Pharmacist Payroll Policies

Administrative Guide

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Administrative Payroll Guide

CVS Rx Services, Inc. Revised: December 2017

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Table of Contents

Definitions ......................................................................................................................... 3 Overview of Pharmacy Payroll Practices…………………………………………………………… ...5

Pharmacist Night Rate (RNR) .............................................................................................. 6 Swapping Shifts ................................................................................................................. 6 Unpaid Time Off: Exempt Pharmacists ................................................................................ 7 Short Week / Long Week Rotations ..................................................................................... 8 Pharmacist Payroll Expectations .......................................................................................... 9 Holiday Pay Policy and Procedures (Exempt Pharmacists Only) .............................................11 Sick Pay Policy and Procedures (Exempt Pharmacists Only) ..................................................12 Vacation Pay Policy and Procedures (Exempt Pharmacists Only) ............................................13 Appendix A- Payroll Summary Sheet ............................................................................................ …17 Examples of Pharmacist Payroll Hours Entry .................................................................18 Payroll Training Examples ...........................................................................................20

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Definitions

The following list summarizes the meanings of Pharmacist Payroll terms as they are used in this Guide.

KEY TERMS The Company CVS Rx Services, Inc., which employs all Pharmacists who work in

CVS Pharmacy retail stores.

Exempt Pharmacist A Pharmacist scheduled to work in a pharmacy for an average of 30 hours or more per week is classified as an Exempt Pharmacist.

An Exempt Pharmacist is paid a Base Salary, which, in general, is intended to compensate the Exempt Pharmacist for all hours worked during a bi-weekly pay period. However, it may also be possible for an Exempt Pharmacist to earn additional pay in certain limited situations, as described in this Guide.

Non-Exempt Pharmacist

A Pharmacist scheduled to work in a pharmacy for an average of less than 30 hours per week is classified as a Non-Exempt Pharmacist.

A Non-Exempt Pharmacist is paid for hours worked on a bi-weekly basis and punch in and out at the POS. They are paid overtime in compliance with applicable laws.

Exempt Status The term “Exempt” refers generally to a colleague who is exempt from (not covered by) the minimum wage and overtime provisions of the federal Fair Labor Standards Act (FLSA).

Pharmacists are highly educated colleagues with advanced degrees who consult with customers and patients regarding their healthcare needs on a daily basis. Due to the expertise, education level, and professionalism required to be a pharmacist, their job duties fall into the professional exemption of the FLSA.

California Pharmacist

Pharmacists located in California are treated as non-exempt pharmacists, consistent with state law, and are paid on an hourly basis.

California Pharmacists are paid on a weekly basis and punch in and out at the POS. This Guide is not applicable to California Pharmacists. California Pharmacists should refer to the California Pay Policy in the Appendix.

Union Pharmacist

Union Pharmacists are Pharmacists who are covered by a collective bargaining agreement.

Union Pharmacists should refer to the applicable collective bargaining agreement. This Guide will apply except where it conflicts with existing practice under the collective bargaining agreement.

Puerto Rico Pharmacist

Pharmacists located in Puerto Rico are referred to in this Guide as Puerto Rico Pharmacists. Pharmacists in Puerto Rico follow the exempt Pharmacist guidelines, except where noted.

Field Manager District Leader in CVS Standalone locations and Pharmacy Supervisor in CVS in Target Channel locations.

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Definitions (continued) KEY TERMS

Base Salary An Exempt Pharmacist’s Base Salary is determined by multiplying his or her Base Hours per week times his or her Base Rate.

Every Exempt Pharmacist receives his or her Base Salary on a bi-weekly pay period schedule.

Base Hours The average number of hours an Exempt Pharmacist will be scheduled to work in a pharmacy per week, as determined by the Field Manager.

Base Work Schedule

The days and hours identified as the standard work schedule for Exempt Pharmacists, which runs Sunday through Saturday, determines their regular weekly schedule.

A “Scheduled Work Day” is a day that falls on the Pharmacist’s normal rotation.

Hours Under Base (HUB)

HUB is a pay code that identifies hours that are automatically paid when an Exempt Pharmacist submitted hours are less than their Base Hours, in a given pay period The HUB pay code ensures that an Exempt Pharmacist receives his/her full Base Salary each week, even if he/she has not worked Base Hours or submitted an approved reason for time off.

Repeated HUB payments to an Exempt Pharmacist may indicate poor attendance (if an Exempt Pharmacist does not have an approved reason for failing to work a scheduled shift) or a change in business need (if the business no longer needs the Exempt Pharmacist to work the same number of Base Hours).

