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Policy and Procedure HR-226

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Date Adopted: 3/13/87

Approval: HR PIP TEAM

SUBJECT: Open Door and Fair Treatment / Arbitration Agreement
DEPARTMENTS: HUMAN RESOURCES, ADMINISTRATION, ALL

PURPOSE

To provide employees and management with appropriate guidelines for addressing and resolving employee problems, concerns and disputes.

POLICY

______is committed to maintaining a positive and pleasant environment in which to work. ______believes in an open door policy, as an essential element to achieve its goal. All supervisors, managers, directors and executive team members are obligated by virtue of their employment to be available and concerned regarding employee questions or problems. Employees are encouraged without fear of reprisal to raise their questions or problems in confidence with supervisory or management personnel.

When disputes do arise, ______believes it is in the best interest of the Company to resolve employment related problems in a manner that provides the fastest, least expensive and fairest method for resolving such disputes. Therefore, in addition to the Open Door Policy, ______has established the Fair Treatment Process. The Fair Treatment Process is a multiple step process that provides for final and binding arbitration of disputes if they are not resolved in any of the previous steps in the process.

GENERAL

All employees, regardless of length of service or status, shall utilize the Fair Treatment Process for disputes relating to or arising out of their employment with the Company or termination of employment. All former employees are encouraged to use steps 1-3 of the Fair Treatment Process and must use step 4 for such disputes. The only disputes or claims not covered by the Fair Treatment Process are those listed in the “Exclusions and Restrictions” section below. Examples of the types of disputes or claims covered by the Fair Treatment Process include, but are not limited to, claims for wrongful termination of employment, breach of contract, employment discrimination, harassment or retaliation under the Fair Employment and Housing Act, Americans With Disabilities Act, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964 and its amendments and all state and local discrimination laws, tort claims or any other legal claims and causes of action recognized by local, state or federal law or regulations, claims for unpaid wages, overtime, bonuses, missed meal or rest periods, penalties, or other compensation claims. An employee’s decision to accept employment or to continue employment with ______constitutes his or her agreement to be bound by the Fair Treatment Process. Likewise, the Company agrees to be bound, as well. This mutual agreement to arbitrate claims means that both the employee and the Company are bound to use the Fair Treatment Process as the sole means of resolving employment-related disputes, and thereby agree to forego any right they each may have had to a jury trial on issues covered by the Fair Treatment Process. However, no remedies that otherwise would be available to either party in a court of law will be forfeited by virtue of their agreement to use and be bound by this process.

PROCEDURE

Open Door Policy: Employees are encouraged first to use the Company’s informal Open Door Policy to discuss any problems, concerns or disputes they may have with their supervisor. If this informal process does not resolve the issue, then employees are encouraged to initiate the more formal Fair Treatment Process described below to resolve the issue.

If an employee cannot attain an acceptable resolution of the problem, the employee generally must follow the Fair Treatment Process outlined below:

Step 1:The employee obtains a Dispute Resolution Form from the Human Resources Department. The employee submits the completed form to his or her supervisor to initiate the Fair Treatment Process. The supervisor will investigate the problem and attempt to resolve it. The supervisor will respond to the employee in writing on the form as soon as possible, usually within seven working days from the date the employee raised the issue. However, in situations where the employee’s problem relates to the supervisor, and/or the employee does not feel comfortable talking to the supervisor about the problem, the employee may consult with a representative of the Human Resources department for guidance and go directly to Step 2 in the process.

Step 2:If the employee is not satisfied with the supervisor’s response to the problem or dispute, then the employee may take the problem to the Department Head usually within seven working days of the receipt of the supervisor’s response. If the employee wishes to pursue this second step in the Fair Treatment Process, he or she should complete the Section marked “Step 2” on the Dispute Resolution Form and submits it to the Human Resources department. The Human Resources department then submits form to the Department Head for response usually within seven working days.

Step 3:If the response of the Department Head in Step 2 does not resolve the employee’s problem, the employee may take the problem to the Executive Team Member responsible for the department in which the employee works. If the employee wishes to pursue this third step, he or she should complete the section marked “Step 3” and return the Dispute Resolution Form to Human Resources. This must be done within seven working days from their receipt of the response from the Department Head. A written response from the Executive Team Member will be provided to the employee as soon as possible, usually within seven working days of the date the employee requests review under Step 3.

