2   Compensation & Performance

Wage & Salary Policies
  Call Back Pay
  Computing Pay
  Deductions From Paycheck (Mandatory)
  Deductions (Other) / Direct Deposit
  Docking From Wages
  Error In Pay
  Overtime Pay
  Pay Period & Hours
  Reporting Time Pay
  Shift Premium
  Termination & Severance Pay
  Time Cards / Records
  Wage Assignments (Garnishments)

Performance & Compensation Reviews
  Performance Reviews
  Compensation Reviews

Work Schedule
  Absence Or Lateness
  Attendance
  Breaks / Rest Periods
  Closure After Starting Time
  Closure Prior To Starting Time
  Excessive Absenteeism Or Lateness
  Lunch Period
  Lunch Room Facility
  Record Of Absence Or Lateness
  Wash-Up Time


                     Wage & Salary Policies

(Company) has developed policies to insure wages and salaries
comparable to those of other employees with similar jobs at
(Company) or in our industry.  Our wage and salary policy is
designed to attract and retain the best-qualified people
available.

To carry out this policy, we periodically compare our wage and
salary policy with community rates for similar positions using
appropriate published information from sources like statewide
business organizations, local chambers of commerce, state and
national organizations, various management reports, and various
local, state and federal agencies.

You are employed by (Company) and will be carried directly on our
payroll.  No person may be paid directly out of petty cash or any
other such fund for work performed.  The only exception to this
policy is where a contract relationship exists with a bona fide
contractor.


Call Back Pay

[] For phone availability / beeper status, some "on-call"
compensation should be considered.

[] State law may specify minimum call-in / call-back times.  In
some states, a minimum of 4 hours pay is required.  Actual time
worked may be less, and overtime rates may apply.  Check with
your attorney on your state and local laws regarding this and
modify this policy accordingly.

Occasionally, you may be asked to return to work after you have
left the premises for the day.  If this occurs, you will be
guaranteed a minimum of two (2) hours of pay.  If you work longer
than two (2) hours, you will be paid for the time you actually
work.


Computing Pay

[] This policy applies to salaried employees only.

Should you be one of our "salaried" employees whose pay is not
based on an hourly rate, there may be times when it is necessary
to compensate you for some daily or hourly pay.  When this is
necessary, (Company) will compute your time on the basis of [an
eight (8) hour workday/ a forty (40) hour work week/ a fifty-two
(52) week work year/ a twelve (12) month work year].


Deductions From Paycheck (Mandatory)

[] Mandatory deductions include federal, state and local income
tax withholding, certain state disability deductions, authorized
deductions for health/life insurance, and tax deferrals.

(Company) is required by law to make certain deductions from your
paycheck each time one is prepared.  Among these are your
federal, state and local income taxes and your contribution to
Social Security as required by law.  These deductions will be
itemized on your check stub.  The amount of the deductions may
depend on your earnings and on the information you furnish on
your W-4 form regarding the number of dependents/exemptions you
claim.  Any change in name, address, telephone number, marital
status or number of exemptions must be reported to your manager
or XXX (Title/Department) immediately, to ensure proper credit
for tax purposes.  The W-2 form you receive for each year
indicates precisely how much of your earnings were deducted for
these purposes.

Any other mandatory deductions to be made from your paycheck,
such as court-ordered attachments, will be explained whenever
(Company) is ordered to make such deductions.  Some states may
require other payroll deductions.

Note:  See "Wage Assignments (Garnishments)" later on in this
section for further information.


Deductions (Other) / Direct Deposit

It may be possible for you to authorize (Company) to make
additional deductions from your paycheck, such as for Christmas
Clubs, credit union loan payments, payroll savings plans, etc.,
or to deposit your paycheck directly into your savings or
checking account at a participating bank.  Contact XXX
(Title/Department) for details and the necessary authorization
forms.


Repayment Of Company Loan / Payroll Advance

Funds you owe to (Company) may be deducted from current wages
according to the terms and conditions agreed upon at the time of
your advance or loan from (Company).

Note:  See "Payroll Advances" in the "Other Policies" section of
this Manual for further information.


