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Avalon Health Care Group

________________________________________________________________________

Employee Handbook
Avalon Health Care Group
________________________________________________________________________

September 2017
___________________________
This handbook summarizes the rules, regulations, policies and procedures that have been proposed by Avalon Heath Care Group
and adopted by the facility in which you are employed. Neither the handbook nor the policies it outlines create an employment
contract or promise employment for any specific period or that an employee will be treated a certain way under specific
circumstances. The employee handbook is a guideline for employees and managers. The Company expressly reserves the right
to make all employment-related decision on a case-by-case basis in the Company’s sole discretion.

We reserve the right to make changes to the employee handbook with or without cause and with or without notice.
Acknowledgment of Responsibility for Content of
Avalon Health Care Group Employee Handbook

The undersigned employee hereby acknowledges that he/she has received a copy of the Employee Handbook
for Avalon Health Care Group.

The employee further understands and agrees that:

• The handbook summarizes the rules, regulations, policies and procedures that have been proposed by
Avalon Health Care Group and adopted by the facility in which you are employed.
• We reserve the right to make changes to the employee handbook without prior notice.

• The undersigned’s employment relationship with the facility in which the employee is employed and
Avalon Health Care Group and its affiliated entities are “at-will” and that either party to that relationship
may terminate the employment relationship at any time, for any or no reason, and without notice.

Employee Statement

I acknowledge receipt of the Avalon Health Care Group Employee Handbook and understand that I am
responsible to, read and familiarize myself with its contents. I have read and understood all the above statements
and I acknowledge that my employment is an “at-will” employment.

Print Name

Employee Signature Date

Facility Name

Revised 9/2017
Acknowledgment of Responsibility for Content of
Avalon Health Care Group Employee Handbook
(Employees Covered by a Collective Bargaining Agreement)

The undersigned employee hereby acknowledges that he/she has received a copy of the Employee Handbook for
Avalon Health Care Group.

The employee further understands and agrees that:

• The handbook summarizes the rules, regulations, policies and procedures that have been proposed by
Avalon Health Care Group and adopted by the facility in which you are employed.

• The Collective Bargaining Agreement (CBA) controls in the event of a conflict between the provisions of
the handbook and any express provision of the CBA, otherwise bargaining unit employees are subject to
the provisions of the handbook as any other employee.
• We reserve the right to make changes to the employee handbook after notice and the opportunity to
discuss with the Union.

• As an employee, you may be disciplined, up to and including possible termination of employment, for
violations of or failure to follow the rules, regulations, policies and procedures described in the handbook
or otherwise published by the facility in which you are employed or for other misconduct deemed
inappropriate by facility management.

Employee Statement

I acknowledge receipt of the Avalon Health Care Group Employee Handbook and understand that I am responsible
to read and familiarize myself with its contents. I have read, understood and agree to all the above statements.

Print Name

Employee Signature Date

Facility Name

Revised 9/2017
Contents
ACKNOWLEDGMENT OF RESPONSIBILITY FOR CONTENT OF......................................................................................... 2
AVALON HEALTH CARE GROUP EMPLOYEE HANDBOOK .............................................................................................. 2
ACKNOWLEDGMENT OF RESPONSIBILITY FOR CONTENT OF......................................................................................... 3
AVALON HEALTH CARE GROUP EMPLOYEE HANDBOOK (EMPLOYEES COVERED BY A COLLECTIVE BARGAINING AGREEMENT)
............................................................................................................................................................................. 3
WELCOME TO AVALON HEALTH CARE GROUP ...................................................................................................... 4
I. WORKING AT AVALON .......................................................................................................................................... 5
1.1 AT-WILL EMPLOYMENT............................................................................................................................................ 5
1.2 EQUAL EMPLOYMENT OPPORTUNITY ........................................................................................................................ 5
1.3 POLICY AGAINST DISCRIMINATION, HARASSMENT, BULLYING AND WORKPLACE VIOLENCE................................... 5
1.4 ENGLISH-ONLY RULES .................................................................................................................................................... 6
II. PAY - PAYROLL AND PERSONNEL RECORDS ....................................................................................................... 6
2.1 PAY PERIODS............................................................................................................................................................. 6
A. HR/Payroll ...................................................................................................................................................... 6
B. What If I Lose My Paycheck/Pay Card? ............................................................................................................. 6
2.2 ERRORS IN PAY ......................................................................................................................................................... 7
2.3 PERSONNEL RECORDS ............................................................................................................................................... 7
III. STARTING EMPLOYMENT WITH AVALON .......................................................................................................... 7
3.1 JOB DESCRIPTION ...................................................................................................................................................... 7
3.2 EMPLOYMENT CLASSIFICATIONS .............................................................................................................................. 7
A. Full-Time Employees. ...................................................................................................................................... 7
B. Part-Time Employees. ..................................................................................................................................... 7
C. On-Call Employees .......................................................................................................................................... 7
E. Minimum Hiring Age and Hours ........................................................................................................................ 8
F. Concerns over Classification ............................................................................................................................ 8
IV. HOURS OF WORK AND OVERTIME......................................................................................................................... 8
4.1 TIME RECORDS.......................................................................................................................................................... 8
4.2 OVERTIME PAY ......................................................................................................................................................... 8
4.2A CA OVERTIME PAY ................................................................................................................................................ 8
4.3 WORK SCHEDULE...................................................................................................................................................... 9
A. Schedule Posting & Changes ........................................................................................................................... 9
B. Weekends ...................................................................................................................................................... 9
C. Low Census .................................................................................................................................................... 9
4.4 MEAL AND BREAK PERIODS ...................................................................................................................................... 9
A. Rest Breaks .................................................................................................................................................... 9
B. Meal Periods ................................................................................................................................................... 9
C. Nursing Mothers .............................................................................................................................................. 9
4.5 SHOW-UP PAY ........................................................................................................................................................ 10
4.7 SHIFT DIFFERENTIALS ............................................................................................................................................. 10
V. YOUR BENEFITS AT AVALON ................................................................................................................................. 10
5.1 EMPLOYEE BENEFITS .............................................................................................................................................. 10
• Medical, Dental & Vision Plans ................................................................................................................. 10
• Life Insurance and Accidental Death and Dismemberment. ...................................................................... 10
• Health Savings Account (HSA), Flexible Spending (Section 125) Account (FSA). .................................... 10
• Additional Benefits. .................................................................................................................................... 10
• Eligibility/Waiting Period: ......................................................................................................................... 10
5.2 EMPLOYEE SAVINGS PROGRAMS ............................................................................................................................. 10
• 401(k) -- Tax-Deferred and Roth Savings Plans. ....................................................................................... 10
• Eligibility / Waiting Period ........................................................................................................................ 11
5.3 VACATION, SICK LEAVE AND HOLIDAYS ................................................................................................................ 11
5.4 BEREAVEMENT LEAVE ............................................................................................................................................ 11
5.5 MILITARY LEAVE .................................................................................................................................................... 11
5.6 FAMILY AND MEDICAL LEAVE ACT (FMLA) LEAVE .............................................................................................. 11

Avalon Health Care Group - Revision 9/2017 Page |0


5.7 LEAVES PROVIDED UNDER STATE LAW .................................................................................................................. 11
5.8 PERSONAL LEAVE OF ABSENCE............................................................................................................................... 11
5.9 ADMINISTRATIVE LEAVE ........................................................................................................................................ 12
5.10 VICTIMS OF DOMESTIC VIOLENCE, SEXUAL ASSAULT OR STALKING .................................................................... 12
5.11 JURY DUTY ........................................................................................................................................................... 12
5.12 WORKERS COMPENSATION BENEFITS ................................................................................................................... 12
5.13 PREGNANCY AND CHILDBIRTH-RELATED ACCOMMODATIONS ............................................................................. 13
5.14 EDUCATIONAL ASSISTANCE AND TUITION REIMBURSEMENT................................................................................ 13
A. Degree, License, and Certification Programs. ................................................................................................... 13
B. Seminars ...................................................................................................................................................... 13
C. General .......................................................................................................................................................... 14
VI. HUMAN RESOURCE POLICIES & WORK RULES ............................................................................................... 14
6.1 SAFETY ................................................................................................................................................................... 14
6.2 ACCIDENTS AND EMERGENCIES .............................................................................................................................. 14
6.3 DRUG TESTING ........................................................................................................................................................ 14
6.4 COMPANY SEARCHES .............................................................................................................................................. 14
6.5 ENTERING AND LEAVING THE PREMISES ................................................................................................................. 14
6.6 SMOKING................................................................................................................................................................. 14
6.7 EXPENSE REIMBURSEMENT ..................................................................................................................................... 15
6.8 JOB POSTINGS ......................................................................................................................................................... 15
6.9 WORK RULES .......................................................................................................................................................... 15
A. Conflicts of Interest ........................................................................................................................................ 15
B. Confidentiality ............................................................................................................................................... 16
C. Attendance ................................................................................................................................................... 16
D. No Call / No Show ......................................................................................................................................... 17
E. Calling in During Holidays .............................................................................................................................. 17
F. Cell Phone Use ............................................................................................................................................. 17
G. Solicitation and Distribution Activities ............................................................................................................... 17
H. Dress Code and Personal Appearance ............................................................................................................ 17
I. Use of Company Equipment ........................................................................................................................... 18
6.10 STANDARDS OF CONDUCT ..................................................................................................................................... 19
6.11 CORPORATE COMPLIANCE .................................................................................................................................... 20
VII. RESIGNATION, TERMINATION & POST-EMPLOYMENT .............................................................................. 20
7.1 NOTICE OF RESIGNATION ........................................................................................................................................ 20
7.2 COBRA BENEFITS .................................................................................................................................................. 20
7.3 RETURN OF COMPANY PROPERTY ........................................................................................................................... 20
7.4 REHIRING FORMER EMPLOYEES .............................................................................................................................. 20
A. Reinstatement of Seniority ............................................................................................................................. 20
7.5 POST-EMPLOYMENT INQUIRIES ............................................................................................................................... 21
VIII. MISCELLANEOUS POLICIES ................................................................................................................................ 21
8.1 DRIVER’S LICENSE AND DRIVING RECORD ............................................................................................................. 21
8.2 EMPLOYMENT OF RELATIVES AND NEPOTISM ......................................................................................................... 21
A. Hiring Family Members .................................................................................................................................. 21
B. Continued Employment of Family Members ..................................................................................................... 21
AVALON - CONTACT INFORMATION ........................................................................................................................... 1
STATE AND LOCAL SUPPLEMENT TO THE HANDBOOK ........................................................................................ 1
ARIZONA ............................................................................................................................................................................... 1
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 1
VACATION ...................................................................................................................................................................... 1
SICK LEAVE .................................................................................................................................................................... 2
PAID HOLIDAYS .............................................................................................................................................................. 3
OVERTIME PAY ............................................................................................................................................................... 3
MEAL AND BREAK PERIODS ............................................................................................................................................ 3
CALIFORNIA ......................................................................................................................................................................... 1
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 1
VACATION ...................................................................................................................................................................... 1