HUB payments therefore should be monitored closely to determine whether disciplinary action and/or adjustment to Base Hours may be necessary.

Exempt Pharmacists cannot be asked or required to ‘make up’ or ‘owe back’ HUB hours paid outside of the pay cycle in which it was applied

Hours Over Base (HOB)

Scheduled hours worked in excess of Base Hours in a pay period are noted using the pay code HOB.

HOB hours are paid at the Exempt Pharmacist’s Base Rate, and they constitute a payment in addition to the Base Salary.

Scheduled hours worked filling extra shifts in stores are eligible for HOB payments.

HOB is not to be used to capture extra time during scheduled shifts (e.g. when an exempt pharmacist may stay a little later after a scheduled shift ends)

Short Week/ Long Week Rotating Schedule

Within a bi-weekly pay cycle, Exempt Pharmacists may establish a regular schedule in which they work less than their Base Hours in week 1 and over their Base Hours in week 2.

The total hours for the bi-weekly pay cycle must be equivalent to their Base Hours times 2.

This type of regularly recurring work schedule is called a Short Week/Long Week Rotation, and is described in the Short Week/Long Week section of this Guide.

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Definitions (continued) KEY TERMS

Swapping Shifts Swapping Shifts refers to an arrangement between two Exempt Pharmacists to trade hours or full shifts within one two-week pay cycle.

Rules for swapping shifts are described in the Swapping Shifts section of this Guide.

Overview of Pharmacist Payroll Policies

Exempt Pharmacists are Salaried

Exempt Pharmacists are those Pharmacists who are scheduled to work an average of 30 hours or more each week in a pharmacy. Every Exempt Pharmacist receives his or her Base Salary each bi-weekly pay period, and may also be eligible to earn additional pay in certain limited situations.

Exempt Pharmacists are not paid by the hour. In general, an Exempt Pharmacist’s Base Salary is intended to compensate the Pharmacist for all hours worked during the pay period, whether those work hours involve time on the bench, administrative work, attending meetings, completing or conducting training, or other duties as required by business needs.

An Exempt Pharmacist’s Base Salary is set by multiplying the average number of hours a Pharmacist will be scheduled to work per week (his or her Base Hours), times his or her Base Rate.

Once set, the Base Salary remains consistent, although work hours typically vary week to week. Base Salary (Base Hours and/or Base Rate) is subject to periodic review during employment.

As exempt, salaried professionals, Exempt Pharmacists are expected to use their judgment as to the total time they need to work in order to ensure the smooth operation of the pharmacy where they are scheduled. It is not unusual for an Exempt Pharmacist to arrive at his or her pharmacy before a scheduled shift, and to stay after the end of a scheduled shift. The Base Salary is intended to compensate the Exempt Pharmacist for any additional time worked before or after a scheduled shift.

Exempt Pharmacists may also be eligible for pay in addition to Base Salary in certain limited situations, which are described in this guide. (See sections on Pharmacist Night Rate (RNR) and Hours Over Base (HOB)).

Non-Exempt Pharmacists are Paid Hourly

Non-Exempt Pharmacists are those Pharmacists who are scheduled to work an average of less than 30 hours on the bench each week. Unlike Exempt Pharmacists, they do not receive a Base Hour Salary.

A Non-Exempt Pharmacist is paid for hours worked and is paid overtime in compliance with applicable laws.

Hours of work may vary week to week.

Non-Exempt Pharmacists Punch-In at the beginning of their shift and Punch-Out at the end of their shift using the Point-of-Sale (POS) register. This will allow for accurate capture of all hours worked.

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Non-Exempt Pharmacists should verify hours worked by reviewing their Time Card Report each week. Store Managers can assist with this process.

Pharmacist Night Rate (RNR)

Application of the Night Rate *National Standard

The differential rate (Pharmacist Night Rate) is only for Pharmacists working the overnight shift in a 24-hour location.

The Pharmacist Night Rate is $2.00 per hour except in Puerto Rico, California, and Union Markets.

Identify Eligibility for RNR

Review the following key points regarding RNR eligibility:

Eligibility for and payment of RNR begins at 12:00 am through shift-end. For example, if a shift is from 7:00 pm to 7:00 am, the Pharmacist will receive RNR for 7 hours (12:00 am to 7:00 am).

When Pharmacists are sick or on vacation, the night differential will not be paid.

Swapping Shifts

Know the General Rules for Swapping Shifts

Swapping Shifts refers to an arrangement between two Pharmacists who trade hours or full shifts with each other within one, bi-weekly pay cycle.

Swapped shifts should not result in HUB or HOB for Exempt Pharmacists. It also should not result in overtime for Non-Exempt Pharmacists.

