Employee Handbook

Employee Handbook

Revised: 06/23/2021

Encompass Health – Home Health, Hospice and Private Duty provides exceptional home care where employees are encouraged to do what they do best – care for others. April Anthony founded our company, and with the dedication and support of all its employees, has formed the company into what it is today – a national organization that has been recognized for our quality outcomes, patient & caregiver satisfaction, and employee engagement.

In a short time, Encompass has grown from a single start-up location to numerous home health and hospice branches across the country. Entering the industry in 1998, Encompass soon became a regional, then national leader in the industry growing both organically and through a number of key acquisitions. Encompass provides care in the states of:

Alabama Alaska Arkansas Arizona Colorado Connecticut Florida Georgia Idaho Illinois Indiana Kansas Kentucky Louisiana Maryland Massachusetts Mississippi Missouri Montana Nevada New Mexico North Carolina New Hampshire Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina Tennessee Texas Utah Virginia Washington

Wyoming

The Encompass guiding principle of providing A Better Way to Care is achieved every day by our committed employees and dedicated, experienced management team. Our foundation includes:

 Unwavering commitment to regulatory compliance  Competent and compassionate caregivers equipped with value-added resources to provide exceptional patient care  Corporate stability through our commitment to efficient operations and relationship with the Encompass Health IRFs  Local administrators and staff who ensure we remain a part of the communities we serve

On January 1, 2015 Encompass became part of the Encompass Health Corporation previously HealthSouth, which is headquartered in Birmingham, AL and is the nation’s largest owner and operator of inpatient rehabilitation hospitals operating in 33 states across the country and in Puerto Rico. Encompass Health hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, orthopedic, cardiac and pulmonary conditions, brain and spinal cord injuries, complex orthopedic conditions and amputations. On January 2, 2018, HealthSouth and Encompass Home Health and Hospice joined together under one brand name and can be found on the internet at EncompassHealth.com. 6688 N. Central Expressway, Suite 1300 Dallas, Texas 75206 877.330.7657 214.239.6500

Table of Contents ORGANIZATION Equal Opportunity ...... 1.01

EMPLOYMENT PRACTICES Orientation...... 2.01 Hiring Practices ...... 2.02 Personal Appearance ...... 2.03 Telephone Calls ...... 2.04 Cell Phones & Personal Electronic Devices...... 2.05 Confidential Information ...... 2.06 Personnel Records ...... 2.07 Motor Vehicle Record ...... 2.08

EMPLOYEE CONDUCT Complaints and Grievances...... 3.01 Alcohol and Drug-Free Workplace ...... 3.02 Illegal Weapons / Concealed Handguns...... 3.03 Search Policy ...... 3.04 Employee Conduct ...... 3.05 Employee Performance Improvement ...... 3.06 Communications and Information Systems ...... 3.07 Respect for Property...... 3.08 Sexual Harassment ...... 3.09 Open Door Policy ...... 3.10 Employee / Patient Services Restrictions ...... 3.11 Employment of Immediate Family Members ...... 3.12 Employment of Clients ...... 3.13

EMPLOYMENT AND PAY Hours of Work ...... 4.01 Smoking...... 4.02 Attendance and Tardiness ...... 4.03 Payroll Information ...... 4.04 Employee Classification ...... 4.05 Restricted Employment ...... 4.06 Timesheets...... 4.07 Overtime ...... 4.08 On Call ...... 4.09 Resignation ...... 4.10 Termination...... 4.11 Performance Evaluation...... 4.12 Job Descriptions ...... 4.13 Continuing Education ...... 4.14 Rest and Meal Periods ...... 4.15 Americans with Disabilities Act (ADA) and Reasonable Accommodations ...... 4.16 Pregnancy, Lactation Anti-Discrimination and Accommodation ...... 4.17

EMPLOYEE BENEFITS Bereavement ...... 5.01 Holidays ...... 5.02 Jury Duty ...... 5.03

Leave of Absence ...... 5.04 Employee Benefits ...... 5.05 Travel Reimbursement ...... 5.06 Paid Days Off Guidelines ...... 5.07 Extended Illness Benefit and PDO Rollover ...... 5.08 Voting ...... 5.09 Wage Assignments ...... 5.10 Employee Referral Bonus Plan ...... 5.11 Employee Scholar Program ...... 5.12 Encompass Young Scholars Program ...... 5.13 Equipment Issued ...... 5.14 Occupational Injury/Illness...... 5.15

We are excited to welcome you to the Encompass family!

This Employee Handbook constitutes the written policies of and for employment with the Encompass Health – Home Health, Hospice and Private Duty agencies. The Handbook is not intended or to be construed as a contract or agreement of employment with any employee. The Handbook serves as guidance for both management and employees in the at-will employment relationship. Encompass reserves the right to revoke, change, or supplement these policies at any time without notice. No policy is intended as a guarantee of continuity of benefits or rights. No permanent employment or employment for any term is intended or can be implied by statements in this Handbook.

Additional policies, procedures, protocols, manuals and supplement training documents will be provided to employees through the general, job-specific, and compliance orientation process.

Guiding Principle: A Better Way to Care

Statement of Values – The Encompass Health Way

 Set the Standard: We are committed to going above and beyond, never settling for anything less than excellence. We pride ourselves on being industry leaders and challenge ourselves to continuously improve.  Lead with Empathy: We start with empathy, taking the time to understand the physical, mental and emotional needs of each other and those we support. We listen, make deep connections and engage on a personal level to better serve others.  Do What’s Right: We do the right thing the right way, no matter how difficult, even when no one is looking. We’re not afraid to have hard conversations. If we make a mistake, we acknowledge it, proactively find a resolution and make it right going forward.  Focus on the Positive: We have a positive spirit and find the light even in the most difficult situations. We bring our whole self to work. We celebrate successes and inspire others to create meaningful impact.  Stronger Together: We believe our individual strengths make us stronger together. We take accountability for our actions, connect across teams and lean in to get it done – at all levels of the company.

ORGANIZATION

EQUAL OPPORTUNITY 1.01

This organization is an equal-opportunity employer. We value a diverse workforce and an inclusive culture, which contributes to creativity and business growth. We do not tolerate unlawful discrimination or harassment. In employment, discharge, wages, or working conditions, this organization does not discriminate against individuals because of race, ethnicity, color, creed, national origin, religion, sex, age, sexual orientation, gender identity or expression, genetics, those with mental or physical disability, pregnancy (including childbirth, lactation, and related medical conditions), or any other protected classification.

Violence in any form will not be tolerated, including but not limited to physical violence, threats of violence, or abusive or aggressive behavior intended to threaten or intimidate another person.

The organization’s employment objective is to attract and retain personnel who meet high standards of personality, integrity, professionalism, character, education and occupational qualifications, who can carry on our work competently, who have the capacity for growth and who will make a valuable contribution to and become an integral part of our organization.

EMPLOYMENT PRACTICES

ORIENTATION 2.01

Orientation is ninety days in length for all employees. Orientation includes both general and job specific training. The employee’s supervisor is responsible for overseeing the orientation process for their direct report. Supervisors will enlist others within the organization to assist with training as appropriate (i.e. AS/HRD, preceptor, peer trainer). Each new employee will have a ninety day evaluation with their supervisor to discuss performance and additional training needs of the employee.

HIRING PRACTICES 2.02

Job openings are first posted on the Encompass website and secondly within the local office, if appropriate. After a reasonable amount of time, additional recruitment venues are utilized. Persons wishing to be employed by this organization are required to complete a process which includes pre-hire documentation and post offer of employment background investigations. Pre-hire documentation includes a standard employment application, at least two professional references, and an authorization to conduct certain background screenings. Such documentation is used to determine eligibility for employment and must be completed accurately and entirely. Any misrepresentation or omission may be grounds for immediate dismissal. Employment is contingent upon satisfactorily passing certain screenings. Post offer of employment procedures include a criminal history record, Medicare/Medicaid exclusion check and drug test screening for controlled substances. The pre-hire and post offer of

employment documentation becomes a permanent part of the employee’s personnel file.

PERSONAL APPEARANCE 2.03

Your personal appearance reflects on the organization and should project a professional image at all times.

All staff must wear their company issued silver or photo name badge at all times when performing work for Encompass Health.

Home Office personnel are to wear business/office attire. Jeans are allowed on Fridays, but should continue to reflect a professional image. Clothing and shoe wear that are not allowed include short skirts, sweat suits, low cut shirts/sweaters, shorts, flip-flops and any other attire deemed inappropriate by your Supervisor and/or Human Resources.

Agency back office personnel should adhere to these same professional image parameters, but may also wear scrubs, a scrub jacket or embroidered polo style shirt following the same criteria as below for the field staff, especially if you provide patient care.

All field staff will review SOP 4.41 and abide by the dress code at all times. Options include:  Long or short-sleeved, purple, blue, or gray scrub jacket, in conjunction with matching scrub pants or non-scrub khaki or black pants. The jacket will have the company name and logo embroidered on it. The shirt worn under the jacket is up to the employee’s discretion, but should look professional. Encompass Health t- shirts may be utilized as an option under the jacket. This is considered a primary dress code option.  Long or short-sleeved purple, blue, or gray scrub top that must be worn with a matching scrub bottom of the same color. Jacket may and is encouraged to still be worn. This is considered a primary dress code option.  Back-up choice: Replace scrub jacket with purple, blue, or gray fleece jacket in conjunction with matching scrub pants or non-scrub black or khaki pants.  Back-up choice: A company polo with the Encompass Health logo and in a designated uniform color, or a dress shirt with a tailored hem, instead of a scrub shirt, to be worn with black or khaki non-scrub pants.

All scrubs and polos must be purchased through the company-designated vendor.

New home health, hospice, and private duty employees will be provided by Encompass Health with a select number of pieces based on the hired position, as outlined in SOP 4.41. Employees are welcome and encouraged to purchase additional uniform items through the company-designated vendor. If the new employee opts for the back-up option of a fleece, this item may replace the company provided jacket or scrub top, but will be purchased at the employee’s expense through the vendor. See SOP 4.41 for employee ordering instructions.

Field staff must wear closed-toe shoes when performing patient care.

Visible tattoos and piercings must be non-offensive and discreet. The company has the right to prohibit prospective or continued employment if the tattoos or piercings are inconsistent with the company’s standards of professional presentation.

Supervisors and/or the Human Resource Department may further clarify professional attire and appearance at any point in time and have sole discretion of determining appropriateness.

TELEPHONE CALLS 2.04

Prompt, courteous answers to telephone calls should be the rule for everyone. It is good practice to identify yourself and company name or department when answering or making a call. Although an incoming call may be for someone else, you should offer to help the caller in every way possible.

The Company understands that, for some job positions, making long distance calls is essential to the completion of job duties. However, each of us can help reduce the Company’s telephone expense by only making long distance calls required to do our job and by keeping these calls to a minimum duration. Similarly, collect calls should not be accepted. Using the Company’s telephone system for personal long distance or toll call charges is not allowed.

CELL PHONES & PERSONAL ELECTRONIC DEVICES 2.05

In rare circumstances, certain employees may use company-issued cell phones to communicate with their offices, physician offices, referral sources, patients, or patient’s families. Excessive use of cell phones to conduct personal business during working hours is grounds for disciplinary action, up to and including termination. Additionally, employees should not use cell phones in a public location to discuss a patient’s protected health information if it possible for a third party to hear. This would be a violation of their Privacy.

If an employee needs to use a company-issued or personal cell phone while in his/her vehicle for work-related or personal conversations, then it is required that the employee pull off of the road onto a safe area, complete the cell phone conversation before resuming your drive or by using a hands-free approach.

Employees should adjust settings on cell phones, tablets, whether personal or company- issued, smartwatches, and other personal electronic devices so that notifications and alarms are either disabled or do not sound or otherwise provide distraction during patient care or other work interactions.

In applicable situations, full-time and part-time exempt employees may receive a per- pay-period cell phone allowance based on their job description. Please reference SOP 4.52 Compensation Guidelines for further detail.

CONFIDENTIAL INFORMATION 2.06

In the course of performing your job duties, you may have access to sensitive and confidential proprietary business information about the Company. You must use your

best efforts and diligence to protect such information. It is expected that at no time will you disclose, directly or indirectly, confidential proprietary information of the Company. Similarly, if your employment terminates with the Company, you may not subsequently disclose, directly or indirectly, any such confidential information acquired during your employment with the Company. If you have any questions regarding the confidential nature of any information or records, you should discuss the matter with your supervisor. Such confidential information includes, but is not limited to, the following examples:

 Compensation data  Technological data  Sales and financial information  Technological prototypes  Pending projects and proposals  Data processing systems  Proprietary processes  Inventions  Marketing and research strategies  Employee information  Patient information

Employees are held accountable for placing all “to-be-shredded” documentation into the company’s locked shred bin every 24 hours. There should be no material left outside of this bin at the end of each business day.

All documents and other materials relating, directly or indirectly, to any confidential information that is used, prepared, or learned by you during your employment by the Company, are and shall remain the sole and exclusive property of the Company, and must be returned (together with any copies that have been made) at the termination of your employment. Please see the company compliance manual for a more detailed explanation. In addition, all patient protected health information and related clinical documentation remains confidential during and after the employment relationship.