Docking From Wages

[] This is a very rigid policy, so you may choose to omit it.
Instead, you may simply notify an employee by memo if you feel
they are not reporting for work as scheduled or agreed.  If you
do include a policy of this nature, be prepared to enforce it.

The wages of any "non-exempt" employee who is tardy for work will
be "docked" for the time not worked.  Three incidents of lateness
during a 90-day period will be considered a "tardiness pattern"
and will result in disciplinary action in addition to the
"docking" of pay.  A record of all lateness and absenteeism is
maintained in your personnel file.

Note:  See "Excessive Absenteeism Or Lateness" under "Work
Schedule" later on in this section for further information.


Error In Pay

Every effort is made to avoid errors in your paycheck.  If you
believe an error has been made, tell your manager immediately.
He or she will take the necessary steps to research the problem
and to assure that any necessary correction is made properly and
promptly.


Overtime Pay

[] This policy applies to "non-exempt" employees only.

[] Overtime pay for work in excess of 8 hours per day is only
required in certain states.  Check with your attorney on state
and local laws regarding overtime and modify this policy
accordingly.

[] You may have the option of offering a 4-day, 10-hour per day
work week without paying overtime.  Again, check with your
attorney on state and local laws and modify this policy
accordingly.

From time to time, it may be necessary for you to perform
overtime work in order to complete a job on time.  All overtime
must be approved in advance by your manager.  When it is
necessary to work overtime, you are expected to cooperate as a
condition of your employment.  There are two types of overtime
work:

1. Scheduled Overtime:  Scheduled overtime work is announced in
advance and generally will involve an entire department or
operation.  This type of overtime becomes part of the required
workweek of the people who are members of the department or
operation.  If you need to be excused from performing scheduled
overtime, speak with your manager.  He or she will consider your
situation and the requirements of the department or operation in
deciding whether you may be excused from performing the scheduled
overtime.

2. Incidental Overtime:  Incidental overtime isn't scheduled, it
becomes necessary in response to extenuating circumstances.  It
is extra time needed to complete work normally completed during
regular hours.  Incidental overtime may become necessary when an
illness or emergency keeps co-workers from being at work as
anticipated.  It may require you to return to the workplace for
emergency work.  The opportunity to perform incidental overtime
will be given first to the employee who normally performs the
task.  If that employee cannot perform the overtime, the manager
will offer the overtime to a suitably qualified person who is
available to perform the overtime work.

If you are a "non-exempt" employee and you perform overtime work,
you will be paid one and one-half (1-1/2) times your regular
hourly wage for any time over eight (8) hours per day or forty
(40) hours per week that you work.  If, during that week, you
were away from the job because of a job-related injury, paid
holiday, jury duty, vacation taken in single-day increments, or
paid sick time, those hours not worked will be counted as hours
worked for the purpose of computing eligibility for overtime pay.


Work Performed On Company Holidays

[] We've provided three sample policies for you to consider;
choose whichever paragraph best suits your company's needs.

[] This first sample provides for a rate of 1.5 x wage for hours
worked on a company holiday.

Full-time "non-exempt" employees who work on a Company holiday
will be deemed to have worked overtime on that day and will be
paid their overtime rate for hours worked regardless of the
number of hours they work that work week.

    -- OR --

[] This second sample provides for a rate of 2 x wages for hours
worked on a company holiday.

Full-time "non-exempt" employees who work on a Company holiday
will be deemed to have worked overtime on that day and will be
paid their double-time rate for hours worked regardless of the
number of hours they work that work week.

[] This third sample provides for a rate of 1.5 x wage for hours
worked on a company holiday in addition to the normal wages for a
paid holiday.(1x pay + 1.5x pay = 2.5x pay for working on a
Company holiday)

Full-time "non-exempt" employees who work on a Company holiday
will receive their normal wages for the paid holiday, plus they
will be paid their overtime rate for hours worked on the Company
holiday regardless of the number of hours they work that work
week.

Note:  See "Holiday Policies" in the "Benefits" section of this
manual for further information.


Pay Period & Hours

[] State when your work week starts and ends -- indicate the
cut-off time for each pay period.

[] We have provided three sample pay cycle policies for you to
consider; choose whichever paragraph best suits your company's
needs, or modify the text as necessary.

