CSSD Employee Handbook CSSD Employee Handbook Page 1 Table of Contents FOREWORD ........................................................................................................................................... 7 I. EMPLOYMENT POLICIES ........................................................................................................................ 8 A. EQUAL EMPLOYMENT OPPORTUNITY .............................................................................................. 8 B. POLICY AGAINST HARASSMENT ........................................................................................................ 8 C. DISABILITY ACCOMMODATIONS ....................................................................................................... 9 D. CONFIDENTIALITY AND PROPRIETARY INFORMATION POLICY ......................................................... 9 E. CONFLICT OF INTEREST/OUTSIDE EMPLOYMENT STATEMENT ...................................................... 10 F. IMMIGRATION LAW COMPLIANCE ................................................................................................. 11 G. DRUGS AND ALCOHOL .................................................................................................................... 11 H. EMPLOYEE ASSISTANCE PROGRAM ................................................................................................ 13 I. EMPLOYEE COMPLAINTS/OPEN DOOR POLICY............................................................................... 14 J. ATTENDANCE AND PUNCTUALITY................................................................................................... 14 II. COMPENSATION PRACTICES ............................................................................................................... 15 A. COMPENSATION POLICIES .............................................................................................................. 15 B. EMPLOYEE CLASSIFICATIONS & BENEFIT ELIGIBILITY ..................................................................... 15 C. WORK SCHEDULES .......................................................................................................................... 16 D. TIME CHARGING.............................................................................................................................. 16 E. MEAL AND BREAK PERIODS ............................................................................................................ 16 F. OVERTIME ....................................................................................................................................... 17 G. CALL-IN PAY ..................................................................................................................................... 17 H. SHIFT DIFFERENTIALS ...................................................................................................................... 17 I. LEAD PAY ......................................................................................................................................... 18 J. PAY PERIODS ................................................................................................................................... 18 K. PAYROLL DEDUCTIONS.................................................................................................................... 18 III. EMPLOYEE BENEFITS ....................................................................................................................... 19 A. INSURANCE BENEFITS ..................................................................................................................... 19 B. HEALTH/DENTAL INSURANCE ......................................................................................................... 19 C. GROUP LIFE INSURANCE ................................................................................................................. 19 D. EMPLOYEE ASSISTANCE PROGRAM ................................................................................................ 19 E. CONTINUATION OF HEALTH BENEFITS (COBRA)............................................................................. 19 F. 401(K) PLAN .................................................................................................................................... 20 G. WORKERS’ COMPENSATION ........................................................................................................... 20 H. SHORT-TERM DISABILITY................................................................................................................. 20 I. LONG-TERM DISABILITY .................................................................................................................. 20 CSSD Employee Handbook Page 2 J. SEVERANCE BENEFITS ..................................................................................................................... 20 K. JOB OPPORTUNITY PROGRAM AND TRANSFERS ............................................................................ 21 L. EDUCATIONAL ASSISTANCE PROGRAM .......................................................................................... 21 M. FOOD SERVICES ........................................................................................................................... 22 N. ANNIVERSARY AWARDS .................................................................................................................. 22 O. RECOGNITION PROGRAM ............................................................................................................... 22 P. REFERRAL BONUS PROGRAM ......................................................................................................... 22 Q. RESULTS SHARE INCENTIVE PROGRAM .......................................................................................... 23 IV. PAID LEAVE FROM WORK ............................................................................................................... 24 A. VACATION ....................................................................................................................................... 24 B. SICK LEAVE ...................................................................................................................................... 24 C. PERSONAL LEAVE TIME ................................................................................................................... 25 D. HOLIDAYS ........................................................................................................................................ 26 E. JURY DUTY LEAVE/APPEARING AS A WITNESS ............................................................................... 26 V. UNPAID LEAVE FROM WORK .............................................................................................................. 28 A. MEDICAL LEAVE............................................................................................................................... 28 B. FAMILY CARE/MILITARY CAREGIVER LEAVE.................................................................................... 29 C. MILITARY EXIGENCY LEAVE ............................................................................................................. 30 D. DISCRETIONARY PERSONAL LEAVE ................................................................................................. 30 E. MILITARY LEAVE .............................................................................................................................. 31 VI. EMPLOYEE CONDUCT GUIDELINES ................................................................................................. 32 A. EMPLOYEE RELATIONS AND STANDARDS OF CONDUCT ................................................................ 32 B. ETHICS ............................................................................................................................................. 33 C. ACCEPTANCE OF COSTLY GIFTS OR ENTERTAINMENT .................................................................... 33 D. HOW CSSD KEEPS EMPLOYEES INFORMED ..................................................................................... 34 E. USE OF COMPANY EQUIPMENT ...................................................................................................... 34 F. PERSONAL LAPTOP POLICY ............................................................................................................. 34 G. INTERNAL INVESTIGATIONS AND SEARCHES .................................................................................. 35 H. REFERENCE CHECKS ........................................................................................................................ 35 I. SMOKING POLICY ............................................................................................................................ 35 J. USE OF ELECTRONIC RESOURCES.................................................................................................... 35 K. PERSONAL APPEARANCE................................................................................................................. 37 L. VIOLENCE IN THE WORKPLACE ....................................................................................................... 38 M. PERFORMANCE REVIEWS ............................................................................................................ 38 N. CONFLICT OF INTEREST ................................................................................................................... 39 CSSD Employee Handbook Page 3 O. CHANGE OF EMPLOYEE INFORMATION .......................................................................................... 39 P. PERSONNEL FILES ............................................................................................................................ 39 Q. ARBITRATION .................................................................................................................................. 39 R. POST RESIGNATION/TERMINATION PROCEDURES ......................................................................... 39 S. REEMPLOYMENT/ADJUSTED SERVICE DATE ................................................................................... 40 T. EXIT INTERVIEWS ............................................................................................................................ 40 VII. SAFETY GUIDELINES ........................................................................................................................ 41 A. SAFETY ............................................................................................................................................. 41 B. SECURITY ......................................................................................................................................... 41 C. PERSONAL PROPERTY ..................................................................................................................... 41 ACKNOWLEDGMENT OF RECEIPT OF EMPLOYEE HANDBOOK .............. Error! Bookmark not defined. CSSD Employee Handbook Page 4 Welcome to Cubic We are pleased that you have chosen to join us. You will find that Cubic prides itself on its professional, congenial and diverse workforce, as much as it does on its delivery of superior products and services to customers. Many company benefits are available to you as an employee of Cubic. You will find them explained in this handbook and in other information that you will receive from the Company. I extend a warm welcome and wish you much success at Cubic. Walter J. Zable President and Chairman of the Board Cubic Corporation CSSD Employee Handbook Page 5 WELCOME TO CSSD! Cubic Simulation Systems Division wishes to welcome you as a new member of our team and the Cubic family. CSSD is dedicated to providing the most economically viable, best value, simulation training solutions. Founded in 1967, CSSD is a world leader in the design, development and production of simulators and related training programs for crew, operator and maintenance training. We provide a wide range of products and services used by all branches of the U.S. Department of Defense and by armed forces in 44 countries. Our business climate provides excellent opportunities for personal growth and development. You will find that Cubic prides itself on its professional, congenial and diverse workforce, as much as it does on its delivery of superior products and services to customers. Again, let me welcome you to our team and wish you great success. Mrs. Terry Kohl Vice President and General Manager Cubic Simulation Systems Division CSSD Employee Handbook Page 6 FOREWORD PURPOSE OF HANDBOOK AND TERMS OF EMPLOYMENT IMPORTANT NOTICE TO ALL EMPLOYEES The purpose of this employee handbook is to help you understand some of the benefits, policies and practices of Cubic Simulation Systems Division (henceforth referred to as CSSD.) Please review the handbook carefully as it will answer many questions you have about your employment. As an employee, you are subject to and will be expected to know and adhere to the policies and practices contained in this handbook. Disciplinary action may be necessary if policies are not followed. This handbook is available on the CSSD Intranet. Since it is not possible to anticipate every employment situation that could arise, other policies and practices may exist that are not included in this handbook. If you are unsure about a written or unwritten policy or practice of the company, please ask your supervisor or contact Human Resources. The handbook is intended to convey general policies, practices and benefits related to personnel matters, but it does not confer any right to employment for employees. The provisions of this handbook are not intended to, and do not, create any contractual obligation conflicting with the policy that the employment relationship between CSSD and its employees is at-will, and can be terminated with or without cause at any time, at the option of either the employee or CSSD. Generally, when changes to policies or benefits are made, we will