Welcome

Congratulations on joining our winning team! We are glad you selected RC Willey as your employer of choice. With our successful business model, we have a tremendous opportunity to promote the growth and development of enthusiastic, hardworking associates.

RC Willey was founded on the principles of integrity, hard work, and satisfying each customer. Our commitment to long-term relationships with our vendors, associates and customers is a hallmark of the RC Willey way of doing business. Those who visit our company and compare us with other retailers are impressed with our beautiful and exciting showrooms, facilities, and the quality of our people.

RC Willey has a dominant market share in all product categories and a national reputation for being a premier retailer. We are an aggressive promoter, have high sales volume, and expect integrity in all that we do.

Our mission statement is: “To be America's home store of choice by listening to our customers and then providing solutions to their needs. We accomplish this by having superior products and by having every RC Willey team member contribute to a positive and memorable customer experience. We strive to make a difference in the communities in which we live and work.” We are firmly committed to become better at everything we do. This is a key factor to our past success and our bright hope in our future.

It has taken over 85 years of commitment and hard work to reach the enviable position we have in the marketplace. We’ve had an impressive history and now you have been selected to be part of our exciting future. You are now part of something very special and we wish you the very best in your new career here at RC Willey Home Furnishings.

Introduction

This associate handbook is intended only as a helpful guide. Neither this handbook nor any of its provisions are intended to bind RC Willey in any way beyond its sole obligation to pay wages earned and benefits vested through the associate’s last day worked. This handbook, its policies and guidelines (and any other policies which may be issued from time to time), do not create a contract (either express or implied) respecting any aspect of your employment (including but not limited to the procedures, terms, conditions, or duration of employment), nor do they create any other obligation or liability on the company.

Employment at RC Willey is on an at-will basis, which means that your employment may be terminated by you or by RC Willey at any time, for any reason or for no reason, without notice and without any procedure or formality. The at-will nature of your employment is not affected by any of the guidelines contained in this handbook and cannot be changed by any oral promise or by any other writing unless duly executed by RC Willey’s Chief Executive Officer. These guidelines supersede all prior company guidelines and procedures, and all statements or commitments, oral or written, concerning the terms and conditions of your employment with RC Willey. RC Willey reserves the right to unilaterally alter, amend, replace, revoke, or deviate from any policy, practice, or procedure without prior notice.

The History of RC Willey

In 1932, while living in Syracuse, Utah, Rufus Call (RC) Willey and his wife, Helen, started the RC Willey and Son Appliance Company to supplement their family’s income. He sold Hotpoint appliances to friends, neighbors and eventually door-to-door to the farmers throughout Davis and Weber Counties, located in northern Utah.

With a lot of hard work and persistence, RC's part-time business began to grow. He was so successful that he left his job as a manager at a local utility company and set out in his red pickup truck to sell appliances full-time.

For 18 years, RC sold appliances door-to-door and developed a reputation for offering great values to his customers. In 1950, RC built a small 20 x 30 foot cinder block building for a showroom next to his home in Syracuse. Bill Child, RC’s son-in-law, started working part-time with RC Willey in 1952. Business was good and everything was going well until RC's untimely death in 1954, due to cancer. Helen Willey then asked Bill to run the business.

Bill had recently finished college with a degree in history and had planned to teach at a local junior high school. Having some familiarity with the business, he accepted the challenge and started his career in the Home Furnishings industry. He began with the small cinder block building, one full-time associate and a nine-party telephone line. His product line consisted mainly of Hotpoint appliances and Zenith televisions.

Shortly after he took over the business, Bill brought his younger brother Sheldon into the company. Together they worked and built a reputation for giving their customers honest value consisting of quality merchandise, the best prices in town and good service. Today, Bill is currently the Chairman of the Board and Sheldon has retired from the company.

RC Willey was sold to Berkshire Hathaway in May of 1995. Warren Buffet, Berkshire Hathaway’s Chairman of the Board, believes in buying great companies with solid leadership and allowing them to continue conducting business in the same manner that made them successful.

In February 2001, Scott Hymas was named the Chief Executive Officer, Jeff Child as President and Curtis Child as Chief Financial Officer. RC Willey has continued to increase its market share and expand into other states. With a firm commitment to the principles that made the company an industry powerhouse, RC Willey’s management team continues to direct the growth of the company into other markets and new business opportunities.

The company’s unique model for doing business has been very successful in each new market we have entered. With stores now in Utah, Idaho, Nevada and California, RC Willey has grown from humble beginnings to become a premier leader in the Home Furnishings industry. Our future looks brighter today than ever before!

Mission Statement

“To be America's home store of choice by listening to our customers and then providing solutions to their needs. We accomplish this by having superior products and by having every RC Willey team member contribute to a positive and memorable customer experience. We strive to make a difference in the communities in which we live and work.”

Satisfaction Guarantee

Every RC Willey professional works tirelessly to ensure customers are completely satisfied with their experience and purchases at RC Willey. And if not, we'll do everything in our power to make it right—that's the RC Willey Way and our Customer Satisfaction Guarantee.

The Willey Way

The Willey Way is a philosophy of doing business that is based on creating a positive experience at every opportunity, every day. The Willey Way applies to our interactions with everyone we come in contact with; customers, co-workers and vendors.

1. Smile!
2. Be Enthusiastic!
   Be positive, look people in the eye and speak up.
3. Be Knowledgeable!
   Be smart on all aspects of our products, services and your specific responsibilities.
4. Take Ownership!
   Make commitments, follow through, keep customers informed of progress and "own the problem" until it is solved.
5. Empathize!
   Listen and strive to understand customer’s desires, needs, concerns and expectations.
6. Show Respect!
   Do not speak poorly of customers, associates, partners or products.
7. Satisfy!
   Exceed customer expectations and get to "yes."
8. Contribute!
   Proactively suggest ideas to make the way we do business better for customers, suppliers, partners and associates alike.
9. Strive For Success!
   The better you perform, the better the company performs- which benefits us all.
10. Thanks! Your job is not done until you say "Thank you for shopping at RC Willey" and ask "Is there anything else I can do for you?"

We expect all of our associates to make the Willey Way principles part of their behavior while they interact with others here at RC Willey.

We also expect all of our associates to treat each customer with a commitment to follow the company’s mission statement and satisfaction guarantee.

Honesty Policy

We believe that honesty and integrity are very important in all aspects of our business. We expect and require our management team to always strive to be fair, honest, and have integrity in all of our business dealings with suppliers, customers and associates.

This has always been the way we have conducted business. We have built an excellent reputation in the industry for being fair and honest, with character above reproach. We operate in this manner because of our deep conviction that it is the only proper code of ethics one should follow. Therefore, we expect all associates to uphold this tradition and standard of fairness, honesty, and integrity.

Unfortunately, there have been associates that have taken small amounts of money, supplies or even merchandise from another associate or the company and somehow justified their actions. When something is taken without permission, it is theft and will be treated as such. Working less time than you are paid for is also considered theft. We do not understand why anyone would steal from a co-worker or from the company that provides a living for associates and their families. Theft will not be tolerated, and in addition to termination of employment, violators may be prosecuted to the full extent of the law.

We all have a responsibility to our fellow associates and to the company when we become aware of dishonesty or theft. No one wants to work with a dishonest person or a thief. If you notice any inappropriate conduct, you should notify the Security and Loss Prevention Representative in your area or the Corporate Loss Prevention Manager directly at (801) 461-3985. We will make every effort to keep the information confidential. You may also qualify to receive a cash reward if the reported theft meets established criteria.

You are all part of our great team and share in the profits of our company. When someone steals from RC Willey, it affects the profit sharing for each of us. A thief hurts us all! Let’s work together to uphold honesty and integrity in all aspects of our company.

RC Willey Benefit Program

RC Willey offers a generous and complete benefits package that consists of the following (more detailed information can also be found in the Benefits section on our company’s website):

• Health Insurance benefits that include medical, dental and vision insurance.
• RC Willey pays a very high percentage of the medical and dental premiums.
• Both of our medical and dental plans provide peace of mind for our associates by paying for preventive screenings and providing a safety net for unforeseen healthcare needs.
• Healthcare funding and reimbursement options that include Health Savings Accounts, Flexible Spending Accounts, Limited Purpose Flexible Spending Accounts, and Dependent Care Flexible Spending Accounts, which help associates save money with company contributions or savings with tax favored accounts.
• Company-paid term life and disability insurance, which includes associate, spouse, and children basic term life, basic accidental death & dismemberment, and long-term disability.
• Additional voluntary insurance options include supplemental life insurance, and short-term disability.
• Company-paid wellness and Employee Assistance Programs that include associate and spouse wellness initiatives.
• We also help associates prepare for retirement by offering a 401(k) plan, which has a generous company match.
• Associates may receive a portion of the company’s profits through annual profit sharing.
• RC Willey offers a generous associate purchase plan that gives significant discounts on the products we sell.

Eligibility for Insurance Coverage

• All full-time associates are eligible for insurance effective the 1st of the month following 60 days of employment.
• Associates that experience a status change from part-time or on-call to full-time status will be eligible for insurance coverage effective the 1st of the month following 60 days from date of new status change.
• If an associate does not enroll during the initial new hire enrollment period they will need to wait until open enrollment, or until a qualifying life event (must notify human resources within 30 days).
• An associate can add his/her spouse and children (up to age 26) to insurance.
• All benefit eligible associates must elect or decline benefits within 30 days of hire or change of status.
• Open enrollment changes and elections will be effective October 1st of each year.
• Associates cannot cancel medical, dental, or vision benefit elections during the plan year unless they experience a qualifying life event.

Medical and Dental Insurance

All full-time associates are eligible for our group health and dental insurance. Associates who enroll will begin coverage on the 1st day of month following 60 days of employment (or change of status).

The associate and RC Willey share the cost of the monthly premiums, with RC Willey paying the largest portion.

Eligibility for Medical Insurance

New Hires:

• Associates do not have coverage as of their date of hire.
• If associates are hired to work full-time, associates and their dependents (including children under age 26) will be eligible for medical insurance as of the 1st of the month following 60 days of employment.
• In order to maintain medical benefits, associates must average 130 hours per month and work at least 1560 hours over a period of 12 months (as described in more detail in the ACA measurement policy contained in this handbook).

Current Associates:

• RC Willey will track associates’ hours over a 12-month period each year (August 1st through July 31st). Associates and their dependents (including children under age 26) will be eligible for medical benefits if, at the end of that period, they have worked on average at least 130 hours per month.
• This means associates must work at least 1560 hours in those 12 months.
• If associates are eligible and enroll, their medical benefits will be effective for 12 months starting October 1st through September 30th.
• This process will repeat each year.

If associates have questions, or if they would like a copy of the full eligibility and measurement guidelines, please contact the Human Resources department or see the full policy at the end of this handbook.

The benefit plan year begins October 1st and ends September 30th.

Associates leaving the company will remain enrolled on the health insurance plans they have elected through their last day of employment.

The terms of all benefit programs are established and governed by the respective policy or plan. The information is intended only to identify the general benefits available, but does not establish any of the terms or conditions of benefit programs. Any specific questions regarding the terms and conditions of benefit programs should be referred to the Human Resources department.

Qualifying Life Events

If associates have a qualifying life event, they have 30 days from the time of the event to change or update insurance benefits. Associates will be required to provide verification to add or remove coverage.

You can obtain/change coverage or add/remove your dependents for the following reasons:

• Marriage
• Divorce, legal separation or annulment
• Birth/adoption, or placement for adoption
• Death of a spouse or dependent
• Loss of other health care coverage
• Health benefits become available through spouse’s employer or spouse’s open enrollment

Changes not made during the 30-day period will be postponed until open enrollment (Medicare, Medicaid, and CHIP have a 60-day period).

Rehire Eligibility Rules

With a break in service (not employed at RC Willey) of:

• 4 weeks or less
• Treat as an ongoing associate, if hours gone are less than hours of service prior to termination then associate would qualify for benefits effective 1st of the month following rehire date.
• More than 4 weeks and up to 13 weeks
• If hours gone are less than hours of service prior to termination, then associate would qualify for benefits effective 1st of the month following rehire date.
• If hours of break in service are more than hours of service worked prior to termination then associate is eligible for benefits 1st of the month following 60 days of employment.
• More than 13 weeks
• Considered a new hire, eligible for benefits effective 1st of the month following 60 days of employment.

Flexible Spending Account (Section 125 Plan)

RC Willey offers a Flexible Spending Account. This plan allows associates to pay for qualified healthcare expenses and dependent care expenses with pre-tax dollars. Associates do not need to participate in RC Willey’s medical insurance plan to take advantage of the Flexible Spending Account. Associates may enroll in the flexible spending plan as a new hire or during open enrollment.

Company-Paid Life Insurance

All full-time associates are automatically enrolled in the company-paid life insurance and accidental death & dismemberment plan. This policy will pay up to one times the associate’s annual earnings. Associates also have a policy on their spouse and dependent children (up to age 26).

Company-Paid Long-Term Disability Insurance

RC Willey provides all full-time associates with a long-term disability insurance policy. There is no cost to the employee for this coverage. Associates are automatically enrolled. If associates become disabled for more than 90-days, they may receive a percentage of their salary each month.

Other Benefits

A variety of other benefits are available for purchase, including vision coverage, supplemental life insurance and short-term disability.

Information about all insurance benefits is on the company’s website. All benefits are subject to change or may be discontinued. Please see plan documents for full benefit detail. Associates should look for updates on the corporate portal at www.rcwilley.com/hr.

