Employee Handbook Addendum Attendance Guidelines & Notification Procedure

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1 Employee Handbook Addendum Attendance Guidelines & Notification Procedure Every employee must be responsible for good attendance and make an effort to be at work every day and on time. If we are to reach our goals of on-time delivery, quality, and customer satisfaction, we must do whatever we can to minimize absences. Unscheduled time away from work results in lost wages for you, and loss of support for your work team, placing an added burden on them to carry your workload. We have established a goal of 2% maximum absenteeism for our plant. The following guidelines are established to achieve fairness and consistency across all areas of the plant in managing to this goal: Unscheduled paid time off in excess of 40 hours within a rolling 12 months counts as an absence for absentee calculation. The following absences are not counted against the absentee calculation: Jury Duty, Military Leave, Bereavement, STD Leave, FMLA, Paid Time Off, No Work Unpaid Time, Weather in the case of a State of Emergency and Workers Comp absences. If you know in advance that you have to be off work or leave early for an appointment, you must let your supervisor know in advance. All appointments should be scheduled during non-working hours whenever possible. If this is not possible, the appointments need to be scheduled late in the day so that you miss a minimum amount of work. Most appointments of any kind should not require you to miss an entire shift of work. If you are going to be unexpectedly late or absent, you must report your absence by calling You must state your name, the reason for your absence, how long you expect to be away from work, when you expect to return, and a phone number that you can be reached. You must report your absence every day you will be away from work. Call-ins must be made before your scheduled shift on the day of the absence. Failure to report an absence or tardiness may result in disciplinary action. Failure to report for work without calling in as required for three (3) consecutive work days ( 3 day no call, no show ) will be considered a voluntary resignation and will result in loss of employment. Attendance is part of your performance and will be addressed as any other performance issues. When we notice a trend approaching 2%, we will begin to discuss the situation with you. Disciplinary action will be taken as necessary up to and including separation for continued poor attendance (Calling your Supervisor to report an unplanned absence is optional, but you are required to call to officially report the absence.) Documentation will only be necessary if required to satisfy Family and Medical Leave, benefit eligibility or if requested by the company for other specific reasons. If calling in for FMLA, please state that in your message when reporting an absence. Mutual trust, teamwork, and a focus on satisfying customer needs are keys to running a successful business. We need your support in fulfilling these goals.

2 Employee Handbook Addendum Cash Compensation and Paid Time Off Base Hourly Rate for New Hires Shift pay and certified position pay will not be reflected in the base wage $13.40 New Hire $ Month Increase Overtime Overtime is paid after 40 hours worked per pay period Shift Premium Shift Shift Premium 1 st None 2 nd $1.35 (Night premium) 3 rd $1.35 (Night premium) 4 th A & 4 th B $2.60 (36 hour work week) Employees working outside of normal shift times will be paid their regular pay. Voluntary overtime on alternate shift would not receive other shift premium. Employees who are required by their supervisor to temporarily transfer to an alternate shift would receive the alternate shift premium. Employees working Saturday and Sunday would be paid per normal overtime rule. Certified Position premiums will follow the employee when they work in alternate jobs. It would be adjusted for permanent job changes only. New direct employees begin receiving their shift premium upon hire date. Certified Position Pay Position Premium Expert Rework $1.50 Rework $0.60 Box Build Advanced $0.60 Sr. SMT Operator $0.60 Bereavement Pay You may receive up to 24 hours of bereavement pay for the death of the immediate family members, as defined below. Bereavement hours will be based on regular work schedule. Up to 24 hrs. total Spouse, Child, Mother/Father, Sister/Brother, Mother-in-law/Father-in law, Grandson/Granddaughter, and Son-in-law/Daughter in-law 1 scheduled work day Grandmother/Grandfather, Brother-in-law/Sister-in-law, and Niece/Nephew

