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Regency Multifamily Employee Handbook Revised 2/6/2020 - 1 - Personnel Policies At-Will Employment All employees of Regency are at-will employees. This means the term of employment is for no definite period and may be terminated by the employee or by Regency at any time and for any legal reason, with or without cause or advance notice. Americans with Disabilities Act Regency complies with provisions of the Americans with Disabilities Act (ADA). We do not discriminate against any qualified employee or applicant with regard to any terms or conditions of employment because of such individual’s disability or perceived disability as long as the employee can perform the essential functions of the job. Reasonable accommodation is provided as long as the accommodation does not constitute an undue hardship to the company. Equal Employment Opportunity It is Regency’s policy to provide equal employment opportunity for all applicants and employees. Decisions are based on ability without regard to race, color, religion, age, sex (including pregnancy), sexual orientation, national origin, and citizenship, physical, other disability, genetic information, or any other classification protected by law. Equal employment opportunity applies to all policies and procedures relating to recruitment, hiring, compensation, benefits, promotion, training, transfers, termination and all other terms and conditions of employment. It is the responsibility and requirement of every employee to follow this policy. Appropriate disciplinary action may be taken against any employee willfully violating this policy. Falsification of Application Information provided on either an application or a resume is the preliminary basis for employment. Therefore, the information contained in it is presumed to be valid and accurate. Falsification of information on either an application or a resume may result in disqualification from job consideration for an applicant and disciplinary action up to and including termination of an employee. Employment Categories Each employee is classified into one of the following categories based on conditions under which he or she is employed. § Regular Full-time Employee An employee who works 80 hours per bi-weekly pay period or works 30 or more hours per week on a regular basis. Exempt employees are classified as such if their job duties are exempt from overtime provisions of the Federal and State Wage and Hour Laws. Exempt (salaried) employees are not eligible for overtime pay.

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Page 1: Regency Handbook 2-6-2020 - Unicorn HRO...Regency Multifamily Employee Handbook -2 Revised 2/6/2020 Non-exempt (hourly) employees receive overtime pay in accordance with our overtime

Regency Multifamily Employee Handbook

Revised 2/6/2020 - 1 -

Personnel Policies At-Will Employment All employees of Regency are at-will employees. This means the term of employment is for no definite period and may be terminated by the employee or by Regency at any time and for any legal reason, with or without cause or advance notice. Americans with Disabilities Act Regency complies with provisions of the Americans with Disabilities Act (ADA). We do not discriminate against any qualified employee or applicant with regard to any terms or conditions of employment because of such individual’s disability or perceived disability as long as the employee can perform the essential functions of the job. Reasonable accommodation is provided as long as the accommodation does not constitute an undue hardship to the company. Equal Employment Opportunity It is Regency’s policy to provide equal employment opportunity for all applicants and employees. Decisions are based on ability without regard to race, color, religion, age, sex (including pregnancy), sexual orientation, national origin, and citizenship, physical, other disability, genetic information, or any other classification protected by law. Equal employment opportunity applies to all policies and procedures relating to recruitment, hiring, compensation, benefits, promotion, training, transfers, termination and all other terms and conditions of employment. It is the responsibility and requirement of every employee to follow this policy. Appropriate disciplinary action may be taken against any employee willfully violating this policy. Falsification of Application Information provided on either an application or a resume is the preliminary basis for employment. Therefore, the information contained in it is presumed to be valid and accurate. Falsification of information on either an application or a resume may result in disqualification from job consideration for an applicant and disciplinary action up to and including termination of an employee. Employment Categories Each employee is classified into one of the following categories based on conditions under which he or she is employed.

§ Regular Full-time Employee – An employee who works 80 hours per bi-weekly pay period or works 30 or more hours per week on a regular basis.

Exempt employees are classified as such if their job duties are exempt from overtime provisions of the Federal and State Wage and Hour Laws. Exempt (salaried) employees are not eligible for overtime pay.

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Non-exempt (hourly) employees receive overtime pay in accordance with our overtime policy. Wages are calculated on an hourly basis.

§ Regular Part-time Employee – an employee who is hired to work less than 30

hours per week on a regular or irregular schedule. § Temporary Employee – an employee who is hired for a specific purpose or job on a

full- or part-time basis for a specified period. (This temporary employment may be extended.)

The status of a temporary employee may be changed to a regular (full- or part-time) employee providing there is a position available and the person is qualified to fill the position.

Personal Information To keep necessary company records up-to-date, it is extremely important that employees notify their immediate supervisor regarding any change of the following:

§ address and/or telephone number § name and/or marital status § person to be called in an emergency § record of licenses or certificates § income tax withholding § beneficiaries § health, dental, and vision coverage change

Confidential Information Records and information relating to Regency, its employees, or its residents are confidential. In the course of work, an employee may have access to confidential information. Regency’s reputation and performance could be seriously damaged by careless disclosure of confidential information. Property-related information such as operational financial data as well as personnel-related information, including pay, performance and disciplinary action, is considered confidential information. Residents’ rights to confidentiality preclude us from sharing file information without proper authorization. Proper authorization is defined as a written release from the resident or court-directed paperwork from a law enforcement officer. Information is not to be given to a law enforcement officer without proper paperwork; their badge is not adequate authorization for sharing of confidential file information. Therefore, without proper authorization an employee shall not disclose confidential information to others. Employees who are unsure about the confidential nature of specific information must ask their supervisor for clarification. An employee is subject to appropriate disciplinary action, up to and including termination of employment, for revealing confidential information without proper authorization.

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Recording Devices In order to encourage a working environment of mutual trust and cooperation and to protect the company’s proprietary information, the company prohibits the use of hidden or surreptitious audio recording devices, cameras, or video recorders by any employee at any time without the express authorization of the President. Any violation of this policy will subject the offending employee to immediate termination. Personnel Information All information contained in an employee’s personnel file is to be kept strictly confidential and in a locked file cabinet in the Human Resources office. The information is not to be discussed or traded between any persons except the employee, the employee’s supervisor, President and other supervisory employees who have a need to know. Verification of Employment From time-to-time banking institutions, mortgage institutions, etc., call the Human Resources Department to verify current employment and salary information. Regency may not release any salary information without a signed release from the employee. Conflict of Interest, Outside Employment, and Outside Investments An employee is expected to exercise good judgment and discretion in evaluating any activity so as to avoid any actual or apparent conflict of interest. Conflict of interest is defined as: (1) actions based on interests contrary to the company or (2) personal or affiliated economic interests that conflict with individual actions in their business responsibility. Conflict of interest occurs whenever an employee is in a position to influence a decision that may result in a personal gain as a result of the company’s business dealings with Regency. This policy applies to outside employment and investments as well as moral practices.

