WELCOMEI am very pleased to welcome you to the Pinnacle Automotive team! You were selectedthrough a rigorous process that many times includes a phone screen by one of ourfantastic recruiters, face-to-face on-site interviews with your supervisor and team,clearing drug and background tests and nailing our online personalityassessment. Congratulations – you have obviously demonstrated the attributes andcompetencies that match the qualities we look for in a team member who wants tobuild a career with us.As a critical member of our team regardless of your role, you will help Pinnacle bringfour critical business functions to our client’s dealerships that include: 1. Recruiting, hiring, training and managing the very best people that measurably elevate the customer experience and deliver more loyalty related business. 2. Overseeing the entire dealership campus logistics to deliver greater measurable productivity, including pick-up and delivery and detailing. 3. Providing technology solutions that measurably deliver more efficiency and greater loyalty related sales. 4. Taking the dealership’s business outcomes and delivering better results.We guarantee it.I’m encouraging you to ask your manager today how you can grow your career throughour development programs that include Emerging Leaders and Ascend. Thesespecialized programs are designed so you quickly gain expertise that will help youprogress from entry-level hourly team member to shift supervisor to salaried OperationsManager and beyond.But first, please take the time to fully review and acknowledge this Team MemberManual so you’ll know what’s expected for you to make a positive contribution.Join the company fun on PinnacleHire.com and on social media at Facebook, Instagramand Twitter.Again, welcome to the #PINNACLEPEEPS family. Derek Cunard Team Member Handbook 3 Chief People Officer© 2018 Pinnacle Automotive.
I. EMPLOYMENT WITH PINNACLE AUTOMOTIVE .......................................................... 7 A. ABOUT THIS HANDBOOK B. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT C. NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY D. PERSONS WITH DISABILITIES E. PREGNANCY ACCOMMODATION POLICY F. BREAKS FOR EXPRESSING MILK G. COMPLIANCE: THE GENETIC INFORMATION NONDISCRIMINATION ACT OF 2008 H. BUSINESS PROTECTION AGREEMENT I. INTRODUCTORY PERIOD FOR NEW TEAM MEMBERS J. CONFLICT OF INTEREST AND OUTSIDE EMPLOYMENT K. EMPLOYMENT OF RELATIVESII. HOW WE KEEP IN TOUCH WITH YOU ...................................................................... 14 A. NEW TEAM MEMBER ORIENTATION B. YOU AND YOUR SUPERVISOR C. YOUR TEAM MEMBER COUNSELOR D. YOUR PROBLEM-SOLVING PROCEDURE E. YOUR BENEFITS COUNSELING SESSIONS F. OPEN DOOR POLICYIII. RULES OF CONDUCT ............................................................................................... 16 A. GIVE US QUALITY WORK B. BE ALERT TO SECURITY C. KEEP US UP-TO-DATE D. REMEMBER COURTESY E. BE AWARE OF YOUR PERSONAL APPEARANCE F. KEEP PERSONAL VISITORS AWAY G. POLICIES ON E-MAIL, COMPUTERS AND OTHER COMMUNICATIONS H. SOCIAL MEDIA POLICY I. FOLLOW OUR GUIDELINES FOR ENTERING AND LEAVING J. AVOID PROHIBITED SOLICITATION OF CUSTOMERS AND TEAM MEMBERS K. AVOID MAJOR OFFENSES L. MAINTAIN A DRUG AND ALCOHOL-FREE WORKPLACE M. FOLLOW OUR ALTERNATIVE DISPUTE RESOLUTION PROCEDURES N. DOCUMENT DESTRUCTION PROHIBITED O. RETALIATION AGAINST WHISTLEBLOWERS PROHIBITED P. TEAM MEMBER REFERENCES Q. UNIFORMS R. STANDARDS OF ATTENDANCE S. NO FRATERNIZATION T. SOLICITATION AND DISTRIBUTION OF LITERATURE U. WEAPONS ON COMPANY/CLIENT PREMISES V. PROHIBITION OF RECORDING EQUIPMENT USE W. WIRELESS PHONE USE© 2018 Pinnacle Automotive. Team Member Handbook 5
IV. ABOUT YOUR JOB .................................................................................................. 28 A. TEAM MEMBER CATEGORIES B. WORKING HOURS C. PAY PROCEDURES D. REPORTING OF TIME E. LUNCH BREAKS F. OVERTIME G. PAYROLL PROCESSINGV. TIME OFF / LEAVES OF ABSENCE ..............................................................................32 A. HOLIDAYS B. PAID TIME OFF C. PAID TIME OFF-MONTGOMERY COUNTY D. MILITARY LEAVE E. TIME OFF TO VOTE F. JURY DUTY G. VICTIMS OF CRIME LEAVE - VIRGINIA H. THE FAMILY MEDICAL LEAVE ACT (FMLA) I. PERSONAL LEAVE OF ABSENCE J. FLEXIBLE LEAVE POLICY - MARYLAND K. CONCURRENT LEAVE POLICY L. CIVIL AIR PATROL LEAVE M. DEPLOYMENT LEAVE N. BEREAVEMENT LEAVEVI. BENEFITS ............................................................................................................... 44 A. GENERAL B. 401(K) PLAN C. HEALTH INSURANCE D. WORKERS COMPENSATION E. UNEMPLOYMENT COMPENSATION F. SOCIAL SECURITY G. CONTINUATION AND CONVERSION OF HEALTH INSURANCE BENEFITS (COBRA) H. LOANS TO TEAM MEMBERSVII. WORKPLACE SAFETY .............................................................................................. 47 A. SMOKE-FREE WORKPLACE B. REPORTING OF ACCIDENTS C. GUIDELINES FOR OPERATING VEHICLES D. EMERGENCY WEATHER© 2018 Pinnacle Automotive. Team Member Handbook 6
I. EMPLOYMENT WITH PINNACLE AUTOMOTIVEA. ABOUT THIS HANDBOOK This Handbook for Team Members (“Handbook”) is a compilation of personnel policies, practices and procedures currently in effect at Pinnacle Automotive (“Pinnacle” or “the Company”). Our Company has always believed in promoting an atmosphere of open communication and cooperation among all our personnel. This Handbook reflects that thinking. It supersedes in all respects any prior handbook, policy manual, benefits or practices of the Company and has been prepared to provide you with general information about some of your benefits and the highlights of rules and policies under which we operate. Obviously, we could not begin to explain every Company policy or rule or benefit in this Handbook, and its provisions can be considered as no more than general summaries of the benefits, work rules and policies they address. While we hope our personnel actions will continue to be positive, from time to time our Company may unilaterally, in its discretion, amend, supplement, modify, or eliminate one or more of the benefits, work rules or policies described in this Handbook, or any other employment benefits, work rules or policies, without prior notice. This Handbook does not constitute a guarantee that your employment will continue for any specified period or end only under certain conditions. Nothing in the Handbook, or any of the Company’s policies, practices or procedures constitutes an express or implied contract of employment or warranty of any benefits. Employment at our Company is a voluntary employment-at-will relationship for no definite period. While we hope to have a long and mutually beneficial working relationship together, regardless of anything which may appear in this Handbook or any other Company publication, policy, statement or practice, you have the right to terminate your employment relationship for any reason with or without cause or notice at any time, and the Company reserves the right to do the same. No manager or other representative of the Company, other than the President, has the authority to enter into any agreement guaranteeing employment for any specific period. No such agreement shall be enforceable unless it is in writing and signed by the President and the Team Member.B. EQUAL EMPLOYMENT OPPORTUNITY POLICY STATEMENT Equal Employment Opportunity will always be a fundamental principle at the Company where employment is based upon individual capabilities and qualifications without discrimination based on race, color, religion, gender, age, national origin, disability, marital status, genetic information, sexual orientation, gender identity or expression, veteran status, citizenship, FMLA status, pregnancy-disability or any other protected characteristic as established by law. This policy of Equal Employment Opportunity applies to all policies and procedures relating to recruitment and hiring, compensation, benefits, terminations and all other terms and conditions of employment. All job applicants and Team Members will be treated in all respects on the basis© 2018 Pinnacle Automotive. Team Member Handbook 7
of merit and qualifications. The People Services Department has overall responsibility for this policy and maintains reporting and monitoring procedures. Team Member questions and concerns should be referred to the Chief People Officer. Appropriate disciplinary action will be taken against any Team Member violating this policy.C. NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY It is the policy and practice of the Company to maintain and foster a work environment in which all Team Members are treated with decency and respect. Accordingly, the Company has adopted a zero-tolerance policy toward discrimination and all forms of unlawful harassment, including but not limited to sexual harassment. This zero-tolerance policy means that no form of unlawful discriminatory or harassing conduct towards any Team Member, client, contractor, or other person in our workplace will be tolerated. The Company is committed to enforcing its policy at all levels within the Company, and any Team Member who engages in prohibited discrimination or harassment will be subject to discipline, up to and including immediate discharge from employment for a first offense. Every Team Member should be aware that all managers and supervisors are absolutely prohibited from making any decision regarding job assignment or reassignment, performance evaluation, compensation, promotion or demotion, termination or commencement of employment, or any other decision involving any tangible employment action, based in whole or in any part on any person’s exposure to, submission to, acquiescence in, or complaint about, sexual harassment or any other form of unlawful harassment or discrimination. Conduct Covered by this Policy: This policy applies to and prohibits all forms of illegal harassment and discrimination, not only sexual harassment. Accordingly, the Company absolutely prohibits harassment or discrimination based on sex, age, race, color, religion, national origin, disability, perceived disability, marital status, personal appearance, sexual orientation, gender identify, genetic information, veteran status or any other legally protected characteristic. Because confusion often arises concerning the meaning of sexual harassment in particular, it deserves special mention. Sexual harassment may take many forms, including the following: • Offensive and unwelcome sexual invitations, whether or not the Team Member submits to the invitation, and particularly when a spoken or implied quid pro quo for sexual favors is a benefit of employment or continued employment; • Offensive and unwelcome conduct of a sexual nature, including sexually-graphic spoken comments; offensive comments transmitted by e-mail or another messaging system; offensive or suggestive images or graphics whether physically present in the workplace or accessed over the internet; or the possession of or use of sexually suggestive objects; • Offensive and unwelcome physical contact of a sexual nature, including the touching of another’s body; the touching or display of one’s own body, or any similar contact.© 2018 Pinnacle Automotive. Team Member Handbook 8
Computer Messaging and Information Systems:Team Members are particularly cautioned that the use of texting, e-mail, voice mail, or otherelectronic messaging systems, or the Internet, may give rise to liability for harassment. TeamMembers may not generate, should not receive, and must not forward, any message or graphicthat might be taken as offensive based on sex, gender, or other protected characteristic. Thisincludes, for example, the generation or forwarding of offensive “humor” which contains sexually-offensive terms, or terms which are offensive to any race, religion, national origin group, or otherprotected group.Team Members receiving offensive messages over the Company’s computer equipment, orreceiving other unlawfully offensive messages or graphics over the Company’s computerequipment, should report those messages to their supervisor or other appropriate manager.Team Members are reminded that the Company’s computers and the data generated on, storedin, or transmitted to or from the Company’s computers remain the property of the Company forall purposes. No Team Member is authorized to use any Company computer, computer system,network, or software for the preparation, transmission, or receipt of sexually offensive messagesor graphics, or for other messages or graphics which might be taken as offensive based on anyother protected characteristic.Team Members are reminded that the Company retains the right to monitor its computers,computer systems, and networks to ensure compliance with this requirement.Mandatory Procedures in Cases of Harassment:Any Company Team Member who believes that she or he has been subjected to unlawfulharassment of any kind has the responsibility to report the harassment immediately to her or hissupervisor. If the Team Member is uncomfortable reporting the harassment to her or hisimmediate supervisor (whether because the supervisor has committed the harassment, or for anyother reason whatsoever), the Team Member must report the harassment to People Services at(813) 287-2266 or directly to the Chief People Officer of the Company.The Company is committed to taking all reasonable steps to prevent harassment, and will makeevery reasonable effort promptly and completely to address and correct any harassment that mayoccur. However, the Company cannot take prompt and effective remedial action unless eachTeam Member assumes the responsibility of reporting any incident of harassment immediatelyto an appropriate supervisory Team Member.Every report of harassment, discrimination or retaliation will be investigated promptly andimpartially, with every effort to maintain Team Member confidentiality. The complainant and theaccused will be informed of the results of the investigation. If the Company finds that its policyhas been violated, it will take appropriate corrective and remedial action, up to and includingdischarge.© 2018 Pinnacle Automotive. Team Member Handbook 9
