Target Time-off Program Guide For Exempt Team Members

Target Time-off Program Guide For Exempt Team Members

Contents Time-off Program Overview... 3 Vacation & Personal Holidays Plan... 3 National Holiday Plan... 8 Well-being Time Plan... 10 Bereavement Plan... 12 Permissive Sick Plan... 15 Voting Plan... 17 Jury Duty/Witness Duty Plan... 18 *Ctrl+click headers in Table of Contents to follow link to relevant page Target is pleased to introduce its new time off program and thinks that team members will be pleased by the changes. By continuing your employment at Target, you agree and acknowledge that the old time off policies, and any other agreements related to time off/vacation are no longer in effect and that the new time off program is the entire, and only, agreement regarding your time off at Target. Page 2 18

Time-off Program Overview Helping you maintain a healthy work-life balance. Supporting your well-being. At Target, we value your well-being and encourage work-life balance. Our comprehensive time-off plan allows you to take time to enjoy activities and interests outside of work that support your well-being. Vacation & Personal Holidays Plan Time to recharge, rejuvenate and celebrate. Taking time for things that matter. Target offers paid vacation so you can relax, travel, hang out with family and friends, or spend time in other ways that recharge and rejuvenate you. Personal holidays are designed to provide you with additional time off to celebrate days that are important to you such as holidays not observed by Target (e.g. Martin Luther King, Jr. Day) your anniversary or your birthday. Except as provided by law in certain states, team members accrue vacation and personal holiday time only as a gratuity or a gift, not as wages, and salary or other wages are not paid in lieu of unused vacation and personal holiday time. The ins and outs of eligibility and accrual. Who's eligible? As an exempt team member, if your standard hours are 20 or more hours per week, your vacation and personal holiday accrual begins on the first day of the pay period following your date of hire. If your hire date is the first day of the pay period, your accrual begins on that date. There is no need to enroll or sign-up for participation; you are automatically enrolled in the plan. Moving from an exempt to non-exempt role. If you move into a non-exempt role, your vacation accrual maximum may be reduced. If this happens, you will stop accruing vacation until you fall below your new maximum accrual. Inter-Target and location transfers. Personal holidays and vacation will not be paid out for domestic inter-target or location transfers. Instead, they will be carried over to the new operating company or location. Understanding how accrual works. Remember, unless required by law, vacation and personal holiday time accrue to team members as a gratuity or a gift, not as wages, and salary or other wages are not paid in lieu of unused vacation and personal holiday time. You accrue vacation and personal holiday time each pay period. All paid hours, based on your standard hours as defined by Target, and your years of service are used to determine your vacation and personal holiday accrual each pay period. You do not accrue vacation or personal holiday time during unpaid time off, such as an unpaid leave of absence, unless required by law. Page 3 18

Your vacation and personal holiday plan benefits are based on your length of service. When you reach 5 and 15 years of service, your accrual amount will increase on the first day of the pay period following your service anniversary. The plan limits the number of vacation and personal holiday hours you can accrue on an annual basis. Target's time-off benefits plan year follows the calendar year. If you enter the plan late in the year, you may not reach the annual accrual for that plan year. Accrual maximums and carrying over balances. The maximum amount of vacation or personal holiday hours you can accumulate is 1.5 times your annual accrual limit. Once you have accrued the maximum, you will stop accruing additional vacation or personal holiday hours until you use some or all of the hours already accrued. The plan allows you to carry over your unused accrued hours each year, up to the maximum accrual. Seeing the big picture accrual charts. The following charts show the Annual Accrual Limit, Maximum Accrual, and the Accrual Rate per Hour Paid based on years of service for vacation and personal holiday benefits. Vacation Accrual Charts: Exempt team member: Example assumes 40 hours per week for 26 pay periods. Years of Service Accrual Rate Per Pay Period Up to 5 years 4.61536 Annual Accrual Limit 3 weeks (120 hours) Maximum Accrual 4.5 weeks (180 hours) Greater than 5 through 15 years 6.15384 4 weeks (160 hours) 6 weeks (240 hours) Greater than 15 years 7.69230 5 weeks (200 hours) 7.5 weeks (300 hours) Personal Holiday Accrual Chart: Exempt team member: Example assumes 40 hours per week for 26 pay periods. Years of Service Up to 5 years Accrual Rate per Pay Period.92307 Annual Accrual Limit 3 Days (24 hours) Maximum Accrual 4.5 Days (36 hours) Page 4 18