provide you with an updated version of the affected policy. This handbook contains the employment policies and practices of the company that are in effect at the time of publication. All previously issued handbooks and any inconsistent policy statements or memoranda are hereby superseded. No oral statements or representations can in any way change or alter the provisions of this handbook. EMPLOYMENT AT-WILL Employment with CSSD is “at-will.” This means that either you or the company can decide to terminate the employment relationship at any time, with or without cause and with or without notice. Only the President of Cubic Defense Applications, Inc. has the authority to modify this at-will policy, and then only by an expressed written agreement signed by both the employee and the President. As stated above, the handbook is provided to you as a guide. It is not meant to be an employment agreement for any specified period of time. CSSD Employee Handbook Page 7 I. EMPLOYMENT POLICIES A. EQUAL EMPLOYMENT OPPORTUNITY CSSD is an equal employment opportunity employer. We are committed to ensuring a workplace free of discrimination based on race, color, national origin, religion, sex, pregnancy, age, disability or any other classification protected by applicable law. It is the policy and practice of CSSD to provide every employee with equal employment opportunity. To this end, all employees and applicants are evaluated on the basis of their job qualifications and competence without regard to race, color, national origin, religion, sex, pregnancy, age, disability, or any other classification protected by applicable law. This policy applies to all personnel practices, including, but not limited to, recruitment, hiring, training, promotion, compensation, benefits, transfers, and company-sponsored activities. Discrimination in the workplace based upon protected characteristics is against company policy and is a violation of the law. Any suspected violation of this policy should be reported to Human Resources immediately. Please refer to the booklet entitled Equal Employment Opportunity, Affirmative Action, and Antiharassment Policies at CSSD for more information regarding these topics. B. POLICY AGAINST HARASSMENT CSSD expects everyone to behave professionally and respectfully in the workplace. The Company will not tolerate harassment against employees, applicants for employment, or independent contractors on the basis of race, color, religion, sex, gender, pregnancy, age, national origin, physical or mental disability, military or veteran status, or any other category protected by applicable law. CSSD does not allow anyone, including any supervisor, co-worker, vendor, client, or customer, to harass Company employees, applicants, or independent contractors. This policy applies at all company locations, company-sponsored events, as well as activities at which you represent the Company. Prohibited harassment includes (1) expressly or impliedly conditioning a job benefit (or the absence of a job detriment) on sexual favors or behavior, or (2) the creation of a hostile work environment through visual, verbal or physical conduct. Prohibited conduct includes any of the following when based upon a protected category: making comments, slurs, innuendos or jokes; the display of cartoons, posters, or other materials; distributing pictures or words in written, pictorial or electronic form; touching, or other unwanted attention; threats, intimidation, or other abusive behavior. Harassment is unlawful if it is based on a prohibited category, is unwelcome, and is severe or pervasive enough to create an intimidating, hostile, or offensive working environment that alters conditions of work. Sexual harassment deserves particular mention. Unwelcome sexual advances, requests for sexual favors, and other physical, verbal, or visual conduct based on sex are not allowed. This includes such things as sexual innuendoes, suggestive comments, sexually oriented teasing or practical jokes, display of sexually suggestive pictures or other materials, suggestive or insulting sounds, looks, or gestures, and any unwanted physical contact. Obviously, more severe forms of harassment, such as sexual assault, are also prohibited. CSSD Employee Handbook Page 8 All employees are responsible for helping to ensure that the work environment is free from prohibited harassment. If you believe you have been subjected to sexual or other harassment in violation of this policy by an employee or a non-employee, in most cases you should immediately inform the offending party that their conduct is unwelcome and tell them to stop the behavior. However, if you are uncomfortable doing so or if after doing so the situation has not been satisfactorily resolved, you should immediately inform Human Resources. Your complaint should include details of the incident(s), the names of the individuals involved, and the names of any witnesses. You are not required to complain first to your immediate supervisor. Supervisors who become aware of complaints or who observe harassing conduct must also immediately inform Human Resources. All complaints of prohibited harassment will be investigated thoroughly and promptly. The investigation will be kept as confidential as possible, although complete confidentiality cannot be guaranteed. The Company will take appropriate remedial action to stop any prohibited harassment and prevent future harassment. This can include discipline of the harasser up to and including termination. Because a hostile-free work environment is so important, CSSD may take disciplinary action against an employee who exhibits poor judgment or engages in inappropriate or unprofessional behavior, including but not limited to sexually inappropriate conduct, even if it is welcome or falls short of being unlawful. The most important thing is that you immediately report any incidents of harassment so that it can be investigated and the conduct, if inappropriate, stopped. CSSD will not tolerate retaliation against anyone who has expressed a good faith concern about harassment or who has participated in an investigation. Employees who believe they have been subjected to retaliation should immediately inform Human Resources. In addition, the Equal Employment Opportunity Commission (“EEOC”) accepts and investigates complaints of unlawful harassment and discrimination in the workplace. The EEOC may, in some cases, prosecute claims on behalf of employees. The EEOC may be contacted by consulting the government agency listings in your local telephone book or at www.eeoc.gov <http://www.eeoc.gov> . C. DISABILITY ACCOMMODATIONS To ensure equal employment opportunities to qualified individuals with a disability, CSSD will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee unless undue hardship would result. If you believe that you need an accommodation in order to perform the essential functions of your job, please contact Human Resources. You should specify in what way you are limited in your ability to perform your job and what accommodation you believe is needed. The Company will review the situation with you and identify possible accommodations, if any, that will enable you to perform the essential functions of your job. If a reasonable accommodation can be identified that will not impose an undue hardship, the Company will make the accommodation. If there is more than one possible accommodation, the Company will decide which one will be provided. D. CONFIDENTIALITY AND PROPRIETARY INFORMATION POLICY During employment with CSSD, you may have access to and become acquainted with “Confidential and Proprietary Information” relating to CSSD, its business and operations, its customers, and information pertaining to other third parties with whom CSSD does business. This information is important to CSSD’s business, is not generally known to the public and cannot be discovered or replicated by a third party without substantial expense and effort. The protection of confidential, sensitive and proprietary information is of critical importance to the Company and our employees. CSSD Employee Handbook Page 9 You must not use or disclose any confidential information or proprietary information obtained during your employment with CSSD unless such disclosure is approved in writing in advance by a Director or Senior Level Manager. All employees are expected to observe good security practices, and keep proprietary and confidential information secure from outside visitors and from all other persons who do not have a legitimate reason to see or use such information. This obligation continues after your employment with CSSD ends. CSSD’s Inventions and Secrecy Agreement, which each employee is required to sign as a condition of employment, contains a more detailed description of each employee’s confidentiality obligation. Please contact your supervisor or Human Resources if you have questions about this policy or your confidentiality obligations. E. CONFLICT OF INTEREST/OUTSIDE EMPLOYMENT STATEMENT CSSD expects you to conduct business according to the highest ethical standards of conduct. You are expected to devote your best efforts to the interests of CSSD. Business dealings that appear to create a conflict between the interests of CSSD and an employee are prohibited. CSSD recognizes your right to engage in activities outside of your employment, which are of a private nature and unrelated to our business. However, you must disclose any possible conflicts so that CSSD may assess and prevent potential conflicts of interest from arising. A potential or actual conflict of interest occurs whenever an employee is in a position to influence a decision that may result in a personal gain for the employee or an immediate family member (i.e., spouse or significant other, children, parents, siblings) as a result of CSSD’s business dealings. Although it is not possible to specify every action that might create a conflict of interest, this policy sets forth the ones which most frequently present problems. If you have any question whether an action or proposed course of conduct would create a conflict of interest, you should immediately contact the Human Resources Department to obtain advice on the issue. The purpose of this policy is to protect you from any conflict of interest that might arise. A violation of this policy may result in immediate and discipline or discharge. Outside Employment You are hired and continue in CSSD’s employ with the understanding that CSSD is your primary employer and that other employment or commercial involvement, which is in conflict with the business interests of CSSD, is strictly prohibited. This may include but is not limited to employment with direct competitors of CSSD. In addition, outside work activities may not be allowed if they: prevent you from fully and effectively performing work for which you are employed at CSSD, including overtime assignments; involve organizations that are doing or seek to do business with CSSD, including actual or potential vendors or customers; or violate provisions of law or CSSD’s policies or rules. If you are considering engaging in outside employment or other commercial ventures that could potentially conflict with your employment obligations or the Company’s business interests, you must first discuss the matter with your Manager or Human Resources to determine if a conflict of interest would exist. CSSD Employee Handbook Page 10 Interest in Other Businesses You may not act as a board member for, nor have other outside business relations with, current or potential competitors, clients or vendors of the Company without prior written permission by the Company. You must report any stock or other financial interest, held by yourself or your immediate family, in excess of 1% of the worth of any present or potential competitor, customer, or supplier. Reporting Potential Conflicts You must promptly disclose actual or potential conflicts of interest, in writing, to your Manager. Approval will not be given unless the relationship will not interfere with your duties or will not damage the relationship with CSSD. F. IMMIGRATION LAW COMPLIANCE CSSD is committed to full compliance with the Federal Immigration Law (Immigration Reform and Control Act). This law requires that all individuals pass an employment verification procedure (I-9) before they are permitted to work. This procedure has been established by law and requires that every individual provide satisfactory evidence of their identity and legal authority to work in the United States, no later than three business days after beginning work. Accordingly, all new employees must comply with this procedure. Many government contracts require that its contractors only hire U.S. citizens. To make sure we meet these types of contract requirements at all times it is our policy to only hire U.S. citizens. G. DRUGS AND ALCOHOL We are committed to providing a safe and productive work environment for all employees. In keeping with this philosophy, it is CSSD’s policy to provide a drug-free workplace and a drug-free workforce. Illegal drugs and controlled substances are not permitted on CSSD’s premises for any reason. The company strictly prohibits the use, transfer, possession, manufacture, distribution, sale, or being under the influence of, illegal or controlled substances or non-prescribed drugs, by any employee while on duty, on company premises, or at any time the employee represents CSSD. Compliance with this policy is considered an essential job qualification for all employees. Violation of this policy may result in disciplinary action or discharge. For the purpose of this policy, illegal drugs are any drug (a) which is not legally obtainable, or (b) which is legally obtainable but has not been legally obtained. The term illegal drugs includes marijuana. It includes prescribed drugs not legally obtained and prescribed drugs not being used for their prescribed purposes. It also includes any substance which a person holds out to another as an illegal drug. In addition, no employee shall bring drug paraphernalia