All swaps of more than two consecutive shifts must be pre-approved by the Field Manager.

Shifts may not be swapped during the year as a means to take time off (saving vacation hours) with the intent to collect unused vacation hours at year end.

Know How to Submit Time

Exempt Pharmacists should not record swapped shifts

Non-Exempt Pharmacists should Punch In/Out using the Point-of-Sale (POS) register at the beginning and end of their shift to accurately capture all hours worked.

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Unpaid Time Off: Exempt Pharmacists

Know the Guidelines for Taking Unpaid Time Off

The table below outlines the guidelines when a Pharmacist has requested unpaid time off:

Time Period Payroll Guidelines

Less than One Week

Exempt Pharmacists cannot take a shift off as unpaid.

An Exempt Pharmacist will be paid a minimum of their Base Salary every pay period with very limited exceptions.

Exempt Pharmacists can swap with another Pharmacist (within the same bi-weekly pay period) or use vacation time if you need to take a day off.

Full Week Exempt Pharmacists can take a full week off without pay if approved in advance by their manager. NOTE: This may impact exempt status and should be carefully considered prior to the Pharmacist taking the time off. If an Exempt Pharmacist takes a full week off and no time is submitted, they will not be paid for the week and no HUB will be paid.

Exempt Pharmacists may not swap time if they expect to need more than one (1) week off. In this circumstance, they should request a personal leave of absence or other leave pursuant to the CVS RX SERVICES, INC. Leave of Absence policy. Leaves of absence can be requested by Pharmacists via myHR (1-888-694-7287) or by logging into myHR (myHR.cvs.com) to apply.

Unpaid Leave of Absence (LOA)

Exempt Pharmacists who need to take a leave of absence pursuant to the CVS RX SERVICES, INC. Leave of Absence policies should contact myHR at 1-888-694-7287 or myHR.cvs.com and refer to the applicable leave policy for guidance.

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Short Week / Long Week Rotations

Define a Regularly Recurring Short/Long Week Rotation

Exempt Pharmacists may request a regular schedule in which they work less than their Base Hours in week 1 and over their Base Hours in week 2 of a bi-weekly pay cycle.

The total schedule hours for the bi-weekly pay cycle must be equivalent to their Base Hours times 2.

This program is not intended to be sporadic in nature but must be a regularly recurring schedule established in agreement with and approval of the Pharmacy Manager and Field Manager.

Schedule Vacations

Review the guidelines below regarding scheduling vacation time:

Exempt Pharmacists may not schedule their vacations so that all or a majority of the vacation time occurs during the long week.

Vacation time should be spread evenly between short and long weeks.

Exceptions must be approved by the Pharmacy Manager and Field Manager.

Know How to Submit Time

A short week/long week rotation worked in accordance with the schedule should not result in HUB for the short weeks or HOB for the long weeks.

Exempt Pharmacists should indicate Base Hours if a rotating schedule is worked (e.g., if the Pharmacist works a schedule of 30 hours in week 1 and 50 hours in week 2, Base Hours of 40 should be reported each week).

Additional hours worked (e.g., picking up an extra shift during the short week) should be reported in the week in which the hours were worked.

When an event such as a holiday, vacation, sick or funeral occurs, it is important to subtract the hours not worked from the Base Hours schedule instead of the short or long week schedule. This prevents inaccurate payroll reporting.

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Pharmacist Payroll Expectations

Roles & Responsibilities

There are several areas of responsibility to ensure the payroll process is accurate and complete. An overview of this process is provided in the table below.

Roles Responsibilities

Pharmacy Scheduler

Maintains designated Market schedule

On a weekly basis, completes Exempt floater pharmacist payroll if applicable

Raise issues to Pharmacy Manager and Field Manager, as needed, related to schedules and payroll

Field Managers Ensures appropriate district pharmacy scheduling to fulfill business requirements

Follows up on any scheduling questions or concerns

Follows up on any payroll concerns

Communicates Graduate Interns’ schedule to store management, if necessary

Exempt (FT) Floater Pharmacist

Works with Pharmacy Scheduler to support district pharmacy scheduling needs

Informs Field Manager of any changes in schedule or any special hours to be reported. All changes to schedule must be reported to the Field Manager at least 48 hours in advance, when feasible.

NOTE: The Scheduler fills out the Payroll Sheet for Exempt Floater Pharmacist payroll, where applicable.

Non-Exempt Pharmacists and Non-Exempt Floater Pharmacists

Non-exempt Pharmacist hours are recorded via the Punch-In/Punch-Out process at POS following the same procedures as hourly colleagues.

