TRUEBLUE Inc. and Subsidiaries COMPANY POLICY FAMILY AND MEDICAL LEAVE POLICY

TRUEBLUE Inc. and Subsidiaries COMPANY POLICY FAMILY AND MEDICAL LEAVE POLICY Department Head: Director, Benefits Effective Date: 10/01/09 Approved By: Benefits Department Revised Date: 09/27/2013 I. POLICY STATEMENT: There may be occasions when an employee requests to be temporarily relieved of his or her work responsibilities because of the birth, adoption, or placement in foster care of a child, the employee s serious health condition that makes the employee unable to perform the functions of the employee s job, the serious health condition of certain family members, or due to certain military related issues. In such instances, TrueBlue will grant leaves of absence in accordance with the requirements of the Family and Medical Leave Act of 1993, as amended ( FMLA ) and any applicable state and local laws. This Policy contains a summary of FMLA rights, and provides employees with a general description of their FMLA rights and obligations. In the event of any conflict between this Policy and the applicable law, employees will be afforded all rights required by law. II. GENERAL PROVISIONS Under FMLA, eligible employees will be granted a family or medical leave of up to 12 work weeks in any 12-month rolling period, with certain assurances of job security and health insurance benefits during the leave. A. Type of Leave Covered To qualify as FMLA leave under this Policy, the employee must be taking leave for one of the reasons listed below: 1. The birth of a child and in order to care for that child. 2. The placement of a child for adoption or foster care and to care for the newly placed child. 3. To care for a spouse, child or parent with a serious health condition (described below). 4. The serious health condition of the employee (described below). An employee may take leave because of a serious health condition that makes the employee unable to perform the functions of the employee's position. For Non-Military Caregiver FMLA leave, a serious health condition is defined as an illness, injury, impairment or physical or mental condition which involves: a) Inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility, including any period of incapacity or subsequent treatment in connection with or consequent to such inpatient care; or 1

b) A period of incapacity of more than three consecutive days that also involves either: (i) treatment two or more times by a health care provider; or (ii) treatment on one occasion by a health care provider that results in a regimen of continuing treatment; or c) Any period of incapacity due to pregnancy, or for prenatal care; or d) A chronic condition that requires periodic visits to a health care provider for treatment, continues over an extended period of time, and may cause episodic incapacity; or e) A period of incapacity which is permanent or long-term and which requires the continuing supervision of a health care provider; or f) A period of absence to receive multiple treatments by a health care provider either: (i) for restorative surgery or other injury; or (ii) for a condition that would likely result in a period of incapacity of more than 3 calendar days in the absence of medical treatment. 5. Qualifying Exigency Leave. An eligible employee is entitled to up to 12 work weeks of leave because of a qualifying exigency occurring because the employee s spouse, child, or parent is a qualified member of the armed forces and is on covered active duty or has been called to covered active duty. A broad list of activities may be considered qualifying exigencies to address common issues which may arise when a covered military member is deployed. The qualifying exigency generally must be one of the following: 1) short-notice deployment, 2) military events and related activities, 3) child care and school activities, 4) financial and legal arrangements, 5) counseling, 6) rest and recuperation, 7) post-deployment activities and 8) additional activities that arise out of active duty or call to active duty, provided that the employer and employee agree on the need for, timing, and duration of the leave. The leave may commence as soon as the individual receives the call-up notice. For the purposes of Qualifying Exigency Leave, the employee s son or daughter need not be a minor in order to qualify for leave. Qualifying Exigency Leave is counted toward the employee s FMLA leave entitlement. 6. Military Caregiver Leave. An eligible employee who is the spouse, son, daughter, parent, or next of kin of a covered service member (including Regular Armed Forces) who is recovering from certain defined serious illness or injury sustained in the line of duty on active duty is entitled to up to 26 work weeks of leave in a single 12-month period to care for the service member. Such leave generally applies to a covered service member who is undergoing medical treatment, recuperation, or therapy, is on outpatient status, or is on the temporary disabilities retired list due to a injury or illness 2