onto CSSD’s premises or property or into CSSD vehicles. Drug paraphernalia includes pipes, bongs, rolling papers and other items used in the ingestion or consumption of illegal drugs. Use of Legal Drugs This policy does not forbid the authorized use and possession of valid prescription drugs, or over-thecounter medications, which have been legally obtained and are being used for the purpose for which they were prescribed and manufactured. However, if an employee’s use of such prescription or over-thecounter medication could reasonably affect or impair the employee’s job performance, or threaten the safety of the employee or others, that employee must notify his or her supervisor before commencing or resuming work. CSSD will determine whether the drug will create a risk to health and safety, or interfere with the employee’s ability to perform his/her essential job functions. No prescription drug shall be CSSD Employee Handbook Page 11 brought upon company premises by any person other than the person for whom the drug is prescribed by a licensed medical practitioner. All such prescription drugs shall be used only in the manner, combination and quantity prescribed. The use, possession, sale, offer to sell, transfer, or purchase of prescription and over-the-counter drugs, except under the conditions specifically permitted in this policy, is prohibited. No employee may be under the influence of alcohol while on duty, on company premises, or at any time the employee is representing CSSD. Occasionally, alcohol may be served at social events sponsored by the Company or when entertaining clients or business partners. Moderate consumption of alcohol is acceptable on such occasions; however, employees are expected to remain responsible, professional, and sober at all times. Alcohol and Drug Testing In order to maintain a safe, drug-free workplace, CSSD will require an employee to undergo drug and alcohol testing under any of the following circumstances: The company has a reasonable suspicion that the employee is under the influence of alcohol, illegal drugs, or is misusing prescription drugs, and such use or influence might adversely affect the employee’s job performance, the safety of the employee or the safety of coworkers. “Reasonable suspicion” will be determined on a case by case basis, and includes but is not limited to consideration of an employee’s behavior, coordination, physical or mental ability state, or the employee’s involvement in an accident or safety incident during working hours, on the CSSD premises, or in a CSSD vehicle. The employee is found to be in possession of physical evidence of a possible violation of this policy (e.g., illegal drugs, alcohol, or paraphernalia, connected with the use of an illegal drug); Illegal drugs and/or alcohol are found in the employee’s immediate work area; A drug or alcohol test may also be required following an employee’s involvement in a work-related accident or violation of safety precautions or standards, whether or not an injury resulted from such accident or violation. Cooperation with any request to be tested under this policy is mandatory. CSSD will pay the cost of any testing that it requests, including the reasonable cost of any necessary transportation to and from the designated testing facility. The testing will usually be by urinalysis. However, other types of testing, such as by breathalyzer, may be used as deemed necessary for the particular substance being screened or the purpose of the test. The presence of illegal substances or alcohol in the sample will be considered a positive result when the detectable amounts are as follows: Alcohol – the current limit set by Florida law which is legally viewed as intoxication. Illegal Drugs – the current levels published in the Federal Register to indicate confirmed presence of the drugs. Prescription and over-the-counter drugs – sample levels in excess of what would be expected by using the drugs as prescribed by the attending physician or use instructions. Employees are prohibited from providing false information in connection with a urine and/or blood test administered under this policy, or from attempting to falsify test results through tampering, contamination, adulteration or substitution. CSSD Employee Handbook Page 12 Reasonable Searches In addition, when the company has cause to believe that an employee or group of employees may be in the possession of illegal drugs or alcohol on company premises or while on company business, they may be required, as a condition of employment, to submit to reasonable searches of their clothing, purses, lunch boxes, briefcases or other containers, or personal vehicles which have been brought onto CSSD property. Federal Drug-Free Workplace Act CSSD is covered by the Federal Drug-Free Workplace Act, and as a covered employer, the Company must certify to the contracting government agencies that it will provide a drug-free workplace in connection with the performance of its government contracts. All employees will be given and will be required to sign a Notification Statement. The Company will include drug-free awareness information in its programs and will comply with the requirements that the government be notified of any employee's workplace-related drug conviction. In connection with the Company’s drug-free workplace compliance obligations, employees must, as a condition of employment, report any conviction under a criminal drug statute for violations occurring on CSSD premises or while conducting company business. A report of a conviction must be made to Human Resources within five days of the conviction. Within ten days of learning about an employee's conviction, CSSD must notify any government agency with which it contracts or subcontracts of the employee's criminal drug statute conviction. Within 30 days of the date CSSD learns of any employee's conviction, it will discipline the employee, up to and including termination. Any employee who is not terminated will be required to satisfactorily participate in and complete a drug abuse assistance or rehabilitation program. Each employee, as a condition of employment, shall sign a Notification Statement, which sets forth the requirements of the Drug-Free Workplace Act. CSSD will make ongoing good faith efforts to maintain a drug-free workplace by implementing the above requirements. Any questions regarding our drug-free workplace compliance efforts should be directed to Human Resources. CSSD is a Drug-Free Workplace as defined by Florida Worker’s Compensation Statutes. Therefore, if there is reasonable suspicion that you may be under the influence of any drug (to include alcohol), you must submit to a drug test (urinalysis, breath, blood, etc) conducted at an approved facility as directed by the Human Resources Department. Failure to submit to and/or successfully pass the test may lead to immediate dismissal and loss of worker’s compensation benefits. If you are under the influence of an authorized prescription drug, the Manager of the Human Resources Department will make the determination as to your ability to perform safely and effectively. Should the determination be that you could endanger yourself and/or others, you will be sent home immediately and transportation will be arranged for your protection if warranted. H. EMPLOYEE ASSISTANCE PROGRAM CSSD offers an Employee Assistance Program (EAP) to you and your family to help with work or personal concerns that may arise. The EAP offers confidential, professional counseling assistance and referral services. A 24-hour hotline is also available at no cost to you. Information regarding the EAP is provided in your benefits open enrollment materials and through Human Resources. CSSD Employee Handbook Page 13 I. EMPLOYEE COMPLAINTS/OPEN DOOR POLICY You are strongly encouraged to speak to your supervisor or to Human Resources about any problems you are having concerning the workplace. This open door policy is designed to provide CSSD employees with a forum to engage in dialogue and group problem-solving efforts, so we can enjoy a more productive and cooperative work environment. J. ATTENDANCE AND PUNCTUALITY Prompt attendance at work according to your scheduled hours is a term and condition of your employment. You are an integral part of the overall success of CSSD. When you are not here, or are late for scheduled work duties, we are not able to provide the same level of service to our customers. If you are unable to report to work on a scheduled work day, you must give your supervisor as much advance notice as reasonably possible but not later than your regular shift start time so that arrangements can be made to minimize any disruptions to work. If you will be late to work, you must contact your supervisor prior to the start of your scheduled work day whenever possible, but not later than you are scheduled to begin. You must also let your supervisor know how long you expect to be absent or when you expect to arrive at work. If you are unable to call for some reason, please have someone else call on your behalf. Leaving a voice mail message or sending an email or text message may not be sufficient notice. Employees should check with their supervisor to determine the required type of notice that must be given. Excessive absenteeism or repeated instances of tardiness from scheduled work duties constitute a violation of this policy. Excessive absenteeism includes absenteeism that because of its frequency and/or its unexpectedness has an adverse impact on the employee’s productivity or performance, co-workers’, or the Company’s business. If you are absent three (3) consecutive days without notifying us of your absence, you will be considered to have voluntarily resigned without notice at 5:00 p.m. on the third day. If you need to leave work early, notify your supervisor before leaving the premises. Except for emergencies, time away from work needs to be cleared with your supervisor in advance. CSSD reserves the right to require a physician’s certification for any absence due to illness, injury or medical appointments. CSSD Employee Handbook Page 14 II. COMPENSATION PRACTICES A. COMPENSATION POLICIES CSSD’s compensation administration program is designed to attract, retain, and reward employees. Salaries are based on job responsibilities, work performance, internal pay equity, and external competitive pay practices. Each position is assigned a job title, pay grade and pay range. In addition to CSSD’s compensation policies, federal, state and local laws apply to pay practices. Questions regarding your compensation should be directed to your supervisor and/or Human Resources. B. EMPLOYEE CLASSIFICATIONS & BENEFIT ELIGIBILITY All employees are classified as either exempt or non-exempt based on their job duties, full or part-time based on their regular work schedule, and regular or temporary based on the anticipated duration of their employment. Exemption Status Exempt Employees are paid on a salary basis and are exempt from overtime pay requirements under applicable federal and state law. Exempt employees are typically executives, administrative employees, or professionals. Computer professionals may be paid on an hourly basis. Exempt employees are compensated for performing defined functions and assignments, not for hours worked, however few or many. Non-Exempt Employees are paid on an hourly basis and are eligible for overtime pay in accordance with applicable federal and state labor laws. Employment Status Regular Employees have no specified duration of employment. Regular full-time and regular part-time employees are eligible for all employee benefits in accordance with the terms of such benefit plans. Full-Time employees regularly work 40 hours or more per workweek. Part-Time employees regularly work 20 hours or more per workweek, but less than 40 hours. Limited Part-Time employees regularly work less than 20 hours per workweek. Temporary & On-Call Employees are employed by the Company to temporarily supplement the workforce. On-call employees work only as-needed, thus their hours may vary by day or week. Temporary and on-call assignments are generally less than one year, but may be extended. Employment beyond any initially or subsequently stated assignment period does not imply a change in employment status. A change in status occurs only if the employee is expressly notified in writing. Temporary and on-call employees are not eligible for employee benefits, with the sole exception of certain benefits available under the Cubic Corporation 401(k) Plan. See the Summary Plan Description for specific eligibility criteria. Contractors are engaged to provide services to CSSD on a temporary basis through a staffing agency or other third-party and are not CSSD employees. Contractors are not eligible for any employee benefits. CSSD Employee Handbook Page 15 C. WORK SCHEDULES CSSD operates under a “9/80” alternative workweek schedule. A “9/80 schedule” compresses 80 hours of work over a two-week period from 10 days into 9 days. Working eight 9-hour days and one 8-hour day provides employees the opportunity to be “off” on alternate Fridays. Work schedules may vary, depending on the CSSD business or work units. CSSD reserves the right to change work schedules as business needs may require. D. TIME CHARGING Employees who complete weekly time records should charge paid time off to the following indirect charge numbers: Vacation ............................................................... 0002 2100 Sick Leave............................................ ............... 0002 2200 Jury Duty.............................................. ............... 0006 0100 Leave Without Pay………………… ................... L (press tab) Personal………………………………… ............ 