Exempt Pharmacist

Weekly Submission: Pharmacist Payroll Summary Sheets must be submitted on a weekly basis.

General: Exempt Pharmacists record Base Hours worked, any vacation time or sick time, and additional shifts worked on the Pharmacist Payroll Summary Sheet. o Home Store:

Hours in the Pharmacist’s home store should be recorded at the home store.

Hours over base should be recorded in the home store (unless the shift was a swapped shift, in which case it should not be recorded).

Vacation and sick hours should be recorded at the home store.

o Hours worked in another store: Hours worked at another store should be recorded at that

store; provided that if the hours are being reported to an Admin, they may be recorded on one sheet.

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Exempt Pharmacist (continued)

o Holiday pay for Exempt Pharmacists is automatically added by Workbrain and does not need to be recorded on the Pharmacist Payroll Summary Sheet.

o Total the Pharmacist Payroll Summary Sheet and provide it to Front Store Management no later than Saturday or as directed by the Field Manager.

o The only time an Exempt Pharmacist should be reporting hours less than Base Hours is if the Pharmacist actually worked less than their agreed-to Base Hours within the two week bi-weekly payroll cycle.

Non-Store Hours: Meeting time, training time, and other time other than filling shifts in a store are captured in the Exempt Pharmacist’s Base Hour salary and should not be recorded as additional hours on the Pharmacist Payroll Sheet.

Long Week/Short Week Rotations: Exempt Pharmacists should indicate Base Hours if a rotating schedule is worked bi-weekly (e.g., 30 hours in week 1, 50 hours in week 2; Base Hours of 40 should be reported each week).

Swapped Shifts: Swapped shifts should not be recorded on the Payroll Summary Sheet.

Interns, Graduates

Hours are recorded via the POS Punch-In and Punch-Out process

Store Manager/ Scheduler

Ensure Pharmacist Hours reported weekly are equivalent to actual hours worked by each designated Pharmacist.

Ensure that all pharmacy shifts have been captured in the total Pharmacist hours reported to ensure that all Pharmacist time has been entered and paid appropriately (i.e., there is no missing time).

Know the General Expectations

Review the general expectations associated with Pharmacist payroll below:

Falsification of payroll is a violation of our company policies and may result in disciplinary action up to and including immediate termination. Exempt Pharmacists must accurately record any time that affects HUB, HOB, Sick (SICK), or Vacation (VACA) time. Non-exempt Pharmacists should verify hours worked by reviewing their Time Card Report each week.

Pharmacists are strongly encouraged to use their allocated vacation time within the calendar year.

The Field Manager, in coordination with the Pharmacy Scheduler, approves all Floater Pharmacist coverage changes. Pharmacists should not arrange Floater Pharmacist coverage themselves.

All Pharmacist Payroll Summary Sheets are reviewed and provided to the Store Manager/Scheduler by the Pharmacist on duty no later than Saturday unless otherwise directed by the Field Manager.

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Graduate Intern hours approved by the Field Manager are billed to special hours pay code ICH. Workbrain will cap the Graduate Intern budget at 195 hours per intern.

Holiday Pay Policy and Procedures (Exempt Pharmacists Only)

Eligible Employees

This policy applies to all Exempt Pharmacists except:

Union Pharmacists

California Pharmacists Puerto Rico Pharmacists

Recognized Holidays

CVS RX SERVICES, INC.-recognized holidays vary by market. Pharmacists should refer to the holiday schedule for their market.

HOL: Holiday Pay (non-working time)

All Exempt Pharmacists will automatically receive an 8-hour Holiday benefit for each CVS RX SERVICES, INC./pharmacy recognized holiday. This holiday pay is captured under the pay code HOL.

The 8-hour HOL time will be included in the calculation of the Exempt Pharmacist’s Base Hours prior to any inclusion of HUB.

To receive HOL pay, the Exempt Pharmacist must be in regular pay status (i.e. not on a leave of absence, terminated, or using sick pay) for the last workday before the holiday and the first workday after the holiday. An employee may use vacation time on the day before or the day after the holiday and still receive 8-hours HOL pay.

See Pharmacist Payroll Summary Sheet for specific detail (Appendix A). Non-exempt Pharmacists are not eligible for HOL pay. For the Christmas holiday, Exempt Pharmacists will automatically receive an 8-hour Holiday benefit (HOL) for Christmas Day in addition to any hours worked. Exempt Pharmacists will be eligible for additional holiday pay (*in addition to the 8-hour HOL benefit) if:

The Exempt Pharmacist works more than 8 hours on Christmas Day AND/OR

The Exempt Pharmacist works on Christmas Eve after 6 pm

OHL and OT2 Pay for Non-Exempt Pharmacists Working on Holidays

Non-exempt Pharmacists are eligible for “extra incentive” (OHL) pay for time worked on a CVS RX SERVICES, INC. holiday but are not eligible for HOL pay. OHL is equal to the Non-exempt Pharmacist’s hourly rate times 1.5.

