EMPLOYEE HANDBOOK. United States

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1 EMPLOYEE HANDBOOK United States 2017

2 TABLE of CONTENTS Section 1000 INTRODUCTION Page 1010 Message from the CEO Introduction to the Handbook Harmony with All Employment Laws Safety... 5 Section 2000 STANDARDS OF CONDUCT 2010 Progressive Discipline Appeals Process... 7 Section 3000 GENERAL EMPLOYMENT POLICIES 3010 Americans with Disabilities Act and ADA Amendments Act Equal Employment Opportunity (EEO) and Affirmative Action Harassment Company Investigations Anti-Retaliation Policy Section 4000 EMPLOYMENT PRACTICES 4010 Problem Solving Procedure Hiring of Relatives (Nepotism) Immigration Law Compliance Involvement in Community/Political Activities Medical Exams, Drug Testing and Health Certification Performance Reviews Outside Employment (Moonlighting) Internal Job Postings, Promotions and Transfers Return to Work and Light Duty Termination of Employment Reference Requests Lactation Accommodation Section 5000 EMPLOYEE RESPONSIBILITIES 5010 Appearance and Grooming Attendance and Dependability Communication and Information Systems Confidentiality Conflicts of Interest Drugs and Alcohol Employee Conduct and Work Rules Employee Inventions Personal Property Public Relations Smoking Workplace Violence TEAM Employee Handbook January 2017 Page 1

3 TABLE of CONTENTS (Continued) Section 6000 COMPENSATION and BENEFITS Page 6010 Health and Welfare Benefits COBRA Insurance Continuation Service Awards Pay Practices Section 7000 TIME OFF 7010 Holidays Vacation Sick Leave Leaves of Absence Family and Medical Leave Military Leave 7050 Jury Duty and Voting Funeral Leave Section 8000 EXPENSES and REIMBURSEMENT 8010 Control of Expenses and Reimbursement Abuse of Expense Policy Business Entertainment and Gifts Business Travel Car Expenses 8020 Education Assistance Program Participation in Professional and Other Organizations Reimbursement for Prescription Safety Glasses and Work Shoes TEAM Employee Handbook January 2017 Page 2

4 SECTION 1000 INTRODUCTION 1010 Message from the CEO Whether you have just joined our organization or have been with us for a while, we are confident that you will find TEAM to be a professional and productive organization. Your unique talents and abilities are extremely valuable to us and we look forward to a rewarding and successful association with you. The Company is proud of the professional services and products we provide our customers. We believe that our employees are truly our most valuable asset and that each of us directly contributes to our continued success. With your contribution, we will maintain a climate where everyone can work together to achieve our Core Values: Safety First - Quality Always in everything we do. Integrity means doing the right thing. Service Leadership throughout the Company. Innovation supports continuous growth and improvement. Pride and Respect for ourselves and our Company. Teamwork means proactively engaging our colleagues mutual success as one team. This Handbook was developed to establish a framework in which employees' efforts can support Company objectives and individual interests. To further this goal, we have adopted these general human resources policies which we believe are fair and consistent, and communicate our expectations. It is our intention that these policies will promote sound management of our human resources as well as success and growth for each of you as part of our team. Please familiarize yourself with the Handbook's policies, as they should answer many common questions concerning your employment. You can also speak to your Manager/Supervisor or Human Resources with any questions about the Handbook, policies or your work. We hope that your career with TEAM is enjoyable, challenging, and rewarding in every respect! Sincerely, Ted Owen President & CEO TEAM Employee Handbook January 2017 Page 3

5 1020 Introduction to the Handbook Purpose of the Handbook This Handbook contains information about the Company s employment policies and procedures and an overview of Company benefits. For additional detailed information about these policies and procedures and employee benefits, refer to our annual benefit summary guide, plan documents and employment policies, which are controlling. The Company reserves the right to interpret and administer the provisions of this Handbook. Except for the policy of at-will employment, which can only be changed in writing by the Chief Executive Officer or the Board of Directors of the Company, the Company has the maximum discretion permitted by law to change, modify or delete any provision in this Handbook at any time, with or without notice. Oral statements or representations cannot supplement, change or modify the provisions in this Handbook. Each employee should read and become familiar with the information contained in this Handbook. Failure to comply with the Company's policies or procedures may result in disciplinary action up to and including termination of employment. At-Will Employment Nothing in this Handbook nor any other communication by a Company representative or any other employee, whether oral or written, is intended to in any way create a contract of employment. Unless an employee has a written employment agreement signed by the Chief Executive Officer of the Company, or a representative authorized by the Board of Directors of the Company, all employees are employed at will and nothing in this Handbook can be construed to contradict, limit or otherwise affect an employee s right or the Company s right to terminate the employment relationship at any time with or without notice or cause to the fullest extent permitted by law. Applicability Effective January 1, 2017, this Handbook supersedes all existing employee handbooks and is applicable to employees of Team Industrial Services, Inc., Team, Inc., and all of their subsidiary and affiliate companies (collectively referred to as the Company or TEAM ) domiciled and working in the 50 U.S. states. Employees working in California will have an addendum which will supplement the policies contained in the TEAM Employee Handbook. Employees working in other locations outside the U.S. should consult their separate handbooks, policies and benefit plans. Unless approved in writing by an authorized Senior Officer of the Company, or as otherwise or required by applicable law, in the event of any ambiguities or conflicts between this Handbook and the policies, procedures and practices of a Company subsidiary, the terms set forth in this Handbook shall govern. If you have questions or need assistance with this Handbook, please ask a Senior Officer of the Company or contact the Human Resources Department. TEAM Employee Handbook January 2017 Page 4

