Employee Handbook. Revised 02/06/2012

Transcription

1 Employee Handbook Revised 02/06/2012

2 Welcome to Highwoods Properties! We are excited to have you as a vital member of our team. We are as committed to developing high quality teams as we are to developing, managing, and leasing high quality properties. Our commitment begins with providing you the necessary information and tools to carry out your responsibilities. We are proud of our history and accomplishments, and we know our continued success and future growth depends on the collective contributions of our employees. Each employee is an integral part of the Highwoods culture of providing the best service possible to our customers. Our success is a direct result of treating people with respect and inspiring performance that exceeds the expectations of our customers. Your skills and talents, and your ability to share them with others, are important assets to the Company. Indeed, it is the collective talents and dedication of each employee that distinguishes Highwoods from other commercial real estate companies. We hope that this handbook will be a useful source of information about our Company, benefits, programs, and policies. Please feel free to ask questions, share concerns, or express ideas to your manager, our Human Resources team, or any member of management. Sincerely, Edward J. Fritsch President & Chief Executive Officer U:\Data\HNBK FINAL VERSION 02/06/12

3 TABLE OF CONTENTS SECTION I. YOUR HANDBOOK AND ITS USE...1 SECTION II. ABOUT THE ORGANIZATION...1 A. COMPANY PROFILE...1 B. MISSION STATEMENT...2 C. VISION STATEMENT...2 D. EQUAL OPPORTUNITY EMPLOYER...2 E. ADA POLICY...2 F. ORIENTATION...3 G. EMPLOYEE INPUT...3 H. PERSONAL DATA CHANGES...3 I. TEAMWORK...4 J. EMPLOYEE COMMUNICATIONS/ACTIVITIES...4 SECTION III. YOUR JOB...5 A. ATTENDANCE...5 B. COMPENSATION Paychecks Pay Stub Direct Deposit Overtime Employee Referral Bonus Holiday Pay Garnishments & Child Support Orders Final Paychecks for Resigning or Terminated Employees...7 C. PERFORMANCE REVIEWS...7 D. INTERNAL TRANSFERS...8 E. WORK HOURS...8 F. TELEPHONES...8 U:\Data\HNBK FINAL VERSION 02/06/12 i

4 SECTION IV. EMPLOYEE BENEFITS...9 A. HOLIDAYS Holiday Pay Schedule Religious Holidays...10 B. VACATION...10 C. HEALTH INSURANCE...11 D. FLEXIBLE REIMBURSEMENT ACCOUNT (SECTION 125 PLAN)...11 E. ILLNESS...12 F. SHORT-TERM & LONG-TERM DISABILITY INSURANCE (STD/LTD)...13 G. SALARY CONTINUANCE...13 H. WORK RELATED INJURIES/ILLNESS...13 I. LEAVE Bereavement Leave Jury Duty Personal Leave of Absence Military Leave Family and Medical Leave Act (FMLA)...15 J. LIFE AND ACCIDENTAL DEATH & DISMEMBERMENT INSURANCE...23 K. BUSINESS TRAVEL INSURANCE...23 L. 401(K) RETIREMENT SAVINGS PLAN...23 M. EMPLOYEE STOCK PURCHASE PLAN (ESPP)...24 N. SOCIAL SECURITY...24 O. EDUCATIONAL ASSISTANCE...24 P. LIBERTY MUTUAL AUTO AND HOMEOWNERS INSURANCE...26 Q. CREDIT UNION MEMBERSHIP...26 R. AFLAC...26 S. COMPUTER/TABLET DEVICE PURCHASE LOAN...26 T. SERVICE AWARDS PROGRAM...26 U. NOTARY PUBLIC...27 SECTION V. POLICIES...27 A. CONDUCT...27 U:\Data\HNBK FINAL VERSION 02/06/12 ii

5 1. Use of Company Name Housekeeping Food and Drink Press Releases and News Media Personal Visitors...27 B. CODE OF BUSINESS CONDUCT Recordkeeping and Financial Reporting Insider Trading and Confidentiality Proper Use of Highwoods Assets Customers, Vendors and Competitors Conflicts of Interest Government Relations Business Entertainment and Gifts Health and Safety Respect for Each Other Reporting Ethical Violations Discipline...38 C. APPEARANCE...38 D. DRUG/ALCOHOL USE...39 E. INCLEMENT WEATHER...40 F. PARKING...41 G. PROPERTY SEARCHES...41 H. WEAPONS...41 I. SMOKING...41 J. COMPANY PROPERTY...42 K. ELECTRONIC COMMUNICATION...42 L. INTERNET USAGE...43 M. EXPENSE REIMBURSEMENT...43 N. USE OF PERSONAL AUTOMOBILES FOR COMPANY BUSINESS...44 O. NEPOTISM...44 P. DISCIPLINE/TERMINATION...45 Q. FORM I-9 POLICY...47 U:\Data\HNBK FINAL VERSION 02/06/12 iii