OHL applies to those hours worked by a Non-exempt Pharmacist on the calendar workday that CVS RX SERVICES, INC. recognizes as the holiday in their market. If a shift begins on the day before a holiday and continues into the holiday, only the hours that are worked on the actual calendar day of

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the holiday as designated by CVS RX SERVICES, INC. are eligible for OHL pay.

For the Christmas holiday, the OT2 pay code is used which is 2 times the Non-exempt Pharmacist’s hourly rate for all hours worked on the holiday (Christmas holiday starts on Christmas Eve at 6pm and runs through 11:59pm on Christmas Day).

Eligibility for Non-exempt union Pharmacist holiday pay is according to the collective bargaining agreement (CBA).

Exempt Pharmacists are not eligible for OHL and OT2 time.

Sick Pay Policy and Procedures (Exempt Pharmacists only)

Anytime a colleague is out 5 or more consecutive days for personal illness,

they are required to apply for Short Term Disability (STD). There is a 5 day waiting period for STD. After the waiting period, if eligible, they are paid 60% for up to 26 weeks. (State sponsored disability laws may vary.)

Sick pay is a benefit provided to Exempt Pharmacists to ensure that they are able to take needed days off for personal illness without causing an inaccurate use of HUB. Sick pay is not intended to be used to allow the Exempt Pharmacist to earn HOB.

If a Pharmacist will be absent due to illness, he/she must report the absence to the Pharmacy Scheduler and Field Manager prior to the start of the shift. Failure to report the absence, even if the shift is already covered, may result in disciplinary action.

If an Exempt Pharmacist ends up working his/her full Base Hours during the bi-weekly pay period in which they were absent due to illness by filling other shifts, then no Sick hours should be reported on the Payroll Summary Sheet. The absence must still be reported to the Pharmacy Scheduler and Field Manager for accurate reporting.

If the Exempt Pharmacist does not work his/her full Base Hours during the bi-weekly pay period, then Sick should be recorded on the Payroll Summary Sheet as the number of hours taken as Sick time with the balance of the Exempt Pharmacist’s Base Hours recorded as Regular to bring them up to Base Hours.

o Sick hours should be recorded on the Payroll Summary Sheet in the second week, only if Base Hours are not otherwise met.

o See Example 8 in Appendix A.

The maximum consecutive Sick pay may not exceed 5 days.

If the absence will continue for more than 5 consecutive days,

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the Pharmacist must contact myHR (# 1-888-694-7287 or

myHR.cvs.com to apply for a leave of absence.

The company reserves the right to limit sick pay.

Vacation Pay Policy and Procedures (Exempt Pharmacists Only)

Eligible Employees

This policy applies to all pharmacists except:

Union Pharmacists

California Pharmacists

Puerto Rico Pharmacists

Vacation Accrual

See Vacation Policy for CVS Health Employees (DOC-051993) for more details. Vacation time will be accrued on a monthly basis based on the time the employee is in an active status. Vacation will not be accrued when an employee is in an inactive status for more than 35 consecutive calendar days. Accrual rates are adjusted two times per year (generally in January and July) and are based on the Base Hours in effect during the preceding six-month period. Exempt colleagues (who regularly work a minimum of 30 hours per week) are eligible for the CVS RX SERVICES, INC. Vacation Plan (see schedule located below) on the first of the month following six months of continuous service. Annual vacation eligibility (allocation) for an employee is determined at the time of eligibility. The amount of time is calculated based on the portion of the calendar year for which the allocation is being made.

Length of Continuous Service Vacation Weeks per

Calendar Year First of the month following six months of continuous service (for newly eligible employees)

See schedule below

First of the year following six months of continuous service

Up to 2 weeks

Four full calendar years of service Up to 3 weeks

Fourteen full calendar years of service Up to 4 weeks

Annual vacation time allocation is determined at the beginning of each and the number of hours that are allocated is calculated based on length of service as of December 31 of the prior year and scheduled hours worked, as applicable. Vacation time will be allocated to each colleague once per calendar year and accrued (earned) on a monthly basis.

