SOP – Unemployment Claims Handling Process and Procedures

I. OBJECTIVE:

This policy establishes guidelines for consistent and effective response to unemployment claims filed by state agencies.

II. SCOPE OF POLICY:

This policy covers all operations covered by Goodman Manufacturing (the “Company”).

III. VENDOR DESIGNATED TO ASSIST IN ALL UNEMPLOYMENT CLAIMS: To ensure consistent, legally compliant, and financially responsible handling of unemployment claims, the Company has entered into a contract with a dedicated claims handling firm. This dedicated firm has been granted Power of Attorney to independently respond on behalf of the company in all states. As the name of the firm is subject to change, contact information may be obtained from the Goodman executive designated under section “VI. Responsibility for this Process and Policy”.

IV. UNEMPLOYMENT CLAIMS HANDLING PHILOSOPHY: It is the Company’s position to be compliant with applicable law in regard to ongoing unemployment claim assessments levied by states. It is also policy to contest unemployment claims deemed unreasonable, in the Company’s sole judgment. Conversely, the Company also reserves the right to either agree to pay, or decline to contest individual claims, again in the Company’s sole judgment.

V. CLAIMS HANDLING PROCESS: A. Under granted Power of Attorney rights, the designated claims handling firm should receive claims directly from the state and execute as per process below.

B. In the event a Business Unit receives the claim first, the HRBP is to be aware that states usually respond to lack of timely response on the part of the company by awarding payment to the Claimant. Therefore, under this scenario, the HRBP is responsible for proactively notifying the claims handling firm in order to ensure for timely response. Contact information for the current claims handling firm can be obtained from HR Director of Compliance & Training.

Step 1 – Upon receipt of the claim: The claims handling firm is expected to contact the affected HRBP for the company’s position on the claim in question. Upon notification of a pending claim to either the unemployment claims handling firm or the Business Unit, the claim becomes a legal matter. Accordingly, the HRBP is Conduct & Progressive Discipline Training Module 04/03/18 1 SOP – Unemployment Claims (Cont.) expected to take reasonable precaution to ensure no Company representative engages in discussion on the matter with the ex-employee (the “Claimant”) until during the hearing. During the hearing, the officiating officer will direct formatted dialog.

Step 2 – Local Business Unit HRBP to respond to claims handling firm: Under “Qualified Privilege” the HRBP will provide the claims handling firm with a document similar to the sample attached. This document is to clearly, and with confidence, establish whether or not the company believes the claim has merit. During a hearing, this document would be invaluable in establishing reason on the part of the Company.

Step 3 – In the event of a hearing by the state: In the event of a hearing, the unemployment claims handling firm should contact the HRBP to prepare for defense. In that case, the HRBP may be asked to provide available evidence in support of the Company’s position. The HRBP’s role at this point is to: A. Discuss evidence available and deliver copies of same to the claims handling firm. The claims handling firm may provide evidence to the state in advance of the hearing. Be aware that submitted evidence may also be delivered to the Claimant prior to the hearing. B. The HRBP is to attend all hearings (or a designated representative). C. Ensure all witnesses are present prior to the beginning of the hearing. D. Remind witnesses to be cordial to all parties. E.Begin testimony by stating why Claimant is no longer employed and stick to the facts. F.Establish which policies were violated, and how the Claimant knew (or should have known) he/she was in violation. G. Submit evidence. H. Decline to interject non-termination related issues (i.e. - also suspected of theft, etc.) I. Ensure witnesses do not respond to emotion on the part of the Claimant. J. Maintain focus on need for absolute adherence to policy - do not appear to be against the Claimant. K. Respond to questions by the Claimant by reverting back to the facts. L.Consider whether presented facts speak for themselves in deciding whether or not to take the opportunity to cross-examine the Claimant. M. In concluding statements – be brief and to the point. End with “based on the facts of this case, the Company respectfully requests benefits be denied.”

Step 4 – Possible additional hearings: Faced with a loss, both the Company and Claimant have the opportunity to appeal. If the Company is faced with a loss, consideration must be given as to whether filing an appeal makes sense.