Reporting Without Fear of Retaliation: No Company Team Member will be retaliated against for reporting harassment. This no- retaliation policy applies whether a good faith complaint of harassment is well founded or ultimately determined to be unfounded. No Company manager or supervisor is authorized, or permitted, to retaliate or to take any adverse employment action whatsoever against anyone for reporting unlawful harassment, or for opposing any other discriminatory practice in the workplace. Any Team Member who feels he or she has been retaliated against in violation of this no-retaliation policy is responsible for reporting the retaliation to management, in the same manner as any other form of harassment or discrimination should be reported. Questions About This Policy: If you have any questions at all about this policy, about whether you should report an incident under this policy, or about the Company’s commitment to a workplace free of discrimination and harassment, please speak to your supervisor. If you believe it is inappropriate for any reason to discuss the matter with your supervisor, please bring your questions to Human Resources.D. PERSONS WITH DISABILITIES The Company is firmly committed to complying with all applicable federal and state legislation designed to ensure equal employment opportunities to persons with disabilities. The Company prohibits discrimination on the basis of disability in regard to all employment practices or terms, conditions and privileges of employment. Consistent with this policy and applicable law, upon a Team Member’s request, The Company will make reasonable accommodation to the known physical or mental limitations of qualified applicants or Team Members who are able to perform the essential functions of the job, unless the accommodation would cause an undue hardship on The Company’s business. If you feel that you have need for an accommodation, please contact People Services. The Company may seek additional appropriate information in accordance with applicable law.E. PREGNANCY ACCOMMODATION POLICY If a pregnant Team Member working requests an accommodation for a disability caused or contributed to by the pregnancy (including childbirth or related conditions, such as lactation), The Company will explore reasonable accommodations with the pregnant Team Member, and it will endeavor to provide a reasonable accommodation, unless doing so would impose an undue hardship on The Company. If you feel that you have need for an accommodation, please contact People Services.F. BREAKS FOR EXPRESSING MILK The Company will provide reasonable break time for a Team Member to express breast milk for her nursing child for one year after the child’s birth each time such Team Member needs to express milk. Team Members may use regularly scheduled meal or rest breaks for this purpose. Any additional breaks needed for this purpose should be arranged with the Team Member’s© 2018 Pinnacle Automotive. Team Member Handbook 10
supervisor. Team Members must record time spent on such breaks. The Company will also provide a private place where Team Members can go to express milk. This location will be shielded from view and free from intrusion from coworkers or the public. For information on location and the manner in which to request this accommodation, please contact People Services.G. COMPLIANCE WITH THE GENETIC INFORMATION NONDISCRIMINATION ACT OF 2008 The Genetic Information Nondiscrimination Act of 2008 (“GINA”) prohibits employers from requesting or requiring genetic information about a Team Member or Team Member’s family member, except as specifically allowed by this law. Team Members must not provide any genetic information when responding to any request for medical information from the Company, except as stated in this policy. Requests for medical information may arise in connection with requests for reasonable accommodation, sick leave, or Family Medical Leave, or in connection with physical examinations (if required), among others. For example, the Company is permitted to request limited medical history information in connection with a Team Member’s request for Family Medical Leave to care for a family member with a serious health condition. Under GINA, “genetic information” includes a Team Member’s family medical history, the results of a Team Member’s or Team Member’s family member’s genetic tests, the fact that a Team Member or Team Member’s family member sought or received genetic services, and genetic information about a fetus carried by a Team Member or Team Member’s family member or an embryo lawfully held by a Team Member or Team Member’s family member who is receiving assistive reproductive services.H. BUSINESS PROTECTION AGREEMENT All managers are required to sign and return the business protection agreement as a condition of employment. The employment agreement covers important terms and conditions of employment. All Team Members remain “at will” after they sign the employment agreement.I. INTRODUCTORY PERIOD FOR NEW TEAM MEMBERS All Team Members serve an introductory or provisional period at the beginning of their employment. This is a particularly important time for you and our Company, since it allows you the opportunity to evaluate whether our Company fits into your career goals, and it also provides the Company with a period during which it can assess whether your employment appears to satisfy our present needs. In most cases, this probationary period will last for ninety (90) days from your date of hire, but it may be shortened or extended at the discretion of our Company. Your employment might end at your option or ours, before the end of the probationary period, or afterwards. During this period, your Supervisor may discuss your performance with you. A decision will be made, at the Company’s discretion, about granting you regular Team Member status, extending your probationary period, or terminating the employment relationship. Your successful completion of this probationary period does not result in any change in the employment at-will relationship described in this Handbook.© 2018 Pinnacle Automotive. Team Member Handbook 11
J. CONFLICT OF INTEREST AND OUTSIDE EMPLOYMENT The Company expects and requires Team Members to be and remain free of any conflicting interests or relationships and to refrain from acting in ways that appear to be or are in conflict with the Company’s best interest. Any Team Member’s solicitation to perform services to any customer at any time for the Team Member’s benefit or financial gain is strictly prohibited. Team Members who find themselves in situations that may involve a conflict of interest or the appearance of a conflict are expected to discuss this with their supervisor to determine the appropriate course of action. Under no circumstances shall full-time Team Members of the Company engage in outside employment which conflicts with normal working hours of the Company or which present a conflict of interest with the Company’s business. This includes being involved with organizations that are currently doing or seeking to do business with the Company, including actual or potential vendors or customers. If Team Members are required to work beyond normal hours, they must fulfill this obligation. If it conflicts with another employer, the Team Member’s obligation to the Company must be given priority. Any opportunity for outside employment must be approved by your District Manager, Regional Director, or the company Vice President in order to determine the impact on your obligation to the Company. No Team Member may solicit or accept gifts of significant value, lavish entertainment or other benefits from potential and/or current customers, suppliers or competitors. If you have any question as to whether a gift would violate this policy a Team Member must consult with her or his supervisor. A Team Member may entertain potential or actual customers if such entertainment is consistent with accepted business practices, does not violate any law or ethical standard and the public disclosure of facts will not embarrass the Company. Any information regarding the Company which the Company designates as confidential may not be communicated, in any way to anyone, absent the prior written permission of the Company. Failure to comply with this understanding will result in termination from the Company. In the course of employment with the Company Team Members may have access to confidential information about the Company, its processes and/or its customers. For the purposes of this Handbook, Confidential Information means: all information known by you as a consequence of your employment with the Company, whether in oral, written, or electronic form, that relates to our projects, business information, business plans, profit and loss information, balance sheet reports, and pricing; is about our clients (including their financial information and contact information); and/or any other confidential or proprietary information relating to the operation of the Company. Confidential Information does not include information that is generally available to the public. Team Members may not discuss confidential information with unauthorized individuals inside or outside of the Company. If there is any uncertainty as to whether or not particular information is confidential, Team Members should seek guidance or clarification from their supervisor.© 2018 Pinnacle Automotive. Team Member Handbook 12
K. EMPLOYMENT OF RELATIVES Relatives, spouses of Team Members of the Company will be considered employment if they meet established qualification standards for a position. He or she will not be awarded special consideration or favoritism. Immediate family members may be employed at the same site except where employment would result in a supervisor/subordinate relationship or where there may be a conflict of interest. A conflict of interest is defined as a situation where one may supervise, check, review, audit, approve, calculate, or otherwise influence the work, schedules, progress or salary of one’s relative. When an established romantic relationship or marriage of Team Members creates a conflict of interest: • Within 10 days following the marriage or designation of a romantic partnership of two Team Members, one Team Member must transfer to another location or be separated from the Company. • When transfer is required, the preference of the Team Members will be considered. However, the decision as to which Team Member is to be transferred or voluntarily separated will be at the discretion of the Company. • A Team Member who becomes related (an in-law) to another Team Member to the other Team Member’s marriage or romantic partner relationship will not have his or her employment status affected unless a conflict of interest I created. In this situation, the conflict of interest must be resolved within 10 days, including transferring one of the employs to another position/department/location or voluntary separation from the Company. • At such a time a Team Member is offered a promotion to a supervisor or manager or other designated position where a conflict of interest will be created by the promotion, the Company will work on a case-by-case basis with the non-promoted relative, spouse or romantic partner to consider transfer to another site with the anticipation of resolving the issue by transfer, voluntary separation or other reasonable resolution within 10 days of the date of created conflict. It is the responsibility of the location supervisor or manager to ensure compliance with this policy. Management found to be in violation of this policy may be subject to disciplinary action, up to and including termination. The Company recognizes its Team Member rights under Section 7 of the National Labor Relations Act to participate in protected concerted activity. Nothing in this policy is intended to conflict with those rights.© 2018 Pinnacle Automotive. Team Member Handbook 13
II. HOW WE KEEP IN TOUCH WITH YOU We are always looking for new and improved ways to keep communication channels open on a two-way basis between our Team Members and the managers of our Company. We want you to be free to tell us about your personal recommendations for improvements, as well as any problems you may be experiencing on the job. The following Communications Network summarizes many of the ways you can share your ideas and concerns with us.A. NEW TEAM MEMBER ORIENTATION The first part of our orientation program is conducted shortly after you are employed. It is designed to help acquaint you with your new working environment and job responsibilities. Use this opportunity to raise any questions or voice any concerns during that time.B. YOU AND YOUR SUPERVISOR If you have any questions concerning your job or job-related activities, your Supervisor usually should be the first person you talk to. If, however, you do not feel comfortable discussing a particular personal matter with your Supervisor, be assured that the other methods of communication outlined in this Section are also available to you.C. YOUR TEAM MEMBER COUNSELOR The Company has designated our Human Resources Director as a Team Member counselor to assist you, if you so elect, in presenting your concerns to us. Please take advantage of your spokesperson.D. YOUR PROBLEM-SOLVING PROCEDURE During the performance of your duties, questions or problems may occur that affect your work. The following more formal procedure has been established for your use in resolving these matters. Step 1: Within a week of the occurrence of the problem, you may ask for a conference to talk it over with your immediate Supervisor. Step 2: In the event your Supervisor does not resolve your problem to your satisfaction within one week’s time, you may ask (within the following week) for a meeting with your District Manager or Regional Director to talk it over. Step 3: In the event your District Manager or Regional Director does not resolve your problem to your satisfaction within a week’s time, you may ask (within the following week) to talk it over with Human Resources, who will assist you (if you so desire) in obtaining a final resolution.© 2018 Pinnacle Automotive. Team Member Handbook 14
This procedure makes it possible for you to obtain a quick review of your problem through channels up to the Chief People Officer. In an emergency situation, the “step” time periods can be accelerated by mutual agreement between the Company and you. We recognize that some problems may be of such a personal nature or that you may prefer not to discuss the matter within your department or with your Supervisor. In such a case, you should take the problem directly to People Services immediately. This problem-solving procedure is your “direct line” to our management – please use it! If you fail to follow this procedure in a timely manner, however, it is understood that you will not contest the Company’s action further. Remember that we can’t help you solve your problem if you don’t tell us about it.E. YOUR BENEFITS COUNSELING SESSIONS We believe it is important to give you an opportunity to learn more about the benefits you receive from our Company in order to help you to plan for your future financial security. From time to time, therefore, we will be meeting with you either individually or in small groups to discuss our Company benefits, answer your questions, and obtain your comments.F. OPEN DOOR POLICY The Company has always had a policy that the office of all leadership is open to all Team Members. So, if everything else fails, and you do not get a satisfactory answer to a problem or you do not get the answer as quickly as you think you should under other communications network channels listed herein, you are free to walk in the open door of that office and address the problem directly with any leadership member.© 2018 Pinnacle Automotive. Team Member Handbook 15