Avalon Health Care Group - Revision 9/2017 Page |1


SICK LEAVE .................................................................................................................................................................... 1
PAID HOLIDAYS .............................................................................................................................................................. 1
CA OVERTIME PAY ......................................................................................................................................................... 1
SHOW-UP PAY ................................................................................................................................................................ 1
MEAL AND BREAK PERIODS ............................................................................................................................................ 1
CALIFORNIA PREGNANCY DISABILITY LEAVE ................................................................................................................ 1
PAID FAMILY LEAVE....................................................................................................................................................... 1
CONCURRENT LEAVE ...................................................................................................................................................... 1
HAWAII .................................................................................................................................................................................. 2
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 2
VACATION ...................................................................................................................................................................... 2
SICK LEAVE .................................................................................................................................................................... 2
PAID HOLIDAYS .............................................................................................................................................................. 2
OVERTIME PAY ............................................................................................................................................................... 2
MEAL AND BREAK PERIODS ............................................................................................................................................ 2
HAWAII FAMILY LEAVE .................................................................................................................................................. 2
PREGNANCY LEAVE ........................................................................................................................................................ 2
LEAVE FOR ORGAN, BONE MARROW OR PERIPHERAL BLOOD STEM CELL DONATION ................................................... 2
NEVADA ................................................................................................................................................................................. 2
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 2
VACATION ...................................................................................................................................................................... 2
SICK LEAVE .................................................................................................................................................................... 3
PAID HOLIDAYS .............................................................................................................................................................. 4
OVERTIME PAY ............................................................................................................................................................... 4
MEAL AND BREAK PERIODS ............................................................................................................................................ 4
NEVADA DOMESTIC VIOLENCE LEAVE LAW................................................................................................................... 4
OREGON ................................................................................................................................................................................. 1
PAID TIME OFF (PTO)..................................................................................................................................................... 1
OREGON SICK TIME ........................................................................................................................................................ 1
PAID HOLIDAYS .............................................................................................................................................................. 1
OVERTIME PAY ............................................................................................................................................................... 1
MEAL AND BREAK PERIODS ............................................................................................................................................ 1
BEREAVEMENT LEAVE .................................................................................................................................................... 1
FAMILY AND MEDICAL LEAVE ACT (FMLA) LEAVE/OFLA .......................................................................................... 1
UTAH - FACILITIES............................................................................................................................................................. 2
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 2
VACATION ...................................................................................................................................................................... 2
SICK LEAVE .................................................................................................................................................................... 3
PAID HOLIDAYS .............................................................................................................................................................. 4
OVERTIME PAY ............................................................................................................................................................... 4
MEAL AND BREAK PERIODS ............................................................................................................................................ 4
UTAH – SUPPORT SERVICE CENTER ............................................................................................................................ 2
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 2
VACATION ...................................................................................................................................................................... 2
SICK LEAVE .................................................................................................................................................................... 3
PAID HOLIDAYS .............................................................................................................................................................. 4
OVERTIME PAY ............................................................................................................................................................... 4
MEAL AND BREAK PERIODS ............................................................................................................................................ 4
WASHINGTON ...................................................................................................................................................................... 2
VACATION, SICK LEAVE & HOLIDAYS ............................................................................................................................ 2
VACATION ...................................................................................................................................................................... 2
SICK LEAVE .................................................................................................................................................................... 3
WASHINGTON SICK TIME ...................................................................................................................................................... 4
PAID HOLIDAYS .............................................................................................................................................................. 5
OVERTIME PAY ............................................................................................................................................................... 5
MEAL AND BREAK PERIODS ............................................................................................................................................ 5

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FAMILY CARE ACT (“FCA”) LEAVE ............................................................................................................................... 5
WASHINGTON FAMILY LEAVE ACT (“WFLA”) .............................................................................................................. 5
PREGNANCY DISABILITY LEAVE (“PDL”) ...................................................................................................................... 5

Avalon Health Care Group - Revision 9/2017 Page |3


Welcome to Avalon Health Care Group

Who is Avalon?
More than 25 years ago, the founders of Avalon Health Care saw aging family and friends without the resources and facilities
to meet their changing health and circumstances. They imagined a care center that not only maintained a great quality of life
for all seniors, but one where love and devotion were tangible.

Today Avalon is a leader in providing quality care both through our inpatient services and ancillary hospice, rehabilitation
therapy, psychiatric and home and community based services. Our single facility founded on principles of nurturing and
respect has blossomed into a thriving network with facilities in seven states.

What is Avalon all about?


Avalon has a basic belief in the importance of life. From this belief, we created principles and values that are the foundation
upon which all Avalon facilities operate. They are:

Foundational Belief:
We embrace a reverence for life and a heart for healing.
Founding Principles:
The Avalon Health Care Group was created to better serve seniors and their families. Our business puts people first and was
founded on principles that recognize the worth of every individual. Our success depends upon our ability to create and
maintain a nurturing environment where individuality is promoted and dignity is preserved.

Core Values
At the foundation of any successful organization are a set of core values. These core values serve as the key principles which
the organization and its members follow. At Avalon, these values are:

• Integrity: We are always honest and professional.


• Trust: We can count on each other.
• Excellence: We do our best at all times and look for ways to do even better.
• Accountability: We accept responsibility for our actions, attitudes and mistakes.
• Mutual Respect: We treat each other the way we want to be treated.

These core values are the basis of how we do business. They are the framework for how we act day-to-day.

Welcome to Avalon!

Avalon Health Care Group - Revision 9/2017 Page |4


I. Working at Avalon
1.1 At-Will Employment
All employees at Avalon Health Care Group Facilities (“Avalon” or “the Company”) who
are not covered by a written agreement specifically providing otherwise are employees-
at-will. Employment-at-will means that you as an employee may quit your job with the
Company at any time for any or no reason just as the Company may discharge you at any
time for any or no reason. An employee’s at-will employment status may not be altered by
any oral or written statement or promise by anyone, except for a written agreement signed
by Avalon’s President/CEO or its Senior Vice President of Human Resources.
This handbook is for general guidance only. The policies and procedures expressed in
this handbook, as well as those in any other personnel materials that may be issued from
time to time, do not create a binding contract or any other obligation or liability on the
Company. Furthermore, any written material distributed to employees pursuant to state
or federal law does not impose any contractual liability on the Company. The Company
reserves the right to change its policies and procedures at any time for any reason without
advance notice. Where the provisions of this handbook conflict with those of a collective
bargaining agreement (“CBA”) between the Company and a duly authorized Union,
certified as the exclusive bargaining representative of certain Avalon employees, the
provisions of the CBA shall control, otherwise, the guidelines described in the handbook
shall apply to all employees.

1.2 Equal Employment Opportunity


The Company supports equal employment opportunity for all applicants and employees in compliance with state and federal laws. It does not
discriminate against employees or applicants for employment on any prohibited basis, including race, color, sex, sexual orientation, gender identity,
pregnancy, childbirth or pregnancy-related conditions, age, religion, national origin, disability, military or veteran status or any other protected category.
If you believe that you or any other employee has been subjected to discriminatory treatment, you should contact your Supervisor, Department Head,
Administrator or the Human Resources Business Partner assigned to your region/facility.

We are also committed to providing reasonable accommodation to qualified employees with disabilities to enable them to perform the essential
functions of their jobs. It is our policy that we follow all Federal and State laws and regulations pertaining to employment of qualified individuals with
disabilities. If you believe you need a reasonable accommodation of a disability to enable you to perform your job duties, or if you wish to request an
accommodation for any other reason (i.e. religious beliefs) notify your supervisor, department head, Administrator or the Human Resource Business
Partner assigned to the region/facility so that we may discuss potential accommodations that will work for both you and the Company.

1.3 Policy against Discrimination, Harassment, Bullying and Workplace Violence


The Company wants to provide its employees with a workplace free of tensions involving matters that are not related to the services it offers. We will
not tolerate discrimination or harassment in the workplace because of race, color, sex, sexual orientation, gender identity, pregnancy, childbirth or
pregnancy-related conditions, age, religion, national origin, disability, military or veteran status, or any other any other category protected under state
or federal law.

It is the policy and practice of the Company that all employees have a right to work in an environment free from sexual harassment. Sexual harassment is
a form of discrimination based upon an individual’s sex and is violation of federal law and violates state law. Harassment based upon an individual’s age,
religion, national origin, disability or any other protected status is also a violation of federal and state law. The Company will not tolerate or permit unlawful
harassment of its employees in any form, and such conduct may result in disciplinary action up to and including termination. If you believe that you have
been subject to any such discrimination or harassment, notify your supervisor, department head, Administrator and/or the Human Resources Business
Partner assigned to your facility/region.

A. Sexual Harassment may take various forms and may be verbal, physical or visual. Sexual harassment may include repeated, unwelcome sexual
flirtations, advances or propositions, continual or repeated verbal abuse of a sexual nature, graphic verbal or written commentaries about individuals or
individuals' bodies, degrading words or names, sexually suggestive displays, e-mails, text messages, pictures or objects in the workplace. A manager's,
supervisor's, or co-worker's threat or insinuation, either explicitly or implicitly, that an employee's refusal to submit to sexual advances will adversely
affect the employee's work environment or conditions of employment may also be sexual harassment, as would a promise of favorable treatment in

Avalon Health Care Group - Revision 9/2017 Page |5


exchange for submitting to such advances. While these examples do not provide a complete list of what may be deemed to be sexual harassment
under the law, we hope that any harassment problems will be avoided, if we act professionally and treat each other with respect.

B. Harassment based upon other protected status may similarly take various forms such as epithets, slurs, or negative stereotyping. This includes
words that the other person could reasonably perceive as vulgar, abusive, demeaning or insulting. The primary difference being that, instead of
conduct or communication that is sexual in nature, other forms of unlawful harassment generally relate to a characteristic of the victim’s protected class.

C. Indirect or direct threats of work place violence, bullying, any other related conduct, or suspicious individuals or activities should be reported immediately.
Employees should inform management of any protective or restraining order obtained by the employee that lists the workplace as a protected area.
Any employees found to be responsible for threats of or actual violence, bullying or any other conduct that is in violation will be subject to disciplinary
action up to and including termination of employment.

The Company will not permit any such conduct that creates an intimidating, hostile or offensive work environment. If you believe that you have been
victim of sexual or other unlawful harassment, bullying, threats or work place violence, notify your supervisor, department head, Administrator and/or
the Human Resources Business Partner assigned to your facility/region.

Any employee who has knowledge of any incident of harassment prohibited by this policy or of an employee’s claim that such an incident has occurred
(whether the claim is made verbally or in writing) is required to report such information to the supervisor, department head, Administrator and/or the
Human Resources Business Partner assigned to the facility/region. Any employee who makes such a report in good faith will not be adversely affected.
The complaint will be properly and promptly investigated, and any action that is necessary and appropriate to ensure the workplace is free of unlawful
discrimination and harassment will be taken. Once the investigation has concluded, a follow up with the complaining employee will occur to advise
him/her of our conclusions, the remedial actions taken and to remind the employee of our prohibition against retaliation.

1.4 English-Only Rules


An English-only rule will be allowed only a) for communications with residents, residents’ families, coworkers or supervisors who only speak English;
b) in emergencies or to promote safety; c) for cooperative work assignments to promote efficiency; and d) to enable a supervisor who only speaks
English to monitor the performance of an employee whose job duties require communication with coworkers or residents or their families if safety
and/or effective operations require employees to speak English. No general policy will be approved that bans employees from speaking a language
other than English during their break, lunch or other non-work time when not in resident areas. If you believe you are being subjected to an English-
Only rule, policy or direction that is overbroad, contact the Human Resources Business Partner for your region and he/she will investigate the situation
promptly and will discuss his/her findings with you.

II. Pay - Payroll and Personnel Records

2.1 Pay Periods


Avalon pays employees every two weeks (bi-weekly). The work week begins with the first shift starting on Wednesday and ends the following Tuesday
night at the end of your scheduled shift (which may be Wednesday morning for employees scheduled on the night shift). If the normal pay day falls on
a federal reserve banking holiday pay checks will be issued one workday before the regularly scheduled date.

A. HR/Payroll
Employees have two payroll options. You can complete a Direct Deposit Form and have your wages deposited directly into a bank/credit union
account of your choice; or you can use a pay card that will be provided to you during your first week of employment. You can discuss your payroll
options with your Business Office Manager.

New hires will receive their first paycheck at the facility. After the first paycheck, employees will either receive their pay via a pay card or direct
deposit, depending upon their stated preference. After receiving your first paycheck, your check stubs can be accessed online at the website
listed in the Avalon Contact Information page included with this handbook. The facility has a computer terminal available for employees to access
their pay stubs online and print a hard copy if they choose. Ask your Business Office Manager if you do not know where the computer terminal
is located at your facility.

Your check stub will include the following information:


• Your Pay Rate • Your Gross Pay (for the period and year-to-date)
• Overtime and/or Premium Pay and Hours • Statutory Deductions
• Voluntary Deductions • Vacation and Sick Balances

B. What If I Lose My Paycheck/Pay Card?


If you lose your paycheck or pay card, notify your Business Office Manager in writing as soon as possible. This notification must be written before
a replacement check or pay card can be issued. If you find your lost check after you have notified your Business Office Manager– DO NOT
attempt to cash the original check without approval from Avalon. If we discover that you have endorsed a check that was reported lost without

Avalon Health Care Group - Revision 9/2017 Page |6


permission, you will be required to pay the amount of the replacement check back to the Company within 24 hours, and you may be subject to
disciplinary action up to and including termination.

Final Pay Checks


Final payroll will be paid in accordance to all state and local guidelines.