6 R. HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT...47 S. DRIVING GUIDELINES POLICY...57 T. GOVERNMENT REQUIRED BACKGROUND CHECKS...59 SECTION VI. PARTING COMPANY...59 A. LAYOFF...60 B. RESIGNATION/RETIREMENT...60 C. EXIT INTERVIEW...60 EXHIBIT 1 EARNING CODE DESCRIPTIONS...61 A FINAL WORD...63 ACKNOWLEDGMENT OF RECEIPT OF HANDBOOK...64 U:\Data\HNBK FINAL VERSION 02/06/12 iv

7 SECTION I. YOUR HANDBOOK AND ITS USE This handbook summarizes some of our policies and may be used as a guide during your employment. There are practices, policies, procedures, and general information that cannot be completely covered in the handbook. If you have questions about your employment, you should contact your manager, a member of Human Resources, or a Company officer. Because we cannot anticipate all things that may happen in our business, we will interpret, amend, modify, make exceptions to, and/or withdraw any or all sections or provisions of this handbook at any time as we deem necessary without prior notice. This handbook supersedes and replaces any previous Company policy statements. This handbook is subject to change to comply with all applicable federal, state, and local laws and court interpretations. In the event of any inconsistency between this handbook and any applicable law or interpretation, the law or interpretation will prevail. SECTION II. ABOUT THE ORGANIZATION A. Company Profile Highwoods Properties, Inc. is a leader in developing, managing and leasing commercial real estate properties throughout the Southeast and in the Midwest. Our quality office and industrial properties, located in vibrant, growing communities, and the attention we give to serving the needs of our customers, showcase our success story. Highwoods was founded in Raleigh, North Carolina in 1978 by a small group of local businessmen, including Temple Sloan, current Chairman of Highwoods board of directors, and Ron Gibson, Highwoods original CEO who retired June Building on its reputation for quality service and quality products, Highwoods went public in 1994 and is now the largest owner and operator of suburban office properties in the Southeast. Throughout the history of its growth, Highwoods operating objectives have remained constant. These objectives are to: Develop, lease and manage quality suburban office and industrial properties in office park settings; and retail properties in high-end markets. Maintain and enhance the Company s service delivery system; Maintain the highest standards of credibility exemplified by absolute honesty and integrity; Recognize the contributions each employee makes within Highwoods; Continue to align the interests of our employees with those of our shareholders, focusing upon a common goal of maximizing shareholder value; U:\Data\HNBK FINAL VERSION 02/06/12 1

8 Position the Company through our financial structure to capitalize on opportunities that enhance shareholder value; and Maintain and enhance our leadership position within the commercial real estate industry. Highwoods is a fully integrated, self-administered real estate investment trust (REIT). We are traded on the New York Stock Exchange under the ticker symbol HIW. Highwoods is based in Raleigh, North Carolina, and manages, owns and operates properties throughout the Southeast and in the Midwest. B. Mission Statement We are an integrated real estate company that owns and operates properties in local communities for the benefit of our customers and shareholders. C. Vision Statement We will develop and acquire the best properties, managed by the best people, and operate our portfolio to achieve maximum profitability. We support and develop a team of employees whose skills, commitment, and values exemplify the highest quality of performance to the Company, our customers, co-workers, and shareholders. D. Equal Opportunity Employer Highwoods is and will continue to be an equal opportunity employer. Highwoods will make all of its employment decisions for non-discriminatory reasons and without regard to race, color, religion, national origin, sex, citizenship, age, disability, status as a disabled veteran or veteran of the Vietnam era, sexual orientation, marital status, or any other protected characteristic as established by law. Highwoods has zero tolerance for any violation of this policy. Any employee who believes he or she has experienced or witnessed any conduct in violation of this policy should report that violation to Human Resources or to a Company Officer. Highwoods will conduct a prompt investigation of any such report and will take whatever corrective action necessary according to its investigation to preserve its zero tolerance policy, up to and including termination of employment. Highwoods cannot guarantee confidentiality of any report under this policy, but it will maintain the confidentiality of any such report to the maximum extent possible in light of its investigation commitment. E. ADA Policy The Company complies with all applicable provisions of the Americans with Disabilities Act ( ADA ) and applicable state and local law providing for non-discrimination in employment against qualified individuals with disabilities. Consistent with its equal employment opportunity policy, the Company does not discriminate against qualified U:\Data\HNBK FINAL VERSION 02/06/12 2