III. PINNACLE AUTOMOTIVE RULES OF CONDUCT Whenever a group of people work together, there must be standards of conduct and attendance for common guidance and efficiency. It is impossible to define in detail every standard for every circumstance, and our Company tries to keep rules to a necessary minimum. We have listed below only a few specifics regarding what we expect from you. This should not be regarded as an all- inclusive list of our expectations or standards. If you have any questions about these standards of conduct and attendance, or about what to do or not to do in a situation, please contact your Supervisor. When Team Member misconduct occurs, measures must be undertaken to correct the situation and to curtail further occurrences, for the good of us all. The approach we take to discipline may vary depending on the gravity of the offense, the circumstances under which it occurred, your duties, your length of service (seniority) with our Company, and your overall work record, including any prior misconduct. In order of severity, discipline can take one if the following forms: • VERBAL COUNSELING (documented) • WRITTEN WARNING • TERMINATION Keep in mind that our Company has no obligation to use any one or more of these forms of discipline prior to discharging a Team Member. Any or all of these steps can be omitted as the Company deems appropriate, in its discretion. Moreover, by establishing this disciplinary procedure the Company is not relinquishing or limiting its managerial right to discharge for any or no reason at all, at any time, with or without notice. The use of progressive discipline as a pre-condition to termination thus is discretionary, in the Company’s judgment. The Company’s decision in every case is final and binding on all concerned, including the disciplined Team Member and all other persons or entities involved in any way, directly or indirectly. If you do receive the benefit of any of these methods of constructive counseling, however, be sure to take advantage of the opportunity to learn from your mistakes and improve. Some of the standards of conduct and attendance that we expect from you include, but are not limited to, the following:A. GIVE US QUALITY WORK Pinnacle Automotive prides itself on being a leader in its field. One principle is enforced without exception: top quality service and performance. This philosophy has motivated the continued growth and success of Pinnacle. Your continued employment is dependent upon living up to this high standard in your job.B. BE ALERT TO SECURITY Our job sites and other facilities contain valuable machinery, equipment, and other property. It is important, in order to protect your job and the jobs of everyone employed by our Company, that© 2018 Pinnacle Automotive. Team Member Handbook 16
all Team Members pay close attention to the security of our facilities as well as all other property of the Company. Notify your Supervisor immediately if you see any suspicious or illegal activity of any kind, including the presence of strangers on our job sites or other Company premises.C. KEEP US UP-TO-DATE Up-to-date, personal information is necessary for a number of reasons, including ensuring the administration of your Team Member benefits. It is your responsibility to notify the Company promptly of any change in your address, telephone number, marital status, number of dependents, beneficiary designation or anything else that would affect your Team Member benefits or our ability to contact you quickly.D. REMEMBER COURTESY We view service to our customers as one of our most important responsibilities. You are expected to help us carry out this policy by extending every courtesy and all assistance necessary, not only to customers and your fellow Team Members, but to any clients and vendors of the Company. If someone asks you for assistance that you are unable to give, refer them to your Supervisor.E. BE AWARE OF YOUR PERSONAL APPEARANCE Individual appearance is an important aspect of our Company’s overall image, and each Team Member has a responsibility to be properly dressed at all times. Your common sense should lead you to practice good personal hygiene and to wear clean and neat clothing. Please refer to the Dress Code Guidelines provided in this Handbook.F. KEEP PERSONAL VISITORS AWAY You are not permitted to have visitors while at work. No one may enter our job locations or other facilities unless working for, or conducting business with the Company.G. POLICIES ON E-MAIL, COMPUTERS AND OTHER COMMUNICATIONS EQUIPMENT From time to time, the Company may issue to its Team Members certain electronic devices or other equipment (“Equipment”). This policy governs the use of such Equipment. Use of Equipment for Business Purposes All Equipment that is issued by the Company to its Team Members is issued for the purpose of furthering the business of the Company. Team Members are required to limit their non-business use of Equipment, if any, to unanticipated and exigent circumstances. Any non-business use of Equipment is at the sole and exclusive risk of the Team Member. The Team Member is solely responsible for any claim, expense, damage, or liability that may arise from any non-business use of Equipment. Any use of Equipment which is not supported by documentation or other information sufficient, in the sole discretion of the Company, adequately© 2018 Pinnacle Automotive. Team Member Handbook 17
to demonstrate the business nature of that use, shall be deemed to be non-business use. Any billing, costs, or other expense attributable to any non-business use of Equipment issued to a Team Member is the sole responsibility of the Team Member, and will be billed through to the Team Member by the Company. Ownership and Review of Data The Company at all times retains ownership of, and title in, any Equipment provided to any Team Member (except to the extent title or an interest remains vested in a third-party provider of Equipment). The Company also retains ownership of all business data sent to or from, generated on, contained on, or transmitted or received by, all Equipment. Accordingly, the Company has, and expressly reserves, the right to inspect any data contained in, received or transmitted by, generated on, or sent to or from, any item of Equipment. Such an inspection may take place at any time, with or without notice to the Team Member, and for any purpose deemed acceptable by the Company in its sole discretion. Team Members are not authorized to transmit business data from any item of Equipment to any person other than in furtherance of the business interests of the Company. For example, a Team Member may not transmit business data from an item of Equipment to the Team Member’s home computer system for personal use, use by a friend, or use by another company. Notwithstanding any other provision of this policy, Team Members are strictly prohibited from using any Equipment in any manner which may violate any federal, state, or local law, regulation, or ordinance. Team Members are not authorized to use any Equipment in any unlawful manner, and no officer or other Team Member of the Company has the ability to authorize unlawful use of any Equipment. Team Members are responsible for ensuring that her or his use of any Equipment complies with all applicable laws. Without limiting the generality of the foregoing, Team Members are specifically prohibited from using any Equipment for any of the following purposes: unlawful surveillance, wiretapping or eavesdropping; the retrieval, receipt, viewing, storage, or transmission of obscene, pornographic, or offensive communications; and harassment of any person, including sexual, racial, religious, and other forms of unlawful harassment. Care and Maintenance of Equipment Team Members should take the utmost care to ensure that any Equipment entrusted to them remains in good operating condition, is not abused, and is not lost.H. SOCIAL MEDIA POLICY At Pinnacle, we understand that social media can be fun and rewarding way to share your life and opinions with family, friends and co-workers. However, use of social media also presents certain risks and carries with it certain responsibilities. To assist you in making responsible decisions about your use of social media, we have established these guidelines for appropriate use of social media.© 2018 Pinnacle Automotive. Team Member Handbook 18
Guidelines: In the rapidly expanding world of electronic communication, social media can meanmany things. Social media includes all means of communication or posting of information orcontent of any sort on the internet, including to your own or someone else’s web log, blog, journalor diary, personal website, social networking or affinity website, web bulletin board or a chatroom, whether or not associated or affiliated with Pinnacle Automotive as well as any other formof electronic communication. Ultimately, you are solely responsible for what you post online.Before creating online content, consider some of the risks involved. Keep in mind that any of yourconduct that adversely affects your job performance, the performance of fellow Team Membersor otherwise affects the business operations of Pinnacle may result in disciplinary action up toand including termination.Know and follow the rules: Carefully read these guidelines and the Discrimination andHarassment Policies and ensure your postings are consistent with these policies. Inappropriatepostings that may include discriminatory remarks, harassment, and threats of violence or similarinappropriate or unlawful conduct will not be tolerated and may be subject to disciplinary actionup to and including termination.Be Respectful: Always be fair and courteous to fellow Team Members, customers, suppliers andanyone doing business with the Company. Also, keep in mind that you are more likely to resolvework related complaints by speaking directly with your co-workers or by contacting PeopleServices than by posting complaints to a social media outlet. Nevertheless, if you decide to postcomplaints or criticism, avoid using statements, photographs, video or audio that reasonablycould be viewed as malicious, obscene, threatening or intimidating, that disparage the Company,its customers, co-workers or suppliers, or that might constitute harassment or bullying. Examplesof such conduct might include offensive posts meant to intentionally harm someone’s reputationor posts that could contribute to a hostile work environment on the basis of race, sex, disability,religion or any other status protected by law or company policy.Be honest and accurate: Make sure you are always honest and accurate when posting informationor news, and if you make a mistake, correct it quickly. Be open about any previous posts you havealtered. Remember that the internet archives almost everything; therefore, even deleted postingscan be searched. Never post any information or rumors that you know to be false about Pinnacleco-workers, customers or competitors.Post only appropriate and respectful content: Maintain the confidentiality of Pinnacle, tradesecrets and private or confidential information. Trade secrets may include information regardingthe development of systems, processes, products, know-how and technology. Do not postinternal reports, policies, procedures or other internal business-related confidential information(see Conflict of Interest).Do not create a link from your blog, website or other social networking site to a Pinnacle websitewithout identifying yourself as a Team Member of Pinnacle. Pinnacle recognizes its Team Memberrights under Section 7 of the National Labor Relations Act to participate in protected concertedactivity. Nothing in this policy is intended to interfere with such rights.© 2018 Pinnacle Automotive. Team Member Handbook 19
I. FOLLOW OUR GUIDELINES FOR ENTERING AND LEAVING All Team Members must enter and leave Company job locations and other premises no earlier than fifteen (15) minutes prior to the beginning of your shift, and you are required to leave the facility within fifteen (15) minutes following the end of your shift. Except for these fifteen (15) minute periods before and after your shift, you are not permitted access to Company jobsites and other Company facilities during off duty hours. Exceptions to this rule will be permitted by the Company to allow attendance at scheduled functions of the Company to attend to Company business in our administrative or supervisory offices, such as special meetings, the submission of insurance forms, or claiming paychecks. Team Members should not begin work or “clock in” more than seven (7) minutes prior to the beginning of their scheduled start time and should stop working and “clock out” not more than seven (7) minutes after the end of their scheduled end time, unless the Team Member has been specifically instructed to work overtime by their Supervisor. Team Members may begin work before their scheduled hours or continue working after their scheduled hours only with express instructions from their Supervisor.J. AVOID PROHIBITED SOLICITATION OF CUSTOMERS AND TEAM MEMBERS As a condition of working for our Company, you agree that all Company customers that Team Members now or hereafter service during their employment, and all prospective customers from whom Team Members have solicited business while in the Company’s employ, shall be solely the Company’s customers. It is also improper for any of our Team Members to solicit other Team Members of the Company to leave the Company in order to go work for someone else. Therefore, while working for our Company, and for a period of one year immediately following employment termination, Team Members shall not either directly or indirectly solicit any of the Company’s customers or Team Members with whom Team Members had contact within one year prior to their termination for the purpose of encouraging such customers or Team Members to leave the Company.K. AVOID MAJOR OFFENSES You should be aware that there are certain major offenses which may result in immediate disciplinary action, up to and including termination. In order to avoid such severe consequences, just follow simple common-sense guides and avoid major offenses such as, but not limited to, the following: a. Failure or refusal to carry out orders or instructions b. Unsatisfactory work performance c. Failure to fulfill the responsibilities of the job to an extent that might or does cause injury to a person or damage to or loss of vehicle product, machinery, equipment, facilities, or other property of the Company d. Violation of a safety, fire prevention, health, or security rule, policy or practice e. False, fraudulent, misleading or harmful statement, action or omission involving another Team Member, a customer, the Company or relations with the Company; or any action disloyal to the Company f. False, fraudulent, misleading or harmful statement, action or omission related to an employment application or any other information provided to or requested by© 2018 Pinnacle Automotive. Team Member Handbook 20