Greater than 5 years 1.23076 4 Days (32 hours) 6 Days (48 hours) Requirements for requesting and submitting your time. You'll need supervisor approval. Before you can take vacation or personal holiday time, coordinating the time off with your supervisor is required. Depending on business conditions, vacation or personal holiday time may not be approved. You are encouraged to discuss your vacation/personal holiday plans with your supervisor early to determine if your plans fit with the operations of your department or location. Be timely when submitting time. Vacation and personal holidays are tracked online using the Online Vacation/PH Submission form. This may be done before or after a vacation, but it is important that team members complete the submission form in a timely manner to avoid reaching maximum accrual. Submit vacation hours based on your schedule. Team members should submit the number of vacation hours they would normally work for the time that they are away. Vacation time should be submitted in half-day and full-day increments based on the team members work schedule. For example: If a team member typically works: 40 hours in 5 x 8 hour shifts 36 hours in 3 x 12 hour shifts 40 hours in 3 x 12 hours shifts Number of hours to submit for full-day Number of hours to submit for half-day 8 hours 4 hours 12 hours 6 hours 13 hours 7 hours Submit personal holiday hours in 8 or 4 hour increments. Team members must take personal holidays in full or half-day increments. Regardless of their schedule and shift length (5x8, 4x10 or 3x12), team members always use 8 hours for a full day personal holiday and 4 hours for a half-day personal holiday. As an exempt team member, you are only required to submit vacation/personal holiday time if your time away for non-work matters extends a half-day or a full day. If you are gone for less than a half of a day, you are not required to submit vacation time. It is expected that you manage your schedule to ensure completion of your job responsibilities. Page 5 18

Submit in half-day and full-day increments. As an exempt team member, you are only required to submit vacation/personal holiday time if your time away for non-work matters extends a half-day or a full day. If you are gone for less than a half of a day, you are not required to submit vacation time. It is expected that you manage your schedule to ensure completion of your job responsibilities. How soon can you take vacation and vacation pay rates? You may begin taking accrued vacation as soon as you have accrued at least a half-day of vacation. Your vacation will be paid at your normal rate. The amount of vacation you can take is based on your normal workweek. What's so important about January 1, 2016? Vacation you have accrued and not used before January 1, 2016, will be maintained separately from time you earn on or after January 1, 2016. Any vacation you earned and did not use before January 1, 2016, will be used up before vacation time you earn on or after January 1, 2016. What about termination, what happens then? Accrued but unused vacation time. As explained previously, Target s vacation time is a gratuity or a gift offered by Target and is not considered wages or paid in lieu of taking vacation time unless required by law. Thus, if your employment is terminated for any reason, whether voluntarily or involuntarily, all unused vacation accrued after January 1, 2016 will be forfeited unless you work in California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota, or Rhode Island, or your employment ends because of your retirement or death. If you have any unused vacation earned prior to January 1, 2016*, or you work in one of the states listed above, your vacation will be paid to you upon termination. If required by law, payment of accrued and unused vacation will be paid in a lump sum. Accrued but unused personal holiday time. Personal holidays are also a gratuity or a gift offered by Target and are not considered wages or paid in lieu of taking personal holidays unless required by law. Therefore, personal holiday hours earned but unused will not be paid to you upon termination, whether voluntary or involuntary, unless you work in California, Colorado, Illinois, Massachusetts, Montana, Nebraska, North Dakota, or Rhode Island.**If required by law, payment of accrued and unused personal holidays required by law will be paid in a lump sum. *If you work in Louisiana and your employment is terminated for any reason other than your retirement or death, all unused vacation accrued after December 17, 2016 will be forfeited. If you have any unused vacation accrued prior to December 18, 2016 that vacation will be paid to you upon termination. Any payment of accrued and unused vacation required by law will be paid in a lump sum. ** If you work in Louisiana and your employment is terminated or separated, whether voluntarily or involuntarily, for any reason, all unused personal holidays that accrued before Page 6 18