Our payroll workweek begins on Sunday at 12:01 a.m. and ends on
Saturday at 12:00 midnight.


Pay Cycle

Fiscal Pay Period / Bi-weekly:

(26 pay periods per year) Payday is normally on every other
Friday afternoon for services performed for the two (2) week
period ending the previous Saturday at 12:00 midnight.

    -- OR --

Fiscal Pay Period / Weekly:

(52 pay periods per year) Payday is normally on Friday afternoon
for services performed for the one (1) week period ending the
previous Saturday at 12:00 midnight.

    -- OR --

Calendar Pay Period / Semi-Monthly:

(24 pay periods per year) Payday is normally on the 5th and the
20th of every month for services performed for the period ending
five (5) days previous -- the end of the prior calendar month and
the 15th of the month respectively.

Changes will be made and announced in advance whenever (Company)
holidays or closings interfere with the normal payday.


Paycheck Distribution & Cashing Procedures

[] Include the paycheck distribution and cashing procedures
applicable for your company and delete the other options listed.

Paychecks are:

     distributed by your manager.

     placed in your "In" basket.

     available at the Cashier's window, after noon on payday.

     mailed to your home address.

     directly deposited to the checking or savings account you
     specify.

     handed to you on the way out the door after your shift.

     (on XXX day).

Paychecks may:

     not be cashed at (Company).

     be cashed at the Cashier's window, M-F from XXX-XXX o'clock.

     be cashed at any register with enough cash to do so.

     be used for employee purchases.

     be cashed at the "Employee" register.


Reporting Time Pay -- Inclement Weather & "Acts Of God"

[] We have provided three sample policies for you to consider;
choose whichever one best suits your company's needs.

In the event you report for work without being notified in
advance that we are temporarily closed due to special
circumstances, you will receive a minimum of two hours of
straight time pay.  Special circumstances include inclement
weather, fire, flood or some other "Act of God", power/utility
failure, an inoperable computer system, or lack of work.  You may
be asked to perform other available work for the two (2) hour
period.  If you refuse, you will forfeit your claim to reporting
pay.  This policy applies to our "non-exempt" employees only.

    -- OR --

In the event that inclement weather, power/utility failure, fire,
flood or some other "Act of God" keeps us from operating, you
will receive your regular pay for up to a maximum of three
workdays, provided (Company) officially declares that it is
closed for that time.  Every effort will be made to provide you
with advance notice in the event we will be closed.

[] Some local radio stations may cooperate by announcing business
closings as a result of natural causes.  This may allow your
employees to hear the news and contact your company before coming
to work.  Delete this reference if it does not apply to your
situation.

Please tune to your radio station XXX (provide the station that
broadcasts your closing notices under these circumstances) for
updates on current conditions.

    -- OR --

Unfortunately, you will not be paid when work is not available
due to circumstances not within (Company)'s control; the
following are examples of such circumstances.

* Operations cannot commence or continue due to threats to
employees or property or when recommended by civil authorities.

* Public utilities fail to supply electricity, water, or gas, or
there is a failure in the public utilities, or sewer system.

* The interruption of work is caused by an "Act of God"
(inclement weather, fire, flood, earthquake, avalanche, etc.) or
some other cause not within (Company)'s control.


Shift Premium

[] Depending on the industry, state law, or union influence, the
rate of pay may or may not vary by shift.

[] Paying a "Shift Premium" is not part of base pay and therefore
disappears if the employee's shift changes to a normal shift.

(Company) assigns certain employees to work on a second or third
shift operation.  These people may be paid an additional amount
per hour over and above the regular rate of pay for that job as a
shift premium.


Termination & Severance Pay

[] Two weeks severance is typical after 1 year, but it's not
required and establishes a precedent.

[] In most states, accrued vacation must be paid to employees
being terminated.

[] Check with your attorney on your state and local laws and the
effects of the terminology (i.e.  "Pay in Lieu of Notice" versus
"Severance Pay") used here -- it may impact your employee's
ability to apply for unemployment compensation.