6 1030 Harmony with All Employment Laws Many of the states and localities in which the Company does business have their own employment laws which may change from time to time. No policy in this Handbook is intended to conflict with any employment laws; but if they should, the Company recognizes and agrees that the employment laws will govern any policy to the extent of the law. If, at any time, an employee becomes aware of a potential conflict or has a question about a policy, the employee should notify their Manager/Supervisor and Human Resources, and the Company will address it Safety TEAM is strongly committed to maintaining a safe and secure work environment. Safety is also the responsibility of each employee. As an employee, you are required to comply with Company and/or customer safety policies and procedures at all times. In addition, employees must comply with any and all applicable federal, state and local laws or regulations regarding workplace safety. Compliance with these safety policies, laws and regulations and adhering to the use of safety equipment/devices, when required, are conditions of your employment. For a comprehensive overview of these safety policies and procedures, please contact your Manager/Supervisor, Regional Safety Coordinator, or the Health, Safety and Environmental Department. You may also refer to the TEAM s Health, Safety & Security Policy Manual or Employee Safety & Quality Handbook. Some of our key safety rules include, but are not limited to: Immediate reporting of: - Any work-related injury, accident or illness, no matter how minor, to your Supervisor (or next level above). - Any near miss, unsafe condition, practice or potential hazard (reports may be made anonymously, if necessary). - All suspicious persons, potentially violent situations, or persons possessing illegal weapons or drugs. Employees must operate any Company vehicle or equipment in a safe and professional manner. Employees can only use tools and equipment which the employee is qualified and authorized to use. Employees shall comply with all requirements regarding training, safety policies, use of safety equipment and the application of safety processes and procedures. Employees who violate Company and/or customer safety policies (which include the Seven Critical Choices) will be subject to disciplinary action up to and including termination of employment. Every Company employee is expected to promote a positive and proactive safety culture. TEAM Employee Handbook January 2017 Page 5

7 Stop Work Authority The Company maintains a Stop Work Authority environment for all employees. The Company prohibits any form of discipline, reprisal, intimidation or retaliation towards any employee for reporting a safety concern or policy violation, or for cooperating with agencies or clients in related investigations Progressive Discipline SECTION 2000 STANDARDS OF CONDUCT The Company supports the use of progressive discipline, where applicable, to address conduct issues such as poor work performance or misconduct, and to encourage employees to become more productive workers and to conform their behavior to Company standards and expectations. Because certain employee misconduct is of a nature that requires more severe discipline, it is not always appropriate to follow a progressive discipline process. The Company reserves the right to administer appropriate disciplinary action (progressive or not) for all forms of employee misconduct. Generally, a Supervisor gives a warning to an employee to explain behavior that the Supervisor has found unacceptable. There are two types of warnings verbal and written. Verbal Warning A verbal warning occurs when a Supervisor or Human Resources representative verbally counsels an employee about an issue of concern. A written record of the discussion noting the date, event and recommended actions is usually placed in the employee s file for future reference. Written Warning Written Warnings are used for behaviors or violations a Supervisor considers serious or for when a verbal warning has not helped to change unacceptable behavior. An employee should recognize the seriousness and importance of the written warning. Performance Improvement Plan Whenever an employee has been involved in a disciplinary situation that is not readily resolvable or when he or she has demonstrated an inability to perform assigned work responsibilities efficiently, the Manager/Supervisor, in consultation with a Human Resources representative, may place the employee on a Performance Improvement Plan (PIP). The PIP is put in place for a predetermined amount of time, not to exceed ninety (90) days. Within this time period, the employee must demonstrate a willingness and ability to meet and maintain the conduct and/or work requirements as specified in the PIP. At the end of the PIP, the employee will either be returned to regular employee status or, if it is determined that the established goals have not been met, the employee maybe subject to additional disciplinary action, including termination of employment, as determined by the Company. TEAM Employee Handbook January 2017 Page 6