January 1, 2016, or after December 17, 2016 will be forfeited. If you have any unused personal holidays that accrued after January 1, 2016 and before December 18. 2016, those personal holidays will be paid to you upon termination. Any payment of accrued and unused personal holidays required by law will be paid in a lump sum. Page 7 18

National Holiday Plan Time off you can plan for and count on. Yearly holiday calendar. Once you're hired, you are eligible for paid time off for Target-observed national holidays as follow: New Year s Day (January 1) Memorial Day (4 th Monday in May) Independence Day (July 4) Labor Day (1 st Monday in September) Thanksgiving Day (4 th Thursday in November) Christmas Day (December 25) Scheduled to work on a holiday? Exempt team members who work on a Target-observed holiday will receive another scheduled day off within 30 days. Exempt Team Members that don t have a standard Monday through Friday schedule (e.g. your standard schedule is Tuesday through Friday) and the holiday falls on a Monday, you would still be eligible to receive an alternative day off. For headquarters team members: When holidays occur on the weekend. Holiday hours run from 12:00 a.m. until 11:59 p.m. on the date of the Target-observed holiday. If a Target-observed holiday occurs on a weekend, the holiday will be celebrated in the following manner: If the holiday occurs on a Saturday, the office will be closed the Friday before the holiday. If the holiday occurs on a Sunday, the office will be closed the Monday following the holiday. Special considerations. Additional holidays may be available, depending upon your work location and circumstances. Your Human Resources Business Partner can provide further information. Page 8 18

How to handle holidays in a job share situation. If the holiday lands on a scheduled day to work in a job share situation, you would receive that day off. When a holiday lands on a scheduled day off in a job share situation, you would not be entitled to a different day off. o For an example, if the holiday falls on a Monday and your weekly schedule is to work Wednesday, Thursday and Friday you would work your regular weekly schedule. If the holiday falls on a Thursday, you would work Wednesday and Friday. o Regardless of if it is your holiday off or holiday to work, each person would receive their regular pay for the week based on your standard hours. Page 9 18

Well-being Time Plan For good health, financial stability and community engagement. From doctors appointments to volunteering. Target knows that team members do most of their well-being activities, including health, financial or community activities, outside of work. While that s appropriate, sometimes work schedules conflict with well-being efforts. Well-being Time provides flexibility for team members to engage in some well-being activities without losing out on pay. Well-being Time is not intended as additional vacation or personal holiday time. Unlike vacation and personal holiday time, well-being time only encompasses: Health well-being activities, such as preventive health care visits. Financial well-being, such as meeting with a licensed financial advisor. Community well-being, such as volunteer activities, including Target-led events or activities based on a team member s own passion. Who's eligible? Exempt team members are eligible for Well-being Time the first day of the pay period following their date of hire. If the date of hire is the first day of a pay period, benefits are effective that date. How much Well-being Time is provided? Once eligible, team members can use up to 4 hours of Well-being Time per calendar year. Ideally, this is taken all at once, although there may be situations where only part of the time is needed. Requesting and submitting Well-being Time off. Exempt team members should coordinate Well-being Time off with their leader. Team members are expected to submit time in increments of 4 hours. If an exempt team member uses less than 4 hours at one time, the team member can submit time used or wait for another event that uses the entire 4-hour period (e.g. non-target volunteer event). Team members use the same system to submit Well-being Time as they do for vacation and personal holiday time. Additional Well-being Time information: After initial eligibility, eligible team members will receive 4 hours of Well-being Time each January. The way your currently manage time away for brief doctor checkups or personal appointments will not change. Continue to work with your manager to accommodate these appointments. Well-being Time allows you to participate in well-being activities that require more time, such as volunteering for an afternoon or driving to an out-of-town appointment. Page 10 18

Well-being Time does not carry over from one year to the next; eligible team members will never have more than 4 hours of Well-being Time. Use is restricted to well-being activities. By submitting Well-being Time, the team member is confirming the time taken was for limited well-being activities listed above. Team members who work overnight shifts can coordinate with their supervisor to find appropriate uses for this time. For example: a team member may have an early morning well-being physical and may choose to take off the last 4 hours of the shift in order to be rested for the physical. Use of Well-being Time is a substitute for, not in addition to, time actually worked. Use of Well-being Time will not increase a team member s pay. Team members generally are not required to provide proof of participation in a well-being activity to receive Well-being pay. However, Target reserves the right to request appropriate documentation to the extent allowed by applicable law.. Team members who are on a leave of absence are not eligible for Well-being Time. Unused well-being time will not be paid out at termination. Page 11 18