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Vacation Accrual, Continued

Newly eligible colleagues (whether new hires or colleagues changing from non-exempt to exempt status) will be eligible for vacation time according to the following schedule:

Month Hired 6-Month Anniversary for

Vacation Eligibility

Vacation Time Factor

Annual Allocation of

Vacation Hours*

June January 1 12/12 1.00 80.00

July February 1 11/12 .916666 73.33

August March 1 10/12 .833333 66.67

September April 1 9/12 .750000 60.00

October May 1 8/12 .666666 53.33

November June 1 7/12 .583333 46.67

December July 1 6/12 .500000 40.00

January August 1 5/12 .416666 33.33

February September 1 4/12 .333333 26.67

March October 1 3/12 .250000 20.00

April November 2/12 .166666 13.33

May December 1/12 .083333 6.67

Note: *Vacation Hours represent an example of using two weeks’ vacation (80 hours) and a 40-hour work week. Actual allocation will be based on the colleague’s standard Base Hours. Allocation for colleagues hired on the first of the month will follow the previous month’s allocation. Vacation allocation, the number of vacation hours a colleague is permitted to use during the calendar year, is accrued (earned) throughout the year.

A colleague who changes from exempt to non-exempt status is no longer eligible for the CVS RX SERVICES, INC. Vacation Plan and the colleague no longer accrues or earns vacation time. If the colleague has used less vacation time than the amount of time accrued, the colleague will receive payment for the unused vacation time provided that the time is greater than or equal to one (1) hour. In the event of a termination, a colleague must be actively employed on December 31 to be eligible for 100% of the vacation allocation. If a colleague has used less vacation time than the amount of time accrued, the colleague will receive payment for the unused vacation time provided that the time is greater than or equal to one (1) hour. Colleagues who retire from the company having 10 years of service and are the age of 55 to 59 or having 5 years of service and are of the age of 60 or older will receive payment of allocated and unused vacation.

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Vacation Pay Policy and Procedures (Exempt Pharmacists Only), Continued

Vacation Usage Unused Vacation Time

Exempt Pharmacists are eligible to receive annual vacation allocations based on their regular weekly scheduled hours as of December 31 of the preceding year. The vacation balance is displayed within the Workbrain application. If an Exempt Pharmacist wants to take off more vacation time than is currently available, the colleague must get prior approval from his/her Field Manager. The Pharmacist may arrange to “swap” time with another Pharmacist; however, no more than 2 consecutive shifts may be swapped, and they must be swapped within the same bi-weekly payroll cycle.

All Exempt Pharmacists must request vacation days off and receive approval from their Field Manager at least 30 days in advance before taking the time off.

Any vacation request may be denied based on staffing availability and when vacation request was received. Vacation taken is paid for using the number of hours to cover the shift(s). Any regular hours worked should be included to ensure a Pharmacist’s Base Hours are covered.

Vacation hours are applied prior to the inclusion of any HUB.

The CVS RX SERVICES, INC. Vacation Plan requires colleagues to use all of their vacation time allocated with the exception of employees who first become eligible to accrue for vacation in either November or December. Employees in this category who have used less vacation hours than the amount of vacation hours accrued will receive payment for the unused vacation hours.

Starting in 2018, Exempt colleagues who have used less vacation time than the amount of time allocated for the year will receive payment for up to a maximum of 40 hours of the unused vacation time in January 2019, provided that the time is greater than or equal to one (1) hour.

Vacation time can be used at any time between January 1 (or the eligibility date for newly eligible colleagues) and the end of the payroll year (this date changes each year, check with myHR). Colleagues can use vacation time up to but not exceeding the allocated amount. Unused vacation time will not carry forward from one calendar year to the next.

Starting in 2018, Exempt colleagues who have used less vacation time than the amount of time allocated for the year will receive payment for up to a maximum of 40 hours of the unused vacation time in January 2019, provided that the time is greater than or equal to one (1) hour.

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Vacation Pay Policy and Procedures (Exempt Pharmacists Only), Continued

Using Vacation In Full Week Increments

Exempt colleagues taking a week of vacation will be charged the number of vacation hours that matches their weekly Base Hours.

Regardless of whether a full long or full short week is taken as vacation, an Exempt Pharmacist working a Long Week/Short Week rotation should submit Base Hours under Special Hours Pay Code VAC.

A Pharmacist working a Long Week/Short Week Rotation may not take all long weeks off as vacation. See Short Week/Long Week guidance in this guide.

If an Exempt Pharmacist takes a full week’s vacation during a holiday week, report hours as noted on the Pharmacist Payroll Summary Sheet. The 8-hour Holiday benefit is automatically added by Workbrain to the vacation hours.

If a pharmacist takes a vacation during a week in which the store has one or more days with a reduced schedule (e.g., reduced hours on Thanksgiving), the pharmacist will be charged VAC based on his/her regular schedule, not the reduced schedule.