Outside Employment - Regency requires that before outside employment is accepted by an employee, their supervisor must be informed of the potential employment. While the company does not prohibit outside employment, such work must not distract from the performance of the duties and responsibilities of employees within the company. It must not create a conflict of interest and must not reflect adversely on the image of the company. The company must approve any such outside employment as a condition of continued employment with the company.

Outside Investments – The company reserves the right to require, as a condition of employment, that outside investments be disposed if these investments would interfere with the employee’s performance, in any way endanger company interest, or compete with company business.

Alcohol & Drug Abuse Regency has a vital interest in maintaining safe and efficient working conditions for its employees. Substance abuse is incompatible with health, safety, efficiency, and success at Regency. The company prohibits the use, sale, dispensing or possession of illegal drugs, including those illegal

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under federal law such as cannabis, and narcotics on the premises. It also prohibits the use, sale, dispensing, or possession of alcoholic beverages on its premises, except in connection with company-authorized events. It further prohibits employees from reporting to work under the influence of alcohol, drugs or narcotics. If an employee is using a properly prescribed medication that may impact their ability to work safely, they are required to advise their supervisor before otherwise reporting to work. No prescription drug is allowed to be brought on company premises by any person other than the one for whom it is prescribed. Use of such drug is allowed only in the manner, combination, and quantity prescribed. If an employee is using a properly prescribed medication that may impact their ability to work safely, they are required to advise their supervisor before otherwise reporting to work. Appropriate disciplinary action may be taken against any employee violating this policy. Theft and Fraudulent Activity Employees of Regency Multifamily shall not perpetuate, engage in, or otherwise facilitate the act of committing fraud or theft, in any capacity. This includes but is not limited to: theft of parts, supplies, equipment, time, money, or intellectual property. Fraudulent activity includes but is not limited to: unlawful reporting, falsely changing of data, or other activity in which there is intent to deceive or lie, regardless of purpose. It is the responsibility of all employees to act in a manner that encourages honest behavior. Knowledge of theft or fraudulent activity should be reported immediately to your supervisor. Failure to do so may be seen as aiding and abetting said activity and will result in similar punishments. Regency Multifamily maintains a "zero tolerance" policy: theft or fraudulent activity will be met with immediate termination, and possible prosecution as deemed necessary. This applies to any/all employees, customers, vendors, contractors, or any other person, related or not to Regency Multifamily. Attendance, Punctuality, Dependability Employees are expected to report to work as scheduled. Dependability, attendance, punctuality, and a commitment to do the job right are essential at all times. An employee absence or an expectation of arriving late must be reported by the employee to their designated supervisor before or at the start of the scheduled work period. This policy applies for each day of absence. Documentation verifying the necessity of the absence may be required. A record of absenteeism and tardiness is maintained and becomes part of the employee personnel file. Excessive absenteeism or tardiness may be grounds for discipline up to and including termination of employment. Any employee who fails to report to work without notification to their designated supervisor or Community Manager may be considered to have voluntarily resigned. Cell Phone

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Personal Cell Phone

All employees are required to be professional and conscientious at all times when using cell phones on Regency property or when doing business for Regency.

Usage:

Excessive cell phone use is prohibited during work hours. You may use cell phones at break or lunch; phones should be turned off at all other times.

Driving:

Using a cellular telephone while driving is a dangerous distraction to be avoided or limited to emergencies. Regency strongly recommends following the safety precautions listed below:

-While driving, employees should use a hands-free device when using the cell phone regardless if it’s voice, text, or e-mail.

-Let the other party know you are on a cellular phone and limit the conversation to brief essentials.

-Hang up if traffic is heavy, weather conditions are poor, you are unfamiliar with the area, or if the conversation becomes distracting.

-If a hands-free device is not available, pull off the road to a safe area before placing a call, checking e-mail or texting.

Your first responsibility is to passengers, other drivers, and pedestrians.

Regency reserves the right to amend or alter the terms of this policy.

Failure to comply with this policy could result in disciplinary action or termination.

Company Email on Cellphone:

Hourly employees, (this includes ALL hourly employees) cannot have company email on their phones. This is to comply with Federal Wage & Hour regulations that state we must pay employees for every minute of work. We cannot allow hourly employees to check company email on their phone when they are off the clock. It is the responsibility of the Directors, Assistant Directors and/or immediate Supervisor to ensure hourly employees comply with this policy. If you have questions about this policy, please contact the HR department.

Regency Cell Phone

All employees are required to be professional and conscientious at all times when using company phones.

Usage:

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It is Regency’s policy that representatives of our organization who are issued a cellular phone understand the phones are issued for business use. Employees are expected to make every effort to not exceed the current contracted allowed minutes.

Cellular phone bills are reviewed when they arrive, any employee who exceeds their contracted allowed minutes is subject to additional usage review and/or reimbursement to the company.

Driving:

Using a cellular telephone while driving is a dangerous distraction to be avoided or limited to emergencies. Regency strongly recommends following the safety precautions listed below:

-While driving, employees should use a hands-free device when using the cell phone regardless if it’s voice, text or e-mail.

-Let the other party know you are on a cellular phone and limit the conversation to brief essentials.

-Hang up if traffic is heavy, weather conditions are poor, you are unfamiliar with the area, or if the conversation becomes distracting.

-If a hands-free device is not available, pull off the road to a safe area before placing a call, checking e-mail or texting.

Your first responsibility is to passengers, other drivers, and pedestrians.

Regency reserves the right to amend or alter the terms of this policy. Failure to comply with this policy could result in disciplinary action or termination. Company Driving

Driver's license checks will be performed on all applicants after a conditional offer of employment has been made and annually thereafter for all employees where driving is part of the job function or those who must obtain rental cars during the course of conducting company business. The driving record check will include review of any appropriate state records based on the employee's application and resume. If the applicant does not have a valid driver's license, the applicant will not be hired.

Existing Employees

Regency will check the motor vehicle records for all current employees on an annual basis in March. Any employee without a valid driver's license will not be allowed to operate a company vehicle or drive on behalf of Regency business. If driving is an essential job function and listed in the job description and the employee does not have a valid driver’s license, the employee will be terminated. All existing employees will notify the HR department via written document if their driver’s license becomes suspended for any reason. Company Credit Card

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To be eligible for a corporate credit card, an employee must travel frequently in the course of his/her duties, purchase significant volumes of goods and services for use by the employer, or incur other regular frequent business expenses of a kind appropriately paid by credit card.