9 employees or applicants with regard to any terms or conditions of employment because of such individual s disability so long as the employee can perform the essential functions of the job in which they work or for which they are applying. Consistent with this policy, the Company will (1) ensure that applicants with disabilities are treated nondiscriminatory in the pre-employment process and that employees with disabilities are treated nondiscriminatory in all terms, conditions, and privileges of employment, (2) keep all medical information confidential in accordance with the requirements of the ADA and in separate confidential files; and (3) provide reasonable accommodations to employees with disabilities, except where such an accommodation would create an undue hardship on the Company. An employee with a disability who believes he or she needs a reasonable accommodation to perform the essential functions of his or her job should contact the Human Resources Department. On receipt of an accommodation request, a member of the Human Resources Department will contact the employee to discuss and identify the precise limitations resulting from the disability and the potential accommodation that the Company might make to help the employee overcome the limitations. F. Orientation Each employee is an integral part of the Highwoods culture of providing local service and support to our customers. We introduce Highwoods policies, procedures, and culture to our newest team members through a new hire orientation. Sharing information and answering questions that new employees may have about Highwoods culture and expectations helps new employees focus on their responsibilities and promotes success. G. Employee Input Highwoods is a service organization and, as such, our success is determined by customer satisfaction. Well enough is never good enough. Whatever exists today must be better tomorrow. To achieve this, the full participation of every employee is needed. We look to you for continuous input to improve the quality of our products and our service. Highwoods has an open door policy and encourages you to consult with your manager about any concerns you may have. If for any reason you are uncomfortable going to your manager or are dissatisfied with your manager s response, you should go to the next level of management and through successive levels of management until comfortable or satisfied, up to and including the highest levels of management. You may also go directly to the Human Resources Department at any time. H. Personal Data Changes Highwoods keeps personnel records of its employees as may be required by law or are considered essential for the efficient operation of our business. You must report any changes in personal data promptly to Human Resources. Any change in family status must be communicated to HR within 30 days of the change in order to timely effect a U:\Data\HNBK FINAL VERSION 02/06/12 3

10 corresponding change in insurance benefits (medical, dental, life, etc.). The personal status changes that require reporting are listed below: I. Teamwork Name all name changes must be accompanied by a copy of your updated Social Security Card showing your new name (including changes due to marriage or divorce) Home Address Home telephone number Emergency contact notification information (name, address, phone number, and relationship) Marital status--include spouse s name, if applicable Name(s), birth date(s), and the relationship of legal dependents Formal education, degree(s) attained, course(s) completed and other training or skills acquired--submit a copy of diploma or certificate of completion Physical or other condition(s) that limits your ability to perform the essential functions of your position. Benefit plan beneficiary(ies) Changes in family and/or dependent status affecting your benefits, i.e., birth or adoption of a baby. Highwoods consists of numerous operating divisions supported by staff departments that are mutually dependent upon one another, as is the success of the organization. The importance of teamwork and cooperation among individual employees and divisions/departments cannot be over-emphasized. The capacity to achieve the Company, individual and divisional/departmental goals is determined by you, the individual team member. Your energy, efficiency, and effectiveness will assure the continued successful operation of Highwoods. J. Employee Communications/Activities Highwoods will make every effort to keep its employees informed about significant events taking place through regular employee meetings and other employee communications, such as the Company Newsletter, In the Woods. Particular care is taken to ensure employee awareness of business transactions in a timely manner. U:\Data\HNBK FINAL VERSION 02/06/12 4

11 SECTION III. YOUR JOB A. Attendance It is essential for you to have good attendance and to be on time for work and business appointments. By reporting to work every day and on time, you are making an important contribution to the efficient and smooth operation of Highwoods. Good work habits are a sign of your dependability and add to your desirability as an employee. We realize, however, that situations may arise that will prevent you from coming to work. On those occasions when you will be out of work for any reason, or will be arriving late, please contact your manager as soon as possible prior to your normal starting time. You are expected to personally speak with your manager regarding all absences or delays and to maintain contact with your manager during your absence. In the event of an emergency and/or hospitalization, an immediate family member should contact your manager. If you are absent three (3) or more consecutive working days, Highwoods requires a physician s statement, or other appropriate documentation, to verify your inability to work or to allow you to return to work. If you do not report to work for three (3) consecutive working days and do not contact your manager during your absence, you will be automatically removed from the payroll. Any absence during regularly scheduled work hours creates a hardship on the Company and your fellow employees. Consequently, frequent absences, frequent tardiness, or failure to call in may result in disciplinary action, up to and including termination. B. Compensation 1. Paychecks All Highwoods employees are paid on a bi-weekly basis, that is, every other Friday. All regularly scheduled employees are paid current, meaning your biweekly paycheck includes payment for your scheduled hours during the current week and for the prior week. Adjustments in the work schedule, including overtime, absences, etc., are reconciled in the following pay period. When a payday falls on a holiday, paychecks will be distributed on the last workday preceding the holiday. Highwoods does not authorize pay advances. A payroll calendar is distributed to employees annually listing pay dates and scheduled holidays. 2. Pay Stub The pay stub explains how your pay was computed by detailing your compensation rate, taxes paid and authorized deductions. Exhibit 1 defines many frequently used codes. U:\Data\HNBK FINAL VERSION 02/06/12 5