0002 2210 You are required to input your work hours on a daily basis using the Electronic Time Card Program. Planned absences are required to be indicated in the electronic timecard. You may input vacation and personal time up to three weeks ahead. All Full-time employees are required to have hours that add up to the normal weekly total (36/44). If you are not able to work a full week and do not plan enough vacation, sick or personal time you must enter in the code for Leave without Pay (LWOP). You are responsible for accurate and timely submission of your time records. Your manager or supervisor will review the Electronic Timecards for accuracy as to hours worked and the correct work order codes. Your manager or supervisor is responsible for the timely approval of your time records. If you require assistance with your timecard please see your manager or supervisor or a member of the Human Resources department. If you have a planned absence on the day time sheets are due, please complete your electronic timecard, process it and submit to your supervisor early. Be sure to use the correct work order code, training, vacation, sick, personal, etc. Please contact your manager and Human Resources if you are unable to complete your timecard. The Labor Cost Accounting System is designed to collect and report direct and indirect labor costs, and to produce accurate, complete and current data. A key part of the system is the authorization to incur costs. This authorization is provided by your supervisor, but it is you, the individual employee, recording your time accurately and completely for work actually performed, who makes the whole system function. Your signature on your time record certifies that you did the work which will be charged against the account number(s) indicated for the time shown. Falsifying your time record is a serious matter and will result in disciplinary action, up to and including possible termination. Allowing another employee to complete your time record is also not permitted. E. MEAL AND BREAK PERIODS Employees are provided the opportunity to take both meal and rest breaks. The purpose of meal and rest periods is to give you an opportunity to take a break from your work duties, relax and recover your energy level. For this reason, it is important to take meal and rest periods on a regularly scheduled basis. A meal period is 30, 45 or 60 minutes long, depending upon your daily work schedule and department, and is unpaid. Meal periods should be taken as close to the middle of your workday as possible. CSSD Employee Handbook Page 16 Nonexempt employees are also provided a 15-minute rest period (depending on work location) for each four hours of work. Rest periods are provided as company-paid time. Questions regarding meal and break periods should be discussed with your supervisor or Human Resources. F. OVERTIME From time to time, business requirements may dictate that employees perform authorized overtime work. Employees are expected to accept such overtime assignments and will be given as much advance notice as possible when overtime requirements arise. Prior approval from your Supervisor, Manager or Program Manager is required before working overtime. Only non-exempt employees are eligible to receive overtime pay and will be compensated for overtime in compliance with governing state and federal laws. Only those hours during which an employee is actually engaged in assigned work-related duties will be counted in determining whether an employee is entitled to overtime compensation. Nonworking time such as vacation, sick leave and jury duty will be deducted from total hours worked before calculating overtime pay for a workweek. Company paid holidays will not be deducted for a workweek. G. CALL-IN PAY Non-exempt employees called in to work on a nonscheduled workday, workweek or shift, will be guaranteed a minimum of four hours work or pay at regular rates, or overtime pay, if eligible. Call-in pay will be in accordance with applicable federal and state laws. Exempt employees are not eligible for callin pay. H. SHIFT DIFFERENTIALS Shift differentials are provided to nonexempt employees working second and third shifts. Employees working the second shift will receive a 10% shift differential for every hour they work. Shift differential will automatically be calculated and added to all second shift employee’s pay. Employees with questions concerning shift differentials should contact the Payroll Department. An off-site differential will be paid to non-exempt employees who are on out of town company travel. This payment is for employees who are working offsite for the company. Training does not qualify for this pay differential. Employees who qualify for off-site pay will receive $1.00 per hour in addition to their regular hourly rate for every hour they work offsite. In order to receive Offsite differential the employee must turn in an offsite pay form request form to Human Resources. Hazard Pay is provided to all employees who are on company travel in foreign cities deemed hazardous. Hazard pay rates vary by city. The rates are located on the US Department of State website (http://www.state.gov/m/a/als/prdm/65735.htm). In order for the city to qualify for Hazard pay it must be listed on this website. The calculation for Hazard pay is as follows: Annual Salary/365 x Number of Days spent in approved city x % provided Example: If annual salary is $40,000 and employee will be in Afghanistan for 10 days $40,000/365 x 10 x 35% = $767.12 in hazard pay (in addition to regular pay) CSSD Employee Handbook Page 17 Employees with questions concerning pay differentials should contact the Human Resources department. I. LEAD PAY A non-exempt employee may be designated as a Lead by his or her supervisor in certain departments. Should you be designated as a lead, you will receive additional compensation, 6% above your normal hourly rate. J. PAY PERIODS Employees are paid every other Friday. The check you receive is for the two-week period ending the previous week. If you are absent from work on a payday, your paycheck will be held until you return. You may, however, give written permission for someone else to pick up your check. For a more convenient way of banking, you may arrange for a direct deposit through Human Resources or Payroll. Direct deposit automatically deposits your paycheck into your bank account. K. PAYROLL DEDUCTIONS The various deductions from your total earnings are itemized on your payroll check stub. Some deductions are required by law, such as Federal Income Tax (FIT), State Income Tax (SIT) if applicable, Social Security (OASDI), Medicare (MEDCARE), and State Disability Insurance (SDI) if applicable. Others are voluntary and specifically authorized by you, such as insurance deductions and 401(k) contributions. If you have any questions about your paycheck, feel free to discuss them with your supervisor or the Human Resources Department. CSSD Employee Handbook Page 18 III. EMPLOYEE BENEFITS A. INSURANCE BENEFITS Recognizing the high cost of health care and the needs of individual employees, CSSD provides group medical and dental insurance plans. The medical and dental plan enrollment materials contain a detailed description of the available benefits and their cost. Group health insurance is available for you and your eligible dependents, including eligible domestic partners, if you are a regular employee. Other insurance benefits may include life, accident, disability, and long-term care insurance. CSSD also provides Section 125 premium and spending account plans. B. HEALTH/DENTAL INSURANCE If you are a regular full-time or part-time employee who works 20 hours or more per week you will be offered health and dental insurance for you and your dependants including eligible domestic partners upon employment. The Human Resources Department will assist you in making the necessary arrangements for enrollment during orientation. Summary Plan Descriptions and appropriate supplements will be provided to you at that time. At the end of each plan year, during open enrollment you are free to change your medical and dental elections for the following plan year, whether or not you have a change in family status. C. GROUP LIFE INSURANCE CSSD provides Life and Accidental Death and Dismemberment (AD&D) insurance policies for all regular full-time and part-time employees working 20 or more hours per week upon employment. If you are a regular full-time employee your coverage is 1.75 times your base salary up to a maximum of $50,000. If you are a regular part-time employee working 20 or more hours per week your coverage is ½ the full-time coverage. Additional Life/AD&D insurance is also available for you to purchase for yourself and your dependants. D. EMPLOYEE ASSISTANCE PROGRAM CSSD offers an Employee Assistance program (EAP) to you and your family to help with work or personal concerns that may arise. The EAP offers confidential, professional counseling assistance and referral services. A 24-hour hotline is also available at no cost to you. Information regarding the EAP is located on the CDA Intranet, provided in your benefits enrollment materials and through Human Resources. E. CONTINUATION OF HEALTH BENEFITS (COBRA) Upon the occurrence of a “qualifying event,” employees covered under CSSD’s health plans and their dependents are eligible for a temporary extension of health coverage, pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for the period provided by law. Some of the common qualifying events include an employee’s resignation; termination of employment, substantial reduction in an employee’s working hours, the death of an employee, an employee’s divorce or legal separation and an employee’s child no longer meeting eligibility requirements. Most COBRA extensions are for eighteen (18) to thirty-six (36) months, depending on the reason for loss of coverage. At the time of the qualifying event, Human Resources will give you a detailed explanation of COBRA benefits and put you in touch with the third party that administers CSSD’s COBRA program. CSSD Employee Handbook Page 19 F. 401(K) PLAN Employees who meet eligibility requirements may participate in the following components of the Cubic Corporation Employees’ 401(k)/Retirement Plan: 1. Employee Contributions All eligible employees will automatically contribute three percent (3%) of their compensation as a pre-tax contribution, unless they affirmatively elect otherwise. Eligible employees may also contribute up to five percent (5%) of their compensation, on an after-tax basis. 2. Company Match CSSD will match $0.75 for each $1.00 of employees’ pre-tax contributions for each pay period, up to a maximum of six percent (6%). Employees become eligible to receive matching contributions on the 1st day of the quarter (January 1, April 1, July 1 or October 1) following the later of their 6 month anniversary or the date they attain age 21. Employees are immediately 100% vested in their CSSD matching contributions. G. WORKERS’ COMPENSATION CSSD provides employees with workers’ compensation benefits if they are injured while working on CSSD premises or when performing work on behalf of CSSD off-site. All work-related injuries, no matter how minor, must be reported immediately to your supervisor. You must complete an accident report of injuries form, and an employee’s claim form for workers’ compensation benefits within 24 hours of an accident. You should review these forms with your supervisor, and forward them to the Safety Coordinator for processing. The final disposition of a workers’ compensation claim is subject to state regulations. You may contact your local Human Resources Representative for other information relating to workers’ compensation. H. SHORT-TERM DISABILITY Employees who are unable to work because they have suffered a non-work related illness or injury may be entitled to receive short-term disability insurance through CSSD. CSSD provides short-term disability insurance at no cost to the employee. Benefits under this plan commence after seven (7) days of disability and replaces 55% of your base weekly earnings to a maximum of $500 per week. If you work in a state with a mandatory state disability insurance plan, you are not eligible for the CSSD plan. I. LONG-TERM DISABILITY Employees who are unable to work because they have suffered a non-work related illness or injury may be entitled to receive long-term disability insurance after ninety (90) days. CSSD provides, at no cost to you, a basic core plan with an income benefit of 50% of earnings, to a maximum benefit of $2,500 per month. Employees can purchase additional long-term disability insurance coverage which, when combined with the core plan, provides an income benefit of 66 2/3% of earnings, commencing after 90 days of disability, to a maximum benefit of $10,000 per month. J. SEVERANCE BENEFITS Employees who leave the company for reasons such as termination due to a business reorganization or reduction in force, job elimination, or a mutually agreed upon separation may be eligible for a basic or an enhanced severance benefit. CSSD Employee Handbook Page 20 All such employees are eligible for a basic severance benefit of two weeks base pay. However, employees who have completed three or more years of service, and who sign a Separation and Release Agreement which is not rescinded, may be eligible for an enhanced severance benefit calculated by multiplying full years of service by their current weekly rate of pay. Temporary employees, on-call employees and employees who cannot receive benefits are not eligible for severance benefits. Employees receiving enhanced severance upon termination will also be provided COBRA coverage with premiums paid by the company based upon the following schedule: Length of Service COBRA Coverage Paid by Company 21+ 16-20 11-15 6-10 3-5 12 10 6 4 2 years years years years years months months months months months Employees should refer to Corporate Policy 7-14 for more information regarding severance benefits. K. JOB OPPORTUNITY PROGRAM AND TRANSFERS In order to encourage employees to develop to their fullest potential, opportunities for career growth are provided through CSSD’s Job Opportunity Program. Job openings will be posted on the HR SharePoint site on the CSSD Intranet. If you are interested in a posted job opportunity, have been in your present position for at least one year and satisfy