The corporate credit card cannot be used to obtain cash advances, bank checks, traveler's checks, or for personal expenses. Misuses of the card will result in cancellation of the card and withdrawal of corporate credit card privileges as well as possible termination of employment. If the card is used for an employee's personal expenses, the employer reserves the right to recover these monies from the employee cardholder. Cardholders will be required to sign a declaration authorizing the company to recover, from their salary, any amount incorrectly claimed. Each card will be limited to a maximum amount.

Lost or stolen cards must be reported immediately to the Vice President of Accounting.

Conduct and Discipline Employees are expected to adhere to certain standards of job performance and good conduct. All employees are “at-will,” and their employment may be terminated at any time. When performance or conduct does not meet company standards, discipline may take any of the following forms: verbal warning, written warning, final written warning, suspension, demotion or dismissal. It is impossible to anticipate or identify every possible act of misconduct which adversely affects or is detrimental to the interests of Regency, other employees, or residents/customers. Therefore, these examples are a guide and do not cover every possible infraction. Job performance – an employee may be disciplined, or employment terminated for poor job performance, including, but not limited to the following:

§ unsatisfactory work quality or quantity; § poor attitude (for example, rudeness or lack of cooperation); § excessive absenteeism, tardiness, or abuse of break and lunch privileges; § failure to follow policies and procedures; or § failure to work safely.

Misconduct – an employee’s employment may be terminated for misconduct, or illegal activity,

including but not limited to the following:

§ excessive absenteeism or lateness; § insubordination; § dishonesty; § theft; § misusing, disposing of, or destroying company property or the property of

another on company premises; § violating the conflict of interest policy; § disclosing or misusing confidential information; § falsifying or altering company records, including the application for

employment; § interfering with the work performance of others; § deliberate non-performance of work;

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§ harassment, including sexual harassment; § being under the influence of, manufacturing, dispensing, distributing, using or

possessing alcohol or illegal drugs on company property or while conducting company business;

§ gambling on company premises or while conducting company business; § sleeping on the job; § leaving the job without authorization; § possessing dangerous weapons on company property or while conducting

company business; § being convicted of the following crimes;

o drug related offense (within the last 7 years) o theft, home invasion, damage to property, sexual offenses, violence or

any crime that indicates unfitness for the job or raises a threat to the safety or well-being of Regency, its employees, residents/customers, or property.

Attendance – an employee may be disciplined, up to and including termination, for failing to observe specific requirements related to attendance:

§ not reporting to work on time; not observing time limits for breaks and lunch

periods; § leaving the premises without authorization; § not notifying immediate supervisor in advance of anticipated tardiness or

absence. When deemed appropriate, Regency reserves the right to proceed directly to a written warning or to termination of employment for misconduct or performance deficiency without resorting to prior disciplinary steps. A copy of any written disciplinary action is given to the employee and the President. A copy is placed in the employee’s personnel file. When the disciplinary action for an employee is suspension without pay or dismissal, it is required that Regency’s President be informed before the action is taken. Grievance Procedure An employee is encouraged to bring complaints or problems regarding their employment to the attention of their supervisor or a company officer. Such complaints will be promptly investigated and answered or resolved in a manner consistent with company policies and sound employee relation principles. If the employee does not receive an answer in a timely manner or is dissatisfied with the answer, the employee may review the grievance with the President or another company officer. It is against the company’s policies for any supervisor to take or cause punitive action against an employee because the employee utilizes the grievance procedure. Nepotism

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Regency is committed to a policy of employment and advancement based on qualifications and merit and does not discriminate in favor of or in opposition to the employment of relatives.

Due to potential for perceived or actual conflicts, such as favoritism or personal conflicts from outside the work environment, which can be carried into the daily working relationship, the following restrictions apply to the hiring of relatives. Relatives of persons currently employed may be hired only if they will not be working directly for or supervising a relative or will not occupy a position in the same line of authority where employees can initiate or participate in decisions involving a direct benefit to the relative. Such decisions include but are not limited to hiring, retention, transfer, promotion, wages and leave requests.

This policy applies to all current and potential employees as well as contract employees and outside contractors.

Family member is defined as one of the following: relationships by -- lawful spouse, children, parents, brothers, sisters, grandparents, grandchildren and corresponding steps and in-laws, other relatives who are totally dependent upon the employee and live in the same household and cohabitating couples/significant others.

The hiring supervisor is responsible for ensuring policy compliance. Directors have overall responsibility for monitoring changes in employee reporting relations after initial hire to ensure compliance with this policy. Employees are responsible for reporting any changes immediately to their supervisor.

Any contractor who is a family member of a current employee should submit bids/proposals just as any other contractor and be approved by the Director of Operations or President.

If any employee or contractor, after employment, enters into one of the above relationships, one individual must seek a transfer or a change in the reporting relationship. Such changes must be approved by the President. If a decision can’t be made among the affected employees within 14 days, reassignment will be made upon direction of the Director and President.

No exception to this policy will be made without a written consent signed by the President. In the event a reassignment is not available, there could be a separation of employment. New Employee Orientation Every new employee goes through an initial orientation period of adjustment in order to learn about the company and about their job. Performance Evaluations An employee’s performance is evaluated quarterly one on one with their supervisor. Promotions It is Regency’s desire to fill existing vacant positions whenever appropriate through promotion from within the organization. Employees are selected based on their ability, education, experience, and other qualifications necessary for the position.

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Each employee is urged to develop skills in their present job and to learn as much as possible about the company, its operations, and its policies in order to be qualified for promotion consideration when the opportunity presents itself. In most cases, as regular full-time job openings become available, the job opening is posted at each facility on a designated bulletin board for employees to see. If interested in a position, the employee should complete a job posting application. Regency employees who apply for a posted position are considered along with all outside applicants. Reference Checks Employees are not authorized to give out reference checks. Calls requesting reference checks must be directed to the Department of Human Resources at (217) 359-7031. Sexual Harassment/Harassment Regency is committed to maintaining a work environment where all individuals are treated with respect and have a right to work in an environment free of any form of harassment. Harassment, including sexual harassment, whether verbal, physical or arising out of the work environment is unacceptable and will not be tolerated, and it is illegal. All Regency personnel are accountable for maintaining a work environment free of harassment. Therefore, if any employee knows of any such abuses, they are required to present them to management. Engaging in any sexual harassment will be considered just cause for disciplinary action including termination of employment. Under the Equal Employment Opportunity Commission’s Guidelines, unwelcome or unwanted sexual advances, request for sexual favors and other verbal, non-verbal or physical conduct of a nature considered to be sexual are unlawful in the following instances:

