Staff Handbook
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TABLE OF CONTENTS
INTRODUCTION ..................................................................................................................... 6
NFM VISION AND CORE VALUES .................................................................................................. 7
SERVICE PLUS ............................................................................................................................... 9
OPEN DOOR POLICY ................................................................................................................... 10
EMPLOYMENT ..................................................................................................................... 11
EQUAL EMPLOYMENT OPPORTUNITY ....................................................................................... 11
AMERICANS WITH DISABILITIES ACT (ADA) ............................................................................... 11
INITIAL REVIEW PERIOD ............................................................................................................. 12
EMPLOYMENT CLASSIFICATION ................................................................................................. 12
TRANSFERS AND PROMOTIONS ................................................................................................. 13
CASH HANDLING ........................................................................................................................ 14
OUTSIDE EMPLOYMENT............................................................................................................. 14
TERMINATION OF EMPLOYMENT .............................................................................................. 14
RE-EMPLOYMENT....................................................................................................................... 15
PAYROLL ............................................................................................................................. 16
TIME CLOCK................................................................................................................................ 16
PAY PERIOD ................................................................................................................................ 16
WORK SCHEDULE ....................................................................................................................... 17
MEAL BREAKS ............................................................................................................................. 17
REST BREAKS .............................................................................................................................. 17
OVERTIME ELIGIBILITY ............................................................................................................... 17
PAY GRADE COMPENSATION PLAN ........................................................................................... 18
SALES PAY FOR PERFORMANCE (SPP) COMPENSATION PLAN .................................................. 19
STAFF RECORDS ......................................................................................................................... 20
GARNISHMENTS ......................................................................................................................... 20
BENEFITS & INSURANCE ...................................................................................................... 21
BENEFITS SUMMARY.................................................................................................................. 21
GENERAL NOTES ON BENEFIT PAY ............................................................................................. 22
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HOLIDAY PAY .............................................................................................................................. 22
PAID TIME OFF (PTO) ................................................................................................................. 22
BEREAVEMENT PAY.................................................................................................................... 24
EMPLOYEE ASSISTANCE PROGRAM ........................................................................................... 25
ALIGHT........................................................................................................................................ 25
TUITION REIMBURSEMENT ........................................................................................................ 25
NEBRASKA FURNITURE MART PROFIT SHARING PLAN.............................................................. 26
STAFF PRICING AND SHOPPING ................................................................................................. 27
RELOCATION BENEFITS .............................................................................................................. 27
JURY DUTY .................................................................................................................................. 28
ELECTION DUTY .......................................................................................................................... 28
FAMILY AND MEDICAL LEAVE POLICY (INCLUDING MILITARY FAMILY LEAVE ENTITLEMENTS) 28
MILITARY LEAVE ......................................................................................................................... 38
WORKERS’ COMPENSATION ...................................................................................................... 38
FLEXIBLE SPENDING ACCOUNTS ................................................................................................ 38
INSURANCE ................................................................................................................................ 39
STAFF REFERRAL BONUS ............................................................................................................ 39
GENERAL COMPANY POLICIES ............................................................................................. 41
ATTENDANCE AND PUNCTUALITY ............................................................................................. 41
BULLETIN BOARDS ..................................................................................................................... 42
COMMUNICATIONS SYSTEMS.................................................................................................... 43
COMPANY PROPERTY................................................................................................................. 43
CONFIDENTIALITY AND NON-DISCLOSURE ................................................................................ 44
CONFLICTS OF INTEREST ............................................................................................................ 44
DISCIPLINARY ACTION ................................................................................................................ 45
HIPAA ......................................................................................................................................... 46
INCLEMENT WEATHER OR EMERGENCY STORE INFORMATION ............................................... 46
FOOD AND BEVERAGES.............................................................................................................. 47
HARASSMENT-FREE ENVIRONMENT ......................................................................................... 47
HAZARDOUS COMMUNICATIONS STANDARD ........................................................................... 48