[] Use caution when you decide on your severance policy -- to
avoid grounds for discrimination claims, decide on a severance
policy that will apply in all cases (or choose never to pay
severance).  Don't "qualify" employees or leave it up to
management's discretion.

[] Be sure your Vacation policy specifies how vacation time
accrues and how you pay for accrued vacation time unused at the
time of employment termination.

(Company) hopes and expects that you will give at least two weeks
notice in the event you intend to leave our employ.  Any accrued
but unused vacation time will be paid at the time of employment
termination, as specified under "Vacations" in the "Benefits"
section of this Manual.

    -- OR --

Severance pay is provided to give you a reasonable opportunity to
secure another position without interruption of income.  If
(Company) releases you for any reason other than a policy
violation and, if you have been employed by (Company) for more
than one (1) year, you will receive severance pay in an amount
equal to two (2) weeks of your regular wage, less any
unemployment or Workers' Compensation benefits.

    -- OR --

(Company) does not pay severance pay.  When you leave (Company),
you will be paid for actual time worked, plus any accrued but
unused vacation time, as specified under "Vacations" in the
"Benefits" section of this Manual (optional:  and any accrued but
unused sick time, as specified under "Sick Leave" in the
"Benefits" section of this Manual).


Time Cards / Records

[] Rules should prohibit employees from recording another's time,
causing another employee to record time for him or her, or
failing to record his or her time.  They should also forbid
signing in too soon or out too late without authorization.
"Falsifying" time cards is considered theft of time and should be
considered cause for dismissal.

[] You must keep some sort of record of hours worked by
"non-exempt" employees.  Early sign-ins or late sign-outs will
make you liable for overtime pay in case of a conflict or dispute.

By law, we are obligated to keep accurate records of the time
worked by "non-exempt" employees.  This is done by either time
clock cards or other written documentation.

Your time card is the only way the payroll department knows how
many hours you worked and how much to pay you.  Your time card
indicates when you arrived and when you departed.  You are to
punch in and out for lunch and for brief absences like a doctor's
or dentist's appointment.  All employees are required to keep the
office advised of their departures from and returns to the
premises during the work day.

You are responsible for your time card.  Remember to record your
time.  If you forget to punch in or make an error on your card,
your manager must make the correction and you and your manager
must initial the correction.  You are not permitted to punch in
more than six (6) minutes before your scheduled starting time nor
more than six (6) minutes after your scheduled quitting time
without your manager's approval.

No one may record hours worked on another's card.  Tampering with
another's time card is cause for disciplinary action, including
possible dismissal, of both employees.  Do not alter another
person's record, or influence anyone else to alter your record
for you.  In the event of an error in recording your time, report
the matter to your manager immediately.


Wage Assignments (Garnishments)

[] Some state laws may supersede Federal laws, so check with your
attorney and modify this policy as necessary.

We hope you will manage your financial affairs so that we will
not be obligated to execute any court-ordered wage assignment or
garnishment against your wages.  However, whenever court-ordered
deductions are to be taken from your paycheck, you will be
notified.

According to the Federal Wage Garnishment Act, three (3) or more
garnishments may be cause for dismissal.

Note:  See "Deductions From Paycheck (Mandatory)" earlier in this
section for further information.


               Performance & Compensation Reviews

Performance Reviews

[] Set standards for performance to assure fairness and avoid
discrimination charges.

[] If your company conducts compensation reviews simultaneously
with performance reviews, edit this policy accordingly and delete
the policy on "Compensation Reviews" later on in this section.

Your manager is continuously evaluating your job performance.
Day-to-day interaction between you and your manager should give
you a sense of how your manager perceives your performance.

However, to avoid haphazard or incomplete evaluations, (Company)
conducts a formal review [once, twice, four times] a year for
each employee.

[] Specify the timing and frequency of performance reviews;
choose one of the three samples provided below, or modify the
text as necessary.

Performance reviews will be conducted annually on or about each
employee's anniversary date.  New employees may be reviewed more
frequently.  A review may also be conducted in the event of a
promotion or change in duties and responsibilities.

    -- OR --

Performance reviews will be conducted semi-annually in XXX and
XXX (months/seasons).  New employees may be reviewed more
frequently.  A review may also be conducted in the event of a
promotion or change in duties and responsibilities.