the minimum job requirements, you may apply for the position. For additional information regarding your eligibility and program procedures, please contact Human Resources. L. EDUCATIONAL ASSISTANCE PROGRAM All regular, full-time employees who will have completed six months of service by the end of a course are eligible to participate in the Company’s tuition reimbursement program. In the event CSSD agrees to support your academic efforts and believes that your job performance warrants and will not suffer, the Company will reimburse you 100% of tuition for approved courses that are directly related to your current job up to a maximum of $5,250 per calendar year for undergraduate or certificate programs and $15,000 per calendar year for graduate or post graduate programs. All courses and degrees must be from an accredited school and are subject to approval by Human Resources prior to enrollment. Eligible courses must be directly and substantially related to improving your productivity or skills in your current job. Costs for textbooks and materials will also be reimbursed. To receive consideration for tuition reimbursement, you must apply by completing the Education Assistance Service Agreement, the Education Assistance Statement of Intent form followed by an Education Assistance Authorization form. Each course must be approved before it begins. Please note the following: Before enrolling in a degree or certificate program, or a one-time course, read and sign the Education Assistance Service Agreement and the Education Assistance Statement of Intent form and forward it to the Human Resources Department for approval. If approval is granted, complete an Education Assistance Authorization form (one for each course). If your manager approves the form, return the signed form to the Human Resources Department. Once you receive your grades, return the tuition invoice with receipt of payment and the final grades (a grade of “B” or higher for graduate courses and “C” for all other coursework) to Human Resources. CSSD Employee Handbook Page 21 If you resign or are discharged before receiving a grade, you will not be reimbursed for tuition expenses. If you resign or are discharged for performance or behavior reasons within 2 years after receiving reimbursement, you must repay CSSD the reimbursement in full by your last day of work, as stated in the Education Assistance Service Agreement. M. FOOD SERVICES For your convenience, certain CSSD locations provide coffee and a kitchen area. You are expected to keep food service areas clean and to use trash containers. Please be respectful of others’ food allergies and do not make flavored coffees. Except for lunches stored in a refrigerator, you should not leave or keep any personal possessions in a lunchroom. Food items as well as containers left in refrigerators over the weekends will be discarded. N. ANNIVERSARY AWARDS The service and commitment of employees is appreciated and their contributions are recognized. When you attain designated years of service, they will be acknowledged by the company through anniversary awards. Information about your eligibility is available from Human Resources. O. RECOGNITION PROGRAM The CSSD Recognition Program is used to acknowledge significant accomplishments and achievements by individual employees or employee teams through tangible awards. Presidents, Vice-Presidents and Directors are not eligible for the program. More information may be obtained from Human Resources or on the CDA intranet. P. REFERRAL BONUS PROGRAM An email is sent out monthly listing any open positions and the degree of difficulty to fill (denoted by asterisk). Rules: $5,000.00 reward- positions marked by double asterisks ** indicate very hard to fill positions. $3,000.00 reward- positions marked by a single asterisk * indicate hard to fill positions. Positions marked as “very hard” and “hard to fill” are the only positions that a referral fee will be paid for. Fees will be paid for external candidates only. Current Cubic employees (full or part-time) are eligible to participate with the following exceptions: all Cubic Presidents, Vice Presidents, Directors, and Human Resources department employees. A completed Employee Referral form (Form #CF7-236), available in Human Resources, must be received with attached resume before it will be considered. When more than one employee refers a candidate, the award will be made to the person whose Employee Referral form was received first. The hired candidate and referring employee must both be active employees for at least 90 days before the referring employee will receive their check. Supervisors with an opening are ineligible to participate in the Referral Program when referring candidates to fill their own requirements. If the employee making the referral terminates employment prior to the end of the 90-day period, they will not be eligible for an award. CSSD Employee Handbook Page 22 The recruitment staff will determine award eligibility by reviewing each referral. The time limit for a referral to remain current and eligible for an award is 6 months. The payment of an award for a referral constitutes taxable income. Interpretation of the above rules and modifications thereto, are at the discretion of the Manager of Human Resources. Q. RESULTS SHARE INCENTIVE PROGRAM CSSD has a cash bonus program to reward you for your contribution and dedication. All employees are eligible upon completion of your initial employment period to receive a percent of annual pay based on the achievement of financial goals set by CSSD. The plan’s objectives are set on a fiscal year basis, reviewed and adjusted annually by management and approved by the VP/GM. Please contact a representative from Human Resources for details. CSSD Employee Handbook Page 23 IV. PAID LEAVE FROM WORK A. VACATION Regular full-time and regular part-time employees are eligible for paid vacations. Vacation is accrued from the first day of employment and is available for use as it is earned. Beginning on date of hire, regular full-time employees accrue vacation according to the following schedule: Years of Employment 0-4 5-9 10+ Amount of Vacation per Year 2 Weeks 3 Weeks 4 Weeks * The new accrual rate will begin accruing on the first day after your anniversary date. Vacation time for regular part-time employees will be earned at one-half the full-time employee rate. Employees who are both regular part-time and full-time during the same year are eligible for vacation time on a prorated basis, depending upon the amount of time spent in part-time and full-time status. At the end of each fiscal year (on the last day of the accounting year), you may carry forward up to one full year of accrued vacation time. Any unused vacation over that amount will not be carried over. Employees are encouraged to take annual vacations. Vacation time typically should be taken during the twelve-month period following eligibility. For planning purposes, please send a request for vacation time via the Vacation Request tool found on the CSSD Intranet to your supervisor/manager for approval. You should submit your vacation requests as far in advance as possible (30 days is preferred). Vacation periods are granted for the time you request, when possible, although final determination of your vacation period depends upon the workload of your department and your position. During a leave of absence designated as FMLA, you will continue to accrue vacation for the first month of the leave and for any subsequent period of your leave during which you are able to replace your regular full-time wages with previously accrued vacation hours. Thereafter, vacation accrual will be suspended until you have returned to active work status. Upon return to active status from a leave of absence, you will resume accrual of vacation time from your date of return to your next anniversary date. While receiving short and long term disability benefits, you may elect to charge the difference between your gross pay and disability benefits to unused sick leave hours and/or vacation. When a Company holiday falls during a scheduled vacation, it is counted as a holiday, not as a vacation day. If you become ill during a scheduled vacation, you cannot change a vacation day to a sick day. Scheduled vacation days count as vacation even if you would ordinarily take a sick day. If you are a non-exempt employee and work overtime and take vacation in the same week, the vacation (if eligible) and the worked hours will be paid as straight time until the hours worked exceed 40 hours. Work and holiday hours must exceed 40 hours before you will be paid overtime. If you resign or are terminated, you will receive any unused vacation time. B. SICK LEAVE CSSD recognizes that you may occasionally be out of work due to your own or an immediate family member’s injury, illness, or medical appointments. This Sick Leave policy is designed to provide you CSSD Employee Handbook Page 24 with protection against loss of income during such absences. All regular full-time and regular part-time employees are eligible for paid sick leave. Regular full-time employees are eligible for up to 80 hours of paid sick leave per anniversary year. Sick leave for part-time employees who work more than 20 hours per week will be earned at one-half the fulltime employee rate. Immediate family member is defined as spouse, registered domestic partner, child or parent. Sick leave hours may not be carried over from one calendar year to the next. CSSD does not pay for unused sick hours at the end of the calendar year or upon separation. To be eligible for sick pay, you must call your supervisor as far in advance of your anticipated absence as reasonably possible, but no later than one hour before the start of your workday (except in emergency situations). You must inform your Supervisor when you expect to return to work and the general reason for your absence. If your expected return date/time changes, you must call your supervisor to inform him/her of the change before your original return date/time passes. If your supervisor is not available, the Human Resources Department must be contacted. If you are unable to make the call personally, a family member or a friend should contact your supervisor or HR. If you are absent for three or more consecutive work days without contacting your supervisor to explain your absence and provide an expected return date, you will be considered to have abandoned your job and will be separated from employment. If you are absent for more than five consecutive work days, or five non-consecutive work days for the same medical reason, you must submit a written medical certification verifying your need to be absent. You may also be required to submit a written Return-To-Work authorization from your healthcare provider verifying that you are able to safely return to work and indicating any restrictions. In the case of a medical emergency or a surgery you will be required to provide Human Resources with a Return-To-Work authorization from your healthcare provider releasing you back to work regardless of whether or not you have been out of work five consecutive days or have used sick time during the absence. Paid sick leave hours do not count as hours worked. Only hours actually worked and company paid holidays count toward overtime calculations. While receiving short and long term disability benefits, you may elect to charge the difference between your gross pay and disability benefits to unused sick leave hours and/or vacation. C. PERSONAL LEAVE TIME You will receive twenty-four (24) hours of paid personal leave time per calendar year. Personal time may be used with your supervisor/manager's advanced approval. Personal time should be used when you need to take time off for bereavement due to the death of a family member or friend or to allow you to take care of personal issues that may arise. If you have questions about how you may use your personal time please see the Human Resources department. Personal time does not accrue and may not be carried over from one year to the next. Unused personal time will not be paid out at the end of the year nor upon departure from CSSD. Personal time for part-time employees who work more than 20 hours per week will be earned at one-half the full-time employee rate. CSSD Employee Handbook Page 25 Personal time does not count as hours worked. Only hours actually worked and company paid holidays count toward overtime calculations. D. HOLIDAYS Regular full-time and regular part-time employees are eligible for paid holidays beginning on their date of hire. CSSD observes a total of 11 paid holidays per year. The following seven holidays are observed each year: New Year’s Day Memorial Day Independence Day Labor Day Thanksgiving Day Friday after Thanksgiving Christmas Day Four additional holidays are designated by management each year. These holidays are scheduled at the end of the year to allow a full week off between Christmas and New Year’s Day. In some cases, contract requirements or location may necessitate a change in observed holidays. At CSSD’s discretion, holidays that fall on a Saturday or Sunday may be observed on either the Friday before or the Monday after the holiday. For employees working an alternative workweek schedule, holiday pay is paid as follows: if you are a regular full-time employee, holiday pay is paid for nine hours of work if the holiday falls on a nine-hour day, and eight hours if the holiday falls on an eight-hour day, at a straight time rate. Employees who work on a “9/80 schedule” will not be compensated for holidays that fall on regularly scheduled “off” Fridays. Shift differential is also excluded. If you are a regular part-time employee, you receive straight time for 4 hours holiday pay. If you are a limited part-time or temporary employee, you are not eligible for holiday pay. Non-exempt employees who work on a holiday will receive holiday pay plus one and one-half times their regular rate for each hour worked on the holiday. E. JURY DUTY LEAVE/APPEARING AS A WITNESS CSSD encourages its employees