Using Vacation in Partial Week Increments

Generally, in any week that an Exempt Pharmacist works and takes vacation, the pharmacist will not receive less than his/her base salary.

Exempt Pharmacists should report partial week vacation hours in addition to the other Regular or Special Hours Pay Codes on their Payroll Summary Sheet.

Vacation may be used and reported in whole hour increments.

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Appendix A- Payroll Summary Sheet

SPECIAL HOURS PAY CODES

SICK Sick Pay FNL Funeral VACA Vacation

JUR Jury Duty TR5 Rx Training (T/O) RNR Rx Night Rate

NOTE: Special Hours Pay Codes are subject to change. Refer to Workbrain for current valid codes. .

Exempt Staff Pharmacist Payroll Entry

There is no need to enter 8.0 HOL on this form. HOL for Exempt Pharmacists is automatically added by Workbrain.

W/E Date

Permanent Employee

ID

Name REG Hrs.

HOL Hrs.

SICK Hrs.

VACA Hrs.

Other Special Hours Desc. (code)

Other Special Amount

Total Paid Hrs.

HO

L f

or

FT

RP

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syste

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Appendix A - Payroll Summary Sheet, Continued

EXAMPLES OF PHARMACIST PAYROLL HOURS ENTRY (42 hour weekly base salary)

Exempt Staff Pharmacist

NORMAL WEEK W/E Date

Permanent Employee ID

Name REG Hrs.

HOL Hrs.

SICK Hrs.

VACA Hrs.

Other Special Hours (code)

Other Special Hours

Total Paid Hrs.

EX. 1 NORMAL WEEK (LONG week)

(Worked 50 hrs. according to your schedule) 42 42

EX. 2 NORMAL WEEK (SHORT week)

(Worked 34 hrs. according to your schedule) 42 42

EX. 3 NORMAL WEEK + 12 ADDITIONAL HRS. IN HOME

STORE (Not a Swapped Shift) 54 54

EX. 4 NORMAL WEEK BUT WORKED 12 HRS. OF BASE IN ANOTHER STORE 30

PLUS: REPORT 12 HRS IN ANOTHER STORE. Will get paid Base of 42 totaled from both

30

VACATION / FUNERAL / SICK

EX. 5 VACATION WEEK – Regardless of whether a full long or full short week is taken as vacation, the Pharmacist should submit Base Hours under special code VAC.

Please contact your Field Manager if you have any questions regarding Vacation Week Hours to be reported. EX. 6 NORMAL WEEK – VACATION DAY 12-HOUR SHIFT

30 12 42

EX. 7 NORMAL WEEK - 3 DAYS (12-HOUR SHIFTS) OFF FOR FUNERAL 6 FNL

36 42

EX. 8 NORMAL WEEK - SICK DAY 12-HOUR SHIFT 30 12 42

HOLIDAY WEEK – Holiday Hours will automatically be paid via Workbrain

For each recognized holiday, the 8-hour Holiday (HOL) Pay Benefit will systematically be added to Base Salary.

This time is included in the calculation of the colleague’s base prior to the inclusion of any HUB.

Please refer to below examples for clarification: EX. 9 HOLIDAY - SCHEDULED TO WORK AND WORKED

12 HRS ON HOLIDAY 42 8 50

EX. 10 HOLIDAY - SCHEDULED OFF AND DID NOT WORK 42 8 50

EX. 11 HOLIDAY - SCHEDULED OFF - STORE IS CLOSED FOR THE HOLIDAY 42 8 50

EX. 12 HOLIDAY – SCHEDULED TO WORK 6 HRS. OVERLAP - DOES NOT WORK BECAUSE OVERLAP NOT NEEDED

42 8 Overlap should be rescheduled for another day during the same bi-weekly pay period for Exempt Pharmacists. Overlap for Non-exempt Pharmacists may be eliminated by Field Manager.

50

EX. 13 HOLIDAY – FULL WEEK OF VACATION DURING HOLIDAY WEEK 8 42 50

EX. 14 HOLIDAY – SCHEDULED TO WORK 12 HRS ON HOLIDAY - DOES NOT BECAUSE TOOK VACATION DAY

30 8 12 50

EX. 15 HOLIDAY – SCHEDULED OFF- WORK 12 HRS. ON HOLIDAY IN ANOTHER STORE

42 8 Plus report 12 hours in another store

62

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Appendix A - Payroll Summary Sheet, Continued

HOLIDAY WEEK PHARMACY DEPARTMENT REDUCED HOURS OF OPERATION W/E Date

Permanent Employee ID

Name REG Hrs.