B. Eligibility incurred in the line of duty on active duty that may render the member unfit to perform the duties of his or her office, grade, rank or rating. Military Caregiver Leave is available during a single 12-month period during which an eligible employee is entitled to a combined total of 26 work weeks of all types of FMLA leave, provided that no more than 12 work weeks of leave can be taken for qualifying FMLA leave other than Military Caregiver Leave. For the purpose of Military Caregiver Leave, this single 12-month period begins on the first day the employee takes FMLA leave to care for the ill or injured service member and ends 12 months after that date. 1. The employee must have worked for TrueBlue for at least 12 months or 52 weeks. The 12 months or 52 weeks need not have been consecutive. Separate periods of employment will be counted, provided that the break in service does not exceed seven years. 2. The employee must have worked at least 1,250 hours during the 12-month period immediately before the date when the leave is requested to commence. 3. TrueBlue uses a rolling 12-month method to measure eligibility for requested leave. The 12-month period is measured as a rolling 12-month period measured backward from the time the employee uses any FMLA leave. 4. The employee must work in a worksite where 50 or more employees are employed by TrueBlue within 75 miles of that office or worksite. C. Amount of Leave, Intermittent Leave or a Reduced Work Schedule Generally, leave under FMLA will be taken in a lump sum (i.e., consecutive days off from work, up to 12 work weeks). However, when medically necessary, FMLA leave may be taken intermittently, or on a reduced schedule, in certain situations involving a serious health condition of the employee or his or her spouse, parent or child, or a covered service member. An employee taking intermittent or reduced schedule leave which is foreseeable based on planned medical treatment for the employee or employee's family member, including recovery from a serious health condition, may be temporarily transferred to an available alternative position with equivalent pay and benefits if the alternative position would better accommodate the intermittent or reduced schedule. If both parents work for TrueBlue and each are eligible for FMLA leave and wishes to take leave for the birth of a child (other than for incapacity due to pregnancy), placement of a child with the employee for adoption or foster care, or to care for the employee s parent with a serious health condition, generally, the two employees may only take a combined total of 12 work weeks of FMLA leave for those purposes. If spouses both work for TrueBlue and each wishes to take leave to care for an injured or ill covered service member, the husband and wife may only take a combined total of 26 work weeks of leave for such purpose (subject to other restrictions). 3

D. Procedure for Requesting FMLA Leave Employees requesting FMLA must provide verbal notice to their manager or District Manager of the need for leave at least 30 days in advance of the requested effective date of such leave, except in emergency circumstances, and where such notice is not practicable. Employees must also request leave by contacting Liberty Mutual at 1-888-408-7300. (Liberty Mutual administers FMLA leave for TrueBlue.) Employees should endeavor to schedule the leave so as not to unduly disrupt their work. E. Employee Status and Benefits During Leave While an employee is on FMLA leave, TrueBlue will maintain its contributions to the employee s health insurance under the same terms as the plan in effect at the time the request is made, for a period up to 12 work weeks, if the employee is enrolled in the TrueBlue health care plan at the time the request is made. TrueBlue's share of medical benefits and voluntary group life insurance premiums are paid by TrueBlue during an employee's qualified FMLA leave; the employee's share of such premiums will be advanced by TrueBlue during the leave. During this time premiums will go into arrears and will be paid by the employee to TrueBlue via payroll deduction (upon return from leave) at the rate of 1 ½ the regular premium. If the employee chooses not to return to work for reasons other than a continued serious health condition of the employee or the employee's family member or a circumstance beyond the employee's control, the employee may be required to reimburse TrueBlue the amount it paid for the employee's health insurance premium and voluntary group life insurance during the leave period. Vacation, sick leave and personal day do not accrue during any period of unpaid FMLA leave. Employees on FMLA are not eligible for holiday pay. F. Use of Paid and Unpaid Leave Upon leave approval, employee will be paid out accrued sick, vacation and personal leave balances up to a maximum of the duration of leave period their own serious health condition or when leave is taken for the serious health condition of his or her spouse, parent or child, or a covered service member. Payment will be issued via a manual check mailed to the employee s home address. Use of such paid leave will be concurrent with FMLA Leave. During any FMLA leave, employees will not accrue sick leave, vacation or personal days. G. Medical Certification for Serious Health Conditions TrueBlue requires certification of the employee s serious health condition and certification of the family member s serious health condition, as applicable. The 4

