We recruit, hire and promote into all job levels the most qualified applicants without regard to race, color, national origin, religion, sex (including pregnancy, childbirth, breastfeeding and related medical conditions), age, disability, genetic information, citizenship status, veteran status, gender identity/expression, sexual orientation, ancestry, marital or family status, military service, domestic violence victim status, race inclusive of traits historically associated with race, including, but not limited to, hair texture, hair type, and protective hairstyles, political affiliation or activities, arrest/conviction record, obesity, HIV/AIDS diagnosis, sexual and reproductive health decisions, immigration status, or any other status protected under applicable federal, state and local laws.

TapGoods expressly prohibits any form of unlawful employee harassment or discrimination based on any of the characteristics mentioned above. Improper interference with the ability of other employees to perform their expected job duties is absolutely not tolerated. The Texas Commission on Human Rights Act (TCHRA) also prohibits an employer from retaliating against employees for:

• Opposing discriminatory or otherwise unlawful employment practices;
• Filing a charge or complaint; or
• Testifying or otherwise participating in an investigation, proceeding or hearing.

Any employees with questions or concerns about equal employment opportunities in the workplace are encouraged to bring these issues to the attention of the Controller. The Company will not allow any form of retaliation against individuals who raise issues of equal employment opportunity. If an employee feels he or she has been subjected to any such retaliation, he or she should bring it to the attention of the Controller.

Retaliation means adverse conduct taken because an individual reported an actual or perceived violation of this policy, opposed practices prohibited by this policy, or participated in the reporting and investigation process described below. “Adverse conduct” includes but is not limited to:

1. shunning and avoiding an individual who reports harassment, discrimination or retaliation;
2. express or implied threats or intimidation intended to prevent an individual from reporting harassment, discrimination or retaliation; or
3. denying employment benefits because an applicant or employee reported harassment, discrimination or retaliation or participated in the reporting and investigation process.

Complaints of discrimination should be filed according to the procedures described in the Harassment and Complaint Procedure.

Neither discrimination in violation of our Equal Employment Opportunities policy, nor harassment of any kind, for any reason, will be tolerated. This includes harassing conduct by vendors, customers, and other non-employees that you may encounter while carrying out your work duties, and harassing conduct that occurs off-premises or off-hours.

Employees can enforce this right by filing a complaint internally with TapGoods or with a government agency or in court under federal, state, or local antidiscrimination laws. This applies to all employees, applicants for employment, interns, whether paid or unpaid, contractors and persons conducting business with TapGoods Employees of every level who engage in harassment, including managers and supervisors who engage in sexual harassment or who knowingly allow such behavior to continue, will be penalized for such misconduct.

Reasonable Accommodation for Disability
TapGoods provides individuals with disabilities with reasonable accommodations for the known physical or mental limitations of an otherwise qualified applicant or employee unless it creates undue hardship to TapGoods. Individuals who may qualify for consideration as disabled include applicants or employees who have or are regarded as having a physical or mental impairment or have a record of such impairment.

Inquiries about reasonable accommodations will be kept confidential to the extent possible. Once we learn of your need for an accommodation, we will work with you to identify possible reasonable accommodations to help you perform the essential functions of your job.

Reasonable Accommodation for Pregnancy
TapGoods provides reasonable accommodations for pregnancy, childbirth, or a related medical condition, including lactation. Reasonable accommodations may include but are not limited to, more frequent or longer break periods, periodic rest, and modification of work schedules or job assignments. Additional accommodations may be available depending on specific circumstances.

Reasonable Accommodation for Religious Reasons
TapGoods provides reasonable accommodations for religious practices or needs of employees. Religious practice or need is broadly defined and includes moral or ethical beliefs as to what is right and wrong that are sincerely held by an employee with a strength of traditional religious views. Reasonable accommodations may include allowing employees to wear religious clothing or to take paid or unpaid time off to engage in an employee’s religious observance or practice, such as a holy day.

Reasonable Accommodation for Victims of Domestic Violence
TapGoods provides reasonable accommodations for employees who are the victim of domestic or sexual violence (including sexual assault and stalking) or who are the family or household member (i.e., spouse, civil union partner, parent, son, daughter, other person related by blood or by present or prior marriage, other person who shares a relationship through a son or daughter or a person jointly residing in the same household with the employee) of such a victim, unless providing the accommodation will impose an undue hardship on the Company's business operation.

Reproductive Health Decisions Policy
TapGoods prohibits discrimination and retaliation based on an employee’s or an employee’s dependent’s reproductive health decision making, including but not limited to, the decision to use or access a particular drug, device, or medical service. It is an unlawful employment practice for the Company to access an employee’s personal information regarding their or their dependent’s reproductive health decisions without the employee’s prior informed affirmative written consent, or to require an employee to sign a waiver or other document which purports to deny an employee the right to make their own reproductive health decisions.

Any employee who feels there has been a violation of this policy should inform the Controller/HR representative. TapGoods will investigate and take appropriate action. An employee may also file a private legal action and can seek remedies under state law.

TapGoods is committed to creating and maintaining a workplace in which all employees have an opportunity to participate and contribute to the success of the business and are valued for their skills, experience, and unique perspectives. This commitment is embodied in Company policy and the way we do business at TapGoods and is an important principle of sound business management.

Sexual and other unlawful harassment is a violation of Title VII of the Civil Rights Act of 1964 (Title VII), as amended, as well as many state laws. Harassment based on a characteristic protected by law, such as race, color, ancestry, national origin, gender, sex, sexual orientation, gender identity, marital status, religion, age, disability, veteran status, or other characteristics protected by state or federal law, is prohibited.

It is TapGoods' policy to provide a work environment free of sexual and other harassment. To that end, harassment of TapGoods' employees by management, supervisors, coworkers, or nonemployees who are in the workplace is absolutely prohibited. Further, any retaliation against an individual who has complained about sexual or other harassment or retaliation against individuals for cooperating with an investigation of a harassment complaint is similarly unlawful and will not be tolerated. TapGoods will take all steps necessary to prevent and eliminate unlawful harassment.

Definition of Unlawful Harassment. “Unlawful harassment” is conduct that has the purpose or effect of creating an intimidating, hostile, or offensive work environment; has the purpose or effect of substantially and unreasonably interfering with an individual’s work performance; or otherwise adversely affects an individual’s employment opportunities because of the individual’s membership in a protected class.

Unlawful harassment includes, but is not limited to, epithets; slurs; jokes; pranks; innuendo; comments; written or graphic material; stereotyping; or other threatening, hostile, or intimidating acts based on race, color, ancestry, national origin, gender, sex, sexual orientation, marital status, religion, age, disability, veteran status, or other characteristic protected by state or federal law.

Definition of Sexual Harassment. While all forms of harassment are prohibited, special attention should be paid to sexual harassment. “Sexual harassment” is generally defined under both state and federal law as unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature where:

• Submission to or rejection of such conduct is made either explicitly or implicitly a term or condition of any individual’s employment or as a basis for employment decisions; or
• Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment.

Other sexually oriented conduct, whether intended or not, that is unwelcome and has the effect of creating a work environment that is hostile, offensive, intimidating, or humiliating to workers may also constitute sexual harassment.

While it is not possible to list all those additional circumstances that may constitute sexual harassment, the following are some examples of conduct that, if unwelcome, may constitute sexual harassment depending on the totality of the circumstances, including the severity of the conduct and its pervasiveness:

• Unwanted sexual advances, whether they involve physical touching or not;
• Sexual epithets, jokes, written or oral references to sexual conduct, gossip regarding one’s sex life, comments about an individual’s body, comments about an individual’s sexual activity, deficiencies, or prowess;
• Displaying sexually suggestive objects, pictures, or cartoons;
• Unwelcome leering, whistling, brushing up against the body, sexual gestures, or suggestive or insulting comments;
• Inquiries into one’s sexual experiences; and
• Discussion of one’s sexual activities.