Bereavement Plan Support to ease a difficult time. Our thoughts are with you. Losing a loved one is never easy. Target knows all team members may face this difficult situation. To offer support, our bereavement guidelines are designed to provide team members with time off to allow them to attend events and be available for matters related to the loss. Bereavement events can include: Funeral attendance Celebration of life attendance Reading of a will/final documents Time needed to make final arrangements for covered family members Who's eligible? Exempt and executive-in-training (EIT) team members (with an average of 20 hours or more) are eligible for bereavement time off from the first day of the pay period following their date of hire. If the date of hire is the first day of a pay period, benefits are effective on that date. How much paid time off is available? Bereavement time off may be paid or unpaid. Pay is available for eligible team members who attend events for covered family members during normally scheduled work time. In the event of a death in the immediate family, up to 3 scheduled days is paid time. Up to 4 hours of paid time is granted for the funeral of a close friend or distant relative. Note: Team members are limited to 4 paid events in a rolling 24-month period for a distant family member or a close friend. Additional time off needed for such events will be unpaid. Unpaid bereavement time and extended time off. Team members who are not eligible for pay, or who need extended time off, are eligible for unpaid time off. If time needed exceeds 3 scheduled days for DC Team members or 7 calendar days for all other team members, this would be requested as a Personal Leave of Absence. The length of unpaid Personal Leave for purposes of bereavement/funeral time is determined and approved by the team member's supervisor and HR representative. (See LOA Guidelines for additional details on Target s Personal Leave of Absence). Team members in Oregon may be eligible for the Oregon Family Leave Act for bereavement purposes. Team members should contact the Target Leave & Disability team. Page 12 18

We know families are unique. Each of us defines our relationship to family differently. The bereavement guidelines are not intended to cover all relationships or define your close relationships. This guideline is intended to provide a level of consistency and a framework to accommodate most bereavement situations with the understanding it will not capture all. Team members are welcome to request a personal leave for a bereavement event not addressed or paid under this guideline. Defining immediate family members. Target s bereavement guidelines recognize the following relationships as covered immediate family members for the purposes of pay under this guideline: Spouse/domestic partner/common-in-law in states that recognize common law marriages Parent: biological, foster, adopted, step, legal guardian, mother/father-in-law Child: biological, adopted, foster, step, son/daughter-in law, legal ward, domestic partner s biological/adopted child. Stillborn child: mother or biological father of stillborn child at 20 weeks of gestation or greater Brother/Sister: step, half, brother/sister-in-law Grandparent/Grandchild Aunt/Uncle Niece/Nephew Defining distant family members. Other family relationships not specifically listed above are considered distant relatives. Some examples of covered distant family include: Grandparent-in-law Aunt/Uncle-in-law Cousin Great-grandparent Step-grandparent Making a request for bereavement time off. Team members should notify their leader if they need to take time off under the bereavement guidelines. Exempt team members are not required to submit information in the system. Page 13 18

Additional bereavement guidelines information. Proof is not required to receive bereavement pay or unpaid time. However, Target reserves the right to request appropriate documentation. Team members who are on leave of absence are not eligible for bereavement pay. Bereavement pay does not apply for miscarriages (gestation less than 20 weeks). In states that recognize common law marriage, the common law spouse is considered immediate family for bereavement pay purposes. In states that do not recognize common law marriage, the common law spouse is considered a close friend or distant relative for bereavement pay purposes. Use of in-law terminology within this policy applies to domestic partnership relationships in the same way it applies to marital relationships. Changes that may require attention. Team members, who have suffered the loss of a dependent, may need to: Change their number of tax exemptions Change their marital status Update their beneficiaries for 401(k) and life insurance Update their medical, dental and/or dependent life insurance coverage Making tax or marital status changes. Store and HQ team members should call the HR Operations Center (HROC) at 1-800-394-1885. DC team members should work with the HR team at their location. Making benefits changes. For beneficiary, medical, dental or dependent life insurance changes: Store, HQ and DC team members should call the Target Benefits Center at 1-800-828-5850. Note: Team members who need to update their 401(k) beneficiaries may do so at: www.targetpayandbenefits.com Page 14 18