employee must respond to the request(s) within 15 days of the request unless not practicable due to extenuating circumstances, in which case the response must be as soon as practicable. TrueBlue may also require subsequent recertification on a reasonable basis (see below). Failure to comply with certification requirements (such as by providing an incomplete certification or one with insufficient information) will result in delay or denial of FMLA leave. Medical certification will be provided using the appropriate form: Certification of Health Care Provider for Employee s Serious Health Condition form, or the Certification of Health Care Provider for Family Member s Serious Health Condition form, as applicable. TrueBlue Benefits Department may directly contact the employee s health care provider and/or the employee s family member s health care provider, as applicable, for verification or clarification purposes as allowed by law. The employee s direct supervisor is not authorized to make this contact. Before TrueBlue makes this direct contact with the health care provider, the employee will be a given an opportunity to resolve any deficiencies in the medical certification. In compliance with HIPAA Medical Privacy Rules, as part of the FMLA process, TrueBlue will obtain the employee s permission for clarification of individually identifiable health information. TrueBlue has the right to ask for a second opinion if it has reason to doubt the certification. TrueBlue will pay for the employee and/or the employee s family member, as applicable, to get a certification from a second doctor, which TrueBlue will select. TrueBlue may deny FMLA leave to an employee who refuses to release relevant medical records to the health care provider designated to provide a second opinion, or to an employee whose family member refuses to release relevant medical records to the health care provider designated to provide a second opinion. If necessary to resolve a conflict between the original certification and the second opinion, TrueBlue will require the opinion of a third doctor. TrueBlue and the employee will mutually select the third doctor, and TrueBlue will pay for the opinion. This third opinion will be considered final. The employee will be provisionally entitled to leave and benefits under the FMLA pending the second and/or third opinion. H. Certification for Qualifying Exigency Leave TrueBlue will require employees requesting Qualifying Exigency Leave to complete a Certification of Qualifying Exigency form, certifying their need for leave. The employee must respond to such a request within 15 days of the request unless not practicable due to extenuating circumstances, in which case the response must be as soon as practicable. Failure to provide certification may result in a delay or denial of leave. I. Certification for Military Caregiver Leave TrueBlue will require employees requesting Military Caregiver Leave to complete a Certification of Serious Injury of Illness of a Service member form, certifying their need for leave. The employee must respond to such a request within 15 days of the request unless not practicable due to extenuating circumstances, in which case the response must be as soon as practicable. Failure to provide certification may result in a delay or denial of leave. 5

J. Recertification Generally, TrueBlue will not request recertification of the serious health condition of the employee or family member more frequently than every 30 days. However, if TrueBlue receives certain information, such as information casting doubt on the reason given for the absence, the employee seeks an extension of his or her leave, or in other limited circumstances, TrueBlue may request recertification more frequently than every 30 days. When seeking recertification for the employee s serious health condition, the company may provide the employee s health care provider with the employee s attendance records and ask whether need for leave is consistent with the employee s serious health condition. The employee must respond to such a request within 15 days of the request. K. Keeping in Touch with TrueBlue While on Leave Employees on leave are required to contact the Benefits Department every 14 days while out on leave. Employees must also keep TrueBlue aware of his or her intent to return to work. L. Employee Status After Leave and Return to Work Issues An employee who takes FMLA leave due to his or her own serious health condition will be required to provide a fitness for duty (FFD) clearance from the health care provider. In the event an employee is released to return to work with restrictions/limitations, the employee must also submit an Accommodation Request or Authorization & Release and Essential Functions This requirement and applicable documents will be included in Liberty Mutual s response to the FMLA request. Except for employees in key positions as defined by the law, upon the employee being ready to return from qualified FMLA leave, provided that his or her position has not otherwise been affected, generally, TrueBlue will restore the employee to the same or an equivalent position with equivalent pay and benefits. III. STATE LAW AND OTHER POLICIES Certain state laws may provide greater leave rights than those available under the Family and Medical Leave Act of 1993, as amended. It is TrueBlue s policy to comply with all applicable laws. If an employee is not eligible for FMLA Leave, the employee should still speak to a Benefits representative about other types of leave the employee may be eligible for under TrueBlue s policies. 6