Contingent Employee Handbook

2009 INNOVATIVE EMPLOYEE SOLUTIONS: ALL RIGHTS RESERVED. NO PART OF THIS DOCUMENT MAY BE REPRODUCED IN ANY FORM OR BY ANY MEANS WITHOUT WRITTEN PERMISSION FROM INNOVATIVE EMPLOYEE SOLUTIONS.

Employee Handbook
Congratulations on joining Innovative Employee Solutions!
We are excited to have you on board and look forward to working together. As a valued member of our team, you have access to a variety of benefits and services designed to help our client attract and maintain a highly skilled and talented contingent workforce. Our client has partnered with us to provide you the added value of competitive benefits. Innovative Employee Solutions (IES) is a Professional Employer of Record specializing in payroll, benefits, and human resources administration for the contingent workforce. Together we aim to provide you with accurate and efficient payroll processing, easy time tracking, access to a variety of benefits, and other valuable services. This handbook contains detailed information regarding IES policies. Please read the enclosed information carefully and retain a copy for your records. If you have any questions or need assistance, please contact Innovative Employee Solutions at the number below and your representative will be happy to assist you. Welcome aboard!

About Innovative Employee Solutions

Theodore (Ted) K. Cobb originally established Placements Inc. in Denver, Colorado in the mid 1950s as a permanent placement service. Later the company name was changed to T.K. Cobb Associates, Inc. and then TOPS in Denver as it evolved into a temporary staffing agency. Karla Hertzog (his daughter) relocated to San Diego to start a new branch in 1974 that became TOPS Staffing Services. From 1974 to 1998, the company grew to approximately $50M in annual revenues, developing niches in clerical, technical, light industrial, programmers and payrolling. In 1985, with the sale of the Denver operation, Karla became President of TOPS Staffing Services, and ultimately sole owner in 1991. TOPS Staffing corporate headquarters remained in San Diego, CA. In March of 1998, Karla sold the assets of TOPS Staffing Services, excluding the Payrolling Division, to SOS Staffing Services, based in Salt Lake City, Utah. The payrolling business she retained was named TOPS Payrolling Services. Karla retired from the company and Elizabeth Rice, Don Klika and Chris Jahn managed the operations. June of 1999, Payrolling Services changed its name to Innovative Employee Solutions. It remains to this day a Colorado corporation, 100% woman-owned, headquartered in San Diego, CA. June 4, 2004, Karla Hertzog, CEO and Chairman, promoted Elizabeth M. Rice, who was Executive Vice President and a 22 year employee, to President of Innovative Employee Solutions, Inc. Elizabeth assumed official responsibility for the companys day-to-day operations, major policy and financial decisions and the growth of the company. Though not involved in day-to-day operations, Karla is the key advisor in policy and financial matters. In 2006, Kara Hertzog was the third generation in the family to join Innovative Employee Solutions. Kara is currently the National Business Development Manager. March 9, 2011, Karla Hertzog, Chairman, named Elizabeth M. Rice to CEO/President of Innovative Employee Solutions, Inc. The roles and responsibilities of Karla and Elizabeth were not affected by this change. October 1, 2011, Gaby Mergenthal, the Executive Vice President of Sales & Marketing and an 8 year employee of Innovative Employee Solutions, was promoted to the position of President by Elizabeth M. Rice, CEO. Gaby assumed responsibility for the day-to-day operations of IES.

Employment Relationship
As a contingent employee working for our client, you are an employee of IES and of the client. IESs responsibility in this employment relationship is managing the payroll, benefits administration, records management and workers compensation. IES does not provide day-to-day supervision of your work and therefore relies on the client to train, supervise, counsel and inform you of their internal policies and procedures. Please review how this relationship affects you in the following areas: 1. If you are injured on the job, unless it is an emergency, call the IES Human Resources department prior to treatment. Refer to Injury on the Job in this handbook. 2. If you need verification of employment, refer the inquiry to the IES Human Resources department. 3. If you have questions regarding your paycheck, please contact the IES Payroll department. 4. If your assignment ends and you are eligible for unemployment, identify IES as your employer to your State Unemployment Department.