2.2 Errors in Pay


Every effort is made to ensure that paychecks are correct. If you believe an error has been made (either an over-or under-payment), you must tell the
Business Office Manager or Payroll Coordinator right away. He/she will consider the problem and any needed change will be made promptly. If we
have paid you more money then you are owed, we may ask you to sign a form that lets us deduct the extra money from future paychecks. If you
prefer, you can choose to pay the overpayment to the company all at once or we will work with you to develop a schedule to repay the overpayment.

2.3 Personnel Records


It is important that we keep up-to-date company records. To ensure that our records are accurate, we need you to notify your Supervisor, Business
office manager, or Payroll coordinator if you have any changes in your:

▪ name and/or marital status ▪ address and/or telephone number


▪ number of qualified dependents ▪ W-4 deductions
▪ direct deposit information ▪ emergency contact information

Avalon will allow you to review your personnel file upon request. You can do this during the normal business hours of the department that keeps those
records. You need to give them reasonable advanced notice that you want to look at the file. You can ask for copies of any item in your file, but we
may charge you the standard facility copy charge for each page copied.

III. Starting Employment with Avalon


3.1 Job Description
You should have received a copy of your job description in the offer letter email prior to your start date. This lets you know about the duties and tasks
that you will need to perform as well as any responsibilities and accountabilities associated with your position. The job description lists the minimum
qualifications you need to perform the job. It also notes the physical requirements of your position.

Your job description is a summary of your general duties. The Company may change, modify, add to, or eliminate some of the duties included in your
job description based on business needs or your supervisor may ask you to perform duties not specifically described in your job description from time-
to-time. Make sure you read your job description and let your supervisor know if you have any questions. If you believe you are being asked to perform
duties that are unsafe, unlawful or unethical, notify your supervisor, department head, Administrator and/or the Human Resources Business Partner
assigned to your facility/region.

3.2 Employment Classifications


Avalon has the following classifications of workers: Full-time, Part-time, On-call and Temporary.

Within these general classifications, employees will be further classified and paid as either Hourly or Salaried-Exempt. Your offer letter will tell you
which classification applies to you when you are hired. We follow the guidelines of the Fair Labor Standards Act (FLSA) and relevant state wage and
hour laws, pertaining to classifying employees as either Hourly and eligible for overtime pay or Salaried-Exempt and not eligible for overtime pay. If
you don’t know how you are classified, look at your job description or ask your supervisor or the Human Resources Business Partner for your region
(see, Avalon contact information included with this Handbook).

A. Full-Time Employees.
If you are regularly scheduled to work at least 30 hours per week, you are a full-time employee. The benefits that we talk about in this Handbook
apply only to regular full-time employees, unless otherwise noted.

B. Part-Time Employees.
If you are regularly scheduled to work at least 20 hours per week, but less than 30 hours per week, you are a part-time employee. Part-time
employees may work more than 30 hours in a week by picking up additional work shifts. When this happens, the employee is still considered
part-time until the employee is officially awarded a full-time position. As a regular, part-time employee, an employee’s benefits are different from
the benefits provided to full-time employees, except as required by certain state and federal laws. Part-Time Employee benefits are noted in the
employee benefit section of this handbook.

C. On-Call Employees

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On-Call employees generally have no regular work schedule or number of assigned hours of work and are instead scheduled to work on an as-
needed/as-available basis. On-call employees must make themselves available to work at least three shifts per posted work schedule. With at
least one work schedule’s advance notice, a facility may require that one of the shifts an On-Call employee identifies as being available per work
schedule fall on a Saturday or Sunday or during an off-shift (evening or night). On-call employees must send the person responsible for scheduling
a list of the dates and shifts (day, evening, night) they are available to work during the upcoming schedule. This must be provided in writing at
least one calendar week in advance of the date the schedule is usually posted or at such other time as the facility may identify. On-call employees
who fail to work any hours within a 60-day period, may be administratively terminated and removed from the employment roster with
notice sent to the employee’s home after the fact.

D. Temporary Employees
Avalon may hire an individual for a limited period of time to help complete a specific project or to fill in for an employee on leave who is expected
to return. These people are temporary employees. Summer jobs, internships, and seasonal intermittent employees are all temporary employees.
The length of the job, its duties, and schedule will be determined on an individual basis. Normally, a temporary job will not last longer than six (6)
months. If there is a need for the job to last longer than six (6) months, that will be stated in writing. Temporary employees work “at-will” no
matter how long the temporary job lasts. This means either the employee or Avalon can end the relationship at any time for any or no reason.

E. Minimum Hiring Age and Hours


Avalon employees, under age (18), will only be allowed to work schedules that adhere to state and federal labor laws. Certain jobs titles may
have minimum age requirements associated with the positions due to equipment used.

F. Concerns over Classification


If you are classified as an On-Call or Part-Time employee and you find that you are regularly scheduled (60 days or longer) for hours that could
meet the hour requirements of a different employment classification. You can request a review of employment status from your supervisor. Your
supervisor will decide based on this review, whether a change in classification is needed to meet the ongoing needs of the department.

IV. Hours of Work and Overtime


4.1 Time Records
All non-exempt employees must clock-in and clock-out each day using the time clock or the appropriate time record sheet. You are responsible for
your own time punches and accurate tracking of your time. Clock in only at the scheduled start of your shift and clock out at the end of the shift. More
than 2 “missed punches” per month is considered excessive (missed punches caused by time clock malfunctions are not counted). Repeated incidents
of excessive missed punches may result in disciplinary action up to and including termination of your employment.

You may not “clock-in” or otherwise sign in or out for anyone else, and they cannot “clock-in” or sign out for you. Unless specifically directed
otherwise by your supervisor, you should not clock in before the beginning of your scheduled shift. Once you clock-in, you should begin working
immediately. As soon as you finish working at the end of your shift, you should promptly clock out to avoid incurring unauthorized overtime. Once you
clock-out for the day, you must not perform any additional work. Failure to use the time clock or other violations of this policy may result in
disciplinary action up to and including termination.

If you forget to clock-in or out for a shift, you need to fill out a “Time Clock Adjustment” form. Below sections describe the requirements for clocking in
and out for meal periods and use of the Time Card Adjustment form if you miss a meal period. Using the Time Clock Adjustment form insures that
you are paid accurately for all the time that you work. In general, time worked is rounded to the nearest 15 minutes for pay purposes.

If you are a non-exempt employee, you need to sign the “Time Detail Report” each pay period or other document provided by management certifying
that the hours in the time keeping system accurately reflect all the hours you worked. Your signature on the “Time Detail Report” or other document
certifies that there is no additional time owed to you, and that you understand how to correct errors to the time listed. Avalon employees will never be
asked to work “off the clock.” If you feel pressure to work off the clock, notify your Administrator, HR Business Partner or call the Compliance Hotline
at (877) 874-8416 or for web reporting go to: https://avalonhci.alertline.com/gcs/welcome.

Exempt employees must provide an accurate “Employee Attendance & Leave Record” form at the end of each pay period. This form must show all
regularly scheduled time missed during the pay period, and must be approved by their supervisor. Failure to accurately report all leave taken may
result in disciplinary action up to and including termination.

4.2 Overtime Pay


In accordance with the Fair Labor Standards Act, non-exempt employees will be paid one and one-half times their regular hourly rate of pay for each
hour worked over 40 in a regular workweek. Variations of Overtime Pay may also be subject to state and local laws, refer to State Supplement.
Management must preauthorize overtime before it is worked. Failure to obtain preauthorization to work overtime or causing unauthorized overtime
may result in disciplinary action up to and including termination.

4.2a CA Overtime Pay


Non-exempt employees working in excess of eight hours in any one workday will be paid overtime at the rate of one and one-half times the
employee’s regular rate of pay and twice the employee’s regular rate of pay for hours in excess of 12 in a single workday. Employees who work on

Avalon Health Care Group - Revision 9/2017 Page |8


the seventh consecutive day in a workweek are entitled to time and one-half for the first eight hours worked and double time for any work in excess
of eight hours that day. Management must preauthorize overtime before it is worked. Failure to obtain preauthorization to work overtime or causing
unauthorized overtime may result in disciplinary action up to and including termination.

4.3 Work Schedule


It is vital that we provide quality care to our residents and others we serve, 24 hours a day, seven days a week, every day of the year. Erratic demands
make it difficult to provide a “set-schedule” to employees. We try to give you a more or less stable and predictable work schedule, but a “set–schedule”
is never guaranteed. Your supervisor or other designated individual will schedule your shifts, meal and break times in a way that best meets the needs
of the facility and its residents. It is your responsibility to review the schedule, know when you are scheduled to work, and follow the procedures and
practices in your facility for call offs, requesting vacation, switching shifts, etc. If you have questions about your work schedule, talk with your Supervisor,
Administrator and/or the Human Resources Business Partner in your region.

A. Schedule Posting & Changes


We try to post the next month’s work schedule by the 20th of each month. Your specific work schedule may be changed from one month to the
next. Once a final schedule is posted, your shifts should be changed only if you and your supervisor agree to the change, except in cases of
emergency or if a shift is cancelled or shortened due to low census (See, Subsection C below).

B. Weekends
Most Avalon facilities are staffed around the clock. This includes weekends and holidays. Employees should expect to rotate through weekend
and holiday shifts. This is particularly true for clinical staff. If you had a written understanding that you would not be required to work weekends
at the time you were hired, you will get at least a 30-day advanced notice before you may be required to start rotating through weekend shifts.

C. Low Census
Sometimes the facility has fewer residents than expected. We call this a low census. When this happens, some employees may be “called-off”
work for all or a part of their scheduled shift. If this happens, you can choose to use Vacation hours you have available in your Vacation bank to
cover the time missed. Hours lost due to low census will be applied fairly among staff in the same job class, provided skills and abilities are not
considered to be overriding factors.

4.4 Meal and Break Periods


Avalon wants to ensure that all employees receive adequate rest and meal breaks throughout the workday. Meal and breaks may be subject to state
and local laws, refer to State Supplement.

A. Rest Breaks
In general, you will get a 15-minute, paid rest break for every four hours of your work day. You should schedule your breaks in advance with your
supervisor and/or co-workers. You should not combine your breaks or take them in the first or last hour of your shift. You cannot use your breaks
to offset or extend an unpaid lunch. If you work in a department that does not assign breaks, please work with your co-workers to make sure
there is enough staff available to cover the needs of the residents during your rest break. In most cases, you do not need to “clock-out” and back
in for your paid rest breaks. If you feel you or your co-workers are unable to consistently take your two, 15-minute breaks each shift, discuss this
with your supervisor, Administrator, or the Human Resources Business Partner in your region.

B. Meal Periods
If you are scheduled for a shift that is five hours or more, you will be provided at least a 30-minute, unpaid meal period. If your shift lasts longer
than ten (10) hours, you may be provided an additional, unpaid 30-minute meal period. When you take your meal break, will depend on the needs
of your department. The facility has a designated place where employees can eat without interruption. Meals should not be eaten at your
workstation unless you get prior written approval to eat there.

Your Supervisor will tell you if you need to clock-out and back in for meal periods. If you are not required to clock-out for meal periods, a 30-
minute meal period will generally be automatically deducted from you work time for each shift. Unless specifically requested by Management, do
not perform any work during your meal period. If you are asked to work and/or do not get an uninterrupted 30-minute meal period, complete
a “Time Card Adjustment” form explaining why so no deduction will be made for the meal period. It is important that you return to work on time
at the end of your meal period. You may leave the facility during your meal breaks. If you choose to leave the premises you need to let your
supervisor or charge nurse know in advance of your meal break. You must return within 30 minutes.

C. Nursing Mothers
If you are a nursing mother, we will provide you a reasonable amount of break time for you to express breast milk for your infant child. We will try
to provide you with the use of a room or other location, other than a toilet stall, for you to express milk in private. If possible, the break time shall
run concurrently with your normal rest or meal breaks described in this Section. If you need additional break time beyond your normal rest/meal
breaks to express milk, you should clock out and back in from any additional breaks so that time will not be paid (or complete a Time Card
Adjustment Form if necessary).

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4.5 Show-Up Pay
Employees who report to work for a scheduled shift and are “called off” due to low census, overstaffing, or for other non-disciplinary reasons will have
two options:

• You can take one-hour’s pay at your regular rate and be released from the remaining hours of your shift. This is called “show-up” pay.
• You can “clock-in” and work for at least two hours in an area where Management directs you. This may be work outside your regular position
or department. If you choose this option, you may be required to stay for the entire shift at the discretion of Management.