3 Holidays For each holiday, direct full-time regular employees are paid their hourly base wage + applicable premiums for shift/certified position. 1 st & 2 nd shift Support & Indirect 8 hours 3 rd shift 8 hours 4 th shift A & 4 th shift B 12 hours New Year s 1/1/18 New Year s Eve 12/31/17 New Year s 12/31/17 Good Friday 3/30/18 Easter Sunday 4/1/18 Easter Sunday 4/1/18 Memorial 5/28/18 Memorial 5/27/18 Memorial 5/27/ Holidays Independence 7/4/18 Independence 7/4/18 Labor 9/3/18 Labor 9/2/18 11/22/18 11/21/18 Labor 9/2/18 after 11/23/18 after 11/22/18 after (4 th shift only) 11/23/18 Eve / Floating 12/24/18 Eve / Floating 12/24/18 Eve 12/23/18 3 rd shift to work 12/28/18 instead of 12/23/18 and 1/4/2019 instead of 12/31/18 4B to work instead of , instead of , instead of , & /25/18 12/25/18 Eve (4 th shift B only) 12/24/18 Paid Time Off (PTO) Regular full-time employees in the U.S. are eligible for Paid Vacation Time/Paid Time Off as determined by years of Kimball full-time service. Paid Time Off is intended to be used for planned and pre-approved time away from work, but if desired, the employee may also use paid vacation time for unplanned illness (self or family) or other personal reasons at the general discretion of the employee. Unplanned paid time off will go towards the employee s attendance percentage after 40 hours in a rolling 12- month period. Unused paid time off (PTO) will be paid out by the last payroll in December for direct employees. Full-time employees, separated for either voluntary or involuntary reasons, are not eligible to receive compensation for any unused Paid Time Off. PTO will be granted per employee handbook for time before 1 year service. After which, the following schedule will apply for all employees. The schedule is pro-rated for 4 th Shift employees. Years of Service 1 st, 2 nd, & 3 rd Shift 4 th Shift Paid Time Off # Hrs Paid Time Off # Hrs

4 Employee Handbook Addendum Work Week Definition Kimball Electronics defines work week by shift. All paycheck stubs will state Monday through Sunday dates. It is important to note the following: Sunday night for ALL 3 rd shift employees rolls forward to Monday as that is the start of the work week. Timecards are viewable in Workday for all hourly employees. This is the official time record. Pay Period Start Pay Period End Normal Normal Start Hours Time Typical Work Schedule Office Monday 12:00am Sunday Midnight variable Monday Friday 1st 5x8 Monday 12:00am Sunday Midnight 40 6:00am Monday Friday 2nd 5x8 Monday 12:00am Sunday Midnight 40 2:00pm Monday Friday 3rd 5x8 Sunday 6:00pm Sunday 5:59pm 40 10:00pm Sunday night Thursday night 4 th A 3x12 Monday 12:00am Sunday Midnight 36 6:00am Friday Sunday 4 th B 3x12 Monday 12:00am Sunday Midnight 36 6:00am Saturday Monday Personal Music Devices Effective Monday, March 8, 2010 KEJ allows personal music devices on the shop floor. Listed below are guidelines to be followed. Personal music device guidelines: Only IPOD or MP3 player type equipment may be used. Cell phones cannot be used as a music playing device on the shop floor. The personal music device must be kept underneath ESD smock. Music is to be heard through ear buds and not by neighboring employees. Only one ear bud may be in use as the second ear must be free to hear co-workers, announcements and warnings. The 2nd ear bud must be inside the smock (either inside the collar or in the pocket). Personal music devices may not be used by forklift drivers and in areas where forklifts may travel such as Shipping, Receiving, Finished Goods, recycle area, the aisle between stockroom and parts prep, HMLV Assembly area #8, aisle to the stockroom, and along incoming receiving areas. Music may not be downloaded through the company computers for personal use. Charging of the music devices must be done outside of the workplace. Personal music devices shall be turned off during meetings and conferences. Music devices are not to be used during on-the-job training period(s). If you have questions regarding the appropriate use of the personal music devices, contact the HR or Safety Managers. KEJ reserves the right to make changes at any time to these guidelines, including eliminating the use of personal music devices.