Employee Assistance Program (EAP)

The Employee Assistance Program (EAP) is a benefit provided at no cost to associates and their dependents. The EAP service provides immediate help on how to handle many of life’s challenges, counseling sessions when needed, and educational materials concerning work/life balance, all within a confidential environment.

Assistance can be provided to help deal with such issues as:

• Marital and Family Disputes
• Legal Problems
• Substance Abuse
• Stress Management
• Depression
• Financial Difficulties

An associate with questions or concerns about substance dependency or abuse is encouraged to call the EAP and Human Resources. In order for the associate to avoid disciplinary action, the associate must come forward prior to being notified of selection for a drug or alcohol test, a work related accident, or must initiate the discussion related to the dependency or abuse.

Any costs associated with extended use of the EAP will be the responsibility of the associate. 

Information about the Employee Assistance program is available on the Corporate Portal.

Personal Information Changes

When an associate has a change of name, address, telephone number, marital status, beneficiary, number of dependents or other status changes, it is the associate’s responsibility to contact the Human Resources department to ensure the accuracy of the associate’s records and to make necessary benefit changes within 30 days.

COBRA

The Federal Consolidated Omnibus Budget Reconciliation Act (“COBRA”) gives associates and their qualified beneficiaries the opportunity to continue health insurance coverage under RC Willey’s group health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are: reduction in hours of employment, resignation, termination of employment, or death of an associate; an associate’s divorce or legal separation; and a dependent child no longer meeting eligibility requirements.

Under COBRA, the associate/beneficiary pays the full cost of coverage at RC Willey’s group rates plus an administration fee. RC Willey provides each eligible associate with a written notice describing rights granted under COBRA when the associate becomes eligible for continued coverage. The notice contains important information about the associate’s rights and obligations.

HIPAA Privacy Policy

RC Willey complies with the Health Insurance Portability and Accountability Act (HIPAA) and has implemented the following Privacy Policy to define what personal health information our company has and how it will be handled and protected.

• Protected Health Information (PHI) is defined as “any individually identifiable health information that is communicated, stored or transmitted in any form.”
  • This includes: specific health information given to health care providers, insurance companies, receipts for services rendered, information for reimbursement of medical expenses, etc.
  • This does not include: information received as part of an application for an FMLA leave, information communicated to a supervisor indicating why an associate cannot come to work, DOT required medical exams and information obtained to process and manage a worker’s compensation claim.
• Our policy is to receive minimal PHI when circumstances require for management of the plan and reimbursement of qualified medical expenses.
• Our privacy specialist is the Director of Human Resources.
• Requests for reimbursements through the Flexible Spending Accounts will only be handled by those who have been HIPAA trained and who are required for processing the reimbursement. The records (digital and paper) will be secured from and unavailable to associates that are not required to handle and process the requests for reimbursements.
• Associates have all of the rights regarding their PHI afforded them under the HIPAA regulations.
• Other than those mentioned above, no other associate is allowed to have any associate’s PHI without specific written authorization. Any associate obtaining or using any unauthorized PHI will be subject to disciplinary action up to and including termination.

Combined Retirement Investment Savings Plan (CRISP)

The company sponsors a retirement plan designed to assist associates in their retirement.

401(k) Plan

In order to help associates initiate personal responsibility for their financial future, RC Willey sponsors a 401(k) plan. The plan allows associates to make strategic decisions on available investment funds. The company will also match a portion of the money deferred by associates. The interest and earnings, if any, from your funds will be credited to your account.

Eligibility: Associates must be 21 years of age and may enroll after 6 months of employment. Any contributions will be made during the first pay period following enrollment.

When an associate becomes eligible to participate in the plan, they will be provided with an enrollment kit as well as instructions on how the plan works. For additional information regarding eligibility, vesting and general investment information contact the CRISP coordinator at (801) 461-3905.

A copy of the full plan document is available from the Chief Financial Officer. The summary plan description is intended only to summarize benefits. Should a discrepancy exist between this description and the full plan document, the plan document will prevail.

Receiving plan distributions while working for another Berkshire Hathaway company may cause you to incur adverse tax consequences.

Associates also have an option of contributing to a Roth 401(k) through our retirement savings plan. This allows associates to contribute after-tax dollars and then withdraw tax-free dollars from the account after retirement.

Profit Sharing Bonus

In the past, RC Willey paid a bonus to associates from the profits of the company and hopes to be able to do this in the future. We should all understand that each of our efforts directly affects the profitability of the company and also the possibility that a profit sharing bonus will be paid. The payment of a profit sharing bonus is at the full discretion of the Board of Directors. If a profit sharing bonus is paid, associates must be currently employed with RC Willey at the time of payment. RC Willey also takes into account the length of time an associate has been employed, the number of hours worked during the year, the associate’s grade level and other criteria as determined by the Board of Directors.

Years of Service Recognition

To recognize associates’ contribution to the company, at five year intervals associates may receive a Years of Service Recognition award in the form of a gift card. This is an additional way that RC Willey expresses gratitude for the commitment and effort associates give customers and fellow associates.

Retirement Policy

Qualifications

• The associate must be at least 59½ years of age.
• The associate must be retiring, not leaving the company for other employment.
• The associate must have been full time with RC Willey for at least the last 10 consecutive years.

As an expression of appreciation, RC Willey will give the retiring associate an RC Willey gift card.

Associate Purchase Plan

Eligibility

All full-time, part-time, and on-call associates are eligible to participate in the Associate Purchase Plan following 6 months of employment. Retired associates who meet the Retirement Policy guidelines may also be eligible for discounts. Associate purchase prices on most products will be figured automatically based on the associate’s hire date and employment status.

Length of service:	 3 months - 1 yr	 1+ - 5 yrs	 5+ yrs
 Floor Covering	 Cost+22%	 Cost+17%	 Cost+12%
 Appliance/Electronics	 Cost+22%	 Cost+12%	 Cost+7%
 Furniture	 Cost+32%	 Cost+17%	 Cost+12%

On-call associates receive the 3 month - 1 yr discounts. Retired Associates receive -Floor Covering = Cost + 20%, Appliance/Electronics = Cost + 15% and Furniture = Cost + 20%.

Warranty

• 14-day satisfaction guarantee does not apply to associate purchases.
• Associate purchases under this program include only the manufacturer’s warranty.

Warranty Cost (all eligible participants)

• Extended Warranty (Electronics/Appliances) - Retail less 30%
• Fabric Protection - Retail less 30%
• Leather Protection - Retail less 30%

The following information has been compiled as rules for associates to follow in making their purchases:

• Merchandise must be for the associate’s personal/household use only. It is not appropriate for parents to purchase merchandise from RC Willey through a son or daughter’s associate purchase discount, even if they live in the same household. The associate purchase plan is also not to be used for business interests (e.g. rental properties, other business ventures, etc.).
• Associates may make one gift purchase (one item or approved kit sku) for an immediate family member (parents, siblings, children) each calendar year. This gift must be paid for by the associate, not by the recipient.
• Merchandise purchased for special sales will not be available for associate purchase until after the sale.
• Associate purchase plan discounts do not apply to discounted items.
• No additional discounts, customer promotions, coupons, or special credit programs may be applied to an associate purchase, other than the 90-days same-as-cash policy.
• Inquiries, purchases, and will-call pick-ups are not to be done by associates on Saturdays or holidays.
• Associates should not seek product information from a sales associate without first identifying themselves as an RC Willey associate.
• Associates are not permitted to write up their own purchase ticket or pull their own merchandise.
• Associates must arrange for their own delivery or pay the current associate delivery charge for company delivery.
• Associates cannot use a credit card (other than their RCW credit card) to pay for discounted purchases under this plan.
• The Credit department must approve any credit purchase in advance.
• Associates who are not current or who have defaulted on credit purchases will not be permitted to participate in the associate purchase plan until their credit account is current. This includes cash and/or non-RC Willey credit purchases.
• Associates who misuse this plan may lose the privilege for a period of time, lose it altogether, and may be subject to disciplinary action up to and including termination.

Additional Benefits

After six months of employment, a 5% discount will be given to any immediate family member of an RC Willey Associate. An immediate family member would include: father, mother, sister, brother or child. The 5% discount does not apply to advertised leaders, computer products and most electronic games or accessories.

The Associate Purchase Plan is a privilege. Associates are expected to be courteous and to follow the rules listed above when making their purchases. Behavior or actions contrary to the rules listed will result in disciplinary action that may include loss of purchase privileges, repaying the discounted amount and/or disciplinary action up to and including termination.

Leave Time

PTO

Paid Time Off (PTO) is provided for all part-time and full-time associates. Associates should remember that the PTO leave bank is time off for several reasons, which include illness, rest and relaxation, vacations, etc.

For full-time associates, this paid leave will accrue at approximately 120 hours per year or 160 hours per year based on the length of time with the company.

PTO Accruals

Hourly, Commission/Piece Rate Associates (Sales, Delivery, Customer Service Technicians, Home Theater Installers and Estimators):

These associates begin accruing PTO on their first day of employment at the following rates:

• Zero to ten years of service equals approximately three weeks of PTO per year.
• Ten plus years of service equals approximately four weeks of PTO per year.

*Part time associates will be able to accrue up to one week of PTO.

Salary Associates (Store Sales Management included)

Salary associates begin accruing PTO on their first day of employment at the following rates:

• Zero to five years of service equals approximately three weeks of PTO per year.
• Five plus years of service equals approximately four weeks of PTO per year

Use

All who qualify may begin using their leave as soon as it accrues. PTO must be entered into the computer system and is then subject to approval by the supervisor before it is paid. Once associates accrue 120 or 160 hours (depending on the years of service), they will no longer accrue any additional PTO until they use some to reduce their balance.

PTO will be paid at the base rate established by the Company and will be paid at that rate when it is used. PTO leave is not considered hours worked and will not be counted in the calculation of overtime. Associates are eligible to receive payment for accrued but unused PTO leave upon separation of employment.

Guidelines for Using PTO

If an associate is unable to attend work due to unexpected illness or injury, the associate must notify their supervisor of the need for time off as soon as practicable in order to use PTO. When taking voluntary leave such as PTO for vacation type-time, the associate is required to give approximately two weeks of advance notice. Supervisors will do what they can to accommodate reasonable requests. Understandably, last minute requests for time off that are not injury or illness related will depend on staffing requirements at that time and may not be approved. PTO should not be used or approved for regularly scheduled days off work.

To receive holiday pay, associates must work their scheduled shift before and after the holiday unless scheduled PTO is approved and scheduled in advance.

Additional Long-Term Sick Leave (LTS)

Additional paid sick leave (if any) that was not moved to PTO during the conversion will be carried over and will be available for the associate to use. This carryover leave will be converted to Long Term Sick (LTS) and will not continue to accrue. The LTS leave is intended to be used for personal illness or for the care of an associate’s spouse, partner, dependents, parents, siblings, or others required by law.

The LTS leave rate will be paid at the sick rate prior to the conversion and will not change. LTS should be used wisely so that it will be available in case of serious illness. Therefore, this leave is not to be used for daily sick leave, but should be used for FMLA-type events or for illnesses that will generally last a week or longer. However, there may be unique circumstances that arise that may be taken into consideration.

If an associate wishes to use this leave, a form is available on the company portal that must be completed and submitted to their manager and to the Corporate Human Resource Department for approval. If approved, leave payments will be made through payroll on the following applicable pay date. LTS should not be used or approved for regularly scheduled days off work.

Additional Guidelines for Attendance and for Using Leave

If an associate is unable to come to work, they must contact their supervisor directly. It is unacceptable to contact a co-worker, have another person call for the associate, leave a message with the telephone operator or another person, or to ask the operator to notify the supervisor of the associates’ absence. If the associate is unable to arrive at work on time or needs to leave early because of an illness or other emergency, they must contact their supervisor directly and let them know of the need. As always, if an associate is sick, they should stay home and recuperate.

Leave must be earned before it is used. All leave must be approved before it is paid. An associate may not take leave that they have not accrued.

If an associate fails to contact their supervisor as soon as practicable, leave requested may not be approved and the associate may be subject to disciplinary action up to and including termination. Three consecutive days of not coming to work and not contacting an immediate supervisor may be considered a voluntary resignation. Any associate that is unable to report to their assigned work shift because of incarceration may be considered unexcused and may be subject to disciplinary action up to and including termination.

Company Paid Parental Leave

RC Willey is committed to maintaining a work culture that supports our associates in their efforts to balance their work responsibilities with the demands of personal and family life. Giving a parent additional paid time to recover from giving birth or to bond with their new child while adjusting to a new family situation can be a tremendous help and benefit to our associates and their families. With this in mind, RC Willey offers up to four weeks (160 hours) of paid Maternity Leave for mothers who give birth or to the person who is the primary caregiver of a newly adopted child under age 18. RC Willey offers up to two weeks (80 hours) of paid Paternity Leave for the father of a newborn or the non-primary caregiver of a newly adopted child under age 18. The actual hours of Maternity or Paternity leave is based on the average of weekly hours worked over the past 12 months. Paid Maternity or Paternity Leave is in addition to any eligible paid personal time off (PTO) and is paid at the associate’s PTO rate. All paid Maternity or Paternity Leave, PTO and LTS runs concurrently with any unpaid FMLA leave for which the associate may be eligible. The leave may be used in conjunction with available Long-Term sick leave where applicable.