PERSONNEL RECORDS 2.07

An employee record that contains the employee payroll and performance information for all employees is kept at the home or corporate office, with certain information kept electronically. The personnel record will contain all documents per the Policy and Procedure manual and is maintained at the parent office for each provider number. There is additional information in the Human Resource Section of the Standard Operating Procedures, 4.30. This information is kept confidential and will only be released with written permission from the employee or where required by Federal and/or State law. The employee will be responsible for executing and providing the timely completion and documentation of any records required for employment.

It is your responsibility to inform the organization if you have a family status change. A family status change includes marriage, divorce, legal separation, addition of a dependent, death of a spouse or child, or loss of your spouse’s employment. Your insurance benefits may be affected by family status changes. You should also inform the organization of any change in your name, home address or telephone number.

MOTOR VEHICLE RECORD 2.08

In order to comply with the requirements of the company’s automobile insurance policy carrier, the Company is required to run a motor vehicle record (MVR) check on all employees whether they use company owned vehicles, and/or personally owned vehicles, in the scope of his/her job duties, including clinical and non-clinical personnel. The objective is to promote driver safety, and to guard against the infrequent, but potentially devastating claim that can result from an employee that operates their vehicle without regard for the safety of others. Major violations that will result in a non - employment situation include:

 Negligent Homicide within the last 5 years  Manslaughter within the last 5 years  Failure to Stop and Identify (Hit and Run) within the last 5 years  Suspended or Revoked License – Currently has suspended or revoked license  Assault involving a motor vehicle within the last 5 years

If an employee or potential employee has any of the following violations within the past 3 years from the date of the MVR, documented counseling with the employee will be conducted and included in the employee’s personnel file while a probationary hire may be made with the potential employee. If there are multiple violations of any of the following at any time, it will be considered a pattern of behavior and may result in the exclusion of the driver from the company car program and possibly result in termination from the company:

 Criminal conviction (theft, robbery, assault, other similar major crimes)  Drag racing  Driving under the influence (DUI)  Driving while impaired  Reckless driving  Passing a stopped school bus

EMPLOYEE CONDUCT

COMPLAINTS OR GRIEVANCES 3.01

Differences of opinion or misunderstandings arise in the normal operation of any Company. In most instances, your supervisor can give a prompt answer to your questions and assist you in resolving issues. However, your supervisor can only help you if you make your issue known. If your supervisor is incapable or unwilling to resolve the issue, you should:

 Follow the appropriate chain of command

 If the problem still is not resolved or is of a highly serious nature, you must present the specific complaint and how you think the problem should be resolved in writing to the Chief Operating Officer and/or the Vice President of Human Resources.

 A written response will be provided to you promptly.

 The Vice President of Compliance may be contacted at any point in the grievance process.

ALCOHOL AND DRUG-FREE WORKPLACE 3.02

The Company recognizes its responsibility to maintain a safe work environment for its employees. Part of this responsibility includes protecting employees from the hazards associated with substance abuse in the workplace. It is the Company’s intent and obligation to provide a healthful, safe, and secure work environment. Employees who think they may be developing alcohol or drug dependencies are encouraged to seek help before their dependency affects their job performance, personal relationships, health, safety, or the health of others.

The term “substance(s)” includes all controlled substances (including marijuana, whether it is used for medical, recreational, or other purposes and regardless of whether it is legal in your state of residence) and other drugs, inhalants, alcoholic beverages, and substances made unlawful under applicable state or federal laws, with the exception of prescription drugs, taken as medically directed. Employees who use prescription drugs must inform their supervisor in advance of such use if the use may impair the employee’s ability to perform essential job functions or pose a direct threat to the employee or others. The possession and/or use of alcohol or illegal drugs are prohibited in the workplace and will result in immediate termination.

The Company has policies that prohibit employees from possessing, distributing, or using illegal drugs, and from being under the influence of drug or alcohol while performing employment related duties. The Company adheres to a pre-employment drug / alcohol screening program and has a legitimate interest in enforcing its policies with regard to drugs and alcohol to ensure the safe and well-being of the company’s patients and other employees. Therefore, the Company may from time-to-time need to require an employee to submit to a drug and/or alcohol screening test. In addition, a drug/alcohol test will be performed on all employees involved in a significant work-related incident or injury resulting in property damage of over $2,000, post auto accident, and/or if serious injuries involving more than basic first aid care are sustained.

When the Company has a reasonable and rational basis to suspect that an employee may be violating drug/alcohol policies, the employee will be asked to report to an identified testing laboratory and submit a urine sample for testing. Such testing will show the presence of illegal drugs, including marijuana, and will measure the level of alcohol in the bloodstream. An employee who is found to have illegal drugs or alcohol in their system, based on the test, will be subject to immediate disciplinary action, including termination. The Company may also be required to report the incident to the appropriate State licensing agency.

A signed pre-employment form regarding this is obtained from each employee and maintained in the employee’s electronic record.

ILLEGAL WEAPONS/CONCEALED HANDGUNS 3.03

It is the policy of this organization to prohibit any employee or guest from carrying all weapons of any kind (firearms, knives, dangerous chemicals, explosives, and/or ammunition, concealed or otherwise, on the employer's premises, client residences, and retirement centers, while conducting business on behalf of the company. Any employee

failing to adhere to this policy will be subject to disciplinary action, including termination.

SEARCH POLICY 3.04

The Company respects the privacy rights of all employees. However, in the course of investigating any personnel issues, such as theft of company property or possession of illicit drugs, it may become necessary to search your personal effects such as lunch boxes, briefcases, purses or pockets. The Company also reserves the right to enter, search and monitor voice mail, electronic mail, internet use or other computer files of any employee, without advance notice, for business purposes such as investigating theft, disclosure of confidential business information, personal abuse of the system or monitoring work flow or productivity. All computer pass codes must be made available to your supervisor at all times. Searches are only conducted when there is reasonable cause to believe that you have violated the Company’s trust in you.

Whenever such searches are conducted, every effort is made to protect employees from undue embarrassment and inconvenience. In situations where an employee strongly prefers not to participate, the employee may choose to voluntarily resign for personal reasons. Employees who refuse to cooperate during these searches and who do not voluntarily resign may be subject to discharge.

Your decision to work at this Company constitutes your consent to the searches contemplated by this policy.

EMPLOYEE CONDUCT 3.05

The guidelines listed are not to be considered as all-inclusive, but are examples of unacceptable employee conduct.

The Company expects its employees to perform the duties assigned to them promptly and satisfactorily, to conduct themselves in a professional and respectful manner, and to refrain from taking any action which would be contrary to the best interests of the Company. It is the Company’s intention to take a constructive and fair approach to disciplinary matters and performance problems. To achieve fairness, the disciplinary action taken must fit the infraction. Therefore, the Company reserves the right to handle each disciplinary action, as it deems appropriate to achieve fairness. In most cases, such as poor job performance, poor attendance, and minor infractions of Company rules, your supervisor will counsel you to help you become a more productive member of the organization. However, in certain circumstances, the Company may find it necessary to impose immediate disciplinary action, up to and including termination of employment, without notice or counseling. This topic is also addressed in the policy and procedure manual under Personnel 17.0 Disciplinary Procedure.

Major Infractions – these infractions can result in immediate discharge.

1. Failure to show for a scheduled day without calling in advance. 2. Client abuse (physical, verbal, or mental). 3. Knowingly falsifying documents. 4. Committing deliberate or extensive damage to Company or patient property. 5. Theft or accusation of theft from Company or patient. 6. Negligence.

7. Possessing weapons on Company or patient property. 8. Violation of confidentiality. 9. Consumption of alcohol or illegal drugs and/or intoxication while on duty. 10. Insubordination. 11. Non-Encompass employees accompanying staff on visits and/or performing “ride-alongs”. 12. Placing yourself, a client, or another employee’s life in danger. 13. Sexual Harassment. 14. Sleeping while on duty. 15. Recording time on someone else’s time record and/or altering a time entry. 16. Signing and/or receiving someone else’s paycheck without proper written authorization. 17. Violation of the Company’s solicitation and distribution guidelines. 18. Taking any gratuity (tip or gift) from any client or family member. 19. Borrowing money from clients. 20. Tardiness/absences 21. Failure to adhere to policies and procedures regarding submission of documentation. 22. Discrepancy on a Criminal History Check 23. Violation of Federal or State law or regulations or violation of the Company’s Compliance Standards. 24. Investigation by law enforcement authorities, licensing agencies or others for alleged illegal or unprofessional conduct, the nature of which the Company deems inappropriate for active employment during the investigation. 25. Be or become excluded from participation in state or federal health care programs. 26. Other infractions of similar magnitude as determined by the Company.

Minor Infractions – infractions that are usually correctable through training and counseling.

1. Excessive late arrivals 2. Substandard workmanship 3. Misuse of communications and information systems as outlined in this handbook. 4. Using abusive or obscene language 5. Carrying on unauthorized activities during working hours 6. Other infractions of similar magnitude as determined by the Company

EMPLOYEE PERFORMANCE IMPROVEMENT PROCESS 3.06

Job performance issues can arise in any job. Generally, most job performance issues are associated with one or more of the following:  Failure or unwillingness to meet or sustain job performance metrics  A violation of company policy  Unprofessional conduct or communication  Attendance or tardiness record

The process for handling these issues may include any or all of the following actions, depending on the severity of the performance issue.

 Memorialized informal counseling – Supervisor discusses performance issues and expectations with you, and memorializes via email or written documentation.

 Formal Reminder – First documented discussion between you and your superv isor about performance, behavioral issues or a violation of Company policy. This is typically the next step when the results of the informal counseling session have not been satisfactory.

 Written Warning – Second formally documented discussion. It occurs after a previous documented discussion has failed to correct or improve your work

performance or behavior. If your performance or behavior does not improve, you may be discharged.

 Final Written Warning or Decision-making – This is the final warning allowing you one final attempt at performance improvement or a decision-making leave. The decision-making leave allows you to consider continued employment with the Company.

Disciplinary actions and the termination process may start at any point and/or may, escalate due to the severity or conditions of the offense. All records of disciplinary action are a permanent part of the employee record.

COMMUNICATIONS AND INFORMATION SYSTEMS POLICY 3.07

Purpose of Communications and Information Systems To secure and facilitate the appropriate usage of information and communication, the Company maintains various systems. These systems include but are not limited to; internet, email, instant messaging, voicemail, telephone systems, personal computers and computer networks, facsimile machines, printers and mobile devices. These systems and communication tools should be used for business purposes only.

Personal Privacy Rights or Interests; Monitoring and Access by the Company To ensure compliance with internal policies, as well as applicable laws and regulations, the Company maintains the right to monitor, and/or search at any time all Company information systems and/or communications sent through these systems with or without notice to the employee. The information systems subject to such examination include, but are not limited to; the above aforementioned along with desk drawers, and storage areas. Users should have no expectation of privacy associated with the information they store in or send through these systems. By using these systems, you are consenting to your usage being monitored and agree to the Company’s rights to conduct monitoring.

Use of Communications and Information Systems As with all Company resources, you must not use these systems in a manner that places undue burden on them or perform activities which are disruptive to Company operations or that violates any law or Company policy. Employees should use information and communication systems in a secure manner according to Company policy, for example creating strong passwords never to be shared and solely for use with Company systems to protect your access. Including #encrypt in the subject or body of an email message is required when sending protected health information (PHI) outside of the Company network domains (Encompasshealth.com or Ehhi.com).

Prohibited uses of Company systems include but are not limited to:  Viewing, creating, sending or saving content which might constitute intimidating, harassing, hostile, or offensive material on the basis of sex, race, color, religion, national origin, age, disability or other status protected by law.

 Unauthorized viewing, transferring, uploading, downloading, posting or printing or material that is confidential or proprietary to the Company.

 Any other activity deemed by the Company, in its sole discretion, to be an inappropriate use of the Company’s communications and information systems.

Information Technology Policies and Procedures, beyond this summarization, can be found on SharePoint in the Operations and Education > Policies and Procedures Manual > Information Technology folder. Employees are expected to review and comply with all Company policies. Violation of these policies may result in revocation of access and disciplinary action, up to and including termination of employment.

RESPECT FOR PROPERTY 3.08

This organization provides and supports an environment in which employees can be successful and productive. In return, employees are expected to treat this environment with respect. Office property and another employee's personal property should only be removed with permission.

Report lost, stolen, or damaged property or personal property to your supervisor as soon as possible. This organization does not assume liability for lost, stolen, or damaged personal property.

Employees that lose or damage their assigned mobile device (i.e. tablet) will be responsible for the $300 replacement fee.

SEXUAL HARASSMENT 3.09

Sexual harassment includes unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature by an employee or supervisor when submission to such conduct is made explicitly, or implicitly, a term or condition of an individual’s employment or if submission to, or rejection of, such conduct by an individual is used as the basis for employment decisions affecting such individual.

Sexual harassment also includes conduct of a sexual nature that unreasonably interferes with and individual’s work performance, creates an intimidating, hostile, or offensive working environment, otherwise adversely affects and individual’s employment opportunities.