Step 4:If the employee does not accept the decision of the Executive Team Member, then the employee has the right to submit the problem to final and binding arbitration. The arbitration process is limited to disputes, claims or controversies that a court of law would be authorized or have jurisdiction over to grant relief and that in any way arise out of, relate to or are associated with the employee’s employment with the Company or termination of employment. In such cases, an impartial and independent arbitrator, chosen by agreement of both parties, will be retained to make a final decision on the employee’s claim based on the application of Company policies and procedures and applicable law. The arbitrator’s decision is final and binding.

ARBITRATION PROCESS

If the affected employee wants to appeal the decision of the appropriate Executive Team Member, he or she must obtain and complete a “Request for Arbitration Form” from the Human Resources department. Alternatively, the employee may proceed directly with the third party arbitration service. That form also will serve to confirm the employee’s and the Company’s prior mutual agreement to submit the dispute to final and binding arbitration. By deciding to arbitrate the dispute, the affected employee also agrees that the remedy, if any, ordered by the arbitrator will be the only remedy as to all matters that are or could have been raised by the employee in arbitration. The arbitrator will follow applicable law and may consider company policies and practices to make decisions, if applicable, but cannot change company policy. The arbitrator will be requested to render a decision on the matter within 30 days after the arbitration hearing is concluded and post-hearing briefs, if any, are submitted. The arbitration will be conducted before an arbitrator on the approved panel of JAMS, AAA, or ADR Services, Inc., and shall be conducted under the Employment Arbitration Rules of the applicable arbitration service.

The Company will pay the cost of the arbitrator, but the employee shall pay any filing fees not to exceed the cost of filing a civil lawsuit in Orange County, California. The employee and the Company will be responsible for the fees and costs of their own legal counsel, if any, and for their own other expenses and costs, such as costs associated with witnesses or obtaining copies of hearing transcripts.

EXCLUDED ISSUES

Workers’ Compensation Claims, any claim involving the construction or application of a benefit plan covered by ERISA, and claims for unemployment benefits are excluded. In addition are any non-waivable statutory claims not subject to exclusive review under this policy. However, if any state or federal agency completes its processing of an employee’s excluded claim and the employee decides to pursue further remedies on such claims in a civil action against the Company, the employee must use this process.

LIMITATIONS

During steps 1-3, neither the employee nor the Company have the right to bring in outside counsel, including without limitation, legal counsel, to any meeting or phone call unless both sides agree in advance. Both the employee and the Company have the right to consult privately with their own counsel at their own expense at any time. Both the employee and the Company may be represented by counsel at the arbitration at their own expense.

All statements and information made or revealed during this process are confidential. Information during this process is on a “need to know” basis. No “observers” will be allowed in the process by the employee or the company at any step in the process.

Harassment complaints are sensitive issues and are not required to use steps 1-3 of the Fair Treatment process, but should use the Company’s policy on Sexual and other Unlawful Harassment HR-227. Employees who allege claims of harassment must still use step 4 if their claims are not resolved internally.

Any request for the Fair Treatment Process should be submitted within 90 days of the event giving rise to the dispute. If a request for the Fair Treatment Process is made after that date, the employee may be required to skip steps 1-3 and proceed directly to step 4 unless the parties both agree that steps 1-3 should be taken. If the claim was submitted to a federal, state or local agency, then a request for arbitration of that claim must be made within 90 days of the receipt of the agency’s decision, or before the expiration of any applicable statutes of limitations, agency, whichever occurs last.

The Company reserves the right to change these procedures in steps 1-3 without advance notice and without the consent of employees, although such changes must be communicated to the employee in writing. This process in no way affects the at-will nature of employment at ______.

Supervisors/Managers/Department Heads/Executive Team Members

Investigate the complaint and attempt to resolve it. Communicate a written decision to the current or former employee within the appropriate time frame.

Human Resources

Explain the Fair Treatment Process to every employee at orientation. At exit interviews, remind the individual of the Fair Treatment Process if they state that he/she was unfairly treated. Provide Fair Treatment Forms to employees. Serve as an advisor to supervisors, department heads and administration. Serve as Administrator for receiving and forwarding responses between management and the employee. Ensure management has investigated and reviewed the complaint and that there is a timely response. Coordinate and administer all arbitrations.

REFERENCES:

ATTACHMENTS:Open Door and FairTreatment/ Arbitration Agreement

REVIEWS

Date Reviewed / Committee Review
(If applicable) / Initials of Reviewer

Revised: 3/1/87, 5/1/03, 04/01/08

Open Door and Fair Treatment/ Arbitration Agreement

EMPLOYEE ACKNOWLEDGMENT

I agree to be bound by the terms and conditions of the Fair Treatment Process. I understand that I am waiving my right to a jury trial in favor of arbitration.

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Employee Signature Date

Print name: ______