VI. RESPONSIBILITY FOR THIS PROCESS AND POLICY: A. Business Unit Level – The HRBP has multiple roles both prior to, during, and possibly after the hearing. He/she will provide the Company’s summary position and/or evidence with respect to a specific claim. The HRBP will also arrange for witnesses or other requested detail by the claims handling firm in support of the Company. B. Claimant’s ex-Manager – Will support HRBP as needed in order to address the claim at hand. Conduct & Progressive Discipline Training Module 04/03/18 2 SOP – Unemployment Claims (Cont.)

C. Overall Responsibility – The HR Director of Compliance & Training has been designated the overall responsible party for this SOP.

A sample supporting information document for an unemployment claim follows.

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SAMPLE SUPPORTING INFORMATION TO UNEMPLOYMENT CLAIMS HANDLING FIRM – REQUIRED OF HRBP (Use your own business address) November 4, 2014 Ms. First & Last Name) Title Name of Unemployment Claims Handling Firm Address Claimant Name: (Ex-Employee) SS# XXX-XX-XXXX Appeal # 04 1234567 4 1014 Hearing Date/Time 11/11/14 @ 8:30AM central

Dear Sir or Madam,

As First/Last Name, the “Claimant” above has filed a claim for unemployment benefits with Goodman (the “Company”), and as I am familiar with this individual and the situation surrounding his/her termination, it is incumbent on me to provide necessary detail under “Qualified Privilege.” Accordingly, please be advised that this individual was:

HRBP – This is where you would state either:

1. Claimant was terminated for cause due to (i.e. – Alcohol and Substance Abuse.) in keeping with company policy. A. Claimant was aware of our Conduct and Progressive Discipline policy by way of our Handbook Acknowledgement Form (see signed copy attached, signifying receipt and understanding). B. The specific policy violated by the Claimant from that handbook is attached. (if mentioned in more than one area, include them all)…such as Section 9 – “Work Policies and Regulations,” that covers “Alcohol and Drugs”, and Section 12 “Conduct & Progressive Discipline” that also addresses the testing positively for presence of drugs during working hours” include them all. (See copies below) C. Claimant attended a safety meeting within the past 11 months regarding the Company’s position on drugs in the workplace (if accurate). (See copy below) D. The affected policy is posted in the employee break room (if accurate). (See copy below) E. Claimant had been placed on Written Warning for distributing drug paraphernalia on company premises against policy, Section 9 “Work Policies and Regulations.” In that warning, Claimant was informed that “future such incidents may result in additional disciplinary action up to and including possible termination of employment without advance notice.” (See Written Warning below, including Claimant’s signature.

See copies of all mentioned documents attached.

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As a result, of the above, the Company requests you inform the applicable state agency that Claimant should, with respect, be denied unemployment benefits. In the event of a hearing, I will testify on behalf of the Company.

Or -

2. If job eliminated for business reasons, state the following… Claimant’s job was eliminated for Business Reasons due to no fault of his/her own. The company agrees to pay unemployment benefits.

Attachments

* Copy of Written Warning to employee for distributing drug paraphernalia on company premises – includes Claimant’s signature. (Attached) * Copy of Claimant’s Breath Alcohol consent form with positive results. (Attached) * Copy of Claimant’s signed receipt of Employee Handbook. (Attached) * Copy of Employee Handbook, Section 9- which outlines the company’s position on Drugs. (Attached) * Copy of Employee Handbook, Section 12 - Conduct & Progressive Discipline which indicates the inexcusable nature of the illegal drug issue for our workforce. (Attached) *Attendance sheet for safety meeting on drugs in the workplace, with Claimant’s signature.

Please ensure that both the appropriate state agency and the Claimant are delivered copies of this cover sheet and all attachments as appropriate. Claimant’s supervisor – (First/Last Name) will also attend the hearing as a witness. Claimants address is: City, State, Zip Code.

Sincerely,

SIGNATURE

______HR Business Partner Name/Title Address/Phone Number

THE SAMPLE LETTER IS ALSO INCLUDED ON THE G DRIVE UNDER “COUNSELING AND CORRECTIVE ACTION”

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