City of Tolleson Personnel Handbook ii of 93

PERSONNEL HANDBOOK

City of Tolleson Personnel Handbook ii of 93 1. Purpose 1 2. Fair Employment Practices 2 3. Affirmative Action 3 4. System of Merit 4 5. Recruitment & Selection Procedures 5.1 Public notice of a vacancy 5.2 Vacancies a. Open Competitive b. Closed Promotional 5.3 Application Process 5.4 Selection Methods 5.4.1 Criminal History Record Information 5.5 Eligibility Lists 5.6 Notification to applicants a. General Public b. City Staff 5.7 Nepotism 5.8 Residence Requirement 5.9 Regular Part-time & Temporary Employees 5.10 Personal Service Contracts 5.11 Employment Verification 6. Promotional Opportunities 6.1 Policy 7. Probationary Training Periods 7.1 Applicability 7.2 Purpose 7.3 Duration 7.4 Completion of the Probationary Training 8. Position Classification Plan 8.1 Purpose 8.2 Scope 8.3 Responsibility with Respect to Allocation of Positions 8.4 Reclassifications 8.5 Abolishment Of Positions 5 5 5 5 5 5 6 6 6 6 7 7 7 10 10 11 11 11 11 11 13 13 13 13 13 13

City of Tolleson Personnel Handbook iii of 93 9. Compensation 9.1 Policy 9.2 Salary Plan Administration 9.3 Change in Status a. Probation b. Promotion c. Demotion d. Salary Structure Change e. Transfer 9.4 Compensation when Reclassified 9.5 Temporary Assignment Pay 9.6 Holiday Pay 9.7 Fringe Benefits a. Health &Dental Insurance b. Flexible Benefits b1.program Administration c. Workers Compensation d. Life Insurance e. Deferred Compensation Plan f. Retirement g. Uniform Allowance h. Educational Assistance i. Supplemental Benefits 9.8 Overtime Compensation a. Policy b. Overtime Compensation For Non-exempt c. Compensation Time off 9.9 Shift Differential Pay a. Eligibility b. Applicability c. Compensation d. Loss of Eligibility 10. Performance Appraisals 26 11. Employee Performance & Conduct 27 15 15 15 15 16 16 16 16 22 24 12. Anti-Harassment and Discrimination 12.1 Policy 12.2 Definitions a. Discrimination b. Harassment 12.3 Complaint Procedure 12.4 No Retaliation 30 30 30 32 32

City of Tolleson Personnel Handbook iv of 93 13. Disciplinary System Procedures 13.1 Types of Disciplinary Action a. Verbal reprimand b. Written reprimand c. Administrative leaves d. Suspension Without Pay e. Involuntary Demotions or Placement on Probationary Status f. Termination for Good Cause 13.2 Notice of Intent to Discipline 13.3 Appeal Rights a. Applicability b. Appeal Procedures 13.4 Disposition of Appeal 14. Grievance Procedures 14.1 Purpose 14.2 Scope and definition 14.3 Time Limits 14.4 Composition of grievance committee 14.5 Term 14.6 Disqualification 14.7 Advisory resources staff a. Decision 15. Hours of Work 15.1 Purpose 15.2 Work Schedules a. Office Hours b. Work Periods 15.3 Flexible work hours a. Policy 15.4 Provisions 15.5 Procedures 15.6 Lunch Periods 15.7 Rest Breaks 15.8 Employee Responsibility 16. Leaves and Absences 16.1 Purpose 16.2 General 16.3 Vacation 16.4 Sick Leave 33 33 35 35 37 38 38 38 38 40 40 40 40 41 41 41 41 42 42 42 43 43 44 44 44 44 45

City of Tolleson Personnel Handbook v of 93 a. Allowable sick leave b. Limits to Sick Leave c. Payment for Sick Leave upon Termination of employment d. Medical Leave Assistance Program 16.5 Notice of leaves 16.6 Reassignment for health reasons 16.7 Exceptional disability sick leave 16.8 Family leave 16.9 Bereavement leave 16.10 Industrial leave 16.11 Military leave 16.12 Leave without pay 16.13 Holiday leave 16.14 Election Days 16.15 Jury duty a. Guidelines b. Submission of Jury Duty fee Payment to the City 16.16 Witness 17. Employee Development 17.1 Purpose 17.2 Policy 17.3 Eligibility 17.4 Responsibility a. Personnel Department Responsibility b. Departmental Responsibilities c. Tuition Reimbursement 18. Safety and Loss/Risk Management 18.1 Purpose 18.2 Policy 18.3 Enforcement a. Loss Control Policy Committee b. Safety Coordinator c. Discipline 18.4 Responsibility a. Management b. Employees 19. Separations 19.1 Purpose 19.2 Retirement 46 47 47 47 47 47 48 48 48 49 49 50 51 51 51 51 51 57 57 57 57 57 57 58 58 58