1) when submission to or rejection of this conduct by an individual is used explicitly or implicitly as a factor in decisions affecting hiring, evaluation, promotion or other aspects of employment;

2) when this conduct substantially interferes with an individual’s employment or creates

an intimidating or hostile work environment. Sexual harassment may include a range of subtle and not so subtle behaviors and may involve individuals of the same or different gender. Depending on the circumstances, these behaviors may include, but are not limited to: unwanted sexual advances or requests for sexual favors; sexual jokes and innuendos; verbal abuse of a sexual nature; commentary about an individual’s body, sexual prowess or sexual deficiencies; leering, touching, obscene comments or gestures; display or circulation in the workplace of sexually suggestive objects or pictures (including through e-mail); and other physical, verbal or visual conduct of a sexual nature. This behavior is unacceptable in the workplace. Other harassment prohibited: racial slurs, inappropriate jokes or derogatory remarks or any physical aggression relating to another person’s race, age, disability, religion, national origin, or

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another person’s sex or sexual preferences; threatening, intimidating use of abusive or vulgar language interfering with the performance of other employees; or any other conduct that creates an intimidating, hostile or offensive working environment.

Reporting of Complaint - any employee who feels they have been subjected to such harassment or that their personal rights have been violated must file the complaint immediately with a supervisor or with the President, regardless of the offender’s identity or position. Early reporting and intervention have proven to be the most effective method of resolving actual or perceived incidents of harassment. The supervisor will immediately report the claim to the President. Regency will make every effort to stop alleged harassment but can only do so with the cooperation of its employees.

In addition, Regency requires individuals who believe they are being subjected to such conduct to promptly advise the offender that his or her behavior is unwelcome and request that it be discontinued. Often this action alone will resolve the problem. Investigation and Confidentiality - Any reported allegations of harassment, discrimination or retaliation will be investigated promptly. Confidentiality will be maintained throughout the investigative process to the extent consistent with adequate investigation and appropriate corrective action. The investigation may include individual interviews with the parties involved and, where necessary, with individuals who may have observed the alleged conduct or may have other relevant knowledge. As an accurate record of objectionable behavior is necessary to resolve a complaint of harassment, all complaints of harassment, sexual or otherwise, must be in writing. Regency will not tolerate retaliation against any individual who makes a complaint of sexual or other harassment. Retaliation is a very serious violation of this policy and should be reported immediately. Any individual found to have retaliated against an employee who makes a complaint or who is found to have retaliated against anyone participating in the investigation may be subject to disciplinary action up to and including termination of employment. Regency reserves the right to take action against an employee for inappropriate behavior that might not rise to the level of sexual harassment under the legal definitions. Social Media Regency encourages employees to share information with co-workers and with those outside the Company for the purpose of gathering information, generating new ideas, and learning from the work of others. Social media provides inexpensive, informal, and timely ways to participate in an exchange of ideas and information. However, information posted on a website can be available to the public, and therefore, the Company has established the following guidelines for employee participation in social media. Note: As used in this policy, “social media” includes, but is not limited to blogs, forums, social networking websites such as Twitter, Facebook, LinkedIn, YouTube, Four Square, web logs and websites.

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Off-duty use of Social Media Employees may maintain personal profiles, links, and share personal information on websites or web logs on their own time using their own resources. Employees must ensure that social media activity does not interfere with their employment duties. In general, Regency considers social media to be personal endeavors and does not regulate employee’s in their personal lives. Nonetheless, Regency reserves the right to address employee use of social media consistent with the requirements of the National Labor Relations Act, to the extent that they are untrue, malicious or present an inaccurate portrayal of Regency, its residents or its employee. On-duty use of Social Media Employees may engage in social media activity during work time provided it is directly related to their work, approved by their Supervisor, and does not identify or reference Company clients, customers, or vendors without express permission. No employee other than a designated spokesperson within the Company may speak on behalf of Regency through any form of social media or otherwise. Termination of Employment If an employee plans to leave the company and a recommendation is desired, they should be referred to the President. All employees have an “at-will” employment relationship. Management reserves the right to terminate employment for any reason. An employee may also terminate employment at any time. At the regularly scheduled payday covering the pay period in which employment terminated, the employee receives payment for compensation due through the last day of employment. All accrued PTO hours will be paid out in the following paycheck. Upon termination of employment, employees:

§ May complete an exit survey § Must complete a Departure Checklist with a supervisor.

On the last day of employment, a supervisor secures any company keys and property in the employee’s possession.

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Compensation In order to attract and retain a qualified and competent work force, Regency has a performance management program to compensate employees in a fair and equitable manner based upon demonstrated job performance and in accordance with its Equal Opportunity policy. Employees are paid either hourly (non-exempt) or on a salaried (exempt) basis according to the job performed. An employee’s rate of pay is determined by their performance and the requirements of the position. Adjustments in rate are reviewed at least annually for all employees. Hours of Work and Workweek The regular scheduled workweek begins on Saturday at 12:01 a.m. and terminates on Friday at 12:00 midnight. Any employee working 7 ½ hours or more must take a minimum of a 30-minute meal period. The meal period must be taken no later than 5 hours after beginning work, and meet the needs of the department. On-Call Pay An hourly employee responding to an after-hours emergency call is paid a minimum of one hour, even though the actual time worked may be less. If the employee works more than one hour, they are paid for time worked according to pay guidelines. The employee is not paid for travel time to and from the property and is not reimbursed for mileage to and from work. Salaried employees do not receive mileage reimbursement for on-call travel. Overtime Pay To be entitled to overtime pay, an hourly (non-exempt) employee must work over 40 hours in a regular scheduled workweek. A salaried (exempt) employee who meets the state and federal regulations is exempt from the limitations of eight (8) hour days or a 40-hour week and, therefore, does not receive overtime pay. Hours worked include any hours actively engaged in work activity. Paid time off and other time off (excluding holiday pay for on call staff) are not included in the computation of hours worked. Overtime hours should be approved in advance by the employee’s supervisor. Employees working overtime without approval may be subject to disciplinary action. Overtime is paid at one and one-half times the regular rate of pay, in accordance with the Fair Labor Standards Act. Paydays Employees are paid every other week on Friday and may be paid by check or through direct deposit to either a savings or checking account at their bank or credit union. If the normal payday falls on a recognized holiday, pay is distributed the day before the holiday.