All employees should take special note that, as stated above, retaliation against an individual who has complained about sexual harassment and retaliation against individuals for cooperating with an investigation of a sexual harassment complaint is unlawful and will not be tolerated at TapGoods.

Complaint Procedure. Any employee who believes he or she has been subject to or witnessed illegal discrimination, including sexual or other forms of unlawful harassment is requested and encouraged to make a complaint. You may complain directly to your immediate supervisor or department manager, the Controller, or any other member of management with whom you feel comfortable bringing such a complaint. Similarly, if you observe acts of discrimination toward or harassment of another employee, you are requested and encouraged to report this to one of the individuals listed above.

No reprisal, retaliation, or other adverse action will be taken against an employee for making a complaint or report of discrimination or harassment or for assisting in the investigation of any such complaint or report. Any suspected retaliation or intimidation should be reported immediately to one of the persons identified above.

All complaints will be investigated promptly and, to the extent possible, with regard for confidentiality.

If the investigation confirms conduct contrary to this policy has occurred, TapGoods will take immediate, appropriate, corrective action, including discipline, up to and including immediate termination.

TapGoods expects all employees to conduct themselves and Company business in a manner that reflects the highest standards of ethical conduct, and in accordance with all federal, state, and local laws and regulations. This includes avoiding real and potential conflicts of interests.

Exactly what constitutes a conflict of interest or an unethical business practice is both a moral and a legal question. TapGoods recognizes and respects the individual employee’s right to engage in activities outside of employment which are private in nature and do not in any way conflict with or reflect poorly on the Company.

It is not possible to define all the circumstances and relationships that might create a conflict of interest. If a situation arises where there is a potential conflict of interest, the employee should discuss this with a manager for advice and guidance on how to proceed. The list below suggests some of the types of activity that indicate improper behavior, unacceptable personal integrity, or unacceptable ethics.

1. Simultaneous employment by another firm that is a competitor of or supplier to TapGoods.
2. Carrying on Company business with a firm in which the employee, or a close relative of the employee, has a substantial ownership or interest.
3. Holding a substantial interest in, or participating in the management of, a firm to which the Company makes sales or from which it makes purchases.
4. Borrowing money from customers or firms, other than recognized loan institutions, from which our Company buys services, materials, equipment, or supplies.
5. Accepting substantial gifts or excessive entertainment from an outside organization or agency.
6. Speculating or dealing in materials, equipment, supplies, services, or property purchased by the Company.
7. Participating in civic or professional organization activities in a manner that divulges confidential Company information.
8. Misusing privileged information or revealing confidential data to outsiders.
9. Using one’s position in the Company or knowledge of its affairs for personal gains.
10. Engaging in practices or procedures that violate antitrust laws, commercial bribery laws, copyright laws, discrimination laws, campaign contribution laws, or other laws regulating the conduct of Company business.

The protection of confidential business information and trade secrets is vital to the interests and success of TapGoods. Confidential information is any and all information disclosed to or known by you because of employment with the Company that is not generally known to people outside the Company about its business.

An employee who improperly uses or discloses trade secrets or confidential business information will be subject to disciplinary action up to and including termination of employment and legal action, even if he or she does not actually benefit from the disclosed information.

All inquiries from the media must be referred to Doug Levy.

This provision is not intended to, and should not be interpreted to, prohibit employees from discussing wages and other terms and conditions of employment if they so choose.

In order to determine eligibility for benefits and overtime status and to ensure compliance with federal and state laws and regulations, TapGoods classifies its employees as shown below. TapGoods may review or change employee classifications at any time.

Exempt. Exempt employees are paid on a salaried basis and are not eligible to receive overtime pay.

Nonexempt. Nonexempt employees are paid on an hourly basis and are eligible to receive overtime pay for overtime hours worked.

Regular, Full-Time. Employees who are not in a temporary status and work a minimum of 30 hours weekly and maintain continuous employment status. Generally, these employees are eligible for the full-time benefits package and are subject to the terms, conditions, and limitations of each benefits program.

Regular, Part-Time. Employees who are not in a temporary status and who are regularly scheduled to work fewer than 30 hours weekly, but at least 20 hours weekly, and who maintain continuous employment status. Part-time employees are eligible for some of the benefits offered by the Company and are subject to the terms, conditions, and limitations of each benefits program.

Temporary, Full-Time. Employees who are hired as interim replacements to temporarily supplement the workforce or to assist in the completion of a specific project and who are temporarily scheduled to work the Company’s full-time schedule for a limited duration. Employment beyond any initially stated period does not in any way imply a change in employment status.

Temporary, Part-Time. Employees who are hired as interim replacements to temporarily supplement the workforce or to assist in the completion of a specific project and who are temporarily scheduled to work fewer than 30 hours weekly for a limited duration. Employment beyond any initially stated period does not in any way imply a change in employment status.

The standard workweek is from Saturday 12:00 a.m. CST until Friday 11:59 p.m. CST and generally consists of 40-50 work hours. Office hours are 8:30 a.m. CST to 5:30 p.m. CST, with a 1-hour lunch break. Individual work schedules may vary depending on the needs of each department.

Non-exempt employees who are scheduled for a work period of five hours or greater must take at least a 30-minute unpaid meal period during which the employee is relieved of all work duties. A paid 10-minute rest period is scheduled for non-exempt employees by their manager, generally occurring in the middle of each approximate four-hour work period.

All nonexempt employees are required to complete accurate weekly time reports showing all time actually worked. These records are required by governmental regulations and are used to calculate regular and overtime pay. At the end of each week, the employee will submit time through Zenefits for routing to his or her manager for review and approval.

When required due to the needs of the business, you may be asked to work overtime. Overtime is actual hours worked in excess of 40 in a single workweek. TapGoods does not offer nonexempt employees time and half for overtime; however, the Company will compensate for overtime hours at your agreed-upon rate. For employees located in CA, overtime will be paid for hours worked over 8 in a day for nonexempt employees. Paid leave, such as holiday, PTO, bereavement time, and jury duty does not apply toward work time. All overtime work by nonexempt employees must be approved in advance by a supervisor or manager.

Deductions from Pay/Safe Harbor Exempt Employees. The Company does not make improper deductions from the salaries of exempt employees and complies with the salary basis requirements of the Fair Labor Standards Act (FLSA). Employees classified as exempt from the overtime pay requirements of the FLSA will be notified of this classification at the time of hire or change in position.

Permitted deductions. The FLSA limits the types of deductions that may be made from the pay of an exempt employee. Deductions that are permitted include:

• Deductions that are required by law, e.g., income taxes;
• Deductions for employee benefits when authorized by the employee;
• Absence from work for one or more full days for personal reasons other than sickness or disability;
• Absence from work for one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness;
• Offset for amounts received as witness or jury fees, or for military pay; or
• Unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions.

During the week an exempt employee begins work for the Company or during the last week of employment, the employee will only be paid for actual hours worked. In addition, an employee may be paid only for hours worked during a period when the employee is using unpaid leave under the Family and Medical Leave Act (FMLA).

Improper deductions. If an employee classified as exempt believes that an improper deduction has been taken from his or her pay, the employee should immediately report the deduction to the Controller. The report will be promptly investigated and if it is found that an improper deduction has been made, the Company will reimburse the employee for the improper deduction.

TapGoods' payroll is processed through Zenefits Payroll (Zenefits). Zenefits will deduct from team member’s earnings taxes required by law or regulation (FICA, withholding tax, etc.), plus insurance premiums and other voluntary benefits selected by the team member.

Paychecks are processed on a semi-monthly basis. Team members will be paid on the 15th of each month and the last day of each month. If either of these days fall on a Saturday, Sunday, or national holiday, the employee will be paid the preceding business day. Team members will be paid through Direct Deposit. Team members can view their pay stub at Zenefits.com.