LACTATION ................................................................................................................................. 48
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PARKING ..................................................................................................................................... 48
PERSONAL COMPUTER SOFTWARE ........................................................................................... 48
PERSONAL GIFTS ........................................................................................................................ 48
PERSONAL PROPERTY ................................................................................................................ 49
PERSONAL VIDEO, RECORDING DEVICES OR CAMERAS ............................................................ 49
PRIVACY...................................................................................................................................... 49
PROFESSIONAL APPEARANCE .................................................................................................... 49
SAFETY ........................................................................................................................................ 52
SOCIAL NETWORKING ................................................................................................................ 53
SOLICITATIONS ........................................................................................................................... 55
SUBSTANCE ABUSE (PERTAINS TO STAFF PERMANENTLY ASSIGNED TO NEBRASKA, KANSAS
AND TEXAS LOCATIONS) ............................................................................................................ 55
SUBSTANCE ABUSE (PERTAINS TO STAFF PERMANENTLY ASSIGNED TO IOWA LOCATION) .... 57
THEFT PREVENTION ................................................................................................................... 59
THREATS OF VIOLENCE .............................................................................................................. 59
TOBACCO-FREE ENVIRONMENT ................................................................................................ 59
TRAINING ................................................................................................................................... 60
TRAVEL ....................................................................................................................................... 60
WEAPONS POLICY ...................................................................................................................... 60
BERKSHIRE HATHAWAY ....................................................................................................... 62
BERKSHIRE HATHAWAY INC. CODE OF BUSINESS CONDUCT AND ETHICS................................ 62
BERKSHIRE HATHAWAY INC. PROHIBITED BUSINESS PRACTICES POLICY ................................. 68
THE BERKSHIRE HATHAWAY ETHICS AND COMPLIANCE HOTLINE............................................ 89
THE BERKSHIRE HATHAWAY ETHICS AND COMPLIANCE HOTLINE BROCHURE ........................ 91
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INTRODUCTION
At Nebraska Furniture Mart (NFM), we believe that our staff members are one of our
greatest assets. We are committed to providing the highest quality service and products
to our customers, and we hire people who share this commitment. To ensure your
individual success and the continued success of NFM, we have policies and procedures
in place that help provide guidance and consistency across the organization. In the
following pages, you will find information regarding NFM’s policies, procedures and
benefits. Your understanding of this information is important to effective and productive
job performance. This handbook will help answer some of the questions you may have
about NFM, but should you have additional questions, please feel free to contact your
supervisor or the Human Resources Office for further information.
Since the information in this staff handbook is subject to change as situations warrant,
NFM may modify or eliminate the policies, procedures or benefits in this handbook.
Changes will be communicated to you as soon as reasonably possible. This handbook
is not a contract. Nothing in this staff handbook or in any other policy or practice of NFM
shall be considered a contract with any employee or any other party, or a guarantee of
employment. Any statements or promises 0to the contrary are not enforceable and may
not be relied upon. Employment is at will. This means that NFM or you may terminate
your employment at any time, for any reason. Only the president of NFM has authority
to enter into any contract regarding employment terms, and any such agreement must
be in writing.
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NFM VISION AND CORE VALUES
We attribute our success to the two founding principles of Mrs. B:
“Sell cheap and
tell the truth.”
Rose Blumkin
Our company vision and values build on these principles and guide us in the decisions
we make and the actions we take. Our vision captures what we want to accomplish; it is
a picture of our desired future.
Our Vision
Based on our tradition of selling cheap, telling
the truth, and providing the greatest selection
and service, we improve people’s lifestyles.
At the heart of NFM’s culture is our commitment to “Be One.” Be One reminds us that
no matter where we work or what we do, we are all members of the NFM family who
work toward the same goals and share the same core values.
What does “Honor the Legend. Create the Future.” mean? We want to honor our
company’s long history of business success. It is important for us to remember that
those successes were built upon the strong operating philosophies developed by Mrs. B
and Louie B. At the same time, we do not want to live in the past or become
complacent. We are constantly looking for ways to improve our customer’s shopping
experience. We are also constantly looking for ways to improve the career opportunities
that we provide for our staff members.
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Our Core Values
Our Core Values define who we are and what we do to realize our vision and achieve
our goals. They set the standard for how we deal with customers and suppliers, and
how we treat each other.
Integrity & Honesty
We are honest and ethical with everyone, maintaining the highest standards of personal
and professional conduct.
Living this Core Value:
Be true to your word and honorable in your actions.
Customer Loyalty
We create loyal customers by each of us doing our part and doing it right the first time.
Everything we do begins and ends with our customers.
Living this Core Value:
Be the person others can count on.
Quality Products and Services
We are committed to providing products and services that meet, and wherever possible
exceed, our customer’s requirements. We strive to “do it right the first time,” practice
prevention and continuously improve our work processes.
Living this Core Value:
Be a positive influence on people and processes.
Teamwork
We work together to find solutions that have positive results for others as well as
ourselves. We treat everyone with respect and fairness, recognize each other’s
contributions, and celebrate our achievements.
Living this Core Value:
Be someone who shares: ideas, successes, credit and effort.
Cost-Effective & Competitive
We strive to be the low-cost operator in all our practices and processes, to be able to
provide our customers with the best value, while ensuring a profitable company.
We will not be undersold by our competitors.