Comments or conduct that might be perceived as sexually offensive are to be strictly avoided. Examples of conduct that might constitute sexual harassment include, but are not limited to, repeated offensive or unwelcome sexual flirtations, advances or propositions; unwanted hugs, touches or kisses; suggestive or lewd remarks or jokes; continual or repeated verbal abuse or a sexual nature or graphic verbal comments about an individual’s body; sexually descriptive and degrading words; or the display in the workplace of sexually suggestive objects, pictures, or images.

Submission to unwanted conduct is not required for an employee to continue his or her employment with the Company, and an employee may reject such conduct without fear of reprisal. Unwanted conduct may include inappropriate behavior from anyone that the employee comes in contact with during the scope of their employment and performance of work duties.

Any employee who experiences alleged sexual harassment should immediately report the incident to their direct supervisor. If the violation involves the immediate supervisor, then contact the Chief Operating Officer, the Vice President of Human Resources, or the

Vice President of Compliance. All complaints of harassment will be handled and investigated promptly. Any employee who is found having violated the harassment policy will be subject to appropriate disciplinary action, up to and including, termination.

OPEN DOOR POLICY 3.10

Every supervisor's door is open to every employee. Employees are encouraged t o report either orally or in writing to their supervisor any and all activity that may constitute fraud, unethical business conduct, violations of state or federal law, suspected violations of law and company policy, including complaints or concerns regarding accounting, internal accounting control, auditing and financial reporting matters, or substantial and specific dangers to employees’ health and safety. The employee will receive appropriate action, without discrimination or reprisal, during and following the resolution process. The Vice President of Compliance and/or Vice President of Human Resources may be contacted at any time.

EMPLOYEE / PATIENT SERVICES RESTRICTIONS 3.11

Employees of the Company, whether full-time, part-time or ‘prn’, will provide services to the Company’s patients only as Employees of the Company. The Supervisor shall ensure that no personnel directly supervise any of their own immediate relatives to include, but may not be limited to, spouses, children, grandchildren and siblings. Employees will not have a secondary clinical, therapeutic, or business relationship with any patient who is currently on service with an Encompass Agency, and will not provide personal, clinical, therapeutic or business services to a former patient for a 6-month period after a patient’s discharge from an Encompass Agency. Any exceptions to this Policy must be approved by the Chief Operating Officer and Vice President of Compliance.

EMPLOYMENT OF IMMEDIATE FAMILY MEMBERS 3.12

The employment of blood relatives, immediate family members, or those in an adoptive or foster relationship in the same department or branch of the organization may present a conflict of interest and/or cause serious problems in the workplace including partiality, favoritism and negative employee morale. Likewise, personal family conflicts from outside the work environment may enter into day-to-day working relationships.

Relatives of persons currently employed by the Company may be hired only if they will not be working directly for and/or under the direct supervision of an immediate family member or employed in a family member’s household. Encompass employees cannot and will not be transferred into such a reporting relationship.

If the immediate family member relationship is established after employment, the individuals involved will have up to 30 calendar days to decide which family member is to be 1) transferred to another branch office if employment is available, or 2) terminated from employment if other suitable employment with the Company is not available. If that decision is not made within 30 calendar days, Encompass senior management will have discretion to make the final decision.

For the purposes of this policy, an “immediate family member” is any person who is related by blood or marriage, or whose relationship with the employee is similar to that of persons who are related by blood or marriage, or those in an adoptive or foster relationship.

In other instances, where a conflict or the potential for conflict in the workplace arises due to an immediate family member relationship, even if there is no supervisory relationship involved, the employee(s) may be separated by reassignment or terminated from employment if no suitable reassignment is available.

EMPLOYMENT OF CLIENTS 3.13

The company may hire an individual who is a relative of a patient, barring any conflicts of interest. Also, an employee may not work in the home of a relative.

EMPLOYMENT AND PAY

HOURS OF WORK 4.01

Regular office hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. Flexible hours may be agreed upon during the interview process or at any point during your employment, however, flex time schedule approval is at the Company’s discretion. A full workweek is usually forty hours. Non-exempt employees must leave their desk for two, fifteen-minute paid breaks.

SMOKING 4.02

Smoking will not be allowed inside any Company office, in any patient’s home, nor in the Company cars; this includes the use of electronic and smokeless cigarettes. An area will be designated outside of each office for smoking per landlord’s requirements. These areas are to be kept clean and neat at all times by disposing of cigarettes in appropriate receptacles.

ATTENDANCE AND TARDINESS 4.03

Regular attendance is vital to the organization’s ability to function. Tardiness and absences are taken seriously. It is the employee’s responsibility to contact their supervisor as far in advance when they are going to be late. It is the employee’s responsibility to notify the supervisor of intended absence at least one hour in advance of expected start time. Any employee who does not report for work as scheduled and does not give proper notification of absence may be considered to have resigned his/her position. Employees who repeatedly miss three or more consecutive days due to illness may be required to submit a physician’s release to return to work and to receive PDO hours.

Consecutive days of absence must be reported to the employee’s immediate supervisor on each day of absence.

Each employee is hired with the understanding that dependable transportation is mandatory. Tardiness/absences due to transportation problems are subject to disciplinary action and/or termination.

PAYROLL INFORMATION 4.04

All employees are paid bi-weekly except for Private Duty field employees. Payment method options include direct deposit (strongly recommended) or paycard. Monies are available on the Friday following the end of the pay period. Payroll advances will not be granted to any employee. If the payday falls on a holiday, employees are paid on the day preceding the holiday. Pay period dates are made available to all employees.

If there is an error on your pay, inform your supervisor and the correction will be made no later than the next pay period.

This organization makes deductions from pay for federal income tax and social security without the employee’s written authorization. Additional deductions may be made for group medical/dental insurance, unreturned equipment or supplies, and for other reasons as required by law, i.e. back taxes and child support. All garnishments or deductions require employee written consent, except those initiated by law. The employee’s written consent will be obtained as applicable.

Changes in marital status and the number of claimed exemptions must be made by filing an amended W-4 Form.

EMPLOYEE CLASSIFICATION 4.05

Employees fall into one of the following classifications:

Full-Time: Employees who work a regularly scheduled week, usually 40 hours, although full-time status can be awarded to employees who work 30 hours per week or greater as long as there is an open full-time position. Full-time employees are expected to be available for work at any time within their regularly scheduled workweek, consisting of five working days per week. Full-time status employees are eligible for benefits, including all offered insurance plans and the Paid Days Off (PDO) benefit. If the full- time employee primarily provides patient care, he or she will have a productivity minimum based on his/her discipline type and expected hours per week. For full- time employees who work between 30 and 39 hours per week, productivity, compensation and PDO will be prorated accordingly. Exempt status full-time employees will be paid a salary. Non-exempt status full-time employees will be paid hourly.

This classification may apply to any full-time position, including 100% or 80%, within home health, hospice, sales, or home office. For private duty, this classification may apply to full-time positions paid either weekly or bi-weekly.

Part-Time Non-Exempt:

Non-exempt employees who will work fewer than 30 hours per week and are not expected to incur overtime. This classification should only be chosen at the time of hire if the employee is expected to have a specific number of dedicated hours and days per week that they will work. Employees in this category do not receive insurance or PDO benefits. Non-exempt part-time employees may be paid by the visit or hourly.

Part-time non-exempt classification is not available to field or office-based RNs, PTs, OTs, SLPs, and MSWs. This classification may apply to any other part-time position within home health, hospice, sales, or home office. For private duty, this classification may apply to any part-time position paid either weekly or bi-weekly.

Part-Time Exempt: Exempt employees who will work 24 hours per week. Part-time exempt employees are expected to be available for work at any time within their regularly scheduled workweek, consisting of four working days per week. Part-time exempt classification positions primarily provide patient care, and have a productivity minimum. Part-time exempt employees are offered the the PDO benefit, prorated accordingly. Employees in this category do not receive insurance benefits. Part-time exempt employees will be paid a salary.

Part-time exempt classification is only available to field-based RNs, PTs, OTs, SLPs, and MSWs in home health and hospice.

PRN: Employees who are generally expected to work fewer than 30 hours per week on average, and available for work on an “as needed” basis. The work assignments for PRN field or back office employees may be determined by patient census or the absence of other regularly scheduled employees. PRN employees are not eligible for company benefits and are paid by the visit.

For more information on compensation, see SOP 4.52 Compensation Guidelines.

Unless otherwise required by law, the employment of any employee, who fails to perform work for a period of 90 days will be considered as terminated.

Any employee classification status change requires appropriate changes to be made to the employee’s electronic personnel record in PeopleSoft. For more information, please refer to SOP 4.30 HR Section.

RESTRICTED EMPLOYMENT 4.06

Full-time employees of Company may not also own, operate or be employed or contracted by, or take any part in the operation of another home health care or hospice agency. All employees will provide services to Company’s patients only as Employees of Company.

Employees shall not provide services under a personal business or therapeutic relationship to a current Company patient, or for six months after a patient is discharged. Employees shall not provide services to a current Company patient as an

employee or independent contractor for another service provider. Exceptions to this Policy must be approved by the Chief Operating Officer.

TIMESHEETS (electronic) 4.07

Private Duty field staff, see separate policy.

Employees are paid bi-weekly and are required to record hours worked via non-visit activity entry and client visit time. These 2 components make up the employee’s “electronic time sheet”. Non-visit activity should be entered daily throughout the payroll period. All time entries must be submitted to a supervisor or to the Payroll Coordinator by 10:00 am on the Monday following the end of the pay period or as specified by your supervisor. Non-visit activity will be reviewed and approved by the supervisor.

Salaried employees must use the salaried hours non-visit activity category in HCHB, or the administrative timesheet in PeopleSoft, to document hours worked per week. Time indicated for PDO should be recorded as non-visit activity in HCHB or in the appropriate column in PeopeSoft, and used to document time off. PDO must be taken in daily increments, with a minimum of a half day entered, based on the employee’s assigned work schedule. If any salaried employee works less than half the work day, they must enter PDO for the half day (if their regular work day is eight hours a minimum of four PDO hours must be entered; OR if their regular work day is ten hours a minimum of five PDO hours must be entered).

Hourly employees are responsible for accurately recording all time worked on their timesheet, either in PeopleSoft or HCHB, using both visit related and non-visit activity time. They are responsible for accurately reporting the time they start and end their workday, as well as the beginning and end of any departure from work for meal periods or personal reasons. Time indicated for PDO should be recorded as non-visit activity in HCHB or in the appropriate column in PeopeSoft, and used to document time off. PDO must be taken in hourly increments, with a minimum of one hour for any entry.

Per visit employees will be paid based on completion and verification of patient visit documentation and approved non-visit activity. See the SOP 4.52 Compensation Guidelines for more information on pay of employees paid a per visit rate.

Paid Days Off (PDO) should be documented using the PDO non-visit activity option. The pre-approved “Paid Days Off Request” form should be completed and approved prior to the absence. Holidays and illnesses do not require a PDO request form.

Administrative, employees who work primarily in an office or who do not regularly see patients, and Home Office employees will complete an electronic timesheet via PeopleSoft for time worked and PDO time.

Altering a time entry or tampering with someone else’s documentation of hours worked is grounds for immediate dismissal.

OVERTIME 4.08

Hourly employees are paid at the regular rate for the first forty (40) hours actually worked during a seven-day workweek. Non-exempt employees and employees paid by the visit will receive time-and-a-half for hours worked over forty hours during the workweek. The workweek runs from Sunday to Saturday each week for Home Health and Hospice, Monday through Sunday for Private Duty. All overtime must have the prior approval of the supervisor. PDO (Paid Days Off) is not considered in the calculation of overtime and are paid at the employee’s regular hourly rate. Please reference the “Overtime/Meal Breaks/Rest Periods” chart in the SOP 4.52 Compensation Guidelines for additional state specific information.

There are times when business conditions and service demand will require employees to work beyond their normal 40-hour week. At these times, the organization may require employees to work scheduled hours of overtime. Except for unusual situations, employees are expected to work the hours needed to keep the business and service demands current.

The guidelines, policies and/or standards set forth herein will be subject to applicable federal or state law and state-specific addendums. The company may have state-specific addendum(s) to comply with applicable law of particular state.

ON CALL 4.09

Refer to SOP 5.32 for information regarding On Call.

RESIGNATION 4.10

An employee who elects to resign from employment is required to provide a written notice of resignation to be eligible for future rehire. Employees in a supervisory role must give a written notice of resignation no less than 15 business days (3 weeks) in advance of their anticipated last day of work, although 20 business days (4 weeks) is strongly preferred. Other employees must give a written 2-week prior notice of resignation. Unless approved in writing by the applicable supervisor; an employee is required to work the entire notice period.

