Archer Company Employee Handbook

Last Update January 20, 2009

Introduction......

Company Mission......

At-Will Employment......

Attendance......

Benefits and Compensation......

401(k) Plan......

Bereavement Leave......

COBRA......

Employee Referral Bonus......

Family Medical Leave......

Flexible Spending Account......

Health Care Benefits......

Hire-Date Bridge......

Holidays......

Jury Duty......

Medicare......

Overtime......

Nonexempt Employees......

Exempt Employees......

Paid Time Off (PTO)......

Payday......

Payroll Classification......

Performance/Salary Reviews......

Personal Days......

Separation of Employment......

Sick Leave......

Social Security (FICA)......

Stock Option Plan......

Training and Dues......

Unemployment Compensation......

Worker's Compensation......

Confidentiality Policy......

Drug and Alcohol Policy......

Policy......

Testing......

Exception for Medical Treatment......

Confidentiality......

Company Action......

Equal Opportunity Employment......

Harassment Policy......

Sexual Harassment......

Other Harassment......

Other Employment......

Progressive Discipline......

Travel......

Work-Related Injury......

Introduction

This Employee Handbook is an outline of your privileges and obligations as an employee and should be your primary reference. This handbook is not intended to be a comprehensive treatment of any topic or policy and is subject to change as circumstances warrant. When you have questions about policies or procedures outlined in this manual, refer them to your manager or contact the Human Resources Department.

Company Mission

Archer Company is a large multinational corporation with several unique and successful strategic business units ( SBUs). Each SBU has its own business goals that contribute to the profitability of the whole corporation. Archer Company headquarters and its SBUs use a corporate Intranet to maintain vital communications links. Archer Company International Headquarters and Research Park are located in Boulder, Colorado, in the beautiful Rocky Mountains.

The mission of Archer Company is to design, develop, and deliver quality products and solutions for its customers and to make a profit for its stockholders. Effective and creative employees are the keys to customer satisfaction and stockholder earnings. To enhance employee effectiveness, Archer Company will encourage teamwork and cooperation at all levels, increase the technical skills of its employees, and enhance communications among Archer Company business units and workgroups.

At-Will Employment

All Archer Company employees are considered "at-will" employees. At-will employment means Archer Company may terminate any employee at any time for any reason or for no reason. As well, employees may terminate their employment at any time for any reason or for no reason. Nothing in these policies is a contract of employment. No person, manager, or officer in this company has any right to rescind this at-will policy.

Attendance

Employees are expected to be on the job unless they have a valid reason for being absent and have the proper management approval. Most Archer Company offices are open from 8 a.m. to 5 p.m. local time. Your supervisor/manager will tell employees their regular work hours. All PTO and personal days must be approved in advance. For other types of leave (jury duty, bereavement, sick leave) give the company as much advance notice as possible. Employee attendance problems are grounds for progressive discipline.

Benefits and Compensation

401(k) Plan

The company offers a 401(k) pension plan to all eligible employees. Employees are eligible after 90 days of employment and after reaching the age of 21. Contributions are generally limited to a fixed maximum amount as set by federal law. For example, in 2000 the maximum contribution allowed by the employee was $10,500. This yearly limitation is indexed for inflation, and the amount is increased from time to time. The company will make matching contributions based on prior year profitability. The minimum match will be 50¢ per employee $1 contributed up to 2 percent of employee contributions up to the maximum total contribution allowed by law. All employee contributions vest immediately. Employer contributions will begin vesting after the second year of employment at 20 percent per year.

Bereavement Leave

In the unfortunate case of a death in the immediate family, employees may take up to three days of paid leave. The company defines immediate family as:

Children
Spouse
Grandchildren
Parents
Grandparents
Siblings
In-laws

COBRA

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a law that allows employees to elect to continue their health coverage for some time after leaving the company if they were covered before job termination. They may remain covered for a minimum of 18 months. This period may be extended, depending on the qualified beneficiary and the particular circumstances. When an employee is no longer employed with Archer Company, he or she will receive a form for electing to continue coverage. The employee will be billed directly for the entire monthly premium but at the company's group rate.

Employee Referral Bonus

From time to time, as needed for certain positions, management may create an employee referral bonus. The company will pay the bonus, with the amount to be determined on a case-by-case basis, to a current employee who refers a new employee to the company. The company will pay half of the bonus on the new employee's hire date, with the other half being paid after the new employee has been continuously employed for one year.