City of Tolleson Personnel Handbook vi of 93 19.3 Resignation 19.4 Layoff 20. Drug and Alcohol Policy 20.1 Provisions Covered by Rules 20.2 Drug and Alcohol Testing Policy 20.3 Substance Abuse Policy 20.4 Grounds for Termination or Discipline a. Illegal Drug Use b. Alcohol Abuse c. Failure to Participate d. Consent to Testing e. Use of Legal Drugs 20.5 Testing a. Pre-Employment Drug Abuse Screening b. Reasonable Suspicion Testing c. Random Testing 20.6 Procedures for Testing 20.7 Consequences of Violating This Policy 20.8 Right to Obtain Results 20.9 Right to Explain Test Results 20.10 Confidentiality of Results: Access to Records 20.11 FHA Controlled Substances and Alcohol Use Testing Requirements a. Rules b. Definitions c. Prohibitions d. Required Testing e. Testing Procedures f. Consequences for Engaging in Prohibited Conduct 20.12 Other Policies 20.13 Drug Free Awareness Program a. Treatment b. Discipline 20.14 Other Laws 20.15 Disclaimer 21. Information Technology Regulations 21.1 Purpose 21.2 Employee Access 21.3 Information Technology Usage 21.4 No Expectation of Privacy 21.5 Confidentiality of Information 58 58 59 59 59 59 59 61 62 62 63 63 63 63 71 71 72 72 73 73 73 73 76 76

City of Tolleson Personnel Handbook vii of 93 21.6 Public Record Nature of Email/Confidentiality 21.7 Compensation for Losses, Costs and or Damages 21.8 City Assumes No Responsibility for Unauthorized Charges, Costs or Illegal Use 21.9 Employee questions 21.10 Disciplinary Action 22. Weapons Possession 23. Social Media and Social Networking Websites 23.1 Purpose 23.2 Social Media and Social Networking Websites 23.3 Policy 23.4 Conditions of Approved Use 23.5 Compliance 23.6 Policy Amendments 24. Cell Phone Use 24.1 Purpose 24.2 Policy 25. Conflict of Interest, Solicitation, and Political Activity 25.1 Conflict of Interest - Policy a. Conflict of Interest Disclosure b. Contracts Voidable c. Prohibited Activity 25.2 Solicitation and Distribution Policy a. Generally b. Employee Solicitation c. Employee Distribution d. Announcements for Charitable Opportunity 25.3 Political Activity Policy a. Generally b. Prohibitions c. Permitted Activities 26. Fraud Policy 26.1 Purpose 26.2 Scope of Policy 26.3 Policy 26.4 Prevention 26.5 Actions Constituting Fraud 76 77 77 77 77 78 79 79 79 79 80 82 83 84 84 84 85 85 87 88 91 91 91 91 91 91

City of Tolleson Personnel Handbook viii of 93 26.6 Roles and Responsibilities of Employee 26.7 Investigation Procedures a. Security of Records b. Confidentiality c. Personnel Actions d. Disposition of Investigation 26.8 Retaliation 26.9 Non-Fraud Irregularities 26.10 Distribution of Policy 92 92 93 93 93

City of Tolleson Personnel Handbook 1 of 93 1. PURPOSE This employee handbook is designed to assist you in understanding the personnel practices and benefits in effect at the City at the time of this printing. It is not, however, intended to be a contract and the City, in order to adjust to the needs of its employees and the City in general, reserves the right to amend, change or discontinue the practices and benefits described in this handbook at some future time. Similarly, the City intends to keep the handbook current with contemporary personnel management philosophy and with applicable laws and regulations. We hope the handbook will be helpful to you and you should retain it for future reference. If you have any questions about anything in the handbook, please feel free to contact your supervisor or someone in the Personnel Department.

City of Tolleson Personnel Handbook 2 of 93 2. FAIR EMPLOYMENT PRACTICES The City of Tolleson is committed to comply fully with all laws guaranteeing equal employment opportunity and prohibiting discrimination on the basis of race, religion, color, national origin, sex, age, disability, or political affiliation. The City of Tolleson endeavors to make all of its programs, services, facilities and employment opportunities available to, accessible for, and usable by qualified individuals with disabilities pursuant to The Americans with Disabilities Act (ADA) of 1990 with amendments. It is the policy of the City not to discriminate on the basis of physical or mental disabilities in any of its policies, procedures and practices. This policy specifically applies to employment issues and the application, hiring and promotion processes.

City of Tolleson Personnel Handbook 3 of 93 3. AFFIRMATIVE ACTION The City of Tolleson is also committed to principles of affirmative action, which call for the identification and utilization of minority group members, women, handicapped individuals, and Vietnam veterans throughout all levels of the City's organization while, at the same time, providing equal opportunities for all persons.

City of Tolleson Personnel Handbook 4 of 93 4. SYSTEM OF MERIT All employment decisions related to classified employees shall be based upon individuals' qualifications and their ability to perform the requirements of the job. This shall also be true of employees working in the unclassified service, except that nothing in this section is intended to alter the fact that unclassified employees serve at the pleasure of the City Council.