Employee files are maintained by Zenefits and Trakstar and are considered confidential. Managers and supervisors may only have access to personnel file information on a need-to-know basis. An employee may access their personnel files by logging into their account on Zenefits or Trakstar. Personnel file access by current employees and former employees upon request will generally be permitted within 3 days of the request unless otherwise required under state law. Representatives of government or law enforcement agencies, in the course of their duties, may be allowed access to file information.

Relatives and domestic partners may be hired by the Company if (1) the persons concerned will not work in a direct supervisory relationship, and (2) the employment will not pose difficulties for supervision, security, safety, or morale. For the purposes of this policy, “relatives” are defined as spouses, children, siblings, parents, or grandparents. A “domestic partnership” is generally defined as a committed relationship between two individuals who are sharing a home or living arrangements.

Current employees who marry each other or become involved in a domestic partnership will be permitted to continue employment with the Company provided they don’t work in a direct supervisory relationship with each other or otherwise pose difficulties as mentioned above. If employees who marry or live together do work in a direct supervisory relationship with each other, the Company will attempt to reassign one of the employees to another position for which he or she is qualified if such a position is available. If no such position is available, the employees will be permitted to determine which one of them will resign from the Company.

TapGoods recognizes that team members may choose to enter a romantic relationship with each other while working here. If they choose to engage in this type of relationship, both team members must consent to the relationship and the team members cannot be working in a supervisor/subordinate role and they cannot have direct influence on one another’s positions. This policy helps eliminate favoritism, perceptions of favoritism, conflicts of interest, and a hostile work environment due to sexual harassment.

TapGoods appreciates and rewards open communication about all topics, including voluntary resignation. We value feedback and strive to make TapGoods the best place you will ever work. If you are considering departing or have made the decision to leave TapGoods, please notify your manager as soon as possible to discuss options of continuing your employment with us. If the best decision is to terminate your employment, we ask that you give as much advance notice as possible knowing that TapGoods will assist in making your departure seamless and accommodate your needs.

If you have made the decision and determined your last day previously, we ask that you provide a written notice to their manager at least 10 working days in advance of the last day. Holidays and OOO (Out Of Office) time will not be counted towards the 10-day notice. Note that 10 days is NEVER enough time to handle hand-offs smoothly, and we always appreciate the most possible advance notice.

In most cases, a member of the Operations team will conduct an exit interview on or before the last day of employment to discuss company property to be sent back, your time at TapGoods, and final pay. If applicable, information regarding benefits continuation through the Consolidated Omnibus Budget Reconciliation Act (COBRA) will be administered and made available through Zenefits.

Should it become necessary because of business conditions to reduce the number of employees or work hours, this will be done at the discretion of the Company.

Final Pay. An employee who quits must be paid in full by the next regularly scheduled payday.

An employee who is terminated must be paid in full within six days of the termination date.

Accrued vacation, sick leave and paid time off (PTO) must be paid upon separation from employment only if a written agreement or written employer policy specifically provides for payment of such benefits.

References. All calls concerning a professional reference check need to be directed to the Controller. Only the Controller is authorized to give out information concerning former team members. This policy will protect TapGoods from the liability of false information being communicated in a professional reference inquiry.

TapGoods and our clients are often of special interest to the media. In the interests of TapGoods, its team members and clients, due diligence must be taken to ensure that information originating from TapGoods is accurate, properly approved, complete, reflects the official position of the organization, and released to the media in a timely manner.

Under no circumstances should any TapGoods team member communicate with the media or publicly disclose any details regarding TapGoods or its clients (past or present) without written approval from the Senior Leadership Team.

Media is defined as any vehicle or group of vehicles used to convey information, news, entertainment, or advertising messages to an audience. These include, but are not limited to, editors, reporters, and bloggers. If you have any questions or are unsure what defines someone from the media, please contact a member of the Senior Leadership Team.

Team members are also required to follow these procedures when contacted or contacting the media:

Incoming Requests from the Media. If you are contacted by any media, please direct them to a member of the Senior Leadership Team. We are prepared to handle the inquiry and work with appropriate internal parties and ensure appropriate client approval.

Outgoing Communication with the Media. TapGoods team members are prohibited from, under any circumstances, contacting any external media, including (but not limited to) reporters, bloggers, and other media outlets, to discuss any client relationships, client work, or confidential TapGoods information of any kind, without the express written approval from a member of the Senior Leadership Team.

Public Disclosure of Any Client Information (regardless of medium). Before publicly disclosing any client-related information in any medium (including acknowledgment that client works with TapGoods) not addressed above, TapGoods team members must first gain written client approval and then provide this information to the Senior Leadership Team to ensure TapGoods is in compliance with all contractual requirements as outlined in the client’s MSA.

Failure to comply with this policy may result in disciplinary action up to and including termination.

It is the policy of TapGoods to maintain a drug-free work environment that is safe and productive for employees and others having business with the Company.

The unlawful use, possession, purchase, sale, distribution, or being under the influence of any illegal drug and/or the misuse of legal drugs while on Company or client premises or while performing services for the Company is strictly prohibited.

Compliance with this policy is a condition of employment. Employees who test positive or who refuse to submit to substance abuse screening will be subject to termination. Notwithstanding any provision herein, this policy will be enforced at all times in accordance with applicable state and local law.

Any employee violating this policy is subject to discipline, up to and including termination, for the first offense.

TapGoods is committed to providing a safe, violence-free workplace for our employees. Due to this commitment, we discourage employees from engaging in any physical confrontation with a violent or potentially violent individual or from behaving in a threatening or violent manner. Threats, threatening language, or any other acts of aggression or violence made toward or by any employee will not be tolerated. A threat may include any verbal or physical harassment or abuse, attempts to intimidate others, menacing gestures, stalking, or any other hostile, aggressive, and/or destructive actions taken for the purposes of intimidation. This policy covers any violent or potentially violent behavior that occurs in the workplace or at Company-sponsored functions.

All TapGoods employees bear the responsibility of keeping our work environment free from violence or potential violence. Any employee who witnesses or is the recipient of violent behavior should promptly inform their supervisor, manager, or the Controller. All threats will be promptly investigated. No employee will be subject to retaliation, intimidation, or discipline as a result of reporting a threat in good faith under this guideline.

Any individual engaging in violence against the Company, its employees, or its property will be prosecuted to the full extent of the law. All acts will be investigated, and the appropriate action will be taken. Any such act or threatening behavior may result in disciplinary action up to and including termination.

Protecting the safety of our employees and visitors is the most important aspect of running our business.

All employees have the opportunity and responsibility to contribute to a safe work environment by using common sense rules and safe practices and by notifying management when any health or safety issues are present. All employees are encouraged to partner with management to ensure maximum safety for all.

In the event of an emergency, notify the appropriate emergency personnel by dialing 911 to activate the medical emergency services.

TapGoods team members are expected to be online and available between the hours of 9:00 am to 6:00 pm CST Monday through Friday. A team member anticipating an absence must submit an out-of-office request through Zenefits for their manager’s approval as early as possible. Team members who are absent from work for two or more consecutively scheduled workdays without notifying their manager will be considered to have voluntarily resigned without notice. Excessive absenteeism or tardiness will result in discipline up to and including termination. Failure to show up or call in for a scheduled shift without prior approval may result in termination.

Communication between employees and supervisors or managers is very important. Discussions regarding job performance are ongoing and often informal. Employees should initiate conversations with their supervisors if they feel additional ongoing feedback is needed.

Performance Evaluations. Formal performance evaluations are conducted in January and July. Performance is evaluated based on the success measures identified in the team member’s performance scorecard. The evaluation is recorded and archived in our software called Trakstar.

Pay increases are reviewed typically once per year during the evaluation closest to the team member’s start date or date of the most recent increase. Under certain circumstances, increases can occur at any point throughout the year and are handled on a case-by-case basis. There is no guarantee that a team member will be granted a pay increase every year.