the Company, whether oral or written; or refusal or failure to timely provide such information g. Unauthorized use of, removal of, theft of or damage to the property of the Company, a Team Member, an independent contractor, or a customer/client h. Failure to immediately report any accident or injury causing personal injury or property damage i. Threatened or actual physical violence j. The use of profane or abusive language k. Carrying any weapon while on Company business, jobsite, premises or property l. Violation of any of the provisions of the Company’s Drug and Alcohol Abuse Policy, as provided in this Section m. Organized gambling; or disorderly or immoral conduct while on Company premises, jobsite or business n. Accepting or engaging in any outside employment with a competitor of the Company; or conducting or attempting to conduct any outside business while on the Company’s premises or business o. Garnishments beyond the number protected by law p. Chronic, habitual, or excessive lateness or absenteeism of any type, early departure from work, and/or other violation of the Company’s Standards of Attendance as provided in this Section q. Harassment of another Team Member of a sexual nature or otherwise, including but not limited to verbal or physical conduct, or unwelcome advances with regard to or on the basis of race, color, religion, creed, age, sex, sexual orientation, national origin or disability r. An arrest, criminal complaint, summons to answer a criminal charge, statement of charges, indictment, criminal information or any other criminal charge or conviction of a Team Member, depending on the particular circumstances and the offense charged, including but not limited to the Company’s judgment as to the potential risk to safety or health of Team Members, the security of Company premises and property, and/or the Company’s reputation s. Failing to notify the Company of any criminal conviction within three (3) days of such conviction t. Sleeping on the job u. Not showing for or calling for scheduled shifts, two (2) consecutive daysL. MAINTAIN A DRUG AND ALCOHOL-FREE WORKPLACE To protect the safety, health, and productivity of all Team Members and the general welfare of Pinnacle, the following actions are considered by Pinnacle to be unacceptable conduct. A violation of any of these rules will be considered a major offense which, in Pinnacle’s judgment, may result in suspension subject to or discharge. a. Bringing onto our client’s premises, property or jobsite, having possession of, having present in the body system, being under the influence of, using, consuming, distributing or attempting to distribute, manufacturing or dispensing any form of narcotic, depressant, stimulant, hallucinogen, or any kind of perception-altering drug or controlled substance (excepting only the taking of a prescribed drug under the direction of a physician, to the extent it does not impair© 2018 Pinnacle Automotive. Team Member Handbook 21
job performance or threaten safety, health, security or property), at any time during the hours between the beginning and end of your work day, whether or not on Company business, premises, property or jobsite. b. Bringing onto our client’s premises, property or jobsite, having possession of, being under the influence of, using, consuming, distributing or attempting to distribute, manufacturing or dispensing any form of alcohol at any time during the hours between the beginning and end of your work day. c. Having possession of, being under the influence of, using, consuming, distributing or attempting to distribute, manufacturing or dispensing drugs, alcohol or any other mind or perception-altering substance outside your working hours in a manner that: (1) does or could adversely affect your job performance; (2) does or could adversely impact your or another person’s safety; or (3) does or could adversely impact the Company’s reputation. d. Refusing to cooperate in or submit to questioning, medical or physical tests or examination, or an inspection or search, when requested or conducted by Pinnacle or its designee.Examinations and Searches for Drugs and AlcoholPinnacle reserves the right, in its discretion, to the extent permitted by law, to require all TeamMembers and applicants for positions to submit drug testing by a person or agency designated byPinnacle, at Company expense. Such tests can include but are not necessarily limited to urine,breath, or other tests for evidence of the presence of alcohol, drugs, and perception-altering orother substances in the body. As is further set forth in Section 3 of this Handbook, Pinnacle alsoreserves the right to search Team Members’ packages, vehicles, lockers, handbags and similaritems while on our client’s property or business.In particular, the Company reserves the right, in its discretion, to examine or test for the presenceof alcohol and drugs (as stated above) in situations such as, but not limited to, the following, inaccordance with applicable law: a. As part of a pre-employment physical examination. b. Due to the safety or health risk or sensitive security duties of a specific job, as determined by Pinnacle, at any time. c. Following a safety infraction or work-related accident that does or might cause bodily injury or damage to property, in the Company’s judgment. d. Specific Team Member behavior on the job which the Company determines gives management reasonable suspicion that such behavior might be or is due to alcohol or drug use. e. As otherwise required or permitted by applicable law.© 2018 Pinnacle Automotive. Team Member Handbook 22
M. FOLLOW OUR ARBITRATION PROCEDURES Our Company has established an arbitration procedure for all employment matters. As a condition of employment, all of our Team Members have agreed by separate agreement to follow the arbitration procedures in order to resolve all such disputes, to the fullest extent permitted by applicable law.N. DOCUMENT DESTRUCTION PROHIBITED No officer, director, Team Member or agent of the Company shall knowingly destroy a document with the intent to obstruct or influence the investigation or proper administration of any matter within the jurisdiction of any government department or agency or in relation to or contemplation of any such matter or case.O. RETALIATION AGAINST WHISTLEBLOWERS PROHIBITED No officer, director, Team Member or agent of the Company shall take any harmful action with the intent to retaliate against any person, including interference with employment or livelihood, for providing to a law enforcement officer any truthful information relating to the commission or possible commission of any offense.P. TEAM MEMBER REFERENCES All references for current or former Team Members must be referred to the People Services Department. Under no circumstances should Team Members release any information about current or former Team Members.Q. UNIFORMS Most positions in our company require the wearing of uniforms. Uniforms must be worn during business hours and shall not be worn outside of business hours, other than for travel to and from work. Each Pinnacle Team Member will be issued (2) two uniform shirts. Each Team Member is responsible for wearing black pants/shorts (no jeans) to complete the Pinnacle uniform. For the winter months, jackets or windbreakers will be provided. A complete uniform consists, of a Pinnacle issued branded polo shirt, Pinnacle issued shorts/pants, and Pinnacle issued military style web belt and name tag.R. STANDARDS OF ATTENDANCE Attendance and Punctuality Punctual and regular attendance is an essential responsibility of each Team Member at Pinnacle. Tardiness and absenteeism cause problems for fellow Team Members and supervisors. When a Team Member is absent, others must be called upon to perform the work, which diminishes the smooth operations at Pinnacle.© 2018 Pinnacle Automotive. Team Member Handbook 23
Team Members are expected to report to work as scheduled, on time and prepared to start work.Team Members also are expected to remain at work for their entire scheduled work day. Latearrivals, early departures, or other absences from scheduled hours are disruptive and must beavoided. The purpose of this policy is to promote the efficient operation of the Company andminimize unscheduled absences.Any Team Member who fails to report to work without notification to his or her supervisor fora period of two (2) days or more will be considered to have voluntarily resigned his or heremployment relationship.AbsencesAbsence is defined as the failure to report to work when scheduled to work.1. Excused absence occurs when all of the following conditions are met: a. The Team Member provides sufficient notice to his or her supervisor b. The reason is deemed credible or acceptable by his or her supervisor c. The absence request is approved by his or her supervisor 2. Unexcused absences occur when one of the conditions above is not met. If it is necessary for you to be absent or late for work because of illness or an emergency, you must notify your supervisor no later than two hours prior to the beginning of your shift. If you are unable to call, you must have someone else make the call.Team Members who have three (3) or more consecutive days of unexcused absences because ofillness or injury must provide Pinnacle documentation from a health care provider. If an illness orinjury prevents a Team Member from performing their regularly scheduled duties, a health careprovider’s statement must be provided verifying (a) if and when the Team Member is able toreturn to work, if applicable; and (b) whether the Team Member is being released to return to fullduty or with work restrictions (if work restrictions are identified, they must be clearly explained).The Team Member is responsible for providing Pinnacle with the above documentation from ahealth care provider. Without an acceptable excuse, the Team Member may be subject toimmediate termination.Absences for FMLA or leaves of absence provided in accommodation for a disability or otherlegally protected leave will not be counted for disciplinary purposes. Similarly, the failure toprovide notice or documentation from a health care provider will not subject a Team Member todisciplinary action when the provision of such notice or documentation is not required byapplicable law. The failure to provide proper notice may still be considered a violation of theCompany’s standards of attendance even if the Company allows the Team Member to take therequested leave.© 2018 Pinnacle Automotive. Team Member Handbook 24
Sufficient Notice To be considered an excused absence as defined above sufficient notice must be given to the supervisor. Sufficient notice is defined as: 1. For scheduled absences, Team Members must give a notice of two (2) weeks. Requests must be made through Paycom prior to schedule publishing. 2. For an emergency absence such as an absence due to unexpected illness of a Team Member or a Team Member’s family member, where the need for absence arises prior to or at the beginning of the Team Member’s shift, the Team Member must notify his or her supervisor two hours prior to the beginning of the shift by calling the supervisor. If two hours’ notice is not possible due to the nature of the emergency absence the Team Member must provide as much notice as practicable under the circumstances. If the need for emergency absence arises during the Team Member’s shift, the Team Member must notify their supervisor prior to leaving the premises. 3. Your supervisor must approve any exceptions to this provision or any conflicts in scheduling. Your supervisor will approve exceptions to this notice provision in accordance with applicable law. Tardiness All Team Members are expected to report to work at their scheduled time and remain at work until the end of their scheduled shift. If you cannot report to work as scheduled, you should notify your supervisor as soon as possible. This notification does not excuse tardiness or early departures, but simply notifies your supervisor that a schedule change may be necessary. Excessive absences, tardiness or early departures may result in disciplinary action up to and including termination of employment.S. NO FRATERNIZATION The Company recognizes that Team Members may develop close working relationships during the course of employment, and does not wish to prohibit friendships that develop naturally in the work environment. However, the Company must also promote efficient business operations and avoid conflicts of interest, perception of favoritism, and other concerns such as security, morale, and potential claims of sexual harassment, therefore supervisors are forbidden from dating or engaging in romantic or sexual relationships with Team Members whom they directly supervise. This policy applies to all Lead, Supervisory and Management positions. Personal relationships include dating, romantic and sexual relationships. If a personal relationship develops between a supervisor and a Team Member under his or her direct supervision, the supervisory Team Member must inform their direct supervisor immediately. At that point, the Company will take the necessary steps to resolve the situation. It is the responsibility of all Team Members, supervisors and managers to ensure compliance with this policy. If an unreported personal relationship involving a supervisor and a Team Member under his or her direct supervision is discovered, the supervisor involved will be subject to disciplinary action, up to and including termination.© 2018 Pinnacle Automotive. Team Member Handbook 25
T. SOLICITATION AND DISTRIBUTION OF LITERATURE The Company actively supports and recognizes the importance of community service and encourages involvement on the part of individual Team Members outside of normal working time. Noted below are restrictions for solicitation and distribution of literature. 1. Solicitation by Team Members: Team Members are prohibited from soliciting or promoting support for any cause or organization during the Team Member’s working time, or during the working time of the Team Member(s) to whom the activity is directed. Such solicitation includes the sale of products or the collection of funds. 2. Distribution of literature by Team Members: Team Members are prohibited from distributing or circulating and written or printed material in work areas at any time, during the Team Member’s working time, or during the working time of the Team Member(s) to whom the activity is directed. 3. Team Members should not enter Company or work location property unless: on duty, scheduled for work (or for work related business), or as a customer at the location. 4. Team Members are prohibited from posting, taping tacking or otherwise displaying any form of non-company literature, printed or written materials, photographs, or notices of any kind on walls, doors, time-clock areas, entrance or exit doors, in restrooms, in parking lots, on customer vehicles, valet, concierge or cashier stands, or anywhere else on company or client property, including bulletin boards. Solicitation and distribution of literature is any verbal or written communication to or by Team Members, customers, or other outsiders directly or by the distribution of literature or gifts for the purpose of obtaining sales, contributions, signatures, support, membership or participation in any non-company sponsored or supported activity or business. Examples of solicitation would include: • Efforts on behalf of a political candidate • Asking another Team Member to join a political group, enterprise or organization such as a union • When a Team Member asks another Team Member to sign a petitionU. WEAPONS ON COMPANY/CLIENT PREMISES The possession of any weapon by Team Members on Company or Client premises at any time is prohibited. Team Members are advised not to bring weapons no Company or Client premises, including location parking lots. Law enforcement may be called in to assist with a weapons issue, at the discretion of the Company, when a Team Member is believed to be carrying a weapon. Weapons include firearms, knives, explosives, or other devices regarded as deadly or dangerous.© 2018 Pinnacle Automotive. Team Member Handbook 26