    -- OR --

Performance reviews will be conducted quarterly in the months of
XXX, XXX, XXX and XXX (names of months).  New employees may be
reviewed more frequently.  A review may also be conducted in the
event of a promotion or change in duties and responsibilities.

During formal performance reviews, your manager will consider the
following things, among others:

*   Attendance, initiative and effort

*   Knowledge of your work

*   Attitude and willingness

*   The quality and quantity of your work

*   The conditions under which you work

The primary reason for performance reviews is to identify your
strengths and weaknesses in order to reinforce your good habits
and develop ways to improve in your weaker areas.  This review
also serves to make you aware of and to document how your job
performance compares to the goals and description of your job.
This is a good time to discuss your interests and future goals.
Your manager is interested in helping you to progress and grow in
order to achieve personal as well as work-related goals --
perhaps he or she can recommend further training or additional
opportunities for you.

In addition to individual job performance reviews, (Company)
periodically conducts a review of job descriptions to insure that
we are fully aware of any changes in the duties and
responsibilities of each position, and that such changes are
recognized and adequately compensated.


Compensation Reviews

[] A compensation review often follows a performance appraisal,
and is intended to determine if a raise is warranted.  This
policy is essential -- some employees would rather quit than ask
for a raise.

[] Review compensation either on the anniversary of employment or
during a set annual (or semi-annual or quarterly) period,
depending on position.  (The sample policy below assumes an
annual compensation review; modify it as necessary if you choose
to have more frequent reviews.)

[] Don't commit yourself to cost-of-living increases unless
required by a union contract.  Make all raises based on merit.

Wage and salary increases are based on merit alone, not
length-of-service or the cost-of-living.  Having your
compensation reviewed does not necessarily mean that you will be
given an increase.

(Company) conducts compensation reviews annually on or about each
employee's anniversary date, following their performance review.
Any wage or salary increases will appear in the pay period ending
after the dates they are granted.  Wage and salary increases may
be retroactive in the case of late reviews, at the discretion of
the President.


                          Work Schedule

The normal workweek consists of five (5) days, eight (8) hours
long, Monday through Friday.  Your schedule of daily work hours
will be given to you by your manager, or posted at XXX, at least
XXX days/weeks ahead.  You will be notified promptly whenever a
change is necessary.  Should you have any questions concerning
your work schedule, please ask your manager.


Absence Or Lateness

From time to time, it may be necessary for you to be absent from
work.  (Company) is aware that emergencies, illnesses, or
pressing personal business that cannot be scheduled outside your
work hours may arise.  Sick days and personal days have been
provided for this purpose.

If you are unable to report to work, or if you will arrive late,
please contact your manager immediately.  Give him or her as much
time as possible to arrange for someone else to cover your
position until you arrive.  If you know in advance that you will
need to be absent, you are required to request this time off
directly from your manager.  He or she will determine when will
be the most suitable time for you to be absent from your work.

When you call in to inform (Company) of an unexpected absence or
late arrival, ask for your manager directly.  For late arrivals,
please indicate when you expect to arrive for work.  Notifying
the switchboard operator or a fellow-employee is not sufficient.
If you are unable to call in yourself because of an illness,
emergency or for some other reason, be sure to have someone call
on your behalf.  If your manager is not available when you call,
you may leave the information with another manager.

Absence from work for three (3) consecutive days without
notifying your manager or the personnel administrator will be
considered a voluntary resignation.


Attendance

You are expected to be at your work station and ready to work at
the beginning of your assigned daily work hours, and you are
expected to remain at your work station until the end of your
assigned work hours, except for approved breaks and lunch.  When
your work takes you away from your work station, please let your
manager know where you are going and how long you expect to be
gone.

Be aware that "excessive" time off could lead to disciplinary
action.

Note:  See "Excessive Absenteeism Or Lateness" later on in this
section for further information.


Breaks / Rest Periods

You are entitled to two (2) fifteen (15) minute rest breaks each
day.  Normally these rest breaks will be scheduled in mid-morning
and mid-afternoon.  These will be determined by your manager.  If
you work in a department where breaks are not directly assigned,
please coordinate with your co-workers to maintain adequate
coverage at all times.  Always be sure to return to work on time
at the end of any break.