Notice City of Tolleson Personnel Handbook 5 of 93 5. RECRUITMENT AND SELECTION PROCEDURES U5.1 Public Notice of a Vacancy. U of all City vacancies shall be posted on City bulletin boards at least five days before the last date for filing applications. Notices shall specify the title and pay range for the grade for which the vacancy is announced, the nature of the work to be performed, the necessary minimum qualifications for the position, and the time, place and procedure of application, as well as all other pertinent information relating to the position. U5.2 Vacancies a. Open Competitive. The position shall be open to the public. b. Closed Promotional. These positions shall be open only to City employees who meet the requirements set forth in the promotional vacancy announcements. The Personnel Manager, based on the best interests of the City and taking into account the nature of the position to be filled, shall determine whether a position shall be filled by open competitive or closed promotional processes. U5.3 Application Process. U All applications for employment shall be made on official forms supplied by the Personnel Department. The forms may require information on education, training, experience and other information deemed pertinent and allowable by law. In addition, based on the position to be filled, supplemental documents may be required. Resumes will be accepted only as a supplement to the application. Applications will be accepted only when a position or vacancy occurs. U5.4 Selection Methods. U The Personnel Officer shall determine the appropriate selection methods to determine the maximum eligibility for a particular position. As part of the selection process, applicants may be required to have a physical examination, which may include drug testing, in order to assist in determining eligibility. 5.4.1 Criminal History Record Information. Resolution 2013 Adopted10/12/10 In accordance with Section 2-4-1(C) of the City Code and as a condition of employment, all current and prospective employees, contract employees and volunteers of the City who, as a result of their positions, may come into contact with or be in the proximity of children or vulnerable adults, as defined in A.R.S. 13-3623, or whose positions involve fiduciary responsibilities or access to safetysensitive, private or confidential information, including but not limited to Information Technology, Finance, Senior Center, Community Action Program, Library, Fire, Police, Volunteer and the City Court, shall furnish a full set of fingerprints on a standard fingerprint card to the Human Resources Director to

City of Tolleson Personnel Handbook 6 of 93 enable the City to conduct a criminal history record investigation to determine the suitability of the individual for such a position pursuant to A.R.S. 41-1750 and Public Law 92-544. The City shall bear the cost of obtaining such criminal history record information and shall use it solely for the purpose of evaluating the fitness of prospective employees, volunteers, or promotional employees of the City. U5.5 Eligibility Lists. U The Personnel Department shall prepare and maintain certified eligibility lists consisting of names of those candidates who have qualified, following the entire selection process, for appointment to a job classification. Qualified candidates will ordinarily be eligible for consideration for up to one year. The Personnel Officer, however, may determine that the eligible period will be longer or shorter than one year. In addition, the Department Heads and the Personnel Officer may participate in supplemental recruitment, in order to supplement a current eligibility list with additional candidates, when circumstances warrant. U5.6 Notification to Applicants. a. General Public. All applicants for all positions shall be notified in writing of the status of their application (for example, selected or not selected) by the Personnel Officer. b. City Staff. All applicants shall be notified by the Personnel Officer of the status of their application at both the screening stage and the final screening stage. When applicable, the notice will explain what additional skills, knowledge or other requirements are necessary in order to attain the desired position. U5.7 Nepotism. Any of the following relatives will ordinarily not be permitted to work in the same department in which a relative is already employed: husband, wife, daughter, son, grandparent, grandchild, sister, brother, aunt, uncle, niece, nephew, first cousin, mother-in-law, father-in-law, brother-in- law, sister-in-law, son-in-law, daughter-in-law. However, in the interest of the City service, the City Manager, with the approval of the City Council, may authorize the appointment of a relative of an employee to the same department. U5.8 Residence Requirement. U All employees shall be encouraged to live within the City limits in order that they become and remain sensitive to the needs of the community. Beyond that, the City Manager may impose specific residency requirements with respect to certain jobs, in order to meet service delivery requirements. In these situations, the City Manager may grant exceptions based on considerations of relocation, financial or personal hardship.

(A.R.S. City of Tolleson Personnel Handbook 7 of 93 U5.9 Regular Part-Time and Temporary Employees. U The Personnel Department will be responsible for filling all part-time and temporary positions. Temporary employees are hired by the Department Heads upon approval of the City Manager or designee. The Personnel Department will maintain a list of individuals interested in regular part-time or temporary work. Generally, the same guidelines for filling full-time regular positions will apply when filling positions for part-time employees. U5.10 Personal Service Contracts. U Personal services contracts may be awarded to analysts, consultants or other persons, in order to obtain services which require professional skills, unique experience or expertise or a high degree of independent judgment and initiative. Personal service contracts submitted for City Council approval shall meet all City Code procurement standards. U5.11 Employment Verification. Resolution2010 Adopted 9/14/2010 POLICY 1. Generally. In accordance with the HImmigration Reform and Control Act of 1986H and as a condition of employment, the City shall verify both the identity and the employment eligibility of all newly-hired employees. 2. Non-Discrimination. It is the intention of the City not to discriminate in hiring on the basis of national origin and citizenship status except as otherwise required by law. 3. E-Verify. The HLegal Arizona Workers Act H 23-211, et seq.) requires the City to use the HE-Verify Program H, a federal government Internetbased system that allows it to electronically verify the employment eligibility of newly-hired employees. The program is used for all new hires and after completion of the Form I-9. The City will not use the E-Verify program to prescreen applicants. PROCEDURE 1. Generally. All employees shall be required to complete the biographical information requested in Form I-9. The employee shall attest that the