To be eligible for the leave, associates must have been continuously employed with our company for one year and must have worked at least 1,250 hours in the 12-month period preceding the leave (similar to FMLA eligibility). Also, the associate must be the legal parent of a newborn or newly adopted child who is under the age of 18. A legal parent is one whose name appears on the child’s birth certificate, a legal document establishing paternity, or a legal document establishing adoption, which may be requested to establish leave eligibility.

 

Maternity/Paternity Leave must be completed within 90 days from the date of birth or adoption and must be taken in at least one week increments with advanced approval and based on business needs. Multiple births or adoptions (such as the birth or adoption of twins) does not increase the length of the leave. If both parents are employed by RC Willey, both are eligible to apply for this leave.

An associate must give his or her supervisor at least 30 calendar days advanced notice if the need for leave is foreseeable. To apply for this leave, the associate must complete the appropriate Leave Request Form found on the RC Willey Corporate Portal and submit it to Human Resources for review. All leaves must be approved by Human Resources before leave begins. Associates do not accrue any additional leave benefits while using this leave. Associates may consult with Human Resources for assistance when planning this leave.

 

Holidays

All full-time associates (with the exception of commission sales associates) are eligible for holiday pay for the following holidays:

• New Year's Day 
• Memorial Day 
• Independence Day 
• Pioneer Day (Nevada- Nevada Day- Approx. October 31st)
• Labor Day
• Thanksgiving Day*
• Christmas Day*

* Stores will be closed on these holidays

If a full-time associate is required to work on one of the above holidays, associates will be paid for eight hours of holiday pay plus their regular pay for the actual number of hours worked that day. An associate must be employed the day before and the day after the holiday. To handle the increase in business, work schedules may be adjusted during the week of a holiday.

Part-time associates will be paid holiday pay of up to 6 hours, for each hour worked on Memorial Day and Labor Day (in addition to their regular earnings for that day).

Commission sales associates working a holiday may schedule another day off with their supervisor within 30 days of the holiday.

Salary associates that work on a holiday may arrange with their supervisor for another day off to be taken within 30 days of the holiday.

Associates who are on an unpaid leave (medical or personal) during a holiday are not eligible for holiday pay.

Family and Medical Leave

RC Willey complies with the Family and Medical Leave Act (FMLA) which provides unpaid leave and protects most associates’ jobs and benefits in the event of a covered medical or family circumstance that requires the associate to take time off from work.

Eligibility

Associates are eligible for family and medical leave if they have been employed at least 12 months and have worked at least 1,250 hours in the 12-month period preceding the leave. Additionally, the associate must work at a company facility where at least 50 associates are employed by the company within 75 miles of the facility.

Circumstances Permitting Family and Medical Leave

The company will provide up to 12 weeks of unpaid leave during a rolling 12 month period after the eligibility has been met for any of the following reasons:

• For incapacity due to pregnancy, prenatal medical care or child birth.
• To care for the associate’s child after birth, placement for adoption or foster care.
• To care for the associate’s spouse, son, daughter or parent, who has a serious health condition.
• Incapacity of the associate due to a serious health condition.
• For certain qualifying needs in support of a contingency operation and/or call to active duty or deployment to a foreign country.
• To care for a covered service member (spouse, child, parent or next of kin) with a serious injury or illness. Up to 26 weeks of leave in a single 12 month period are available for this type of leave.

A “serious health condition” is an illness, injury, impairment, or a physical or mental condition that involves either inpatient care or continuing treatment by a health care provider.

Continuing treatment is a period of incapacity of more than 3 consecutive calendar days with at least two visits to a health care provider or one visit and a regimen of continuing treatment, or incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may also meet the definition.

FMLA leaves may be limited to the duration of the serious health condition up to a maximum of 12 weeks. The company will require a physician to certify the necessity of a medical leave and the company may require a second opinion concerning the need for a medical leave. The “Medical Certification” required for an FMLA leave should be returned as soon as possible, but must be returned no later than 15 days after the medical certification form is provided. If the associate fails to return a requested certification, he/she may lose protection under the FMLA and therefore be considered absent without leave and may be subject to disciplinary action up to and including termination. When the company requires a second opinion, it will be obtained from an independent provider at the company’s expense. The company may also require re-certification as necessary.

Intermittent or reduced schedule leave may be available if the health care provider certifies that it is medically necessary for a serious health condition. Whenever possible, medical treatments should be scheduled so as not to disrupt company operations. The need for intermittent leave may require temporary transfer to another job with equivalent pay and benefits. Leave due to qualifying exigencies (see Qualifying Exigency Leave below for specific circumstances) may also be taken on an intermittent basis. Intermittent or reduced schedule leave may not be taken to care for the associate’s child after birth, placement for adoption or foster care (unless there is a serious, certified medical condition).

A 30-day advance notice of a family and medical leave is required. If the necessity for leave is unforeseeable then notice must be given as soon as possible and no later than two business days after the need for leave becomes known to the associate.

Upon completion of the leave, the associate will be allowed to return to the same position held when the leave commenced or to an equivalent position with equivalent pay, benefits and other terms and conditions of employment.

During a family or medical leave, the associate will not suffer loss of insurance benefits. The associate will be required to pay his/her share of the monthly insurance premiums that are normally deducted from paychecks and will be due on the first day of each month for which coverage is effective.

Associates taking a family or medical leave are required to use all accrued sick and accrued vacation leave as the initial part of the 12-week period. Any absence related to a worker’s compensation injury will be treated as an FMLA leave if the injury qualified for coverage under the FMLA. Associates on an FMLA leave due to a worker’s compensation injury may use their accrued sick and accrued vacation leave but are not required to do so. Any unused sick or vacation leave cannot be added to extend the 12-week leave period. Sick and vacation time will not accrue during an FMLA leave.

If a husband and wife both work for the company and wish to take a qualified leave, they may only take a combined total of 12 weeks of leave (26 weeks if caring for a covered service member) if the leave is taken for birth of the associate's child or to care for the child after birth or placement with the associate for adoption or foster care, or to care for the associate's parent with a serious health condition.

Associates are not permitted to work for another employer during a family and medical leave. Any exception must be approved in writing in advance by Human Resources.

Qualifying Exigency Leave

Eligible associates with a spouse, son, daughter or parent on active duty or call to active duty status in the Regular Armed Forces, National Guard or Reserves in support of a contingency operation or deployment to a foreign country may use their 12-week leave to address certain “qualifying exigency” needs. Qualifying exigencies may include short notice deployment, attending certain military events, childcare and school activities, addressing certain financial and legal arrangements, attending certain counseling sessions, rest and recuperation and attending post-deployment activities.

Military Caregiver Leave

The Military Caregiver Leave also permits eligible associates to take up to 26 weeks of leave to care for a covered service member during a single 12 month period who has a serious injury or illness incurred in the line of duty or to care for an injury or illness that existed before the beginning of active duty and was aggravated by service in the line of duty.

To apply for a family or medical leave, the associate or a close family member (if the associate is incapacitated) must fill out the Family & Medical Leave Request form and follow the noted procedures.

Returning to Work

The company requires a doctor’s release before an associate will be allowed to return to work when the leave was due to a medical condition. 

If an associate fails to return to work when the leave has ended, the associate will be considered as having voluntarily resigned from employment effective the date notification is received that the associate will not return to work. An associate who returns to work for at least 30 calendar days is considered to have “returned to work.” The associate is expected to repay any unpaid premiums. Any insurance coverage past that time may be obtained through COBRA.

Upon return to work, the associate will normally be reinstated to the same job or a position with equivalent pay, benefits and working conditions.

FMLA leave is not available for certain “key employees” of the company.

Personal Leave

Full-time associates who have been employed for at least 90 days may apply for an unpaid leave of absence for personal reasons. Requests for personal leave will require documentation as to the reason for the leave request. Generally, leave requests are granted for health or education-related reasons. RC Willey may grant such requests at its discretion.

The supervisor, department manager and the Human Resource department must approve personal leaves in advance. Such leaves are granted for a maximum of eight weeks. The exact length of an associate's leave will be determined by the individuals listed above.

Upon an associate's return from a personal leave, RC Willey will attempt to place the associate in the same or comparable position in the company if one is available with the wage appropriate for that position. An associate who is granted a personal leave does not have a guarantee of reinstatement when the leave is concluded.

Associates on a personal leave must use earned vacation time during their absence. Associates must use accrued sick and vacation leave when the personal leave is for medical reasons. Unused vacation and sick time will be held but not accrued during a personal leave of absence.

Associates may elect to continue insurance coverage while on a personal leave and will be responsible for paying their portion of the insurance premium. Premiums for coverage elected during a personal leave are due at the beginning of each month for which the coverage is in effect. Failure to pay their portion of insurance premiums within the 30-day grace period may cause their benefits to terminate.

Associates are not permitted to work for another employer during a personal leave.

If an associate fails to return to work when the leave has ended, the associate will be considered as having voluntarily resigned from employment effective the latter of the last day of the leave or the date notification is received that the associate will not return to work.

Bereavement Leave

Full-time associates must be employed for at least 90 days to be eligible for bereavement leave. For the death of immediate family members (spouse, father/mother, father/mother-in-law, son/daughter, son/daughter-in-law, brother/sister), full associates may take up to three days off for bereavement with pay. Compensation will be made at the associate's hourly rate with the supervisor's approval. Commission associates will be reimbursed at the curret PTO rate. Any additional time taken for bereavement for immediate family members may be charged against accrued sick or vacation leave. When entering leave for bereavement on the computer, please indicate the relation of the deceased person.

In the event of the death of an aunt/uncle, brother/sister in-law, grandparent or grandchild full-time associates are eligible to use one day of bereavement pay.

Military Leave

Associates who have short-term (no longer than two weeks) military reserve training obligations will be given the appropriate amount of time off without pay to perform such duty. Associates may use earned sick or vacation leave during that time. Military leave requests must be approved prior to the leave whenever possible.

Associates who are absent on military leave for a longer period will be entitled to reemployment upon completion of service consistent with the requirements of the Uniformed Services Employment and Reemployment Rights Act. Associates requiring military leave must provide advance notice unless precluded by military necessity and may be asked to provide a copy of their orders.

Jury Duty

Associates who are required to serve jury duty should notify their supervisors immediately. Associates will be granted a limited leave of absence of up to 20 days per calendar year to perform jury duty.

During such leaves, associates will be paid their regular wage minus any compensation received from the court. To receive payment for regular wages, associates must send a copy of the letter from the court indicating service dates and compensation received to the payroll department. Regular wage for commission associates will be determined by averaging their income for the previous year. Associates should keep their check from the court, send a copy to payroll and we will issue them a check for the difference. Paid time for jury duty will only be granted for hours paid by the court plus reasonable travel time to and from court.

Any days spent on jury duty in excess of 20 days per year will be treated the same as associates on an approved family and medical leave, with the exception that associates who serve on jury duty are not subject to the 12-week leave restriction applicable to family and medical leave.

Administrative Policies

Dress and Appearance

Every associate has the opportunity and responsibility to convey a professional and distinguishable image while at work. It is essential for the success of our company to appeal to customers in a way that makes them very comfortable doing business with us. The appearance (clothing, hair, and jewelry) of our associates is part of the customer’s experience in our stores and warehouses. When an associates’ appearance is professional at work, surveys indicate that a high percentage of customers will perceive them to be more knowledgeable about their job and more capable of delivering quality products and services than if they do not have a professional appearance.

All associates need to be easily distinguished and identified by our customers. Therefore, associates that work in our stores should wear RC Willey name badges and dress professionally. Some examples of appropriate clothing would include sport coats, dresses, slacks and long sleeve button down dress shirts. Ties are optional in most situations. RC Willey attire, in some departments, is also appropriate. Associates with customer contact (regardless of their department) are expected to maintain professional and conservative hair styles.

Warehouse associates are expected to wear RC Willey clothing or if approved by their location’s management, attire that presents a well-groomed appearance and appropriate for their work duties. Hair styles may vary from that expected for those with customer contact, while still keeping their appearance well-groomed and appropriate for the work setting.

Examples of inappropriate clothing might include workout-type attire, clothing that is revealing, tight or above-the-knee, sleeveless tops, short sleeve dress/polo shirts and denim/Levi’s (denim or polo shirts are okay in some positions with management approval), and flip flops.

Any hair styles, tattoos, or skin piercing jewelry that may be considered extreme or offensive are not appropriate and must be covered or removed.

Other styles of dress and appearance not noted above may be considered extreme or unprofessional by company supervisors and managers and therefore inappropriate while at work.

We appreciate your attention to this important aspect of our business. Immediate supervisors are responsible to interpret and enforce this policy as necessary. If an associate’s appearance is not appropriate, they will be asked to “clock out” to go home and correct it before returning to work. Associates will not be paid for this time. Repeat offenses of this policy may subject an associate to performance counseling and disciplinary action up to and including termination.

Smoking

For the health, comfort and safety of all associates and customers, RC Willey prohibits smoking (vapor/electronic) or chewing tobacco inside any of our facilities or vehicles, in the customers’ view, or within 25 feet of any RC Willey facility entrance, exit, open window or air intake.

Telephones

The use of telephones while at work should be confined to business calls. When possible, personal calls are to be made and received during break periods. Under no circumstances should personal long distance calls be charged to the company. Associates who have direct contact with customers and are not required to have a phone as part of their job should have personal cell phones put away while on duty.