Family Medical Leave

In accordance with the Family Medical Leave Act (FMLA), the company will provide up to 12 weeks of unpaid job-protected leave for certain medical and family-related reasons for eligible employees. The employee has a right to come back to work at his or her former position, salary, benefits, and status or an equivalent position.

To be eligible for FMLA benefits, an employee must:

Work for a covered employer;
Have worked for the employer for a total of 12 months;
Have worked at least 1,250 hours over the previous 12 months; and
Work at a location in the United States or in any territory or possession of the United States where at least 50 employees are employed by the employer within 75 miles.

Reasons for taking the leave include:

Childcare after the birth or adoption placement of a child.
Care for spouse, child, or parent with a serious health condition.
Serious health conditions that make the employee unable to perform job duties.

At the employee's option, he or she may substitute paid time off for some of the leave. The following are specific requirements as stated by law:

Employees' requests should be in writing and approved by their managers.
Medical certification may or may not be required.
Paid time off may be substituted for unpaid leave at the employer's or employee's request.
The company will continue to pay its percentage of health premiums during the leave.
The company may require the leave in certain circumstances.
The company may require periodic status reports.

Flexible Spending Account

Archer Company offers a flexible spending plan for employees. This plan allows pretax funds to be set apart from an employee's paycheck for medical, dental, vision, and day care expenses. The employee will forfeit any dollars placed in flexible spending that are not used by the end of the year, so employees should plan withdrawals for this account carefully.

Health Care Benefits

The company will make available to eligible employees (those who work more than 30 hours per week) group health and dental coverage. The company will contribute the following percentages toward medical and dental premiums:

Start of first year of employment: 50 percent of medical and 0 percent of dental.
Start of fifth year of employment: 75 percent of medical and 50 percent of dental.
Start of tenth year of employment: 100 percent of medical and 100 percent of dental.

Premiums are due at the beginning of the month. Consequently, additional premiums may be withheld from the employee's paycheck in the first month of coverage. Coverage begins on the first day of the month following 30 days of employment.

Hire-Date Bridge

An employee rehired within one year of separation from the company will be considered as having worked from his or her original hire date, reduced by the time between the end date and the new hire date. No guarantee of rehire, position, or pay rate is made.

Holidays

The company will observe and be closed for the following nine days during each calendar year:

New Year's Day
Presidents' Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Friday Following Thanksgiving Day
Christmas Eve
Christmas Day

In addition to the nine holidays listed above, employees may take one floating holiday. The date used for the floating holiday must be approved in advance by the employee's supervisor or manager. Such approval shall not be unreasonably withheld.

All employees will be paid for holidays. The company will pay hourly employees for the normal number of hours worked.

If a holiday falls on a Saturday, the holiday will be observed on the preceding Friday. If the holiday falls on a Sunday, the holiday will be observed on the following Monday.

Certain employees who provide critical services (such as security personnel) may be required to work on some holidays. The company may request other employees to work on a particular holiday. Employees who work on a holiday will receive their regular pay for that day and will receive one day of compensation time to be used on a date approved by management. The decision to require or offer work on a holiday will be made by management on the basis of need.

Jury Duty

The company recognizes the civic responsibility of employees called on to perform jury duty. When an employee receives a summons to appear for jury duty, the employee should notify her or his supervisor. To reduce the hardship resulting from jury assignments, employees are paid in full (in addition to any jury fees received) for a maximum period of up to one month. On days of jury service, if the employee does not have to report or is excused early, the employee must report for work.

Medicare

Medicare is a federal health insurance program. Citizens 65 years and older or younger citizens with eligible disabilities, such as permanent kidney failure, may participate in the program. Medicare is administered by the Health Care Financing Administration (HCFA). The program is linked to Social Security because the application and eligibility process is monitored by the Social Security Administration (SSA). Participants receive a Medicare card from the SSA. Recipients are grouped into categories including:

A = wage earner
B = spouse of wage earner
D = spouse is deceased

Medicare is divided into two parts:

Part A covers hospital care, some outpatient services, hospice, and home care. Part A is premium-free because of the Medicare taxes that are withheld from the employee while he or she is working.
Part B covers doctor visits, lab tests, X-rays, certain types of medical equipment, and some physical, speech, and occupational therapy. Those eligible for Part A are also eligible for Part B. Premiums for this portion of Medicare are deducted from Social Security checks.