City of Tolleson Personnel Handbook 8 of 93 employee is eligible for employment and has presented authentic, original documentation of identity and employment eligibility. 2. Documents. The candidate shall furnish acceptable documents listed in HForm I-9H in order to substantiate both the employee s identity and employment eligibility. 3. Under 18. Persons under age 18 and who are unable to present a document listed in Form I-9 that establishes identity may submit a document in List C on the Form I-9 that establishes employment authorization i.e. a birth certificate issued by a State, county, municipal authority or territory of the U.S. 4. Post-Hiring Requirements: a. Within three business days after the date of hire, the Human Resources Director or designee shall physically examine the documentation presented by the new employee, and then complete the remaining portions of Form I-9. b. The Human Resources Director shall retain Form I-9 for three years after the effective date of hire or for one year from the date of the employee s separation from service, whichever is later. c. Form I-9 and the E-verify results shall not be used for any purpose or provided to any agency or person except as required by law. d. Should an employee be rehired or reinstated by the City within three years of the date the original I-9 was completed, the City may use the original Form I-9 and supporting documentation for the purpose of complying with the Immigration and Nationality Act. e. The Human Resources Director shall retain a record of the E-verify employment eligibility verification report for the duration of the employee s employment or at least three years, whichever is longer. 5. E-Verify Procedures. a. The City may not take any adverse action against any employee because the employee contests a tentative non-confirmation. Upon receipt of a tentative non-confirmation, the City will discuss the results in private with the employee and provide the employee with a notice giving the employee

issued City of Tolleson Personnel Handbook 9 of 93 the choice of whether or not to contest the tentative non-confirmation. If the employee chooses to contest, the employee must indicate such on the notice and return the signed notice to the City. Upon receipt of a signed notice contesting the tentative non-confirmation, the City will provide the employee with a referral notice instructing the employee to contact the Department of Homeland Security or Social Security Administration within eight federal work days from date of receipt. b. The City may terminate the employee only upon receipt of a final nonconfirmation, or upon notice the employee has chosen not to contest the tentative non-confirmation. c. The City shall post a HnoticeH indicating its participation in the program and the Hanti-discrimination notice H by the Office of Special Council for Immigration-Related Unfair Employment Practices (OSC).

City of Tolleson Personnel Handbook 10 of 93 6. PROMOTIONAL OPPORTUNITIES U6.1 Policy.U It is the City of Tolleson's policy to encourage and to assist in the professional growth and development of its employees.

City of Tolleson Personnel Handbook 11 of 93 7. PROBATIONARY TRAINING PERIODS U7.1 Applicability.U This section pertains only to those employees in the classified service, as set forth in the Personnel Ordinance. U7.2 Purpose.U The probationary training period is an integral part of the position selection screening process. It is intended to allow an employee to demonstrate that he or she can meet all of the necessary qualifications to perform in the new position. At the same time that it permits the supervisor time to observe the employee's performance, it provides an opportunity for training and assisting the employee to adjust to the position. U7.3 Duration.U Generally, all persons entering a new job position, whether by original hire or promotion or demotion, shall be subject to a probationary training period of one year. The City retains discretion, however, to determine, based on performance or other considerations, that employment should be terminated prior to the expiration of the one year probationary period. Employees working during a probationary period as a new hire, or as a result of a demotion, shall be subject to dismissal from City employment at the recommendation of the Department Head with Personnel Department approval and thus may be terminated with or without good cause. Notwithstanding any verbal statements that may have been made to the employee or applicant for employment, or the language of any other provision of this handbook or any other document, probationary employees shall be terminable at will. In those instances in which a probationary employee has been dismissed without any specific cause being given the employee shall not be entitled to a hearing to challenge the dismissal. In those instances in which the employee was given specific reasons for the dismissal, the Personnel Officer may, at his/her discretion, decide that the probationary employee may be given a hearing to challenge the dismissal. Those employees who have passed a probationary period as a result of a promotion to a new classification, may not be dismissed absent good cause and shall be entitled to a hearing in order to challenge a dismissal. A Department Head with Personnel Department concurrence, may determine the probationary training period has been completed, for an individual employee, at anytime after the completion of six months of the probationary training period. A Department Head with Personnel Department concurrence may extend a probationary training period. In no event, however, shall the probationary training period extend beyond eighteen months. U7.4 Completion of the Probationary Training. U At the completion of a probationary training period, one of the following personnel actions shall occur:

City of Tolleson Personnel Handbook 12 of 93 a. With respect to new employees subject to a probationary training period, advancement to regular status in the job position. Salary increase will be consistent with the compensation policies on their one-year anniversary date. b. With respect to employees subject to a probationary training period as a result of a promotion to a new job classification and maintenance of their anniversary date. c. With respect to employees subject to a probationary training period as a result of a promotion to a new job classification, who fail to perform satisfactorily during that period, either lateral transfer, demotion or termination may occur. The employment action taken will depend on the circumstances, and will be determined by the Department Heads with Personnel Officer approval. d. Termination of an employee in an initial hire probationary training period or a probationary period resulting from a demotion. e. Extension of the probationary training period as set forth above. If a promotion occurs during an extended training period, the required one year probationary training period will begin again and the anniversary date for the employee will remain the same.