The overhead paging system should be used to notify associates of important phone calls and inform sales associates of customers needing assistance. It is important to eliminate any unnecessary pages that could disrupt or interfere with these objectives.

Cellular Phones

Associates whose job responsibilities include regular or occasional driving and who are issued a cell phone for business use or who occasionally use their personal cell phone for company business are encouraged to not use their phone while driving. Safety must come before all other concerns. Regardless of the circumstances, including slow or stopped traffic, associates are required to pull off to the side of the road before placing or accepting a call, unless they have a hands-free device (in states where such devices are legal). Special care should be taken in situations where there is traffic, inclement weather or the associate is driving in an unfamiliar area.

When at least two associates are in the same vehicle, the passenger should handle any necessary phone calls whenever possible.

In situations where job responsibilities include regular driving and accepting of business calls, hands-free equipment (where approved by state law) must be used to facilitate the provisions of this policy.

Associates whose job responsibilities do not specifically include driving as an essential function are also expected to abide by the provisions above. Under no circumstances are associates allowed to place themselves or others at risk to fulfill business needs while driving.

Any function related to text messages, emails or similar communication are not allowed while driving.

Associates who are charged with traffic violations resulting from the use of their phone while driving will be solely responsible for all liabilities that result from such actions.

Computer, Communication and Information Systems

Computer, communication and information systems equipment is the property of and provided by RC Willey for business use. This would include but not be limited to: computer and telephone systems, RC Willey networks, all files hosted on the RC Willey server, RC Willey personal computers, voice mail, e-mail, company blogs, intranet and internet. RC Willey’s objective in providing these services, property and information to associates is to promote efficiency in the workplace by allowing associates to obtain and disseminate information to assist them in their jobs.

All associates have a responsibility to use all RC Willey computer, communication and information systems and resources in a professional, lawful, ethical, appropriate, and job-related manner. Any information related to co-workers or customers may only be viewed or used when required by a legitimate job-related purpose.

Incidental personal use of computer, communication and information systems is permitted with prior supervisory approval and if it does not: a) interfere with the user’s or any other associate’s job performance; b) have an undue effect on the computer or RC Willey’s performance; or c) violate this or any other RC Willey policy. However, excessive use of company computers, communication and information systems and resources for personal reasons is forbidden and could subject an associate to performance counseling and disciplinary action up to and including termination.

Associates accessing the internet and e-mail are only allowed to access business related sites and information. It is strictly prohibited to view or forward any inappropriate or offensive material.

Associates accessing the internet do so at their own risk and the company is not responsible for material viewed or downloaded by associates from the internet. Additionally, having an email address may lead to receipt of unsolicited e-mail containing offensive content. Please notify the company of content you believe violates the “Harassment-Free Environment” policy, below.

Licensing or downloading any material or software without first obtaining the express written permission from RC Willey is prohibited. Bypassing RC Willey’s computer network security by accessing the internet and/or personal e-mail accounts on an RC Willey device or computer directly by Wi-Fi or other means is strictly prohibited.

Without prior written permission from RC Willey, RC Willey's computer, communication and information system may not be used to view, disseminate, or store personal/commercial advertisements, solicitations, promotions, destructive code (e.g., viruses, trojan horse programs, etc.) or any other unauthorized materials.

Files obtained from sources outside RC Willey including storage devices brought from home, files downloaded from the internet, newsgroups, bulletin boards, or other online services, files attached to e-mail and files provided by customers or vendors, may contain dangerous computer viruses that may damage RC Willey’s computer network. Associates should never download files from the internet, accept e-mail attachments from outsiders, or use storage devices from non-RC Willey sources, without first scanning the material with RC Willey-approved virus checking software. If you suspect that a virus has been introduced into RC Willey’s network, notify RC Willey’s IS Department immediately.

Associates may not illegally copy material protected under copyright law or make that material available to others for copying. Each associate is responsible for complying with copyright law and applicable licenses that may apply to software, files, graphics, documents, messages and other material.

Associates should have no expectation of privacy in anything they create, store, send or receive using RC Willey's computer, communication and information systems including but not limited to, email, cell phone, text message, personal or company blogs and any other communication device and/or system. Associates are advised not to use these systems for personal communication they consider confidential. Associates should know that RC Willey may access and monitor any and all aspects of its computer, communication and information systems including, but not limited to, monitoring internet sites visited by associates, monitoring company and personal blogs containing information related to RC Willey, monitoring file downloads, voice mail messages, telephone conversations and all communications sent and received by associates, including text messages, pictures and videos sent via cell phones.

Inappropriate use of these systems for any reason may result in disciplinary action up to and including termination, as well as civil and/or criminal prosecution if applicable.

Confidentiality

It is absolutely essential that each associate maintain a high level of integrity in regards to keeping personal information confidential for customers and associates. Examples include: addresses, RC Willey account history, phone numbers, credit reports, passwords, etc. Personal information must be accessed and used for job related purposes only and never be given out over the phone or in person without proper authorization. Breach of confidentiality may result in disciplinary action up to and including termination.

In the course of employment, associates may receive or be exposed to information including, but not limited to, information regarding applicants, suppliers, vendors, margins, sales figures, advertising plans, profits and other information that RC Willey considers proprietary and confidential. Associates are required to maintain strict confidentiality with respect to information pertaining to all aspects of RC Willey’s business operations. Such information should not be discussed with anyone who does not have a legitimate business need for such information or anyone that does not work for RC Willey.

Associates may not remove or make copies of any confidential RC Willey records, reports or documents without prior management approval. Inappropriate disclosure of confidential information or removal of records may result in disciplinary action up to and including termination, as well as civil and/or criminal prosecution if applicable. Some associates may be asked to sign a separate confidentiality statement.

Parking

Parking areas for associates have been established at all facilities. In order to allow maximum convenience for customers, associates are asked to park in designated areas. On Saturdays and special sale days, associates may be asked to park outside of the designated associate’s parking area to ensure adequate parking spaces for customers. Associates with a disability or temporary physical condition (e.g., pregnancy) may park closer upon receiving permission from their supervisor. Contact your supervisor for more information regarding designated parking areas.

The company is not responsible for damage or theft involving associates’ vehicles or personal items on RC Willey property.

Solicitations

No associate is permitted to conduct any type of solicitation during working time including, for example, canvassing, collecting funds, soliciting pledges, circulating petitions, soliciting memberships for organizations or any other such activity undertaken for any purpose. No associate is permitted to distribute any non-company literature or other materials such as leaflets, letters, petitions or other written materials during working time or in working areas, with one exception. Associates may post information on the break room bulletin board for charity-type fundraisers for community groups such as youth groups (Girl Scouts, Boy Scouts, school band trips, athletic teams, etc.) and registered charities (associations for heart, kidney, diabetes, cancer, etc.).

Persons not employed by RC Willey are not permitted, at any time or in any manner, to conduct any form of solicitation on any company property or to distribute any literature or other materials to any associate or customer of RC Willey.

Associate References

All requests for references by potential employers must be directed to Human Resources for response. No other associate, supervisor or manager is authorized to release reference information or opinions concerning a current or former associate on the company’s behalf.

Work Schedules and Employment Status

Although supervisors will try to maintain work schedules discussed during the hiring process, business and staffing needs may require that schedules be changed temporarily or perhaps indefinitely. The supervisor may also need an associate to work less or more hours than what was originally anticipated. This may necessitate a change from full-time hours to part-time hours or vice versa without a change of status if the change is only temporary, or the associate’s full or part time status may be changed if the need is indefinite. To best meet business and departmental needs, all schedules and hours worked by associates are at the discretion of the supervisor.

Problems/Suggestions

Associates are encouraged to discuss work-related problems or suggestions with their immediate supervisors. RC Willey values the input of associates and welcomes their comments.

In the case of associate problems, the supervisor should attempt to bring about a satisfactory resolution. If the matter cannot be resolved at the supervisory level, it should then be referred to the next ascending level of authority within the department. In addition, the Human Resource department is available to assist associates or supervisors at any time to help resolve any differences. Whenever possible, all counseling situations are treated as confidential and information is discussed only with those that need to know.

Pay Practices

All hourly, commission, and piece rate associates will be responsible for clocking in and out at work by using a computer terminal nearest their assigned work area.

Any associate found knowingly omitting, altering or falsifying information on his/her actual time worked or having someone clock in or out for another associate will be subject to discipline which could result in termination.

Associates must clock out whenever leaving the property for any reason, unless their job duties require work off site. If an associate fails to clock in or out, or needs to correct logged information, he/she must fill out an Associate Log Form with time(s) and date(s) to correct the inaccurate log times and turn it in to their supervisor for approval and processing. All time clock corrections should be turned in for correction during the same week in which they occurred. All leave requests must be entered into the computer system upon the associate’s return to work (or before when practical). Vacation leave must be entered and approved before it can be paid.

Breaks

Hourly, hourly plus commission or piece rate, and piece rate associates working more than five hours must take a half hour lunch break and remain “clocked out” during that time. A supervisor will allow a ten-minute break during each consecutive four-hour work period for minor employees and may allow a ten-minute break during each consecutive four-hour work period for all other employees. Breaks may not be combined or used in lieu of a lunch break or to justify arriving late or leaving early.

Payroll

Hourly, salary, piece rate, commission (other than sales) associates are paid every other Friday. The two-week pay period begins on a Saturday and ends on a Friday. Check stubs will be displayed online on payday. Associates will not be permitted to pick up their payroll checks before the specified payroll date. New associates are required to set up direct deposit accounts (if permissible by state law). Direct deposit has many advantages to associates and the company, including: 1) payroll funds are automatically transferred to associate’s checking or savings account; 2) elimination of the possibility that a check is lost or stolen before it is deposited; 3) associates do not need to make an extra trip to the bank to deposit their check; 4) funds are deposited regardless of an associate being sick or on vacation on payday; and 5) the payroll process runs more efficiently. Associates should contact the payroll department if they are not yet set up on direct deposit.

Commission sales associates will receive a draw check against earned commissions on the 5th of the month. A commission is earned when the merchandise has been delivered to the customer (or will-called by the customer) and invoiced. Commissions may be adjusted because of returns and/or credit memos. Commission checks will be distributed on the 20th of the month for commissions earned from the previous month, less the amount of their draw. There may not be a draw check for part-time or limited area sales associates. Any additional pay or reimbursements (to be determined by management) will be paid on the 20th of the month.

Because of privacy concerns and to ensure confidentiality, associates are required to send via mail (US Mail or interoffice) or secure email any payroll withholding allowance (Form W-4) updates or changes to the Human Resource department. Once received, Human Resources will begin withholding no later than the start of the first payroll period ending on or after the 30th day from the date the updated form is received. Please plan accordingly.

Changing the number of exemptions to manipulate the amount of net pay on selected paychecks and back again puts the associate and the company at risk. When this happens, one of the W-4s is obviously incorrect. IRS guidelines indicate that an associate who knowingly files a false Form W-4 may be subject to a $500 penalty. The company is also prohibited from using a false Form W-4 to calculate withholding.

Overtime

Supervisors must approve all overtime in advance. All associates eligible for overtime will be paid at the rate of one and one-half times their regular rate of pay for all hours worked in excess of 40 in one workweek (or according to state law). A workweek begins on Saturday and ends on Friday. Hours paid to associates as part of scheduled holidays, vacation days and sick leave will not be considered hours worked for overtime purposes.

Salary and commission associates are not eligible for overtime pay.

Final Paychecks

Commission sales associates will receive commission on delivered sales for 30 days following termination. However, if the associate is terminated for gross misconduct or theft, then the associate will receive commission on sales delivered through the date of termination. Sales associates who leave voluntarily must offer a two-week notice and be available to work to qualify for the 30-day delivered commission agreement. Sales associates are not eligible for a draw following their termination date.

Commission associates will be paid the majority of their commissions, along with any remaining hours of accrued and unused vacation.

All associates terminating their employment will be paid all of their remaining accrued and unused vacation. In order to qualify for accrued vacation payouts, associates must be employed with RC Willey for at least one full year. The vacation pay will generally be paid in the associate’s next paycheck following their notification of termination.

Associates leaving the company that have not returned RC Willey property (uniforms, telephones, tools, keys, etc.) can pick up their paycheck from their office manager and return the RC Willey property. A deduction may be made for items not returned based on the value of the product or prior signed agreement.

Terminated associates will remain enrolled on the health insurance plans they have elected through their last day of employment. A COBRA notice will then be sent offering optional continued coverage.

Voluntary Terminations - Associates who terminate their employment voluntarily will be paid in accordance with the law applicable to the state in which they are employed. Final paychecks are in check form and sent to the associate’s work location unless direct deposit is elected and available.

Involuntary Terminations - Associates terminated involuntarily will be paid in accordance with the law applicable to the state in which they are employed. The final paycheck will include all remaining accrued vacation hours.

Hiring Practices

Job Posting

The company considers current associates before outside applicants. Typically, positions will be posted online and at a central point in each location. If an associate is qualified for and interested in any posted opening, the associate must complete an In-House Transfer form and turn it in to their supervisor to be considered. The supervisor will then complete the form, have the location manager sign it and forward it to the Human Resource department.

An hourly associate must work in their current position for at least three months to be eligible to transfer (six months for associates transferring to a corporate position). This allows the associate time to become proficient in their current position and reduce the need for constant retraining in entry-level positions. Transfers are subject to position availability, job performance and evaluations through the normal interviewing process. RC Willey reserves the right to promote and transfer associates prior to the eligibility periods when the need arises due to staffing requirements and business needs.