12 3. Direct Deposit This program automatically deposits your pay into the financial institution(s) of your choice that is able to process the electronic transfer of funds. Most banks, savings & loans, and credit unions have this capability*. All employees are expected to participate in this program. To arrange direct deposit, see the explanations and enrollment forms on HR Direct or contact Human Resources. *Direct Deposit helps you and the Company save time by eliminating bank lines and the processing of live checks. 4. Overtime Employees must obtain management approval prior to working overtime. In accordance with applicable state and federal wage and hour laws, non-exempt employees will be paid one and one-half times their normal hourly rate for all time worked over 40 hours in a workweek. All non-exempt employees are required to complete time sheets indicating sick time, vacation time, and all other time off. Non-exempt employees are also required by law to report all overtime hours worked. For this purpose, the Highwoods workweek is Sunday, 12:00 a.m. through Saturday, 11:59 p.m. Only hours actually worked, holiday, vacation, sick time, jury duty, bereavement leave and Workers Compensation absences will count towards the required 40 hours. Normal working hours not worked due to Highwoods inability to provide work, will not count towards the required 40 hours. At the end of a pay period, your overtime should be approved by your manager and forwarded to Payroll. Overtime is recorded to the nearest quarter of an hour and paid in the pay period following the period in which the overtime is worked. 5. Employee Referral Bonus You may have friends, professional acquaintances or neighbors who are interested in joining Highwoods. This program will help Highwoods identify qualified applicants and will pay you up to $1,000 when a referral you make results in a hire. This is how it works: (1) If the applicant you have referred is hired, you will receive $400 on the first payday after the new hire s start date. The candidate must indicate on the application that you referred him/her, or you must attach a letter of reference to his/her resume when you submit it to HR for consideration. U:\Data\HNBK FINAL VERSION 02/06/12 6

13 (2) You will receive an additional $300 payment when the new hire you referred completes six (6) months of service. (3) You will receive an additional $300 payment when your referral completes twelve (12) months of service. (4) Both you and the new employee must be actively employed by Highwoods at each of the designated intervals in order for the bonus to be paid. (5) Current or former employees or anyone who is employed by Highwoods in either a contractor or temporary status do not qualify for referral. (6) Officers of the Company, hiring managers, Human Resources Representatives, and any other employee in a position to influence the hiring decision are excluded. 6. Holiday Pay If you are a non-exempt employee and it is necessary for you to work on a holiday, you will be paid time and one-half for hours worked plus your holiday pay. 7. Garnishments & Child Support Orders When an employee s wages are garnished by a court order, Highwoods is legally bound to withhold the amount indicated in the garnishment order from the employee s paycheck. Highwoods will, however, honor federal and state guidelines that protect a certain amount of an employee s income from being subject to garnishment. 8. Final Paychecks for Resigning or Terminated Employees If you resign or are terminated, your final paycheck will be mailed during the next normal pay period, or as required by state law. If there are unpaid obligations to the Company, the final paycheck will reflect the appropriate deductions. C. Performance Reviews Your personal and professional development is essential to the continued success of Highwoods. It is important that you and your manager have the opportunity to discuss your performance. Your performance appraisal is an ongoing process at Highwoods and your manager will provide feedback on a regular basis. After days of employment, your manager will complete a Day Performance Evaluation which is intended as a means of measuring the progress of a newly hired, transferred, or promoted employee. U:\Data\HNBK FINAL VERSION 02/06/12 7

14 Once a year, you and your manager will make a written and oral appraisal of your performance. This process begins with a self-evaluation that gives you an opportunity to provide input about your own performance. It emphasizes that you and your manager share responsibility for performance and your continued development. During the selfevaluation, you are encouraged to review your performance over the last year and use the narrative section of your self-evaluation as the basis for your discussion with your manager. When completing the self-evaluation, highlight your achievements, discuss any concerns you have had, and consider how your manager can help you. Your manager will then complete his or her section of the evaluation. During your second meeting with your manager, you will have the opportunity to discuss your performance and to establish your specific objectives for the coming year. Where there are differences of opinion, there should be some candid discussion of both you and your manager s perspectives so there is a mutual understanding and a positive environment for improvement. Your individual objectives for the next year should be aligned with, and support, your department s and the Company s objectives. Your goals should be SMART: specific, measurable, ambitious, realistic, and time-bound. The intent of this process is to actively involve you in the review process and to create one that facilitates two-way communication. D. Internal Transfers You may apply for job openings within the Company after completing 9 months of service in your current position. This requirement provides opportunity for employees when openings occur, while allowing for continuity/stability in existing positions. Exceptions to the 9 month rule may be made in the event of intra-departmental promotions/transfers. E. Work Hours Regular, full-time employees are expected to work 40 hours per week, exclusive of one unpaid hour for lunch each working day. Where indicated in this Employee Guide, regular, full-time employee refers to an employee who works 40 hours per week, unless otherwise noted. Typical work hours are 8:00a.m. 5:00p.m. Monday Friday. The duties of some jobs may require a different work schedule and will be established/approved by your manager. F. Telephones The telephone is one of our most valuable business tools. Highwoods is a customer service oriented organization. The way a telephone is answered can greatly affect the caller s total impression of our Company. Every caller should receive a prompt, courteous response at the other end of the line. Good telephone manners greatly enhance the Highwoods image and our success. Therefore, you should treat every call that comes in as if it were extremely important - because it is! Personal calls while at work should be U:\Data\HNBK FINAL VERSION 02/06/12 8