All Team Members are expected to comply with this policy. Team Members found to be in violation of this policy will be subject to disciplinary action up to and including termination.V. PROHIBITION OF RECORDING EQUIPMENT USE The Company and all Team Members share a mutual interest in protecting the privacy of Team Members and customers. All information heard or seen on property (including guest vehicles) regarding any customer is considered confidential. Consequently, the Company prohibits Team Members from using and recording device on company or client property, including audio, video and still photography. The only exceptions to this prohibition are tape recordings, still photography, or videotaping when there is “informed consent” of all parties to the conversation or event. Examples include training sessions, advertisements, and market research groups in which all parties consenting to the recording. No Team Member or other individual may openly or secretly tape or otherwise record or videotape any conversation, communication, activity, or event that in any way involves the Company, the Team Members of the Company, or any of the Company’s subsidiaries or affiliates, any customer or clients, or any other individual with whom the company is doing business or intending to do business in any capacity. No Team Member may eavesdrop on the conversations or communications of other Team Members or non-Team Members in accordance with the same standards set forth above. All requests for recording equipment use, except those noted above, must be previously approved by the People Services Department.W. WIRELESS PHONE USE While wireless phones are a great benefit for many of our Team Members, this benefit must be used responsibly. The use of wireless phones is therefore prohibited, except with a “hands free” microphone connection, while driving under any of the following circumstances: • A Company car is being driven; • The car is being driven on Company business; • The car is being driven to and from work; OR • The phone call is being made for business purposes. This prohibition applies only to the driver of the car. There is no prohibition against the use of wireless phones by car passengers, so long as the phone is not used in such a way as to prevent the driver from driving safely. Drivers who are permissibly using a hands free wireless phone should nevertheless follow common sense precautions, such as dialing numbers only while stationary and stopping all usage in hazardous driving.© 2018 Pinnacle Automotive. Team Member Handbook 27
IV. ABOUT YOUR JOBA. TEAM MEMBER CATEGORIES Throughout this Handbook, you will see references to the following Team Member categories: 1. Probationary Team Members. Those newly-hired Team Members who have not successfully completed their introductory period. The introductory period is generally ninety (90) days, but may be extended at the discretion of the Company. 2. Regular Full-Time Team Members. Those Team Members who are regularly scheduled to work an average of thirty (30) or more hours per week or one hundred and thirty (130) hours per month and have successfully completed their probationary period. They are normally eligible for the benefits provided in this Handbook. 3. Regular Part-Time Team Members. Team Members scheduled to work less than 30 hours per week are classified as Part-Time Team Members. 4. Variable Hour Team Members. Team Members who are not scheduled to work a set number of hours. Generally, the schedule of variable hour Team Members varies with the season. Variable hour Team Members must meet a 30-hour per week average over the period described in the health insurance plan document in order to be eligible for health insurance coverage. 5. Exempt, Overtime Exempt, and Non-Exempt Team Members. Our Team Members are also classified into the following categories for purposes of establishing eligibility for overtime pay. Exempt Team Members are paid a guaranteed weekly salary and are not eligible for overtime pay. Wages paid to Team Members classified as Exempt are intended to compensate them for all hours worked in a workweek. Exempt Team Members may be paid amounts in addition to their guaranteed weekly salary. Overtime Exempt Team Members are guaranteed the applicable minimum wage for all hours worked, but do not receive overtime pay. Overtime exempt Team Members may include Team Members paid on a commission basis and Team Members paid a flat rate by work order type. Wages paid to Team Members classified as Overtime Exempt are intended to compensate them for all hours worked. Non-exempt Team Members receive overtime pay for all hours worked in excess of forty (40) or as otherwise required by applicable law.B. WORKING HOURS Hours of work are determined by the Company to meet the needs of our client’s/dealership business. Your Supervisor will advise you of your regular work schedule, meal periods, and arrangements for personal breaks through the Paycom scheduling system. The “work week” begins at 12:01 a.m. on Saturday and ends at 12:00 midnight the following Friday. Team Members are paid bi-weekly every other Friday for work completed during the prior two workweeks.© 2018 Pinnacle Automotive. Team Member Handbook 28
You are expected to be at your job location (dressed in appropriate attire and ready for work) at the time your shift on your regular work day is scheduled to begin. You should “clock in” not more than seven (7) minutes prior to the beginning of your regular work day and “clock out” not more than seven (7) minutes after the end of your regular work day, unless you are specifically instructed to work overtime by the Company. The Company’s pay practices, procedures and records are the basis for establishing the number of hours worked by each Team Member, and govern all questions pertaining to hours worked, overtime, and all other pay issues. Nothing in this Handbook is a guarantee by the Company of hours of work per day, per week, per year, or on any specific work schedule.C. PAY PROCEDURES Pay is distributed on a bi-weekly basis. Team Members are paid on Friday for work performed in the prior two full workweeks. The Company will make every effort to properly pay all Team Members for all salary or wages due based on electronic time records. If you notice any errors in your pay, please call the Payroll Department promptly so that they may be immediately corrected. You may authorize a direct deposit to your designated bank account or to a Paycard issued by the Company. For Paycard charges and fees, please refer to the Paycard document provided by the Payroll Department. Exempt Team Member Salary Deductions The Fair Labor Standards Act (FLSA) is a federal law which requires that most Team Members in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for Team Members employed as bona fide executive, administrative, professional and outside sales Team Members. Section 13(a)(1) and Section 13(a) (17) also exempt certain computer Team Members. To qualify for exemption, Team Members generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week or more if required by applicable state or local law. Job titles do not determine exempt status. In order for an exemption to apply, a Team Member’s specific job duties and salary must meet all the requirements of the Department’s regulations. Salary Basis Requirement To qualify for exemption, Team Members generally must be paid at not less than $455 per week on a salary basis. These salary requirements do not apply to outside sales Team Members, teachers, and Team Members practicing law or medicine. Exempt computer Team Members may be paid at least $455 on a salary basis or on an hourly basis at a rate not less than $27.63 an hour. Being paid on a “salary basis” means a Team Member regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. The predetermined amount cannot be reduced because of variations in the quality or quantity of the Team Member’s work.© 2018 Pinnacle Automotive. Team Member Handbook 29
Subject to exceptions listed below, an exempt Team Member must receive the full salary for any workweek in which the Team Member performs any work, regardless of the number of days or hours worked. Exempt Team Members do not need to be paid for any workweek in which they perform no work. If the employer makes deductions from a Team Member’s predetermined salary, i.e., because of the operating requirements of the business, that Team Member is not paid on a “salary basis.” If the Team Member is ready, willing and able to work, deductions may not be made for time when work is not available. In order to comply, exempt Team Members are required to exhaust all accrued Paid Time Off before any deduction will be made for days missed from work. Circumstances in Which the Employer May Make Deductions from Pay Deductions from pay are permissible when an exempt Team Member: is absent from work for one or more full days for personal reasons other than sickness or disability; for absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness; to offset amounts Team Members receive as jury or witness fees, or for military pay; or for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions (the Company’s policy is for exempt Team Members to be suspended without pay only in full workweek increments). Also, an employer is not required to pay the full salary in the initial or terminal week of employment; for penalties imposed in good faith for infractions of safety rules of major significance, or for weeks in which an exempt Team Member takes unpaid leave under the Family and Medical Leave Act. In these circumstances, either partial day or full day deductions may be made provided such deductions do not violate applicable state or local law. Company Policy It is our policy to comply with the salary basis requirements of the FLSA. Therefore, we prohibit all company managers from making any improper deductions from the salaries of exempt Team Members. We want Team Members to be aware of this policy and that the Company does not allow deductions that violate the FLSA. What To Do If An Improper Deduction Occurs If you believe that an improper deduction has been made to your salary, you should immediately report this information to People Services or to the Payroll Manager. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, you will be promptly reimbursed for any improper deduction made.D. REPORTING OF TIME All Team Members must record the time they work each day by entering their Team Member ID and password on the company provided computer at each site. Team Members are responsible for their own timekeeping and are not to record the time of other Team Members. Violation of this policy may result in appropriate disciplinary action, up to and including termination. If a Team Member forgets to clock in or out, they must notify their manager of each missed punch immediately or they may not be paid for the time until the following pay period (see Time and Attendance Policy) for additional information.© 2018 Pinnacle Automotive. Team Member Handbook 30
E. LUNCH BREAKS All full-time Pinnacle Team Members are entitled to a thirty (30) minute unpaid lunch break. Part- time and on-call Team Members are entitled to a thirty (30) minute unpaid break only if they are scheduled to work five or more consecutive hours. All Team Members are permitted a fifteen (15) minute paid break for every shift worked. Team Members must clock out during their thirty (30) minute breaks. Team Members scheduled for eight (8) or more hours in one work day are permitted two (2) fifteen (15) minute paid breaks.F. OVERTIME Occasionally, due to the nature or volume of work or deadlines, Team Members may be asked to work beyond the normal workday. Prior approval by your supervisor is required before any Team Member may work overtime. Non-exempt Team Members who are required to work overtime are eligible for overtime pay. Overtime compensation consists of pay for the first 40 hours at your regular hourly rate and pay at one-and-one-half times your regularly hourly rate for all hours worked beyond 40 hours. Managers that are exempt Team Members are not eligible for overtime pay. The weekly salary of an exempt manager compensates the manager for all hours worked during the workweek.G. PAYROLL PROCESSING Pinnacle’s business model relies on payroll data to generate billing information. This process is designed to protect Pinnacle’s reputation of integrity be ensuring the accuracy of payroll data. To help manage the time constraints necessary to provide accurate data, it is a recommended best practice to populate the electronic payroll data files daily. Site leaders ensure that online timesheets are completed each evening. These online timesheets are due bi-weekly by the Monday 10:00AM EST for that pay period. Site leaders will review all timesheets by Monday 10:00AM EST at which point the Payroll Department will lock timesheets and review and audit prior to transmitting to payroll for paycheck deposit production. Managers must ensure that Team Members are accurately signing in and out of the Paycom system each day. Timesheets are stored in Paycom and are routinely audited.© 2018 Pinnacle Automotive. Team Member Handbook 31
V. TIME OFF / LEAVES OF ABSENCEA. HOLIDAYS All Corporate and exempt operations leaders receive a total of seven (7) paid holidays including: New Year’s Day, Memorial Day, Labor Day, Thanksgiving Day, Day immediately following Thanksgiving, Christmas Eve, and Christmas Day. Many of our locations are open during holidays and Team Members may be asked to work on those days.B. PAID TIME OFF Full-time operations management Team Members with at least one year’s continuous service may be eligible to receive one week (40 hours) of paid time off. After twenty-four (24) months of work, full-time employment, the Team Member is eligible for 2 weeks (80 hours) of paid time off. Paid time off benefits are determined according to each Team Member’s anniversary date of employment. To be eligible to receive paid time off, a Team Member must: 1. Have worked 2000 or more hours preceding his or her anniversary date (equivalent of one year of 40 hours per week). 2. Work through his or her anniversary date, and be an active Team Member on that day. Unused paid time off cannot be rolled over to the next anniversary year; if a Team Member does not use the paid time off, it is lost on the anniversary date. If a Team Member’s employment ends, regardless of the reason, there is no paid time off payable to the Team Member and the Team Member will not be compensated for any unused paid time off. All requests for paid time off must be submitted and approved no later than two (2) weeks prior to the paid time off. Team Members who leave the company for any reason are not eligible to receive any payment for unused paid time off, which is forfeited at the time of separation from employment.C. PAID TIME OFF-MONTGOMERY COUNTY This policy applies to all Team Members working in Montgomery County scheduled to work eight or more hours per week. Team Members working in Montgomery County are not eligible for the paid time off described in section V. (B) of this handbook. Prior to three years of consecutive employment, Team Members accrue one hour of leave for every thirty hours worked up to a maximum of 56 hours annually (calculated from the Team Member’s anniversary date). While leave accrues during the first ninety days of employment, no leave may be used during that period. Any leave accrued during the first year of employment may be used only use leave for sick and safe leave purposes. For leave accrued during the second and third years of employment, the Team Member may use up to 40 hours of leave annually for any© 2018 Pinnacle Automotive. Team Member Handbook 32