4.6 Call-In Pay


If you are called in to the facility by your supervisor or Administration, you will be paid a minimum of (1) one-hour of pay. This is called “call-in” pay.
Remember to clock in and out as usual. If the one-hour minimum is not met with the amount of work that was required, complete a Time Card
Adjustment form so that the time can be adjusted. If the amount of work requires more than the (1) hour minimum then it will continue at your regular
hourly rate of pay, or overtime, if applicable.

4.7 Shift Differentials


Whether shift differential is paid to employees on certain shifts (i.e. evening/night shift) is decided by facility management. Decisions to pay shift
differential will be made based on applicable laws, recruiting and retention issues, and local job market factors. The facility works with the Human
Resources Business Partner and Regional Vice President when establishing shift differentials.

V. Your Benefits at Avalon


5.1 Employee Benefits
Employee benefit plans are re-evaluated yearly and are subject to change. Refer to the current year, Benefit Enrollment Guide for specific plan details
and eligibility requirements. In general, and unless otherwise specified or as required by state or federal law only full-time employees are eligible for
the following benefits:
• Medical, Dental & Vision Plans
Avalon offers medical insurance plans for eligible employees, spouse, and dependents. Avalon assists the employee by paying part of the
premiums costs for medical benefits (see benefits guide for more information).

Avalon also offers dental and vision insurance to full-time and part-time employees, spouses, and dependents for which the employee pays the
premiums (see benefits guide for more information).

• Life Insurance and Accidental Death and Dismemberment.


Avalon provides limited Life Insurance and Accidental Death and Dismemberment coverage for all staff. You may buy extra insurance, but you
may need to show proof of insurability for large amounts.

• Health Savings Account (HSA), Flexible Spending (Section 125) Account (FSA).
HSA is available only to participants enrolled in high deductible HSA eligible plans. See your benefits handbook for more information regarding
HSA eligible plans, and HSA accounts. A Flexible Spending Account (FSA) is funded by employees that allows you to use pre-tax money to pay
for medical, dental, vision and child care expenses (see your benefits handbook for more information and amounts allowed for HAS and FSA
accounts).

• Additional Benefits.
In addition to the benefits listed, we offer other benefits you can consider. Avalon has no control of claim approvals and is not responsible for any
claims denied by benefit providers. Be sure to review all plan policies and eligibility requirements before enrolling.

• Eligibility/Waiting Period:
Employees are eligible for benefits on the first day of the month following one full month (30 days) of employment if they otherwise meet the
eligibility requirements.

5.2 Employee Savings Programs


• 401(k) -- Tax-Deferred and Roth Savings Plans.
All new employees will be automatically enrolled in the 401(k) Plan with a contribution amount of One Percent (1%) of his/her compensation for
each pay period, and contributed to the Plan starting with the first paycheck after the 31st day after hire. If you do not wish to contribute funds to
your 401(k) or if you wish to contribute an amount other than One Percent (1%), you must contact Alliance Benefit Group Rocky Mountain with
30 days of hire. A copy of the plan documents and forms can be found at the following website: www.abgrm.com At this time, we do not match
your contributions.

*Limited right to withdraw automatic deferrals. For a limited time, if your Employer automatically enrolled you and you did not want to participate
in the Plan, you may elect to have the Plan distribute to you all your prior automatic deferrals (adjusted for any earning or losses). You must

Avalon Health Care Group - Revision 9/2017 Page | 10


make this election on the form provided to you by the Plan Administrator. You must make this election no later than 90 days after the first
automatic deferral is taken from your compensation. All distributed funds are subject to all taxes, penalty and early distribution laws.

• Eligibility / Waiting Period


Employees can enroll or make changes throughout the year. Requested changes will be put into effect on the 1st day of the following month.

5.3 Vacation, Sick Leave and Holidays


Avalon provides full-time and part-time employees with paid leaves and holidays, refer to the State Supplement for specific details.

5.4 Bereavement Leave


Avalon offers up to three working days off with pay to full-time employees who need to plan for or attend the funeral of an immediate family member,
or to mourn. Immediate family members include your:

• Spouse • Child • Parent or Parent-in-law


• Grandparent or Grandparent-in-law • Grandchild • Daughter-in-law or Son-in-law
• Step-parent or Step-child • Brother or sister • Brother-in-law or Sister-in-law
• Any relative who lives with the employee

You are eligible for Bereavement Leave once you finish the first 90-days of employment. If you want to use Bereavement Leave for someone who is
not part of the list provided -- for instance, for an aunt or uncle who raised you or for your long-term domestic partner -- you may submit a written
request to your Administrator or supervisor. In the request, you should explain why you think the leave should be granted. If the Administrator agrees,
he or she will forward the request to the Regional Vice President and the Human Resources Business Partner for the region for final approval.

In cases of the death of other friends or relatives, you will need to use vacation hours to be paid for this time. If you do not have enough hours in your
vacation bank, the time off would be without pay.

Pay for bereavement is only given for the actual time you spend away from work for the funeral or its arrangements. If the death occurs when you are
not scheduled to work, payment will not be made. If a holiday or part of your vacation occurs on any of the days related to the funeral, bereavement
leave will replace your scheduled vacation hours.

5.5 Military Leave


Military leave will be granted as required by applicable law.

5.6 Family and Medical Leave Act (FMLA) Leave


The Company complies with the requirements of the Family and Medical Leave Act (“FMLA”) which allows an eligible employee up to a total of 12
workweeks of unpaid leave during any 12-month period (26 weeks for military caregiver) under certain qualifying conditions. Details and conditions of
FMLA leave are described in the federal notice “Employee Rights and Responsibilities under the Family and Medical Leave Act.” A current copy of
the notice is displayed in high visible traffic areas such as kitchens or breakrooms.

• 12-Month Period. The Company calculates the 12-month period in which leave for the above purposes may be taken on a “rolling”
basis, meaning that the 12-month period is measured backward from the date an employee uses any FMLA leave.

• Required Use of Paid Leave. The Company requires employees using FMLA leave to use any paid leave balances available. Once
the accrued paid leave is exhausted, remaining FMLA leave will be unpaid.

If you have questions or want to learn more about FMLA, please contact the Human Resource Business Partner assigned to the Support Services
Center. You can get copies of all relevant forms and paperwork from the Shared Services department. Refer to the Avalon Contact Information.

5.7 Leaves Provided Under State law


Refer to State Supplement for specific details of any leaves available under state law.

5.8 Personal Leave of Absence


In an effort to recognize that employees may occasionally require time off in addition to other types of leave. Avalon may consider an unpaid personal
leave of absence up to a maximum of 30 days.

Employees who have 500 hours of employment, within the previous 12-month look back period, from the requested date of personal leave may be
eligible. Personal leave may be requested by all employee classifications, as long minimum hours have been met. Job performance, absenteeism
and departmental requirements all will be taken into consideration before a request is approved. Approvals from the immediate supervisor, department
director and human resources are required. Requests for unpaid personal leave may be denied or granted by the company for any reason or no reason

Avalon Health Care Group - Revision 9/2017 Page | 11


and are within the sole discretion of the company. Avalon reserves the right to terminate employment for any reason or no reason during the leave of
absence.

Requests for personal leave must be submitted in writing to the employee’s department head, at least 30 days prior to the date requested. Emergency
situations maybe considered without a 30-day notice. A department head may deny a request for leave based on business necessity. Failure to receive
approval prior to taking time off and/or failure to return to work at the end of an approved personal leave may be cause for disciplinary action up to and
including termination.

An employee is required to first use vacation accruals, with the remainder of the time taken as leave without pay.

In situations where personal leave is being coordinated with FMLA or other State Protected Leave, supervisors should contact Human Resources to
review appropriate calculations and provisions that may require the department to reinstate the employee into his or her position.

Vacation time and Sick Leave are not accrued during an unpaid personal leave. Staff employees are not eligible for holiday pay for holidays falling
within the approved personal leave of absence period.

An employee is required to return from the unpaid personal leave on the originally scheduled return date. If the employee is unable to return, he or
she must request an extension of the leave in writing. If Avalon declines to extend the leave, the employee must then return to work on the originally
scheduled return date or be considered to have voluntarily resigned from his or her employment. Extensions of leave will be considered on a case-
by-case basis. While you are on an approved personal leave, your health benefits can stay in effect as long as you continue to pay your portion of the
benefit premiums. If you are unable or fail to return to work and your leave is not extended your benefits will continue through the end of the month. You
can keep most of your health benefits in effect for up to 18 months if you elect to enroll in COBRA. COBRA information will be mailed to your home
address once you become COBRA eligible.

Because our business is fluid, unless required by law, we can’t guarantee that your job will stay open or that a similar position will be available when
you come back from leave. When you are ready to return from an unpaid Personal Leave, we will make every effort to put you back in your position or
one like it. If your job, or one like it, is not available within 30 days from the date your unpaid leave was scheduled to end, your employment will end,
but you will be eligible for re-hire.

5.9 Administrative Leave


Avalon may put an employee on administrative leave while an investigation into an incident or issue is conducted. Administrative leave is not a
disciplinary leave. Being placed on Administrative leave does not mean you have done something wrong. It only means that we are investigating to
determine whether any violations have occurred. While on Administrative leave you will be eligible for pay for regularly scheduled shifts you may have
missed. Refer to the Notice of Administrative Leave that will be provided at the time of leave.

5.10 Victims of Domestic Violence, Sexual Assault or Stalking


Avalon will allow victims of domestic violence, sexual assault, or stalking to take leave in accordance with federal, state or local laws. Leave can be
used to seek medical treatment, counseling, legal or law-enforcement assistance, or for safety and relocation issues. Family members of victims may
also be approved for such leave.

5.11 Jury Duty


If you are called for jury duty, you must tell your supervisor within 48 hours of receiving the summons.

Avalon will let you to take time off for jury duty. We also want to help you avoid the loss of income because of jury service. We will pay you for the
difference between your jury pay and your regular pay, for no more than eight (8) hours per day, for up to 10 business days in any 12-month period.
Jury duty that goes beyond 10 working days will be reviewed on an individual basis by the Administrator and your supervisor. You are expected to
come back to work on any day or half-day that you do not need to serve on the jury.

To receive jury-duty pay, you must provide the jury duty statement which includes the pay you received from the court. This document needs to be
given to your supervisor. You can get this document at the court. Time spent at jury duty will not be charged against your accrued leave except as
explained in the paragraph above. If you work a night shift, you may ask your Administrator for jury duty leave for the day before you need to report to
the court if the time between your shift and the court proceedings does not allow you reasonable time to rest. Your Administrator may choose to excuse
you from a partial shift, if this will allow you a reasonable rest time before you need to report for jury duty. If you are subpoenaed to appear in court as
a witness or to testify, jury duty pay does not apply.

5.12 Workers Compensation Benefits


The Company maintains workers’ compensation insurance coverage for all employees as required by state law. This insurance provides medical and
wage loss coverage for injuries sustained while an employee is working for the Company. All job-related injuries, illnesses, and accidents, regardless
of severity, must be reported immediately to management (and in all situations within 24 hours).

Avalon Health Care Group - Revision 9/2017 Page | 12


An employee’s failure to report work-related injuries or accidents immediately may adversely affect the availability of workers’ compensation benefits
to the employee and may subject an employee to disciplinary action up to and including termination.

Light or Temporary Transitional Duty Program


Avalon has adopted a “No Time-Loss Philosophy.” This means that if you are hurt on the job, we will make a good faith effort to help you get back to
work using our Avalon temporary transitional duty program working within the guidelines of the health care provider’s recommended restrictions. The
transitional duty program allows us to structure job duties in a way that will help in the recovery process by working with health care provider
recommendations and restrictions and anticipated work duty progression. For example, if recovery is best accomplished by change of work schedule,
types of duties, or needed equipment, those changes can be accommodated from the normal day-to-day tasks. While on the transitional duty program,
it is the intent for the program for day to day duties to gradually increase, until such time that all former job functions can be performed without
restrictions and a full release has been obtained from the health care provider. Avalon’s temporary transitional duty program, is generally intended to
last no longer than 90 days. Extensions beyond 90 days will be reviewed on a case-by-case basis and will depend upon further recommendation or
restrictions provided by the health care provider and demonstrated progression towards full recovery.

If you are injured at work, you need to keep your supervisor updated on your recovery process and anticipated date of return. We will provide a copy
of our transitional duty program and current job description so the health care provider can give recommendations or identify work
restrictions/modifications as necessary. A Release and Functional Capacity Evaluation from your provider will be required prior to your return to work.