To be considered for a transfer, sales associates must work for a period of one year in the same location when new to the position. If an associate has been with the company more than one year, the associate must work at least 90-days in any given position at the same location to be considered for an additional transfer. Further, sales associates must meet the criteria listed in the Sales Transfer Policy to be eligible for a transfer.

The transfer time limits may be modified when transferring between markets or states due to personnel needs and must be approved in advance by both location managers and the Human Resources department.

To avoid possible conflicts, inter-departmental transfers must be approved and offered by the Human Resource department. It is inappropriate for managers to solicit or discuss possible transfers with associates without first consulting the Human Resource department and the associate’s supervisor.

In connection with promotions or transfers to supervisory positions or to positions where associates enter customer’s homes, vehicles, etc. to conduct company business or to other positions with access and control over company systems and assets, the company will conduct background verifications and drug screens consistent with that done at the time of hire, and in accordance with applicable law.

Any associate who has received any written performance counseling is not eligible to transfer for a minimum of 90 days (6 months for sales associates) following the date of the notice. Some rare exceptions to this policy may be made upon agreement between supervisors in both departments and after consultation with Human Resource management.

Re-Hire

Former associates must submit an employment application to the company and follow the same application process and will be evaluated by the same standard as other applicants.

Associates rehired within thirteen weeks of their termination dates may have their insurance benefits reinstated the first of the month following the re-hire date (as determined by ACA regulation; contact Human Resources for more information). Associates with breaks in service may use their combined years of service with the company for the Associate Purchase Plan. However, associates with any break in service (regardless of the length of that break) will be treated as new hires with regard to sick and vacation leave, years of service recognition, profit sharing bonuses, and other length of service benefits (other than previously noted).

Profit sharing and 401(k) eligibility for associates who are re-hired by the company will be determined according to the Profit Sharing and 401(k) Plan Documents.

Nepotism

Pending approval from a committee, related associates may work in different departments at the same location. This committee will review requests for in-house transfers to ensure there is not a potential or perceived conflict of interest. Associates are required to disclose family relationships on the In-House Transfer form. Related associates cannot work in the same supervisory line, regardless of location. Related family members as defined by this policy are as follows (including in-law and step relatives):

• Husband/Wife
• Father/Mother
• Son/Daughter
• Brother/Sister
• Significant other/Partner

Associates are required to disclose any family/work relationships that may be subject to this policy.

This policy applies to new hires and transfers within the company. If a circumstance prohibited by this policy occurs in the future as the result of marriage, one of the associates must transfer to alleviate the policy conflict within 90 days.

This policy is not effective as to circumstances that existed prior to April 1, 1988 and the family members of the Board of Directors. RC Willey locations that are not within a reasonable distance from another location may have a modified nepotism policy.

Non Fraternization

RC Willey prohibits managers or supervisors from having a personal relationship with an associate for whom the person provides any level of supervision. This would include but not be limited to dating, sharing the same household, etc. If this situation currently exists, the associate’s manager and human resources will determine if a transfer is necessary.

Job Requirements / Performance Standards

All positions have minimum job requirements that must be met and some have additional performance standards (such as sales and some warehouse positions) that must be met for continued employment. Our hope is that all associates exceed (or at least meet) the minimum standards. However, if the standards are not met, the associate must apply and be selected for a different position in the company within the specified time or seek employment elsewhere to better match his/her talents and abilities. Associates who are unable or unwilling to transfer may be subject to discipline up to and including termination.

Safety, Product and Property Guidelines

RC Willey expects associates to work safely, handle product appropriately and protect company property.

With heightened awareness, safe work practices and careful product handling, we believe that all injuries and accidents are preventable. Our goal is to eliminate all unsafe acts and mishandling of product and property. Associates will be held accountable for unsafe acts and mishandled product or company property (see the Safety, Product and Property Guideline policy). Company drivers are also accountable for specific driving guidelines and policies.

Conflicts of Interest

In order to preserve the common corporate interest in a continued, efficient and profitable operation and to protect RC Willey and its associates’ reputation for integrity, associates may not be involved in outside business interests that may be disruptive, collusive or in direct competition with RC Willey.

It is the policy of RC Willey to recognize and respect the right of its associates to engage in outside financial business or other activities which they may deem proper provided that such activities:

• Do not impair or interfere with the associate’s performance of company duties.
• Do not involve the misuse of RC Willey’s influence, facilities or other resources.
• Do not discredit the good name and reputation of RC Willey.

Accordingly, for all business relationships with outside individuals and organizations and for all personal business undertakings, all RC Willey associates should:

• Act in accordance with established company standards and reasonable expectations.
• Protect their own reputations and the interests of RC Willey against actual or potential conflicting interests with outside parties.
• Not invest in non-public, competing companies.
• Avoid any attempt to pre-empt or usurp a corporate opportunity as, for example, to purchase or sell land or intellectual property rights in which RC Willey has or may have an interest.
• Avoid any interest in or relationship with an outside organization or individual having business dealings with RC Willey if this interest or relationship might tend to impair the ability of the associate to serve the best interests of RC Willey.
• Avoid doing business with a relative (including a company with which a relative is associated) on behalf of RC Willey unless the facts are disclosed and is approved in advance by the department head. Whenever possible associates should receive competitive bids to avoid the appearance of a conflict of interest.
• Not accept any loan, gift or favor from a customer or other source that has business relations with RC Willey. Gifts from vendors and suppliers (current and potential) are strongly discouraged; however, associates may accept from suppliers or vendors gifts or favors of nominal value (less than $50) or casual entertainment that meet all standards of ethical business conduct upon approval from the department head.

A conflict of interest may also arise if an associate’s spouse, significant other or immediate family member works for a direct competitor. If this situation arises, prompt disclosure to senior management is required. The company will then review the situation and take into account the nature of the jobs, possible access to sensitive information and the level of responsibility of those involved. Associates may be warned of potential conflicts, have their job duties modified, be reassigned to another job and/or department or be terminated.

This policy requires every associate to disclose promptly, in writing, any personal situation or transaction that is or could be in conflict with the intent of this policy. Disclosures will be made to immediate managers and, in appropriate situations, to upper-management. Associates in some departments may be required to sign an additional Conflict of Interest policy.

To keep focused on serving our customers and to be fair with all associates, the display, promotion, sale or solicitation of “non-RC Willey” merchandise or literature on company time, on company property or in customer’s homes by associates is prohibited.

Equal Employment Opportunity

RC Willey's goal is to provide an environment that is free of discrimination. In all matters related to terms and conditions of employment, including: recruitment, hiring, compensation, promotion, demotion, transfer, training, layoff and termination only valid, non-discriminatory criteria will be used.

RC Willey's management supports the policy of Equal Employment Opportunity for all persons regardless of race, color, religion, age, gender, sexual orientation, gender identity or expression, pregnancy, disability, national origin, ethnic background, genetic information, military service, citizenship, marital status, or any other protected classes as defined by state and/or federal law.

It is RC Willey’s practice to make reasonable accommodations to qualified individuals with a disability as long as the accommodation is reasonable and will not cause an undue hardship on the operation of RC Willey’s business.

RC Willey also expects all associates to treat their fellow associates and customers with respect and to follow non-discriminatory practices in performing their duties.

Any associate who feels they have been discriminated against should report the complaint immediately to his/her supervisor if appropriate, and to Human Resources. Upon notification, an appropriate investigation will be conducted and appropriate action will be taken.

Harassment-Free Environment

It is our goal at RC Willey to provide our associates, potential associates and customers with an environment that is free of harassment based upon legally protected classifications. 

Inappropriate conduct relating to race, sex, sexual orientation, gender identity, color, religion, age, disability, marital status or national origin, along with unwelcome sexual advances, requests for sexual favors, or harassment of a sexual nature do not belong in the workplace. Such remarks or acts will not be tolerated at RC Willey toward any person.

Harassment

The following are examples of impermissible harassment under this policy: referring to any person by a demeaning name, belittling or demeaning another associate, or engaging in conduct which tends to harass or aggravate another associate that is based on their race, sex, sexual orientation, gender identity, color, religion, age, disability, marital status or national origin.

Sexual Harassment

The following are examples of behavior that constitutes Sexual Harassment under this policy:

• Verbal, physical or visual conduct of a sexual nature or suggestion that is unwelcome and has the effect of unreasonably interfering with an individual’s work performance, affects tangible job benefits and creates an intimidating, hostile or offensive work environment.
• Explicit sexual propositions, sexual innuendos, suggestive jokes, jokes about gender-specific traits, foul or obscene language or gestures, display of foul or obscene printed or visual material.
• Physical contact such as patting, pinching, or brushing against another’s body.
• A circumstance where submission to, or rejection of, such conduct (whether spoken or implied) is used to make decisions affecting an individual’s opportunity for employment or advancement.

Associates should be aware that conduct or a conversation may be considered inappropriate if the conduct or conversation is seen or overheard by other customers or associates, and the conduct or conversation is deemed inappropriate based on standards established in this harassment policy.

Associates found in violation of this policy will be subject to disciplinary action up to and including termination.

Any associate who feels that he or she is being subjected to harassment should first tell the person their behavior is offensive. If you are uncomfortable or unable to immediately and completely resolve the issue with the other person or are aware of such conduct taking place, please contact your manager or Human Resource management at once.

Accusing an individual of harassment is serious. If an investigation determines that an allegation of harassment has been falsely made for an ulterior purpose, the individual making the complaint may be subjected to discipline up to and including termination.

Anti-Retaliation

RC Willey will not tolerate retaliation against any associate who reports prohibited harassment or discrimination. The company will investigate any complaints of unlawful discrimination or harassment and take any necessary corrective action up to and including termination. It is also the company’s policy to ensure against and to take corrective action against any associates who harass, embarrass or retaliate in any respect against anyone who has made a complaint regarding unlawful discrimination or harassment. Any complaints concerning unlawful discrimination, harassment or retaliation for having raised a complaint should be immediately directed to Human Resources.

Complaints

Management personnel receiving notice of any complaint related to employment should address the issue immediately. If the complaint involves allegations of any type of discrimination or harassment, contact Human Resources immediately. RC Willey will conduct an investigation and use its best efforts to keep the investigation confidential. Upon conclusion of the investigation, the company will take action deemed appropriate under the circumstances based upon the evidence supporting the violation of the policy and the gravity of the policy violation, which may include termination of employment.

Appeal Process For Employment Related Decisions

If any of the associates involved are not satisfied with the result of any investigation, the associate may appeal the matter to the Director of Human Resources who will then review the matter with at least two senior managers. The appeal must be made in writing and delivered to the Director within ten (10) days of the date the associate learns of the decision. The Director and senior managers shall consider all the evidence available and render a decision within thirty (30) days of the date they receive notice of the appeal. Those conducting the review may uphold the prior action, reverse the prior action or impose new disciplinary action.

Workplace Rules

Rules and regulations are essential to the efficient operation of any company. The following rules have been established for the common guidance of all associates. These rules are fundamental and are designed for the protection and convenience of all associates and customers of RC Willey.

The following are examples of behavior that may lead to disciplinary action, which may include termination. This list is in no way complete and is intended to be used merely as a guide. RC Willey reserves the right to terminate employment at-will, with or without cause.

• Theft, covering up theft, misappropriation or misuse of company, associate or customer property.
• Improper handling of cash, including cash overages and shortages.
• Falsification of personnel, pay, clock in/out time or other records for or on behalf of the associate, co-workers or customers.
• Dishonesty of any type including deception or misrepresentation towards any associate, customer or supplier.
• Poor service to customers or other associates.
• Refusal to obey a reasonable work related request of a supervisor or any other type of insubordination.
• Refusal or failure to do a job assignment.
• Exhibiting the inability to cooperate or work well with other associates or customers.
• Abusive language or behavior to any customer or associate.
• Inappropriate comments or behavior of any kind made to an associate, customer or the general public.
• Threatening, intimidating or coercing any associate or customer, or interfering with supervision of associates at any time.
• Fighting, horseplay or careless behavior.
• Physical contact with another person that may be considered offensive or inappropriate and perhaps even unlawful and against our harassment policy.
• Possession or use of any alcoholic beverage or illegal drug on company property (or in a company vehicle) at any time.
• Inability to satisfactorily or safely perform assigned work due to the influence of drugs or alcohol.
• Positive drug or alcohol test results, refusal to submit to a drug test for any reason, or admission of illegal drug or alcohol use as described in the drug and alcohol testing policy.
• Being unable or unwilling to work hours assigned on the schedule or working more or less hours than scheduled without prior approval from immediate supervisor.
• Being absent or late without properly notifying an immediate supervisor.
• Excessive tardiness or absenteeism.
• Three consecutive days of not coming to work or not contacting an immediate supervisor will be considered a voluntary resignation.
• Any associate that is unable to report to his/her assigned work shift because of incarceration will be considered unexcused and may be subject to disciplinary action up to and including termination.
• Sleeping on the job and on company-paid breaks outside the break room.
• Misuse or willful destruction of any company, associate or customer property.
• Violation of safety policies and/or procedures.
• Improper use of passwords including: using, attempting to use or attempting to obtain another associate’s password.
• Use of telephones or any company communication or information system to obtain or view information or perform non-work related functions without permission from supervisor.
• Inappropriate use of company telephones, any company communications, computer systems or other company equipment.
• Obtaining or using confidential information (credit histories, salary histories, personnel files, advertising information, other personal information, etc.) for inappropriate non-work related reasons or for any other use other than directly needed to perform your job.
• Violation of guidelines, policies and/or procedures stated in this handbook.