City of Tolleson Personnel Handbook 13 of 93 8. POSITION CLASSIFICATION PLAN U8.1 Purpose. UThe purpose of the position classification plan is to ensure that all positions substantially similar in duties, responsibilities and character of work are included within the same grade and are evaluated and compensated in an equitable manner. U8.2 Scope. UThe plan shall cover all classified and unclassified service positions. U8.3 Responsibility with Respect to Allocation of Positions. Based on studies by the Personnel Department, or by outside consultants retained by the City, each position in the classified and unclassified service shall be allocated to the appropriate classification pay grade. The Personnel Review Committee will screen the information and make recommendations to the City Manager who will make the final determination concerning the classified service. The City Council will make the final determination regarding the unclassified service. Neither the determination of the City Manager nor the City Council shall be subject to the grievance procedures. U8.4 Reclassifications. When the duties of a job position change substantially, either reflecting increased or decreased levels of responsibility, and the change is one which will be long-term rather than short-term in nature, a request to study and to evaluate the position for possible reclassification may be submitted by the Department Head to the Personnel Department. Once studied, the position will be allocated to its appropriate classification and pay grade. Reclassification shall only be based on a change in job duties and responsibilities and shall not be based on quality of performance. An employee who believes that reclassification is warranted may request a reclassification analysis either to the Department Head or to the Personnel Officer. Regardless of whether a reclassification analysis has been initiated by the Department Head, the employee, or the Personnel Department as part of a periodic study of positions, appropriate adjustments may be recommended by the Personnel Department and may be approved by the City Manager. U8.5 Abolishment of Positions. If, due to a change in circumstances, a position no longer is necessary within the classified service, a recommendation to abolish a position may be made by the Personnel Officer to the City Manager. The City Manager may make a final determination as whether a classified position should be abolished. The City Council, based on recommendations from the City Manager, may make a final

City of Tolleson Personnel Handbook 14 of 93 determination as to whether an unclassified position should be abolished.

City of Tolleson Personnel Handbook 15 of 93 9. COMPENSATION U9.1 Policy. The City's policy is to recognize and compensate employees for the work they perform in a fair and equitable manner. U9.2 Salary Plan Administration. The salary plan shall include all classifications (hereafter may also be referred to as grade) in the classified and unclassified service. Salary structure shall consist of salary grades. Performance salary increases shall be based on an employee's overall annual performance and employees shall be eligible for an increase on an annual basis only. "Special" salary adjustments will not be granted except as to reclassifications. Employees are also eligible for general wage increases when approved by the City Council. U9.3 Change in Status a. Probation. Upon successful completion of a six-month probationary training period, the salary increase will be consistent with compensation policies on the one-year anniversary date. b. Promotion. (Ordinance 378 Adopted 1/12/99)Promoted employees shall be given an increase of five (5%) or to the new minimum, whichever is greater, in the new higher salary grade. Their anniversary date will remain unchanged. c. Demotion. Employees who are voluntarily demoted shall be placed in the new classification (grade), and their salary placed at an equivalent level within the new grade. Under no circumstances, however, shall their salary exceed the maximum rate for the new, lower salary grade. Employees who are demoted involuntarily as a disciplinary action shall be placed in the new grade and their salary reduced from their present salary. Their salary shall not exceed, however, the maximum rate for the new lower salary grade. In both cases, their anniversary date shall remain the same. d. Salary Structure Change. When a change is made to the total salary structure or to the minimum and maximum of an individual's classification, an increase will be given to the individual(s) to the new minimum of the classification(s). e. Transfer. Employees who laterally transfer shall retain their present salary grade and their anniversary date.

This City of Tolleson Personnel Handbook 16 of 93 U9.4 Compensation When Reclassified. a. When an employee's position is reclassified to a higher level classification, or when a classification is assigned to a higher salary grade, the employee's salary shall be adjusted to the minimum level in the new grade. If it falls below the minimum of the new grade, the increase will be the amount necessary to place the salary in the new grade. b. An employee whose position is reclassified to a lower level classification, or whose classification is assigned to a lower salary grade, shall retain his or her present salary. If their salary exceeds the maximum rate for the new, lower salary grade, they shall receive the maximum salary rate for the new, lower grade. U9.5 Temporary Assignment Pay. An employee may be compensated at a higher pay rate when placed in a position of higher responsibility, on a temporary assignment basis, when the period of the assignment is not less than one month, retroactive to the first day of the temporary assignment. Temporary assignment salary may be allowed for that period of time, having first been approved by the Department Head and the City Manager. If the temporary assignment salary is allowed, the amount of the salary will be at the minimum rate for the temporary grade, at the discretion of the City Manager. A temporary assignment salary is a temporary measure and not a vehicle for reclassification. Such salary shall continue only until the temporary assignment has been terminated and it shall not continue past ten months. If it appears the duties will be permanent in nature, the Personnel Officer and the Department Head, after the ten-month period, will conduct a study to determine the proper classification. U9.6 Holiday Pay. UAll full-time employees shall receive compensation as outlined in the pertinent administrative policy if they are unable to receive the holiday or an alternative day off. (See Section 16.13 Holiday Leave) U9.7 Fringe Benefits. U section summarizes the fringe benefits presently provided by the City of Tolleson. The terms and conditions of the official plan summarizes control over this summary and should be reviewed for more detailed information. a. Health and Dental Insurance. Subject to the approval of City Council, the City provides health and dental insurance to regular, full-time employees. If a regular employee desires coverage beyond that which is provided by the City, insurance coverage at group rates is available. Insurance coverage begins thirty days after the first day of the month