5 Cell Phones Personal cell phones are strictly prohibited on the production floor. The use of personal cell phones for picture taking is strictly prohibited in our Operations areas. Pictures taken in the office area or break areas shall not include equipment, product, or documentation. Please keep cell phones and smart watches in your locker or in your vehicle. Employees with company issued cell phones or cameras are not allowed to take pictures of military product or technical data unless the ITAR procedure is followed. Nor are employees allowed to send photos or customer information for use outside of the KEJ facility without following the KEJ ITAR Procedure. Devices with cameras are strictly prohibited on the production floor. Violators may be disciplined, up to and including separation. FOD (Foreign Object Debris) Unapproved non-manufacturing items are not allowed within manufacturing areas, including: Food Drinks Chewing Gum Balloons Flowers Tobacco Cough Drops These items are restricted due to the risk posed to the customer s products. Dress Code Indirect and Support Staff Smart Casual Monday Friday Hats are prohibited in the office Production Staff Appropriate work attire No open-toed or open-heeled shoes on shop floor No sock hats/beanies/tuques/knit caps, etc. allowed on the shop floor Please avoid Short shorts (Shorts and skirts may be worn provided the length extends to 3 above the knee) Low-cut tank tops and spaghetti straps Loose clothing that could be caught in the production line Hats & clothing that have offensive writing on them Exposure of undergarments

6 Inclement Weather In the rare case that adjustments in the work schedule or closing of the facilities should take place, we will broadcast the announcement over the One Call Now, our 3rd party automated calling solution system and if possible, WITZ AM FM radio and WFIE News 14 TV stations. In order to receive direct communication from our 3rd party automated communications system, you must sign a release form. This form can be obtained from the H.R. Dept. If you do not hear a work schedule adjustment within two hours prior to the start of your work shift, consider work to occur as planned. In the event of severe weather, but not such at the time warrants closing the facility, we will make every attempt to find work for those that can make it to work. The ability to run even a portion of our production will help us to meet our customers delivery requirements. If the county has been placed in a state of emergency everyone should stay off the road except in case of an extreme emergency. The county does not consider going to work to fit within this category, so a state of emergency will be considered a work closing whether you hear an announcement or not. Please find the county weather advisory considerations below: 1. When a weather advisory has been issued, that is telling everyone to prepare for bad road conditions. 2. If the weather service is stating the roads are slick and hazardous, travel at your own risk. 3. If the county is in a state of emergency, don t attempt to drive until the emergency status has been lifted. Tobacco Policy To protect and enhance our air quality and to contribute to the health and well-being of all employees, we maintain a tobacco/nicotine-free work environment. The use of tobacco/nicotine products including E Cigarettes and Vapor Pens is not allowed anywhere within our facilities. Tobacco/Nicotine use on Kimball property is only permitted in specifically designated areas. Smoking is prohibited in all of the enclosed areas within Kimball Electronics, without exception. This includes common work areas, the manufacturing facilities, conference and meeting rooms, private offices, hallways, breakrooms, stairs, restrooms, employer owned or leased vehicles, and all other enclosed facilities. Effective Monday, July 9, 2018 the only designated smoking area on Kimball Electronics property is outdoors, on the far north wall at the back of KEJ Plant #1, within the designated area. No one may smoke along any path way or walk way leading to or from the designated smoking area, nor may employees smoke at the picnic tables outside of the designated smoking area, nor outdoors in any of the grassy areas or the parking lots. Additionally, employees and visitors may smoke in their personal vehicles, but the smoke and tobacco products must be completely contained within the vehicle. It is not acceptable that either smoking or non-smoking employees are subjected to smoke while walking to their vehicle or any other destination on the Kimball Electronics Jasper premises. While Kimball Electronics Jasper makes this area available to smokers, it in no way has any legal responsibility to do so. Employees who choose to use these smoking areas do so at their own risk.

7 No additional breaks are allowed to any employee who smokes. Finally, smokers and users of tobacco products must dispose of the remains in the proper containers. This helps to keep a neat and clean environment for all employees and our visiting partners and customers. Failure to comply with all of the components of this policy will result in disciplinary action that can lead up to and include separation of employment.