8 The Company reserves the right to administer appropriate disciplinary action (progressive or not) for all forms of disruptive and/or inappropriate behavior. Each situation will be dealt with on an individual basis. Misconduct that involves dishonesty, violation of the law, or significant risks to Company operations or to the safety or well-being of oneself or others (including violations of any of the Seven Critical Choices) is grounds for immediate termination of employment. However, the facts and circumstances of each case, as determined by the Company, will determine what action, up to and including discharge from employment, is appropriate Appeals Process An employee has a number of ways to address any situation that he or she believes is not being handled appropriately, any situation in which an adverse decision has been rendered, or if the employee required additional explanation as to why a particular action was taken. First, a Human Resources representative is specifically empowered to assist any employee who feels they have grounds for appealing an adverse action or disciplinary decision. Second, an employee may appeal any decision or bring any situation to his or her Manager/Supervisor, or their Supervisor, for discussion. There is no prohibition against an employee speaking to their Manager/Supervisor concerning any situation. If an employee is not satisfied with the response, he or she should contact their Vice President, or any Senior Corporate Officer of the Company (or utilize the Company hotline), to discuss any problem or situation or appeal any adverse action or disciplinary action. All employee conferences will be conducted in confidence, to the extent Company representatives determine possible under the circumstances. The Company strives to maintain an environment such that it should never be a case where the employee finds it necessary to seek outside resolution of a complaint or problem. The Company encourages all employees to speak up if a problem situation occurs. Employee problems or concerns are important to the Company. Working together, we can resolve any problem, concern or misunderstanding that might arise. TEAM Employee Handbook January 2017 Page 7

9 SECTION 3000 GENERAL EMPLOYMENT POLICIES 3010 Americans with Disabilities Act and ADA Amendments Act Scope of the ADA It is TEAM s policy to comply with all federal, state and local laws concerning the employment of persons with disabilities and to act in accordance with regulations and guidance issued by the Equal Employment Opportunity Commission (EEOC) including the Americans with Disabilities Act (ADA), as amended by the ADA Amendments Act, and all applicable state and local fair employment practices laws. Furthermore, it is our Company policy not to discriminate against qualified individuals with disabilities in regard to application procedures, hiring, access, advancement, discharge, compensation, training or other terms, conditions and privileges of employment. Reasonable Accommodations TEAM will reasonably accommodate qualified individuals with disabilities so they can perform the essential functions of their job, unless doing so causes an undue hardship to the Company, as further defined by applicable laws and regulations. Contact the Human Resources Department with any questions about, or requests for, accommodation. After receiving a request for an accommodation, the Company will engage in an interactive dialogue with the employee to determine the precise limitations of the disability and explore potential reasonable accommodations. This may include the professional advice and counsel of physicians. For purposes of this evaluation, the Company may ask the requesting employee to provide additional information and/or documentation regarding his or her disability. The Company will strive to maintain the confidentiality of all confidential information provided by the employee for these purposes. TEAM expressly prohibits any form of discipline or retaliation against any individual for a good faith request for an accommodation Equal Employment Opportunity (EEO) and Affirmative Action EEO Policy TEAM is an equal opportunity employer and complies with all applicable federal, state and local fair employment practices and employment discrimination laws. It is the policy of the Company to provide equal employment opportunities without regard to race, color, religion, sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), national origin, age, disability, marital status, familial status, parental status, domestic partner status, military status, veteran status, military caregiver status, sexual orientation, gender identity, genetic information or any other protected characteristic under applicable law. This policy relates to all phases of employment, including, but not limited to, recruiting, employment, placement, promotion, transfer, demotion, reduction of workforce and termination, rates of pay or other forms of compensation, selection for training, the use of all TEAM Employee Handbook January 2017 Page 8

10 facilities, and participation in all company sponsored employee activities. Provisions in applicable laws providing for bona fide occupational qualifications, business necessity, or age limitations will be adhered to by the Company where appropriate. Affirmative Action Policy As part of the Company s equal employment opportunity policy, the Company will also take affirmative action as called for by applicable laws and Executive Orders to ensure that minority group individuals, females, disabled veterans, recently separated veterans, other protected veterans, Armed Forces service medal veterans and qualified disabled persons are introduced into our workforce and considered for promotional opportunities. These policies shall be periodically brought to the attention of Supervisors and shall be appropriately administered and it is the responsibility of each Supervisor of the Company to ensure affirmative implementation of these policies to avoid any discrimination in employment. All employees are expected to recognize these policies and cooperate with their implementation. The Human Resources Compliance Manager has been assigned to direct the establishment and monitor the implementation of personnel procedures to guide our affirmative action program through Team Industrial Services, Inc. and its affiliates. A notice explaining this Company policy will remain posted on the Company's intranet. No Retaliation Employees and applicants shall not be subjected to harassment, intimidation or any type of retaliation because they have (1) filed a complaint; (2) assisted or participated in an investigation, compliance review, hearing or any other activity related to the administration of any federal, state or local law requiring equal employment opportunity; (3) opposed any act or practice made unlawful by any federal, state or local law requiring equal opportunity; or (4) exercised any other legal right protected by federal, state or local law requiring equal opportunity. Refer to the Company's Anti-Retaliation Policy in this Handbook or contact the Human Resources Department for more information. Reporting Procedures Employees or applicants notification to the Company is essential to enforcement of this policy. If you are subjected to conduct that you believe violates this policy, you must promptly notify a Human Resources representative. If you have not received a satisfactory response within five (5) days of reporting the incident, contact the Vice President of Human Resources or a Vice President of the Legal Department. All complaints that are properly reported will be investigated as promptly as possible and corrective action will be taken where warranted. Disciplinary Action Any employee, regardless of position or title, whom the Company determines has subjected an individual to discrimination or retaliation in violation of this policy, will be subject to discipline, up to and including termination of employment. TEAM Employee Handbook January 2017 Page 9