If the applicable supervisor elects to end the employment relationship before the end of the employee’s notice period, the company will pay the employee for the remainder of the notice period, up to a maximum of two weeks’ base pay, beginning on the date the written notice was provided, if all the following conditions are met:

1. the employee is classified as part-time or full-time (not PRN);

2. the resignation notice was provided in writing to the employee’s supervisor (an emailed notice is acceptable) within the required time period specified above;

3. the employee is not currently on a job performance action plan at the time the resignation is tendered, and has not been on a job performance action plan within the last 12 months;

4. cooperates with the company to ensure a smooth transition of responsibilities, including communications related to the company and company business if the employee is resigning to work for a competitor; and

5. the employee remains at all times compliant with the policies of the company, and the terms and conditions of his/her Employment and Confidentiality Agreement.

Any behavior or conduct deemed to be inappropriate by management, in its sole discretion including, but not limited to behavior, conduct, or circumstances related to items # 4 & 5, above, will result in the forfeiture of remaining paid time related to the notice period.

If an employee uses PDO in the previous pay period prior to their resignation, turns in their notice but does not work out their required notice, then this will result in the forteiture of PDO use for the prior pay period. If the supervisor elects to end the relationship as described above, the employee would be paid their PDO from the previous pay period.

An Exit Interview should be completed by the employee, but is not mandatory. A forwarding address should be provided for mailing of the final paycheck and W-2 Forms.

TERMINATION 4.11

Employment with this organization is at will – either the employee or the employer may terminate employment at any time for any reason.

 Termination Without Prior Notice – The employee terminates employment without giving a written two-week notice.

 Resignation – The employee terminates employment by giving the minimum 2- week notice in writing. Supervisory positions require 3-4-week notice.

 Dismissal – The employer has decided to terminate employment

 Termination During Introductory Period – The employer or employee may initiate immediate termination procedures

PERFORMANCE EVALUATION 4.12

Each employee receives regular written evaluations of job performance. These evaluations are objective and based upon their job performance. At the end of the 90 introductory period the supervisor will meet with the employee for a written evaluation, which will become part of the personnel file. Employees who receive an unsatisfactory evaluation may be placed on an extended introductory period and reevaluated in thirty or more days.

Subsequent evaluations will be given annually, on or near the date of hire, or as indicated by performance or a change in job position. All annual evaluations will be in writing and maintained in the personnel file.

Should the evaluation result in a merit raise, the increase must be approved prior to notifying the employee. Pay increases will not be paid retroactively.

JOB DESCRIPTIONS 4.13

Job descriptions have been written for all positions. Each written description includes:

 Qualifications – the education, training, physical capabilities and experience necessary for the position

 Duties and Responsibilities – a detailed description of what is expected from the person hired for the position for all the essential job functions.

 Job Relationships – supervisor and workers supervised

 Risk Category – as related to patient contact

A thorough review of the appropriate job description is included in each new employee’s orientation. A copy of the job description that is signed by the employee to indicate acceptance of the job responsibilities becomes part of the employee personnel file.

CONTINUING EDUCATION 4.14

The agency recognizes the requirement for licensed personnel to obtain approved continuing education credits.

All Home Health, Hospice, and back office Private Duty nurses are provided the opportunity to utilize a web-based program to obtain their required continuing education. This benefit will apply to Private Duty field nurses who have been employed 6 months or longer. Attendance at additional seminars and related expenses are the employee’s responsibility unless the seminar will result in a specialty certification which may meet the qualifications for application through Encompass Scholars.

Full-time therapy clinicians will be eligible to receive a subscription to MedBridge, an online learning CE provider. Attendance at additional seminars and related expenses are the employee’s responsibility unless the seminar will result in a specialty certification which may meet the qualifications for application through Encompass Scholars.

The company does not provide tuition reimbursement for those attending college. Please refer to the Encompass Scholars Program in section 5.11 of this handbook for information regarding this program.

For additional information regarding continuing education refer to Policy and Procedure manual under Personnel, Continuing Education 6.0.

REST AND MEAL PERIODS 4.15

In general, state laws require employers to provide meal and rest periods to employees. Although the federal Fair Labor Standards Act (FLSA) also covers most employees and does not require meal or rest periods, employers must comply with the state law that is most beneficial to the employee. Additional information related to rest and meal breaks can be found in SOP 4.52 Compensation Guidelines.

Additional rest breaks are required to be provided by employers of 25 or more to employees to express milk for a child 18 month of age or younger, unless the rest periods cause an undue hardship to the employer. Employers are also required to make a reasonable effort to provide a private location where the employee can express milk.

The guidelines, policies and/or standards set forth herein will be subject to applicable federal or state law and state-specific addendums. The company may have state-specific addendum(s) to comply with applicable law of particular state.

AMERICANS WITH DISABILITIES ACT (ADA) AND REASONABLE ACCOMMODATIONS 4.16

The Company is committed to equal opportunity in all aspects of employment for qualified individuals with a disability. In accordance with the ADA and state law, and consistent with the Company’s Equal Employment Opportunity Policy, it is the Company’s policy to provide reasonable accommodations in employment to qualified individuals with disabilities unless the accommodation would impose an undue hardship on the operation of the Company’s business or would change the essential functions of the position. Retaliation against any job applicant or employee for requesting a reasonable accommodation or a work-related modification is prohibited.

To obtain a reasonable accommodation, you must (i) inform the Company that you have a disability; (ii) explain the disability-related limitation or workplace issue for which a reasonable accommodation is needed, and (iii) if known, identify any reasonable accommodation you believe is necessary and available to address the applicable limitations. You are encouraged to complete and submit a Reasonable Accommodation Request Form to the Company’s Human Resources Department in order to provide such information. The Company generally will require that you provide medical documentation in connection with the evaluation of a reasonable accommodation request, but you are free to provide medical documentation voluntarily with the initial request. All such medical information received will be handled in accordance with applicable privacy laws and regulations. Failure to submit requested medical documentation may limit the Company’s ability to grant the requested work-related modification.

Human Resources will consider each reasonable accommodation request on an individualized basis and will consult with appropriate Company management and use a solutions-oriented approach to make a determination on the request. Human Resources may also discuss with you any questions or needed clarifications to assess the reasonable accommodation request, including interactive discussions about the nature of the limitations at issue and potential accommodations. The Company may propose and, when appropriate, select an alternative accommodation that allows you to perform the essential job functions or provides you with an equal employment opportunity.

The Company may ultimately approve the requested accommodation as presented, suggest an alternative accommodation designed to permit you to perform the essential functions of your job, or deny the requested accommodation in appropriate circumstances. Such decision will generally be communicated to you in writing and will describe the accommodation granted or state the reason for any denial of an accommodation or decision not to provide a particular requested accommodation. If the Company approves a job accommodation for you, it reserves the right to request that

your health care provider re-certify the need for the job accommodation at reasonable intervals.

All accommodation requests and related documentation, including but not limited to medical information, will be treated confidentially and maintained in a separate file.

If the Company approves a job accommodation for you, it has not made any determination that you are disabled as defined by the Americans with Disabilities Act or other laws.

PREGNANCY, LACTATION ANTI-DISCRIMINATION AND ACCOMMODATION 4.17

Encompass Health will provide employees and applicants with a reasonable accommodation for known limitations related to pregnancy, childbirth, or a related medical condition, including lactation. Reasonable accommodations include, but are not limited to: more frequent or longer bathroom breaks, breaks to express breast milk, access to a private location other than a bathroom for the expression of breast milk, acquisition or modification of equipment or access to or modification of employee seating, a temporary transfer to a less strenuous or hazardous position, assistance with manual labor, assistive equipment, job restructuring, a modified work schedule, light duty assignments, modified dress code or uniform requirements, time off to attend to a pregnancy complication, and leave to recover from childbirth.

Encompass Health will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee's infant child. Encompass Health will provide break time for this purpose up to the allowable amount of time permitted by applicable state law.

Employees needing breaks for lactation purposes may use ordinary paid rest breaks or may take other reasonable break time when needed. If possible, the lactation break time should run concurrently with scheduled meal and rest breaks already provided to the employee. If the lactation break time cannot run concurrently with meal and rest breaks already provided, or additional time is needed for the employee, the lactation break time will be unpaid for nonexempt employees. Where state law imposes more specific requirements regarding the break time or lactation accommodation, Encompass Health will comply with those requirements.

Employees should contact their supervisor during their pregnancy, before their return to work, or within a reasonable notification period to identify the need for a lactation area. In addition, employees should discuss with their supervisor the location for storage of expressed milk. To the extent reasonably possible, Encompass Health will provide a refrigerator, or other cold storage space, or allow the employee to provide her own portable cold storage device for storage of expressed milk.

Encompass Health will make reasonable efforts to provide employees with the use of a room or a private area, other than a bathroom or toilet stall, that is shielded from view and free from intrusion from co-workers and the public. Encompass Health will make a reasonable effort to identify a location within close proximity to the work area for the employee to express milk. This location may be the employee's private office, if applicable.

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

If it is determined that providing a reasonable break time or a private space to express breast milk will cause an undue hardship to company operations, the supervisor should consult with the home office employee relations team.

Encompass Health strictly prohibits discrimination against or harassment of employees because they are breastfeeding mothers and request or take breaks in accordance with this policy. Acts of discrimination should be appropriately reported in accordance with policy and procedure P19 Grievances. Retaliation is prohibited against any person by another employee or by Encompass Health, as outlined in the P27 Open Door policy and procedure, and should be appropriately reported.

EMPLOYEE BENEFITS

BEREAVEMENT 5.01

It is the practice of this organization to pay full-time employees to be absent from work for a period of up to three (3) days for the purpose of bereavement time due to the death of "immediate family". If needed, full-time employees can take an additional (2) days from his/her Extended Illness Benefit (EIB) bucket due to the death of immediate family, for a total of (5) days off.

"Immediate family" for purposes of this policy includes the employee's spouse, brother, sister, father, mother, children, stepchildren, grandparent, grandchildren, father-in-law, mother-in-law, sister-in-law, brother-in-law, daughter-in-law, and son- in-law.

A period of one (1) day will be granted for bereavement due to the death of an employee’s aunt, uncle, niece, nephew, cousin, or in the event of a stillbirth (defined as fetal death after 20 weeks of gestation). If needed, a full-time employee can take an additional (2) days from his/her Extended Illness Benefit bucket due to the death of his/her aunt, uncle, niece, nephew, cousin, or in the event of a stillbirth for a total of (3) days off.

Bereavement days taken do not decrease PDO. However, if employee chooses to take an additional 1-2 days due to the death of “immediate family” or a family member as listed in the above paragraph (aunt, uncle, niece, nephew, and/or cousin), these 1-2 days will be deducted from the employee’s EIB account. Productivity points will be allowed for 1 - 3 bereavement days per the bereavement criteria in the Employee Handbook, and for the additional 1-2 days of EIB. Productivity points allowed are consistent with the employee’s regular point assignment for PDO.

HOLIDAYS 5.02

Company holidays (office closure days) will be determined each year and published prior to the New Year.

For all mandatory company holidays, a minimum number of PDO hours must be used which correlates with the employee’s usual, daily work hours, in most cases this is 8 hours. A PDO deduction is required for full-time salaried and hourly employees.

Details regarding holiday pay, time off from work and PDO are outlined in SOP 4.52 Compensation Guidelines, and in the Holiday Compensation Guide in the SOP Toolbox.

JURY DUTY 5.03

Full-time employees will be paid for loss up to ten (10) business days (80 hours) due to jury duty. A jury summons must be presented to the immediate supervisor as soon as it is received so that days off can be scheduled. Employee must provide proof of attendance of jury duty attendance/service from the court clerk or other court official to his/her supervisor in order to have up to 80 hours classified as “jury duty” instead of PDO.

If an employee is required to appear in court by subpoena or court order as a witness in a civil or criminal proceeding, the employee may be paid for up to two (2) business days (up to 16 hours) of lost work time for having to appear in court. Employees must provide proof of attendance from the court clerk or other court official to his/her supervisor in order to have up to 16 hours classified as “jury duty” instead of PDO. Employees who are appearing in court because they are a named defendant are not eligible for payment of lost time under this provision. Productivity points for jury duty days are not given.

LEAVES OF ABSENCE 5.04

For more details on leaves of absence, including individual state and municipality laws regarding paid sick and family leave, please see the leaves of absence in the SOP 4.33. Family & Medical Leave of Absence Basic Leave Entitlement: The Family and Medical Leave Act requires covered employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the following reasons:

 For incapacity due to pregnancy, prenatal medical care or child birth;

 To care for the employee’s child after birth, or placement for adoption or foster care;

 To care for the employee’s spouse, son or daughter, or parent, who has a serious health condition; or

 For a serious health condition that makes the employee unable to perform the employee’s job.

Military Family Leave Entitlement: Eligible employees with a spouse, son, daughter or parent on active duty or call to active duty status in the National Guard or Reserves in support of a contingency operation may use their 12-week leave entitlement to address certain qualifying exigencies. Qualifying exigencies may include:

 Attending certain military events  Arranging for alternative childcare  Addressing certain financial and legal arrangements  Attending certain counseling sessions, or  Attending post-deployment reintegration briefings.

FMLA also includes a special leave entitlement that permits eligible employees to take up to 26 weeks of leave to care for a covered service member during a single 12-month period. A covered service member is a current member of the Armed Forces, includin g a member of the National Guard or Reserves, who has a serious injury or illness incurred in the line of duty on active duty that may render the service member medically unfit to perform his or her duties for which the service member is undergoing medical treatment, recuperation or therapy; or is in outpatient status; or is on the temporary disability retired list.