15 kept to a minimum. If it is necessary to place a long distance call from the office, you should use a personal phone card to do so. SECTION IV. EMPLOYEE BENEFITS A. Holidays 1. Holiday Pay Employees who regularly work at least 40 hours per week will receive 8 hours pay for any Company recognized holiday. Eligible part-time employees who regularly work at least 20 hours and less than 40 hours per week will receive pay on a prorated basis if he/she is regularly scheduled to work the day on which the holiday falls. The payment will be calculated by comparing the employee s regularly scheduled hours to a 40-hour, five-day week, and will be prorated accordingly. When an observed holiday falls on a regular working day within the time an employee is on vacation, the employee will be paid for the holiday. The holiday will not be counted as a vacation day. If the holiday falls on a day of the week which the employee is not regularly scheduled to work, the employee s manager will work with the employee to arrange alternate time off. 2. Schedule New Year s Day Good Friday Memorial Day Independence Day Labor Day Thanksgiving Christmas Personal Holiday One Day One Day One Day One Day One Day Two Days Two Days One Day A holiday falling on Saturday will likely be observed on Friday and a holiday falling on Sunday will likely be observed on Monday. Employees are allowed to take one day per year as a personal holiday. Scheduling of this holiday should be done through the on-line absence reporting system (OARS). This holiday may not be taken in partial day increments. Management retains the right to make deviations to the holiday schedule. U:\Data\HNBK FINAL VERSION 02/06/12 9

16 3. Religious Holidays B. Vacation We recognize that some employees may wish to observe religious holidays that are not included in the Company s holiday schedule. You may arrange to take a day off for religious reasons by giving advance written notice to your manager. Every effort will be made to accommodate your request as long as your absence will not create an undue hardship. Such time off may be unpaid or may be charged against accrued vacation or your personal holiday. Employees become eligible for vacation after completing one month of employment. Employees earn one vacation day per full month worked, up to a maximum of 10 days per calendar year. Employees may borrow against their current calendar year vacation eligibility prior to the days being fully earned. When the first day of service occurs after November 15 in any given year, no vacation will accrue for the balance of the first calendar year of employment. Accrual will begin in January of the following calendar year. Regular part-time employees, working a minimum of 20 hours per week, will accrue vacation days in the same manner as full-time employees. Days accrued will be proportionate to their normal workday, i.e., an employee who normally works six hours per day will be paid vacation based on a 6-hour vacation day. On your fifth anniversary with Highwoods Properties, Inc., as a full-time employee, you will receive an additional 5 days of vacation per year. You will be eligible for these five additional days at the beginning of each new calendar year thereafter. Similarly, on your tenth anniversary, you will receive an additional 5 days of vacation eligibility. Regular part-time employees will accrue additional vacation on their fifth and tenth service anniversaries proportionate to their normal workday. < 1 year of service 1 day per each full month to a max of years of service 2 weeks per year 5-9 years of service 3 weeks per year 10 or more years of service 4 weeks per year U:\Data\HNBK FINAL VERSION 02/06/12 10

17 Vacation is intended to be used in the year it is earned. Carry-overs are permitted only when work requirements make it necessary. Your manager, the Director of Human Resources and the Chief Operating Officer must approve written requests for carryover. Your vacation days must be requested and approved through the on-line absence reporting system (OARS) and scheduled through your manager to ensure adequate departmental coverage. Vacation may be taken in a minimum of one-hour increments. Vacation requests will be honored on the basis of service. If you terminate your employment, you will be paid for earned, unused vacation time. Unless leave is pursuant to another approved policy, vacation may not be taken after you have given notice of your resignation. If you terminate your employment after having used unearned vacation, those days may be deducted from your final check calculated at the rate of one day per month according to the vacation policy. Under certain circumstances, you may be allowed to donate up to 2 vacation days per year, 1 day per occurrence, to another employee in need. The vacation donation policy is intended to assist an employee who, by virtue of a serious health or medical-related absence or family emergency, has depleted their sick and vacation eligibility. The donation will decrease your available vacation time for the current calendar year. You will be notified of approved circumstances in which you may donate vacation time. Once approved, your donation should be documented on a Vacation Donation Form, which is available from Human Resources, and given to payroll for processing. Your donation will remain anonymous. C. Health Insurance Highwoods provides health insurance for all employees who are regularly scheduled to work a minimum of 30 hours per week, and currently pays the full cost of the employee s insurance and shares the cost of dependent coverage. Due to escalating insurance costs, it may become necessary to periodically evaluate and adjust Highwoods contribution to this benefit and the plan provisions. Subject to the terms and provisions of the Company s Group Health Plan, you will be eligible for health insurance 30 days following the date you begin your employment. Changes in coverage may only be made during open enrollment, unless there is a qualifying event, such as a change in family status, as defined under the terms of the plan. The details of the plan are provided during New Hire Orientation. The insurance plan booklets and summary plan description may also be found on HR Direct and are available from Human Resources. The plan complies with all provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). D. Flexible Reimbursement Account (Section 125 Plan) This benefit consists of three components, and eligible employees, working a minimum of 30 hours per week, may participate after 30 days of employment. U:\Data\HNBK FINAL VERSION 02/06/12 11