Workplace Violence

RC Willey strictly prohibits any intimidation, threats or perceived threats of violence (bodily harm or property damage) and acts of violence (regardless of whether they cause bodily harm or property damage) toward another person. Intimidation generally means actions or words that cause another person to reasonably fear for his/her safety or the safety of others. Associates that violate this policy may be required, at their own expense, to attend counseling, obtain other appropriate help and/or be subject to disciplinary action up to and including termination and criminal prosecution when applicable.

Notification of Criminal Convictions

In order to provide a safe environment for our associates and customers, all associates are required to notify the Human Resource department of all criminal misdemeanor or felony convictions (other than minor traffic violations). This notification must be made within five (5) business days of the conviction. In accordance with applicable law, associates who are convicted of a crime that is deemed to be job-related may be subject to reassignment and/or disciplinary action up to and including termination.

Company Searches & Surveillance

Associates have no expectation of privacy with respect to use of any company property. RC Willey reserves the right to conduct unannounced searches of its property, vehicles and facilities, including work areas, desks and lockers assigned to associates at any time. RC Willey also reserves the right to keep and monitor telephone records, internet usage, e-mails, instant messaging and all other voice or electronic communication or data initiated or received on all company or company issued telephones, computers, devices, services, or other communication and information systems and resources. No associate has the right to interfere with or object to such searches of company property based on expectations of privacy or otherwise.

RC Willey also reserves the right to search personal property belonging to its associates, including but not limited to, lunch boxes or bags, pocketbooks or briefcases if such property is brought onto company premises or into company vehicles.

For the safety and security of associates, customers and company resources, we have installed video cameras for surveillance of public areas in our buildings and on our property. Associates should have no expectation of privacy in these public areas.

Safety

It is the intent of RC Willey to provide a safe environment for all associates and customers. If an associate observes any obstruction that may present a hazard, the associate is responsible for eliminating that obstruction. Associates should notify their supervisor immediately if they observe a possible hazard they cannot remedy.

All associates required to use any type of material handling equipment for all or a portion of their job duties must complete the required certification training on the equipment within 15 days of being employed or transferred to a new position. This includes passing the written and equipment handling evaluations. Associates who have not been certified to operate a certain type of material handling equipment or instructed in the use of a hazardous material are strictly prohibited from operating or using it.

Firearms and other lethal weapons are not permitted in any RC Willey building or any company vehicle. Security may carry firearms as part of their normal job assignment. Associates wishing to carry pepper spray or other non-lethal protective devices must keep them concealed at all times while in an RC Willey building.

Building Evacuation

If you hear a fire alarm, all associates and customers should proceed to the nearest exit in an orderly manner and follow instructions given by supervisors. The Manager-on-Duty in charge of each facility is responsible for determining whether the alarm is a drill or a real emergency. Associates should assemble in the parking lot until everyone has been accounted for. Associates should also be aware of customers requiring assistance in evacuating the building.

Each location has exits marked. Associates should become familiar with the exit(s) nearest their workstation. Associates should contact their supervisor if they have any questions.

Associate Incidents/Injuries

Associates are responsible to report to their manager or supervisor any incident that results in an injury while on the job immediately. An “Associate Incident Injury Statement,” found on the HR website, should be completed by the associate for every incident resulting in an injury, regardless of whether the associate gets medical treatment or not. If an associate does need medical attention then the form should be printed and sent with the associate to complete and bring back. A supervisor or manager should complete the Incident / Injury Manager Report, also found on the HR website, when an associate is seeking medical treatment. Both forms should be submitted to the Claims Supervisor immediately after completion. In order to address any safety issues that may be present it is important for managers to investigate all incidents that occur in their department. Check the surveillance cameras in the area to see if there is any coverage of the incident. If there is a safety hazard, note it on the manager report and inform your local loss prevention person.

When an associate is injured and medical attention is required, it is important to use the facilities approved by RC Willey. The associate’s supervisor will have a list of clinics to use. In life-threatening situations, it is important to go to the nearest emergency room. When accidents or injuries occur that require medical attention, the injured associate may be required to take a drug screen.

Associates who see another doctor or clinic other than those approved by RC Willey’s workers’ compensation carrier run the risk of having medical payments denied.

In cases where associates cannot work, it is important for the injured associate to follow the treatment program prescribed by the doctor and provide the company with periodic updates concerning progress toward returning to work. When the doctor gives physical restrictions, temporary light duty may be provided when reasonably available.

RC Willey requires associates to practice safe work habits including: proper lifting, wearing harness and tethers on lifts (mandatory), safe use of tools and equipment, etc. Failure to follow safety procedures will result in disciplinary action up to and including termination.

Customer Accidents/Injuries

If there is an accident or injury involving a customer, notify a store manager or manager-on-duty immediately. Print the “Customer Incident/Injury Report” from the HR website and give the form to the customer to complete. You can provide them with a copy if they request it. The responding manager should complete the “Customer Incident / Injury Manager Report,” also found on the HR website. Fax or e-mail both forms to the Claims Supervisor immediately after completion. In order to address any safety issues that may be present it is important for managers to investigate all incidents that occur in their department. If there is a safety hazard, note it on the manager report and inform your local loss prevention person. Take photos of the scene and check surveillance cameras in the area to see if there is any coverage of the accident.

It is important that associates are attentive and responsive to customers injured on our premises. If medical attention is needed, instruct the customer that they may go to their own doctor or clinic. Do not direct injured customers to a specific clinic or doctor.

In any life-threatening situation, call 911 immediately!

Drug and Alcohol Policy

It is RC Willey’s desire to provide a drug-free, healthy and safe work environment.

The legal use of prescribed drugs is permitted on the job only if they do not impair an associate’s ability to perform the essential functions of his/her job effectively and in a safe manner.

While on company property or in company vehicles and/or while conducting business-related activities, associates may not unlawfully use, manufacture, possess, distribute, sell or be under the influence of alcohol and/or drugs as defined in this policy.

In accordance with applicable law, RC Willey reserves the right to search company facilities, property, equipment, vehicles, lockers and work areas. Upon determination that facts exist which would lead a person to believe that the policy is being violated, the company may, without notice, search an associate and an associate’s personal property that has been brought onto company property. The company may seize any illegal substance and will report the same to law enforcement officials.

Driving under the influence of drugs or alcohol either during or outside of work hours is illegal. As such, associates that drive company vehicles or drive on behalf of the company are prohibited from driving under the influence of drugs and/or alcohol as defined in this policy.

Definitions

• “Alcohol” means ethyl alcohol or ethanol.
• “Drugs” mean any substance recognized as a drug in the United States Pharmacopoeia, the National Pharmacopoeia, the National Formulary, the Homeopathic Pharmacopoeia, or other drug compendia or supplement to any of those compendia. 
• “Drug test” means any test for drugs or alcohol utilizing a test of the Sample or any other medically established reliable method of testing to detect the presence of drugs, alcohol, adulterants, specimen substitutions and/or specific gravity.
• “Sample” means urine, blood, breath, saliva, or hair, etc.
• “Substitution” means giving an altered or substituted sample (urine or non-urine).
• “Adulterated” means a urine sample which has been tampered with in order to alter the test results.
• “Specific Gravity” is a test result in which excessive fluids have diluted the urine sample to the extent that the system has been flushed, and eliminates the possibility of testing the sample.
• “Prospective Associate” means any person who has made application to RC Willey for employment or has been offered employment contingent on results of a pre-employment drug test.
• “The company” is RC Willey Home Furnishings or any subsidiary.

Test Cutoff Levels (ng/ml)

 5 Panel (DOT):	 ng/ml
 Marijuana	 50
 Cocaine	 300
 Opiates/Opioids	 2000*
 Phencyclidine	 25
 Amphetamines	 1000
 9 Panel (Adds the additional substances
 Barbiturates	 300
 Benzodiazepines	 300
 Methadone	 300
Propoxyphene	 300

Alcohol

0.04% BAC

Types of Testing Conducted

Blood, urine, saliva, hair, breath samples and other tests may be used to determine the presence of drugs and/or alcohol.

1. Pre-employment: All prospective associates’ offers are contingent upon submitting to and passing a drug test as a condition of employment.
2. Post-accident: Any associate involved in a work-related accident or injury if the company has a reasonable basis for believing that drug use by the employee could have contributed to the injury or illness.
3. Probable Cause/Reasonable Suspicion: Any associate who is perceived to be under the influence of drugs or alcohol or as a result of a perceived change in, or impairment of job performance or conduct will be asked to submit to a drug test.
4. Change in Position: Associates will be asked to submit to a drug screen for any of the following changes in position:
   • In connection with job promotions and/or job transfers to supervisory positions.
   • In positions where associates enter customer’s homes, vehicles, etc., to conduct business as a company representative, including but not limited to, deliveries, repairs and installations.
   • In other positions with access and control over company systems and assets.
5. Random: On a random basis as considered necessary by the company and/or the United States Department of Transportation.

Cost of Testing and Work Time

Any drug or alcohol testing by the company shall occur during or immediately after the regular work period of current associates and shall be deemed work time for purposes of compensation. The company shall pay all of the costs of testing for drugs and/or alcohol required, including a mileage reimbursement if the testing of a current associate is conducted at a place other than work.

Prospective associates will not be compensated for time or transportation for the drug test.

Collection and Testing Conditions

All sample collection and testing for drugs and alcohol shall be performed under the following conditions, consistent with applicable law:

• The collection of samples shall be performed under reasonable and sanitary conditions.
• Samples shall be collected and tested with due regard to the privacy of the individual being tested and in a manner reasonably determined to prevent substitutions or interference with the collection or testing of samples.
• Sample collection shall be documented, and the documentation procedures shall include:
  • Labeling of samples so as to eliminate the possibility of erroneous or incorrect identification.
  • An opportunity for the associate or prospective associate to provide the collector with any information which they consider relevant to the test, including identification of currently or recently used prescription or non-prescription drugs, or other relevant medical information.
  • The associate providing valid, pictured identification typically issued by a state agency.
• Sample collection, storage and transportation to the place of testing shall be performed so as to reasonably eliminate the possibility of sample contamination or adulteration.
• Sample testing shall conform to scientifically-accepted analytical methods and procedures. Testing shall include verification or confirmation of any positive test result by gas chromatography mass spectroscopy, or another comparably reliable analytical method before the results of any test may be used as a basis for any action by the company.
• Upon notification of a positive result, an associate or prospective associate has the right to a re-test of the original sample at his/her expense. If the re-test comes back negative, the company will reimburse the associate for the cost of the re-rest. Notification of intent to do so must be submitted in writing to Human Resources within 24 hours of notification of the drug test result. Payment for the re-test must be made in advance to the company, in cash or by money order.

Specimen Tampering and Adulterants

Our testing includes screening for substitution and adulteration substances to ensure accuracy of the test and that tampering does not take place. Any tampering and/or adulterants will be treated as a positive test.

Temperature Out-of-Range

When any sample is deemed by the collector at the time of collection to be outside of the acceptable temperature range, the prospective associate shall have his/her employment offer voided. For other drug tests, the associate shall immediately produce another sample for testing (“second sample”). If he/she refuses to provide a second sample, or if the second sample is deemed by the collector at the time of collection to be outside of acceptable temperature range, he/she shall be subject to disciplinary action up to and including termination.

Specific Gravity

A urine sample shall be considered an excess fluids sample if (1) the test results indicate that the urine sample contains creatinine levels less than .2g/L and a specific gravity of less than 1.003 and (2) there is no medically sufficient explanation for such excess fluids, which explanation must be judged as satisfactory to the Medical Review Officer (MRO) at his/her sole discretion.

If a urine sample provided by an associate or prospective associate is determined after appropriate testing to be an excess fluids sample, the associate or prospective associate shall, at the company’s discretion, be required to provide a second sample at a time and under conditions and requirements that are within the sole discretion of the company. In the event the second sample is determined after appropriate testing to be an excess fluids sample, the prospective associate shall have his/her employment offer voided. In the event a current associate has two tests showing excess fluid, the associate’s employment will be reviewed with termination a possible result.

Violations of the Drug and Alcohol Policy

Positive Test

Consistent with applicable law, any associate or prospective associate that refuses a drug test or has violated this policy shall be subject to one or more of the following, at R.C. Willey’s sole discretion:

1. Refusal to hire a prospective associate.
2. Required enrollment in a company-approved rehabilitation, or counseling program, which may include additional drug or alcohol testing as a condition of future employment. Any rehabilitation for drug and/or alcohol abuse will be done at the associate’s expense.
3. Suspension of the associate with or without pay for a period of time as determined by the company.
4. Other disciplinary actions consistent with the company’s usual practices, policies or procedures.
5. Termination of employment.

Admissions After Notification/Work Related Accident/Time Limitation/Refusal To Test

The company may use, as a basis for disciplinary action up to and including termination, an associate’s or prospective associate’s admission to current illegal drug use, inappropriate use of prescription medications or the admission of currently being under the influence of drugs and/or alcohol, after being asked to submit to a drug/alcohol test, a work related accident or discussion related to drug dependency or abuse, or if an associate or prospective associate provides a sample that has been adulterated.

Prospective associates and associates must provide a sample within three (3) hours of notification. Those who fail to do so will be subject to the same consequences as those with a positive test result.