FMLA Benefits & Protection: FMLA regulations allow the Company to require employees on FMLA leave to utilize accrued paid days off (PDO) concurrently with the unpaid FMLA leave of absence.

Accordingly, during FMLA leave, an eligible employee must use accrued Extended Illness Benefit (EIB) hours, if available, and then use accrued PDO hours, if available, in that order until exhausted. After accrued Extended Illness Benefit and PDO hours are exhausted, the leave is unpaid. During FMLA leave, the Company will maintain the employee’s health coverage under the “group health plan” on the same terms as if the employee had continued to work. When an employee has exhausted his/her EIB and/or PDO hours and the leave is unpaid, the employee will be responsible for remitting payment to the Company to cover the cost of his/her insurance deductions.

Payments by employees to cover the cost of his/her insurance deductions are due on the 1st day of each month. If payment in full for the month is not received by the 21st day of the month, the employee’s insurance coverage will be terminated at the end of that month.

Upon return from FMLA leave, most employees must be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. Use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the start of an employee’s leave.

FMLA Eligibility Requirements: Employees are eligible if they have worked for a covered employer for at least one year, for 1,250 hours over the previous 12 months, and if at least 50 employees are employed by the employer within 75 miles.

Definition of Serious Health Condition: A serious health condition is an illness, injury, impairment, or physical or mental condition that involves either an overnight stay in a medical care facility, or continuing treatment by a healthcare provider for a condition that either prevents the employee from performing the functions of the employee’s job or prevents the qualified family member from participating in school or other daily activities. Subject to certain conditions, the continuing treatment requirement may be met by a period of incapacity

of more than three consecutive calendar days combined with at least two visits to a healthcare provider or one visit and a regimen of continuing treatment, or incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may meet the definition of continuing treatment.

Use of Leave: An employee does not need to use FMLA leave entitlement in one occurrence. Leave can be taken intermittently or on a reduced leave schedule when medically necessary. Employees must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt the employer’s operations. Leave due to qualifying exigencies may also be taken on an intermittent basis.

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

Employer FMLA Responsibilities: The Company will inform employees requesting leave whether they are eligible under FMLA. If they are eligible, the notice will specify any additional information required as well as the employees’ rights and responsibilities. If a requesting employee is not eligible, the Company will provide a reason for the ineligibility. The Company will inform employees if leave will be designated as FMLA-protected and the amount of leave counted against the employee’s leave entitlement. If the Company determines that the leave is not FMLA-protected, the Company will notify the employee.

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

 Interfere with, restrain, or deny the exercise of any right provided under FMLA;

 Discharge or discriminate against any person for opposing any practice made unlawful by FMLA or for involvement in any proceeding under or relating to FMLA.

Enforcement: An employee may file a complaint with the U.S. Department of Labor or may bring a private lawsuit against an employer. FMLA does not affect any federal or state law prohibiting discrimination or supersede any state or local law or collective bargaining agreement which provides greater family or medical leave rights.

Personal Leave of Absence Unless required by law, a personal leave of absence is a discretionary privilege, not a right, which may be granted to employees who encounter unavoidable circumstances that necessitate an extended absence from the job. Employees who are not on any type of probationary status or disciplinary or performance improvement plan may be considered for unpaid personal leave of absence for reasons that do not qualify for FMLA as described above. The leave of absence may not exceed 90 days, during which time the employee’s tenure with the Company will be considered uninterrupted. Employees who are qualified disabled individuals under the Americans with Disabilities Act (or applicable state law) or employees on leave due to on-the-job injuries may, in certain circumstances, be entitled to additional leave beyond these periods.

Approval of a personal leave of absence will be at the discretion of management and will include such factors as duration and purpose of the leave; availability of a qualified replacement and the workload of the affected department; impact to patient care and agency operations; the overall work record of the employee prior to the request; and the probability that the employee will return. Written application for a personal leave of absence must be submitted to and approved by the supervisor and Human Resources prior to the effective date. PDO, and Extended Illness Benefit hours do not accrue during a personal leave. Medical, dental and vision coverage may be continued during the leave, however if an employee’s leave is unpaid at any point, he/she must remit payment to cover the cost of his/her deductions. Unless otherwise required by law, a personal leave of absence, however, is not in itself a guarantee of continued employment, and the Company reserves the right to fill the position vacated, as necessary. Unless an applicable law requires otherwise, return from leave status is contingent upon availability of openings for which the employee is qualified.

Insurance Coverage and Benefits While on Leave of Absence: Any employee on a personal leave of absence, must use accrued Extended Illness Benefit (EIB) hours, if available, and then use accrued PDO hours, if available, in that order until exhausted. After accrued Extended Illness Benefit and PDO hours are exhausted, the leave is unpaid. During a personal leave, the Company will maintain the employee’s health coverage under the “group health plan” on the same terms as if the employee had continued to work. When an employee has exhausted his/her EIB and/or PDO hours and the leave is unpaid, the employee will be responsible for remitting payment to the Company to cover the cost of his/her insurance deductions.

Payments by employees to cover the cost of his/her insurance deductions are due on the 1st day of each month. If payment in full for the month is not received by the 21st day of the month, the employees’ insurance coverage will be terminated at the end of that month.

Military Leave of Absence All employees are eligible for Military Leave upon employment. Employees called to short-term or active United States Armed Forces service will be granted a military leave of absence without pay for the duration of your service obligation to the extent required by law. An employee will be allowed up to 5 paid work days off for military service obligations without being required to use PDO. If you wish to use your regular PDO or EIB PDO Account for this leave of absence, you may do so but you must use EIB PDO

before your Regular PDO (given you have available EIB PDO hours). Employees on military leave can elect the COBRA plan for health, dental and vision insurance for up to 24 months. You will retain your original date of employment for all benefit programs when you return to work upon your release from military service if you return to work within the required timeframe under state and federal laws regarding release from military duty.

EMPLOYEE BENEFITS 5.05

All full-time employees will be offered health, dental and life insurance coverage on the first day of the month after being employed in full-time classification for 30 days. The company will contribute a certain amount each month towards the employee’s hea lth, dental and life coverage. Dependent coverage is optional and available for the health, dental and life insurance plans at the employee’s expense. Employees choosing to enroll a legally-married spouse or dependent in any company-sponsored t plan must provide proof of the spouse’s and/or dependent(s)’ eligibility as follows:  Copy of the employee’s most recently filed tax return confirming the status of the employee’s spouse and/or child(ren) as eligible dependents. OR  Copy of the employee’s marriage certificate  Copy of each child’s birth certificate, or copy of court decree, or QMSCO (if applicable)

Employees classified as part-time-Health status upon hire will be offered health insurance coverage on the first day of the month after being employed in Part-Time 1 status for sixty days. Other employees identified after hire as having averaged 30 hours or more of work per week under the guidelines of the Affordable Care Act will be offered health insurance coverage on the renewal date of the company’s applicable insurance plan.

All employees will be eligible to participate in the 401(k) program the first day of the month following 90 days of employment. Enrollment information will be mailed to employee’s home address from the retirement plan provider.

To facilitate the group insurance benefit enrollment process, at or near the eligible employee’s one-month anniversary date, a representative of the Home Office HR Department will send a “Benefit Enrollment Email Notification” to the employee’s email address, as assigned by Encompass. This email notification will provide important information about the online benefits enrollment process Encompass employees must use to make coverage and election decisions, including directions to enroll in benefits online through PeopleSoft, the effective date of the employee’s coverage, and the deadline by which the employee must complete the enrollment process, including the decision to enroll or waive coverage. Enrollment in group insurance benefit plans are time sensitive. If an employee does not complete the enrollment process by the stated deadline, the employee must wait until the next Open Enrollment period to enroll, except in the instance of a qualifying event. The employee may contact a Home Office HR Department representative for assistance with the enrollment, benefit plan information and available options.

TRAVEL REIMBURSEMENT 5.06

When a Home Health, Hospice or Agency (excludes Private Duty field) employee’s automobile is used to conduct company business, travel reimbursement will be paid at the pre-established rate per agency or company protocol. The employee must maintain records for miles driven and submit via their time sheet unless that information is captured on the mobile device used for completing the visit or contact documentation. Mileage must include beginning and ending odometer readings, in whole miles, and the purpose of the trip. The mileage calculated via the mobile device will be used to determine the amount reimbursed to the employee, which is the lesser of calculated versus reported miles. If an employee feels that the reimbursed mileage is incorrect, the employee’s supervisor will evaluate both calculated and reported mileage to assess any discrepancies or errors. When an employee participates in the company car program, mileage will not be paid.

PAID DAYS OFF (PDO) GUIDELINES 5.07

Employees earn PDO hours each pay period based on employee classification of full-time and part-time exempt. Details are outlined below for full-time and part-time exempt employees, care plan management employees paid biweekly, 7on/7off shift employees paid biweekly, and full-time field private duty employees paid weekly.

The guidelines, policies and/or standards set forth herein will be subject to applicable federal or state law and state-specific addendums. The company may have state-specific addendum(s) to comply with applicable law of particular state.

PDO Plan for Full-Time and Part-Time Exempt Employees

A full-time or part-time exempt employee will accrue 0.1155 PDO hours for all regular hours worked, up to the expected number of hours per workweek. PDO accrual for full- time employees working fewer than 40 hours per week will be prorated accordingly. Time taken off without pay will not accrue PDO hours. 100% full-time employees may accrue up to 9.24 hours per pay period, and 60% part-time exempt employees may accrue up to 5.54 hours per pay period. 80% full-time employees may accrue up to 6.93- 9.01 hours per pay period dependant on their expected regular schedule.

These hours can be used for paid days off for any reason as long as PDOs are scheduled in advance and approved by the supervisor. The PDO hours will be tracked on the pay stub. Please note that Jury Duty is not PDO hours. Only PDO, and the first 1-3 days of Bereavement as explained in the Bereavement section of the Employee Handbook, has associated productivity points. Bereavement are “free days” from the company that you are paid without having to use your PDO.

1. PDO hours are accrued during the first 90 days of employment. However, no hours may be used until the completion of a 90-day introductory period, with the exception of holidays. If you leave the organization prior to completing the introductory period, any PDO hours advanced for a scheduled holiday will be deducted from the employee's final paycheck.

2. All scheduled absences must be requested by the employee and approved by the direct supervisor at least 30 days prior to the scheduled day off. This procedure is necessary for accommodation of all requests for time off. The organization cannot guarantee PDO will be granted for all days requested, therefore, it is important to request PDO as early as possible. Field staff should work with their supervisors in order to ensure that patient care issues are covered on holidays.

3. PDO hours should be used for unscheduled absences, i.e. illness and inclement weather.

4. PDO hours may be approved for emergency excused absences if the supervisor is provided with information that verifies the emergency. Written documentation may be required.

5. The supervisor must be directly notified of unscheduled absences at least one hour in advance of expected start time. Unscheduled absences or tardiness without supervisory approval are subject to disciplinary action. In addition, if an employee calls in sick directly before / after a holiday more than one time, the Agency has the right to deny the PDO request.

6. PDO must be used for any time not worked during any employee’s regular work schedule. If a full-time salaried employee takes PDO during the pay period, one 8- hour (100%) or 6.4 hour (80%) PDO entry is required for each PDO day taken, the equivalent of one full day. If a full-time salaried employee is off work for more than ½ a day, at least 4 hours (100%) or 3.2 hours (80%) must be taken for PDO, or the equivalent of a half day based on the employee’s normal work hours.

7. Full-time and part-time exempt employees are required to take PDO on Office Closure Days (company holidays). Please refer to SOP 4.52 Compensation Guidelines – Holiday Compensation for additional details.

8. PDO hours will be accumulated in each employee's PDO bank account.

9. PDO accruals cannot be donated from one employee to another.

10. PDO hours cannot be “borrowed” in advance, except for scheduled holidays. Should the PDO bank indicate a negative balance upon termination of employment, a deduction will be made to the final check.

11. Scheduled absences exceeding eight to ten working days, or the equivalent of two workweeks, require the approval of the supervisor.

12. Employees will not be allowed to use PDO if they are suspended with cause and / or pending internal or external investigations.

13. An employee’s accrued, unused and unpaid PDO balance is no longer available and will not be paid out to the employee upon the employee’s termination, resignation, or change in full-time employment status (“Status Change”), unless required by state law, even if the PDO was approved prior to the notice of any of the previously noted changes. So pre-approved PDO cannot be taken once a resignation has been provided.

14. As long as our employee provides at least two weeks’ notice of their resignation, they would be paid for PDO taken prior to their date of termination or resignation. If the employee provides less than a two-week notice, then prior PDO that has been taken, but not yet paid, could be withheld from payment.

15. If a non-PDO eligible employee transitions to a full-time or part-time exempt position, he/she will not be eligible to use his/her PDO until a full 90 days have

passed from the time the employee was designated “Full-Time” or “Part-Time Exempt.”