If you are hurt on the job and leave to get treatment, you must return when your care provider releases you. If you are released during your scheduled
shift, you must come back to work and check in with your supervisor or the on-duty supervisor. They will give you work duties that can be done given
any restrictions that are noted by the health care provider. If your exam and care lasts beyond your present shift, you must call and speak with the
Administrator or on-duty supervisor even if it is after hours.

5.13 Pregnancy and Childbirth-Related Accommodations


Avalon employees who are pregnant, are breastfeeding, or have other conditions related to pregnancy and childbirth may need some accommodations
at work. In accordance with applicable laws, the Company provides reasonable accommodations that will enable an employee to perform the essential
functions of their job, unless doing so would cause undue hardship. Depending upon the circumstances and as allowed under applicable law, the
Company may require a medical certification from the employee’s health care provider concerning the need for accommodation. However, the
Company will not require a medical certification for a request for more frequent restroom, food or water breaks due to pregnancy or breast-feeding.
Employees who require accommodations for pregnancy, breastfeeding or related conditions should contact their supervisor, Administrator and/or the
Human Resources Business Partner for your region.

5.14 Educational Assistance and Tuition Reimbursement


Avalon wants to encourage employees who possess a desire to improve themselves and their position with the Company through continuing education.
To encourage and reward these individuals, Avalon offers an Educational Assistance benefit to employees who have been employed by the Company
for at least one year.

A. Degree, License, and Certification Programs.


Full-time employees continuing their education in a job-related field can be reimbursed up to $1,250 per year. The reimbursement must be applied
to registration fees, tuition costs, and the cost of books in an approved educational program.

If you are interested in applying for education reimbursement, you need to fill out a Tuition Reimbursement Request packet. Your request packet
must include your supervisor’s recommendation. Your request must be approved in advance of each school quarter/semester by the facility
Administrator.

Your Administrator will decide the amount of the reimbursement that will be made (up to the $1,250 per year maximum), and the number of hours
that must be worked by the employee while they are in the program (this may reduce your regularly scheduled hours below full-time while enrolled
in classes, but you may be required to pick up additional weekend and/or Holiday hours to maintain as close to a full-time work commitment as
possible). You will need to receive a grade of a C or better to get reimbursed. Requests for reimbursement must be completed with all the
necessary documentation within 30 days of the completion of the course.

B. Seminars
Employees are encouraged to participate in seminars and Continuing Education courses that add to their skills in their current position. If you
learn about a seminar that you feel can add to your skills, please notify your supervisor. Participation in these seminars can be limited, so it is
important that you notify your supervisor about your interest in attending as early as possible. This will give your supervisor time to adjust the
work schedule to accommodate your request.

Approval for seminars that are reimbursed by Avalon will be based on the available budget for the facility and must be pre-approved. If you are
taking a pre-approved seminar to receive continuing education credit, you will need to give your supervisor a copy of the Continuing Education
Credit Certificate (or another document). We will add this to your personnel file. To get Tuition Reimbursement for a Continuing Education
seminar you must:

Avalon Health Care Group - Revision 9/2017 Page | 13


• Tell your supervisor about the course and its associated cost including the cost of materials and registration. All reimbursement must be
approved before you sign up for the course.
• You must turn in your request for reimbursement and receipts within 30 days following the seminar.

C. General
Reimbursement is only considered for seminars or programs that lead to a degree, license, or certification. The course or seminar must be job-
oriented, and it must be offered by an approved education or training institution. Other educational assistance programs and the requirements
for participation may be announced from time to time.

VI. Human Resource Policies & Work Rules


The policies in this Handbook are not comprehensive, and they do not represent all the human resource policies of the Company. Employees may
consult the Administrator or Human Resource Business Partner for more information on these and other human resource polices and issues.

6.1 Safety
Avalon is committed to the safety, health, and security of all residents, employees, visitors, and volunteers. We must comply with the laws that regulate
injury and accident prevention and employee safety. It is up to each of us to create a safe working environment. Avalon will follow safety and health
practices that are consistent with the needs of our industry. If you are ever in doubt about how to safely perform a job, ask your supervisor for help. If
you think there are unsafe conditions at your workplace, tell your supervisor or your facility Administrator. If you see an injury or if you are injured while
at work, report it right away and in all cases within 24 hours of incident.

6.2 Accidents and Emergencies


We must work together to keep our work place safe. We encourage employees to talk with their co-workers and their supervisors about safety issues.
If there is an accident or an emergency, contact your supervisor or the nearest supervisor, right away. Call 911 if needed. If you are injured or become
ill at work, we will provide care, first-aid, and emergency service as needed. If you are injured on the job, Avalon provides coverage and protection in
compliance with Workers’ Compensation laws.

6.3 Drug Testing


The Company desires to provide a drug-free, healthy and safe workplace. To promote this goal, employees are required to report to work in appropriate
mental and physical condition to perform their jobs in a satisfactory manner. The Company has a separate drug and alcohol testing policy with which all
employees must comply as a condition of employment. All employees are given a copy of the drug and alcohol testing policy, and it is posted in various
locations at the Company. If you need a copy of this policy or have questions about this policy, you should contact the Human Resources Business Partner
for the region.

6.4 Company Searches


Avalon reserves the right to search any Company property or vehicle at any time. Authorized employees may search and inspect both facility property
and personal items. If the Company has a legitimate business-related reason or reasonable suspicion that may violate company policy, we may
inspect individual property that you have brought onto Avalon property. This search may include private vehicles, lockers or other spaces that are
individually assigned, pockets, purses, wallets, briefcases, backpacks, shopping bags, boxes and removable clothing. We can ask you to take off a
coat, sweater, lab coat, or similar type clothing so that we can inspect it. We can ask you to turn your pockets inside out. We will not do any form of
body searching. If you refuse to cooperate in a search, inspection, or investigation, you may be subject to disciplinary action up to and including
termination.

6.5 Entering and Leaving the Premises


There are certain entrances and exits that our employees can use. You will learn about these at your orientation. You will also learn about unauthorized
areas in your facility, if there are any. If you expect visitors, such as clients, patients, residents, family, or friends, please let your supervisor know. We
do not allow unescorted or unauthorized visitors in our facilities. Avalon may apply its right to inspect all packages and parcels that come in or leave
our facilities. To ensure operations are not disrupted and liability for potential injuries, etc. are minimized, employees who visit the facility during periods
they are not scheduled to work are subject to the same rules and restrictions regarding access to the facility as non-employee visitors to the building.
Employees on Administrative Leave, who have been suspended or whose employment has been terminated may be prohibited from entering the
facility at Management’s discretion.

6.6 Smoking
Smoking is not allowed on any Avalon property or facility except in designated areas. Designated smoking areas are outside the building(s) and more
than 20 feet away from any building doorway. The no smoking rule applies to private offices, break rooms, communal areas, resident’s rooms, work
areas, building lobbies, and reception areas. This includes but not limited to: Vapes, e-cigarettes, or other such devices as well as to the use of chewing
tobacco or related products. Avalon follows all state and federal laws and regulations about this topic.

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6.7 Expense Reimbursement
Before you incur an expense on behalf of Avalon, get your supervisor to authorize it in writing (usually using a requisition or purchase order). To be
reimbursed for all authorized expenses, you must submit an expense report or voucher, along with receipts, and it must be approved by your supervisor.
Please submit your expense report or voucher each week, as you incur authorized reimbursable expenses. If you are asked to conduct Company
business using your personal vehicle, you will be reimbursed for mileage at Avalon approved rates. Please submit this expense on an expense report
form.

6.8 Job Postings


Current Avalon employees can view and apply for job postings, including internal only postings, by visiting us at
https://avalonhcg.mua.hrdepartment.com/hr/ats/JobSearch/index. Employees can also access this link through our Company iConnect under the ‘HR’
tab>Recruitment>Internal Postings. You are encouraged to recommend and refer qualified candidates for employment with Avalon.

A. Internal Postings
Open positions that are posted internally will remain on the internal career site for a minimum of seven (7) days to allow all interested employees
to apply before opening the position to external candidates. With the approval of the regional HR Business Partner, openings for certain positions
may be posted for consideration by internal and external applicants at the same time.

B. Priority Consideration
All qualified current employees who apply for a posted position will be given preference to candidates from outside the Company, if skill,
experience, attitude, ability and any relevant disciplinary records are not deemed by management to be overriding factors.

C. Internal Transfers
Avalon strives to ensure current employees can progress in their careers, and to be provided opportunities to move into situations and positions
that are the best fit for their skills. Internal candidates must have been in their current position for at least 6 months, meet minimum qualifications,
and no adverse personnel actions over the last 6 months to be considered for transfers.

6.9 Work Rules


In this section, we describe specific behavior which is expected of every Avalon employee. We also discuss conduct that is not appropriate and that
will result in discipline, up to and including termination.

A. Conflicts of Interest
We expect you to conduct business per the highest ethical standards. We expect you to devote your best efforts to the interests of Avalon.
Business dealings that create a conflict of interest and/or that disrupt operations at the facility are not acceptable. We recognize your right to
engage in activities outside of your employment which are unrelated to our business. However, you must disclose any possible conflicts, so that
we can assess and prevent potential conflicts of interest from arising.

We cannot list every action that might create a conflict of interest. This policy sets forth the ones that most often create a problem. If you question
whether an action or proposed course of conduct would create a conflict of interest, you should contact your Administrator for advice.

1. Outside Employment
You need to get written approval from your supervisor before you take on another job. In the hiring process, if you will be continuing with a
current job/position you must notify the hiring manager. Approval will be granted unless the work activities create an actual conflict of interest
or disrupts operations at the facility. An active Avalon employee cannot work for a 3rd party contracted employer of Avalon, (i.e. Sodexo,
HSC services, etc.)

2. Financial Interest in Other Businesses


An employee and their immediate family may not own or hold any significant interest in a supplier or competitor of Avalon, except where
such ownership or interest consists of not more than 1% of the outstanding securities in a publicly owned Company (or securities that are
regularly traded on the open market). If you disclose such interest, and we determine that it does not put you in a position to make purchasing
or other decisions that involve the supplier or competitor, it will not be considered a conflict of interest.

3. Accepting and Giving Gifts


You may not solicit or accept gifts of value. You cannot solicit or accept gifts of other than nominal value (i.e. a Thank you, birthday or
similar card), loans of any amount or other benefits from potential or actual residents, patients, their family members or other customers,
suppliers or competitors. If someone attempts to give you a gift of more than nominal value, promptly notify the Administrator and they will
decide on whether it is appropriate for you to accept the gift and will provide you direction and assistance in declining or returning gifts that
are excessive. Even if you have a pre-existing relationship with a resident, patient, their family member or customer, supplier or competitor,
you must notify your Administrator if you are offered a gift, loan, etc. so that we may ensure that there is not even an appearance of
impropriety. Acceptance of any of the abovementioned items or failure of proper notification could be grounds for disciplinary action up to
and including possible termination.

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If you have questions about this policy, ask the Administrator of your facility. If you believe that you have a conflict of interest notify your supervisor
in writing. Typically, approval will be given unless the conflict concerns accepting gifts or loans or the relationship interferes with your duties or
creates an actual conflict of interest that disrupts Avalon’s operations.

B. Confidentiality
All Avalon records and information about our Company, employees, residents, patients, family members or other customers are confidential.
You must treat it in the strictest confidence. No Avalon or Company-related information of any sort or in any format may be removed from
Avalon’s premises without permission from the facility Administrator. The exception to this is if it is part of your normal duties on behalf of Avalon.

We maintain complete and thorough medicals records and business records of resident’s information and protect the privacy of our resident’s
health records to fulfill the requirements set forth in applicable Avalon policies, federal and state law including but not limited to HIPAA, HITECH
Act and the Affordable Care Act.

What you learn about Avalon records or information while doing your job is considered confidential. You may not share it with anyone else unless
you need to for an Avalon business purpose. If you have questions about what might or might not be confidential, ask your supervisor. If you
reveal confidential information on purpose or in error, you will be subject to disciplinary action up to and including termination. If you find that
you or a co-worker has breached this policy, notify Administrator, Human Resource Business Partner or Regional VP immediately; or you may
call the 24-hour hotline: 1-877-874-8416, or contact the compliance department via email: compliance@avalonhealthcare.com; compliance
department 801-325-0165 or web site: https://avalonhci.alertline.com/gcs/welcome.