11 3030 Harassment All Harassment Prohibited The Company strictly prohibits harassment against employees and any other covered persons because of race, color, religion, sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), national origin, age, disability, marital status, familial status, parental status, domestic partner status, military status, veteran status, military caregiver status, sexual orientation, gender identity, genetic information or any other protected characteristic under applicable law. All types of harassment are prohibited in the workplace, while working at client facilities and at any Company-sponsored event or activity, regardless of the location. Sexual Harassment All Company employees, other workers and representatives (including vendors, customers and visitors) are prohibited from harassing employees and other covered persons based on that individual's sex or gender (including that individual s gender nonconformity or status as a transgender or transsexual individual) and regardless of the harasser's sex or gender. Sexual harassment means any harassment based on someone's sex or gender. It includes harassment that is not sexual in nature (for example, offensive remarks about an individual's sex or gender), as well as any unwelcome sexual advances or requests for sexual favors or any other conduct of a sexual nature, when any of the following is true: Submission to the advance, request or conduct is made either explicitly or implicitly as a term or condition of employment. Submission to or rejection of the advance, request or conduct is used as a basis for employment decisions. Such advances, requests or conduct have the purpose or effect of substantially or unreasonably interfering with an employee's work performance by creating an intimidating, hostile or offensive work environment. The Company will not tolerate any form of sexual harassment, regardless of form: Verbal (e.g. epithets, derogatory statements, slurs, sexually-related comments or jokes, unwelcome sexual advances or requests for sexual favors, graphic or degrading comments about an individual s appearance or sexual activity). Physical (e.g. unwelcome physical contact such as patting, grabbing, pinching, or brushing against another s body, assault or inappropriate physical contact). Visual (e.g. displaying sexually suggestive posters, cartoons or drawings, sending inappropriate adult-themed gifts, leering or making sexual gestures; offensively suggestive or sexually explicit communications in any form, including but not limited to letters, notes, invitations, , text messages, blogs, instant messaging, or voic ). This list is illustrative only and is not intended to be exhaustive. The legal definition of sexual harassment is broad and, in addition to the above examples, other sexually oriented conduct, whether it is intended or not, that is unwelcome and has the effect of creating a work place TEAM Employee Handbook January 2017 Page 10

12 environment that is hostile, offensive, intimidating, or humiliating to male or female workers may also constitute sexual harassment. Sexual harassment may be a single incident or a series of harassing acts. Inappropriate conduct that is sexually harassing in nature can involve individuals of the same or opposite sex, a supervisor (or manager) and subordinate, co-workers, an employee, or a non-employee (third party) such as a customer, contractor, vendor, or supplier. No form of sexual harassment will be tolerated. Other Types of Harassment The Company's anti-harassment policy applies equally to harassment based on an employee s race, color, religion, national origin, age, disability, marital status, familial status, parental status, domestic partner status, military status, veteran status, military caregiver status, sexual orientation, gender identity, genetic information or any other protected characteristic under applicable law. Such harassment often takes a similar form to sexual harassment and includes harassment that is: Verbal (e.g. epithets, derogatory statements, slurs, derogatory comments or jokes; bullying behavior, including but not limited to threats, intimidation, coercion, ridicule, insults, or belittling; spreading false, vicious, or malicious rumors; the gratuitous sabotage or undermining of a person s work performance). Physical (e.g. assault or inappropriate physical contact). Visual (e.g. displaying derogatory posters, cartoons, drawings or making derogatory gestures). This list is illustrative only and is not intended to be exhaustive. No form of harassment will be tolerated. Reporting Procedures Employees notification to the Company is essential to enforcement of this policy. If you are subjected to, witness, or otherwise learn of conduct by anyone (including supervisors, coworkers, suppliers, vendors, customers, or third parties) that you believe violates this policy, you must promptly notify your Supervisor and the Human Resources Department. If the conduct involves your direct Supervisor, you are not required to report to that Supervisor and instead should notify the Human Resources Department of the offending conduct immediately or as soon as possible. Additional avenues of reporting are available through the Company s hotline. Contact information for the Company hotline may be found on Team s intranet site under Ethics Hotline and posted at Company office locations. If you have not received a satisfactory response within five (5) days of reporting the incident, you should immediately contact the Vice President of Human Resources or a Vice President of the Legal Department. All complaints that are reported to management or the individuals identified above will be investigated as promptly as possible and corrective action will be taken where warranted. Your complaint should be as detailed as possible, including the names of all individuals involved and any witnesses. TEAM Employee Handbook January 2017 Page 11