Any associate or potential associate who refuses to submit to a drug or alcohol test, or refuses to sign the necessary consent forms, will have their employment offer voided or their employment terminated.

Prescription Medications

Use of prescription medications without a current prescription, or improper use of a currently-prescribed medication, is also a violation of RC Willey’s Drug and Alcohol Policy and is subject to the same consequences.

Employee Assistance Program (Where Available)

RC Willey recognizes that drug and alcohol addictions are often remediable with treatment. An associate with drug and/or alcohol addiction(s) is strongly encouraged to notify his/her supervisor, or Human Resources and may enroll in a company approved treatment and rehabilitation program. The Employee Assistance Program is unavailable and does not apply to tests given as part of initial employment. Any costs associated with extended use of the EAP will be the responsibility of the associate.

An associate with questions or concerns about substance dependency or abuse is encouraged to discuss these matters with the Human Resource department, so they can receive information regarding our Employee Assistance Program.

In order for the associate to avoid disciplinary action the associate must come forward prior to being notified of a drug or alcohol test, or prior to a work related accident or incident.

Confidentiality

Information concerning the results of a drug test may be provided to company management who may use it to determine compliance with company work rules and this policy.

All information, interviews, reports, statements, memoranda or test results received by the company through this drug and/or alcohol testing program are confidential communications, except to those having a need to know, or in defense of any action brought against the company or as required by law.

Any associate found to violate any part of the Drug and Alcohol policy will be subject to disciplinary action up to and including termination.

Berkshire Hathaway Inc.

Prohibited Business Practices (Click For Document)

Code of Business Conduct and Ethics

1. Scope.
   This Code of Business Conduct and Ethics applies to all Berkshire Hathaway directors, officers and employees, as well as to directors, officers and employees of each subsidiary of Berkshire Hathaway. Such directors, officers and employees are referred to herein collectively as the “Covered Parties.” Berkshire Hathaway and its subsidiaries are referred to herein collectively as the “Company.”
2. Purpose.
   

   The Company is proud of the values with which it conducts business. It has and will continue to uphold the highest levels of business ethics and personal integrity in all types of transactions and interactions. To this end, this Code of Business Conduct and Ethics serves to (1) emphasize the Company’s commitment to ethics and compliance with the law; (2) set forth basic standards of ethical and legal behavior; (3) provide reporting mechanisms for known or suspected ethical or legal violations; and (4) help prevent and detect wrongdoing.

   Given the variety and complexity of ethical questions that may arise in the Company’s course of business, this Code of Business Conduct and Ethics serves only as a rough guide. Confronted with ethically ambiguous situations, the Covered Parties should remember the Company’s commitment to the highest ethical standards and seek advice from supervisors, managers or other appropriate personnel to ensure that all actions they take on behalf of the Company honor this commitment. When in doubt, remember Warren Buffett’s rule of thumb:

   “…I want employees to ask themselves whether they are willing to have any contemplated act appear the next day on the front page of their local paper – to be read by their spouses, children and friends – with the reporting done by an informed and critical reporter.”

3. Ethical Standards.
   

   1. Conflicts of Interest

   A conflict of interest exists when a person’s private interest interferes in any way with the interests of the Company. A conflict can arise when a Covered Party takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest may also arise when a Covered Party, or members of his or her family, receive improper personal benefits as a result of his or her position at the Company. Loans to, or guarantees of obligations of, Covered Parties and their family members may create conflicts of interest. It is almost always a conflict of interest for a Covered Party to work simultaneously for a competitor, customer or supplier.

   Conflicts of interest may not always be clear-cut, so if you have a question, you should consult with your supervisor or manager or, if circumstances warrant, the chief financial officer or chief legal officer of the Company. Any Covered Party who becomes aware of a conflict or potential conflict should bring it to the attention of a supervisor, manager or other appropriate personnel or consult the procedures described in Section E of this Code.

   All directors and executive officers of the Company, and the chief executive officers and chief financial officers of Berkshire Hathaway’s subsidiaries, shall disclose any material transaction or relationship that reasonably could be expected to give rise to such a conflict to the Chairman of the Company’s Audit Committee. No action may be taken with respect to such transaction or party unless and until such action has been approved by the Audit Committee.

   2. Corporate Opportunities.

   Covered Parties are prohibited from taking for themselves opportunities that are discovered through the use of corporate property, information or position without the consent of the Board of Directors of the Company. No Covered Party may use corporate property, information or position for improper personal gain, and no employee may compete with the Company directly or indirectly. Covered Parties owe a duty to the Company to advance its legitimate interests whenever possible.

   3. Fair Dealing.

   Covered Parties shall behave honestly and ethically at all times and with all people. They shall act in good faith, with due care, and shall engage only in fair and open competition, by treating ethically competitors, suppliers, customers, and colleagues. Stealing proprietary information, possessing trade secret information that was obtained without the owner’s consent, or inducing such disclosures by past or present employees of other companies is prohibited. No Covered Party should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair practice.

   The purpose of business entertainment and gifts in a commercial setting is to create good will and sound working relationships, not to gain unfair advantage with customers. No gift or entertainment should ever be offered or accepted by a Covered Party or any family member of a Covered Party unless it (1) is consistent with customary business practices, (2) is not excessive in value, (3) cannot be construed as a bribe or payoff and (4) does not violate any laws or regulations. The offer or acceptance of cash gifts by any Covered Party is prohibited. Covered Parties should discuss with their supervisors, managers or other appropriate personnel any gifts or proposed gifts which they think may be inappropriate.

   4. Insider Trading.

   Covered Parties who have access to confidential information are not permitted to use or share that information for securities trading purposes (“insider trading”) or for any other purpose except the conduct of the Company’s business. All non-public information about the Company should be considered confidential information. It is always illegal to trade in Berkshire Hathaway securities while in possession of material, non-public information, and it is also illegal to communicate or “tip” such information to others. While all Covered Parties are prohibited from insider trading, Berkshire has adopted specific “Insider Trading Policies and Procedures” applicable to the Company’s directors, executive officers and key employees (“Directors and Covered Employees”). This document is posted on Berkshire’s website and is sent periodically to Directors and Covered Employees in connection with certification of compliance.

   5. Confidentiality.

   Covered Parties must maintain the confidentiality of confidential information entrusted to them, except when disclosure is authorized by an appropriate legal officer of the Company or required by laws or regulations. Confidential information includes all non-public information that might be of use to competitors or harmful to the Company or its customers if disclosed. It also includes information that suppliers and customers have entrusted to the Company. The obligation to preserve confidential information continues even after employment ends.

   6. Protection and Proper Use of Company Assets.

   All Covered Parties should endeavor to protect the Company’s assets and ensure their efficient use. Theft, carelessness, and waste have a direct impact on the Company’s profitability. Any suspected incident of fraud or theft should be immediately reported for investigation. The Company’s equipment should not be used for non-Company business, though incidental personal use is permitted.

   The obligation of Covered Parties to protect the Company’s assets includes its proprietary information. Proprietary information includes but is not limited to intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business, marketing and service plans, engineering and manufacturing ideas, designs, databases, records, salary information and any unpublished financial data and reports. Unauthorized use or distribution of this information would violate Company policy. It could also be illegal and result in civil or criminal penalties.

   7. Compliance with Laws, Rules and Regulations.

   Obeying the law, both in letter and in spirit, is the foundation on which the Company’s ethical standards are built. In conducting the business of the Company, the Covered Parties shall comply with applicable governmental laws, rules and regulations at all levels of government in the United States and in any non-U.S. jurisdiction in which the Company does business. Although not all Covered Parties are expected to know the details of these laws, it is important to know enough about the applicable local, state and national laws to determine when to seek advice from supervisors, managers or other appropriate personnel.

   The document “Prohibited Business Practices Policy” sets forth the Company’s policy on compliance with laws, specifically addressing such topics as prohibited offers or payments, gifts and entertainment, transactions with certain countries and persons, accounting controls, and accurate record-keeping. This Policy is furnished to senior managers and available to all employees.

   8. Timely and Truthful Public Disclosure.

   In reports and documents filed with or submitted to the Securities and Exchange Commission and other regulators by the Company, and in other public communications made by the Company, the Covered Parties involved in the preparation of such reports and documents (including those who are involved in the preparation of financial or other reports and the information included in such reports and documents) shall make disclosures that are full, fair, accurate, timely and understandable. Where applicable, these Covered Parties shall provide thorough and accurate financial and accounting data for inclusion in such disclosures. They shall not knowingly conceal or falsify information, misrepresent material facts or omit material facts necessary to avoid misleading the Company’s independent public auditors or investors.

   9. Significant Accounting Deficiencies.

   The CEO and each senior financial officer shall promptly bring to the attention of the Audit Committee any information he or she may have concerning (a) significant deficiencies in the design or operation of internal control over financial reporting which could adversely affect the Company’s ability to record, process, summarize and report financial data or (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s financial reporting, disclosures or internal control over financial reporting.

4. Waivers.
   

   Any waiver of this Code for executive officers or directors may be made only by the Company’s Board of Directors or its Audit Committee and will be promptly disclosed as required by law or stock exchange regulation.

5. Violations of Ethical Standards.
   

   1. Reporting Known or Suspected Violations.

   The Company’s directors, CEO, senior financial officers and chief legal officer shall promptly report any known or suspected violations of this Code to the Chairman of the Company’s Audit Committee. All other Covered Parties should talk to supervisors, managers or other appropriate personnel about known or suspected illegal or unethical behavior. These Covered Parties may also report questionable behavior in the same manner as they may report complaints regarding accounting, internal accounting controls or auditing matters by contacting (anonymously, if desired) a third party organization called NAVEX Global (toll-free number 800-261-8651 or web site at http://brk-hotline.com). Separate anonymous reporting procedures are available for Company employees working outside the United States. No retaliatory action of any kind will be permitted against anyone making such a report in good faith, and the Company’s Audit Committee will strictly enforce this prohibition.

   2. Accountability for Violations.

   If the Company’s Audit Committee or its designee determines that this Code has been violated, either directly, by failure to report a violation, or by withholding information related to a violation, the offending Covered Party may be disciplined for non-compliance with penalties up to and including removal from office or dismissal. Such penalties may include written notices to the individual involved that a violation has been determined, censure by the Audit Committee, demotion or re-assignment of the individual involved and suspension with or without pay or benefits. Violations of this Code may also constitute violations of law and may result in criminal penalties and civil liabilities for the offending Covered Party and the Company. All Covered Parties are expected to cooperate in internal investigations of misconduct.

6. Compliance Procedures.
   

   We must all work together to ensure prompt and consistent action against violations of this Code. In some situations, however, it is difficult to know if a violation has occurred. Because we cannot anticipate every situation that will arise, it is important that we have a way to approach a new question or problem. These are the steps to keep in mind:

   Make sure you have all the facts. In order to reach the right solutions, we must be as informed as possible.

   Ask yourself: What specifically am I being asked to do? Does it seem unethical or improper? Use your judgment and common sense. If something seems unethical or improper, it probably is.

   Clarify your responsibility and role. In most situations, there is shared responsibility. Are your colleagues informed? It may help to get others involved and discuss the problem.

   Discuss the problem with your supervisor. This is the basic guidance for all situations. In many cases, your supervisor will be more knowledgeable about the questions, and he or she will appreciate being consulted as part of the decision-making process.

   Seek help from Company resources. In rare cases where it would be inappropriate or uncomfortable to discuss an issue with your supervisor, or where you believe your supervisor has given you an inappropriate answer, discuss it locally with your office manager or your human resources manager.

   You may report ethical violations in confidence without fear of retaliation. If your situation requires that your identity be kept secret, your anonymity will be protected to the maximum extent consistent with the Company’s legal obligations. The Company in all circumstances prohibits retaliation of any kind against those who report ethical violations in good faith.

   Ask first, act later. If you are unsure of what to do in any situation, seek guidance before you act.

RC Willey Home Furnishings Measurement Method Policy to Determine Full-time Employee Status under the Employer Shared Responsibility

RC Willey Home Furnishings is a large employer under Employer Shared Responsibility provisions of the Affordable Care Act (ACA). RC Willey Home Furnishings offers health benefits to full-time employees that are affordable and meet minimum value. A full-time employee is defined as one who works an average of at least 30 hours per week or 130 hours per month.

The ACA requires large employers to select a measurement method to determine:

• The full-time status of employees
• If the employer must offer coverage to an employee
• For which months the employer must offer coverage
• For which employees an employer may be subject to potential penalties for not offering coverage.

This policy specifies the Measurement Methods RC Willey Home Furnishings has selected, the categories of employees to which the selections apply, the length of the Look-back Measurement Method periods, and the treatment of employees upon return from paid or unpaid leave.

Section 1: Categories of Employees to Whom the Monthly Measurement Method or Look-Back Measurement Method Applies

The measurement method selected for a category of employees applies to all employees in that category, whether they work full-time, part-time, have variable hours or are seasonal employees.

1.A. The General Rule

Starting August 1, 2014, RC Willey Home Furnishings will use the Look Back Measurement Method for ALL categories of employees.

1.B. The Exception to the General Rule: Newly-Hired Employees Reasonably Expected to Work Full-time

For new-hires who are reasonably expected at date of hire to be full-time employees, RC Willey Home Furnishings will temporarily track hours using the Monthly Measurement Method (even though the Look-Back Measurement Method would otherwise apply), and will offer health coverage that will be effective no later than the first day of the month following 60 days of eligible employment.