to fulfill their civic responsibilities. Regular full-time employees will be paid their regular base pay for up to twenty workdays of jury duty per year. Jury service which extends beyond twenty days will be without pay. Regular part-time employees will receive regular pay on a pro rata basis not to exceed ten part-time workdays, or five full-time workdays depending on work schedule. Limited part-time and temporary employees are not eligible for paid jury duty leave. Employees must submit a copy of their jury summons and their time records for each day of jury service to Payroll. Employees should inform their supervisor as soon as they receive a notice of jury duty. Employees on telephone standby are required to come to work unless directed to appear in court. If you report for jury service and are excused prior to one-half or fewer hours of your regularly scheduled workday, you are required to return to work. If the jury service exceeds one-half of your regularly scheduled workday CSSD Employee Handbook Page 26 hours, you are not required to return to work. Depending upon your shift schedule, alternative arrangements may be considered. Employees who are subpoenaed to appear in court as a witness in legal matters unrelated to their employment with CSSD will be provided with unpaid time off. Employees who are requested by Cubic to appear in court as a witness, or subpoenaed to appear in court as a witness in a matter related to their employment with CSSD, will be provided with paid time off to do so. If you need to appear in court, you must provide your supervisor with a copy of the relevant subpoena as far in advance as reasonably possible. The procedure for pay as a witness is the same as for jury duty. CSSD Employee Handbook Page 27 V. UNPAID LEAVE FROM WORK CSSD may grant employees a leave of absence for a variety of reasons including, but not limited to, medical issues, childbirth, family care, military duty or training, personal matters, bereavement, and jury duty. When requesting unpaid leave, you must provide at least 30 days’ advance notice for a foreseeable event (e.g., the expected birth of a child or a planned medical treatment). For events that are unforeseeable, or foreseeable by less than 30 days, you must notify the Company as soon as reasonably possible after learning of the need for leave. Medical certifications are also required, as discussed below, for leave necessitated by your own or a family member’s illness or injury. All required certifications must be provided within 15 days of being requested by the Company. If a certification is not provided within 15 days of the first request, your leave may be delayed or denied. Although leave is unpaid, you may choose to use accrued sick or vacation time. Depending on the reasons leave is taken, you may be eligible for short-term and/or long-term disability insurance. Employees may not apply for unemployment insurance while on leave. If you return to work immediately following an approved leave under the Family and Medical Leave Act, you will be reinstated to your original job or to an equivalent job with equivalent pay, benefits, and other employment terms and conditions, unless returning you to such position would provide greater rights than you would have had if you had not taken leave. A. MEDICAL LEAVE Following is a summary of CSSD’s medical leave policies. If you are requesting a medical leave, please refer to Cubic Regional Policy (CRP HR-08) “Employee Leaves of Absence” for all of the terms and conditions of a medical leave. CRP HR-08 is available on the Corporate intranet site and through the Human Resources Department. 1. General Provisions Employees who are unable to work due to medical reasons may request a medical leave of absence. There are two types of medical leave available to all CSSD employees: FMLA leave and discretionary medical leave. The type of leave granted will be based on the eligibility requirements in effect at the time the leave is requested. While on an approved leave, you may continue medical, dental, life, accident, and disability insurance coverage by paying your portion of the premiums during the leave period. Section 125 spending accounts can be adjusted before and after you take a leave of absence. CSSD will continue to pay its portion of medical, dental, life, accident and disability insurance premiums during the approved leave. When seeking FMLA or discretionary medical leave you must provide timely notice of the need for leave and a medical certification from your healthcare provider. The certification must state the date the medical condition began, the date you first became unable to work, and the anticipated duration of your need for leave. Your local HR Representative or Corporate Benefits Representative can supply you with the appropriate medical certification form for this purpose. In addition to providing necessary medical certifications, it is important that you keep in touch with your supervisor or HR Representative during your leave, and give prompt notice if there is any change in your expected return date. CSSD Employee Handbook Page 28 When you are ready to return to work, have your healthcare provider sign a statement of release authorizing you to return to work and indicating any restrictions. This statement must be given to your local HR Representative or Corporate Benefits Department at least three business days before you return to active status. It is your responsibility to obtain and provide these certifications and statements. 2. FMLA Medical Leave FMLA provides eligible employees with up to 12 weeks of unpaid leave in a 12-month period for a covered serious health condition that renders the employee unable to perform their job. The 12-month period is measured on a rolling forward basis, from the first date the employee takes FMLA leave. To be eligible for medical leave under the FMLA you must: (1) have completed 12 months of service with Cubic; (2) have worked at least 1,250 hours during the 12 months preceding the requested leave; and (3) work at a location where there are at least 50 Cubic employees employed within 75 miles. Under FMLA, a serious health condition includes “pregnancy disability,” meaning a temporary disability due to childbirth, pregnancy or related medical conditions. When seeking FMLA leave you must provide timely notice of the need for leave and a medical certification from your healthcare provider. You must also keep your local HR Representative apprised of any changes in your anticipated return to work date. Please refer to the full FMLA policy applicable to CSSD employees at Cubic Regional Policy (CRP HR08) “Employee Leaves of Absence.” 3. Discretionary Medical Leave A discretionary medical leave may be granted for up to 12 months for regular full-time employees and up to six months for regular part-time employees. Exceptions will be made when necessary to provide reasonable accommodation under the Americans with Disabilities Act (ADA) or applicable state law. CSSD hopes to continue the employment relationship with employees taking discretionary leave; however, the Company cannot guarantee reinstatement. In some circumstances, because of the expected duration of your leave, the impact of your absence on business operations, or other business related factors, the Company may need to fill your position during the leave. In that case, you may be reinstated if there is an open position for which you are qualified at the end of your leave period. B. FAMILY CARE/MILITARY CAREGIVER LEAVE Following is a summary of CSSD’s family care and military caregiver leave policies. If you are requesting such a leave, please refer to Cubic Regional Policy CRP HR-08 “Employee Leaves of Absence” for all of the terms and conditions applicable to these types of leave. CRP HR-08 is available on the Corporate intranet site or through the Human Resources Department. CSSD provides family care leave (“FCL”) and military caregiver leave (“MCL”) to eligible employees consistent with the provisions of the FMLA. To be eligible for FCL or MCL, employees must meet the same eligibility requirements for FMLA medical leave, stated above. Eligible employees may take up to 12 weeks of FCL in a 12-month period for the care of a newborn child, placement of an adopted or foster child, or to care for a spouse, eligible domestic partner, child or parent with a serious health condition. The 12-month period for purposes of FCL is measured forward from the first date the employee takes FCL. CSSD Employee Handbook Page 29 Eligible employees may take up to 26 weeks of MCL in a single 12-month period to care for an immediate family member or next-of-kin who is a covered servicemember recovering from a serious injury or illness sustained in the line of active military duty. The single 12-month period begins on the first day the employee takes FMLA leave to care for a covered service member and ends 12 months after that date. While on an approved leave, you may continue medical, dental, life, accident, and disability insurance coverage by paying your portion of the premiums during the leave period. CSSD will continue to pay its portion of medical, dental, life, accident and disability insurance premiums during the approved leave. You must provide your supervisor or HR Representative with notification of the need for leave as far in advance as reasonably possible. You must also support your request with a medical certification from a licensed medical professional verifying your need for FCL or MCL and the expected duration of your leave. Leave to care for a newborn or placement of an adopted or foster child requires evidence of the birth, adoption or foster care placement. The appropriate medical certification forms may be obtained from your local HR Representative or the Corporate Benefits Department. C. MILITARY EXIGENCY LEAVE Eligible employees may take up to 12 weeks of FMLA leave within a 12-month period because of a qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a member of the Armed Forces (including the National Guard or Reserves) on covered active duty, or has been notified of an impending call or order to covered active duty (“Military Exigency Leave”). The 12month period for purposes of military exigency leave is measured forward from the first date the employee takes such leave. “Qualifying exigencies” include: short-notice deployment; military events and related activities; childcare and school activities; financial and legal arrangements; counseling; rest and recuperation leaves; postdeployment activities; and other reasons as agreed upon between the Company and the employee. Certain restrictions on leave may apply, depending upon the nature of the qualifying exigency. When an employee requests leave due to a qualifying military exigency, the Company will require the employee to provide a copy of the covered military member’s active duty orders or other documentation issued by the military which indicates that the covered military member is on active duty or call to active duty status in support of a contingency operation, and the dates of the covered military member’s active duty service. The Company also will require that such leave, because of a qualifying exigency, be supported by a certification from the employee that sets forth the additional facts necessary to verify the employee’s need for such leave and the anticipated duration. D. DISCRETIONARY PERSONAL LEAVE With prior approval of management, a leave of absence may be granted for personal reasons. Normally, requests for personal leave should be limited to unusual circumstances requiring an absence of longer than two weeks. Such leaves can only be granted with the prior written approval of your supervisor and are subject to the discretion and staffing needs of CSSD. Personal leaves of absence may be granted for a maximum of two months for regular full-time employees; and a maximum of one month for regular part time employees. Your supervisor may approve time off without pay for five days or less and designate it as “excused time off.” Beyond five days, you must receive written approval for a discretionary personal leave. CSSD Employee Handbook Page 30 E. MILITARY LEAVE CSSD provides military leave of absence is accordance with the provisions of the Uniformed Services Employment and Reemployment Rights Act (USERRA). To apply for a military leave, you should submit a written verification from the appropriate military authority to your manager or HR Representative. You should provide as much advance notice of your need for leave as reasonably possible. If you receive government compensation that is less than what you would normally receive as a CSSD employee, CSSD will supplement your military compensation for a maximum of ten workdays. This supplement will be calculated using your base CSSD pay and your base military pay only. Reservist travel pay, rations, quarters and uniform allowance will not be used in the calculation of the supplement. Under certain circumstances, CSSD, at its sole discretion, may change the time frame used in calculating the supplement to your military compensation. CSSD Employee Handbook Page 31 VI. EMPLOYEE CONDUCT GUIDELINES A. EMPLOYEE RELATIONS AND STANDARDS OF CONDUCT It is imperative, if we are to work as a team, that we be professional and respectful to one another and try to understand and appreciate the differences between individuals at work. All CSSD employees must follow these guidelines: Behave in a professional manner. Treat your fellow workers and managers in a respectful manner. Do not openly criticize another staff member in public areas, in front of customers, coworkers or other third parties. Discuss sensitive problems in private or, if appropriate, during staff meetings. Work as a team, reflecting concerns for the benefit of CSSD and its employees overall, as opposed to individual staff member concerns. Communication and conflict resolution among staff are vital to the healthy operation of CSSD. Seek assistance regarding troubling or sensitive issues or incidents from a manager or Human