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IES/Client/Employee Responsibilities
To clarify the employment relationship that exists between our contingent employees, our client (the company that supervises) and Innovative Employee Solutions, please refer to the chart provided below.

Employment Relationship

IES Timecards to IES

Client

Employee

Request for time off

Day-to-day direction & supervision Job training

Safety

Injury on the Job (Workers Compensation) Issuing paycheck/Direct Deposit

Annual W-2s

Verifications of employment/income inquiries Drug screening (if applicable)

Background Investigations (if applicable) Benefits Administration

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General Policies
Equal Opportunity Policy
The Company provides equal employment opportunities (EEO) to all employees and applicants for employment without regard to race, color, religion, gender, sexual orientation, national origin, age, disability, marital status, amnesty, or status as a covered veterans in accordance with applicable federal, state and local laws. The Company complies with applicable state and local laws governing non-discrimination in employment in every location in which the company has facilities. This policy applies to all terms and conditions of employment, including, but not limited to, hiring, placement, promotion, termination, layoff, recall, transfer, leaves of absence, compensation, and training.

At Will Employment
IES is an at-will employer and operates under the provision that employees have the right to resign their position at any time, with or without notice and with or without cause. IES and our clients have similar rights to terminate the employment relationship at any time, with or without notice and with or without cause.

Harassment Policy
IES is committed to providing a work environment that enhances productivity and is free of discrimination in the application of any assignment, policy, practice or regulation. IES does not tolerate verbal or physical conduct by any employee or representative of IES that harasses, disrupts, or interferes with an individuals assignment, work performance or which creates an intimidating or hostile environment. While all forms of harassment are prohibited, it is IESs policy to emphasize that sexual harassment, in any form is prohibited. Any employee or representative of IES who engages in sexual harassment is subject to discipline up to and including termination. Such conduct includes, but is not limited to the following: 1. 2. 3. 4. 5. Sexual flirtations, touching, advances, or propositions; Verbal abuse of a sexual nature; Graphic or suggestive comments about an individuals dress or body; Sexual degrading words to describe an individual; The display in the workplace of sexually suggestive objects or pictures.

Harassment includes any of the above conduct, either verbal or physical, where submission to the conduct is a term or condition of employment, submission to or rejection of the conduct is used as a basis for employmentrelated decisions, or such conduct interferes with an individuals work performance. Harassment does not refer to conduct of a socially acceptable nature. It refers to behavior that is not welcome, that is personally offensive, that lowers morale and that therefore, interferes with work effectiveness. Responsibilities: If you believe that you have been subject to any form of harassment, it is important that you report the harassment to an official at the worksite and to your IES contact as soon as possible. Only those members of IES staff having a need to know shall have access to information regarding any allegation of harassment.

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After an investigation, a decision will be made by the appropriate management regarding the resolution of the case. You will receive information about any actions that result. If it cannot be determined that harassment has taken place, you will be informed that the evidence was inconclusive. No employee will suffer reprisals from reporting any incidents of unlawful harassment or making any such complaint. Any incidents of further harassment or retaliation should be reported immediately. Although IES is not present at the workplace, we stand by our moral, ethical and legal obligation to provide each of our employees a work environment free from harassment or other risks. Anytime you have a concern, question or change regarding your assignment, call us immediately.

Family and Medical Leave Act Policy

IES fully complies with the Family and Medical Leave Act of 1993 (FMLA). An eligible employee may take up to 12 workweeks of unpaid leave in a 12-month period for one of the following reasons: 1. The birth or placement for adoption or foster care of a child 2. To care for a family member (spouse, child, or parent) with a serious health condition 3. Because of your own serious health condition that renders you unable to perform your job functions 4. Because of any qualified exigency arising out of the fact that a spouse, son, daughter, or parent is on active duty, or has been notified of an impending call to active duty status, in support of a contingency operation. In addition, an eligible employee may take up to 26 work weeks of unpaid leave in a 12-month period to care for a spouse, son, daughter or parent who is a covered service member and is recovering from a serious illness or injury sustained in the line of duty on active duty. To be eligible for FMLA benefits, you must meet the following requirements: 1. 2. 3. Worked for IES for at least 12 months Worked at least 1,250 hours over the 12 months preceding commencement of the leave Work for a client of IES which has at least 50 employees in a 75 mile radius from the employees worksite.