Living this Core Value:
Be proud of the part you play in helping people achieve a better lifestyle.
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SERVICE PLUS
At Nebraska Furniture Mart, everything we do begins and ends with our customers.
Service Plus training is an investment we make in every teammate to equip our team
with the skills necessary to meet and exceed customer expectations, while fostering and
enhancing our internal partnerships. Service Plus helps us to live our Core Value of
customer loyalty by teaching the skills critical in our quest to create loyal staff and
lifelong customers.
KEY PRINCIPLES
• Maintain or enhance self-esteem.
• Listen and respond with empathy.
• Ask for help and encourage
involvement.
• Share thoughts, feelings and
rationale.
• Provide support without removing
responsibility.
TAKING THE HEAT
• Hear them out.
• Empathize.
• Apologize.
• Take responsibility for action.
INTERACTION GUIDELINES
Step 1: Open
• Greet.
• Describe the purpose of the
discussion.
• Identify importance of the discussion.
Step 4: Agree
• Specify actions including back-up
plans.
• Commit to follow-through, if
appropriate.
Step 2: Clarify the Situation
• Ask questions to determine need.
• Listen carefully.
• Provide appropriate information.
• Summarize to check understanding.
Step 5: Close
• Highlight importance of plan.
• Confirm confidence and commitment.
Step 3: Develop
• Collaborate to develop solutions.
• Seek ideas from others.
• Explore needed support and
resources.
We look forward to seeing you in Service Plus!
Service Plus is a product of Development Dimensions International (DDI).
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OPEN DOOR POLICY
NFM believes in open and honest communication. We realize you may occasionally
have a concern in regard to your employment. Do not hesitate to discuss any workrelated problems with your immediate supervisor. If you do not feel satisfied after the
discussion with your supervisor, you should discuss it with the supervisor’s manager.
You can also request a meeting with Human Resources at any time.
Our policy is to deal with all staff fairly and honestly and to respect and recognize each
staff member as an individual. In our opinion, unionization would interfere with the
individual treatment, respect and recognition we offer. As a result, we believe a unionfree workplace is in the best interests of our staff, the company and our customers.
You are in the best position to know and understand the details of your work and to
discover new or improved ways of performing your work and serving our customers.
You should feel free to make suggestions to your supervisor to benefit yourself and
NFM.
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T
EMPLOYMENT
INTRODUCTION
EQUAL EMPLOYMENT OPPORTUNITY
NFM believes that all persons are entitled to equal employment opportunities and does
not discriminate because of race, religion, age, sex, disability, sexual orientation, gender
identity, genetic information, national origin, marital status, military status, color, creed,
or any other class protected by law. It is NFM’s intent that discrimination shall not exist
in hiring, promotions, discipline, demotions, terminations, compensation, benefits,
training or conditions of employment. Any concerns should be reported to your
supervisor or Human Resources so they can be investigated and resolved
appropriately.
AMERICANS WITH DISABILITIES ACT (ADA)
The Americans with Disabilities Act is a comprehensive federal law specifically for
individuals with physical and mental disabilities.
The ADA defines a person with a disability as an individual who:
•
•
•
Has a physical or mental impairment that limits one or more of his or her major
life activities (i.e. walking, speaking, seeing, hearing, working, etc.); or
Has a record of such impairment; or
Is regarded as having such impairment
In compliance with the ADA, NFM will offer equal employment opportunities for qualified
individuals who may have a physical or mental disability, but who can still perform the
essential functions of the job. NFM will provide a qualified individual with a disability a
reasonable accommodation as required by law provided that the accommodation does
not created undue hardship on NFM. Employees who qualify as disabled should discuss
the need for possible accommodation with Human Resources at
hr-management@nfm.com. Such information will be kept as confidential as possible.
NFM is committed to taking all other actions necessary to ensure equal employment
opportunity for disabled individuals in accordance with all applicable federal, state, and
local laws. Any applicant or employee who believes there has been a violation of the
NFM’s policy or any applicable law relating to accommodating a disabled individual
should immediately contact the Human Resources Department at
hr-management@nfm.com without fear of reprisal. All complaints are promptly
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investigated and all information obtained in the course of an investigation is held in
confidence and only disclosed to individuals who have a need for the information.
Individuals found to have retaliated, either directly or indirectly, against any employee
who has requested an accommodation, reports discrimination, or participates in an
investigation of discrimination will be subject to disciplinary action, up to and including
termination.
INITIAL REVIEW PERIOD
All newly hired staff members will be subject to close evaluation during the first 90 days
of employment. This initial review period is not a time of guaranteed employment. All
staff members are employed at will. During this period, both NFM and the staff member
will have an opportunity to determine the staff member’s interest in and suitability for
continued employment. Staff members who fail to perform at an acceptable level or
better may be discharged.