16. Employees who are taking days off without pay, who are on leave or are off due to a Worker’s Comp/Occupational Injury (or any other form of UNPAID leave) will not accrue PDO. If an employee is using PDO or EIB, the employee’s PDO continues to accrue.

17. In order to retain an active employment status with the Agency, both fulltime and non-fulltime employees are required to “share” holiday coverage. This means that ALL staff are expected to notify their supervisor in advance of PDO and “unavailable days” during holidays to allow the Supervisor time to ensure that coverage is both adequate and shared/balanced between full-time and non- fulltime employees.

PDO Plan for Care Plan Management Employees

A full-time care plan management employee will accrue 0.076875 PDO hours for all regular hours worked, up to the expected number of hours per workweek. PDO accrual for full-time employees working fewer than 40 hours per week will be prorated accordingly. Time taken off without pay will not accrue PDO hours. Full-time employees may accrue up to 6.15 hours per pay period.

These hours can be used for paid days off for any reason as long as PDOs are scheduled in advance and approved by the supervisor. The PDO hours will be tracked on the pay stub. Please note that Jury Duty is not PDO hours. Only PDO, and the first 1-3 days of Bereavement as explained in the Bereavement section of the Employee Handbook, has associated productivity points. Bereavement are “free days” from the company that you are paid without having to use your PDO.

1. PDO hours are accrued during the first 90 days of employment. However, no hours may be used until the completion of a 90-day introductory period, with the exception of holidays. If you leave the organization prior to completing the introductory period, any PDO hours advanced for a scheduled holiday will be deducted from the employee's final paycheck.

2. All scheduled absences must be requested by the employee and approved by the direct supervisor at least 30 days prior to the scheduled day off. This procedure is necessary for accommodation of all requests for time off. The organization cannot guarantee PDO will be granted for all days requested, therefore, it is important to request PDO as early as possible. Field staff should work with their supervisors in order to ensure that patient care issues are covered on holidays.

3. PDO hours should be used for unscheduled absences, i.e. illness and inclement weather.

4. PDO hours may be approved for emergency excused absences if the supervisor is provided with information that verifies the emergency. Written documentation may be required.

5. The supervisor must be directly notified of unscheduled absences at least one hour in advance of expected start time. Unscheduled absences or tardiness without supervisory approval are subject to disciplinary action. In addition, if an employee calls in sick directly before / after a holiday more than one time, the Agency has the right to deny the PDO request.

6. PDO must be used for any time not worked during any employee’s regular work schedule. If a full-time salaried employee takes PDO during the pay period, one 8- hour PDO entry is required for each PDO day taken, the equivalent of one full day. If a full-time salaried employee is off work for more than ½ a day, at least 4 hours must be taken for PDO, or the equivalent of a half day based on the employee’s normal work hours.

7. Full-time employees are required to take PDO on Office Closure Days (company holidays). Please refer to SOP 4.52 Compensation Guidelines – Holiday Compensation for additional details.

8. PDO hours will be accumulated in each employee's PDO bank account.

9. PDO accruals cannot be donated from one employee to another.

10. PDO hours cannot be “borrowed” in advance, except for scheduled holidays. Should the PDO bank indicate a negative balance upon termination of employment, a deduction will be made to the final check.

11. Scheduled absences exceeding ten working days, or the equivalent of two workweeks, require the approval of the supervisor.

12. Employees will not be allowed to use PDO if they are suspended with cause and / or pending internal or external investigations.

13. An employee’s accrued, unused and unpaid PDO balance is no longer available and will not be paid out to the employee upon the employee’s termination, resignation, or change in full-time employment status (“Status Change”), unless required by state law, even if the PDO was approved prior to the notice of any of the previously noted changes. So pre-approved PDO cannot be taken once a resignation has been provided.

14. As long as our employee provides at least two weeks’ notice of their resignation, they would be paid for PDO taken prior to their date of termination or resignation. If the employee provides less than a two-week notice, then prior PDO that has been taken, but not yet paid, could be withheld from payment.

15. If a non-PDO eligible employee transitions to a full-time or part-time exempt position, he/she will not be eligible to use his/her PDO until a full 90 days have passed from the time the employee was designated “Full-Time” or “Part-Time Exempt.”

16. Employees who are taking days off without pay, who are on leav e or are off due to a Worker’s Comp/Occupational Injury (or any other form of UNPAID leave) will not accrue PDO. If an employee is using PDO or EIB, the employee’s PDO continues to accrue.

17. In order to retain an active employment status with the Agency, both fulltime and non-fulltime employees are required to “share” holiday coverage. This means that ALL staff are expected to notify their supervisor in advance of PDO and “unavailable days” during holidays to allow the Supervisor time to ensure that coverage is both adequate and shared/balanced between full-time and non- fulltime employees.

PDO Plan for 7on/7off Employees

Full-time RN employees who work a 7on/7off shift and are paid bi-weekly will accrue up to 3.08 PDO hours per pay period for all regular hours paid up to a maximum of 80 hours of accrued PDO per PDO plan year. The PDO plan year is September 1 through August 31

of every year. PDO accrual for full-time RN 7on/7off employees working fewer than 80 hours per pay period will be prorated accordingly. Time taken off without pay will not accrue PDO hours.

These hours can be used for paid days off for any reason as long as PDOs are scheduled in advance and approved by the supervisor. The PDO hours will be tracked on the pay stub. Please note that Jury Duty is not PDO hours. Only PDO, and the first 1-3 days of Bereavement as explained in the Bereavement section of the Employee Handbook, has associated productivity points. Bereavement are “free days” from the company that you are paid without having to use your PDO.

1. PDO hours are accrued during the first 90 days of employment. However, no hours may be used until the completion of a 90-day introductory period, with the exception of holidays. If you leave the organization prior to completing the introductory period, any PDO hours advanced for a scheduled holiday will be deducted from the employee's final paycheck.

2. All scheduled absences must be requested by the employee and approved by the direct supervisor at least 30 days prior to the scheduled day off. This procedure is necessary for accommodation of all requests for time off. The organization cannot guarantee PDO will be granted for all days requested, therefore, it is important to request PDO as early as possible. Field staff should work with their supervisors in order to ensure that patient care issues are covered on holidays.

3. PDO hours should be used for unscheduled absences, i.e. illness and inclement weather.

4. PDO hours may be approved for emergency excused absences if the supervisor is provided with information that verifies the emergency. Written documentation may be required.

5. The supervisor must be directly notified of unscheduled absences at least one hour in advance of expected start time. Unscheduled absences or tardiness without supervisory approval are subject to disciplinary action. In addition, if an employee calls in sick directly before or after a holiday more than one time, the Agency has the right to deny the PDO request.

6. PDO must be used for any time not worked during any employee’s regular work schedule. If an employee takes PDO during the pay period, one 11-hour PDO entry is required for each PDO day taken. If an employee is off work for more than ½ a day, at least 5.5 hours must be taken for PDO or the equivalent of a half day based on the employee’s normal work hours.

7. Full time RN 7on/7off employee may elect to take PDO on office closure days (company holidays). If the employee chooses not to use PDO, they will not have any points assigned for the day. Please refer to SOP 4.52 Compensation Guidelines – Holiday Compensation for additional details.

8. PDO hours will be accumulated in each employee's PDO bank account.

9. PDO accruals cannot be donated from one employee to another.

10. PDO hours cannot be “borrowed” in advance, except for scheduled holidays. Should the PDO bank indicate a negative balance upon termination of employment, a deduction will be made to the final check.

11. Scheduled absences exceeding ten working days require the approval of the supervisor.

12. Employees will not be allowed to use PDO if they are suspended with cause and / or pending internal or external investigations.

13. An employee’s accrued, unused and unpaid PDO balance is no longer available and will not be paid out to the employee upon the employee’s termination, resignation, or change in full-time employment status (“Status Change”) , unless required by state law, even if the PDO was approved prior to the notice of any of the previously noted changes. So pre-approved PDO cannot be taken once a resignation has been provided.

14. As long as our employee provides at least two weeks’ notice of their resignation, they would be paid for PDO taken prior to their date of termination or resignation. If the employee provides less than a two-week notice, then prior PDO that has been taken, but not yet paid, could be withheld from payment.

15. If a non-full-time employee transitions to a full-time position, he/she will not be eligible to use his/her PDO until a full 90 days have passed from the time the employee was designated “Full-Time.”

16. Employees who are taking days off without pay, who are on leave or are off due to a Worker’s Comp/Occupational Injury (or any other form of UNPAID leave) will not accrue PDO. If an employee is using PDO or EIB, the employee’s PDO continues to accrue.

17. In order to retain an active employment status with the Agency, both fulltime and non-fulltime employees are required to “share” holiday coverage. This means that ALL staff are expected to notify their supervisor in advance of PDO and “unavailable days” during holidays to allow the supervisor time to ensure that coverage is both adequate and shared/balanced between full-time and non- fulltime employees.

PDO Plan for Private Duty Weekly Paid FT Employees

Full-Time Field Private Duty employees paid weekly and who work 40 hours per week will accrue 0.01923 PDO hours for all regular hours paid up to a maximum of 40 hours of accrued PDO per PDO plan year. The PDO plan year is September 1 through August 31 of every year. PDO accrual for Full-Time Field Private Duty employees working fewer than 40 hours per week will be prorated accordingly. Time taken off without pay will not accrue PDO hours.

These hours can be used for paid days off for any reason as long as PDOs are scheduled in advance and approved by the supervisor. The PDO hours will be tracked on the pay stub. Please note that Jury Duty is not PDO hours. Only PDO, and the first 1-3 days of Bereavement as explained in the Bereavement section of the Employee Handbook, has associated productivity points. Bereavement are “free days” from the company that you are paid without having to use your PDO.

1. PDO hours are accrued during the first 90 days of employment. However, no hours may be used until the completion of a 90-day introductory period, with the exception of holidays. If you leave the organization prior to completing the introductory period, any PDO hours advanced for a scheduled holiday will be deducted from the employee's final paycheck.

2. All scheduled absences must be requested by the employee and approved by the direct supervisor at least 30 days prior to the scheduled day off. This procedure is necessary for accommodation of all requests for time off. The organization cannot

guarantee PDO will be granted for all days requested, therefore, it is important to request PDO as early as possible. Field staff should work with their supervisors in order to ensure that patient care issues are covered on holidays.

3. PDO hours may be used for unscheduled absences, i.e. illness and inclement weather, and for holidays. If an employee is off work for a day, on 8-hour PDO entry is required for each PDO day taken. If the employee’s regular work day is fewer than 8 hours (e.g. 7 hours – the employee would take enter the prorated PDO hours of 7 to match their standard work day).

4. PDO hours may be approved for emergency excused absences if the supervisor is provided with information that verifies the emergency. Written documentation may be required.

5. The supervisor must be directly notified of unscheduled absences at least one hour in advance of expected start time. Unscheduled absences or tardiness without supervisory approval are subject to disciplinary action. In addition, if an employee calls in sick directly before / after a holiday more than one time, the Agency has the right to deny the PDO request.

6. PDO hours will be accumulated in each employee's PDO bank account.

7. PDO accruals cannot be donated from one employee to another.

8. PDO hours cannot be “borrowed” in advance. Should the PDO bank indicate a negative balance upon termination of employment, a deduction will be made to the final check.

9. Scheduled absences exceeding ten working days require the approval of the supervisor.

10. Employees will not be allowed to use PDO if they are suspended with cause and / or pending internal or external investigations.

11. An employee’s accrued, unused and unpaid PDO balance is no longer available and will not be paid out to the employee upon the employee’s termination, resignation, or change in full-time employment status (“Status Change”) , unless required by state law, even if the PDO was approved prior to the notice of any of the previously noted changes. So pre-approved PDO cannot be taken once a resignation has been provided.

12. As long as our employee provides at least two weeks’ notice of their resignation, they would be paid for PDO taken prior to their date of termination or resignation. If the employee provides less than a two-week notice, then prior PDO that has been taken, but not yet paid, could be withheld from payment.

13. If a non-full-time employee transitions to a full-time position, he/she will not be eligible to use his/her PDO until a full 90 days have passed from the time the employee was designated “Full-Time.”

14. If a Full-Time Field Private Duty employee transfers to an office position or to a full-time position at a different home Encompass Health – Home Health & Hospice office, the employee will retain their PDO balance as of the date of the transfer and would be eligible for the regular PDO plan for FT employees.

15. If a FT non-Private Duty Field employee transfers to a FT Field position for a Private Duty office, the employee will retain their accrued PDO/EIB balances as of the date of the transfer but will switch to the accrual rate for the FT Field Private Duty PDO Plan. Such employees will not be eligible to begin accruing PDO again until their PDO balance drops below 40 hours.

16. Employees who are taking days off without pay, who are on leave or are off due to a Worker’s Comp/Occupational Injury (or any other form of UNPAID leave) will not accrue PDO. If an employee is using PDO or EIB, the employee’s PDO continues to accrue.

17. In order to retain an active employment status with the Agency, both fulltime and non-fulltime employees are required to “share” holiday coverage. This means that ALL staff are expected to notify their supervisor in advance of PDO and “unavailable days” during holidays to allow the Supervisor time to ensure that coverage is both adequate and shared/balanced between full-time and non- fulltime employees.