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WorkForce Management Timekeeping All hourly (non-exempt) employees must record the time they arrive and depart each day utilizing Workforce Management through our Employee Self Service. It is each employee’s responsibility to ensure that they clock in when they arrive, and they clock out when they leave. This includes lunches and personal errands. Clocking in and out is prohibited from anyplace other than a Regency property and Regency computer/iPad. Each employee is responsible for their own recordkeeping, and time worked is recorded as it occurs. Clocking in/out for another employee, or frequent and excessive missed punches will be a direct violation of this policy and will be considered just cause for disciplinary action up to and including termination. Exempt employees should clock in, using Workforce Management through Employee Self Service only one time per day unless using benefit time. Supervisors must approve each employee’s time at the end of the pay period. Wage Garnishments Regency respects the privacy of an employee’s financial affairs. However, if legal action directs that money be withheld from an employee’s paycheck, Regency will comply with all legal requirements. Travel to another city on same-day assignment An employer must pay an employee for time spent traveling to and from another city in the same day. If the employee does not first report to his usual workplace, the employer may be able to deduct the time the employee usually takes to get to and from work from the time spent traveling to the other city. 29 CFR § 785.37 Travel that keeps Employees away from home overnight When employees are required to travel away from their homes and that travel spans more than one workday, an employer must include in hours worked the time actually spent traveling, e.g., in a car or on airplane or train, only if it occurs during the employee’s normal work hours. For example, if an employee normally works from 8:00 a.m. to 5:00 p.m., an employer is only required to include time spent traveling during that time period as hours worked. Time spent traveling before 8:00 a.m. and after 5:00 p.m. would not need to be included – with one caveat, if the employee actually performs work while traveling, the employer must include the time spent working as hours worked. 29 CFR § 785.39 Also, employers must count as hours worked time spent by employees traveling on non-workdays if the travel takes place during the employees’ normal work hours. To clarify, if an employee normally works Monday through Friday from 8:00 a.m. to 5:00 p.m. and the employee is traveling

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on Saturday, the employer would be required to count as hours worked the time spent traveling by the employee between 8:00 a.m. and 5:00 p.m. on that Saturday. If the employee’s travel spans that entire normal workday time period, the employer would be required to include all that time, minus time usually given for lunch or breaks, as hours worked. 29 CFR § 785.39. As noted above, if the employee actually performs work on a non-workday while he or she is traveling, the employer would need to count that time as hours worked regardless of what time the work is performed.

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Employee Benefits Bereavement Leave Regular full-time employees will be granted a maximum of three (3) days paid bereavement leave in the event of a death in the immediate family that necessitates an absence from work. ‘Immediate family’ is defined here as: lawful spouse, children, parents, brothers, sisters, grandparents, grandchildren and corresponding steps and in-laws, or other relatives who are totally dependent upon the employee and live in the same household. Additional time off may be approved. Bereavement leave is not counted as hours worked in the computation of overtime. Necessary documentation may be requested by the employee’s supervisor. Educational Assistance/Tuition Reimbursement Policy Regency may provide financial support to employees who participate in externally sponsored educational courses which meet the criteria outlined in this policy. Such support is intended to enhance employees’ professional development and their skills and knowledge related to our business. Eligibility Active employees who are classified as “full time” (regularly scheduled to work 30 or more hours per week) with at least six months of continuous service immediately prior to the start of the course are eligible to apply for reimbursement for qualified tuition expenses. Termination of Eligibility Eligibility ceases upon notice of termination of employment. No reimbursements will be made to former employees, to employees who have given notice of resignation, or who have been notified that they will be involuntarily terminated. This includes situations in which approval of such reimbursement was previously provided and/or the course was satisfactorily completed prior to the date of termination. Any exceptions must be approved by the President. Eligibility for tuition reimbursement also ceases when the employee’s performance falls below average. Leave of Absence In an effort to recognize the need of employees who require time off from work for personal reasons Regency offers a Leave of Absence policy. Job performance, absenteeism, and department requirements all will be taken into consideration before a request is approved. Approval by the employee’s immediate supervisor is required along with human resources. For additional information and completion of the necessary forms, contact your supervisor or the Human Resources Department.

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Holidays The company observes the following paid holidays each year:

1/2-day New Year’s Eve Thanksgiving Day New Year’s Day Friday After Thanksgiving Memorial Day Christmas Eve Fourth of July Christmas Day Labor Day

Each employee will receive 1 day off with pay (TOP) to celebrate their birthday. Employees will need to use the TOP day within 60 days of their birthday. The birthday follows the same guidelines as all other holidays for fulltime and part-time employees. Typically, when a paid holiday falls on a Saturday, employees are given the previous Friday off. When a paid holiday falls on a Sunday, employees are given the following Monday off. Holiday (except for on call staff) -hours are not considered hours worked in the computation of overtime. Holiday Pay An employee is paid regular straight-time wages for company-paid holidays. Regular part-time employees who have been employed at least one year receive 4 hours of holiday pay. Hourly employees who work on a holiday are paid for hours worked in addition to holiday pay (if eligible). Jury Duty The company recognizes that it is the civic duty of every citizen to do their part when called for jury duty. An employee is paid at the base rate of pay for each scheduled workday that the employee is required to spend in court. Any monies received by the employee from jury service must be endorsed over to the company. An employee on jury duty is expected to report to work any day they are excused from jury duty. Jury duty is not considered hours worked in the computation of overtime. Upon receipt of the notice to serve jury duty, the employee must immediately notify their supervisor and provide a copy of the notice. Upon the employee’s return, the employee must submit to their supervisor a signed Certificate of Jury Service indicating the number of days served. Military Leave It is Regency’s policy to comply with the USERRA Act. If an employee has a military obligation to fulfill, an unpaid leave is granted. Upon receiving orders for active or reserve duty, training, and other related obligations, an employee must notify their supervisor immediately. During a military