EMPLOYMENT CLASSIFICATION
All staff members are classified into one of the following categories:
Full-time: The staff member is regularly scheduled and works 35 or more hours per
week.
Part-time: The staff member is regularly scheduled and works 15 or more hours per
week, but less than 35 hours per week.
Quarter-time: The staff member has a regular schedule throughout the year, less than
15 hours a week.
On-call: The staff member works on an as-needed basis. Continuation of on-call status
is dependent on the availability of the staff member and the needs of the company. In
this case, the staff member will be considered to have resigned employment effective
the date HR notifies the staff member by letter.
Temporary: The staff member is scheduled for a temporary assignment, usually no
longer than three months.
If you request a change of classification, you must give a two-week notice for your
supervisor to evaluate the request. Changing classification is at NFM’s sole discretion.
The supervisor contacts Human Resources regarding approved changes.
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TRANSFERS AND PROMOTIONS
Purpose
Transfers and promotions provide NFM staff members opportunities to advance
careers, recognize and reward performance, offer new challenges and meet
organizational objectives. They provide an environment where staff members have
opportunities to contribute and develop to their fullest potential in meeting personal and
organizational goals.
Staff may be eligible to transfer after six months of employment.
Policy
Whenever possible, and as permitted by law, NFM will attempt to fill all new and vacant
jobs with current staff members following the guidelines below. Unless otherwise
required by law, only job-related factors are considered, which means that all
employment decisions are made without discrimination on the basis of race, religion,
age, sex, disability, sexual orientation, gender identity, national origin, marital status,
military status, color, creed, or any other class protected by law.
Open jobs may be posted via our HRIS system. Staff members may apply by following
the instructions listed there. Staff members are allowed to be in process for one internal
position at a time, unless approved by Human Resources.
Human Resources will screen all applications to ensure the staff member: meets the
minimum job qualifications, has been in his/her current job for six months, has a
generally meets expectations/meets requirements or better rating for their current
performance and they have their current supervisor’s approval. Exceptions to these
requirements may be made with management approval or as required by law.
After reviewing qualifications, work records and test scores, if applicable, the most
qualified individuals will be scheduled for interviews. The job will be offered by Human
Resources to the candidate whom the hiring manager deems the best qualified based
on all factors and as required by law. Management does reserve the right to consider
outside candidates for any open job and subject to all legal requirements.
It is encouraged that Transfers will be effective the beginning of the next reasonable pay
period but not to exceed two pay periods. Any discrepancies will be taken to next level
managers.
Candidates who are not selected will be notified by the hiring manager or Human
Resources of the decision. It is encouraged that the hiring manager or Human
Resources discuss the decision and provide feedback to these candidates on what they
should do to improve their chances for a new position in the future.
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Staff members on the pay grade compensation plan who transfer are eligible for a
prorated merit increase based upon current performance. The merit increase
percentage is prorated based on the number of pay periods since the last merit
increase. The rate of pay for staff members on the SPP compensation plan who transfer
to a graded job will be based on the individual circumstances (the starting pay of the
new job, the staff member’s relevant experience, pay history and performance, etc.).
Generally, the transferring staff member is then put on a new merit increase schedule,
with the next eligibility for a merit increase one year from the transfer date. More detail
on transferring to a SPP position is provided in the SPP plan document.
NFM may occasionally request or require that a staff member transfer to another
position or department. Management may initiate a transfer based on factors, such as
these examples:
1.
2.
3.
4.
A staff member’s current job performance
Business needs
Company expansion
Marriage to a coworker in the same department
CASH HANDLING
All cash handling positions are security sensitive, and as a result, require an acceptable
credit history. Credit reports may be obtained periodically to ensure an acceptable credit
history. If you are in a cash handling job and your credit history changes, your eligibility
for continued employment may be affected.
OUTSIDE EMPLOYMENT
Outside employment is acceptable as long as:
• You notify your supervisor and gain his/her approval of the outside work in advance.
• It does not in any way affect your efficiency, attendance or job performance while
working for NFM, and you do not work at such other employment while on the job at
NFM.
• It is not in competition with NFM, nor is it a supplier or contractor to NFM.
• No NFM property (telephone, computer, supplies, work space, etc.) is used in
connection with outside employment.
• You do not work full-time at another employer while working full-time at NFM.
Contact Human Resources if you have any questions.