EXTENDED ILLNESS BENEFIT (EIB) and PDO Rollover 5.08

All full time and part-time exempt employees, including Private Duty Full-Time Field employees, are eligible for Extended Illness Benefit (EIB) compensation. The Extended Illness Benefit (EIB) Program was developed to improve the employee experience to allow a rollover of up to a combined total of 490 hours for full-time employees, and 300 for part-time exempt employees, into your PDO and EIB accounts. Through the program, full-time employees will be allowed to roll 48 hours into your PDO account and accrue up to 450 hours into your EIB account; part-time exempt employees will be allowed to roll 30 hours into your PDO account and accrue up to 270 hours into your EIB account. *Note that eight of the 48 hours (100%), or six of the 30 hours (60%), rolled over will be utilized for the Labor Day company recognized holiday in early September. This will provide you with the opportunity to rollover significantly more hours to protect you from the risk of lost income during periods of extended absences due to the illness of you or a family member under your care.

If, at the end of the pay period that includes August 31st, you have been employed in a full-time status, part-time exempt status, or any combination of the two for less than twelve (12) months, you will be allowed to roll over 100% of your PDO balance into your PDO account and you will continue to accrue PDO in the coming year at your current rate per pay period. For all other PDO-eligible employees, unused PDO hours in excess of 48 (100%) or 30 (60%) as of the end of the pay period that includes August 31st will transfer to their EIB accounts. Please reference the SOP 4.52, Extended Illness Benefit (EIB), for full details.

The maximum number of EIB hours allowed to accumulate is 450 hours for full-time employees and 270 hours for part-time exempt employees, after which point the EIB hours will cease to accumulate until the bank is reduced.

Subject to an employee’s length of employment with Encompass, an employee is allowed to designate one days worth of hours of their accrued EIB per year of employment and use it to cover time off from work for participation in Encompass Cares sponsored mission trips. Employees can begin to use those designated EIB hours once they complete their three-year anniversary with the company, and based upon available EIB balance. An employee is allowed to use a cumulative number of EIB hours which correlate with their years of service to the company, up to a maximum of five days worth of hours per mission trip. Any mission trips which last longer than five work days would require the employee to take the remaining days off from their regular PDO bucket.

Examples to illustrate this new, expanded policy:  If an employee has been with the company for two years, they are not allowed to use EIB for their mission trip, but could use regular PDO;

 If an employee has been with the company for four years and have never used any EIB hours for a mission trip, they would be allowed to use up to four days worth of hours from their available EIB bucket for their mission trip;

 If an employee has been with the company for eight years, they would be allowed to use up to eight days worth of hours from their available EIB bucket for their mission trip. But, if an employee took a trip at year five and used five days worth of hours from EIB for the mission trip and had not taken another mission trips until year eith, then they would have up to three days worth of hours from their available EIB at year eight to use for a mission trip.

VOTING 5.09

Encompass Health believes that it is the responsibility and duty of all citizens to exercise the privilege of voting in elections. In accordance with this philosophy, the company will grant its employees approved time off to vote and for periods of service as an election official. Where state or local laws offer more protections or benefits to employees, the protections or benefits provided by such laws will apply.

 Voting time: All employees should be able to vote either before or after regularly assigned work hours. However, when this is not possible due to work schedules, managers are authorized to grant a reasonable period of time, up to three hours, during the work day to vote. Hourly employees will need to use their accrued PDO hours for these voting hours and the time should be reported and coded appropriately on timekeeping records.

 Election leave: Employees who are chosen to serve as election officials at polling sites will be permitted to take required time off to serve in this capacity. It is incumbent on employees who are chosen to act as election officials to notify their manager a minimum of seven days in advance of their need for time off in order to accommodate the necessary rescheduling of work periods. Employees will need to use their accrued PDO hours for time engaged as an election official and the time should be reported and coded appropriately on timekeeping records.

 Voting information resource: Employees are encouraged to refer to their local election board, or this link in SOP 4.52, for resources on registering to vote, absentee voting guidance, state voter ID laws, voting rights, and how to share political opinions respectfully.

WAGE ASSIGNMENTS 5.10

In the event that a garnishment order or wage assignment against an employee's earnings is served on the organization, the organization will comply with State and Federal laws and regulations.

The organization will advise the employee of the wage assignment served against him/her prior to making any deductions from the employee's wages.

EMPLOYEE REFERRAL BONUS PROGRAM 5.11

The company has a referral bonus plan in place for the referring of potential applicants that are then hired into the company. Ask your supervisor for the current bonus plan.

EMPLOYEE SCHOLARS PROGRAM 5.12

Program scholarships may apply for successfully completed coursework aimed at improving the professional skills, knowledge and abilities of the employee. Scholarship UP TO $2,500 per year for full-time employees. Scholarship UP TO $1,250 per year for part-time 1 or PRN employees. All employees seeking scholarships MUST complete the application form.

All employees may apply who meet the following criteria:  Have been employed by Encompass for the past 12 consecutive months.  If a part-time or PRN employee, have worked at least 1,000 hours or performed 700 points worth of visits in the past 12 consecutive months.  Are not on any type of employment or job performance-related probation or plan of action, and are meeting acceptable performance criteria for their current positions with Encompass.

ENCOMPASS YOUNG SCHOLARS PROGRAM 5.13

The Encompass Young Scholars Program is a supplement to the current Encompass Scholars Program for employees. The objective of the Young Scholars Program is to assist employees in providing post-secondary education opportunities for their dependents. Encompass will provide a designated number of assistance awards per calendar year; see criteria below. In order for an employee’s dependent to be eligible for tuition assistance, the employee must meet the criteria for the “Employee Scholar Program” outlined in the Employee Scholars Program section of the Employee Handbook. Dependents must submit an application to the Dependent Tuition Assistance Program Committee. Applications will be accepted from April 1st to April 30th for the fall semester grants and from October 1st to October 31st for the spring semester grants.

All dependents may apply who meet the following criteria:

 Is an eligible employee’s child or grandchild;

 Is unmarried and primarily dependent on the eligible employee for support;

 Is under age 23;

 Is pursuing a degree or certification through an accredited public or private university, community college, trade or technical school, or vocational school; and

 Has not received prior tuition assistance award from Encompass.

EQUIPMENT ISSUED 5.14

Supplies and equipment may be provided to employees but should be returned upon termination of employment or extended time off such as FMLA. Any employee that does not perform visits within a 30-day period should return all supplies and equipment. Employees are required to sign for the receipt of all equipment issued. Failure to return any equipment in the condition it was originally assigned to the employee will result in the replacement cost being deducted from the employee’s final paycheck. If a device is lost/stolen from a current employee, the cost will be deducted from the employee’s next paycheck, either in full or in installments. The Supervisor and employee will agree upon best method for reimbursement to Encompass.

If a device or written documentation containing PHI is lost/stolen, then the first offense of breach by a staff member will involve a written counseling from his/her supervisor. Any subsequent events of breach by that staff member will result in a monetary penalty being assessed, in addition to the replacement cost of the device of $300. Subsequent breaches will bring a Compliance Committee Review to consider termination.

If there is need for equipment outside of the standard issue to address specific medical conditions (e.g. ergonomic keyboards, etc.), the employee should complete Form 150P ADA – Employee Request for Reasonable Accommodation, including the Physician Questionnaire, and submit it to the HR Department.

OCCUPATIONAL INJURY/ILLNESS 5.15

An on-the-job injury and illness must be reported immediately to the supervisor.

An Employee Confidential Incident Report Form / Employee BBP and Exposure Report form concerning a work-related injury must be completed by the employee by the end of the working day of the occurrence. The report must be filled out completely including, but not limited to, the date, time and place of injury, how the injury occurred, and injury or injuries sustained. The form and support documentation will be considered confidential and will be filed in the employee’s medical file.

As the organization directs, the employee may be requested to seek medical attention. If the employee refuses physician follow-up, then the employee must sign a release of liability.

A drug and/or alcohol screen test will be performed on an employee involved in a significant work-related incident or injury if injuries sustained require more than basic first aid care, and/or post auto accident, if property damage in excess of $2000 is incurred and there is a reasonable possibility that drugs and/or alcohol may hav e been a contributing factor to the incident or accident.

This organization will not be responsible for any cost incurred in the treatment of unreported, and/or undocumented on-the-job incidents within the scope of the law.

ACKNOWLEDGEMENT OF ENCOMPASS HEALTH EMPLOYEE HANDBOOK

I, the undersigned Encompass Health employee acknowledge and agree that I have received the Encompass Health – Home Health & Hospice Employee Handbook training regarding employment policies and procedures.

I also agree to familiarize myself with, and adhere to, the employment policies and procedures laid out in the Encompass Health Employee Handbook.

ACKNOWLEDGEMENT OF RECEIPT of Colorado Overtime and Minimum Pay Standards (COMPS) Order #37

I acknowledge that I have been provided with a copy of the Colorado Overtime and Minimum Pay Standards (COMPS) Order #37, as an addendum to this employee handbook.

ACKNOWLEDGEMENT OF RECEIPT of Washington State Department of Labor and Industries Paid Sick Leave

I acknowledge that I have been notified of my paid sick and safe leave rights, as an addendum to this employee handbook.

Employee Signature

Employee Printed Name

Date

Branch / Location

COLORADO ADDENDUM TO PAID DAYS OFF (PDO) GUIDELINES

Paid Sick and Safe Leave In compliance with Colorado’s Healthy Families and Workplaces Act (HFWA), the company will provide all employees working in Colorado with paid sick leave. Sick leave will be provided through this Paid Sick and Safe Leave (PSSL) policy, which is an addendum to the company’s Paid Days Off (PDO) Guidelines.

Employees Entitled to the PSSL Benefit All employees who work in Colorado are eligible to accrue and use PSSL and may receive additional leave for use during a public health emergency (PHEL). Employees who are eligible to accrue PDO may designate up to 48 hours of PDO as PSSL, as well as an additional 32 hours of PDO as PHEL, as detailed below.

PSSL Permissible Usage Eligible employees may use PSSL for the following reasons: • When a mental or physical illness, injury or health condition prevents the employee from working; • To care for a family member who has a mental or physical illness, injury or health condition; • To obtain a medical diagnosis, care or treatment of a mental or physical illness, injury or health condition of the employee or employee’s family member; • To obtain preventive medical care for the employee or employee’s family member; • If the employee or a family member is the victim of domestic abuse, sexual assault or harassment and needs leave to: o Seek medical attention to recover from a mental or physical illness, injury or health condition caused by the domestic abuse, sexual assault or harassment; o Obtain services from a victim services organization; o Obtain mental health or other counseling; o Seek relocation due to the domestic abuse, sexual assault or harassment; or o Seek legal services, including preparing for or participating in a civil or criminal proceeding relating to or resulting from the domestic abuse, sexual assault or harassment. • When, due to a public health emergency (as defined below), a public official has ordered the closure of: o The employee’s place of business; or o The school or place of care of the employee’s child and the employee needs to be absent from work to care for their child. For purposes of this policy, a “family member” means: • An employee's immediate family member (i.e., a person related by blood, marriage, civil union or adoption); • A child to whom the employee stands in loco parentis; • A person who stood in loco parentis to the employee when the employee was a minor; or • A person for whom the employee is responsible for providing or arranging health- or safety-related care.

Parameters of PSSL Use The company will allow use of PSSL for a covered use upon request. Requests can be made orally or in writing, including electronically. When possible, employees should include the expected duration of the absence in their request for leave.

When the need for PSSL is foreseeable, employees must make a good faith effort to provide advance notice of the need for leave and a reasonable effort to schedule the leave in a manner that does not unduly disrupt the company’s operations. To provide this advance notice of the foreseeable need to use PSSL, employees should contact home office human resources or their immediate supervisor.

Employees are not required to search for or find a replacement worker to cover the hours during which they are using PSSL. The company will not count employees' use of PSSL in compliance with this policy as an absence when evaluating absenteeism. Therefore, any such use of PSSL will not lead to or result in discipline, demotion, suspension or termination.

If PSSL is for four or more consecutive work days (meaning at least four consecutive days that the employee would ordinarily have worked), the company may request that employees provide reasonable documentation that the PSSL is being used for a permissible purpose. If the documentation submitted by the employee is not sufficient, the company will notify the employee of the deficiency. The employee will then have seven days to provide adequate documentation.

The company does not require the disclosure of details regarding an employee’s or employee’s family member’s health information or the domestic violence, sexual assault, or stalking that is the basis for the request for leave.

Accrual of PSSL – Non-PDO Eligible Employees Employees who are ineligible to accrue PDO will begin to accrue PSSL on Jan 1, 2021, or their date of hire, whichever occurs later. PSSL accrues at a rate of one hour for every 30 hours worked, up to a maximum accrual of 48 hours in a calendar year, Jan 1 – Dec 31 (Benefit Year). Exempt employees accrue PSSL based on their normal hours worked, up to a maximum of 40 hours per week.

PSSL can be used as it is accrued. However, the company may verify employee hours within the month after work is performed and adjust PSSL accrual amounts to correct any inaccuracy. The company will notify employees in writing of any such change in accrued PSSL amounts.