permissible leave purpose including vacation leave and sick and safe leave. Paid time off in excessof 40 hours annually may only be utilized for sick and safe leave.After 3 consecutive years of full-time employment, a Team Member is eligible to use a maximumof 80 hours of paid time off annually. The Team Member may use the full allotment of the leavefor any permissible leave.Paid time off benefits are determined according to each Team Member’s anniversary date ofemployment. If a Team Member does not use the paid time off, up to 56 hours may be carriedover into the following anniversary year. However, a Team Member may use no more than 80hours of leave in any year (calculated from the Team Member’s employment anniversary date). Ifa Team Member’s employment ends, regardless of the reason, there is no paid time off payableto the Team Member and the Team Member will not be compensated for any unused paid timeoff.All requests for paid time off must be submitted and approved no later than 10 days prior to thepaid time off for paid time off which does not constitute sick and safe leave. For sick and safeleave which is foreseeable, the Team Member must make the request for leave in writing at leastten days prior to the leave. For sick and safe leave which is not foreseeable, the Team Membermust call the Team Member’s manager at least two (2) hours prior to the start of the TeamMember’s shift. If the Team Member is unable to comply with the sick and safe leave noticeprovisions because of circumstances outside the control of the Team Member, the Team Membermust call his or her manager as soon as practicable after the Team Member determines that theTeam Member needs the leave. All requests for sick and safe leave must include theanticipated duration of the leave.Sick and safe leave means leave that is requested:1. to care for or treat the Team Member’s mental or physical illness, injury, or condition;2. to obtain preventive medical care for the Team Member or the Team Member’s family member;3. to care for a family member with a mental or physical illness, injury, or condition;4. if the employer’s place of business has closed by order of a public official due to a public health emergency;5. if the school or child care center for the Team Member’s family member is closed by order of a public official due to a public health emergency;6. to care for a family member if a health official or health care provider has determined that the family member’s presence in the community would jeopardize the health of others because of the family member’s exposure to a communicable disease;7. for the birth of a child, or for the placement of a child with the Team Member for adoption or foster care;8. to care for a newborn, newly adopted, or newly placed child within one year of birth, adoption, or placement; or9. if the absence from work is due to domestic violence, sexual assault, or stalking committed against the Team Member or the Team Member’s family member and the leave issued: (A) by the Team Member to obtain for the Team Member or the Team© 2018 Pinnacle Automotive. Team Member Handbook 33
Member’s family; (i) medical attention needed to recover from a physical or psychological injury due to domestic violence, sexual assault, or stalking; (ii) services from a victim services organization related to the domestic violence, sexual assault, or stalking; (iii) legal services, including preparing for or participating in a civil or criminal proceeding related to the domestic violence, sexual assault, or stalking; or (B) during the time that the Team Member has temporarily relocated due to the domestic violence, sexual assault, or stalking.D. MILITARY LEAVE Team Members who are members of the United States Army, Navy, Air Force, Marines, Coast Guard, National Guard, Reserves or Public Health Service will be granted an unpaid leave of absence for military service, training or related obligations in accordance with applicable law. Team Members on military leave may substitute their earned vacation time for the unpaid leave. At the conclusion of the leave, upon the satisfaction of certain conditions, a Team Member generally has the right to return to the same position they held prior to the leave or to a position with like seniority, status and pay that the Team Member is qualified to perform. During a military leave of less than 31 days, a Team Member is entitled to continued health coverage under the same conditions as if the Team Member had continued working. For military leave of more than 30 days, a Team Member can elect to continue benefits under COBRA. Upon receipt of orders for active or reserve duty, the Team Member should submit a copy of the orders to their supervisor. When orders cannot be submitted due to military protocol, the Team Member must provide a contact (such as the commanding officer or division HR) who can confirm the need for time off. Team Members will be granted time off up to 14 days plus travel for military training and other related obligations. Team Members returning from military service must present notice of or submit an application for reemployment in accordance with the following: 1. A Team Member who served for less than 31 days or who reported for a fitness examination must report to work for the next regularly scheduled work day. 2. A Team Member, who served for more than 30 days but less than 181 days, must submit an application for reemployment no later than 14 days after completing their period of service. 3. A Team Member who served for more than 180 days must submit an application for reemployment no later than 90 days after completion of the uniformed service. 4. A Team Member who has been hospitalized or is recovering from injury or illness incurred or aggravated while serving must report to the Company (if service was less than 31 days), or submit an application for reemployment (if service was greater than 30 days), at the end of the necessary recovery period. This may not exceed two years.© 2018 Pinnacle Automotive. Team Member Handbook 34
E. TIME OFF TO VOTE Full-time Team Members are entitled to up to two consecutive hours of unpaid time to vote at general, primary or presidential elections if they do not have two consecutive hours to vote between 7:00 am and 8:00 pm. Team Members are encouraged to vote either before or after their regularly scheduled work hours. The Company will not discriminate or take adverse action against any Team Member who requests time off work to serve as an election officer provided reasonable notice of the absence is given.F. JURY DUTY The Company encourages Team Members to fulfill their civic duties. To that end, Team Members will be allowed unpaid leave to serve on a jury, if summoned. We request that you bring in a copy of your summons notice as soon as you receive it, so that we may keep it on file and adjust work schedules accordingly. Upon serving, Team Members are required to submit proof of service upon returning to work. If you are called during a particularly busy period, we may ask you to request a postponement. The Company will provide additional documentation in this regard, if necessary, to obtain such postponement. Jury duty can last from a portion of a single day to several months or more. During this time you will be considered on a leave of absence and will be entitled to continue to participate in insurance and other benefits as if you were working. While serving on jury duty, you are expected to call in to your supervisor periodically to keep him or her apprised of your status. Exempt Team Members will be paid for this time unless the term is a full week or more and no work is performed during that week. Full time Team Members who serve 4 or more hours on jury duty on any given day may not be required to report to shifts starting at 5:00 p.m. on the same day or before 3:00 a.m. the following day.G. VICTIMS OF CRIME LEAVE – VIRGINIA Virginia based Team Members who are victims of crime (felony, assault, battery, stalking, violation of protective order, sexual battery, attempted sexual battery, maiming or driving while intoxicated) are entitled to unpaid time off to attend criminal proceedings. This leave is also afforded if the Team Member’s spouse, child, sibling, or foster guardian (or parent if minor) is mentally or physically incapacitated or a victim of homicide. The amount of leave may be limited if it creates an undue hardship for the Company. The Company will not discriminate against or terminate a Team Member taking this leave. Team Members will be required to provide copies of notices of each scheduled criminal proceeding.H. THE FAMILY MEDICAL LEAVE ACT (FMLA) Eligible Team Members may take up unpaid, job-protected leave per year for specific family and medical reasons and to care for relatives who are members of the armed forces and who have© 2018 Pinnacle Automotive. Team Member Handbook 35
suffered injury or illness in the line of duty while on active duty or who are covered veterans,under the federal Family Medical Leave Act (FMLA), as set forth below.Eligibility: Team Members are eligible for FMLA leave (1) if they have been employed for at leasttwelve (12) months with the Company, (2) have worked a minimum of 1,250 hours over theprevious 12- month period, and (3) are employed at a worksite within a 75-mile radius of 50 ormore Team Members of the Company at the time leave commences.Reasons for Taking FMLA Leave: FMLA leave may be taken for any of the following reasons: • To care for a Team Member’s child after birth, or placement for adoption or foster care (up to 12 work weeks); • To care for a Team Member’s spouse, son or daughter, or parent, who has a serious health condition (up to 12 work weeks); • For a Team Member’s own serious health condition that makes a Team Member unable to perform his or her job (up to 12 work weeks); • On account of a “qualifying exigency” arising out of a Team Member’s spouse, son, daughter, or parent’s deployment on covered active duty to a foreign country for members of the regular Armed Forces, Reserves, or National Guard (up to 12 work weeks) (“Military Exigency” leave); or • For a Team Member who is the spouse, son, daughter, parent, or next of kin to care for a member of the Armed Forces, National Guard, or Reserves who has suffered injury or illness in the line of duty while on active duty or a covered veteran who is undergoing medical treatment, recuperation, or therapy for a serious injury or illness (up to 26 work weeks) (“Military Caregiver” leave).Calculation of Available Leave: For purposes of calculating the amount of FMLA leave available toan eligible Team Member for all categories of leave except Military Caregiver leave, the Companyuses a twelve-month calendar year. Entitlement for Military Caregiver leave is measured forwardfor a single 12-month period, starting with the first date of Military Caregiver leave.Use of Paid Leave During FMLA Leave: Team Members must apply their accrued paid leave to anyFMLA leave that they take. Paid leave is used to offset the unpaid portion of the FMLA leave; itdoes not extend the duration of the FMLA leave. Once a Team Member’s paid leave is exhausted,the remainder of the Team Member’s FMLA leave will be unpaid. Use of paid leave is subject tothe terms and conditions of the Company’s paid leave policy.Requesting Leave: Requests for foreseeable FMLA leave must be submitted in writing to PeopleServices (verbal notice in compliance with call-out procedures is acceptable in the case ofemergency or unforeseeable leave situations). The Company will provide notice of eligibility forleave to each Team Member requesting leave within five business days of the request. Noticeregarding designation of leave will be provided five business days after the Company obtainssufficient information to make a determination regarding qualification of leave. • Team Members are required to provide 30 days advance notice when the need for FMLA leave is foreseeable.© 2018 Pinnacle Automotive. Team Member Handbook 36
• If the need for FMLA leave is foreseeable but on less than 30 days’ notice, Team Member is required to give notice the same day or the first business day after Team Member becomes aware of the need for leave. • In the event of an unforeseeable need leave (i.e., an emergency), Team Member must comply with the Company’s call-out procedures.If the need for FMLA leave is foreseeable and the Team Member does not provide 30 days’ notice,the Company reserves the right to delay the leave for 30 days if no reasonable explanation fordelay is given. Failure to provide timely notice allows the Company to count any absence duringthe delay period (or any non-compliant absences) as non-FMLA leave and to apply the Company’sregular attendance/absenteeism policy to those absences.In the case of Military Exigency leave, Team Member is required to give notice the same day orthe first business day after Team Member becomes aware of the need for leave. When requestingFMLA, Team Members are required to provide sufficient information to the Company to enablethe Company to determine whether leave is needed for a qualifying reason, and to cooperatewith the Company’s requests for supplemental information. Failure to provide such informationor to cooperate with such requests may result in denial of leave.The Company will provide notices regarding a Team Member’s eligibility for leave and designationof leave as required by law. These notices provide information about requirements that may applyto Team Members during or after an FMLA leave.Serious Health Condition and Medical Certification: A Team Member may take leave because of aserious health condition that makes the Team Member unable to perform the functions of theTeam Member's position, or to care for a family member with a serious health condition.• A serious health condition is defined as an illness, injury, impairment, or physical or mental condition that involves (1) inpatient care, or (2) continuing treatment by a health care provider.• Inpatient care means an overnight stay in a hospital, hospice, or residential health care facility, including any period of incapacity (inability to work, attend school, or perform regular daily activities due to the serious health condition, treatment for it, or recovery from such treatment) or any subsequent treatment in connection with the inpatient care.• Continuing treatment applies in the event of incapacity and treatment; pregnancy or prenatal care; chronic conditions; permanent or long-term conditions; and/or conditions requiring multiple treatments.• Incapacity and treatment means: (1) A period of incapacity or treatment of more than 3 consecutive, full calendar days and any subsequent treatment or period of incapacity relating to the same conditions, that also involves (a) treatment two or more times, within 30 days of the first day of incapacity, unless extenuating circumstances exist, by a health care provider, nurse under direct supervision of health care provider, or provider of health care services under order of or on referral by a health care provider (the first visit must be within seven days of the onset of the incapacity); or (b) treatment by a health care provider on at least one occasion which results in a regimen of continuing treatment under the supervision of the health care provider.© 2018 Pinnacle Automotive. Team Member Handbook 37