Permissive Sick Plan On your side when you're under the weather. Taking time to restore well-being. There are times when you need to stay home due to temporary illness or to care for a family member. If you do not feel well, Target encourages you take time off to restore your well-being. If you're caring for someone else, covered family members may be defined by law depending upon the state where you work, but can include: Definition of a covered family member. A family member includes a child, parent, spouse, domestic partner, grandparent, grandchild, or sibling. For purposes of this policy, a child means a biological or adopted child, a foster child, a step-child, a legal ward, or a child to whom the employee stands in loco parentis. Similarly, a parent under this policy means a biological or adoptive parent, a foster parent, a step-parent, the employee s legal guardian, a legal guardian of an employee s spouse or domestic partner, or a person who stood in loco parentis when the employee was a minor child. Who's eligible? All exempt team members are eligible at date of hire. How much time is available? Target provides exempt team members with up to 5 workdays of sick pay per qualified absence. Team members should communicate with their supervisor for times they will be out. If the duration is longer than 5 days, the team member should contact the Leave and Disability team to set up a leave of absence. How it works with a family medical leave absence. If you have a qualified intermittent family medical leave absence, permissive sick would be used to pay for that time. To report this FML time, follow the normal report call-in process with the Target Leave and Disability team. Additional permissive sick information. Team members are entitled to use up to five workdays of permissive sick to care for their spouse/domestic partner after delivery/birth of a child. After five workdays, the team member would need to return to work or call Target s Leave and Disability Team to start their two weeks of parental leave. Team members do not submit hours in the timekeeping system for these absences. Target reserves the right to request appropriate documentation to justify sick pay as permitted by law. No Retaliation or Discrimination. Target strictly prohibits any form of retaliation or discrimination against an employee for attempting to use or using PTO time for paid sick Page 15 18

leave to the extent that the employee has a statutory entitlement to take a minimum amount of paid sick leave. Employees who believe they have been discriminated or retaliated against in violation of this policy should report their concerns to your Human Resources Business Partner. Page 16 18

Voting Plan Encouraging you to vote your conscience. Taking time to make your voice heard. Target strongly encourages you to visit the polls to vote before or after work. Generally, polls are open before and after team members workdays. If you are unable to visit the polls before or after your scheduled work shift, Target provides paid time off for the actual time needed to vote for all team members who are eligible to vote. Serving as an election judge. Team members can take time away from work to serve as an election judge for any official city, state or federal election. If you intend to serve as an election judge, you must check with your Human Resources business partner for any applicable notice or other requirements. Who's eligible? Exempt and executive-in-training (EIT) team members are eligible for pay the first day of the pay period following their date of hire. Questions? Contact your Human Resources Business Partner. Page 17 18

Jury Duty/Witness Duty Plan Time off when you're called for civic duty. Your job is safe while you serve. If you ve been selected for jury duty or must serve as a witness in a trial, Target offers eligible team members time away from work to serve. If you are called to serve on a jury or as a witness, please provide your HR representative with the summons issued by the governmental unit involved. We do not provide written documentation to excuse team members from jury duty. Following jury duty, Target will reinstate you to your former position regardless of length of time spent on jury duty. Reporting back to work. When jury is not in session, or if you ve been excused from jury duty, you must report to work during your scheduled hours if you can work at least 4 hours of your scheduled work period. Who's eligible for pay? If you are an exempt team member or an executive-in-training (with an average of 20 hours or more), you are eligible for paid jury or witness duty on the first day of the pay period following your date of hire. Your pay will continue while you serve jury duty. Based on the state you are located in, you may be compensated by the state. If you receive pay from the state, the Target Leave & Disability team will request the pay stub showing the pay you received. In step with state statutes. Target must meet the minimum guidelines as outlined in state statutes. If you live and work in different states, the law for the state where you work applies for calculating jury or witness pay. Have a question? Contact your Human Resources Business Partner. Page 18 18