Employees are permitted to work a second job as long as it does not interfere with their job performance with TapGoods. Employees with a second job are expected to work their assigned schedules. A second job will not be considered an excuse for poor job performance, absenteeism, tardiness, leaving early, refusal to travel, or refusal to work overtime or different hours.

If outside work activity causes or contributes to job-related problems, it must be discontinued, or the employee may be subject to disciplinary action, up to and including termination.

TapGoods encourages employees to share information with co-workers and with those outside the Company for the purposes of gathering information, generating new ideas, and learning from the work of others. Social media provide inexpensive, informal, and timely ways to participate in an exchange of ideas and information. However, information posted on a website is 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” refers to blogs, forums, and social networking sites, such as Twitter, Facebook, LinkedIn, YouTube, Instagram, and SnapChat, among others.

Off-duty use of social media. Employees may maintain personal websites or weblogs on their own time using their own facilities. Employees must ensure that social media activity does not interfere with their work. In general, the Company considers social media activities to be personal endeavors, and employees may use them to express their thoughts or promote their ideas.

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 manager, and does not identify or reference Company clients, customers, or vendors without express permission. The Company monitors employee use of Company computers and the Internet, including employee blogging and social networking activity.

Respect. Demonstrate respect for the dignity of the Company, its owners, its customers, its vendors, and its employees. A social media site is a public place, and employees should avoid inappropriate comments. For example, employees should not divulge TapGoods confidential information such as trade secrets, client lists, or information restricted from disclosure by law on social media sites. Similarly, employees should not engage in harassing or discriminatory behavior that targets other employees or individuals because of their protected class status or make defamatory comments. Even if a message is posted anonymously, it may be possible to trace it back to the sender.

Post disclaimers. If an employee identifies himself or herself as a Company employee or discusses matters related to the Company on a social media site, the site must include a disclaimer on the front page stating that it does not express the views of the Company and that the employee is expressing only his or her personal views. For example: “The views expressed on this website/Weblog are mine alone and do not necessarily reflect the views of my employer.” Place the disclaimer in a prominent position and repeat it for each posting expressing an opinion related to the Company or the Company’s business. Employees must keep in mind that if they post information on a social media site that is in violation of Company policy and/or federal, state, or local law, the disclaimer will not shield them from disciplinary action.

Competition. Employees should not use a social media to criticize the Company’s competition and should not use it to compete with the Company.

Confidentiality. Do not identify or reference Company clients, customers, or vendors without express permission. Employees may write about their jobs in general but may not disclose any confidential or proprietary information. For examples of confidential information, please refer to the confidentiality policy. When in doubt, ask before publishing.

New ideas. Please remember that new ideas related to work or the Company’s business belong to the Company. Do not post them on a social media site without the Company’s permission.

Links. Employees may provide a link from a social media site to the Company’s website during employment (subject to discontinuance at the Company’s sole discretion). Employees should contact the Web design group to obtain the graphic for links to the Company’s site and to register the site with the Company.

Trademarks and copyrights. Do not use the Company’s or others’ trademarks on a social media site or reproduce the Company’s or others’ material without first obtaining permission.

Legal. Employees are expected to comply with all applicable laws, including but not limited to, Federal Trade Commission (FTC) guidelines, copyright, trademark, and harassment laws.

Discipline. Violations of this policy may result in discipline up to and including immediate termination of employment.

Note: Nothing in this policy is meant to, nor should it be interpreted to, in any way limit your rights under any applicable federal, state, or local laws, including your rights under the National Labor Relations Act to engage in protected concerted activities with other employees to improve or discuss terms and conditions of employment, such as wages, working conditions, and benefits.

Employees should be able to work in an environment that is free from unnecessary annoyances and interference with their work. In order to protect our employees and visitors, solicitation by employees is strictly prohibited while either the employee being solicited or the employee doing the soliciting is on “working time.” “Working time” is defined as time during which an employee is not at a meal, on break, or on the premises immediately before or after his or her shift.

Employees are also prohibited from distributing written materials, handbills, or any other type of literature on working time and, at all times, in “working areas,” which includes all office areas. “Working areas” do not include break rooms, parking lots, or common areas shared by employees during nonworking time.

Nonemployees may not trespass or solicit or distribute materials anywhere on Company property at any time.

The Company provides a wide variety of communication tools and resources to employees for use in running day-to-day business activities. Whether it is the telephone, voice mail, fax, scanner, Internet, intranet, e-mail, text messaging, or any other Company-provided technology, use should be reserved for business-related matters. All communication using these tools should be handled in a professional and respectful manner.

Employees should not have any expectation of privacy in their use of Company computer, phone, or other communication tools. All communications made using Company-provided equipment or services including email and internet activity, are subject to inspection by the Company. Employees should keep in mind that even if they delete an email, voicemail or other communication, a copy may be archived on the Company’s systems.

Employee use of Company-provided communication systems, including personal e-mail and internet use, that are not job-related have the potential to drain, rather than enhance, productivity and system performance. You should also be aware that information transmitted through e-email and the internet is not completely secure or may contain viruses or malware, and information you transmit and receive could damage the Company’s systems as well as the reputation and/or competitiveness of the Company. To protect against possible problems, delete any e-mail messages prior to opening that are received from unknown senders and advertisers. It also is against Company policy to turn off antivirus protection software or make unauthorized changes to system configurations installed on Company computers.

Violations of this policy may result in termination for a first offense. The Company encourages employees to use e-mail only to communicate with fellow employees, suppliers, customers, or potential customers regarding Company business. Internal and external e-mails are considered business records and may be subject to federal and state recordkeeping requirements as well as to discovery in the event of litigation. Be aware of this possibility when sending e-mails within and outside the Company.

All use of Company-provided communications systems, including e-mail and internet use, should conform to our Company guidelines/policies, including but not limited to the Equal Opportunity, Harassment, Confidential Information, and Conflicts of Interest. So, for example, employees should not engage in harassing or discriminatory behavior that targets other employees or individuals because of their protected class status or make defamatory comments. Similarly, employees should not divulge confidential information such as trade secrets, client lists, or information restricted from disclosure by law on social media sites.

Because e-mail, telephone and voice mail, and internet communication equipment are provided for Company business purposes and are critical to the Company’s success, your communications may be accessed without further notice by Information Technology department administrators and Company management to ensure compliance with this guideline.

The electronic communication systems are not secure and may allow inadvertent disclosure, accidental transmission to third parties, etc. Sensitive information should not be sent via unsecured electronic means.

Office telephones are for business purposes. While the Company recognizes that some personal calls are necessary, these should be kept as brief as possible and to a minimum. Personal use of the Company’s toll-free numbers is strictly prohibited. Abuse of these privileges is subject to corrective action up to and including termination.

The Company reserves the right to monitor customer calls to ensure employees abide by Company quality guidelines and provide appropriate levels of customer service. Employees working in sales and customer service will be subject to telephone monitoring and e-mail. [move to above] Should the subject matter of any telephone conversation become personal while monitoring is taking place, monitoring of the call will immediately be discontinued.

Nothing in this policy is designed to interfere with, restrain, or prevent employee communications regarding wages, hours, or other terms and conditions of employment as protected under the National Labor Relations Act. Employees have the right to engage in or refrain from such activities.

The Company expects employees to comply with the Company’s standards of behavior and performance and to correct any noncompliance with these standards.

Under normal circumstances, the Company endorses a policy of progressive discipline in which it attempts to provide employees with notice of deficiencies and an opportunity to improve. It does, however, retain the right to administer discipline in any manner it sees fit. This policy does not modify the status of employees as employees-at-will or in any way restrict the Company’s right to bypass the disciplinary procedures suggested.

The following steps are suggested in the discipline procedure. All steps should be documented in the employee’s Trakstar notes.