13 Additionally, any Manager/Supervisor who observes harassing conduct must immediately report the conduct to the Vice President of Human Resources so that an investigation can be conducted and corrective action taken, if appropriate. CALIFORNIA Employees - You can also report a violation through the Department of Fair Employment & Housing ( DFEH ) and U.S. Equal Employment Commission ( EEOC ) Company Investigations When TEAM receives a complaint of harassment or discrimination (or other conduct prohibited by this policy), the Human Resources Department will conduct a fair, timely, and thorough investigation of the allegation that provides all parties appropriate due process and reaches reasonable conclusions based on the evidence collected. Employees shall cooperate to the fullest extent possible in any internal investigation conducted by the Company when directed to do so by persons who have been given investigative authority by an authorized officer of the Company. Failure to cooperate fully, or providing false statements or answers during an investigation, is grounds for adverse personnel action, including termination of employment. The Company is committed to protecting the integrity of every investigation, protecting witnesses from harassment, intimidation and retaliation, preserving evidence, ensuring truthful testimony, and preventing concealment of information. The Company may decide in some circumstances, after weighing the aforementioned factors, that to achieve these objectives, strict confidence is required by all personnel involved. If the Company reasonably imposes such a requirement and an employee does not maintain confidentiality, he or she may be subject to disciplinary action, up to and including immediate termination of employment Anti-Retaliation Policy All Unlawful Retaliation Prohibited TEAM strictly prohibits and does not tolerate unlawful retaliation against any employee, by any employee, including any form of discipline, reprisal, intimidation or other form of retaliation for participating in any activity protected by law. Examples of protected activities include: Filing a good faith complaint (written or oral) with Human Resources or Company Management alleging unlawful discrimination, harassment or compensation issues (e.g. violation of wage and hour laws). Filing a good faith complaint regarding unlawful discrimination or harassment with the U.S. Equal Employment Opportunity Commission (EEOC), any federal or state agency or in a court of law. Participating in Company s internal investigation into allegations of sexual harassment or other employee misconduct. TEAM Employee Handbook January 2017 Page 12

14 Supporting another employee's internal or administrative complaint of unlawful discrimination (e.g. testifying or providing an affidavit in support of a co-worker who has filed a discrimination complaint with the EEOC). Requesting an accommodation under the Americans with Disabilities Act or state antidiscrimination statutes. Requesting or taking leave under the Family and Medical Leave Act or state leave statutes. Filing a workers compensation claim. This list is illustrative only and is not intended to be exhaustive. No form of retaliation for any protected activity will be tolerated. Reporting Procedures Employees notification to the Company is essential to enforcement of this policy. If you are subjected to, witness, or otherwise learn of conduct that you believe violates this policy, you must promptly notify the Human Resources Department. If the conduct involves the Human Resources Department, contact the Legal Department immediately or as soon as possible following the offending conduct. If you have not received a satisfactory response within five (5) days of reporting the incident, immediately contact a Vice President of Human Resources or a Vice President of the Legal Department. All complaints that are reported to management or the individuals identified above will be investigated as promptly as possible and disciplinary action will be taken where warranted. Your complaint should be as detailed as possible, including the names of all individuals involved and any witnesses. Additionally, any Manager/Supervisor who observes retaliatory conduct must immediately report the conduct to the Human Resources Department so that an investigation can be conducted and corrective action taken, if appropriate. Additional avenues of reporting anonymously are available through the Company s hotline. Contact information for the Company hotline may be found on Team s intranet site under Ethics Hotline and posted at Company office locations. Conduct Not Prohibited by This Policy This policy is not intended to restrict permissible communications or actions protected or required by local, state or federal law. Exceptions Any exceptions to this policy must be approved by the Company Legal Department. TEAM Employee Handbook January 2017 Page 13