City of Tolleson Personnel Handbook 17 of 93 following the employee's first day of employment and when all eligibility requirements have been met. It will be the responsibility of the employee to submit all necessary forms for insurance coverage. b. Flexible Benefits. The flexible benefits program is designed to allow employees greater choice in selecting their benefits. Ub.1. Program Administration. U Each year during an open enrollment period, employees may select which benefits they would like from a list of health and dental options. For the next year, they will be covered by those benefits. During the next enrollment period, they may change the benefit package to meet changing needs. The City of Tolleson will maintain a core of benefits under which all full-time employees will be covered. These are employee medical, employee dental and long-term disability. c. Workers' Compensation. The Workers' Compensation laws define benefits to be paid to the employee injured in the course and scope of their employment. d. Life Insurance. Life Insurance is provided by the City and is subject to annual change. Life Insurance options for family coverage are available. Effective dates for life insurance coverage begin at the same time as the employee health and dental insurance. e. Deferred Compensation Plan. This plan shall be administered by the City's Personnel Officer. Under this optional plan, an employee may choose to defer a portion of his or her income through payroll deduction. The deferred amount is not taxable at this time, and various options are available for the investment of these funds. By deferring income, an employee may lower the taxes they currently pay. f. Retirement. Regular full-time City employees are enrolled in the Arizona State Retirement System or the Public Safety Personnel Retirement System. The latter system is for commissioned police and fire employees. Deductions are made from each pay check and the City also contributes a designated amount. Both contributions, plus earnings, provide for retirement. For non-eligible Public Safety employees, other retirement options are available, i.e., ICMA. g. Uniform Allowance. Employees who are required to wear uniforms shall be issued an annual uniform allowance and shall be responsible for the laundering and maintenance of their uniforms. Modifications to this

City of Tolleson Personnel Handbook 18 of 93 policy may be made by the individual departments with City Manager approval. h. Educational Assistance. The City of Tolleson regards the personal and professional development of its human resources as an important element of its organizational mission. The individual growth of each employee is seen as a contributing factor to the growth of the City. Therefore, it is the City's policy to encourage employee development through tuition reimbursement and training opportunities. Tuition reimbursement shall be governed by the pertinent administrative policy. (See Section 17-Employee Development) i. Supplemental Benefits Plan for Public Safety Employees. Resolution 2118 1/22/2013) 1. Purpose. The purpose of this Supplemental Benefits Plan for Public Safety Employees ( Plan ) is for the City to satisfy the requirements of A.R.S. 38-961 ( SBP Statute ) and to provide additional economic benefits as provided therein for eligible employees of the City. The SBP Statute requires a political subdivision of the State of Arizona to establish a supplemental benefits plan for its public safety employees who satisfy certain eligibility criteria. The Plan shall be effective from and after August 2, 2012, and shall continue for the minimum period it is required to be maintained by the SBP Statute, unless extended by an amendment to the Plan made pursuant to 4.ix below. 2. Eligibility. An employee of the City shall be eligible to participate in the Plan, and to continue participating in the Plan, only if and for so long as the employee satisfies all of the following criteria ( Participant ), namely, the employee shall: i. Be a police officer or a fire officer who is employed full-time by the City at the time of injury and who is a member of the Public Safety Personnel Retirement System at the time of the injury; ii. iii. Be injured while on duty and be unable by reason thereof to perform the functions of his or her position; Be eligible for workers compensation benefits pursuant to A.R.S. 23-1021; iv. Be receiving workers compensation lost-time wage replacement benefits pursuant to A.R.S. 23-1041 and related statutes and provide evidence thereof to the City;

City of Tolleson Personnel Handbook 19 of 93 v. Request supplemental benefits under the Plan, in writing on a form provided by the City, within thirty (30) days after receiving his or her first payment of workers compensation lost-time wage replacement benefits pursuant to A.R.S. 23-1041; vi. vii. Participate in all risk management activities related to the employee s workers compensation injury, including evaluation for light duty assignment and rehabilitation programs; Be physically unable to return to work in the employee s position or to perform services for the City in any capacity, including alternative work assignments or light duty to which the employee is assigned by the City, and such inability is established by appropriate medical documentation from either (i) an independent medical exam ordered by the City directly or through its workers compensation insurance provider or (ii) the employee s physician, whichever is selected by the City; viii. Remain a full time employee of the City during the time period the employee is receiving benefits under the Plan; ix. Be injured in a manner that is not caused by, and is not subsequently made worse or the employee reinjured by, either (A) the employee s gross negligence or (B) an unapproved activity regardless of whether a physical fitness activity and regardless of whether performed during or outside of work hours; and x. Follow all other City policies and procedures for requesting benefits as outlined in the Plan or as adopted by the City from time to time. 3. Benefits. The following benefits will be provided by the City to the eligible Participant commencing on the date the employee receives his or her first payment of workers compensation lost-time wage replacement benefits pursuant to A.R.S. 23-1041 and continuing for up to, but not in excess of, six (6) months, but in any case only for so long as such eligibility criteria continue to be satisfied: i. Payment on the City s regular payroll payment dates of an amount equal to the excess, if any, of (i) the Participant s base salary at the time of the injury over (ii) the sum of (A) the workers compensation benefits paid to the Participant pursuant to A.R.S. 23-1041 and related statutes and (B) all taxes the Participant was having withheld from his or her base