Step 1: Informal Discussion. When a performance problem is first identified, the nature of the problem and the action necessary to correct it should be thoroughly discussed with the employee.

Step 2: Counseling. If a private informal discussion with the employee has not resulted in corrective action, following a thorough investigation, the supervisor should meet with the employee and (a) review the problem, (b) permit the employee to present his or her views on the problem, (c) advise the employee that the problem must be corrected, (d) inform the employee that failure to correct the problem will result in further disciplinary action which may include discharge, and (e) issue a counseling notice to the employee.

Step 3: Reprimand. If satisfactory performance and corrective action are not achieved under Steps l and 2, the supervisor and his or her superior should meet with the employee in private and proceed via (a) through (d) above, and issue a reprimand notice to the employee.

Step 4: Suspension. Supervisors have the authority to temporarily remove employees from the workplace, with or without pay, if approved in advance by the department director and the Controller. An exempt employee generally may not be suspended without pay for less than a full day, and the suspension must be related to written workplace conduct rules applicable to all employees, e.g., such as a written policy prohibiting sexual harassment or workplace violence.

Step 5: Failure to improve. Failure to improve performance or behavior after the written warning or suspension can result in termination.

The progressive disciplinary procedures described above also may be applied to an employee who is experiencing a series of unrelated problems involving job performance or behavior.

In cases involving serious misconduct, or any time the supervisor determines it is necessary, such as a major breach of policy or violation of law, the procedures contained above may be disregarded. Typically, the supervisor should suspend the employee immediately (with or without pay) and an investigation of the incidents leading up to the suspension should be conducted to determine if any further action, such as termination, should be taken.

Important Note: Many states and municipalities have laws related to leaves of absence and paid time off that include family and medical leave, paid sick leave, small necessities leave, leave for victims of domestic violence, etc. In addition, many have laws that are applicable to public sector employers. The provisions below only address federal law.

Holiday pay. Full-time regular employees are eligible for holiday pay. Hourly employees become eligible after they have been actively with the Company for 3 months. Salaried employees may receive holiday pay immediately upon joining the Company. Part-time and temporary employees, including summer employees, are not eligible for holiday pay. Holiday pay shall be at the employee’s regular straight-time rate, inclusive of shift premiums, times his regularly scheduled hours (not to exceed 8 hours).

A holiday shall be considered as 8 hours worked for the purpose of computing overtime.

To receive holiday pay, an eligible nonexempt employee must be at work or taking an approved absence on the work days immediately preceding and immediately following the day on which the holiday is observed. An approved absence is a day of paid vacation or paid sick leave. If an employee is absent on one or both of these days because of an illness or injury, the Company may require verification of the reason for the absence before approving holiday pay.

Office Closed Days. In addition to paid out-of-office days, team members will also receive the following paid holidays off: New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, Christmas Eve, and Christmas Day. Management will review the holiday schedule on a yearly basis. Any changes will be announced by December in order to better help team members plan their out-of-office time.

Religious observances. Employees who need time off to observe religious practices or holidays not already scheduled by the Company should speak with their supervisor. Depending upon business needs, the employee may be able to work on a day that is normally observed as a holiday and then take time off for another religious day. Employees may also be able to switch a scheduled day with another employee, or take vacation time, or take off unpaid days. The Company will seek to reasonably accommodate individuals’ religious observances.

Out-of-Office (OOO) Days. We take a unique approach to out-of-office time that embodies our commitment to our principles and is aligned with our intention of building trust-rich relationships. Rather than acquiring a set amount of OOO time and then using it up, we simply empower people to take time away as they need it. There are no accruals to worry about, no burning of time in the fourth quarter to avoid losing it, and no need to request exceptions for yearly rollovers. Just use good judgment and take time away to recharge.

How much time can I take? There’s no set amount that each person is allowed or required to take each year. We use the following as a general guide but understand that it won’t apply to everyone in every situation.

• 0-2 years of service, 20 days per year
• 3-4 years of service, 22 days per year
• 5-9 years of service, 25 days per year
• 10-14 years of service, 28 days per year
• 15 or more years of service, 30 days per year

Some may take more than these guidelines while others take less. The amount of time you take may also vary from year to year. For example, you may take less this year in order to enjoy an extended vacation next year. The goal is to provide you the flexibility you need without the constraints of accruals, year-to- year rollovers, etc.

Requesting OOO Time. Team members are required to receive advance approval from their manager for any foreseeable absences. OOO requests must be entered in Zenefits. Unforeseeable absences must be entered in Zenefits upon return to the office.

Full, accurate, prompt time-keeping is essential to the success of our business (as in any professional services business), so all time, including time away, must be tracked.

Prior to using an OOO day, team members are required to reflect their absence(s) on their Microsoft Outlook calendar, Out of Office Assistant, as well as, voicemail outgoing message to reflect availability status, and emergency contact information.

See the Benefits & Leaves of Absence section for more information on leaves of absence.

TapGoods complies with the federal Family and Medical Leave Act (FMLA), which requires employers to grant unpaid leaves of absence to qualified workers for certain medical and family-related reasons. The Company also abides by any state and local leave laws. The more generous of the laws will apply to the employee if the employee is eligible under both federal and state laws.

Please note there are many requirements, qualifications, and exceptions under these laws, and each employee’s situation is different. Contact the Controller or Staff Accountant to discuss options for leave.

The FMLA requires private employers with 50 or more employees and all public agencies, including state, local, and federal employers, and local education agencies (schools), to provide eligible employees up to 12 weeks of unpaid, job-protected leave in any 12-month period for certain family and medical reasons. The 12-month period is a rolling period measured backward from the date an employee uses any FMLA leave, except for leaves to care for a covered servicemember with a serious illness or injury. For those leaves, the leave entitlement is 26 weeks in a single 12-month period, measured forward from the date an employee first takes that type of leave.

Basic Leave Entitlement. The FMLA requires covered employers to provide up to 12 weeks of unpaid, job-protected leave to eligible employees for the following reasons: (1) for incapacity due to pregnancy, prenatal medical care, or child birth; (2) to care for the employee’s child after birth or placement for adoption or foster care; (3) to care for the employee’s spouse, son or daughter, or parent who has a serious health condition; or (4) for a serious health condition that makes the employee unable to work.

Military Family Leave Entitlements. Eligible employees with a spouse, son, daughter, or parent on active duty or called to active duty status in the National Guard or Reserves in support of a contingency operation may use their 12-week leave entitlement to address certain qualifying exigencies. Qualifying exigencies may include addressing issues that arise from (1) short notice of deployment (limited to up to seven days of leave); (2) attending certain military events and related activity; (3) arranging childcare and school activities; (4) addressing certain financial and legal arrangements; (5) attending certain counseling sessions; (6) spending time with covered military family members on short-term temporary rest and recuperation leave (limited to up to five days of leave); (7) attending post-deployment reintegration briefings; (8) arranging care for or providing care to a parent who is incapable of self-care; and (9) any additional activities agreed upon by the employer and employee that arise out of the military member’s active duty or call to active duty.

The FMLA also includes a special leave entitlement that permits eligible employees to take up to 26 weeks of leave to care for a covered servicemember during a single 12-month period. A covered servicemember is a current member of the Armed Forces, including a member of the National Guard or Reserves, who has a serious injury or illness incurred in the line of duty on active duty that may render the servicemember medically unfit to perform his or her duties and for which the servicemember is undergoing medical treatment, recuperation, or therapy; or is in outpatient status; or is on the temporary disability retired list.

Benefits and Protections During FMLA Leave. During FMLA leave, the Company will maintain the employee’s health coverage under any “group health plan” on the same terms as if the employee had continued to work. Upon return from FMLA leave, most employees will be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. However, an employee on FMLA leave does not have any greater right to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during the FMLA leave period.