In the unlikely event of an emergency or unusual condition, your
manager may ask you to change or postpone your break in order to
finish a particular project.


Closure After Starting Time

If severe weather conditions exist and the President (or
designated representative) decides to close (Company) for the
remainder of the day, you will be notified as soon as possible by
your manager.  If you are sent home before having worked two (2)
hours, you will be paid for two (2) hours of work.  If you are
sent home after having worked two (2) hours, you will be paid for
the time that you actually worked.

If your manager asks that you remain at work after (Company) has
closed because of severe weather conditions, you will be paid at
time and one-half for the remaining hours that you work beyond
the announced closing time.


Closure Prior To Starting Time

[] Be sure this policy is consistent with your policy on
"Reporting Time Pay."

If you report to work and find that, due to severe weather
conditions, (Company) will unexpectedly be closed for business,
you will be paid for two (2) hours of work for that day only.


Excessive Absenteeism Or Lateness

[] Be sure this policy is consistent with your policy on "Docking
From Wages."

In general, five (5) absences in a 90-day period, or a consistent
pattern of absence, will be considered excessive, and the reasons
for the absences may come under question.  Tardiness or leaving
early is as detrimental to (Company) as an absence.  Three (3)
such incidents in a 90-day period will be considered a "tardiness
pattern" and will carry the same weight as an absence.  Other
factors, like the degree of lateness, may be considered.

Be aware that excessive absenteeism, lateness or leaving early
may lead to disciplinary action, including possible dismissal.

Note:  See "Docking From Wages" under "Wage & Salary Policies"
earlier in this section for further information.


Lunch Period

[] State laws vary on this; some states allow up to 5 1/2 hours
work without requiring a lunch break.  Check with your attorney
and modify this policy accordingly.

If you work longer than four (4) hours, you will be given an
unpaid lunch period.  The time when lunch periods are scheduled
varies among departments, depending on the needs of each
department.  Your manager will give you your lunch period
schedule.

You are expected to take your full allotted time for lunch.  You
are requested not to perform any work during your regularly
scheduled lunch period, unless specifically requested to do so by
your manager.  In that event, your lunch will be rescheduled or
you will be paid for the time that you worked.

You may leave the premises during your lunch period, however, you
must [punch in and out / sign in and out].  It is important to
return to work on time at the end of your lunch period.


Lunch Room Facility

For your convenience and comfort, (Company) provides a [cafeteria
/ lunch room] equipped with several vending machines, ample
seating, microwave ovens and a refrigerator for employees who
want to bring their lunch from home.  This area is for everyone's
use.  It is your responsibility to do your share in keeping this
facility clean and sanitary.  Please clean up after yourself.

If for any reason the machines are not functioning properly or
you are dissatisfied with the service, please report the
condition to your manager.  Please remember to use containers
with reliable seals and label your food with your name and date.

Food stored in the refrigerator for a period of more than XXX
days will be disposed of.

-- OR --

The refrigerator is cleaned out every XXX (day, i.e.  Friday).


Record Of Absence Or Lateness

If you are absent because of illness for three (3) or more
successive days, your manager may request that you submit written
documentation from your doctor.  If you are absent five (5) or
more days because of illness, you may be required to provide
written documentation from a doctor that you are able to resume
normal work duties before you will be allowed to return to work.
You will be responsible for any charges made by your doctor for
this documentation.

Your manager will make a note of any absence or lateness, and the
reason, in your personnel file.  Your attendance record will be
considered when evaluating requests for promotions, transfers,
leaves of absence, and approved time off, as well as scheduling
layoffs, etc.


Wash-Up Time

[] This policy is a little "tight" and harkens back to the days
of the Industrial Revolution.  As a forward-thinking company, you
may not want this policy in your manual.  However, it has been
included in EmployeeManualMaker for you to consider and to use,
modify, or delete as you choose.

Shop employees are permitted to use the last fifteen (15) minutes
of their shift to wash up.  Shower facilities are available for
personal use at shift end.

You are not permitted to wash up on company time prior to
your lunch or rest breaks.

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