PSSL may be used in one hour increments. Eligible employees may use up to 48 hours of PSSL in any Benefit Year.

Failure to use PSSL in good faith and for the reasons specified in this policy can result in discipline.

Accrual of Paid Sick Leave – Benefit Eligible Employees Benefit eligible employees do not have a separate sick leave accrual. Instead, as noted above, benefit eligible employees can use up to 48 hours days of PDO for PSSL purposes. Such PDO time will be subject to the usage rules described herein.

Carryover of PSSL Employees can carry over up to 48 hours of accrued but unused PSSL from one Benefit Year to the next. However, employees may not use more than 48 hours of PSSL in a Benefit Year.

The company does not offer pay in lieu of actual PSSL.

Public Health Emergency Leave In addition to the PSSL described above, the company will provide employees with PHEL in accordance with the terms below.

For purposes of this policy, a “public health emergency” is: • An act of bioterrorism, a pandemic influenza or an epidemic caused by a novel and highly fatal infectious agent, for which: o An emergency is declared by a federal, state or local public health emergency; or o A disaster emergency is declared by the governor; or o A highly infectious illness or agent with epidemic or pandemic potential for which a disaster emergency is declared by the Governor.

On the day a public health emergency is declared, benefit-eligible employees who have not yet accrued 80 hours of PDO for the year and non-benefit eligible employees will immediately be able to access a one-time supplement of PHEL in addition to whatever amount of PSSL employees have accrued prior to the declaration of the public health emergency. Benefit-eligible employees who have accrued 80 hours of PDO for the year will not be granted additional PHEL.

Employees eligible to accrue PHEL who normally work 40 or more hours in a week shall have access to up to 80 hours of total paid leave. Employees eligible to accrue PHEL who normally work fewer than 40 hours per week shall have access to paid leave equaling either the amount of time the employee is scheduled to work in the upcoming 14-day period or the amount of time the employee actually worked on average in the 14-day period prior to the declaration of the public health emergency, whichever is greater.

From the declaration of a public health emergency until four weeks after the official termination or suspension of the emergency declaration, PHEL can be used for any of the following reasons: • To self-isolate and care for oneself or a family member who is self-isolating because the employee or family member is diagnosed with, or experiencing symptoms of, a communicable illness that is the cause of a of a public health emergency; • To seek or obtain for oneself or care for family member who needs a medical diagnosis, care, or treatment if experiencing symptoms of a communicable illness that is the cause of a public health emergency; • To seek for oneself or a family member preventive care concerning a communicable illness that is the cause of a public health emergency; • An employee is unable to work because the employee has a health condition that may increase susceptibility to or risk of communicable illness that is the cause of the public health emergency; • Either the company or a public health authority with appropriate jurisdiction determines that an employee’s presence on the job or in the community would jeopardize the health of others because of the individual’s exposure to a communicable illness that is the cause of a public health emergency or because the individual is exhibiting symptoms of such a communicable illness, regardless of whether the individual has been diagnosed with the illness; • To care for a family member after either the family member’s employer or a public health authority with appropriate authority determines that the family

member’s presence on the job or in the community would jeopardize the health of others because of the family member’s exposure to a communicable illness that is the cause of a public health emergency or because the family member is exhibiting symptoms of such a communicable illness, regardless of whether the family member has been diagnosed with the illness; • To care for a child or other family member when their child care provider is unavailable due to a public health emergency or their school or place of care has been closed due to a public health emergency (including when the school or place of care is physically closed but providing instruction remotely).

PHEL will become available on the date a public health emergency is declared and will remain available until four weeks after the official termination or suspension of the public health emergency. Employees are only eligible for these amounts of PHEL one time during the entirety of a public health emergency, even if the public health emergency is extended, amended, restated or prolonged.

During a public health emergency, non-benefit-eligible employees will continue to accrue PSSL in accordance with this policy. Any accrued, unused PSSL will be counted in determining the amount of PHEL available.

When the need for PHEL is foreseeable and the workplace has not been closed, employees must notify the company of the need for PHEL as soon as practicable. To provide notice of the need to use PHEL, employees should contact home office human resources or their immediate supervisor.

Rate of Pay PSSL and PHEL are paid at the same hourly rate or salary (not including overtime, bonuses or holiday pay) and with the same benefits, including health care benefits, as the employee normally earns during hours worked. Leave will be paid on the same schedule as regular wages.

Recordkeeping Upon an employee’s request, the company will provide (in writing or electronically) documentation indicating the current amount of PSSL and/or PHEL available for use and the amount of such leave already used during the current Benefit Year. Employees will be allowed to make one such request per month, except they may make an additional request when any need for PSSL or PHEL arises.

Change of status PDO benefit eligible employees that change status to a non-PDO benefit eligible status will have any accrued PDO balance paid out and will begin accruing PSSL under the terms for “Accrual of Paid Sick Leave – Non-Benefit Eligible Employees” set forth above.

Non-PDO benefit eligible employees that change status to a PDO benefit eligible status will maintain the separate sick bank and begin accruing under the PDO plan. The sick bank may be utilized while the employee begins to accrue PDO. The maximum amount of sick leave that can be used in one calendar year is 48 hours.

Confidentiality The company will keep confidential the health or safety information of an employee or employee's family member. Such information will not be disclosed except to the

affected employee, with the written permission of the affected employee or as otherwise required by law.

Termination of Employment For benefit eligible employees, any unused sick time will be paid out, since it is considered part of the employees paid time off. For non-benefit eligible employees, unused earned sick time will not be paid out upon separation of employment, regardless of the reason.

Break in service Non-benefit eligible employees who are rehired within six months will have their prior PSSL balance reinstated and available for immediate use. Benefit-eligible employees who are rehired within six months will not have their PDO reinstated, since their unused sick time would have been paid out upon their separation.

Protections Under the Law The company will not deny employees the right to use accrued sick days.

The company will not discriminate or retaliate, or tolerate discrimination or retaliation, against any employee who: seeks or obtains leave in accordance with this policy; files a complaint regarding an alleged violation of the HWFA; participates in an investigation, hearing or proceeding or cooperates in or assists with an investigation related to an alleged violation of the HWFA; informs any person of their potential rights under the HWFA; or otherwise exercises their rights under the HWFA.

WASHINGTON ADDENDUM TO PAID DAYS OFF (PDO) GUIDELINES

Paid Sick and Safe Leave The company provides paid sick and safe leave to eligible employees in compliance with Washington's paid sick and safe leave law. Sick leave will be provided through this Paid Sick and Safe Leave (PSSL) policy, which is an addendum to the company’s Paid Days Off (PDO) Guidelines.

Employees Entitled to the PSSL Benefit All employees who work in Washington are eligible to accrue PSSL. Employees in a status that would accrue PDO at an amount greater than Washington’s PSSL will not receive additional paid sick leave.

Eligible employees begin to accrue paid sick and safe leave on January 1, 2018, or upon the first day of employment, whichever is later.

Accrual of PSSL – Non-PDO Eligible Employees For employee ineligible to accrue PDO, paid sick and safe leave accrues at a rate of one hour for every 40 hours worked, including overtime hours. Employees will not accrue paid sick and safe leave while using paid sick and safe leave, vacation or other paid time off. Employees also will not accrue paid sick and safe leave during an unpaid leave of absence.

Availability of PSSL Paid sick and safe leave may be used in increments of one hour for non exempt employees, or half-days for exempt employees, to cover all or part of a workday.

Eligible employees may begin to use their accrued paid sick and safe leave on the 90th calendar day after they begin working for the company.

Employees can use paid sick and safe leave for an absence on any day for which they were required to work.

Employees are not required to search for or find an employee to cover their work when they take paid sick and safe leave. Paid sick and safe leave taken in accordance with this policy will not be counted as an absence or occurrence that may result in discipline under any company policy.

PSSL Permissible Usage Eligible employees may use paid sick and safe leave for the following reasons: • Because of the employee's or the employee's family member's mental or physical illness, injury or health condition; • For the diagnosis, care or treatment of the employee's or the employee's family member's mental or physical illness, injury or health condition; • For preventive medical care for the employee or the employee's family member; • If either the employee's place of business or the employee's child's school or place of care is closed by order of a public official for a health-related reason (i.e., a serious public health concern that could result in bodily injury or exposure to an infectious agent, biological toxin or hazardous material; • Absences that qualify for leave under the state's domestic violence leave law due to an incident of domestic violence, sexual assault or stalking of the employee or the employee's family member to:

o Seek legal or law enforcement assistance or remedies to ensure the health and safety of the employee or the employee's family members; o Seek treatment by a health care provider for physical or mental injuries caused by domestic violence, sexual assault or stalking; o Attend to health care treatment for a victim who is the employee's family member; o Obtain, or assist a family member in obtaining, services from a domestic violence shelter, rape crisis center or other social services program for relief from domestic violence, sexual assault or stalking; o Obtain, or assist a family member in obtaining, mental health counseling related to an incident of domestic violence, sexual assault or stalking in which the employee or the employee's family member was a victim of domestic violence, sexual assault or stalking; or o Participate in safety planning, temporarily or permanently relocate or take other actions to increase the employee's safety or the safety of the employee's family members from future domestic violence, sexual assault or stalking.

Covered family members include: • A spouse or registered domestic partner; • A child, regardless of age or dependency status (including a biological, adopted or foster child; stepchild; or a child to whom the employee stands in loco parentis, is a legal guardian or is a de facto parent); • A parent (including a biological, adoptive, de facto or foster parent; stepparent; or legal guardian of an employee or the employee's spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child); • A sibling; • A grandparent; or • A grandchild. For absences related to the employee's or family member's status as a victim of domestic violence, sexual assault or stalking, "family member" also includes an individual with whom the employee has a dating relationship.

Parameters of PSSL Use When the need for paid sick and safe leave is foreseeable, employees must provide reasonable advance notice. The employee should provide notice as soon as practicable and must provide notice at least seven days before the date sick or safe leave will begin. If the need for sick and safe leave is unforeseeable, employees must provide notice as soon as possible before the required start of their shift, unless it is not practicable to do so. If it is impracticable for an employee to provide notice of the need for sick and safe leave, another person can provide notice on the employee's behalf.

To provide notice of the need to use sick and safe leave, employees should contact their immediate supervisor. Employees should specify that the requested time off is for sick or safe leave reasons (as opposed to, for example, vacation time), so that the absence may be designated accordingly.

For absences exceeding three consecutive scheduled workdays, the company may require employees to provide verification that their use of paid sick and safe leave is for an authorized purpose. Employees must submit any required documentation within 10 calendar days following the first day of paid sick and safe leave. If the documentation submitted by the employee is not sufficient, the company will notify the

employee of the deficiency. The employee will then have seven days to provide adequate documentation.

If an employee anticipates that providing required documentation will create an unreasonable burden or expense, the employee can provide an oral or written explanation of: why the absence was a permissible use of paid sick and safe leave; and how the required verification creates an unreasonable burden or expense for the employee.

Rate of Pay Sick and safe leave will be paid at the employee's regular and normal rate of pay at the time the employee uses the leave. Employees will not receive overtime pay for sick and safe leave. PSSL will be paid on the same schedule as regular wages.

Carryover Accrued but unused paid sick and safe leave will carry over from one benefit year to the next, up to a maximum of 40 hours.

Change of status PDO benefit eligible employees that change status to a non-PDO benefit eligible status will be subject to the accrual of PSSL for non—PDO eligible employees.

Non-PDO benefit eligible employees that change status to a PDO benefit eligible status will maintain the separate sick bank and begin accruing under the PDO plan. The sick bank may be utilized while the employee begins to accrue PDO. Employees in a status that would accrue PDO at an amount greater than Washington’s PSSL will not receive additional paid sick leave.

Confidentiality The company will keep confidential the health or safety information of an employee or employee's family member. Such information will not be disclosed except to the affected employee, with the written permission of the affected employee or as otherwise required by law.

Termination of Employment Compensation for accrued and unused sick and safe leave is not provided upon separation from employment for any reason.

Break in service If an employee is rehired by the company within 12 months of separation from employment, previously accrued but unused sick and safe leave will immediately be reinstated. The previous period of employment will be counted for purposes of determining the employee's eligibility to use paid sick and safe leave. If the employee is being reinstated during the benefit year following the year in which his or her employment ended, the amount of reinstated paid sick and safe leave will be capped at a maximum of 40 hours.

Protections Under the Law The company may provide other forms of leave for employees to care for medical conditions or for issues related to domestic violence under certain federal, state and municipal laws. In certain situations, leave under this policy may run at the same time as leave available under another federal, state or municipal law, provided eligibility

requirements for that law are met. The company is committed to complying with all applicable laws. Employees should contact their immediate supervisor for information about other federal, state and municipal domestic violence, medical or family leave rights.

The company will not interfere with, restrain or deny an employee's rights under the PSSL law and will not discriminate or retaliate against an employee because he or she exercises those rights. The company will not discriminate or retaliate against an employee who files an action or otherwise institutes a proceeding under or related to the PSSL law or who testifies or intends to testify in any such proceeding related to any protected rights under the PSSL law.