TERMINATION OF EMPLOYMENT
If you decide to resign from NFM, a minimum of two weeks’ written notice is requested
(with the exception of on-call or temporary staff who work their full assignment). If you
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give and work an approved notice, you will be paid an amount equal to the lesser of
your current PTO bank balance or the maximum annual PTO calculation based on your
service anniversary date. Staff members assigned to the Nebraska location only will be
paid their current PTO bank balance, per Nebraska State law.
Discharged staff members will receive payment only for hours worked. Staff members
assigned to the Nebraska location only will be paid their current PTO bank balance, per
Nebraska State law. NFM may terminate a staff member’s employment at any time, for
any reason.
All company property issued to you must be returned when you terminate employment.
If the property is not returned timely, the cost for replacing these items will be deducted
from your pay, where allowed by law.
Nebraska Furniture Mart is part of a controlled group under Berkshire Hathaway, Inc. If
a staff member terminates employment under Nebraska Furniture Mart to start
employment with another subsidiary of Berkshire Hathaway, please notify the NFM
Benefits Team immediately. Staff are not allowed to remove money from the Nebraska
Furniture Mart Profit Sharing 401(k) Plan if beginning employment with another
Berkshire Hathaway company.
RE-EMPLOYMENT
Former NFM staff members who resign in good standing will be considered for reemployment. Former staff members who left without proper notice or were discharged
will not be eligible for re-employment. Rehired staff members will be treated as new staff
members for seniority and benefits purposes.
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Part 3 - Payroll
PAYROLL
INTRODUCTION
TIME CLOCK
Hourly and SPP staff members are required to clock in and out daily to accurately
record all hours worked. Your employee number and/or badge id number are your
responsibility and should not be shared with anyone.
You are required to start work at the time scheduled, and you are not permitted to start
work prior to your scheduled start time unless you have your supervisor’s approval. You
may clock in up to a maximum of seven minutes prior to your scheduled start time as a
convenience, although you will only be paid from your scheduled start time.
You are required to clock in and out for meals (excluding staff members who work
offsite), but are not required to do so for rest breaks.
If you work more than scheduled or if you need to leave work for any reason before the
end of your shift, you must get your supervisor’s approval in advance. If you are unable
to clock in/out for any reason, you must advise your supervisor as soon as possible.
NFM is required by law to keep an accurate record of all hours worked. Failure to follow
these procedures will result in discipline. Any intentional misrepresentation of your time
worked is illegal and grounds for immediate discharge. If you clock in or out for another
staff member, you both may be discharged.
No Hourly or SPP Staff member is permitted to work “off the clock.” This includes, but is
not limited to, online training, checking and returning phone calls or emails for
customers or other NFM Staff members.
PAY PERIOD
You will be paid on a biweekly basis. Pay periods begin on Monday and end two weeks
later on Sunday night. Pay is issued every other Tuesday.
NFM will not issue wages to staff members in advance of the regularly scheduled
payday.
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Direct deposit of your wages into your personal account(s) is available by completing
the on-line enrollment information in Employee Self-Service (ESS). If you do not enroll
for Direct Deposit, your wages will be issued on a paycard. NFM does not issue paper
paychecks.
WORK SCHEDULE
You will receive a work schedule that details your starting and ending times, meal
breaks and rest breaks, if any. Due to the nature of our business, you will be required to
work additional hours or modify your schedule on occasion. You are not authorized to
work at home or work outside your normal work schedule without prior approval from
your supervisor.
MEAL BREAKS
Departmental schedules for meal breaks vary because of the difference in work
schedules and the necessity of maintaining uninterrupted service to our customers.
Depending on individual departmental schedules and practices, each staff member may
receive from one-half to one hour for lunch and/or dinner. Your supervisor will inform
you of the time and duration of your meal break(s). You must clock out for your meal
break(s).
REST BREAKS
A rest break up to 15 minutes may be provided away from your workstation when
working more than four hours. Rest breaks are scheduled at your supervisor’s
discretion. You are not required to clock in or out for a rest break. Due to business
needs, staff members may not always be able to take a break or may be asked to return
before completing a break to service customers.
You are not to leave the premises during a rest break. You are not permitted to shop for
merchandise during a rest break. Breaks may not be taken in connection with your
meals or at the beginning or end of your work hours.
OVERTIME ELIGIBILITY
Under the provisions of the federal Fair Labor Standards Act, all jobs must be classified
as exempt or non-exempt from overtime pay. All staff members will be classified into
one of the following categories:
Hourly: The staff member is paid an hourly rate for all hours worked and is eligible for
overtime (i.e. non-exempt) for hours worked over 40 in a workweek. Overtime is one
and one-half times the normal hourly rate.