Overtime

Nonexempt Employees

Company policy requires that overtime be kept to a minimum. However, during peak-load periods, asking employees to work beyond their normal working hours may be necessary. If required, the supervisor/manager must approve overtime in advance. Employees will be compensated at a rate of 1.5 times their regular rate of pay for any hours worked beyond 40 hours in any one seven-day workweek.

Exempt Employees

Jobs held by exempt employees by their nature may require the employee to work overtime. However, exempt employees generally do not receive overtime payments.

Paid Time Off (PTO)

All scheduled vacation or paid time off (PTO) is subject to the advance approval of your supervisor/manager and, should the overall needs of the department require it, may be changed at the discretion of management. If a company holiday falls within the scheduled vacation period, Archer Company does not count a day of PTO for that day. Employees working less than 30 hours per week do not qualify for PTO.

PTO may not be used during the first 90 days of employment. However, PTO begins to accrue on the employee's hire date. PTO accrues evenly throughout the year, monthly, on the following schedule:

Year 1 and 2 of employment: 10 days (.83 days per month)
Year 3: 15 days (1.25 days per month)
Year 4: 16 days (1.33 days per month)
Year 5: 17 days (1.42 days per month)
Year 6: 18 days (1.50 days per month)
Year 7: 19 days (1.58 days per month)
Year 8 and afterward: 20 days (1.67 days per month)

Employees may use up to five days of PTO before accrual. However, they may not use PTO to be earned the next employment year. Employees may carry over up to five days of PTO to the next employment year. However, those days must be used in the first 90 days of the next employment year. At the time of separation of employment, the employee will receive payment for unused PTO at the employee's current salary level. PTO used before accrual will be deducted from the employee's final paycheck.

PTO may be used only in full- or half-day increments and must be scheduled in advance and approved by management.

Payday

Archer Company uses a bimonthly pay period, meaning employees are paid twice a month. Paydays are the 15th and final day of the month. If the scheduled payday falls on a weekend, then the following Monday will be used.

Paydays are one pay period behind. For example, Archer Company will pay for hours worked during the pay period ending on the 15th on the last day of the month. Archer Company will pay terminated employees a final paycheck within two working days of the termination date unless the employee makes other arrangements. Employees who resign voluntarily will be paid on the normal payroll schedule.

Payroll Classification

Archer Company requires all employees, except those "exempt" from the Federal Wage-Hour Law, to complete time reports showing all time worked.

Exempt employees are executives, management, and professional employees. These employees are generally not paid for overtime worked and are paid on a salary basis. All other employees are "nonexempt" and must maintain accurate records of actual hours worked. Governmental regulations require these records to be used to calculate paychecks. Archer Company will give nonexempt employees time record forms and explain the correct procedure for recording work time. The employee and her or his supervisor must sign these forms and attest to their correctness before forwarding them for processing.

Some employees, exempt and nonexempt, will be required to report time for client billing and other reporting purposes. This time will not be used in any payroll calculations.

Performance/Salary Reviews

Archer Company will attempt to compensate its employees in a fair and equitable manner, paying equal to established salary levels in the community for performance of comparable services for companies of comparable size and/or type.

Salary increases will be based on merit, with consideration of the actual work performance of the employee in relation to the standards of the company. Salary increases will generally be semi-annual and based on the semi-annual review. However, management reserves the right to make adjustments at any time.

Semi-annually, managers will conduct performance reviews. The managers will:

Distribute a copy of the form to the employee for a self-appraisal of the prior performance.
Seek input from management and employees on areas of performance where interaction with others is required.
Meet with the employee to compare his or her perceptions with the employee before developing a final rating.
Review company and employee goals for the coming year.

Personal Days

Employees who need time off from work for personal reasons and have no remaining paid time off may take personal days with no pay as the circumstance warrants. Management must approve personal days.

Separation of Employment

At the time of separation of employment, the employee's final paycheck will include adjustments for any items not resolved, including but not limited to the following:

Unused or overused paid time off.
Unused sick days.
Salary advances not paid back.
Medical and dental insurance premiums.
Reimbursements for employee expenses.

If separation is at the choice of the company, the final paycheck will be made within two working days of the termination date unless other arrangements are agreed to in writing. If the separation is at the choice of the employee, the final paycheck will be on the normal payroll schedule.

Sick Leave

Sick leave is provided to continue the salary of eligible employees who are absent from work because of illness, disability, medical appointments, and, on a limited basis, in the event of illness in the family. Eligible employees are those who work more than 30 hours per week.

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