Certain highly compensated key employees also may be denied reinstatement when necessary to prevent “substantial and grievous economic injury” to the Company’s operations. A “key” employee is an eligible salaried employee who is among the highest paid ten percent of the Company’s employees within 75 miles of the worksite. Employees will be notified of their status as a key employee, when applicable, after they request FMLA leave.

Use of FMLA leave cannot result in the loss of any employment benefit that accrued prior to the start of an employee’s leave.

If the team member chooses not to return to work for reasons other than a continued serious health condition of the team member or the team member’s family member or a circumstance beyond the team member’s control, TapGoods will require the team member to reimburse TapGoods the amount it paid for the team member’s premiums during the leave period.

While on paid leave, TapGoods will continue to make payroll deductions to collect the team member’s share of the premium. While on unpaid leave, the team member must continue to make this payment, either in person or by mail. The payment must be received by the Accounting Department by the 15th day of each month. If the payment is more than 30 days late, the team member’s benefits may be dropped for the duration of the leave. TapGoods will provide written notification 30 days prior to the team member’s loss of coverage.

Employee Eligibility. The FMLA defines eligible employees as employees who: (1) have worked for the Company for at least 12 months; (2) have worked for the Company for at least 1,250 hours in the previous 12 months; and (3) work at or report to a worksite which has 50 or more employees or is within 75 miles of Company worksites that taken together have a total of 50 or more employees.

Definition of Serious Health Condition. A serious health condition is an illness, injury, impairment, or physical or mental condition that involves either an overnight stay in a medical care facility or continuing treatment by a health care provider for a condition that either prevents the employee from performing the functions of the employee’s job or prevents the qualified family member from participating in school, work, or other daily activities.

Subject to certain conditions, the continuing treatment requirement may be met by a period of incapacity of more than three consecutive calendar days combined with at least two visits to a health care provider or one visit and a regimen of continuing treatment, or incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may meet the definition of continuing treatment.

Use of Leave. An employee does not need to use this leave entitlement in one block. Leave can be taken intermittently or on a reduced work schedule when medically necessary. Employees must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt the employer’s operations. Leave due to qualifying exigencies also may be taken on an intermittent or reduced work schedule basis.

Team Member Status After Leave. A team member who is under FMLA leave will be able to return to the same position or a position with equivalent status, pay, benefits and other employment terms. The position will be the same or one that is virtually identical in terms of pay, benefits, and working conditions.

Substitution of Paid Leave for Unpaid Leave. Employees may choose or employers may require the use of accrued paid leave while taking FMLA leave. Accordingly, the Company requires employees to use any accrued paid vacation, personal, and sick days during an unpaid FMLA leave taken because of the employee’s own serious health condition or the serious health condition of a family member or to care for a seriously ill or injured family member in the military. In addition, the employee must use any accrued paid vacation or personal days (but not sick days) during FMLA leave taken to care for a newborn or newly placed child or for a qualifying exigency arising out of a family member’s active duty or call to active duty status in support of a contingency operation. In order to use paid leave for FMLA leave, employees must comply with the Company’s normal paid leave procedures found in its Vacation and Sick Leave policies.

Employee Responsibilities. Employees must provide 30 days advance notice of the need to take FMLA leave when the need is foreseeable. When 30 days’ notice is not possible, the employee must provide notice as soon as practicable and generally must comply with the Company’s normal call-in procedures. The Company may delay leave to employees who do not provide proper advance notice of the foreseeable need for leave, absent unusual circumstances preventing the notice.

Employees must provide sufficient information for the Company to determine if the leave may qualify for FMLA protection and the anticipated timing and duration of the leave. Sufficient information may include that the employee is unable to perform job functions, the family member is unable to perform daily activities, the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting the need for military family leave. Employees also must inform the Company if the requested leave is for a reason for which FMLA leave was previously taken or certified. Employees also are required to provide a certification and periodic recertification supporting the need for leave. The Company also may require a second, and if necessary, a third opinion (at the Company’s expense) and, when the leave is a result of the employee’s own serious health condition, a fitness for duty report to return to work. The Company also may delay or deny approval of leave for lack of proper medical certification.

Certification of the Serious Health Condition. TapGoods requires certification of the serious health condition. The team member should respond to such a request within 15 days of the request or provide a reasonable explanation for the delay. Failure to provide certification may result in a denial of continuation of leave.

Certification of the serious health condition shall include: the date when the condition began, its expected duration, and a brief statement of treatment. For medical leave for the team member’s own medical condition, the certification must also include a statement that the team member is unable to perform work of any kind or a statement that the team member is unable to perform the essential functions of their position.

For a family member who is seriously ill, the certification must include a statement that the family member requires assistance and that the team member’s presence would be beneficial and/or desirable.

If the team member plans to take intermittent leave or work a reduced schedule, the certification must also include the dates the team member will be away and the duration of treatment as well as a statement of medical necessity for taking intermittent leave or working a reduced schedule.

TapGoods has the right to ask for a second opinion if it has reason to doubt the certification. TapGoods will pay for the team member to get a certification from a second doctor of TapGoods' choice. If necessary to resolve a conflict between the original certification and the second opinion, TapGoods will require the opinion of a third doctor. TapGoods and the team member will mutually select the third doctor, and TapGoods will pay for the opinion. This third opinion will be considered final. The team member will be provisionally entitled to leave and benefits while the second and/or third opinions are pending.

Company Responsibilities. The Company will inform employees requesting leave whether they are eligible under the FMLA. If they are, the notice will specify any additional information required as well as the employees’ rights and responsibilities. If employees are not eligible, the Company will provide a reason for the ineligibility.

The Company will inform employees if leave will be designated as FMLA-protected and the amount of leave counted against the employee’s FMLA leave entitlement. If the Company determines that the leave is not FMLA-protected, the Company will notify the employee.

Other Provisions. Under an exception to the Fair Labor Standards Act (FLSA) in the FMLA regulations, hourly amounts may be deducted for unpaid leave from the salary of executive, administrative, and professional employees; outside sales representatives; certain highly-skilled computer professionals; and certain highly compensated employees who are exempt from the minimum wage and overtime requirements of the FLSA, without affecting the employee’s exempt status. This special exception to the “salary basis” requirements for the FLSA’s exemptions extends only to eligible employees’ use of FMLA leave.

Employees may not perform work for self-employment or for any other employer during an approved leave of absence, except when the leave is for military or public service or when the Company has approved the employment under its Outside Employment policy and the employee’s reason for FMLA leave does not preclude the outside employment.

Unlawful Acts by Employers. The FMLA makes it unlawful for any employer (1) to interfere with, restrain, or deny the exercise of any right provided under the FMLA; or (2) to discharge or discriminate against any person for opposing any practice made unlawful by the FMLA or for involvement in any proceeding under or relating to the FMLA.

Enforcement. An employee may file a complaint with the U.S. Department of Labor or may bring a private lawsuit against an employer.

The FMLA does not affect any federal or state law prohibiting discrimination or supersede any state or local law or collective bargaining agreement which provides greater family or medical leave rights.

Washington Paid Family Leave Benefits (Washington Employees Only)
The State of Washington provides for paid family and medical leave (PFML) benefits. To be eligible for PFML benefits, an employee must work at least 820 hours for any employer in Washington State in a qualifying period.

The following reasons qualify for PFML:

• Medical leave, for the employee's own serious health condition;
• Family leave, for:
  • A family member's serious health condition;
  • Bonding with the employee's newborn child within the first 12 months after birth or bonding with a child under age 18 within the first 12 months after placement with the employee; and
  • A qualifying exigency arising out of the employee's family member being on active duty in the Armed Forces.