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SPP: The staff member is paid on the basis of commissions. The staff member is not
eligible for overtime (i.e. exempt) for hours worked over 40 in a workweek.
Salaried: The staff member is exempt from overtime pay because the nature of his/her
work meets the requirements of the Fair Labor Standards Act. The staff member
receives a biweekly salary and is not eligible for overtime (i.e. exempt) for hours worked
over 40 in a workweek.
PAY GRADE COMPENSATION PLAN
Who’s Covered: The pay grade compensation plan covers full-time, part-time and
quarter-time hourly or salaried staff members, except for commissioned or base-plus
commission sales staff members. On-call and temporary staff members are not covered
by the pay grade plan but are paid what NFM deems to be a competitive wage for the
work they are performing.
Policy: It is the policy of NFM to treat all staff members equitably and consistently with
respect to pay decisions. Pay grade plan guidelines are structured to meet this goal and
to provide rational and systematic procedures to assist supervisors in making these
decisions.
Objectives: The primary objectives of NFM’s pay grade administration plan are
to ensure that pay levels are competitive with the external marketplace, to provide pay
opportunities that reflect internal differences in job responsibility, to establish a link
between pay and individual performance, to maintain a plan that is cost-effective for
NFM, and to maintain uncomplicated processes that allow for consistent administration.
Documentation: Job descriptions will be collected and maintained in order to ensure
accurate knowledge of job content and competitive value. They will be used for job
evaluation, recruiting and performance appraisal purposes.
Job Evaluation: Job evaluation is the process used to establish the relative value of
jobs at NFM, based on job responsibilities. NFM uses a market-based job evaluation
system that reflects both internal differences in job responsibilities and the external
supply/demand for talent.
Pay Structure: The NFM pay structure is a series of grades that provide parameters for
the administration of base pay. Each grade has an associated pay range with a
minimum and maximum rate. Pay ranges overlap from one grade to the next. Relevant
pay information is reviewed annually by Human Resources to ensure the
competitiveness of the pay ranges for the coming year. Some jobs may also have ongoing or periodic incentives.
Performance Appraisals: NFM believes that formal, as well as informal, performance
feedback is essential to the growth and development of all staff members. The
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performance appraisal is designed to provide positive feedback, as well as feedback for
improvement. Your supervisor will discuss the job requirements and criteria that your
performance appraisal will evaluate. All performance appraisals and related
documentation become part of your staff member file.
Performance appraisals are generally completed on each annual anniversary of a
particular job. Your supervisor may also complete a performance appraisal at any other
time deemed appropriate. Transfer and annual performance appraisals may or may not
result in a merit pay adjustment depending on your level of performance, as well as your
current rate of pay.
Merit Pay: It is the policy of NFM to tie pay decisions to individual staff member
performance through the use of merit pay guidelines. Merit pay guidelines are reviewed
annually and identify the increase percentage based on the staff member’s overall
rating on his/her performance appraisal.
SALES PAY FOR PERFORMANCE (SPP) COMPENSATION PLAN
Who’s Covered: The SPP compensation plan covers most inside sales staff members.
Objective: The objective of the SPP compensation plan is to motivate sales staff
members to increase invoiced sales volume and add-on sales while maintaining gross
margins, minimizing returns and focusing on NFM Core Values.
Compensation: SPP staff members earn commissions for their invoiced sales. Sales
are considered invoiced as of the date NFM’s computer system is updated that the
merchandise has been picked up, delivered or installed. All credits (returns, allowances,
and adjustments) affect invoiced sales volume as of the date they are processed. Tax,
delivery and miscellaneous labor are excluded from invoiced sales figures.
Commissions are only paid on regularly scheduled pay dates.
All work-related hours, including those spent in other than direct sales activity, are to be
recorded by the staff member on the time clock or by the manager in specific
situations. Overtime (time and one-half for hours over 40 in a workweek) pay is not part
of this Plan because it is commission-based.
SPP staff (with the exception of SPP staff in the Des Moines location) also have the
opportunity to earn an additional incentive.
Benefit Pay: Paid time off under the Plan will be calculated to provide a level of pay
similar to what the staff member earns on a per hour basis while actively at work.
Sales staff members will receive a detailed summary of the SPP compensation plan
during training. The summary includes an explanation of how compensation is
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calculated. SPP sales staff members are expected to review the summary and bring
any questions to their manager.
Sales staff members will receive their personal “Pay Summary – Staff Member’s Pay
Stub” document on, or before, each pay date. If you do not receive the document, or
have questions about the information contained on the document, contact your
manager.
Termination of Employment: A staff member who is being paid under the SPP plan at
the time they terminate employment will continue to be paid their SPP Compensation for
six (6) pay periods beyond the pay period that their termination date falls in.