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leave, an employee has the right to use any accrued paid time off that accrued prior to military service. No benefits are accrued during a military leave. During a military leave of less than 31 days, group benefits continue as if the employee had continued to work. For military leaves of more than 30 days, an employee may elect to continue health coverage for up to 18 months of uniformed service but will be required to pay the full premium for the continuation coverage. After completion of the military obligation, you must provide notice of availability or apply for re-employment in accordance with the USERRA Act. Please contact Regency immediately upon completion of military obligation to provide necessary documentation. Time Off to Vote As required by law, an employee is allowed to take up to two hours off during the work day for voting in national, state or local government elections if it cannot be done outside of normal working hours. An employee’s supervisor has the right to determine what hours the employee may be absent for voting. If the employee chooses to take time off during the work day, it is considered time off without pay. Time off to vote is not considered hours worked. Paid Time Off Regency believes employees should have opportunities to enjoy time away from work to help balance their lives. Regency also recognizes that employees have diverse needs for time off from work and has established this paid time off (PTO) policy to meet those needs and to promote a flexible approach to time off. The policy contains provisions for vacation time, personal time, and sick leave. Employees are accountable and responsible for managing their own PTO hours to allow for adequate reserves if there is a need to cover vacation, illness or disability, appointments, emergencies or other needs that require time off from work. Eligibility PTO begins to accrue upon hire or transfer into a benefit-eligible position, which is a position that is scheduled to work at least 30 hours per week on a regular basis. Employees working less than 30 hours per week on a regular basis and temporary employees are not eligible to accrue PTO. Availability PTO accruals are not available for use until the completion of 30 days of employment. Thereafter, PTO accruals are available for use in the pay period following the pay period in which they were accrued. Use and Scheduling of PTO Whenever possible, PTO should be scheduled in advance for time off for vacations, personal leave, appointments or other reasons. It is subject to supervisory approval and department staffing needs i.e. time off may not be approved during peak season. Unscheduled absences will be monitored, and an employee will be counseled when the frequency of unscheduled absences adversely affect operations. PTO is paid at the employee’s straight time rate and is not part of any

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overtime calculation. Employees are required to use available PTO when taking time off from work unless approved by their supervisor. PTO may be taken incrementally, with the exception of salaried employees who must take it in 4- or 8-hour increments. Employees may not borrow against their PTO banks; therefore, no advance leave will be granted. (Exceptions must be approved by the President.) Accrual and Payment of PTO Accruals are based upon paid hours up to 2,080 hours per year, excluding overtime. Employees working less than 40 hours per week, but at least 30 hours per week, will earn PTO hours on a pro-rated basis, according to the accrual rate per hour (See table). Length of service determines the rate at which the employee will accrue PTO. PTO does not accrue on unpaid leave of absence or PTO cash outs upon termination. Employees become eligible for the new higher accrual rate on the employee’s anniversary date.

Years of Service Accrual Rate per Hour

Annual PTO Accrual*

Maximum Accrual**

0 through end of 4 years .06538 17 days (136 hours)

50 days (400 hours)

5 through end of 9 years .08462 22 days (176 hours)

50 days (400 hours)

10 through end of 19 years .10385 27 days (216 hours)

50 days (400 hours)

20 or more years .12308 32 days (256 hours)

50 days (400 hours)

*Annual PTO Accruals are based on an employee having 2,080 paid hours per year (40 hours per week). **No PTO hours will accrue beyond the maximum accruals listed. Payment upon Termination An employee will be paid for all PTO hours accumulated but not used upon resignation, separation or retirement. Employees who drop below 30 scheduled hours per week (i.e. go from full time to part time status) will be paid accrued PTO on the pay date following the reduction in hours. PTO payout – Effective September 1, 2017 An employee with over 240 hours of accrued PTO May sell back a portion of hours to a minimum of 160. Employees may sell back hours twice per calendar year. No less than 16 hours may be sold at one time. The sell back of PTO hours is at your present hourly rate. ***Remember, we highly encourage employees to take time away from work to help keep balance in their lives.

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Group Insurance Regency has established a variety of employee benefit programs designed to assist the employee and their eligible dependents with financial burdens that can result from illness and disability, and to help the employee plan for retirement. This portion of the Employee Handbook contains a very general description of the benefits to which the employee may be entitled. Please understand this general explanation is not intended to, and does not, provide all the details of these benefits. This Handbook does not change or otherwise interpret the terms of the official plan documents. To the extent that any of the information contained in this Handbook is inconsistent with the official plan documents, the provisions of the official documents govern in all cases. Please note that nothing contained in the benefit plans described herein shall be held or construed to create a promise of employment or future benefits, or a binding contract between the company and its employees or their dependents, for benefits or for any other purpose. Regency reserves the right, in its sole and absolute discretion, to amend, modify or terminate, in whole or in part, any or all of the provisions of the benefit plans described herein, including any health benefits that may be extended to employees’ dependents. From time to time, the providers and plan terms may change. For more complete information regarding any of our benefit programs, please refer to the Summary Plan Descriptions, or contact the Human Resources Department at (217) 359-7031. All employee benefits are provided to regular employees performing a regular full-time job unless otherwise noted. Dental Insurance Dental insurance is available at the employee’s expense through payroll deduction on the first of the month following 60 days of employment. The employee has up to 60 days from their employment date to make their election. Once made, the election is fixed for the remainder of the plan year unless there is a qualifying event. At the end of each plan year, during re-enrollment the employee is free to change their election for the following plan year, whether or not there has been a change in familial status. Health Insurance Group health insurance is offered to employees on the first of the month following 60 days of employment and the cost of coverage is shared by the employee and the company. This policy contributes to the cost of doctor visits, hospital charges, surgery, and prescriptions incurred because of accident or illness. Once made, the election is fixed for the remainder of the plan year, unless there is a qualifying event. At the end of each plan year, during open enrollment, the employee is free to change their election for the following plan year, whether or not there has been a change in familial status (such as birth, adoption, death, marriage or divorce). However, if the employee undergoes a change in familial status during the plan year, a change may be made at that time.

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Life Insurance A basic group term life insurance policy is offered to each employee and is employer-paid along with an accidental death and dismemberment policy. Eligible employees are automatically enrolled on the first of the month following 60 days of employment. Additional life insurance may be purchased including dependent life coverage at the employee’s expense through payroll deduction on the first of the month following 60 days of employment. Vision Care Insurance Vision insurance is available at the employee’s expense through payroll deduction on the first of the month following 60 days of employment. The employee has up to 60 days from their employment date to make an election. If the employee does not elect coverage within sixty (60) days of hire, the next opportunity to join the Vision Care plan is in January of each year at re-enrollment. Once made, the election is fixed for the remainder of the year, unless there is a qualifying event. At the end of each plan year, during open enrollment, the employee is free to change their election for the following plan year, whether or not there has been a change in familial status. However, if the employee undergoes a change in familial status during the plan year, a change in coverage may occur at that time. Flexible Spending Account The Flexible Spending Account (FSA) program gives an employee an opportunity to participate in two benefit programs that can help manage certain eligible health care and dependent day care expenses more effectively. FSA’s offers tax benefits to help defray the cost of non-reimbursable medical and dependent day care expenses. The employee figures how much of their wage they wish to set aside in one or both accounts. The amount(s) elected is deducted in equal amounts from each paycheck during the plan year and deposited into their FSA account(s) each payday. An employee’s contributions to these accounts are made through the convenience of payroll deduction and are taken out of the employee’s pay before taxes are calculated and withheld. Therefore, the employee pays less each year in Federal taxes, State taxes, and in Social Security taxes. Because the Flexible Spending Account contributions are not subject to Social Security taxes, the eventual Social Security benefits may be minimally reduced when the employee retires or becomes disabled. The tax advantage of your account(s) varies depending on your wage level, tax filing status, and contribution amounts. However, the amount saved in taxes by participating in the plan helps lower expenses for health care and dependent day care.