18 Medical Reimbursement - Qualified expenses up to $3,000 per year can be paid with pre-tax dollars. Dependent Care - Expenses up to $5,000* per year can be paid with pre-tax dollars. *Additional IRS regulations apply to certain participants. Premium Conversion - Allows health insurance premiums to be withheld on a pre-tax basis. No sign-up necessary as this is an automatic component of the plan. Changes in coverage may only be made during open enrollment, unless there is a qualifying event, such as a change in family status, as defined under the terms of the plan. The details of the plan are provided during New Hire Orientation and are available from Human Resources and on HR Direct. The plan complies with all provisions of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). E. Illness There may be times when it is necessary for you to be absent from work. When it does happen, we ask that you notify your manager as soon as possible prior to your normal starting time so plans can be made to avoid possible disruption of work and inconvenience to your fellow employees. All regular, full-time employees, working 40 hours per week, earn sick time at the rate of one-half day (four hours) per full month worked, up to five days per calendar year. Unused sick time may not be carried over to another year. Employees may borrow against their current calendar year sick eligibility prior to the days being fully earned. Part-time employees who regularly work a minimum of 20 hours per week will accrue sick days on the same basis as full-time employees based on their regularly scheduled work day, i.e., an employee who normally works six hours a day will earn three hours of sick time per month. Sick time is to be recorded through the on-line absence reporting system (OARS) and may be taken in a minimum of one hour increments. When returning from absences of three or more days, you are required to provide medical, or other appropriate, documentation. If you terminate your employment after having used unearned sick time, those days may be deducted from your final check calculated at the rate of one-half day per month according to the sick policy. Earned, unused sick days are not paid upon termination of employment. You may be paid for time away from work when your immediate manager authorizes the absence. The absence may be due to one of the following reasons: personal illness or injury, illness in your immediate family (spouse or children), U:\Data\HNBK FINAL VERSION 02/06/12 12

19 weather/transportation problems, child care problems, a doctor s appointment, or other reasonable personal business. F. Short-Term & Long-Term Disability Insurance (STD/LTD) All regular full-time employees working 30 hours or more per week are eligible for shortterm disability (STD) and long-term disability (LTD) insurance 30 days after date of hire. Premiums are paid in full by Highwoods. As with any disability or medical leave of three or more days, both STD and LTD require a supporting physician s statement. During your first 3 years of employment with Highwoods, STD will provide 50% of your base pay for up to 13 weeks of disability, after a 7 day waiting period, to a maximum benefit of $1,000 per week. After 3 years of employment, benefit eligibility increases to 66 2/3% of your base pay. LTD begins after 13 weeks of disability and will provide 60% of your base pay, to a maximum of $15,000 per month. The details of the plan are provided during New Hire Orientation and are available from Human Resources and on HR Direct. G. Salary Continuance Regular, full-time employees working 30 hours or more per week earn one week of salary continuance for every full year of employment with Highwoods. This program may be used to supplement your qualified short-term disability benefits (STD). When combined, STD and Salary Continuance will provide benefits at your regular base pay rate. Funds are provided from our STD insurance carrier and from Highwoods payroll. Details of the plan are provided during New Hire Orientation and are available from Human Resources and on HR Direct. H. Work Related Injuries/Illness I. Leave If you are injured while working for Highwoods or develop an illness that you suspect is related to your work, notify your manager and Human Resources immediately, regardless of the severity of the injury or illness. 1. Bereavement Leave Highwoods recognizes that a death in your family may require you to spend time away from work. You will be paid for up to three days for family deaths involving your (birth/step/adoptive) parents, brothers, sisters, spouse, children, grandparents and U:\Data\HNBK FINAL VERSION 02/06/12 13

20 the equivalent members of your spouse s family. Payment is not provided for non-scheduled workdays or holidays. If you need additional time off, you should contact your manager and submit a request to Human Resources. The Company intends to exercise the greatest degree of understanding in such difficult times, and it is anticipated that you will also use your best judgment. 2. Jury Duty Regular full-time employees who are called for jury duty will receive their regular pay and benefits while on jury duty. Should the jury be excused early, you are expected to return to work. You may retain your jury duty compensation. Verification of the time served on jury duty or as a court witness must be obtained from the bailiff or clerk s office and submitted to Human Resources along with your request for pay when you return to work. 3. Personal Leave of Absence A personal leave of absence without pay, not to exceed 30 days, may be granted in unusual circumstances to regular full-time employees who have worked at Highwoods continuously for at least one year. A personal leave of absence must be requested in writing through your Manager, Division Head, and Human Resources, and must be approved by the Chief Operating Officer. Employees must use all eligible accrued, unused vacation, sick, and other accumulated paid time off before requesting an unpaid personal leave of absence. In addition, employees may be required to use such leave of absence concurrent with FMLA and/or military leave. You are not permitted to work elsewhere for pay during a leave of absence. Employees who violate this guideline will be terminated. The only exceptions are in the event of military leave or jury duty. As an employee on leave of absence without pay, you are not eligible for holiday pay, nor will you continue to accrue sick or vacation time. You may continue your coverage under the medical and dental plans by making the required contributions by check. Contributions to the 401(k) and ESPP will not be permitted while you are on unpaid leave. Highwoods intends to provide you with the opportunity to return to work in the position you held at the time of leaving, if available, or to a comparable position for which you are qualified, if vacancies exist. 4. Military Leave Consistent with applicable law, military leave will be granted to employees to fulfill an annual active duty Armed Forces Reserve or National Guard U:\Data\HNBK FINAL VERSION 02/06/12 14