Commissions are only paid on regularly scheduled pay dates.
STAFF RECORDS
For various reasons, it is important that NFM records contain accurate and current
personal information about each staff member. All of this information is strictly
confidential and will be kept secured at all times. NFM restricts access to such
information to people with a need to know and will release personal information only
with your approval, except to verify employment or in response to appropriate
investigation or legal requirements.
Any change in your marital status, number of dependents in your immediate family,
change of address or telephone number should be reported immediately to Human
Resources via the Employee Self-Service system.
GARNISHMENTS
NFM is required by law to accept court and other government agency ordered
garnishments to withhold wages. The affected staff member will be advised and NFM
will comply with the wage withholding requirements until a release from the court or
agency is received. Each staff member is expected to assume responsibility for his/her
financial obligations.
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PAYROL
BENEFITS & INSURANCE
INTRODUCTION
BENEFITS SUMMARY
A short summary of the primary benefits available to staff in each employment category
that meet eligibility requirements of the specific benefit is listed below:
21
Parttime
Benefits
Fulltime
Holiday Pay
Paid Time Off (PTO)
Maternity/Adoption Leave
Employee Assistance Program/Guidance
Tuition Reimbursement
Profit Sharing, including 401(k)
Staff Pricing
Workers’ Compensation
TXFM, INC. Occupational Injury Benefit Plan (for
Texas staff only – see separate document on
iMart)
Bereavement Pay
Flexible Spending Accounts
Optional Vision Insurance
Optional Medical Insurance
Optional Dental Insurance
Company Paid Disability (STD or LTD)
Company Paid Life Insurance
Voluntary Life Insurance
Voluntary Long Term Disability (Vol LTD)
Alight
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
no
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
no
no
no
no
no
no
no
no
no
no
Quartertime,
On-call,
Temp
no
no
no
YES
no
YES
YES
YES
YES
no
no
no
no
no
no
no
no
no
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GENERAL NOTES ON BENEFIT PAY
Holiday pay, Paid Time Off (PTO), and bereavement pay are all benefits provided
voluntarily by NFM and will NOT be included in the calculation of overtime as they are
paid time off and not pay for hours worked.
All available PTO time must be used before requesting unpaid time off. All time off
work, whether paid or not, requires advance approval by your supervisor. Approved
time off for religious reasons may be taken with pay if you have PTO available.
Otherwise the approved time off will be unpaid.
HOLIDAY PAY
Staff are eligible for Holiday Pay immediately. Full-time staff receive 8 hours of holiday
pay and part-time staff receive 4 hours of holiday pay for each of the following
holidays:
New Year’s Day
Memorial Day
Independence Day
Labor Day
Thanksgiving
Christmas
Easter Sunday is a paid holiday only for those staff scheduled to work that Sunday.
Easter holiday pay is 8 hours for full-time staff and 4 hours for part-time staff.
If a holiday falls within a PTO period, the holiday does not count as PTO hours. For
hourly staff, if a holiday falls on your regular day off, you will receive holiday pay for that
day in lieu of an additional day off. If the company is open on a holiday and you work,
you will be paid for the hours worked and your holiday pay.
Exempt staff receive the day off if NFM observes the holiday and they otherwise would
have worked. Their normal biweekly salary is paid. If the holiday falls on the salaried
staff member’s regular day off, an additional day off will be allowed as soon as practical.
If NFM is open on a holiday which is your regular day off and you are required to work,
you will be allowed another “holiday” and day off as soon as practical.
While on a leave of absence, staff are eligible for holiday pay only during the waiting
period for disability or workers’ compensation insurance or The Occupational Injury
Benefit Plan, or when they are on an FMLA-approved reduced work schedule.
Otherwise, eligibility for holiday pay resumes upon return to the regular schedule.
PAID TIME OFF (PTO)
NFM believes that periods of rest and relaxation away from work are important for
staff’s health and well-being. Also, NFM understands that staff will have to miss work at
times for personal reasons. As such, NFM has a Paid Time Off (PTO) policy. PTO
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applies to hourly, SPP, and salaried staff. Separate paid holiday, bereavement leave,
and jury duty policies will be maintained. PTO benefits are provided for full-time and
part-time staff as an opportunity to have paid time away from work, whether it is for
leisure, personal business, personal illness, or care of ill family members.
Depending on staffing and business needs, staff members may be required to take at
least one week of their PTO time in a one-week block. Otherwise, PTO for hourly and
SPP staff members will be taken in half-hour increments up to the number of hours
required to complete that day’s schedule. A maximum of 40 hours PTO per week is
allowable.
