be the calendar day of observance. When the scheduled work hours start at or before 8:00 p.m., the employee's day of observance is the 24-hour period beginning at the time such work starts, on what would normally be the calendar day of observance. NOTE: Throughout the remainder of this policy, the term "holiday" refers to the day of observance by the individual employee. 6. Pay for Holidays Not Worked a. Employees (including professional interns) other than casual and part-time who are not using one of the seven currently approved part-time schedules, are eligible to receive regular pay for a holiday not worked, except as stated in sections 3.c. and 6.b. b. Eligible employees will receive pay when a holiday falls on their scheduled workday, except under the following conditions: HR Policy Holidays 4

6 Employees absent, with or without pay, on their scheduled workday either before or after the holiday will not receive pay if the reason for the absence is not acceptable to their management. Employees absent without pay on both their scheduled workdays before and after the holiday will not receive pay for that holiday. This includes employees receiving payments under the state of California s Paid Family Leave program (PFL). Since PFL payments are not considered to be wages for time worked, employees will be considered to be absent without pay during any time period they are only receiving PFL payments. Employees absent without pay (typically as unpaid leave of absence) are required to use one week of vacation before receiving California Paid Family Leave (PFL) payments. This one week of vacation before becoming eligible for PFL will be paid to an employee without returning the employee from their unpaid leave of absence. Due to being absent without pay, employees in this situation will not receive payment for a holiday that occurs during the pay period in which the vacation for PFL eligibility is paid. Employees scheduled to work on the holiday but who fail to report to work will not receive pay if the reason for failing to report for work is not acceptable to their management. Employees on leaves without pay on both the calendar day before and the calendar day after the holiday will not receive holiday pay. c. For those employees who observe all holidays on the day on which they fall (e.g. 24/7 operations), some holidays will be observed on scheduled days off. When this occurs, eligible employees should, if possible, be given an extra day off in lieu of the holiday. Management should make every effort to give employees their preference of taking off the scheduled workday immediately before or after the holiday or a later workday. Where operating conditions prohibit giving non-exempt employees an extra day off, the company, at its option, may grant an extra day of pay at the straight-time rate in lieu of the extra day off. When it is impossible to schedule employees in Pay Scale Group 17 to 23 for an extra day off by the end of the quarter following the quarter in which the holiday occurred, they should, with prior approval of the department or staff manager, be granted an extra day of pay. In administration of this section, the same four conditions given in Section 5.b. above are to be applied in determining if an employee qualifies for an extra day off. d. Contact Payroll Operations of the North America Financial Services Center for employees eligible for pay on a holiday not worked, who are receiving pay under the HR Policy Holidays 5

7 published Short-Term Disability Plan. e. For guidance regarding pay for a holiday that occurs during an employee's vacation, see HR Policy 120 -Vacations. f. An employee on a leave of absence with pay will receive holiday pay rather than a day of leave when a holiday falls on a scheduled workday during the period of leave. When a holiday falls on a scheduled day off, either during or adjacent to the beginning or end of the leave, the scheduled workday during the leave that is nearest (before or after) the holiday will be paid for as a holiday rather than a day of leave. 7. Pay For Holidays Worked a. Every reasonable effort should be made to give exempt employees (other than Casuals) a day off with pay for a holiday worked. When it is impossible to schedule Pay Scale Group employees for an extra day off by the end of the quarter following the quarter in which the holiday occurred, they should be granted an extra day's pay, with prior approval of the department/staff manager. b. Non-exempt employees other than Casual and part-time who work on a holiday will be paid one and one-half times the straight time rate for all hours worked, plus: holiday pay at the straight time rate for the number of hours in their daily schedule for employees eligible under Section 6.a., or the straight time rate for the number of hours worked, up to the number of hours in their daily schedule, for employees not eligible under Section 6.a. c. Casual and part-time employees not on an approved part-time work schedule will be paid the appropriate overtime rate for all hours worked on a holiday. However, scheduling such employees for holiday work should be avoided whenever possible. 8. Counsel Counsel on this policy may be obtained from the Employee Relations unit of Human Resources/ North America Shared Services. III. FURTHER GUIDANCE AND REFERENCES HR Policy 120 Vacations HR Policy Hours of Work and Overtime, Non-exempt HR Policy Call-Out HR Policy Minimum Pay HR Policy Travel Time and Travel Allowance Selected Holiday Schedules and Holiday information can be found on the U.S. HR Web site HR Policy Holidays 6

8 at Choose Holidays in the Employee Benefits section. North America Shared Services Compressed Workweek Guidelines are available for HR Business Partners on the Inside HR Web site. Choose Processes and Tools from the top navigation panel, then Flexible Work Options from the left-hand side navigation. Effective March 2008 Replaces December 2006 HR Policy Holidays 7

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