21 commitment, or if called to active duty due to a civil disturbance, or natural disaster. Highwoods will pay the difference between a regular full-time employee s Highwoods compensation and military pay for up to 10 days per year. Additional military leave will be granted as needed if an employee is called to active duty for reasons other than those stated above, but the employee will not receive compensation from Highwoods. Where required by applicable law, employees returning from military leave will be reinstated to a position comparable to their former position. 5. Family and Medical Leave Act (FMLA) Highwoods Properties will comply with the Family and Medical Leave Act implementing Regulations as revised effective January 16, The company posts the mandatory FMLA Notice and upon hire provides all new employees with notices required by the U.S. Department of Labor (DOL) on Employee Rights and Responsibilities under the Family and Medical Act. The company also posts the DOL supplementary information concerning Military Family Leave at the same location. The function of this policy is to provide employees with a general description of their FMLA rights. In the event of any conflict between this policy and the applicable law, employees will be afforded all rights required by law. If you have any questions, concerns, or disputes with this policy, you must contact the Director of HR in writing. General Provisions Under this policy, Highwoods properties will grant up to 12 weeks (or up to 26 weeks of military caregiver leave to care for a covered service member with a serious injury or illness) during a 12-month period to eligible employees. The leave may be paid, unpaid or a combination of paid and unpaid leave, depending on the circumstances of the leave and as specified in this policy. Eligibility To qualify to take a family or medical leave under this policy, the employee must meet all of the following conditions: The employee must have worked for the company for 12 months or 52 weeks. The 12 months or 52 weeks need not have been consecutive. Separate periods of employment will be counted, provided that the break in service does not exceed seven years. Separate periods of employment will be counted if the break in service exceeds seven years due to National Guard or Reserve military service obligations or when there is a written agreement, including a collective bargaining agreement, stating U:\Data\HNBK FINAL VERSION 02/06/12 15

22 the employer s intention to rehire the employee after the service break. For eligibility purposes, an employee will be considered to have been employed for an entire week even if the employee was on the payroll for only part of a week or if the employee is on leave during the week. The employee must have worked at least 1,250 hours during the 12-month period immediately before the date when the leave is requested to commence. The principles established under the Fair Labor Standards Act (FLSA) determine the number of hours worked by an employee. The FLSA does not include time spent on paid or unpaid leave as hours worked. Consequently, these hours of leave should not be counted in determining the 1,250 hours eligibility test for an employee under FMLA. The employee must work in a worksite where 50 or more employees are employed by the company within 75 miles of that office or worksite. The distance is to be calculated by using available transportation by the most direct route. Type of Leave Covered To qualify as FMLA leave under this policy, the employee must be taking leave for one of the reasons listed below: The birth of a child and in order to care for that child. The placement of a child for adoption or foster care and to care for the newly placed child. To care for a spouse, child or parent with a serious health condition (described below). The serious health condition (described below) of the employee. An employee may take leave because of a serious health condition that makes the employee unable to perform the functions of the employee's position. A serious health condition is defined as a condition that requires inpatient care at a hospital, hospice or residential medical care facility, including any period of incapacity or any subsequent treatment in connection with such inpatient care or a condition that requires continuing care by a licensed health care provider. This policy covers illnesses of a serious and long-term nature, resulting in recurring or lengthy absences. Generally, a chronic or long-term health condition that would result in a period of three consecutive days of incapacity with the first visit to the health care provider within seven days of the onset of the incapacity and a second visit within 30 days of the incapacity would be considered a serious health condition. For chronic conditions requiring periodic health care visits for treatment, such visits must take place at least twice a year. U:\Data\HNBK FINAL VERSION 02/06/12 16