HOL Hrs.

SICK Hrs.

VACA Hrs.

Other Special

Hours

Holiday Reduced Schedule

Hrs. (Auto-

Calculated as HUB)

Total Paid Hrs.

EX. 1 HOLIDAY - SCHEDULED TO WORK - STORE IS CLOSED FOR THE HOLIDAY 30 8

Regular Base Hours reduced because store is closed. HUB will automatically pre-populate to bring RPh to base.

4 42

EX. 2 HOLIDAY – SCHEDULED TO WORK – STORE HAS REDUCED HOURS (8-HOUR SHIFT INSTEAD OF 12-HOUR SHIFT)

38 8 46

Non-Exempt Pharmacist Payroll - Holidays

Non-exempt Pharmacists Punch-In/-Out at POS for their shifts and do not need to record their time on the Payroll Summary Sheet. These Non-exempt Pharmacists will receive 1 ½ times their hourly rate (OHL) automatically for each hour worked on a Holiday, based on their punches. OT2 is paid at 2 times the hourly rate for all time worked on the Christmas Holiday, which starts at 6pm on Christmas Eve and runs through 11:59pm on Christmas Day.

(Specific Market Exclusions)

*Union Employees: This information may not apply to you. Holiday pay will operate according to your collective bargaining agreement.

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Appendix A - Payroll Summary Sheet, Continued

PAYROLL EXAMPLES

Example: Basic Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week).

How many hours should be entered in to Workbrain during the second week? ANSWER: 42

Example: Holiday Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week).

o The Pharmacist is scheduled to work 14 hours on Thanksgiving which falls on the second week of the bi-weekly pay cycle. The store is closed.

How many Regular hours REG should be entered in to Workbrain for the second week? ANSWER: The hours entered on the Payroll Summary sheet are as follows.

Week 1 – 42 Regular Hours Week 2 – 28 Regular Hours (14 Hour shift subtracted from the 42 Hour base, not

from the 48 hour long week schedule.) 8-hour Holiday Benefit is systematically added Holiday reduced schedule hrs. – 6 hrs. (auto-calculated as HUB)

Example: Christmas Holiday Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week).

o The Pharmacist is scheduled to work and works 4 hours on Christmas Eve after 6pm and 4 hours on Christmas Day which falls on the second week of the bi-weekly pay cycle.

How many Regular hours REG and HOL will the Pharmacist be paid each week of the bi-weekly pay cycle? ANSWER: The hours entered on the Payroll Summary sheet are as follows.

Week 1 – 42 Regular Hours Week 2 – 42 Regular Hours 12-hour Holiday Benefit is systematically added (4 HOL hours from working 6pm –

10pm on Christmas Eve + 8 HOL hours for Christmas Day Holiday Benefit)

Example: Christmas Holiday Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week).

o The Pharmacist is scheduled to work and works 4 hours on Christmas Eve after 6pm and 12 hours on Christmas Day which falls on the second week of the bi-weekly pay cycle.

How many Regular hours REG and HOL will the Pharmacist be paid each week of the bi-weekly pay cycle? ANSWER: The hours entered on the Payroll Summary sheet are as follows.

Week 1 – 42 Regular Hours

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Week 2 – 42 Regular Hours 16-hour Holiday Benefit is systematically added (4 HOL hours from working 6pm –

10pm on Christmas Eve + 12 HOL hours for Christmas Day hours worked)

Example: Funeral Payroll Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 36 hours during the first week of the bi-weekly pay cycle (short week) and 48 hours during the second week (long week).

o The Pharmacist is scheduled to work 14 hours on Saturday which falls in the first week of the bi-weekly pay cycle. The Pharmacist must attend a funeral and misses the entire shift.

How many hours should be entered for each week? ANSWER: The hours entered on to the Payroll Summary sheet are as follows.

Week 1 – 28 Regular Hours; 14 Funeral Week 2 – 42 Regular Hours

Example: Sick Pay Calculation o A Pharmacist has Base Hours of 42 each week. The Pharmacist is actually scheduled to

work 12 hours on Tuesday of week one of the bi-weekly payroll cycle. The Pharmacist calls in sick for the entire shift on Tuesday. On Wednesday of the second week of the bi-weekly payroll cycle, the Pharmacist fills an extra 12-hour shift at a neighboring store.

How many sick hours should this pharmacist receive?

ANSWER: 0 The SICK special hours code is used to ensure that Pharmacists receive their full base pay. That is why sick hours should only be added to Workbrain at the end of the second week to bring the Pharmacist up to full base pay, if needed, when they call in sick during the bi-weekly pay period.