15 4010 Problem Solving Procedure SECTION 4000 EMPLOYMENT PRACTICES Informal Resolution The Company seeks to promote a workplace where employees are comfortable voicing their concerns and raising employment and business-related issues. Therefore, unless otherwise required by law, policy or emergency circumstance, employees are encouraged to speak informally and discuss problems with their Supervisor so that appropriate corrective actions may be taken. The Company is committed to ensuring a responsive and fair problem solving process at the lowest possible organizational level and encourages this same commitment from all employees. However, some concerns or issues require immediate reporting to the Human Resources, Legal or other designated Department or to the Chairman of the Audit Services Committee of the Company. Please see specific Company policies and Special Reporting Procedures below for the appropriate reporting procedures for specific circumstances. Formal Complaint If an employee prefers not to pursue the informal resolution process or if the informal resolution process fails to resolve an employee s concerns, unless employee determines it is inappropriate under the circumstances, the employee should immediately inform his or her Manager/Supervisor of the complaint. Complaints should be submitted as promptly as possible under the circumstances; expectations are for reports to be within five (5) working days of the occurrence. When an employee believes a complaint to an employee's Manager/Supervisor may be inappropriate under the circumstances (for example, if the complaint involves the Manager/Supervisor or the complaint is a special reporting matter described below), the employee should submit the complaint directly to the Human Resources Department or Legal Department. If the situation is reported to the employee s Manager/Supervisor and is not addressed within five (5) working days from the time the complaint is discussed with the employee s immediate Supervisor, the employee should bring their issue to the attention of the next level Manager/Supervisor and a manager or officer in the Human Resources Department or Legal Department, with written documentation. The Company will attempt to resolve the complaint within a reasonable period of time while preserving the confidentiality and privacy of those involved, to the extent determined feasible by the Company and as required by law. TEAM Employee Handbook January 2017 Page 14

16 Special Reporting Procedures If an employee is subjected to, or required to participate in, any conduct that the employee believes may violate the law, the Code of Ethical Conduct or any of the policies or conduct described in the list below, the employee must notify a manager or officer in the Human Resources Department or Legal Department, within ten (10) days of the offending conduct. The following are subject to this special reporting procedure: Illegal, fraudulent or unethical actions or conduct, including violations of the Company Code of Conduct. Failure to report unsafe behavior or conditions. Financial irregularities (see further reporting instructions below). Discriminatory or harassing conduct (e.g. violation of EEO, Harassment or Anti- Retaliation Policies). Misconduct by an employee s Supervisor, or Retaliatory conduct (e.g. violation of Anti-Retaliation Policy). Your complaint should be as detailed as possible, including the names of all individuals involved and any witnesses. The Company will investigate the facts and circumstances of all perceived improper conduct and will take prompt corrective action, when appropriate. Financial Irregularities Any concerns regarding TEAM s Financial Reporting Practices, Internal Accounting Controls or Accounting Irregularities should be reported to the Chairman of the Audit Committee of the Board of Directors, the Board of Directors, the Vice President of Audit Services or an officer in the Legal Department. Contact information is available in the Company s Code of Ethical Conduct, located on the Company s intranet site, and on the Company s website. The Company maintains a hotline for anonymous complaints. Human Resources Assistance Employees are strongly encouraged to utilize the Human Resources Department or Legal Department as applicable, for consultation at any stage in the problem-solving process for assistance in resolving the issue as quickly and as confidentially as possible and legally permissible. You can contact the Human Resources Department via at HR@TeamInc.com Hiring of Relatives (Nepotism) Conditions The Company is committed to an equal employment opportunity workforce. All hiring decisions of family members must be reviewed by the Human Resources Department to ensure compliance with Company policies and applicable non-discrimination laws. TEAM Employee Handbook January 2017 Page 15

17 An employee's immediate relative may be hired with VP and Human Resources Department approval provided the applicant possesses all the qualifications for employment for the position and employment would not establish a: Direct or indirect supervisory, subordinate relationship; Real or apparent conflict of interest; or Potentially adverse work situation. For this policy, immediate relative is defined to include a parent, spouse, child, brother, sister, mother-in-law, father-in-law, brother-in law, sister-in-law, grandparents or any member of the employee s immediate household. This policy also applies to transfers and promotions. Change in Family Status If two employees marry or become otherwise related, so as to qualify as family members under this policy's definition, they must report the change in status to the Human Resources Department, which will work with the employees to devise a working solution to violation of this policy. The two employees may not remain in any reporting relationship where one has influence over the other, unless accommodations can be made to eliminate the potential conflict. The choice of which employee will remain in the previous role and which will modify the role as necessary to be in compliance with this policy is to be made by the affected employees and their Supervisor, with HR department consultation, within 30 days of the change in family status affected by this policy. Management retains complete discretion for approving all employee transfers and reassignments and may determine if the termination of employment of one or both of the employees is required. Exceptions to this policy must be reviewed and approved by the Human Resources Department and the Legal Department Immigration Law Compliance Under the terms of the Immigration Reform and Control Act of 1986 (IRCA), and any other applicable federal, state or local law, we must verify the legal employment status of all new hires, including US citizenship or the right to work in the US. Therefore, all offers of employment are contingent upon an individual's ability to produce required documents establishing identity and employment authorization. Additionally, employment discrimination against citizens and authorized non-citizens based on national origin and/or citizenship status is prohibited by our EEO policy. Every employee of the Company must adhere to all aspects of these policies. Failure to comply with the IRCA and related applicable laws may subject the Company and any responsible individuals to civil monetary or criminal penalties. Violations of these policies may be grounds for employee discipline, up to and including termination of employment. TEAM Employee Handbook January 2017 Page 16

