Safe Harbor Policy Newest 1104 - Jackson Lewis



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SAFE HARBOR POLICY

(for employers with employees who work fluctuating workweeks)

It is our policy and practice to compensate employees for all time worked and to do so in compliance with all applicable state and federal laws. To ensure that you are paid properly for all time worked and that no improper deductions are made, you must record correctly all work time and review your paychecks promptly to identify and to report all errors. No one who is eligible for overtime should perform any work that is not authorized and recorded on his or her time card. While all time worked will be paid, even if not authorized, working without authorization is a violation of Company policy that could lead to disciplinary action.

Review Your Pay Stub

We make every effort to ensure our employees are paid correctly. Occasionally, however, inadvertent mistakes can happen. When a mistake does happen and is called to our attention, we promptly will make a correction. Please review your pay stub when you receive it to make sure it is correct. If you believe a mistake has occurred (including any improper deductions, under-reported hours of work or other error) or if you have any questions, please use the reporting procedure outlined below.

Overtime Eligible (Non-exempt) Employees

If you are classified as a non-exempt employee (which means that you are eligible for overtime pay), you must maintain a record of the total hours you work each day. These hours must be accurately recorded on a time card that will be provided to you by your supervisor. Each employee must sign and date his or her time card to verify that the reported hours worked are complete and accurate. Time cards must accurately reflect all regular and overtime hours worked, any absences, early or late arrivals, early or late departures and meal breaks. At the end of each week, you should submit your completed time card to your supervisor for verification and approval. Do not sign your time card unless it is accurate. If your time card is not accurate, notify your supervisor immediately. When you receive each pay check, please verify immediately that you were paid correctly for all regular and overtime hours worked each workweek.

Non-exempt Employees Paid Under the “Fluctuating Workweek” System

All non-exempt employees paid under the “fluctuating workweek” system must sign a written agreement regarding that arrangement. If you do not have such an agreement and you believe you are being paid under the “fluctuating workweek” system, please contact Human Resources or use the complaint procedure outlined at the end of this policy. As a non-exempt employee paid under the fluctuating workweek system, you will receive a salary which is meant to cover all hours worked. You also will receive overtime pay as outlined below.

Your salary will be established at the time of hire or when you become classified as a non-exempt employee paid under the fluctuating workweek system. While it may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform. For any workweek in which any work is performed, your salary will not be reduced by partial or full day absences. You will be required to use any accrued paid time off to “cover” an absence. If you do not have any accrued paid time off at the time of an absence, you will receive your full salary for workweeks in which you perform any work.

As a non-exempt employee paid under the fluctuating workweek system, you will be paid overtime pay for all hours worked in excess of 40 hours in a workweek. Because you receive a salary which is meant to cover all hours worked, part of your overtime pay already is included in your base salary. The amount of overtime compensation paid will vary with the number of overtime hours you work. For each workweek in which you work more than 40 hours, the Company will divide your weekly salary by the total number of hours you worked. This amount will be divided in half to determine the half-time premium in the time-and-one-half premium pay. That number will be multiplied by the number of hours you work in excess of 40 hours per week to determine your overtime pay. For example, if your weekly salary is $500.00 and your worked 50 hours, you would receive your salary plus overtime pay of $50.00 (i.e., $500.00 ÷ 50 = $10.00/hour regular hourly rate x .5 (half-time rate) = $5.00/hour for each overtime hour in that workweek).

If you are a non-exempt employee paid under the fluctuating workweek system, you must maintain a record of the total hours you work each day. These hours must be recorded accurately on a time card that will be provided to you by your supervisor. Each employee must sign his or her time card to verify that the reported hours worked are complete and accurate. Your time card must accurately reflect all regular and overtime hours worked, any absences, early or late arrivals, early or late departures and meal breaks. At the end of each week, you should submit your completed time card to your supervisor for verification and approval. Do not sign your time card unless it is accurate. If your time card is not accurate, notify your supervisor immediately. When you receive each pay check, please verify immediately that you were paid correctly for all regular and overtime hours worked in each workweek.