RC Willey Home Furnishings will continue to track hours of the new employee (who is reasonably expected to work full time) on a monthly basis until the new employee becomes an “ongoing” employee. On the first day of the first STANDARD Measurement period after hire, the employee’s hours will also be tracked using the Standard Look Back Measurement method. Specifically,

• On first day of work, employee’s hours will be tracked using the Monthly Measurement Method.
• On first day of the first Standard Measurement Period after date of hire, an employee’s hours will also be tracked using the (Standard) Look Back Measurement Method.
• The employee’s hours will continue to be tracked using both the Monthly Measurement Method and the Look Back Measurement Method until the last day of the first Standard Measurement Period after hire.
• On the last day of the first Standard Measurement Period after hire, the new employee becomes an “ongoing” employee.
• When the new employee becomes an “ongoing” employee, the employee’s hours will be tracked using only the Look Back Measurement Method. The Monthly Measurement Method will no longer be used for this employee.

1.C. Seasonal Employees

A seasonal employee for purposes of this policy is defined as one in a position for which the customary annual employment is six months or less. “Customary” means an employee who typically works each calendar year in approximately the same part of the year, such as summer or winter.

If RC Willey Home Furnishings hires an employee who falls within the definition of a Seasonal employee, the employee, whether or not expected to work full time at the time of hire, will be treated differently from other newly hired employees reasonably expected to work full time. When newly hired, the seasonal employee will have his or her hours tracked using the Measurement Method RC Willey Home Furnishings elected under Section 1.A.

1.D. Employer Discretion to Change Measurement Method and Period Elections for Future Years

For future years, RC Willey Home Furnishings may change the categories of employees for whom it will apply the Monthly Measurement Method or the Look Back Measurement Method, or may elect to use a Look Back Measurement Period, Administrative Period or Stability Period of a different length or with a different start date than indicated above. However, that election to change methods will be effective only as of the first day of a Standard Measurement Period, and not in the middle of a measurement cycle.

Section 2: Monthly Measurement Method

2.A. The measurement period for the Monthly Measurement method will be the calendar month. This method applies (temporarily) to new-hires who at the time of hire are reasonably expected to be full time. RC Willey Home Furnishings will track hours each calendar month under the Monthly Measurement Method by counting “hours of service” (hours actually worked and hours for which the employees is paid even though not actively at work) from first of the month through the last day of the month.

An employee who at the time of hire is reasonably expected to be full time will be eligible for coverage effective no later than the first day of the month following 60 days of eligible employment as described in Section 1.B. If thereafter, an employee continues to work at least 130 hours of service within each month, the employee will remain eligible for coverage through the Monthly Measurement Method.

If an employee who is enrolled in the employer’s group health plan and whose hours are being tracked using the Monthly Measurement Method, works fewer than 130 hours per month for two consecutive calendar months may cease to be eligible as of the first day of the next calendar month, but may become eligible again under this method if hours increase to at least 130 within a subsequent month(s).

Section 3: Look-Back Measurement Method

3.A. General Definitions Applicable to Look-Back Measurement Method:

• Measurement Period - A period of 12 months wherein employee hours are tracked in order to identify the average hours worked.
• Administrative Period – A period of time, usually between the Measurement Period and Stability period, to calculate employee hours tracked during the Measurement Period, identify full-time employees, communicate with eligible employees, and process enrollments/terminations. The STANDARD administrative period will be 2 months and the INITIAL administrative period will be 1 and a partial month.
• Stability Period – A period of 12 months during which employees who were identified as averaging at least 130 hours per month during the Measurement Period are eligible for coverage.
• Standard Measurement/Administrative/Stability Periods – used for ongoing employees.
• Initial Measurement/Administrative/Stability Periods – used for newly hired employees unless the employee at the time of hire is reasonably expected to work full time, as explained in Section 1.B.

3.B. Ongoing Employees

RC Willey Home Furnishings has made the following elections regarding the Measurement, Administrative and Stability Periods in the STANDARD Look-Back Measurement Method for ONGOING employees:

• RC Willey Home Furnishings has opted to use a 12 month Standard Measurement Period starting on August 1, 2014 and ending on July 31, 2015. This will repeat each year.
• RC Willey Home Furnishings has opted to use a 2 month Standard Administrative Period starting on August 1, 2015 and ending on September 30, 2015. This will repeat each year.
• RC Willey Home Furnishings has opted to use a 12 month Standard Stability Period starting on October 1, 2015 and ending on September 30, 2016. This will repeat each year.

The Standard Measurement/Administrative/Stability periods will continuously repeat. For example, when the Standard Measurement Period starting August 1, 2014 ends on July 31, 2015, a new Standard Measurement Period will start August 1, 2015.

3.C. New Hires

1) New Hires Who Are Reasonably Expected to Work Full-time:

As described in Section 1.B., until a newly hired full-time employee who is reasonably expected at date of hire to work full-time becomes an ongoing employee, the Look Back Measurement Method will not be used. RC Willey Home Furnishings will temporarily track these employee hours using the Monthly Measurement Method even though the Look-Back Measurement Method would otherwise apply, and will offer coverage on: first day of the month following 60 days of eligible employment. RC Willey Home Furnishings will continue to track hours on a Monthly basis using the Monthly Measurement Method until the new employee becomes an “ongoing” employee as described in Section 1.B.

2) All Other New Hires, NOT Reasonably Expected to Work Full-time:

RC Willey Home Furnishings has made the following elections regarding the Measurement, Administrative and Stability Periods for the INITIAL Look-Back Measurement Method for NEWLY HIRED employees who at the time of hire are not reasonably expected to work full-time including those who meet the seasonal employee definition under Section 1.C.

• Initial Measurement Period: RC Willey Home Furnishings has opted to use a 12 month Initial Measurement Period which will begin the first day of the month after the newly hired employee starts working.
• Initial Administrative Period (split): RC Willey Home Furnishings has opted to use a 1 month (plus a partial month) Initial Administrative Period which will be split into two parts. Part 1 is a partial month beginning on date of hire and ending on the last day of the month, the day before the Initial Measurement Period begins (e.g. if employee starts working March 10, Part 1 of the Initial Administrative Period would be March 10 to March 31). Part 2 is the full month immediately after the last day of the Initial Measurement Period but before the Initial Stability Period begins.
• Initial Stability Period: RC Willey Home Furnishings has opted to use a 12 month Initial Stability Period which will start immediately after the associated Initial Administrative Period ends. Health coverage will be offered to employees whose hours averaged 130 hours or more per month during the associated Initial Measurement Period. Coverage will be effective on the first day of the Initial Stability Period and will continue the full 12 months, even if hours fall below the threshold during those 12 months.

The combined passage of time between a newly hired employee’s start date and the date the newly hired employee is offered health coverage (if eligible) will not exceed more than 13 months, plus an additional partial month. In other words, the Initial Measurement Period and the Initial Administrative Period combined will not exceed 13 months, plus an additional partial month.

In addition to tracking hours through the Initial Measurement Period, new hires will also have their hours tracked through the first Standard Measurement Period that starts after the date of hire, i.e. for a limited period of months, both the Initial Look Back and the Standard Look Back Measurement Methods will be used at the same time. After one full Initial Measurement/Administrative/Stability period is complete, a newly hired employee becomes an ongoing employee. RC Willey Home Furnishings will stop using the Initial Measurement period and continue tracking hours using only the Standard Measurement Period.

Section 4: Treatment of Employees Who Leave and then Return to Work Under Both the Monthly Measurement Method and Look-Back Measurement Method

4.A. Employees Returning from Paid Leave

When using the Look Back Measurement Method and/or the Monthly Measurement Method to track employee hours, an employee’s “hours of service” will include hours of paid leave (e.g. sick or vacation time) used by an employee during a Month or during a Look Back Measurement Period even though the employee did not actually work those hours.

4.B. Employees Returning from Regular Unpaid Leave
This section explains how, under the Measurement Methods, RC Willey Home Furnishings will determine whether employees returning from unpaid leave are identified as “ongoing employees” or “newly- hired employees.”

4.B.i. Determining Employee Status Upon Return from Regular Unpaid Leave

• RC Willey Home Furnishings is using The Rule of Parity to determine whether the returning employee is still an “ongoing” employee or whether the employee should be identified as a “newly hired” employee.
• For employees whose hours are currently measured using the Look-Back Measurement Method:
• Unpaid Leave for More than 13 Weeks: An employee who returns from unpaid leave of more than 13 consecutive weeks will be considered a newly hired employee upon return to work and hours will be measured using the Initial Look Back Method.
• EXCEPTION: See Section 1.B for special temporary treatment of a newly hired employee reasonably expected to work full time upon return to work.
• Unpaid Leave for 4 Weeks or Less: An employee who returns from unpaid leave of not more than 4 consecutive weeks will be considered an ongoing employee upon return to work and will be placed back in the Standard Measurement and Stability Period he/she was in before the break
• Unpaid Leave for between 4-13 Weeks:
• Considered a newly hired employee: If the number of unpaid weeks is greater than the number of weeks worked prior to the unpaid absence: employee is considered newly hired and hours will be measured using the Initial Measurement Period beginning on the date the employee has at least one paid hour of work after returning from unpaid leave.
• EXCEPTION: See Section 1.B for special temporary treatment of a Newly Hired employee reasonably expected to work full time upon return to work.

• Considered an ongoing employee: If the number of unpaid weeks is less than the number of weeks worked prior to the unpaid absence: employee will be considered an ongoing employee and will be placed back in the Standard Measurement/Stability Period he/she was in before the break.
• For newly hired full time employees whose hours are currently measured using the Monthly Measurement Method pursuant to Section 1.B but will thereafter have hours tracked using the Look Back Measurement Method:
• Unpaid Leave for More than 13 Weeks: An employee who returns from unpaid leave of more than 13 consecutive weeks will be considered a newly hired employee upon return to work and hours will be measured using the Monthly Measurement Method.
• Unpaid Leave for 4 Weeks or Less: An employee who returns from unpaid leave of not more than four consecutive weeks will be considered an ongoing employee upon return to work and hours will be measured using the Monthly Measurement Method. However, because hours will be tracked using the Monthly Measurement Method, no prior service hours will be credited unless an employee returns within the same month the employer left.
• Unpaid Leave for between 4-13 Weeks:
• Considered a newly hired employee: If the number of unpaid weeks is greater than the number of weeks worked prior to the unpaid absence: employee is considered newly hired and hours will be measured under the Monthly Measurement Method beginning on the date the employee has at least one paid hour of work after returning from unpaid leave.
• Considered an ongoing employee: If the number of unpaid weeks is less than the number of weeks worked prior to the unpaid absence, employee will be considered an ongoing employee and hours will be measured using the Monthly Measurement Method. However, because hours will be tracked using the Monthly Measurement Method, unless an employee returns within the same month the employer left, no prior service hours will be credited.

Rule of Parity

Length of unpaid leave:

• More than 13 weeks
• Treat as a new hire, count only hours of service after return from leave.
• More than 4 weeks and up to 13 weeks
• Treat as an ongoing employee, if hours on leave are less than hours of service prior to leave.
• Treat as a new hire, if hours on leave are more than hours of service worked prior to leave.
• Not more than 4 weeks
• Treat as an ongoing employee, and count hours of service before and after the leave.

4.B.ii Determining Timing of Benefits Upon Return from Regular Unpaid Leave

• For Those Identified as an Ongoing Employee – If determined under 4.B.i to be an ongoing employee upon return, hours will be measured using the appropriate Measurement Method he/she was in before the break as described above
• If an employee returns to work and he/she is identified as a full-time employee (after calculating the average monthly hours worked during the appropriate Measurement Method), the employee will be offered coverage immediately (as soon as administratively feasible, and no later than the first day of the next month—there is no waiting period) and will be treated as a full-time employee through the end of the Standard Stability Period (if using the Look Back Measurement Method) or through the end of the month (if using the Monthly Measurement Method).
• If an employee returns to work and he/she is identified as a part-time employee (after calculating the average monthly hours worked during the appropriate Measurement Method), the employee need not be offered coverage immediately. Instead, the employer would continue to track hours and will calculate again at the end of the current measurement period to determine eligibility.
• For Those Identified as a Newly-Hired Employee – If determined under Section 4.B.i to be a newly-hired employee upon return, no prior hours of service will be credited. Hours will be measured using the appropriate Measurement Method for newly hired employees as described in Section 1 beginning on the date the employee had at least one paid hour of work after returning from the break.

4.C Employees Returning from Special Unpaid Leave

• FMLA or other “Special” Leave: An employee returning from “special unpaid leave” due to FMLA, military duty or jury duty will be considered an ongoing employee upon return, regardless of the amount of weeks absent, and the employee will be placed back in the applicable measurement method.

• Hours of service accumulated prior to the absence will be credited, and hours of service during the absence will also be credited, as if the employee had not been absent, based on average hours actually worked prior to absence. Note: It is only under “special unpaid leave” that an employee will be credited for hours of service for which the employee was not paid and was not at work. Employees on other types of unpaid leave will not receive credit for hours absent.

After calculating the average monthly hours worked during the appropriate measurement method, when an employee returns to work, if he/she is identified as a full-time employee, the employee will be offered coverage immediately (as soon as administratively feasible, and no later than the first day of the next month) and will be treated as a full-time employee through the end of the Standard Stability Period (if hours are being tracked under the Look Back Measurement Method) or through the end of the month (if hours are tracked under the Monthly Measurement Method).