18 4040 Involvement in Community/Political Activities Employees are encouraged to become involved in charitable organizations, community affairs, and political activities. Such involvement benefits the community and provides opportunities to create goodwill. However, employee participation should not interfere with job responsibilities, create a conflict of interest, threaten legitimate Company confidentiality requirements, or impact Company business interests. Employees should make clear at all times that they are acting on a private, personal basis, and not on behalf of the Company. Employees should request Company approval from an officer of the Company or the VP of Human Resources if any doubt exists as to the appropriateness of an employee's involvement in community or political activities. Serving on the board of directors or as an officer or partner of another organization, including a charitable organization, may, depending on the circumstances, also require approval under the Company s Conflict of Interest Policy set forth in this Handbook and in the Company s Code of Ethical Conduct. Any charitable contributions or political donations must comply with applicable Company policies Medical Exams, Drug Testing and Health Certification Exams and Testing Employees may be required to undergo periodic medical exams and drug screenings. Disabilityrelated inquiries, medical examinations, and drug testing may be undertaken, at management's discretion, if job-related, consistent with business necessity and in conformity with applicable legal requirements. A copy of the Company's Drug and Alcohol policy is available on the Company Safety Department s intranet site. Medical Certification Documentation of medical restrictions and suitability for work may be required, at management's discretion, in certain situations (including return to work following an injury or illness, request for a job accommodation and as permitted or required by other laws and regulations). TEAM Employee Handbook January 2017 Page 17

19 4060 Performance Reviews Employees are strongly encouraged to regularly and informally discuss their job performance and goals with their Supervisor. Formal performance reviews are expected to be conducted annually. Performance reviews help management ensure employees are meeting reasonable workplace standards and goals, Supervisors have an opportunity to assess employee achievement and areas needing improvement with respect to these standards and goals, and employees are placed on notice about Supervisor assessments. Performance reviews also provide an opportunity for employees to provide their personal assessment of their job performance and discuss their concerns. Performance reviews and the appraisal process are subject to Company discretion and may be changed or eliminated as management deems appropriate Outside Employment (Moonlighting) Conditions Employees are expected to devote full attention and energy to our organization. Employees may hold outside jobs or be involved in outside business, educational, community, political, and charitable activities as long as they do not interfere with the ability of the employee to continue to meet established expected job performance standards and goals and such activities do not impact Company business interests, consume Company resources, or create actual or perceived conflicts of interest. Employees must meet the requirements set forth below. Consultation with Management To protect the Company's interests in having an employee s full attention and energy and to protect confidential Company information, trade secrets and other business interests while employees are engaged in outside employment, the Company has adopted the following rules and guidelines relating to outside employment by employees: Before beginning outside employment, employees must obtain advance written approval for the outside employment from their Manager/Supervisor. Outside employment must not interfere with the employee's work performance or work schedule or have a reasonable probability of causing employee fatigue that could impact the safety or quality of job performance. Employees may not use Company property, facilities, equipment, supplies, IT systems (such as computers, networks, , telephones or voic ), time, trademark, brand or reputation in connection with any outside employment or commercial venture. Employees engaging in outside employment must comply with all Company policies, including but not limited to, policies on Conflicts of Interest, Confidentiality and Protection of Proprietary and Trade Secret Information. Employees may not engage in any outside employment for an employer that competes with the Company. TEAM Employee Handbook January 2017 Page 18

20 If you are considering outside employment, but are not sure if it complies with the rules and guidelines set out in this policy, you should speak with the Human Resources Department who will help you determine whether the outside employment complies with this policy. Any employee, regardless of position or title, who the Company determines has violated this policy, will be subject to discipline, up to and including termination of employment Internal Job Postings, Promotions and Transfers Internal Job Postings Regular exempt and non-exempt job openings may be posted and updated via the Company s Career Center at It is the Company s intention to make all employees aware of Company job openings and to provide the opportunity to apply for open positions either before or concurrent with consideration of external candidates where feasible. Job openings will be posted internally, during which time the employee may apply to any position by attaching an updated resume to any job posting of interest. While it is the Company s philosophy to promote from within whenever possible, the Company reserves the right to bypass the posting of positions, or to post positions for external candidates due to various business needs, in its discretion (i.e. organizational restructuring, position requirements that include skills, education, and/or experience that are not known to match any existing employee, critical operational needs, etc.). The decision to fill any position without posting requires the approval of the Hiring Manager and Human Resources. Employees are encouraged to apply for internal job openings if they meet the following requirements: The employee must have completed at least twelve (12) months in their current position with the Company. The employee skills, knowledge, experience and education meets the requirements of the job opening. The employee s performance is at a level that meets Company standards. Employees in any stage of a disciplinary action or performance improvement plan may not apply for other Company positions. The employee must notify their current Manager/Supervisor prior to submitting an application for an internal position. Promotions and Transfers Typically, the successful candidate will be able to fill the new position within two weeks of the job award. However, the transfer/promotion may be prolonged to accommodate current business needs, but should not be more than four (4) weeks. Interviewed candidates not selected for the new position will be notified by the Hiring Manager. TEAM Employee Handbook January 2017 Page 19