Resources. Certain conduct and behavior is impermissible and can lead to disciplinary action or termination. Although it is not possible to provide an exhaustive list of all types of impermissible conduct and behavior, the following are examples: Violation of CSSD policy Refusal to perform work assignments Using abusive, profane or threatening language Engaging in inappropriate or unprofessional behavior, including but not limited to, behavior that violates our policy against harassment, even if such conduct does not rise to the level of being severe or pervasive Exhibiting poor judgment Oral or written misrepresentations of any kind Violations of government laws, rules, and/or regulations, including but not limited to, those related to reporting by government contractors Dishonesty Falsification or misuse of CSSD records, including work time records and employment application Unauthorized removal of CSSD property or the property of CSSD’s customers or employees Disregard of security regulations Mishandling CSSD proprietary, confidential or government classified information Unauthorized disclosure of trade secrets, proprietary or confidential information of any CSSD company Solicitation of other employees during work hours (other than meal or break periods) Distribution of non-CSSD business material during work hours (other than meal or break periods) Violation of safety rules or deliberate misuse of safety equipment Failure to perform one’s job satisfactorily and/or perform effectively in the organization Leaving one’s department or CSSD property without appropriate approval during scheduled work hours Failure to return from an approved leave of absence Actual or threatened violence toward another CSSD employee, customer, vendor, or visitor Damaging CSSD property, government property, vendors’ property, suppliers’ property, or the property of another employee CSSD Employee Handbook Page 32 Tardiness or absenteeism Absences without proper notification to supervisor. An unreported absence for three consecutive work days is considered a voluntary termination B. ETHICS As a CSSD employee, you are expected to observe the highest standards of business ethics and comply with all laws, regulations, company policies and contract requirements that are applicable to CSSD’s business. The Company is committed to complying with all applicable laws and regulations in the conduct of its business. You are obligated to come forward when you become aware of legal, regulatory or ethical violations, and to present such information to the Corporate Vice President, Ethics and Compliance, the Legal Department, Human Resources or senior management. You can also call the Cubic Ethics Hotline if you have knowledge of conduct by any CSSD employee or anyone doing business with CSSD who is engaging in behavior or activities that violate the law or that are not in keeping with the highest standards of business conduct. The CSSD Ethics Hotline number is (858) 505-1519 or (800) 204-0137. Callers regarding ethics matters will, at their request, remain anonymous and all ethics calls are confidential. No adverse action will be taken against you for making the report if you are not a participant in the illegal or unethical conduct. Once a report is received by CSSD or Cubic, there will be an immediate investigation and appropriate disciplinary action will be taken, up to and including termination if appropriate, against any employee or officer of the Company whose conduct violates applicable laws, regulations, and basic tenets of business integrity and honesty. Employees should refer to Corporate Policy 1-9 for additional information on corporate ethical conduct. C. ACCEPTANCE OF COSTLY GIFTS OR ENTERTAINMENT Employees may not solicit or accept gifts of significant value (i.e., in excess of $20 per gift-giving occasion or $50 annually if given to or received from the same individual), lavish entertainment or other benefits from potential and actual customers, suppliers or competitors. Special care must be taken to avoid even the impression of a conflict of interest. Where such gifts are unavoidable because of local custom, they should be reported to the Legal Department for a determination of the extent to which they may be considered the personal property of the recipient. Employees should refer to Corporate Policy 1-9 for additional information on Corporate Ethical Conduct. You may entertain potential or actual customers if such entertainment is consistent with accepted business and governmental practices, does not violate any law or generally accepted ethical standards and the public disclosure of facts will not embarrass CSSD. (It is usually customary that government employees are not eligible to receive gifts). Any questions regarding this policy should be addressed to the Human Resources Department. CSSD Employee Handbook Page 33 D. HOW CSSD KEEPS EMPLOYEES INFORMED 1. INTRANET You will find information regarding CSSD such as recreation activities, policies and procedures, employment opportunities, training and other items of general interest on the Intranet. 2. CIRCUIT The Circuit is a monthly publication that contains news about Cubic companies, their products and business, employee benefits and your fellow employees. The publication is available online and in hard copy format. For more information about the Circuit, you can contact the Corporate Communications Department. E. USE OF COMPANY EQUIPMENT Cubic Simulation Systems Division provides supplies, equipment and materials (including telephone, facsimile, copier and postage) necessary solely for our business purposes and for you to perform your Cubic Simulation Systems Division assigned work. You are expected to exercise care in the use of Company equipment and property and to use such property only for authorized purposes. Loss, damages or theft of Company property must be reported at once. Negligence in the care and use of Company property may be considered grounds for discipline up to and including discharge. Upon separation of employment all Company property, equipment, work product and documents in your possession or control must be returned. 1. TELEPHONE USE Because a great amount of our business is transacted via the telephone, it is essential to demonstrate professional telephone behavior at all times. Although CSSD realizes that there are times when you may need to use the telephone for personal reasons, it is expected that good judgment be used in limiting the length and frequency of such calls. Additionally, no long distance personal calls may be made on Company phones without prior approval from your supervisor. 2. CELLULAR PHONE USE/TEXTING Employees whose job requires them to conduct business while using a cell phone should refrain from doing so while driving. Under no circumstances should an employee place themselves at risk by driving while using a cellular phone. Employees are expected to pull off to the side of the road before placing or accepting a call. Please reference the Voice Communications policy for more information regarding cellular phone use. F. PERSONAL LAPTOP POLICY The use of Personal Laptop computers is not authorized for work related activities. If an employee needs a laptop for work related activities he/she should request a company laptop from his/her manager. When approved by the manager, the employee should open a help desk ticket. As soon as a laptop is available, it will be provided. If the employee needs to use a personal laptop then the employee must get their manager’s approval, and must conform to the following Cubic Simulation Systems Division standards: IT staff will be consulted to review the Network resources requested and the suitability of the laptop. This support is to be requested through the Help Desk. The computer must be running an operating system that allows for appropriate network security to be applied. Up-to-date comprehensive virus protection software must be licensed and installed on the computer. The employee will make work related use of networked resources. CSSD Employee Handbook Page 34 The employee will save all company information to a network share for backup purposes on a daily basis. There will be no Company obligation for the support of the personal equipment. The owner of the laptop will disconnect from the network at the request of a member of the Information Technology staff. Upon conclusion of laptop use, the employee is to notify IT and their manager via email. G. INTERNAL INVESTIGATIONS AND SEARCHES From time to time, Cubic Simulation Systems Division may conduct internal investigations pertaining to security, auditing or work-related matters. You are required to cooperate fully and assist in these investigations if requested to do so. Whenever necessary, at CSSD’s management discretion, work areas (i.e., desks, file cabinets, etc.) and personal belongings (i.e., brief cases, handbags, etc.) may be subject to a search without notice. It is a requirement that you cooperate, but CSSD will generally obtain your consent before conducting a search of work areas or personal belongings. H. REFERENCE CHECKS All inquiries regarding a current or former Cubic Simulation Systems Division employee must be directed to the Human Resources Department. Should you receive a written request for a reference, you must send the request to the Human Resources Department for proper administration. The Human Resources Department is charged with the responsibility for issuing reference letters or comments on current or former employees because of potential liability concerns. Therefore, under no circumstances should you release any verbal or written information about a current or former Cubic Simulation Systems Division employee over the telephone or otherwise. I. SMOKING POLICY CSSD prohibits smoking throughout the workplace. Smoking is permitted only during your authorized break period in designated areas. Those who smoke outside the front door of the building or any other non-designated smoking area or take excessive smoke breaks will be disciplined. J. USE OF ELECTRONIC RESOURCES CSSD provides a variety of electronic equipment and resources to help employees do their jobs efficiently and productively, including telephones, voice mail, desktop and laptop computers, mobile phones, e-mail accounts, Internet access, copiers, fax machines, and the like. All such equipment and electronic resources are provided for your use in connection with your job and are the property of the Company. This policy applies to all equipment and electronic resources that are owned or leased by the Company, or that are used on or accessed from Company premises, equipment or resources. Personal Use Electronic equipment and resources are provided for Company business. However, CSSD does permit employees incidental personal use during non-working time unless directed otherwise by management. When using a computer for personal use, the employee must not use it in any illegal, obscene, offensive or intimidating manner, or any other manner that violates Company policy. Employees are also prohibited from using company computers or any other electronic resources for personal gain, to compete with the Company in any way, or for the advancement of individual views. Use of the Company's electronic resources must not interfere with your productivity, the productivity of any other employee, or the operation of the Company's technical resources. CSSD Employee Handbook Page 35 Personal use of the Company’s computers and other electronic resources is not private. For example, personal information or messages created, received, sent or stored in the Company's systems (email, texts, IMs, etc.) will be treated no differently from other business-related information and messages, and will be subject to monitoring and review without the employee's prior approval. Internet usage may also be accessed or monitored for any legitimate business reason. Confidential Information All employees have an obligation to safeguard the Company's confidential information, as well as the confidential information of its customers, clients, and others from disclosure. Among other precautions, employees must comply with the following rules: (1) always use assigned passwords; (2) do not access restricted databases or files without permission; (3) do not leave any messages containing confidential information visible while you are away from your work area; (4) always include a statement in e-mail messages containing any confidential or sensitive information, in all capital letters, at the top of the message "CONFIDENTIAL - UNAUTHORIZED USE OR DISCLOSURE IS STRICTLY PROHIBITED"; (5) never store confidential Company information on home computers or laptops without permission and no longer than is absolutely necessary for business purposes; (6) take all reasonable measures to prevent any portable computer or other equipment containing confidential information from being lost or stolen; and (7) immediately report any lost or stolen device that may contain confidential information. Using E-Mail, Text Messages, and Instant Messages (IMs) Because they seem informal, e-mails, texts, and IMs (collectively e-messages) are sometimes offhand, like a conversation, and not as carefully thought out as a letter or memorandum. However, like any other document, an e-message can later be used to indicate what an employee knew or felt. E-messages are also considered to be business records and may be used in investigations by government agencies or private litigation. And, e-messaging systems may create back-up tapes that make it relatively easy to recover "deleted" e-messages. Consequently, you should not create or send any e-message that contains any information that you would be embarrassed to have publicized within and outside the Company, or that you would not want to be discovered in a legal proceeding. Impermissible Uses Employees must not access, create, store, or transmit intimidating, offensive, hostile or otherwise inappropriate or unprofessional material or communications using any Company-provided electronic