City of Tolleson Personnel Handbook 20 of 93 salary at the time of the injury, and (C) all deductions, including voluntary deductions, from the Participant s base salary at the time of the injury. ii. iii. iv. Continued payment of the employer portion for health care benefits paid by the City at the time of the injury. The Participant continues to be responsible for paying the same portion of his or her health care benefits as he or she was paying at the time of the injury and for any optional health related deductions and any optional life insurance deductions. Payment of both the employer and the employee contributions to the Public Safety Personnel Retirement System that were being paid at the time of the injury; Receive credit for service in the Public Safety Personnel Retirement System at the same accrual rate as was in effect at the time of the injury; and v. All accrued and unused balances of sick leave, vacation leave, and personal time off at the time of the injury, if any, will not be decreased; provided, however, the Participant will not accrue any additional sick leave, vacation leave, and personal time off while the Participant is receiving benefits under the Plan. If and to the extent a Participant s base salary is increased or any of the applicable benefits are modified while the Participant is receiving benefits under the Plan, the benefits provided to the Participant hereunder shall be adjusted accordingly. For example, if all employees are provided automatic base salary increases as part of an annual process, the Participant will receive benefits under the Plan based on his or her new base salary. Such adjustments may or may not be beneficial to the Participant under 3.ii through 3.v. For example, if the City changes its contribution for health care premiums from 80 percent to 70 percent, the Participant would be required to pay the additional premiums in the same manner as other similarly situated employees. 4. Procedures. The Plan will be operated in accordance with the following policies and procedures and such additional policies and procedures as the City may adopt from time to time. i. The City will appoint a person to act as the Plan administrator, who may be removed and replaced by the City in its sole

City of Tolleson Personnel Handbook 21 of 93 discretion. The Plan administrator will receive requests for benefits under the Plan in writing on a form provided by the City from the employee. The request for benefits must address each of the eligibility criteria set forth above and must be received by the City within thirty (30) days after the employee s receipt of his or her first lost-time wage replacement benefit paid under workers compensation. The employee s failure to deliver a complete and timely request for benefits shall be conclusively deemed to be a waiver of any rights to the benefits provided by the Plan. ii. iii. iv. The employee also must provide to the City any other information reasonably requested by the City to determine the employee s initial eligibility and thereafter continued eligibility for benefits under the Plan, including without limitation required medical documentation. The City will review and investigate the employee s written request for benefits, the circumstances surrounding the employee s injury, the employee s eligibility for and receipt of workers compensation benefits, and any other factors the City deems relevant. The City will provide to the employ a written determination of the employee s eligibility for benefits under the Plan within thirty (30) days after the City s receipt of the employee s timely and complete request for benefits. An employee who requests and a Participant who receives benefits under the Plan shall cooperate fully with the City and with all other persons working to coordinate benefits hereunder. v. If an employee is denied participation in the Plan, the employee has a right to appeal the City s decision. The exclusive appeal process is as follows: (a) The employee shall deliver to the City Manager s office, within ten (10) business days after the date the employee received the City s letter denying benefits, a written appeal stating the reasons for the appeal and the facts supporting the employee s position. (b) The City Manager will consider the appeal and any other information the City Manager might request from the Plan administrator and will send to the employee a written opinion affirming or denying eligibility within ten

City of Tolleson Personnel Handbook 22 of 93 (10) business days after the City Manager receives the employee s timely and complete appeal. (c) If the City Manager is also the Plan administrator, the appeal instead will be delivered to and decided by the City Council. Provided, however, the City Council shall have thirty (30) business days to render a written opinion on the appeal. (d) A business day means each day on which the Tolleson City Hall complex is open to the general public. vi. A Participant s eligibility or receipt of benefits under the Plan shall not preclude the City from taking disciplinary action, including termination, respecting the Participant. Nothing in the Plan gives to any Participant any right to continued employment with the City. vii. The Plan does not supersede any contract or any other plan or policy of the City that provides for greater benefits than are provided hereunder. viii. A Participant has no right or power to sell, assign, pledge or otherwise transfer any benefits provided under the Plan. ix. The City many amend or modify the Plan in whole or part from time to time so long as the amendment or modification is consistent with the SBP Statute. The City may terminate the Plan if and when permitted under the SBP Statute. 9.8 Overtime Compensation. Resolution 2110) It is the purpose of this Overtime Policy to protect the interest of the City of Tolleson and its employees by providing standards for overtime compensation, doing so in a manner consistent with State Law and the Fair Labor Standards Act (FLSA). a. Policy. The City's policy on overtime shall be governed and described by the pertinent administrative policy. Overtime Pay Pay at a rate of one and one-half (1-1/2) times the regular rate of pay at which a person is employed. Compensatory Time - Time off in lieu of overtime pay for certain non-exempt employees who work overtime pursuant to the FLSA.