• Chronic conditions are conditions that (1) require visits to a health care provider for treatment at least twice a year; (2) continue over an extended period of time (including recurring episodes); and (3) may cause episodes of incapacity rather than a continuing period of incapacity.Team Members with questions about what illnesses are covered under this FMLA policy areencouraged to consult with People Services.The Company requires medical certification to support a request for FMLA leave due to a TeamMember’s own or a family member’s serious health condition and may require second or thirdopinions (at the Company’s expense), as permitted by law. A Team Member’s request for FMLAleave under this category may be denied if the Team Member fails to timely provide a requiredmedical certification or if the Team Member provides an incomplete medical certification anddoes not correct it as required.The Company may, but is not required to, contact the Team Member’s or the family member’shealth care provider to authenticate the medical certification or to clarify any vague orunresponsive information, however, it is the Team Member’s responsibility to provide a completeand sufficient certification. Team Members are also responsible for granting the health careprovider all necessary authorization from the Team Member or the family member for the healthcare provider to release a complete and sufficient certification to the Company to support theTeam Member’s request for FMLA leave. Failure to do so may result in denial of leave.The Company may require recertification every six months and, in certain circumstances, mayrequire recertification on a more frequent basis. Recertification may also be required at any timeif extension for leave is requested, circumstances have significantly changed since the lastcertification, or the Company has received information casting doubt on the Team Member’sstated reason for leave or the validity of the certification, or under any other circumstancepermitted by law. The Company reserves the right to provide the health care provider with a copyof a Team Member’s attendance records at the time of recertification to confirm whetherabsences were consistent with medical need. Recertification must normally be completed within15 days of the Company’s request.Military Caregiver Leave and Certification: To qualify for Military Caregiver leave, severalconditions must apply. The family member must be a \"covered service member,\" which means amember of the Armed Forces, including the National Guard or Reserves, who is undergoingmedical treatment, recuperation, or therapy, is in outpatient status at a military medicaltreatment facility or unit for the care of members of the armed forces, or is otherwise on thetemporary disability retired list, for a \"serious injury or illness.\" Covered service member alsoincludes a veteran of the regular Armed Forces, National Guard, and Reserves who is undergoingmedical treatment, recuperation, or therapy for a serious injury or illness. A covered veteran is anindividual who was discharged or released under conditions other than dishonorable discharge atany time during the five-year period prior to the first date the eligible Team Member takes FMLAleave to care for the covered veteran.For a covered service member, \"serious injury or illness\" means an injury or illness incurred by theservice member in line of duty while on active duty in the armed forces that may render the© 2018 Pinnacle Automotive. Team Member Handbook 38
service member medically unfit to perform the duties of the service member's office, grade, rank,or rating. Serious injury or illness includes the aggravation of existing or pre-existing injuriesincurred in the line of duty while on active duty.For a covered veteran, “serious injury or illness” means an injury or illness that was incurred oraggravated by the service member in the line of duty on active duty in the Armed Forces andmanifested itself before or after the service member became a veteran, and is:(1) a continuation of a serious injury or illness that was incurred or aggravated when the coveredveteran was a member of the Armed Forces and rendered the service member unable to performthe duties of his or her office, grade, rank, or rating;(2) a physical or mental condition for which the covered veteran has received a VA Service RatedDisability (VASRD) of 50% or greater and such VASRD rating is based, in whole or in part, on thecondition precipitating the need for caregiver leave;(3) a physical or mental condition that substantially impairs the covered veteran’s ability to secureor follow a substantially gainful occupation by reason of a disability or disabilities related tomilitary service or would do so absent treatment, or(4) an injury, including a psychological injury, on the basis of which the covered veteran has beenenrolled in the Department of Veterans Affairs Program of Comprehensive Assistance for FamilyCaregivers.This leave is available to a Team Member who is the spouse, son, daughter, parent, or next of kin(defined as nearest blood relative) of the covered service member or veteran.Medical certification is required for Military Caregiver leave from covered service member’shealth care provider. The health care providers authorized to complete certification in this regardare: (1) U.S. Department of Defense (DOD) health care providers; (2) U.S. Department of VeteransAffairs (VA) health care providers; (3) DOD TRICARE network authorized health care providers; (4)DOD non-network TRICARE authorized health care providers; and (5) health care providers whoare not affiliated with DOD, VA or TRICARE, as defined by the regulations. Such certification mustnormally be provided within 15 days of request. Second and third opinions may only be requiredby an employer for military caregiver leave certifications that are completed by health careproviders who are not affiliated with DOD, VA, or TRICARE.Instead of medical certification, leave under this category may also be certified through thepresentation of International Travel Orders (ITO) or International Travel Authorization (ITA)requiring the covered Team Member to travel to aid the service member. ITO and ITA forms arenot subject to second or third opinions or recertification, although verification/clarification maybe sought. Any time required for leave that exceeds the time provided in the ITO or ITA must besupported by a completed medical certification form.Military Caregiver leave is applied on a per-covered service member and per-injury basis, whichmeans that it may be taken with respect to different covered service members or to care for thesame service member suffering from a subsequent (different) illness or injury.Military Exigency Leave and Certification: Military Exigency leave is for a non-medical activity thatis directly related to a Team Member's family member's deployment to a foreign country on active© 2018 Pinnacle Automotive. Team Member Handbook 39
duty with respect to that family member’s service in the Regular Armed Forces, or that familymember’s deployment to a foreign country on active duty pursuant to a contingency operationas a member of the National Guard or Reserves.There are eight (8) categories of activities for which this leave may be used. (The Company andTeam Member may, but are not required, to permit leave for other reasons based on mutualagreement.) The categories are:1. Short-notice deployment (leave permitted up to 7 days if service member receives 7 or less days’ notice of call to active duty);2. Military events and related activities;3. Certain temporary child care arrangements and school activities (not ongoing child care);4. Financial and legal arrangements;5. Counseling by non-medical counselor;6. Rest and recuperation (leave permitted up to 15 days when military member is on temporary rest and recuperation leave);7. Post-deployment activities; and/or8. Parental care leave (if a parent of the military member is incapable of self-care).The Company may require two forms of certification for military exigency leave: certification ofactive duty orders, and certification of the qualified exigency. Certification of the qualifiedexigency must be supported by a certification containing the following information: statement ordescription of appropriate facts regarding the qualified exigency; approximate date on which thequalifying exigency commenced or will commence; beginning and end dates for leave to be takenfor a single continuous period of time; an estimate of the frequency or duration of the qualifyingexigency if leave is needed on a reduced schedule or intermittent basis; a copy of the militarymember’s rest and recuperation leave orders or other documentation issued by the militarysetting forth the dates of leave; and/or, if the qualifying exigency requires meeting with a thirdparty, the contact information for the third party and description of the purpose of the meeting.Such certification must normally be provided within 15 days of request.Health Benefits: For the duration of FMLA leave, the Company will maintain the Team Member’shealth coverage under our group health plan, except as provided below. The Team Member willbe responsible for paying his or her share of the premium. If paid leave is substituted for unpaidFMLA leave, the Company will deduct the Team Member’s portion of the health care premium asa regular payroll deduction. If all or any portion of the FMLA leave is unpaid, the Team Membermust directly pay his or her portion of the premium. The Team Member must make arrangementsfor payment of health care premiums prior to starting FMLA leave.Health care coverage will cease if the Team Member’s premium payment is more than 30 dayslate. If the Team Member elects not to return to work at the end of the FMLA leave period, he orshe will be required to reimburse the Company for maintaining coverage during the FMLA leave,unless the Team Member cannot return to work because of a serious health condition or othercircumstances beyond the Team Member’s control.As for other benefits, the FLMA does not entitle you to the accrual of seniority or other benefitsduring any period of leave, nor are you entitled to any benefit to which you would not otherwisebe entitled had you not taken the leave.© 2018 Pinnacle Automotive. Team Member Handbook 40
Intermittent, Reduced Schedule, and Shared Leave and Bonding Leave: FMLA leave may be takenintermittently or on a reduced leave schedule where the Team Member’s or a family member’sserious health condition requires periodic treatment rather than a period of continuous leave.Intermittent leave may also be allowed to bond with a newborn or newly placed/adopted childon a case-by-case basis, or for either category of leave related to military service. The Company,however, is not required to grant intermittent or reduced schedule bonding leave.If both parents are employed by the Company and eligible for FMLA leave at the time the child isborn, adopted, or placed with the family, or to care for a parent with a serious health condition,they may take a combined total of 12 weeks leave. The Company reserves the right to transferTeam Members to alternative positions (with equivalent pay and benefits) in order toaccommodate intermittent or reduced schedule leave.Leave for a Team Member’s own or a family member’s serious health condition, to bond with anewborn or a newly placed/adopted child, or for a Military Exigency may be combined, in any 12-month period, for a combined total of 12 weeks.In the event that a Team Member needs to combine FMLA Military Caregiver leave with leave forany other qualifying reason, that Team Member is entitled to a combined total of 26 weeks ofFMLA leave in a leave year (although no more than 12 weeks of FMLA leave may be taken for anyFMLA reason other than FMLA Military Caregiver leave within that leave year).If both spouses in a couple are employed by the Company, they make take a combined total of 26weeks of leave to care for a recovering service member.Leave to bond with a newborn or newly placed/adopted child may only be taken within the firstyear after the child’s birth or placement.Part-Time Team Members and Team Members with Irregular Schedules: The FMLA leaveentitlement is 12 (or) 26 workweeks in a 12-month period. For part-time and irregularly scheduledTeam Members, the leave entitlement is pro-rated based on the number of hours worked. Forpart-time Team Members who work a regular schedule, the leave entitlement is calculated as thenumber of hours that the Team Member is regularly scheduled to work per week multiplied by12 (or 26). For Team Members whose schedules are irregular, the leave entitlement is calculatedby averaging the number of hours worked per week over the 12 months prior to thecommencement of FMLA leave, and multiplying that number by 12 (or 26).Job Protection and Reinstatement: Upon return from FMLA leave, most Team Members will berestored to their original positions or equivalent positions with equivalent pay, benefits, and otheremployment terms. The use of FMLA leave cannot result in the loss of any employment benefitthat accrued prior to the start of a Team Member’s leave. \"Key Team Members,\" defined as thehighest paid 10 percent of our Team Members, cannot be guaranteed reinstatement undercertain circumstances. The Company is not required to return to work Team Members who wouldhave been terminated had they not taken FMLA leave, such as in a layoff situation.Obligations of Team Members Before and During Leave: Team Members are required to: (a)respond to the Company’s questions designed to determine whether an absence qualifies for© 2018 Pinnacle Automotive. Team Member Handbook 41
FMLA; (b) consult with the Company in advance and make a reasonable effort to scheduleforeseeable leave for planned medical treatment (whether continuous, intermittent, or reducedschedule) so as to not unduly disrupt the Company’s operations; and (c) discuss and resolve withthe Company any dispute about whether leave qualifies under FMLA.During FMLA leave, the Company may also require a Team Member to report periodically on hisor her status and intention to return to work.The Company may require a Team Member returning to work from leave for his or her ownserious health condition to provide fitness for duty certification, to the extent permitted by law.Failure to Return to Work: A Team Member who does not return to work upon the expiration ofFMLA leave, and has not provided an explanation for his or her continuing absence, will beconsidered to have voluntarily terminated employment. Extensions of leave must be requestedin writing prior to the expiration of a Team Member’s FMLA leave and will be considered on acase-by- case basis. Any extension of FMLA leave is an extension of time only; job protection willnot be extended beyond the 12 weeks required by the FMLA, except to the extent required underthe Americans with Disabilities Act with respect to leave for a Team Member’s own serious healthconditionCompliance with the Genetic Information Nondiscrimination Act of 2008: The Genetic InformationNondiscrimination Act of 2008 (“GINA”) prohibits employers and other entities covered by GINATitle II from requesting or requiring genetic information about a Team Member or TeamMember’s family member, except as specifically allowed by this law.To comply with GINA, Team Members must not provide any genetic information when respondingto any request for medical information from the Company, except as stated in this policy.Requests for medical information may arise in connection with requests for Family Medical Leave.The Company is permitted by law to request and receive LIMITED information in connection witha Team Member’s request for Family Medical Leave to care for a family member with a serioushealth condition.Under GINA, “genetic information” includes a Team Member’s family medical history, the resultsof a Team Member’s or Team Member’s family member’s genetic tests, the fact that a TeamMember or Team Member’s family member sought or received genetic services, and geneticinformation about a fetus carried by a Team Member or Team Member’s family member or anembryo lawfully held by a Team Member or Team Member’s family member who is receivingassistive reproductive services.Concurrent Leave: To the extent permitted by law, all leaves of absence run concurrently withFMLA leave, including, but not limited to, workers compensation leave and leave provided as areasonable accommodation under the Americans with Disabilities Act, or as a reasonableaccommodation for Team Members who are disabled by pregnancy related conditions.Compliance with the FMLA: The Company will not interfere with, restrain or deny the exercise ofany right under the FMLA, nor will it discharge or discriminate against any person for opposingany practice made unlawful by FMLA or for involvement in any proceeding under or relating to© 2018 Pinnacle Automotive. Team Member Handbook 42