Employees seeking to take FMLA leave must, if possible, provide 30 days written notice to your worksite supervisor and to IES Human Resources. IES will coordinate the leave with you and the client company. Please contact IES Human Resources for a copy of the full FMLA policy or if you have questions.

Wage Payment Policies

Pay Schedule
IES has weekly, bi-weekly, semi-monthly and monthly payrolls. Employees will be informed of their schedule at time of hire. IES payday is on Friday. If a scheduled payday falls on a company observed holiday, employees will be paid on the following weekday. All required deductions such as federal, state and local taxes, and all authorized voluntary deductions, will be withheld automatically from employee paychecks. Employees should review their pay stubs for errors. Please report any mistakes to the IES payroll department.

Direct Deposit
IES offers direct deposit to all contingent employees. To arrange for direct deposit, complete the Authorization for Direct Deposit found in the employee section of our website: www.innovativeemployeesolutions.com. It takes approximately 3 weeks to set up direct deposit, once weve received your authorization form. In the meantime, your paycheck will be mailed to you.
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Overtime
IES conforms to Federal overtime laws requiring that hourly and salaried non-exempt employees get paid overtime for hours worked over 40 hours in a workweek (Monday through Sunday). Exceptions: Alaska, Nevada, Puerto Rico and California pay overtime after working eight hours a day. Colorado pays overtime after working twelve hours a day. California pays double-time for each hour worked over twelve hours in the same workday.

Job Classifications
For the purposes of salary administration and eligibility for overtime payments and employee benefits, this handbook applies to our contingent employees who have been recruited and made an offer to work at a client company, with IES being the employer-of-record for purposes of payroll and benefits administration, workers compensation, and records management. Employees must notify your supervisor and an IES Human Resources Representative in writing if you believe you are improperly classified in an exempt position.

Jury Duty
Unless required by state law, IES does not provide for any jury duty pay unless authorized and approved by the client company.

Substance Abuse Policy

Substance abuse has an adverse impact on an employees work, personal, and family lives, as well as on the ability of IES to fulfill its mission to provide the highest quality services to our clients. It can cause poor performance, decrease productivity, and create safety hazards. Consequently, IES is committed to establishing and maintaining an alcohol and drug-free workplace. Illegal Drugs The use, distribution, dispensation, sale, offering for sale, possession, purchase, manufacture or trading of illegal drugs on IES premises, client premises, or in any other work-related environment is strictly prohibited. The prohibition of illegal drug activity includes occasions when an employee is representing IES or one of our client companies at events and meetings beyond normal work hours. Alcohol Employees are not permitted to consume alcohol while on IES premises, client premises, or while conducting client company business. This does not include an official day or evening functions at which alcohol may be served, as long as use does not prevent employees from performing their jobs satisfactorily or pose any threat to the safety or welfare of the employee or others. Prescription and OTC Drugs Employees are prohibited from the misuse or abuse of prescription and over-the-counter (OTC) drugs. Policy Violations Employees who violate this policy are subject to disciplinary action, up to and including termination.

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Driving Policy
If driving a vehicle, whether employee owned, or client owned, and represents more than 15% of the employees time/duties, the following conditions apply: 1) The employee must provide IES with a driving record. No more than 2 moving violations and 1 accident in the prior 3 years are allowed. No DUIs in the prior 5 years. 2) The employee must provide IES with a copy of their insurance information. 3) The client must complete the PSR and indicate if the employee will be driving their own personal vehicle, a company owned vehicle, or a rental. 4) If the employee will be driving a personal vehicle, they must add IES as an additional insured on their policy. If driving a hired auto, the client or employee must purchase insurance directly from the car rental company at the time of renting the automobile.