resources or equipment, or their own personal devices or resources while on Company premises, worktime, or at any time for Company business. The Company’s policies against harassment and discrimination apply fully to employees' use of all such equipment and resources, including the e-message systems, voicemail system, mobile phones and Internet access. Any violation of these policies is grounds for discipline up to and including immediate discharge. Employees may not disguise their identity when creating or transmitting messages or material on or from the Company’s electronic equipment or resources. Employees may not open e-mail messages, other than their own or those which the employee is authorized to open by their Supervisor or by the person to whom the e-mail is addressed. Employees may not fake or alter any e-mails, faxes or other communications. Employees should not copy or distribute copyrighted material (e.g., software, database files, documentation, articles, graphics files, and downloaded information) through the e-mail system or by any CSSD Employee Handbook Page 36 other means unless they have confirmed in advance from appropriate sources that the Company has the right to copy or distribute the material. Failure to observe a copyright may result in disciplinary action by the Company as well as legal action by the copyright owner. Monitoring Employee Use All Company-provided electronic equipment and resources, and all information transmitted, received or stored in these systems, is the property of the Company. Employees have no right to privacy in their use of Company-provided computers or other electronic equipment and resources, including the Internet, Cubic Intranet, e-mail, instant messaging, text messaging, voicemail, and facsimiles. The Company reserves the right to randomly monitor and inspect employees’ use of its electronic equipment and resources (including e-mail and Internet use, and any information that employees create, store, send or receive), at any time, with or without prior notice to the employee for any legitimate business reason. This includes, but is not limited to, when management has reason to believe the employee may be violating this or any other company policies. Note: Employees should have no expectation of privacy when using Company-provided or paid electronic equipment or resources. The Company’s right to monitor and inspect extends to any correspondence, files, or other data received or sent by an employee using Company equipment or resources. This includes anything that is received or sent via a service or resource paid for or established by the Company, or that the employee pays for or establishes on his or her own (e.g., personal Yahoo account) but for which the employee uses Companyprovided computers or other equipment. Inspection of incoming and outgoing e-messages or other data may occur at any time, with or without notice from the Company for any legitimate business reason. K. PERSONAL APPEARANCE Your personal appearance and manner of dress are an integral part of your job responsibilities. CSSD is customer service-oriented, and you are expected to dress and groom in a manner which reflects good taste, professionalism and which is appropriate for the type of work you perform. In certain jobs, specific dress regulations are required due to safety and health requirements. Professional/Administrative/Management Employees: Employees may wear a business casual wardrobe unless otherwise directed by management. expected that all employees will dress in professional attire when meeting clients and customers. It is The last day of the week is “Casual day” and appropriate denim jeans may be worn unless otherwise directed by management. Jeans must be clean and free of any rips or stains. Manufacturing Area Employees: Men and women should wear clothing suitable to the performance of their job (e.g., long pants, blue jeans). Clothing that is a safety hazard is not permitted in the manufacturing areas. Examples of items not acceptable in the manufacturing areas: Floppy-legged slacks Shoes with heels higher than 2 inches and open-toed shoes (*please note heels above two inches are not permitted even for those only passing through manufacturing areas) Dangling jewelry CSSD Employee Handbook Page 37 Loose clothing that could get caught in machinery Long hair worn loose (hair must be tied back) Examples of items not acceptable in any area: Mini length dresses or skirts Shorts Transparent, revealing or immodest clothing Halter, tank, spaghetti straps or bareback tops or dresses Undershirts without a covering shirt Flip flops or sandals Other distracting clothing All employees must comply with protective clothing as outlined in the Job Hazard Analysis for each department and/or as described within the Material Safety Data Sheets. L. VIOLENCE IN THE WORKPLACE CSSD is committed to providing a work environment free from violence. There will be zero tolerance for acts or threatened acts of violence, including hostile behavior, physical or verbal abuse, or possession or use of weapons of any kind on Company property or while conducting Company business. Should you engage in such acts, you will be subject to disciplinary action, up to and including, immediate termination of employment. You may also be subject to other civil or criminal liability. If you feel you have been subjected to behavior prohibited by this policy or witness or have knowledge of any actions that could be perceived as violent, you should report the incident immediately to your Supervisor and Human Resources. All complaints will be investigated promptly and appropriate action taken. You may also contact the appropriate law enforcement authorities if you have reason to believe there is an immediate threat to your safety and/or the safety of others. Reports or incidents warranting confidentiality will be handled appropriately and confidentiality will be maintained to the extent possible. You will not be retaliated against for reporting, in good faith, any conduct prohibited by this policy. M. PERFORMANCE REVIEWS CSSD employees receive performance reviews annually each fall. Employees are evaluated on the basis of a number of factors including job knowledge, quality of work, working relationships, interpersonal and communication skills, attendance/punctuality, time management, initiative, and ability to follow company policies. During the performance evaluation meeting with your supervisor, you will discuss performance standards, areas for improvement, and career development plans, if applicable. Performance goals and objectives for the coming year can also be established at that time. You are encouraged to discuss questions regarding performance and job expectations with your supervisor. The annual performance evaluation does not necessarily lead to a compensation adjustment. Compensation adjustments will depend upon how well you met your performance goals, prevailing business conditions and other relevant factors. CSSD Employee Handbook Page 38 N. CONFLICT OF INTEREST CSSD does not prohibit the employment of relatives, close friends, or others with whom the employee has a personal relationship; however, such individuals will not be placed in a working relationship where either would be in the other’s line of supervision. This avoids potential issues of concern such as conflicts of interest, security and/or morale problems. A personal relationship is defined as a relationship between individuals who have had a continuing relationship of a romantic or intimate nature. Supervisors are prohibited from dating subordinates and violation of this policy is grounds for discipline or termination. When a conflict or the potential for conflict arises because of a personal relationship between employees, even if there is no line of authority or reporting involved, the employees may be separated by reassignment or terminated from employment. If such personal relationship is established after employment, it is the responsibility and obligation of the employees involved to disclose the existence of the relationship to Human Resources. Human Resources, and the appropriate management staff, will decide who will be transferred to another position or, if necessary, terminated from employment. O. CHANGE OF EMPLOYEE INFORMATION You are responsible for reporting to Human Resources and Payroll any changes in your personal information such as your name, address, email address, telephone number, withholding status, or deductions. Changes should be made in writing and forwarded to Human Resources as soon as possible. Changes in dependent status for insurance purposes should be reported to the HR Department. Beneficiary changes should also be made through HR. This information is necessary to keep personnel and benefits records up-to-date, and to be of help to you in the case of an emergency. P. PERSONNEL FILES The Human Resources Department maintains a personnel file for every employee. These files are confidential and are the property of CSSD. If you wish to review your personnel file, you should contact Human Resources to schedule an appointment. Q. ARBITRATION It is CSSD’s policy to resolve disputes which involve more serious matters between employees and the Company through the process of binding arbitration. We believe that it is in all parties’ best interests to have a quick, fair and cost effective method of dispute resolution available for such matters. At the time of hire, employees sign an Arbitration Agreement. This Agreement requires that disputes that arise between CSSD and its employees, including all contract, tort, discrimination, harassment and statutory claims, shall be resolved exclusively by binding arbitration. R. POST RESIGNATION/TERMINATION PROCEDURES Terminations may be classified under two main categories: VOLUNTARY TERMINATION This includes, but is not limited to: • Notification to management indicating your intent to leave voluntarily CSSD Employee Handbook Page 39 • Unexcused and unreported absences of three consecutive workdays • Failure to return within three days from the end of an approved leave of absence • Retirement INVOLUNTARY TERMINATION This includes, but is not limited to: • Termination for violation of company policy • Layoff due to business reorganization or a reduction in force S. REEMPLOYMENT/ADJUSTED SERVICE DATE You may be considered for reemployment only if you leave CSSD in good standing. If you qualify at the time of rehire, an adjusted service date for purposes of vacation accrual and service awards may be established. T. EXIT INTERVIEWS Departing employees are generally asked by Human Resources to complete an exit interview form on or near the last day of employment. The form provides an opportunity for departing employees to communicate their views on working with the company. We appreciate this feedback since it can be extremely helpful in continuing and/or improving upon our current company policies and practices. CSSD Employee Handbook Page 40 VII. SAFETY GUIDELINES A. SAFETY Safety is every employee’s responsibility. Your job, physical well being, and the well being of your fellow employees are dependent on safe work habits. Ensuring a safe working environment and protecting against occupational injury or illness requires a team effort that includes you, your supervisor and upper management. It is the responsibility of each employee to perform his or her job in a reasonably safe manner. If you detect any unsafe condition or practice, please bring it to the attention of your supervisor immediately. To maintain a safe place to work, safety rules have been prepared and published. The Corporate Risk Management Department also helps ensure that safety is a continuing priority. A written Hazard Communication Program has been established to ensure that employees are aware of the hazards associated with chemical usage in the workplace. This Program includes: training classes in the safe use, storage and disposal of chemicals, hazardous substance department inventories, tests for potential chemical exposure, proper labeling of hazardous substance containers, and use and understanding of Material Safety Data Sheets. Timely reporting of chemical spills or other safety concerns to your immediate supervisor or to the Risk Management Department is necessary to ensure compliance with federal and state safety, and environmental laws and regulations. It is important that employees use safety equipment such as machine guards and goggles, use tools and equipment properly, and report accidents (including minor injuries) promptly. Equally important are correct lifting techniques, proper care of equipment, proper use of compressed air and chemicals, proper personal conduct in work spaces, and wearing appropriate clothing, hand and/or footwear. Violations of safety rules can be grounds for discipline, up to and including possible termination. Personnel assigned to a field site shall adhere to safety procedures as set forth by the Risk Management Department and applicable site safety rules. B. SECURITY Many of CSSD’s contracts with the United States Department of Defense require that CSSD create, receive and transmit classified information. The Department of Defense and public law establish procedures governing the handling of classified information with which CSSD and its employees are obliged to comply. As an employee, it is important to maintain a constant awareness of these regulations. To assist you in becoming familiar with security requirements, you may receive excerpts from the National Industrial Security Program Operating Manual (NISPOM) and the CSSD Security Policies and Procedures Manual (SPP). If you have any questions on security issues, you can contact the Corporate Security Department. C. PERSONAL PROPERTY CSSD does not assume responsibility for the loss or theft of personal property. All found articles should be turned in immediately to Human Resources. Upon proper identification, employees may claim lost articles. CSSD Employee Handbook Page 41
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