FMLA. This policy is intended only to summarize the requirements of the FMLA; if there is anyconflict between this policy and the FMLA, the law controls.Enforcement: A Team Member may file a complaint with the U.S. Department of Labor or maybring a private lawsuit against an employer. FMLA does not affect any Federal or State lawprohibiting discrimination, or supersede any State or local law or collective bargaining agreementwhich provides greater family or medical leave rights.Questions: If you have any questions about your rights and obligations under the FMLA, pleasecontact People Services.© 2018 Pinnacle Automotive. Team Member Handbook 43
I. PERSONAL LEAVE OF ABSENCE Extraordinary personal, medical or family needs may occasionally require time off. For such purposes, an unpaid leave of absence may be available. The availability of a leave of absence depends upon the circumstances of the request, taking into account work record, attendance, length of service, and legal and staffing requirements. The Company reserves the right to approve or deny unpaid leave at its discretion based on (1) the proven circumstances of each Team Member request and (2) applicable state and federal law. Any such leave is at the sole discretion of the Company and must be approved by the President. Such requests must be submitted in writing no less than 30 days in advance of the need for leave if foreseeable. If the need for leave is unforeseeable, Team Members should request leave as soon as the need for leave becomes known. Team Members are required to use up all eligible vacation before an unpaid personal leave will be granted.J. FLEXIBLE LEAVE POLICY – MARYLAND Maryland Team Members are entitled to use paid leave to take time off to care for ill members of their immediate family (child, spouse or parent). Team Members are required to comply with callout procedures when using leave for this purpose. The Company will not discriminate or retaliate against Team Members using leave for this purpose.K. CONCURRENT LEAVE POLICY To the extent permitted by law, all leaves of absence including FMLA leave and leave taken under the personal leave of absence policy or due to a workplace injury, and leaves of absence that are provided as a reasonable accommodation under the Americans with Disabilities Act or for Team Members who are disabled by pregnancy will run concurrently.L. CIVIL AIR PATROL LEAVE All Team Members employed by Pinnacle for at least 90 days will receive a minimum of 15 days of unpaid leave for duty in the Civil Air Patrol. Team Members may at their discretion, utilize available PTO during Civil Air Patrol Leave.M. DEPLOYMENT LEAVE All Team Members employed by Pinnacle for at least twelve months, whether consecutive or intermittent, and who have worked at least 1,250 hours during the twelvemonth period, are eligible to one day of leave on the day an immediate family member is leaving for or returning from active duty outside the United States as a member of the armed forces of the United States.N. BEREAVEMENT LEAVE The Company will allow time off for team members to attend the funerals of family members and friends. Your supervisor will approver whatever period of time is appropriate under the circumstances. For immediate family members (spouse, child, mother father, sibling, grandparents, and any of their spouses) the Company will pay up to three (3) days bereavement leave. All leave must be approved by your supervisor or the People Services Department.© 2018 Pinnacle Automotive. Team Member Handbook 44
VI. BENEFITSA. GENERAL In addition to the regular paycheck you receive for working at our Company, we offer numerous benefits, services, and conveniences to help provide protection and assistance for you and your family. The value you receive from these benefits and services is really a “hidden paycheck” provided by our Company, with a significant value. Our insurance and other plan benefits are discussed in more detail in separate booklets, and in the formal contracts and other plan documents. In the event there is any question or conflict in language or interpretation between those booklets and documents in relation to the provisions of this Handbook, the terms of the actual contracts and other plan documents will control over the summaries in this Handbook. It is further understood that nothing in any of the benefits plans summarized in this section will be considered a waiver of the Company’s Standards of Attendance as stated in elsewhere in this Handbook. Here are some of the highlights of the Company’s Team Member benefits program, and a number of other services and conveniences our Company offers you in recognition of your value to the Pinnacle: The Company currently offers insurance and other benefits to its regular full-time Team Members. Insurance and other benefits offered are governed by the plan or policy applicable to each benefit. The Company reserves the right to amend or cancel insurance and other benefits offered at its discretion. Please contact People Services for information about eligibility and other terms and conditions.B. 401(K) PLAN The Company offers a voluntary pretax salary reduction plan in which regular full-time Team Members (minimum of 20 hours per week), who are 21 years of age or older, may elect to participate beginning with the first payroll. Further details about the Plan may be obtained from the People Services department and the Plan document.C. HEALTH INSURANCE Pinnacle offers health insurance coverage for full-time Team Members. Details of the plan are found in the Summary Plan Description and Plan Document located in the Paycom Team Member Self Service (ESS). The Company will pay a portion of the monthly premium for full-time Team Members. Additionally, full-time Team Members are eligible to enroll in the plan or make coverage changes annually during open enrollment each June, for a July first (1st) start date. Detailed plan information and Team Member and employer contributions will be provided each June. Covered Team Members who terminate employment with Pinnacle are eligible for continuation of coverage for up to 18 months through COBRA.© 2018 Pinnacle Automotive. Team Member Handbook 45
D. WORKERS COMPENSATION In the case of an on the job injury, Team Members are covered under the Worker’s Compensation Act and will receive pay and medical coverage in accordance with state law. On the job injuries incurred at Pinnacle no matter how minor, must be reported immediately to your supervisor. Failure to report an injury in a timely manner may jeopardize both treatment and the availability of insurance coverage (see Reporting of Accidents below).E. UNEMPLOYMENT COMPENSATION Our Company contributes under the State Unemployment Compensation Act to insurance funds that may provide you with income in the event you become laid off and unemployed through no fault of your own. As a Team Member, you pay no part of the fund that provides you with this benefit. The entire cost for this protection is paid by the Company.F. SOCIAL SECURITY Social Security is a benefit to all Team Members with responsibility of contributions shared equally by the Company and you as a Team Member. Your share is deducted from your wages each pay period. The Company makes an equal contribution and sends the total (employer and Team Member) payment to the District Director of Internal Revenue Service. Social Security payments made by the Company are not subject to Federal or State Income Tax by the Team Member.G. CONTINUATION AND CONVERSION OF HEALTH INSURANCE BENEFITS (COBRA) In accordance with applicable law, if your employment with us is terminated, or if you experience a reduction in hours of employment, and under certain other conditions, then you, your spouse and/or dependent children may be eligible to either continue your present level of health insurance coverage (even if you would otherwise lose coverage) under the Company’s Group Health Insurance Plan, at your own cost, for a period of up to eighteen (18) months (or in some situations up to 36 months), or you may be able to convert your group coverage to individual coverage. Additional details regarding COBRA and insurance conversion rights of Team Members, their spouses and children are set forth in our Group Health Insurance Plan’s Summary Plan Description and/or in other notices distributed directly to covered Team Members and their spouses. If you are covered by the Plan and you have not received notice of your insurance conversion rights, you should contact the Plan administrator immediately. If you are eligible for Medicare, you may not receive full coverage under the Group Health Insurance Plan even if you elect COBRA coverage. If you are eligible for Medicare, the Group Health Insurance Plan may provide only supplemental coverage even if you are paying the full COBRA premium and even if you have not been informed of this by the Group Health Insurance Plan. You should speak with a health insurance representative to ensure you understand the nature and extent of coverage which will be provided.© 2018 Pinnacle Automotive. Team Member Handbook 46
H. LOANS TO TEAM MEMBERS It is the Company’s practice to discourage and to not grant any advancements of pay not yet earned to Team Members. This practice may be waived in cases of emergency for Team Members with the written approval of the CEO, President, CFO or CPO. Pay advancements shall be based only on extreme financial hardship. Team Members will be limited to one pay advancement per year. Only one such advance may be in effect at any time. Pay advances are not to exceed one week’s net pay with repayment terms not to exceed three months. (State laws regarding deductions for pay advances vary from state to state. Federal law prohibits deductions that will cause a Team Member’s pay to be reduced below the applicable state or federal minimum wage). Repayment will be made by way of payroll deductions and interest will be charged from the day of the advance. All pay advancements must be in writing and signed by the Team Member, using the Company’s approved Deduction Authorization form, which clearly establishes repayment terms and is available from the People Services Department. Loans between Team Members can be construed to create a conflict of interest. No Team Member shall directly or indirectly borrow money from or loan money to any subordinate Team Member with the Company.© 2018 Pinnacle Automotive. Team Member Handbook 47
VII. WORKPLACE SAFETYA. SMOKE-FREE WORKPLACE It is the policy of Pinnacle Automotive to prohibit smoking of tobacco and electronic smoking devices on all Company premises to provide and maintain a safe and healthy work environment for all Team Members. The following applies to both tobacco and electronic smoking devices, including vaping. Pinnacle only allows smoking during break periods. Breaks for smoking are only permitted once every five (5) hours, and never within the view of customers or clients. You must be at least 100 feet from any building while smoking. Smoking is not permitted in or around Company or customer vehicles. These rules are in place to protect the Team Members and customers of Pinnacle. This policy will be strictly enforced and is subject to change at the Company’s discretion. Any Team Member who fails to follow the rules in this policy is subject to disciplinary actions, up to and including termination.B. REPORTING OF ACCIDENTS All job-related accidents or injuries must be reported immediately to your manager. Do not wait until the next day. If you cannot find a manager the same day, call the office at 813-287-2266. Failure to report or call-in an accident or injury before leaving work constitutes grounds for termination. Safety Guidelines Team Member safety is top priority at Pinnacle. To guarantee your safety, and the safety of your co-workers, please observe the following rules: 1. Team Members may operate only the equipment for which they have received full instruction and certification as to safe and proper function 2. All injuries or accidents, regardless of how minor, must immediately be reported to a supervisor 3. All warning signs, tags, and symbols must be obeyed 4. Report unsafe conditions to your supervisor 5. If in doubt about any safety procedure or condition, contact your supervisor 6. Familiarize yourself with the location of first aid kits© 2018 Pinnacle Automotive. Team Member Handbook 48
C. GUIDELINES FOR OPERATING VEHICLES Team Members who have received driver’s evaluations and who have a proper license in good standing may operate designated vehicles, other than vehicles marked as high value (red tagged). This includes all dealership vehicles and customer vehicles. A valid driver’s license is required for all positions. All vehicles are to be driven courteously and safely. Any accident involving a vehicle, no matter how minor, is to be reported immediately. In the event of an accident, drivers are required to contact their Supervisor from the accident site. Team Members should not discuss events surrounding an accident before contacting a Company official. Team Members involved in an accident involving a vehicle will be subject to drug screening testing (see Drug Testing policy).D. EMERGENCY WEATHER The safety of the Team Members should be the primary concern in any emergency weather situation. If law enforcement officials make the decision to close a road or highway or strongly advise against travel in the coming hours, the location manager should immediately make every accommodation to being allowing Team Members to leave the location or inform them not to report to work. No Team Member will be required to remain at work against their will if weather conditions could make travel dangerous. Affected locations should: • Proactively anticipate emergency weather conditions when predicted and make staffing and schedule changes to prepare for the effect on business activity. • Keep an up to date Team Member list containing each Team Member’s name and contact numbers and any additional location emergency numbers. • The manager will notify Team Members of the location’s status throughout the emergency weather situation. • Team Members should be made aware of schedule changes as soon as the schedules are finalized to avoid Team Members unnecessarily reporting to work. • Regular attendance policies are still in effect and Team Members are responsible to remain in contact with the location during the emergency weather situation. • Team Members are required to inform their supervisors concerning their plans to leave the area and their expected return date.© 2018 Pinnacle Automotive. Team Member Handbook 49
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