Workplace Injury Policy

As an IES employee, you are required to report any work-related injury to us. If you have an accident on the job, you or your supervisor should immediately contact Human Resources at 858-715-5100 before seeking medical attention. IES Human Resources will direct you to the nearest approved medical facility for treatment. If your emergency requires immediate emergency attention, and/or occurs after regular business hours, please contact IES Human Resources the next business day after you have been treated.

VOLUNTARY BENEFITS
Cigna Starbridge Select, Voluntary Health Plan - Limited Benefits
Starbridge Select is a healthcare assistance plan that provides you and your family with help for everyday medical expenses such as doctor visits, trips to the emergency room, help with prescription drugs, and more. You are eligible to enroll if you work 20 hours per week and are assigned on at least a 3-month assignment. You must enroll within 30 days of your hire date, or annually during open enrollment in December.

Paid Family Leave CA Residents Only

As an employer in the State of California, IES is required through payroll deductions to participate in the Paid Family Leave program. California employees are eligible for up to 6 weeks of paid family leave during any 12month period through a self-insured disability insurance program. Paid family leave is available to provide care for parents, children, spouses and domestic partners or to bond with a new child. You should review the summary plan document located in the employee center of our website within your first week of employment.

Short Term Disability CA Residents Only

As an employer in the State of California, IES is required through payroll deductions to participate in a short-term disability plan for all California employees. Since 1980, IES has participated in a state approved third party administrator plan through VPA. As an employee, the benefits of participating in the VPA plan include higher wage benefits to you, without the hassles and red tape of reporting through the State of California.

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Short Term Disability

At 3 months of employment, you will become eligible to purchase short-term disability insurance through your payroll deduction. Short-term disability covers you when you cannot work due to an unexpected accident or illness. The plan pays benefits equal to 60% (40% in CA) of your regular pay, up to $3,000 per month.

Universal Life Insurance

At 3 months of employment, you can purchase a 10-year Term Life insurance, Whole Life or a combination of both to provide the level of coverage you need. You can apply for coverage up to $100,000 ($50,000 for applicants over age 50). The health questions on your application for coverage do not require a medical exam or blood test. Optional riders are also available on spouse and children. Because this is an individual life insurance policy, it can be yours to keep even if you change jobs. For convenience, premiums can be paid through a payroll deduction.

Accident Insurance
At 3 months of employment, you can purchase an accident insurance plan designed to help cover the expenses associated with an accidental injury. It pays you directly, regardless of any other insurance you may have. It is not intended to replace the need for comprehensive medical coverage; instead, it pays you to help offset out-ofpocket expenses associated with deductibles, co-pays, loss of income, and need to pay household bills. For convenience, premiums can be paid through a payroll deduction.

Personal Cancer Indemnity Plan

A cancer indemnity plan is designed to help cover the expenses of cancer treatment that may not be covered by major medical insurance. The plan pays you directly, regardless of any other insurance you may have to help offset out-of-pocket expenses including travel, food, lodging, household help, and more. This benefit is available after 3 months of employment.

401(k) Plan
All employees are eligible after 6 months of employment to participate in the IES 401(k) plan. Dates of enrollment are January 1, April 1, July 1 and October 1. Money is invested in a professionally managed mutual fund, The Hartford. The plan year is based on the calendar year. Open enrollment is semi-annually, January 1 and July 1. You are credited with years of service under the plan for purposes of eligibility to participate (if applicable) and vesting in company contributions (if applicable). The method under which you are credited with years of service under the plan is compensated hours. The Innovative Employee Solutions 401(k) Plan provides that employer contributions may be made. If matching contributions are made, they will be made on behalf of all participants in accordance with the Plan Document guidelines. The amount of contribution shall be a percentage of your salary reduction contributions as determined each year by Innovative. IES contributions will be subject to a vesting schedule. The IES 401(k) Plan provides that you will become invested in the matching contributions, if any, in accordance with the schedule below. In any event, you are always 100% vested in your salary reduction contribution. Vesting Schedule Years of Service Vested Percentage 1 25 2 50 3 75 4 100

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