Exempt Employees

If you are classified as an exempt salaried employee, you will receive a salary which is intended to compensate you for all hours you may work for the Company. This salary initially will be established at the time of hire or when you are classified as an exempt employee. While your base salary may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform.

Under federal law, your salary is subject to certain deductions. For example, absent contrary state law requirements, your salary can be reduced for the following reasons:

• Full day absences for personal reasons, such as vacation or personal days.

• Full day absences for sickness or disability which may be reimbursed by our sick day or short-term illness plan.

• Full day disciplinary suspensions for major safety violations or significant infractions of important written workplace conduct rules.

• Family and Medical Leave absences (either full or partial day absences).

• To offset amounts received as payment for jury and witness fees or military pay.

• The first or last week of employment in the event you work less than a full week.

• Any full workweek in which you do not perform any work.

Your salary may also be reduced for certain types of deductions such as your portion of health, dental or life insurance premiums; state, federal or local taxes, social security; or voluntary contributions to a 401(k) or pension plan. In any workweek in which you performed any work, your salary will not be reduced for any of the following reasons:

• Partial day absences for personal reasons, sickness, vacation or disability (unless the FMLA provides to the contrary).

• Your absence because the facility is closed on a scheduled work day.

• Absences for jury duty, attendance as a witness, or military leave in any week in which you have performed any work.

• Any other deductions prohibited by state or federal law.

It is not an improper deduction to require the use of your vacation, personal or other forms of paid time off for full or partial day absences for personal reasons, sickness, disability or other reasons. Pursuant to our paid time off policies, employees who are absent for all or part of a work day must apply accrued paid time off to that missed work time. After all paid time off is exhausted, no partial day deductions will be made from the salary of a salaried exempt employee unless permitted by law.

To Report Violations of This Policy, Communicate Concerns, or Obtain More Information

It is a violation of the Company's policy for any employee to falsify a time card or to alter another employee's time card. It is also a serious violation of Company policy for any employee or manager to instruct another employee to incorrectly or falsely report hours worked or to alter another employee's time card to under- or over-report hours worked (or to fail to report any such misconduct. If any manager or employee instructs you to (1) incorrectly or falsely under- or over-report hours worked, (2) alter another employee's time records to inaccurately or falsely report that employee's hours worked, or (3) conceal any falsification of time-records or to violate this policy, do not do so. Instead, report it immediately to the Human Resources Department.

You should not work any hours outside of your scheduled work day unless your supervisor has authorized the unscheduled work. Do not start work early, finish work late, work during a meal break or perform any other extra or overtime work unless you are authorized to do so and that time is recorded on your time card. Employees are prohibited from performing any "off-the-clock" work. "Off-the-clock" work means work you may perform but fail to report on your time card. Any employee who fails to report or inaccurately reports any hours worked will be subject to disciplinary action, up to and including discharge.

If you have questions about deductions from your pay or your wages, please immediately contact Human Resources. If you believe you have been subject to any improper deductions or your pay does not accurately reflect your hours worked, you should immediately report the matter to your supervisor. If the supervisor is unavailable or if you believe it would be inappropriate to contact that person (or if you have not received a prompt and fully acceptable reply within three business days), you should immediately contact the Vice President of Human Resources [provide names, addresses and telephone numbers], the Manager of Payroll, or any other supervisor in the Company with whom you feel comfortable. If you are unsure of whom to contact if you have not received a satisfactory response within five business days after reporting the incident, please immediately contact _______________ [provide names, addresses and telephone numbers] or use the reporting hotline at 1-800-________.

Every report will be fully investigated and corrective action will be taken where appropriate, up to and including discharge for any employee(s) who violates this policy. The Company will not allow any form of retaliation against individuals who report alleged violations of this policy or who cooperate in the Company’s investigation of such reports. Retaliation is unacceptable. Any form of retaliation in violation of this policy will result in disciplinary action, up to and including discharge.

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