C. Attendance
Absenteeism and tardiness place an undue burden on other employees and on the Company as a whole. The Company expects that every
employee will be regular and punctual in attendance. Employees are also expected to return from scheduled breaks and meal periods on time.

All time off must be requested in writing, two weeks in advance, as outlined in the Vacation policy. If you are unexpectedly unable to report for
work for any reason, or if you will be late for any reason, you must notify your supervisor or other individual designated by the facility at least 2 hours
in advance. Employees must make every effort to speak with their supervisor or other individual designated by the facility directly. It is not acceptable
to leave a voicemail or text message, except in extreme emergencies. In cases that warrant leaving a voicemail message or when an employee's
direct supervisor or other individual designated by the facility is unavailable, a follow-up call must be made later that day.

Employees who are going to be absent for more than one day should contact their supervisor or other individual designated by the facility for each
additional day they are unable to work. The Company reserves the right to ask for a health care provider’s statement in the event of a long-term
illness (4th) consecutive days or multiple illnesses or injuries.

If an employee fails to notify his or her supervisor or other individual designated by the facility on the (4th) consecutive day of absence, the Company
will presume that the employee has voluntarily resigned, and the employee will be removed from payroll. The Company will review any extenuating
circumstances presented by the employee that may have prevented them from calling in before removing them from payroll.

If an illness or emergency occurs during work hours, employees should notify their supervisor. Employees who leave work early without prior
authorization may be deemed to have abandoned their job and be subjected to disciplinary action up to and including termination.

The Company considers consistent attendance and punctuality to be the foundation for excellent performance. If undue or recurrent absence and
tardiness become apparent, the employee may be subject to disciplinary action up to and including termination of employment. The following is
the generally prescribed method in which attendance infractions will be disciplined.

While each situation will be considered individually with consideration given to the employee’s length of service and other work performance
record when evaluating potential disciplinary/corrective action for excessive absenteeism, Avalon generally considers the following in a rolling 12-
month period as our guide:

• 5 unscheduled absences – 1st Written Warning


• 7 unscheduled absences – 2nd Written Warning
• 9 unscheduled absences – Termination of Employment

Three (3) unscheduled absences in a 90-day period should result a verbal warning and then subsequent absences will follow the pattern described
above.

An unscheduled absence that occurs the day before or after paid time off, will be count as two unscheduled absences. Patterns of absences such
as consistent Fridays or Mondays may also be grounds for increased discipline beyond the recommended pattern shown above.

The above guidelines may be limited by, and will be administered consistent with, the FMLA, ADA and/or other state or federal leave laws.

Introductory Period Employees

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Employees in their Introductory period (first 90 days), who have two (2) or more absences or tardiness may have their employment with Avalon
terminated for excessive absenteeism.

D. No Call / No Show
If you do not come to work when you are scheduled and do not contact your supervisor or other designated contact person within two (2) hours
of your scheduled start time, we will consider it a “No-Call/No-Show.” A No-Call/No-Show will be considered the same as job abandonment, and
your employment will be terminated unless there are significant extenuating circumstances. The Regional Vice President and Human Resources
Business Partner for your region must approve any exceptions to this policy after considering your explanation of your failure to come to work or
to timely call in.

E. Calling in During Holidays


Calling off work on the day before an Avalon designated holiday, the day of the holiday, or the day after a holiday will be treated as two (2)
absences, and will move the employee to the next appropriate step in the disciplinary process.

F. Cell Phone Use


While at work, employees are expected to exercise the same discretion in using personal cellular phones as they would in use of company
phones. Excessive personal calls during the workday, regardless of the phone used, can interfere with an employees’ productivity. To promote
a productive work environment and increase the safety of our staff and residents, employees are expected to make personal calls or send personal
text messages during breaks or lunch periods, preferably in a non-working area. Employees may carry such devices but are expected to set
devices to silent or vibrate mode during working hours so that incoming calls, texts or other notifications do not disrupt normal workflow. If the
employees’ use of such devices become excessive, cause disruption or loss of productivity, the employee may be subject to disciplinary action.

G. Solicitation and Distribution Activities


Solicitation, distribution and posting of materials at the facility or on facility property by any employee or non-employee are prohibited, except as
described in this section. The sole exceptions to this no-solicitation/distribution rule are charitable and community activities approved in advance
by Management.

Non-employees may not solicit employees or distribute literature of any kind at the facility at any time. Except for subcontractors and recognized
vendors with a business-related reason to enter a work area at the facility, employees may only admit non-employees to work areas with prior
written approval of the Administrator or Director of Nursing or as part of a Company-sponsored program. These visits should not disrupt workflow.
Employees who visit the facility during periods they are not scheduled to work are subject to the same rules and restrictions regarding
solicitation/distribution and access to work areas as non-employee visitors to the building. Former employees may only enter the premises with
prior written approval from the Administrator or Director of Nursing and are subject to the same restrictions regarding access to work areas as other
non-employees.

Employees may not solicit other employees or distribute literature of any kind during work times or in any work area at any time, except in conjunction
with a Company approved or sponsored event. Solicitation materials are prohibited on facility bulletin boards, and throughout Company
communication systems, including e-mail. All non-business-related postings require prior authorization from the facility Administrator.

H. Dress Code and Personal Appearance


Personal appearance matters. We expect all employees to dress in a manner proper for their position and the work they perform. While specific
expectations regarding, dress may be identified for employees in specific departments or who perform certain job functions, all employees are
expected to comply with the following:

• Wear your Avalon approved identification badge above your waist. Make sure your name and photo (if required by state law) are easily
seen.
• Make sure your dress or appearance meet professional standards cohesive to your position. Your appearance cannot get in the way of
your work. Your clothes should be neat, clean, pressed, and appropriate in length. Clothing should cover your body in a manner that does
not reveal your stomach, bottom, or breasts.
• Your clothes may not have distasteful language or logos, slogans, writing or offensive pictures. The exception to this is small logos of a
manufacturer if they do not otherwise detract from your appearance.
• Make sure your clothes and accessories, such as jewelry, don’t get in the way of your ability to use proper safety precautions and sterile
techniques.
• Wear proper footwear. Footwear should be clean and safe for your duties and your work area. If non-slip footwear is required, you must
wear footwear with non-slip soles. Sandals are unacceptable in the work environment.
• If you wear scrubs, they should be clean, neat, and free of holes. They should meet all the standards listed above.
• Keep your hair, beards, and moustaches clean and well-groomed always. Make sure they don’t get in the way of your ability to use proper
safety precautions and sterile techniques.
• Make sure your hair and accessories are worn in a way that they do not come in contact with the residents, and don’t create a safety or
sterile hazard. This includes your necklaces, earrings, and hair decorations such as glitter or beads. Hair and accessories should not get

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in the way of your job duties. Your department or work area may set certain rules about what jewelry or piercings that can be worn while at
work.
• Keep your fingernails clean, presentable, and of a professional length so they do not pose a safety or infection control problem. If you
provide direct care, your nails cannot be more than ¼-inch past the end of your fingertips.
• If you have tattoos, they should not conflict with your ability to perform your job duties. If a potential conflict is identified (based on, among
other criteria, perceived offense, community norms, perceived affiliations or complaints) you will be encouraged to identify appropriate
solutions (such as covering the tattoos or transferring to another position).

The guidelines described in this dress code are not intended to prohibit any employee from wearing any attire protected by applicable federal or
state laws.

I. Use of Company Equipment


The Company provides supplies, equipment, and materials that are needed for you to do your job. These items should be used only for Avalon’s
purposes. You should use care when you use Company equipment and property and use it only for the purposes it is intended. This includes
computers, telephones, postage, fax, and copier machines. You may use this equipment for non-business purposes in an emergency and only
with the permission from your supervisor. If you use these or other Company equipment for non-work-related reasons and it results in a charge
to Avalon, let your supervisor know so that reimbursement can be made.

You should report loss, damage, or theft of this equipment immediately. If you are negligent in how you use or care for Company property, you
may face disciplinary action up to and including termination.

You are not to allow anyone, including other employees, to use your access card, security clearance, passwords, computer equipment or other
electronic items without your supervisor’s permission.

When you terminate your employment with Avalon, you must return all Company property, uniforms, equipment, work products and documents
upon termination.

1. Internet and Computer Use


The Company may provide employees with access to its computer and e-mail system that may include internet access. Computer e-mail and internet
are provided for business purposes only, although employees may use e-mail or internet for personal reasons on an appropriate, limited basis subject
to the following:

(a) All communications and stored information transmitted, received or contained on the Company’s systems are the Company’s property.

(b) Communications on the Company’s computer are not considered private. By using the Company’s computer network, employees are
consenting to allow their communications and actions to be monitored at the Company’s discretion. Employees have no expectation of
privacy to anything on the Company’s computers.

(c) The following list contains examples of computer activities that may subject employees to discipline up to and including termination.
Disciplinary matters are handled on a case-by-case basis. This list is not a complete list of all computer activities that may subject employees
to discipline but only contains examples:

• Viewing or circulating material with sexual or violent content, offensive language, derogatory comments toward any class of people, or
content that otherwise violates any Company policy or which the Company finds offensive;
• Transmitting trade secrets or confidential and proprietary information of the Company;
• Any accessing, viewing or sharing of confidential patient information for non-business or position related reasons
• Purchasing, downloading, copying or sharing unlicensed computer software or copyrighted information that is not authorized for
reproduction;
• Downloading of any programs, data or other material except as expressly approved by the Company;
• Visiting game or adult sites;
• Transmitting maliciously false or threatening communications;
• Any activity constituting or promoting a criminal offense or that potentially gives rise to civil liability;
• Excessive personal use;
• Any use that is harmful to the Company’s computers, systems, or business interests;
• Any use for a personal business or the business of a third party;
• Any computer usage that results in direct cost to the Company.

2. Social Media
The Company recognizes that its employees may contribute content to public communications on websites, blogs and business or social
networking sites not operated by the Company. However, inappropriate material on such sites has the potential to cause damage to the Company
as well as its employees, residents, business partners and/or suppliers. For this reason, all employees must agree to not to publish any material,

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in any form, which identifies themselves as being associated with the Company or its residents, business partners or suppliers. All employees
must also refrain from posting, sending, forwarding or using, in any way, any inappropriate material including but not limited to material that is
defamatory or could adversely affect the image, reputation, viability or profitability of the Company and that contains any form of Confidential
Information relating to the Company, its employees, residents, business partners and/or its suppliers. Employees may not knowingly or maliciously
spread false information about the Company.

6.10 Standards of Conduct


The following list of rules and offenses are examples of conduct that may subject employees to discipline. Any violation of any one of these rules, any
other rules or any unacceptable behavior, as determined by the Company in its sole discretion, may subject employees to discipline up to and including
termination. Each situation is handled on a case-by-case basis. This is not a complete list of all rules and offenses that may be subject to employee
discipline, but merely examples of conduct deemed unacceptable.

The following section lists conduct that is deemed unacceptable in the workplace. You will likely be subject to corrective disciplinary action up to and
including possible termination of your employment if you:
• Damage, lose or destroy Company, employee or resident property due to willful or careless acts.
• Violate Company work rules or Standards of Conduct described in this Handbook and through trainings provided.
• Engage in loafing on the job, failure to perform work, inefficient performance, incompetence or neglect of work.
• Have unexcused absences, tardies or leaving early without prior approval.
• Fail to work in a cooperative manor with co-workers during work time.
• Engage in gambling, horseplay or use vulgar, profane, obscene or abusive language while at work, on Company property or on Company
time.
• Unwillingness or inability to work in harmony with others, backbiting, backstabbing, gossiping, discourtesy, conduct creating disharmony,
irritation or friction.
• Smoke or chew tobacco in unauthorized areas (includes use of e-cigarettes and/or vapes).
• Work or cause unauthorized overtime.
• Make comments about co-workers that violate the Company’s policy against discrimination and harassment.
• Conduct personal business on Company time, including extended personal use of phones, computer or the Internet.
• Are absent from your assigned work station during the workday without authorization.
• Use telephones, mail system or other employer-owned equipment without authorization or exceed the scope of authorized use.
• Violate any other commonly accepted, reasonable rules of responsible personal conduct, appearance or cleanliness.
• Fail to record work time accurately, including working “off the clock” without completing a Time Clock Adjustment form timely.
• Have excessive time-clock “missed punches.”
• Fail to attend required in-service training and staff meetings
• Fail to maintain current professional registration, license and/or certifications where required to carry out your job duties or fail to notify your
supervisor immediately of any changes to your professional licensing.
• Discuss or otherwise disclose confidential or proprietary information in violation of federal or state laws, regulations, professional standards
and/or Company policy.
• Violate HIPAA, HITECH and/or Affordable Care Act privacy rules (violations deemed to be significant or intentional by the Company in its
sole discretion may result in immediate termination of employment)
• Violate any Company policy.
• Fail to report and/or to take precautions to prevent the spread of a contagious disease.
• Interfere with another employee’s right to report any concerns regarding a workplace issue.
• Violate Company security and/or safety rules or standards.