A family member includes:

• Child (including a biological, adopted, foster or stepchild or a child to whom the employee stands in loco parentis, is a legal guardian or is a de facto parent, regardless of age or dependency status;
• Grandchild (i.e., child of the employee's child);
• Grandparent (i.e., parent of the employee's parent);
• Parent (including a biological, adoptive, de facto, foster or stepparent; legal guardian of an employee or the employee's spouse or state registered domestic partner; or an individual who stood in loco parentis to an employee when the employee was a child);
• Sibling; and
• Spouse or state registered domestic partner.

The maximum duration of leave an employee may take during a 52-consecutive-calendar-week period depends on the reason for taking leave and is as follows:

• 12 weeks of family or medical leave;
• 14 weeks of medical leave, if the employee develops a pregnancy-related serious health condition that results in incapacity;
• 16 weeks of combined family and medical leave; or
• 18 weeks of combined family and medical leave, if the employee develops a pregnancy-related serious health condition that results in incapacity.

The weekly benefit amount is determined and paid by the State of Washington Employment Security Department (ESD). Eligible employees in Washington should contact the ESD for additional information.

California Family Rights Act (CFRA) - California Employees Only
All employees with at least 12 months of employment and who have worked at least 1,250 hours during the 12 months before a requested leave begins are eligible for leave under the California Family Rights Act.

Generally, eligible employees may receive up to 12 weeks of leave within a 12-month period for one of the following reasons:

• The birth of a child or placement of a child for adoption or foster care;
• To care for a family member with a serious health condition (family members include: a child of any age, parent, spouse, domestic partner, grandparent, grandchild and sibling);
• To recover from or seek treatment for an employee’s own serious health condition; or
• For a qualifying exigency related to the covered active duty or call to covered active duty of an employee's spouse, domestic partner, child, or parent in the US Armed Forces.

This is a protected leave of absence which means your job or position will be protected for a period of time established by law, unless you fail to return from leave. TapGoods will continue to pay the employer portion of your insurance benefits and collect from you your portion of your insurance benefits while you are on leave.

Employees must take vacation time and/or sick time concurrently with this leave. Time off benefits do not accrue and are not paid while an employee is on an unpaid leave of absence, with the exception of any PTO or sick time used concurrently.

Employees may also be eligible for California's State Disability Insurance (SDI). This is a state-funded program that provides wage replacement to eligible employees, including Temporary Disability Insurance and paid family leave under Family Temporary Disability Insurance.

Employees may be required to submit a medical certification or other documentation regarding the reason for requested leave. Additional information about these protections is posted in the workplace as required by law. Please see [HR Representative] for more details and required forms for requesting this leave.

California Pregnancy Disability Leave (PDL) - California Employees Only
TapGoods provides employees with job-protected unpaid leave for disabilities related to pregnancy, childbirth, or related medical conditions for up to three months. The specific duration of leave will be determined based on the advice of the employee’s health care provider and applicable law.

Accrued paid sick leave must be used concurrently with leave taken under this policy. Time off benefits do not accrue and are not paid while an employee is on an unpaid leave of absence, with the exception of any PTO or sick leave used concurrently.

This is a protected leave of absence which means your job or position will be protected for a period of time established by law, unless you fail to return from leave. TapGoods will continue to subsidize the cost of your insurance benefits while you are on leave.

Please see your HR Representative for more information on this benefit.

San Francisco Paid Parental Leave Ordinance (PPLO)
Employees working in San Francisco, California may be eligible to receive supplemental compensation under the San Francisco Paid Parental Leave Ordinance (PPLO) if they receive California Paid Family Leave (California PFL) benefits from the State of California to bond with a minor child during the first year after the child's birth or placement through foster care or adoption. The law provides eight weeks of wage replacement benefits to eligible employees who take time off from work to bond with a newborn baby, newly adopted child or newly placed foster child or to care for a seriously ill family member. This is a supplemental to the state of California's paid leave benefit.

To be eligible for San Francisco's PPL benefits, employees must:

• Apply for and receive California PFL benefits for the purpose of bonding with a newborn baby, newly adopted child or newly placed foster child;
• Be employed by the covered employer for at least 180 calendar days prior to the first day of leave for which California PFL benefits for bonding with a new child are payable; and
• Work at least eight hours per week for the covered employer within the geographic boundaries of San Francisco, with at least 40 percent of total weekly hours worked within the geographic boundaries of San Francisco.

An employee must agree in writing to reimburse the employer for the full amount of the employer's contribution if the employee voluntarily leaves employment within 90 days of the end of the leave period.

Please see your HR Representative for more information on this benefit.

Other Paid Family Leave
Other states may provide paid family leave which employees may be eligible for. These are generally unprotected leaves which provide partial income replacement. Generally, these benefits cover leave for an employee's serious medical condition, to provide care to family members due to their serious health condition, for reasons related to domestic or sexual violence, to bond with a newborn child during the first year of the child’s life, or to bond with a child after adoption or foster care placement. Please see HR Representative for more detail regarding how to apply for paid family leave benefits.

Company Subsidy Pertaining to Reproductive Freedom
Effective June 28, 2022 for female employees who reside in the United States, the Company will subsidize (up to $2,500 per need) for travel required for the purpose of accessing medical care, including a legal abortion, if that medical care is not legally available within 100 miles of the employee’s home.

TapGoods supports the military obligations of all employees and grants leaves for uniformed service in accordance with applicable federal and state laws. Any employee who needs time off for uniformed service should immediately notify the Controller and his or her supervisor, who will provide details regarding the leave. If an employee is unable to provide notice before leaving for uniformed service, a family member should notify the supervisor as soon as possible.

Upon return from military leave, employees will be granted the same seniority, pay, and benefits as if they had worked continuously. Failure to report for work within the prescribed time after completion of military service will be considered a voluntary termination.

All employees who enter military service may accumulate a total absence of 5 years and still retain employment rights.

Employees with more than 3 months’ service may take up to 3 days of paid bereavement leave upon the death of a member of their immediate family. “Immediate family members” are defined as an employee’s spouse, domestic partner, parents, stepparents, siblings, children, stepchildren, grandparent, father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, or grandchild. All regular, full-time employees may take up to one (1) day off with pay to attend the funeral of an extended family member (aunts, uncles, and cousins).

The Company may require verification of the need for the leave. The employee’s supervisor and the Controller will consider this time off on a case-by-case basis.

Payment for bereavement leave is computed at the regular hourly rate to a maximum of 8 hours for 1 day. Time off granted in accordance with this policy shall not be credited as time worked for the purpose of computing overtime.

The Company supports employees in their civic duty to serve on a jury. Employees must present any summons to jury duty to their supervisor as soon as possible after receiving the notice to allow advance planning for an employee’s absence.

Nonexempt employees will be paid for up to 2 weeks of jury duty service at their regular rate of pay minus any compensation received from the court for the period of service. Exempt employees are subject to the same 2-week limitation except that they will also receive pay for any days they serve as a juror or witness in a workweek in which they actually perform work. All employees may use any accrued time off if required to serve more than 2 weeks on a jury.

If an employee is released from jury duty after 4 hours or less of service, he or she must report to work for the remainder of that work day.

Time for appearance in court for personal business will be the individual employee’s responsibility. Normally, personal days or vacation days will be used for this purpose.

TapGoods recognizes that voting is a right and privilege of being a citizen of the United States and encourages employees to exercise their right to vote. In almost all cases, you will have sufficient time outside working hours to vote. If for any reason you think this won’t be the case, contact your supervisor to discuss scheduling accommodations.

As part of your total compensation TapGoods absorbs a large portion of your health care premiums. Additionally, TapGoods absorbs some of the dependent level premiums as well as a way of buffering the cost increases for our team members.

TapGoods offers medical insurance through BlueCross BlueShield. Medical premiums are payroll deducted on a pre-tax basis.

For more information regarding benefit programs, please refer to the Company Summary Plan Descriptions (SPD), which are found on Zenefits, or contact the Controller or Staff Accountant. To the extent of the information provided here conflicts with the SPD or full plan document, the full plan document will control.