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Health Reimbursement Arrangement The Regency Health Reimbursement Arrangement is a benefit program that allows participating employees to obtain reimbursement for qualified medical expenses not otherwise reimbursed or reimbursable in full by any other accident or health plan with tax free funds. The HRA is funded by Regency and is administered through Benefit Planning Consultants, our plan administrator. Disability Insurance Disability insurance is offered to employees and is employer-paid. After 60-days this coverage may provide payments to employees who become sick or disabled. Eligible employees are automatically enrolled as of the first of the month following 60 days of employment. Any LOA leave to which an employee may be entitled runs concurrently with time off granted under this policy. Therefore, any time spent on disability counts as part of an employee’s LOA leave. Unemployment Insurance This insurance is provided to each employee as required by law and the cost of this insurance is paid by the company. Workers’ Compensation Insurance This insurance provides statutory benefits for on-the-job injuries. All employees are covered upon reporting to work and the entire cost of the coverage is paid by the company. Should an employee sustain a work-related injury, the employee must immediately notify their supervisor. Employees must fully cooperate in any investigation of work-related accidents or injuries. It is each employee’s responsibility to work safely and to do all that is possible to prevent accidents, workplace violence, and injuries. Each employee is expected to report unsafe conditions and consciously avoid taking unnecessary risks. Failure to report accidents is a serious matter as it may preclude an employee’s coverage under Workers’ Compensation Insurance. Regency recognizes that our employees are our most valuable assets and the most important contributors to our continued growth and success. We would also expect our employees to perform in a manner in which would support our company in its goals and aspirations. As a company we are firmly committed to safety, to doing everything possible to prevent workplace accidents, and to providing a safe working environment for all of our employees. To further this commitment, we have worked with our insurance carrier to develop and institute a mandatory Post-Accident Drug and Alcohol Testing Policy. In accordance with applicable law, this policy applies to all employees involved in work-related accidents and injuries. This policy also reinforces our intolerance of illegal drugs and working under the influence of alcohol or non-prescribed illegal substances. Post-Accident Testing Procedure Any employee involved in any work-related accident resulting in lost time or a visit to a doctor for medical attention will be required to submit to drug and/or alcohol tests. Further, any employee who is involved with damage to company equipment or injury to a fellow employee may be

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required to submit to drug and/or alcohol tests. In the event of an accident, the employee must inform a supervisor immediately. If medical attention is required, employees will be directed to the appropriate medical facility to provide a urine and breath sample as soon as possible following the accident. If possible, urine and breath tests will be performed in conjunction with the necessary medical treatment. The attending medical facility will send the results of the test to Human Resources at Regency. Regency is required to release the test results to workers’ compensation insurance carrier. The breath alcohol test and/or urine analysis may include but not limited to test for the following non-prescribed illegal substances: • Amphetamines (speed, pep pills) • Barbiturates (depressants) • Benzodiazepines (valium) • Methadone (morphine) • Cocaine (including crack) • Opiates (heroin) • Methaqualone (Quaaludes) • Propoxyphene (Darvon) • Phencyclidine (PCP) 401(k) Plan Regency’s 401(k) Savings Plan is a contribution plan in which employees are directly involved in contributing toward the ultimate benefits that are provided at retirement. Employees contribute a percentage of their wages or an exact dollar amount to the program each pay period. The contributions each pay period are before federal and state taxes except Roth which is withheld after taxes. In addition, the earnings on the contributions are tax-deferred until withdrawal. An employee can have their contributions invested in any combination of the investment options available. All employees who have completed one year of service (in which at least 1,000 hours were worked) and attained age 21 are eligible to participate. An employee may join the Plan on the next January 1, April 1, July 1, or October 1 immediately following the completion of one year of service. Automatic Enrollment When an employee is eligible for 401(k) participation and has not enrolled on their own or has not declined auto enrollment, we will initiate a deferral of 3% of their salary. Auto enrollment requires the use of default investments for participants that do not make investment selections for themselves. The default investment is Vanguard Target date Funds. Regency may contribute for each participant a matching contribution. You must be a participant in the Plan and be employed at the end of the year to receive the matching contribution.

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Miscellaneous Business Expenses An employee is reimbursed for expenses incurred on the company’s behalf when the employee is engaged in prior approved or authorized company business. Such expenses must be reasonable under the circumstances. An employee should submit an expense form and all receipts for the expenses incurred. The expense report must be signed by both the employee and their supervisor. When traveling in your own vehicle on company business, the mileage reimbursement rate is the IRS standard mileage reimbursement rate. An employee shall use any vehicle in a safe and legal manner. An employee receiving the mileage reimbursement is responsible for supplying all expendable items used in the operation, including appropriate insurance and proper licensing of such a vehicle. When an employee elects to drive their own personal vehicle, the cost of mileage cannot exceed the cost of a rental car for the same trip. Please consult with home office on rental car pricing and reservations. Company Property Regency strives to maintain supervision and protection of all company property including but not limited to:

§ keys including, but not limited to: key box keys individual apartment keys laundry keys master keys (only to be checked out as needed, not carried on key ring)

§ alarm codes § equipment, tools, pagers, walkie-talkies, computers, printers, phones

Each employee must complete a Key Authorization Agreement listing all keys entrusted to them. Keys that have been entrusted to the employee will not be duplicated, provided to or otherwise made accessible to any unauthorized person, without the prior approval of their supervisor or the Director. An ‘unauthorized person’ is defined as any person including, but not limited to, contractors, vendors, and residents. Other Regency employees may, in some cases, be unauthorized as well. Lost, missing, or stolen keys must be immediately reported to the employee’s supervisor. If employment duties place an employee in a position where they have access to occupied apartment keys, the employee must not distribute such keys to persons not on the Apartment Lease (Lessee or listed Occupant) until the Permission to Enter form has been completed, allowing apartment access to individuals duly authorized by the resident(s). An employee must not use such keys for personal or unauthorized access to apartments or property offices, shops, and amenities. Property tools are used in the performance of an employee’s job and are not normally available for personal use. Tools must remain on the property at all times unless personal use is approved by the employee’s supervisor.