23 Employees with questions about what this FMLA policy or under the company's sick leave policy should consult with their corporate HR Representative or local HR Coordinator. If an employee takes paid sick leave for a condition that progresses into a serious health condition and the employee requests unpaid leave as provided under this policy, the company may designate all or some portion of related leave taken as leave under this policy, to the extent that the earlier leave meets the necessary qualifications. Qualifying exigency leave for families of members of the National Guard or Reserves or of a regular component of the Armed Forces when the covered military member is on covered active duty or is called to covered active duty. An employee whose spouse, son, daughter or parent either has been notified of an impending call or order to covered active military duty or who is already on covered active duty may take up to 12 weeks of leave for reasons related to or affected by the family member s call-up or service. The qualifying exigency must be one of the following: 1) short-notice deployment, 2) military events and activities, 3) child care and school activities, 4) financial and legal arrangements, 5) counseling, 6) rest and recuperation, 7) post-deployment activities and 8) additional activities that arise out of active duty, provided that the employer and employee agree, including agreement on timing and duration of the leave. Covered active duty means: (a) in the case of a member of a regular component of the Armed Forces, duty during the deployment of the member with the Armed Forces to a foreign country; and (b) in the case of a member of a reserve component of the Armed Forces, duty during the deployment of the member with the Armed Forces to a foreign country under a call or order to active duty under a provision of law referred to in section 101(a)(13)(B) of title 10, United States Code. The leave may commence as soon as the individual receives the call-up notice. (son or daughter for this type of FMLA leave is defined the same as for child for other types of FMLA leave except that the person does not have to be a minor.) This type of leave would be counted toward the employee s 12-week maximum of FMLA leave in a 12-month period. Military caregiver leave (also known as covered service member leave) to care for an ill or injured service member or veteran. An employee whose son, daughter, parent or next of kin is a covered service member may take up to 26 weeks in a single 12-month period to take care of leave to care for that service member. U:\Data\HNBK FINAL VERSION 02/06/12 17

24 Next of kin is defined as the closest blood relative of the injured or recovering service member. The term covered service member means: (a) a member of the Armed Forces (including a member of the National Guard or Reserves) who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness; or (b) a veteran who is undergoing medical treatment, recuperation, or therapy, for a serious injury or illness and who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during the period of 5 years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy. The term serious injury or illness means: (a) in the case of a member of the Armed Forces (including a member of the National Guard or Reserves), means an injury or illness that was incurred by the member in line of duty on active duty in the Armed Forces (or existed before the beginning of the member s active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that may render the member medically unfit to perform the duties of the member s office, grade, rank, or rating; and (b) in the case of a veteran who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during a period when the person was a covered service member, means a qualifying (as defined by the Secretary of Labor) injury or illness that was incurred by the member in line of duty on an active duty in the Armed Forces (or existed before the beginning of the member s active duty and was aggravated by service in line of duty on active duty in the Armed Forces) and that manifested itself before or after the member became a veteran. Amount of Leave An eligible employee can take up to 12 weeks for the FMLA circumstances (1) through (5) above under this policy during any 12-month period. The company will measure the 12-month period as a rolling 12-month period measured backward from the date an employee uses any leave under this policy. Each time an employee takes leave, the company will compute the amount of leave the employee has taken under this policy in the last 12 months and subtract it from the 12 weeks of available leave, and the balance remaining is the amount the employee is entitled to take at that time. An eligible employee can take up to 26 weeks for the FMLA circumstance (6) above (military caregiver leave) during a single 12-month period. For this military U:\Data\HNBK FINAL VERSION 02/06/12 18

25 caregiver leave, the company will measure the 12-month period as a rolling 12- month period measured forward. FMLA leave already taken for other FMLA circumstances will be deducted from the total of 26 weeks available. If a husband and wife both work for the company and each wishes to take leave for the birth of a child, adoption or placement of a child in foster care, or to care for a parent (but not a parent "in-law") with a serious health condition, the husband and wife may only take a combined total of 12 weeks of leave. If a husband and wife both work for the company and each wishes to take leave to care for a covered injured or ill service member, the husband and wife may only take a combined total of 26 weeks of leave. Employee Status and Benefits During Leave While an employee is on leave, the company will continue the employee's health and life benefits during the 12 or 26 week leave period at the same level and under the same conditions as if the employee had continued to work. Under current company policy, the employee pays a portion of health care premiums. While on leave, Highwoods will continue to make payroll deductions to collect the employee s share of the premium. While on unpaid leave the employee will be responsible for paying insurance premiums to Highwoods Properties. If the employee chooses not to return to work for reasons other than a continued serious health condition of the employee or the employee's family member or a circumstance beyond the employee's control, the company will require the employee to reimburse the company the amount it paid for the employee's insurance during the leave period. As with all other leaves of absence, an employee on FMLA leave will not accrue vacation time, sick time, or other benefits, unless otherwise required by federal, state, or local law. Employee Status After Leave An employee who takes leave under this policy may be asked to provide a fitness for duty (FFD) clearance from the health care provider. This requirement will be included in the employer s response to the FMLA request. Generally, an employee who takes FMLA leave will be able to return to the same position or a position with equivalent status, pay, benefits and other employment terms. The position will be the same or one which is virtually identical in terms of pay, benefits and working conditions. The company may choose to exempt certain key employees from this requirement and not return them to the same or similar position. Use of Paid and Unpaid Leave An employee who is taking FMLA leave because of the serious health condition of a family member must use all paid vacation, personal or sick leave prior to U:\Data\HNBK FINAL VERSION 02/06/12 19