The following conduct will NOT be tolerated at any Avalon Health Care Group facility. Your employment is likely to be terminated immediately if you:
• Falsify an employment application or any other Company record or document. This can be either a written or electronic company record
including time cards (false in or out punches), Time Card Adjustment forms, job applications, other personnel forms, resident records,
financial records, material requisitions, and the like. Helping a co-worker to falsify company records is also a violation. Clocking in or out for
a co-worker or completing a co-worker’s timesheet is also a falsification of company records. Dishonesty or falsification in any form or
degree, including making intentionally misleading statements, rumors or innuendo will also be deemed a violation of this standard of conduct.
• Engage in theft or unauthorized possession, removal or use of property belonging to the Company, its residents or other employees.
• Are under the influence of, possess, sell or use alcohol or illegal drugs during work time or while operating Company-owned vehicles and
equipment or are impaired at work whether due to use of alcohol, legal or illegal drugs.
• Refuse to submit to a drug/alcohol screen requested by the Company.
• Engage in fighting, threatening, bullying, intimidating or coercing others or engaging in any other act of workplace violence, as determined
by the Company in its sole discretion.
• Engage in significant or pervasive acts of sexual or other harassment of co-workers or customers on or off the job.
• Violate health or safety rules or failing to report an accident or unsafe condition.
• Fail to cooperate in any investigation.
• Engage in disrespectful or abusive conduct toward management, a fellow employee, residents or visitors.

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• Possess, enter with or use of weapons, firearms or explosives inside the workplace or in Company vehicle.
• Refuse to perform work as directed (insubordination), unless covered under an approved transitional duty, ADA, Pregnancy or FMLA
limitations.
• Harass or retaliate against another employee for a good faith reporting of suspected misconduct.
• Are convicted of a felony, or a misdemeanor that is job-related. Exception to this is if federal or state law prohibits work-related disciplinary
action for this conviction.
• Abandon your job. Job Abandonment, includes but not limited to: walking off the job without permission, No-call/No-show (failure of timely
notification to supervisor or failure to show for shift), failure to return from an approved extended leave of absence.
• Sleep on the job.
• Fail to report a resident’s physical injury or a resident’s complaint of injury.
• Fail to report abuse or neglect of a resident that you observed or that you reasonable believe may have occurred.
• Engage in resident abuse or neglect of any kind.

6.11 Corporate Compliance


Avalon Compliance Program is overseen by the Chief Compliance Officer (CCO). The compliance standards are expectations for all employees,
contractors and vendors. The compliance goal is to maintain a structure and process that promotes ethical behavior and compliance with legal
requirements and company policies, resulting in quality care, accurate financial practices and organizational excellence. This program includes written
code of conduct, establishment of a robust compliance committee, education and training, monitoring and auditing, reporting mechanisms, ensuring
delegation of duties to ethical employees, enforcement and compliance risk assessments. If there are concerns, complaints or potential violations of
company polices; regardless of how you report a concern, you may remain anonymous, if you wish. However, Avalon maintains a strict nonretaliation
policy to prohibit reprisals against anyone who makes a good faith report of their concerns. There are various ways to report: 24-hour hotline: 1-877-
874-8416; email: compliance@avalonhealthcare.com; compliance department 801-325-0165 or web site: https://avalonhci.alertline.com/gcs/welcome

VII. Resignation, Termination & Post-Employment


7.1 Notice of Resignation
Avalon operates under the rule of at-will employment. This means we do not promise that your job will last for a certain time. It means you can end
your employment with us at any time for any reason, or no reason. Avalon has the same right; we can end your employment with us at any time, with
or without reason. We can also transfer to another position, location, department or demote you at any time.

To enable the facility to effectively plan to cover a departing employee’s duties and responsibilities, Avalon expects employees to give advance written
notice of their intent to resign. Hourly employees are expected to give at least two weeks’ (14 calendar days) written notice. Salaried (exempt)
employees are expected to give at least 30 calendar day’s written notice. Employees are expected to work all their regularly scheduled shifts through
their notice period and such notice should not include any scheduled vacation days. Once an employee has submitted his/her notice of resignation, it
may only be withdrawn with approval of the facility Administrator.

Unless otherwise required by law, employees will only receive payment for accrued but unused vacation hours if, they: 1) provide the appropriate
written notice of resignation, 2) do not call off for a scheduled shift during their notice period, 3) return all Company property, and 3) satisfy any other
written requests related to their separation from employment.

7.2 COBRA Benefits


COBRA is the Federal Consolidated Omnibus Budget Reconciliation Act of 1985. COBRA can be of help if you leave your job with Avalon or if you
lose eligibility to be covered under our group health insurance program. Under COBRA you and your eligible dependents may have continued coverage
under our health insurance program for a certain time. Under the law, continuing health insurance through COBRA is at your own expense. You can
talk to your HR/Payroll Coordinator or Business Office Manager to learn more.

7.3 Return of Company Property


If you were given Company property, you need to return it when you resign. This includes any computer equipment, cell phones, keys, parking passes,
or Company credit cards. It also includes any files, documents or materials you may have created or copied during your employment. You will be
responsible for any lost or damaged items. We may ask you to sign an authorization form allowing us to deduct the value of any property issued and
not returned from your final paycheck.
7.4 Rehiring Former Employees
If you left Avalon under good standing, and you want to work with us again, we will consider your application for re-employment. When deciding
whether to rehire you, we will look at the circumstances at the time you resigned and your demonstrated past work performance and attendance. If
you are offered a position, you will be subject to our usual pre-employment procedures and introductory period.

A. Reinstatement of Seniority
If you were an employee of Avalon with at least 90 days of continuous employment, and are rehired within one year of the date of termination,
you will be able to continue your benefits at the level you enjoyed at time of termination from previous employment with Avalon.

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7.5 Post-Employment Inquiries
Avalon does not respond to verbal requests for references. You must complete a signed release form before any member of Avalon can provide a
reference to future employers. Without a signed release, Avalon will only provide your job title and dates of employment to a prospective employer.
With a written and signed authorization, we will provide salary information to a financial institution on your behalf.

If you work at Avalon, and you are asked for information about another staff member, DO NOT respond, unless doing so is part of your job. Instead,
let your supervisor know that you were contacted, and give him or her details related to the inquiry.

VIII. MISCELLANEOUS POLICIES


8.1 Driver’s License and Driving Record
If your work requires that you drive a motor vehicle, you must have a valid driver’s license and a driving record that our insurer will accept. Once you
are placed in a job that requires you to drive a motor vehicle, you must maintain an acceptable license and record if you hold the position. You will be
asked to give Avalon a copy of your driving record from time to time. If there are changes to your driving record, you must tell you supervisor right
away. If you do not tell your supervisor about changes in your driving record, you may face disciplinary action, up to and including
termination.

8.2 Employment of Relatives and Nepotism


Because of the potential for disruption of operations caused when immediate family members are employed in the same workplace, Avalon reserves
the right to limit the circumstances under which family members may be hired to work and/or continue their employment in the same facility or other
work group. Immediate family includes: spouse, domestic partner, parent, child, sibling, in-law, aunt, uncle, niece, nephew, grandparent, grandchild,
and members of your household. This policy also applies to individuals in a romantic relationship.

A. Hiring Family Members


In general, your immediate family member will not be hired if doing so would mean that:
▪ One family member is supervising (either directly or indirectly) the other family member;
▪ We believe it could create an adverse effect on work performance (yours, your family members’ or co-workers’); or
▪ We believe it could create a real or perceived conflict of interest, including the perception of favoritism.

If we do not believe that employment of a family member will create any of the above circumstances, members of your immediate family will be
considered for employment based on their qualifications like any other applicant.

B. Continued Employment of Family Members


Your family or romantic relationships may be considered when we make decisions about assigning, transferring, or promoting you. We, in our
sole discretion, may reassign family members or individuals in romantic relationships, or we may determine that one of you can no longer be
employed, to address a real or perceived conflict of interest.

There may be times when two employees become immediate family members or they start a romantic relationship only after they have been
hired. In these cases, both individuals may keep their jobs if none of the situations listed above result. We will make reasonable efforts to assign
job duties to minimize real or perceived concerns related to the employment of employees with these types of relationships. If concerns arise over
effects we believe the relationship is having on operational efficiency, safety, security, or employee morale, we will discuss these concerns with
both employees. This may include obtaining their input on which of them will resign or be terminated if other, acceptable options are not identified.
The Administrator, along with Human Resources, will make a final decision concerning who will remain employed based on business needs.

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Avalon - Contact Information
Avalon encourages all employees to bring questions or concerns about workplace issues or this Handbook to their immediate supervisor or the Director of
Nursing or facility Administrator first. However, Avalon is committed to open communications and employee access to corporate staff who should be viewed as
additional resources for all employees as well as supervisors. To this end, the following contact information is provided for your reference:

Type of Issue/Question Contact Person Phone Number Email


* General handbook interpretation Tina Privett, HRBP Utah, Office: 801.990.0362 tina.privett@avalonhealthcare.com
or other employment-related California, Arizona Mobile: 801.231.2207
questions
* Sexual harassment Matt Halliday, HRBP Hawaii Mobile: 360.630.0309 matt.halliday@avalonhealthcare.com
* Disability or other discrimination
Karen Johnson, HRBP Mobile: 801.201.9235
complaints/concerns
Oregon, Washington, Office: 801.478.2417 karen.l.johnson@avalonhealthcare.com
* Assistance with problem resolution
Mountain West
process

* Worker’s Compensation Julie Tullock, Director of Office: 541-284-7084 julie.tullock@avalonhealthcare.com


* Light or Temporary Transitional Occupational Safety and Mobile: 541-912-8689
Duty questions Health
*Benefits: Health, dental, life, LTD, Galligher BAC Office: 855.614.7081 www.avalonemployeebenefits.com
STD, ADD, etc.….
*Director of Employee Benefits Caroline McKenzie Office: 541-284-7076 caroline.mckenzie@avalonhealthcare.com

* 401(k) account management; ABG Rocky Mountain Office: 800.421.4758 www.abgrm.com


changes to contribution, allocations or
distributions
Soltis Office: 800.735.1601 www.soltisadvisors.com
* 401(k) investments advise
caroline.mckenzie@avalonhealthcare.com
*Director of Employee Benefits Caroline McKenzie Office: 541-284-7076

* Payroll issues, iPay Employee Hotline Phone: 888.837.1266

* General questions/concerns Byron Kirton Office: 801.325.0177 byron.kirton@avalonhealthcare.com


about your facility (after exhausted Senior Vice President HR Mobile: 801.870.0522
internal resources)

*Code of Conduct, Corporate Chief Compliance Officer Office: 801.325.0165 compliance@avalonhealthcare.com


Compliance; concerns, complaints,
and potential violations of state or Compliance Hotline: Web reporting:
federal laws or regulations 1.877.874.8416 https://avalonhci.alertline.com/gcs/welcome

* No-one has been able to give you Lane Bowen & Alan Hash Office: 801-596-8844
an adequate answer to your CEO & COO
questions:
~The Buck Stops Here ~
-

Avalon Health Care Group


WASHINGTON
Vacation, Sick Leave & Holidays

Vacation
Avalon provides full-time and part-time employees with paid vacation as follows:

A. How Vacation is Accrued and Earned. Vacation hours are accrued by full-time and part-time employees from their date of hire on
hours worked and any paid leave hours (i.e., vacation, sick, holiday, etc.) up to eighty (80) hours per pay period based upon the
employee’s length of service and accrual profile as follows:

Basic Accrual Profile


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 1 year 0.0218 45 hours 141 hours
1 year but less than 5 years 0.0385 80 hours 141 hours
5 years but less than 10 years 0.0500 104 hours 141 hours
10 or more years 0.0654 136 hours 141 hours

Department Heads & Salaried Employees


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 1 year 0.0241 50 hours 141 hours
1 year but less than 5 years 0.0407 85 hours 141 hours
5 years but less than 10 years 0.0522 109 hours 141 hours
10 or more years 0.0676 141 hours 141 hours

Administrators/Directors of Nursing & Regional Staff


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 1 year 0.0484 101 hours 141 hours
1 year but less than 5 years 0.0522 109 hours 141 hours
5 years but less than 10 years 0.0676 141 hours 141 hours
10 or more years 0.0676 141 hours 141 hours

Executives (RVPs and above)


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 1 year 0.0676 141 hours 141 hours
1 year but less than 5 years 0.0676 141 hours 141 hours
5 years but less than 10 years 0.0676 141 hours 141 hours
10 or more years 0.0676 141 hours 141 hours

Accrued vacation hours are not earned until the end of each pay period and employees must be actively employed in a vacation-
eligible status to earn accrued vacation hours and have them added to the employee’s Vacation Bank. Employees must meet the
90-day introductory period before being eligible to use vacation leave. Employees who reach their Accrual Cap will stop accruing
additional vacation hours until the first full pay period following the pay period in which the employee uses vacation hours to bring
his/her Vacation Bank hours below the Accrual Cap.