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All company property, including keys, must be surrendered to the employee’s supervisor at the time of transfer to another property, or at termination of employment. Company Vehicles All company-owned vehicles are intended for employee use on company business. The cost of insuring company-owned vehicles is partially based on the driving records of the principal driver of each vehicle. Adult lawful spouses are allowed to operate company-owned vehicles that have been assigned to a specific employee, with the employee’s knowledge and consent, but employees are strongly discouraged from allowing lawful spouses to operate company-owned vehicles except under unusual circumstances. Under no circumstances may the employee allow any person other than their adult lawful spouse or another employee to operate a company-owned vehicle.

Insured Vehicle – Regency carries automobile insurance on company owned/leased vehicles. This coverage is extended to: 1) only those vehicles owned by the company; and 2) only those vehicles the company leases, hires, rents, or borrows from rental agencies. This does not include any vehicle the company leases, hires, rents, or borrows from any employee or the members of their households.

If an accident occurs while the employee is operating one of these excluded vehicle types on company business, the employee’s comprehensive coverage or the collision coverage deductible will be paid by the company, up to a maximum of $500. It is the responsibility of the employee to purchase insurance for their own vehicle. Fair Housing Regency employees must comply with all federal, state, and local Fair Housing laws. Employees must not commit any act or make any statements that could be perceived in any way discriminatory based on race, color, religion, sex, sexual orientation, disability, familial status, or national origin, or any other classification protected by law. Employees must treat all people the same, whether or not they have protected status. Regency’s policies for applicant approval, occupancy, and maintenance service must be followed at all times. The Director of Operations must give approval prior to an employee committing to a change in policy (accommodation) or property (modification). Maintenance staff must direct all inquiries regarding leasing, apartment availability, prices, resident profile, etc., to the leasing office. Failure to practice Fair Housing will result in disciplinary action that may include termination of employment.

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Gifts, Gratuities, and Tips Residents pay rent for services. It is neither acceptable nor ethical for an employee to solicit a gift, gratuity, or tip from a resident or the resident’s family. If a gift is received, you must make a full disclosure to your Director of Operations immediately. Media Contact An employee shall not communicate with media contacts, such as television, radio, newspaper or other media outlets. Media contact must be referred to the Director or Regency’s President. Personal Appearance See the Regency Master Closet Policy Appropriate dress of an employee reflects an image of pride and professionalism to residents, vendors, visitors, and co-workers. Regency places confidence in employees to conduct themselves at all times in a professional manner, both in appearance and behavior.

§ Attire must be appropriate to the extent that no distracting or disruptive attention or reaction on the part of others is anticipated or caused. Clothes must be clean and properly fitted, i.e., not too tight, not too loose, not revealing, etc.

§ Tattoo and body piercing may be deemed inappropriate by management, and you

may be asked to make a correction.

§ Hair must be clean and groomed.

§ Proper personal hygiene must be maintained. The nature of the employee’s work determines appropriate dress. An employee is advised if their job requires a uniform. Casual attire is permitted as scheduled, and the Director or the employee’s supervisor must approve any exceptions. Appropriate attire may be dictated by the task and special circumstances e.g., snow shoveling, planting flowers, etc. Casual dress must not negatively impact the business image of the company. Employees dressed in attire deemed inappropriate by management are sent home to change. Time off for changing attire is considered time off without pay. If an employee is warned or sent home on more than one occasion, appropriate disciplinary action is taken, including possible termination of employment. Smoking Smoking, including the use of electronic cigarettes, is prohibited in all Regency office facilities, meeting rooms, restrooms, hallways, stairways, lobbies and clubrooms; all buildings including, but not limited to, all leased and unleased apartments, garages, and designated maintenance areas. Each new employee is to be informed of designated smoking areas by their supervisor.

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Infractions of this policy are handled as a disciplinary issue. Technology Use and Privacy Regency provides various technology resources to employees to assist them in performing their job duties, employees have no expectation of privacy in their email, voicemail or other electronic communications provided by the company. Each employee has a responsibility to use these resources in a manner that increases productivity and is respectful to others. Installing unauthorized software, downloading of files, or attaching personal devices onto Regency computers or networks is prohibited. Regency reserves the right to review any directories, records or related information in its sole discretion. Technology resources consist of all electronic devices, software and means of electronic communication including, but not limited to the following: personal computers and workstations; laptop computers; computer hardware such as disk drives; peripheral equipment such as printers, modems, fax machines and copiers; computer software applications and associated files and data; including software that grants access to external services such as the Internet, electronic mail, telephones, cellular phones, pagers, and voice mail systems. Regency is aware that employees use electronic mail for correspondence that is less formal than written memoranda. Employees must take care not to let informality degenerate into improper use. Under no circumstances may employees use these resources to transmit, receive or store any information that is fraudulent, inappropriate, offensive, discriminatory, harassing, or defamatory in any way or in violation of any policies expressed in this handbook. All messages sent and received, including personal messages, and all data and information stored on Regency’s electronic-mail system, voice mail system, or computer systems are company property regardless of the content. Regency reserves the right to access all of its resources at any time at its sole discretion. Therefore, employees should understand they have no right of privacy with respect to any messages or information created or maintained on Regency’s resources, including personal information or messages. Regency may also monitor these resources at any time in order to determine compliance with its policies, for purposes of legal proceedings, to investigate misconduct, to locate information or for any other business purpose. Passwords – Certain resources can be accessed only by entering a password. Passwords do not confer any right of privacy upon any employee. Employees are expected to maintain their passwords as confidential. Deleted Information – Deleting or erasing information, documents or messages maintained on Regency’s resources is in most cases ineffective. All employees should understand that any information kept on Regency’s resources may be electronically recalled or recreated regardless of whether it may have been deleted or erased by an employee. Because Regency periodically backs up all files and messages, and because of the way in which computers reuse file storage space, files and messages may exist that are thought to have been deleted or erased. Therefore, employees who delete or erase information or messages should not assume that such information or messages are confidential. Failure to follow policies regarding these resources may lead to disciplinary action up to and including termination of employment.

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Company Telephone Use A large percentage of our business is conducted over the telephone. It is essential to project a professional telephone manner at all times. Calls can be recorded for quality and training purposes. Although Regency realizes there are times when an employee may need to use the telephone for personal reasons, it is expected that good judgment is used in limiting the length and frequency of such calls. Any personal use of the telephone must not interfere with work performance. Regency Cares Regency recognizes it is our responsibility as a good corporate citizen to help strengthen the communities in which we live and work. Consequently, we encourage our employees to become involved in their communities, lending their voluntary support to programs that enrich the quality of life and opportunities for all citizens. If you would like more information regarding our Regency Cares policy, please contact your Supervisor or Human Resources at Corporate Office.