Medical, Dental, and Vision Insurance. Full-time employees working 30 hours or more per week are eligible for insurance on the first of the month following 30 days of service. To keep coverage in force, every insured employee must work a minimum of 30 hours per week.

Health Savings Account is a tax-free, interest-bearing account used to help pay the cost of health care expenses not covered by the Consumer Driven Health Plan (CDHP) medical plan.

HSA can be used to pay for qualified medical expenses, including:

• Deductibles
• Coinsurance
• Charges above the negotiated rate for out-of-network services
• Prescriptions drugs

Team members may contribute up to the maximum annual limit determined by the IRS. Contributions may be made through pre-tax payroll deductions (if using the bank affiliated with Zenefits - Avidia Bank) or team members have the option of opening a HSA with another bank and deducting the contributing amount off their income tax statement. All funds contributed remain in the account year after year, just like a 401(k) account. There is no “use it or lose it” rule for HSA.

The HSA is available only to team members enrolled in the CDHP medical plan. However you are not eligible to contribute if:

• You are enrolled in Medicare (parts A, B, or D)
• You are covered by another medical plan (such as your spouse’s plan) that does not qualify as a CDHP
• You or your spouse participate in a health care FSA (unless it is specially a Limited Purpose FSA)
• You can be claimed as a dependent on someone else’s tax return.

TapGoods provides all full-time active team members who work a minimum of 30 hours per week with 30 days or more of service with Basic Life and Accidental Death & Dismemberment insurance (AD&D) at no cost through Guardian Life. Employees are eligible for this benefit on the first of the month following 30 days of service. Please see the schedule of benefits below for more detailed information:

Benefit Team Member Only Amount
Basic Life 2 x annual pay (minimum $220,000) to a maximum of $400,000
AD&D 2 x annual pay (minimum $220,000) to a maximum of $400,000

The amount of Basic Life and Accidental Death & Dismemberment Insurance will be reduced according to the following schedule:

• Reduced by 35% at age 65
• Reduced by 60% at age 70
• Reduced by 80% at age 75

TapGoods provides short-term disability (STD) benefit at no cost to all active full-time team members working a minimum of 30 hours per week with more than 90 days of service. Employees are eligible for this benefit on the first of the month following 30 days of service. Short-term disability is meant to bridge the 90-day period until long-term disability can cover an employee. If you are not able to work due to an illness or accident, STD coverage will provide you with 60% of your weekly base earnings to a maximum of $3,000 per week for up to 12 weeks. This is a voluntary benefit and is funded solely by the employee. In addition, employees will not be paid vacation or sick leave for approved absences covered by the Company’s program, except to supplement the short-term disability benefits. All eligible team members are automatically enrolled in this benefit; no action is required on the team member’s part.

Childbirth Policy. The US lags most developed countries in post-childbirth leave. Whereas 36 countries in Europe and Asia offer 52+ weeks of paid post-childbirth leave, the US offers 0.

This has created a significant disconnect between the needs of families and the policies of the US government. 82% of Americans want some form of federal paid childbirth leave.

The Family Medical Leave Act (FMLA) requires most companies with 50+ employees in a single location to provide up to 12 weeks of unpaid leave to employees who have been with the company a year or more. But, that is unpaid leave and doesn’t cover many workers.

While some companies offer some form of paid leave, most do not. Only 23% of those working in private industries have access to paid maternity leave, and only 15% of employees in companies with 99 or fewer employees have such access.

In the wake of this disconnect and with the desire to support TapGods with childbirth leave, TapGoods has updated its policies to provide some relief during this critical period:

• Though FMLA is not applicable to TapGoods, we will offer up to 12 weeks of unpaid leave for all employees who have been with the company for 1+ year at the start of their childbirth leave.
• Employees who are on healthcare benefits offered by the company may continue to use those benefits while on leave.
• TapGoods will provide the first week of post-childbirth leave with 100% pay for all employees who have been with the company for at least 1 year at the start of their leave. Aside from this, typical paid OOO time may not be used during leave.
• Through our short-term disability (STD) benefit, which is available for free to employees who have been with the company 90+ days, employees can typically receive 60% of pay (up to $3,000/week) for 5 weeks in the case of a non-surgical birth or 7 weeks for a surgical birth.
• We want to enable employees who have given birth to have 10-weeks time off with some pay. For employees who have been with the company 2+ years at the start of their maternity, the Company will provide 60% of pay (up to $3,000/week) for the remaining 2-4 weeks not covered by STD.
• Should employees who have given birth wish to take off up to 12 weeks, they can take unpaid time off after STD and paid coverage by the company ends.
• This policy applies to employees who have given birth, regardless of their gender identity.
• Should an employee wish to take paid and/or unpaid leave under this policy, they should notify HR and seek approval as early as possible and no later than 3 months before the requested leave period. During the leave period, employees on our STD policy will need to provide medical documentation to our insurance company.

Source: Chris Kolmar. "Average Paid Maternity Leave In The US [2022]: US Maternity Leave Statistics" Zippia.com. Sep. 12, 2022, https://www.zippia.com/advice/average-paid-maternity-leave/

Short-term disability benefits may run concurrently with FMLA leave and/or any other leave where permitted by state and federal law.

Some states have a mandatory disability program where you may be charged a premium in the form of a payroll tax. You may elect to purchase the Company disability benefits as a supplement to the state program.

In general, when an employee seeks leave using STD, the Company has the right to review what portion of wages are being supplemented through the Company’s STD insurance provider, as well as any wages supplemented through their state of residence.

During any leave, TapGoods will continue to pay the employer portion of your insurance benefits and collect from you your portion of your insurance benefits while you are on leave.

To ensure you have financial protection in the event of a long-term disability (LTD), this benefit is provided to all active full-time team members working a minimum of 30 hours per week with more than 30 days of service. LTD coverage provides you with 60% of your monthly earnings to a maximum of $10,000 per month. All eligible team members are automatically enrolled in this benefit, no action is required on your part.

Long-term disability benefits will run concurrently with FMLA leave and/or any other leave where permitted by state and federal law.

TapGoods offers all team members who are age 21 and older and have been employed with the Company for three months the opportunity to participate in a 401(k) Retirement Plan. The plan is administered through Human Interest. Once you meet the eligibility requirements, you must enter the plan immediately. Team members have online access to financial tools to help them make informed decisions about their investing needs.

The plan has an automatic 6% enrollment. If you are not interested in enrolling in the plan, you will need to inform the Controller / accounting team.

TapGoods will match 33% of the first 6% of pay the team member contributes through salary deferral. Team members are always 100% vested in the contributions they choose to defer. TapGoods contributions are based on years of vesting service. Less than one year equals 0 percentage, 1 year is 20%, 2 years is 40%, 3 years is 60%, 4 years is 80%, and 5 years is 100%.

If you have questions, please contact the Controller or Staff Accountant.

Workers’ compensation is a “no-fault” system that provides compensation for medical expenses and wage losses to employees who are injured or who become ill because of employment.

TapGoods pays the entire cost of workers’ compensation insurance. The insurance provides coverage for related medical and rehabilitation expenses and a portion of lost wages to employees who sustain an injury on the job.

The Company abides by all applicable state workers’ compensation laws and regulations.

If an employee sustains a job-related injury or illness, it is important to notify the supervisor and Controller immediately. The supervisor will complete an injury report with input from the employee and return the form to the Controller. The Controller will file the claim with the insurance Company. In cases of true medical emergencies, report to the nearest emergency room.

Workers’ compensation benefits (paid or unpaid) will run concurrently with FMLA leave, if applicable, where permitted by state and federal law. In addition, employees will not be paid vacation or sick leave for approved absences covered by the Company’s workers’ compensation program, except to supplement the workers’ compensation benefits such as when the plan only covers a portion of the employee’s salary as allowed by state law.