City of Tolleson Personnel Handbook 23 of 93 Non-Exempt - Those classified employees who are not exempt from the overtime pay requirements of the FLSA. Exempt - Those classified and unclassified employees who are exempt from the overtime pay requirements of the FLSA and are paid a fixed amount (salary) regardless of the number of hours worked in a week. b. Overtime Compensation for Non-Exempt Employees. Employees will receive overtime compensation for all hours worked in excess of 40 hours in a workweek, except that sworn fire protection employees will receive overtime compensation for hours worked in excess of 106 hours in a 14-day work period, which runs concurrently with the City of Tolleson payroll cycle. When a sworn fire protection employee substitutes for another employee through an absent with relief (AWR) arrangement, the hours worked by the substituting employee will not be included in any overtime calculation; each employee will be credited as if he or she had worked his or her normal work schedule for that shift. For employees other than sworn fire protection employees, overtime may be compensated by either (a) overtime pay or (b) by compensatory time off at 1-1/2 times the overtime hours worked, upon prior agreement between the employees and the department, subject to compliance with minimum FLSA requirements. Overtime for sworn fire protection employees will be compensated by overtime pay. Overtime must be authorized in advance each time the overtime is to be worked and according to the department's established guidelines. Written requests may be required. For purposes of calculating overtime pay, vacation, sick leave, holiday and other leave taken during the work period shall not be considered time worked and shall be deducted from "hours worked" during the workweek for the overtime calculation. c. Compensatory Time Off. In accordance with the FLSA, the City of Tolleson has established this policy of granting certain non-exempt employees compensatory time off ( compensatory time or comp time ) in lieu of overtime pay for hours worked in excess of 40 hours per workweek. This policy is designed for departments that do not have an overtime budget. Compensatory time is earned at a rate of 1-1/2 hours for each hour of overtime worked in excess of 40 hours in one workweek. In conjunction with Chapter 16, Section 16.3, non-exempt employees who are required to work on a city-recognized holiday will receive, in addition to holiday

City of Tolleson Personnel Handbook 24 of 93 pay, compensatory time at a rate of 1-1/2 hours per hour for all hours worked on the holiday up to 8 hours. On the week of the holiday, compensatory time may be earned for hours worked on the holiday even if the employee does not work a full 40 hours uring the workweek. Earned compensatory time may accumulate up to a maximum ceiling of 60 hours in a given calendar year. After an employee has reached the maximum number of hours permitted in their compensatory time bank, the employee will be compensated for overtime with overtime pay. Compensatory time may be used in the same manner as vacation leave. Unused accumulated compensatory time is paid (cashed out) to the employee at termination, retirement, promotion to an exempt classification or transfer to a department that does not grant compensatory time. Paid out compensatory time will be paid at the final regular rate of pay or the average regular rate during the last three years, whichever is higher. Accumulated compensatory time may roll over each calendar year at a maximum of 60 hours. 9.9 Shift Differential Pay (Ordinance 459 Adopted 7/24/07, Revised Resolution 2071 2/14/2012 ) The City desires to attract, reward, recognize, and retain employees by establishing the conditions under which City employees may be additionally compensated for work during second and third shifts. Therefore, this policy is established to provide certain designated categories, additional compensation for hours worked between 5:00 p.m. and 5:59 a.m. a. Eligibility - Shift differential pay shall apply only to regular, non-exempt, full-time and part-time employees. Sworn fire personnel, exempt employees, contractual, and temporary employees are not eligible for shift differential pay. If an employee works first shift, where, less than 50% of the total scheduled hours during the shift occur in either the second or third shift the employee will not be eligible to receive shift differential pay. Shift differential is paid for employees working second or third shift. In addition, if an employee scheduled to work the first shift works extended hours over to a second or third shift, he/she will be eligible for shift differential pay if 50% or more of his/her work hours occur on a second or third shift. Shift differential is not paid to employees on paid or unpaid leave (i.e. vacation, personal, sick, or leave without pay). An employee who is called back to work outside his/her regularly assigned shift shall receive shift

City of Tolleson Personnel Handbook 25 of 93 differential if he/she work 50% or more hours on a second or third shift. b. Applicability - Second shift differential pay shall apply if at least 50% of the regularly scheduled total hours during the scheduled shift occur between 5:00 p.m. and 11:59 p.m. Third shift differential pay shall apply if at least 50% of the regularly scheduled total hours during the scheduled shift occur between 12:00 a.m. and 5:59 a.m. Response incentive, restricted, call in pay, and unrestricted stand-by pay shall not be subject to shift differential and shall be paid at the regular rate of pay. During industrial leave, workers compensation benefits will include shift differential pay in the calculation of workers compensation benefits pursuant to Arizona Revised Statute 38-881. c. Compensation - Second shift differential pay shall be at a rate of $.40 per hour in addition to the employee's regular rate of pay using an additional pay code, and will include all hours worked per qualifying shift. Third shift differential pay shall be at a rate of $.55 per hour in addition to the employee's regular rate of pay using an additional pay code, and shall include all hours worked per qualifying shift. d. Loss of Eligibility - If an employee is removed temporarily or permanently from his/her second or third shift into first shift that is worked during regular City hours the employee will not receive shift differential pay for first shift work.