21 Management Discretion While management intends to work closely with all employees to ensure that job placements are appropriate, all staffing decisions are subject to management's complete discretion. Promotion and transfer guidelines may be disregarded as business needs require Return to Work and Light Duty Our return to work and light duty programs are intended to assist employees in returning to work as soon as medically possible and minimize the costs and impact of employee absences to the Company. Light duty placements, when deemed appropriate and available by the Company, may be considered for employees who have sustained on the job injuries or illnesses. Light duty positions generally consist of particular positions with duties that are less physically or mentally demanding. Case-by-Case Consideration Light duty placements and return-to-work actions are considered on a case-by-case basis. Consideration will be given to medical issues, physical restrictions, work availability, business needs and demands, and applicable legal requirements. Light duty assignments are temporary in nature and are subject to management discretion, as allowed by law. Procedures Employees who believe they could benefit from the light duty program should contact their Branch Management for availability and detailed information concerning light duty assignment. All light duty and return to work options are implemented in conjunction with the employee s physician or health care provider and other medical professionals retained by the Company or our Workers Compensation insurer to provide reasonable accommodation that is not inconsistent with physician restrictions for the employee Termination of Employment The Company does not offer tenured or guaranteed employment. Either the Company or the employee can terminate the employment relationship at any time, with or without cause and with or without notice. Except for the CEO or Board of Directors of the Company, no employee or manager of TEAM has the authority to enter into an employment agreement for any specified time period, project or other work. Resignation As a professional courtesy, all employees are requested to provide reasonable written notice of their intention to leave the Company. This notice should state the reason for the resignation and indicate the effective date. A withdrawal of resignation may not be allowed without the written approval of the employee s VP and Manager, as applicable. Termination for Cause Termination of employment will be deemed for cause if the Company, in its sole and absolute discretion, determines that any of the following events occurs: TEAM Employee Handbook January 2017 Page 20

22 Employee s refusal or willful failure to substantially perform job duties for the Company. Employee's dishonesty, willful misconduct, misappropriation, breach of fiduciary duty or fraud. Employee's conviction of, or plea of nolo contendere with respect to, a felony (other than a traffic violation) or any crime involving, in the sole discretion of the Company, moral turpitude (consistent with federal and state guideline and business necessity). Employee's improper disclosure of commercial proprietary information or trade secrets of the Company or its business. Employee's falsification of any Company records or documents, any client records or documents or any government filings or forms. Employee's intentional or gross misconduct that damages the business or reputation of the Company. Employee's use of alcohol, illegal possession or illegal use of a drug or narcotic on Company or client property and/or being intoxicated at work. Employee's failure to improve work performance to an acceptable level, in the Company s sole and absolute estimation, after employee was previously warned by the Company about poor performance. Violation of the Company s Seven Critical Choices. This list is illustrative only and is not intended to be exhaustive. Any employee terminated for cause will not be eligible for severance pay and the Company may contest his or her unemployment claim. Exit Interviews Management may determine that it would be helpful to conduct an exit interview with a departing employee to determine the employee's reasons for leaving and obtaining feedback about the Company and/or workplace. We believe that the information is important and will assist the Company in improving our employee retention and reducing turnover. The time may also be used to arrange for the return of Company property and to answer the employee s questions regarding benefits and other issues. Such interviews are typically conducted during the last week of employment. Final Paycheck Terminated employees, whether such termination is voluntary or involuntary, will be paid final compensation in accordance with federal, state and local law. This final payment will include accrued, unused and unpaid accrued vacation. However, no payment will be made for unused and unpaid sick or other leave days, unless otherwise required by law. Benefits Benefits end on the last day of employment. Employees, unless terminated for gross misconduct, may choose to continue their medical benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, known as COBRA. Contact the Benefits Department for more information. Any employee who is out of active work continuously for six (6) months or more is subject to administrative termination by the Company, subject to applicable state and federal law which TEAM Employee Handbook January 2017 Page 21

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