B. Effect of Status Changes. Employees whose employment status is changed to a higher or lower Vacation accrual profile will begin
accruing vacation hours at the new accrual rate beginning the first full pay period starting on or after the effective date of their status
change. Employees whose status changes to one that is not eligible for vacation accrual (i.e. from Full-Time or Part-Time to On Call
or Casual) will stop accruing vacation as of the beginning of the pay period in which their status change becomes effective and will
be paid out any earned vacation in the same manner as an employee who terminates employment with proper notice (i.e. 50% of
value).

C. Vacation Use and Scheduling. Employees are encouraged to use their vacation to take regular time off each year. However,
vacation may be approved for use in less than full day increments of at least one (1) hour or more. Employees may use
accrued/earned vacation for planned absences from work and may also request to use vacation hours to cover scheduled shifts from
which the employee was called off due to overstaffing/low census or that the employee missed due to illness or other unanticipated
reasons that prevented the employee from working. Requests to use vacation hours for planned absences must be submitted to and
approved by your supervisor or Department Head in advance.

Washington - 2017 Page | 2


Planned vacation usage must be coordinated to ensure that operational needs are met and adequate staffing is maintained to care
for our residents. While every reasonable effort will be made to grant requests for planned vacations at the desired time, vacations
cannot interfere with a department’s operation. If conflicts arise in requests for vacation, preference will be given to the first employee
who requests the time off.

In general, if a vacation request is submitted 30 days or more in advance of the first requested day off, supervisors are expected to
respond in writing within two (2) weeks of the date of a vacation request is received. Vacation requests should generally be approved
if the employee has sufficient vacation hours available to cover the requested time off and the supervisor does not know of a specific
conflict that would prohibit approving the vacation request at the time he/she responds to the request.

However, if other employees in the same job classification, assigned to the same unit and shift, have already been approved for
vacation during the period requested, or if the department otherwise does not have sufficient staff to cover all scheduled shifts,
approval of vacation requests may be denied or delayed until adequate staffing is available. Once approved, vacations can only be
cancelled by mutual agreement between the employee and his/her supervisor. Approved vacations may also be cancelled if the
employee uses vacation hours to cover unscheduled absences (FMLA, etc.) occurring between the date his/her vacation was
approved and the date it was scheduled, leaving insufficient vacation hours to cover the scheduled vacation or if the employee submits
a notice of resignation that includes scheduled vacation days as part of the fourteen (14) calendar days’ advance notice (30 days for
exempt employees).

Except under dire financial circumstances affecting the employee and subject to the approval of the Regional Vice President for your
region and Avalon’s Vice President-Human Resources, vacation time will not be permitted to be “cashed out” for pay instead of being
used.

D. Payment of Discounted Earned but Unused Vacation Upon Termination. An employee who voluntarily terminates his/her
employment with Avalon (resigns) after completing one-year of employment and providing at least fourteen (14) calendar day’s written
notice (30 days for Department Heads and Salaried/Exempt employees) shall be paid 50% of unused vacation that was earned up
to the date of termination. Employees who terminate their employment within one-year from their most-resent date of hire or who are
involuntarily terminated, regardless of length of service, or who call off for scheduled shifts during their notice period are not eligible
for payout of unused vacation benefits. Employees are not permitted to use vacation hours to cover any portion of their resignation
notice period, even if their vacation was previously approved.

Sick Leave
Sick leave hours are accrued by full-time, part-time and on-call employees from their date of hire on hours worked and any paid leave
hours (i.e., vacation, sick, holiday, etc.) up to eighty (80) hours per pay period based upon the employee’s length of service and accrual
profile as follows:

Basic Accrual Profile


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 - 5 years 0.0115 24 hours 192 hours
5 years but less than 10 years 0.0192 40 hours 192 hours
10 or more years 0.0231 48 hours 192 hours

Department Heads & Salaried


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 5 years 0.0115 24 hours 192 hours
5 years but less than 10 years 0.0192 40 hours 192 hours
10 or more years 0.0231 48 hours 192 hours

Administrators/Directors of Nursing & Regional Staff


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
0 – 5 years 0.0192 40 hours 192 hours
5 or more years 0.0231 48 hours 192 hours

Executives (RVPs and above)


Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
Any 0.0231 48 hours 192 hours

Washington - 2017 Page | 3


On-Call Employees
Accrual Rate
Length of Service (per paid hour) Maximum Annual Accrual Accrual Cap
Any 0.0333 40 hours 40 hours

Accrued sick leave hours are not earned until the end of each pay period and employees must be actively employed in a sick leave-
eligible status to earn accrued sick leave hours and have them added to the employee’s Sick Leave Bank. Employees who reach
their Accrual Cap will stop accruing additional Sick Leave hours until the first full pay period following the pay period in which the
employee uses Sick Leave hours to bring the hours his/her Sick Leave Bank below the Accrual Cap.

B. Sick Leave Use: All sick leave use is subject to the following:

• You must be employed 90 days before you can use sick leave.
• You must have the sick hours accrued in order to use sick time.
• Sick leave will be paid out in increments equal to the actual number of hours an employee missed due to illness/injury or another
qualifying event.
• You may use your sick leave for absences caused by your own illness/injury or, as required by state law, to attend to the illness
of a dependent child, or to care for a spouse, domestic partners, siblings, parent, parent-in-law or grandparent with a serious or
emergent health condition.
• Your supervisor may require a doctor’s note before authorizing payment of sick leave.
• If you return to work after the four (4) day on sick leave, you must bring a doctor’s release.
• Family and medical leave usage, where applicable, will begin no later than the forth (4th) day of sick leave.
• There is no payment for unused sick leave upon termination.
• Employees are encouraged to, but will not be required to, assist the facility in finding their replacement in the event the employee
is too ill to report for work him/herself.
• Employees who call in sick falsely may be subject to discipline up to and including possible immediate termination.
• Absences for which an employee uses earned/accrued sick leave may still be counted under the facility’s absenteeism policy
unless prohibited by law.
• Employee who call off due to illness or for other reasons after submitting notice of resignation may forfeit their eligibility for
payment of accrued but unused vacation hours.

The Attendance & Tardiness provisions in this handbook will apply to unscheduled absences regardless of whether leave time is used. If
you think that your unscheduled absence falls under the Family and Medical Leave Act or other state or federal law protected leave, you
must notify your supervisor to ensure that unnecessary disciplinary actions do not take place.

Washington Sick Time


Avalon’s vacation and sick policy is in compliance with the Washington State Paid Sick Leave Law. If you choose to use all your sick
for reasons other than those covered under the Washington State Paid Sick Leave regulations, then you will have no additional days
available. Those who are not eligible for vacation and sick leave (PRN or on call employees will accrue sick time at the rate of .0333
and will be eligible to use sick time on their 91st day of employment. Time used for and designated as sick time is used in one hour
increments.

Sick Leave for On-call & Temporary Employees


On Call and Temporary employees are not eligible for vacation however they are eligible for Sick Leave. Sick Leave becomes available
the pay period following completion of 90 days of employment. Thereafter, Sick Leave Hours are earned and available on the 91 st
day of employment.

Employees earn Sick Leave hours based on hours worked. One hour of sick leave is earned for each 30 hours worked. The maximum
benefit is 40 hours per year. The employee may carryover 40 hours from one anniversary year into another; however, an employee
may never use more than 40 hours of sick leave per anniversary year. The Sick Leave benefit does not accrue on unpaid or protected
leaves of absence.

Sick Leave is provided to seek treatment or care for you or an approved family member with an illness or injury or for any other
purpose covered under WFLA or Washington State Paid Sick Leave regulations. If you choose to use all your sick leave for reasons
other than those covered under the Washington State Paid Leave regulation, then you will have no additional days available.

The employee must complete the Employee Leave Request Form for all absences, preferably at least 10 days before the requested
time off. In case of an unforeseeable situation, please give your supervisor or Administrator verbal or written notice as soon as possible
and then complete the Employee Leave Request Form within 3 days of returning to work. If you elect not to use mandated sick leave,
FMLA or WFLA protected leave, then you will lose your protections under these laws.

The Sick Leave benefit is not eligible for cash out or payout at separation of employment

Washington - 2017 Page | 4


Paid Holidays
Employees are eligible for holiday pay for the following six (6) holidays if they meet the requirements set forth below:
New Year’s Day Independence Day (4th of July)
Memorial Day Thanksgiving
Labor Day Christmas

A. Employees who do NOT work on the Holiday.


Full-Time hourly employees who have completed their 90-day Introductory Period and all salaried employees are the only employees
eligible for Holiday pay if they are not scheduled to work on the holiday. Such employees will be paid 8-hours of holiday pay for the
shift they would otherwise have worked on the holiday. Full-time hourly employees who fail to work their last scheduled shift
before and their first scheduled shift after the holiday may not receive Holiday Pay for that holiday.

B. Employees who WORK on the Holiday.


All other employees must actually work the holiday in order to be eligible to receive holiday pay. Employees working a full shift on a
holiday will be paid 8-hours of Holiday Pay in addition to their regular pay for the holiday shift worked. Salaried-exempt employees
generally will not receive additional compensation for working on a scheduled holiday. Similarly, all employees in departments that
are generally closed on a holiday are expected to take the holiday off.

Overtime Pay
As described in the General Employee Handbook

Meal and Break Periods


As described in the General Employee Handbook

Family Care Act (“FCA”) Leave


Washington’s Family Care Act (“FCA”) permits employees who have earned paid time off (such as PTO, sick leave, vacation, holiday and
some short-term disability plans) to use any available paid time off for the care of the employee’s minor child who has a medical condition
requiring treatment or supervision; or spouses, registered domestic partners, adult children who cannot care for themselves; or parents,
parents-in-law and grandparents with a serious health or emergency condition. In addition, FCA may be taken to care for a spouse or
registered domestic partner temporarily disabled because of pregnancy or childbirth.

If your leave is covered by FMLA or WFLA, Avalon Healthcare pays its share of premiums for your medical, dental, vision and life insurance
policies. To continue your coverage for these policies while you are on FMLA or WFLA leave, you will need to contact the Avalon
Healthcare’s Benefits Department to establish payment arrangement for your portion of these policies. If you fail to pay your portion of the
premiums for these policies, they will be terminated.

If you fail to return to work following your family medical leave, you will be terminated from your position and you may be required to
reimburse Avalon Healthcare for the full premium cost of your healthcare coverage paid on your behalf, unless a recurrence, continuation,
or onset of a serious health condition (or a serious illness or injury of a covered service member) occurs or the reason for not returning is
beyond your control.

Washington Family Leave Act (“WFLA”)


Washington’s Family Leave Act (“WFLA”) provides protections similar to eligible employees as those protections found in FMLA. Eligible
employees may take WFLA for up to 12 weeks. WFLA is unpaid unless an employee has paid leave to substitute. Leave under the WFLA
must be taken concurrently with any leave taken under the FMLA. However, any WFLA leave for a disability related to pregnancy or
childbirth is in addition to any leave granted under the FMLA or WFLA.

Pregnancy Disability Leave (“PDL”)


A pregnant employee, regardless of length of service to Avalon, is entitled to maternity leave for the period of actual disability due to
pregnancy of childbirth. If a pregnant employee is eligible for both PDL and WFLA, the two leaves will not run concurrently.

Washington - 2017 Page | 5

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