PTO will be accrued and deposited in a PTO bank on a per pay period basis for full-time
staff and on a per hour worked basis for part-time staff. Staff members will have a
maximum amount that can be accrued in their PTO banks. Once the PTO Bank
Maximum is reached, staff will not accrue any more PTO hours until their PTO bank is
reduced. Please refer to the Termination of Employment section for information
regarding payout, if any, of a PTO bank upon termination. PTO accrues according to the
following schedules:
FULL-TIME STAFF MEMBERS
PTO Grant Per Pay Period
PTO Grant Per Year
PTO Bank Maximum
Length of Continuous Service
6 months
5th anniversary
14th
th
th
up to 5
up to 14
Anniversary
Anniversary
Anniversary
and on
4.93 hours
6.47 hours
8 hours
128.18 hours
168.22 hours
208 hours
192.27 hours
252.33 hours
312 hours
Newly hired full-time staff will be granted 34.51 PTO hours in their PTO banks after
three months of continuous employment (usually the 7th pay period). An additional 4.93
PTO hours will be added each additional pay period.
PART-TIME STAFF MEMBERS
PTO Grant Per Hour
PTO Grant Per Year
PTO Bank Maximum
Length of Continuous Service
6 months
5th anniversary
14th
up to 5th
up to 14th
Anniversary
Anniversary
Anniversary
and on
0.0385 hours
0.0577 hours
0.0770 hours
Varies based on
Varies based on
Varies based
hours worked
hours worked
on hours
worked
104.35 hours
156.40 hours
208.71 hours
Newly hired part-time staff will also be granted a certain number of PTO hours in their
banks after three months of continuous employment (usually the 7th pay period) based
on the number of hours worked.
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Any eligible part-time staff member not paid in any pay period will not receive a PTO
grant for that pay period.
Staff members’ status and length of continuous service on the first day of each pay
period will determine PTO eligibility and grant rates. If a full-time staff member regularly
falls below their scheduled hours, granted PTO may be retroactively reduced to reflect
actual hours worked, at the discretion of NFM management.
Except in cases of unplanned absence, PTO is to be requested and approved by the
supervisor in advance. In cases of unplanned absence, the PTO request is to be
completed upon return to work. Supervisors will attempt to accommodate PTO
requests, but approval is dependent upon departmental needs. Absences that are not
requested and approved ahead of time are subject to NFM’s attendance policy, even if
the staff member is paid for that absence through PTO. Unpaid time off may not be
taken if PTO is available.
PTO does not count as hours worked when determining overtime pay. PTO is paid on
regularly scheduled pay dates. PTO used for hourly staff will be reported to Payroll
through the timekeeping system. PTO for salaried staff is requested, and approved,
through the timekeeping system.
BEREAVEMENT PAY
NFM provides between one and five days of paid bereavement leave for full-time staff
members. The purpose of bereavement pay is to ease the financial burden of attending
the funeral and handling personal affairs. Bereavement pay is based on the staff
member’s scheduled workday and should be requested from and approved by his/her
supervisor.
There is no waiting period for bereavement pay – full-time staff are eligible upon the
date of hire. Bereavement pay is granted as follows.
Number of Days
Up to Five (5) scheduled days
(Maximum of 40 hours)
Up to Three (3) scheduled days
24
Relationship to Staff Member
Spouse
Parent
Child
Spouse’s Parent
Spouse’s Child
Son/Daughter-In-Law
Brother or Sister
Grandparent / Great Grandparent
Grandchild / Great Grandchild
Spouse’s Brother or Sister
Spouse’s Grandparent
Spouse’s Grandchild
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One (1) scheduled day
Brother/Sister-In-Law (Your sibling’s
spouse)
First Aunt/Uncle
First Niece/Nephew
Spouse’s Brother/Sister-in-Law
(Your spouse’s sibling’s spouse)
Spouse’s First Aunt/Uncle
Spouse’s First Niece/Nephew
All of the above-named relationships include step-relations. Bereavement benefits are
only offered relative to a staff member’s current spouse or their relations. If additional
time off is needed, or if time off is needed for a relationship not listed above, PTO
should be requested. If PTO is not available, unpaid time off can be requested. PTO
and unpaid time off are subject to supervisor approval.
EMPLOYEE ASSISTANCE PROGRAM
An Employee Assistance Program, a short-term counseling service, is offered
immediately upon hire to all staff (FT, PT, QT, OC, Temp) as well as their spouse and
children living at home with them. Professionally trained counselors are available to help
work through personal problems, such as stress, marital problems, grief issues, legal
problems, emotional difficulties, substance abuse, or financial troubles.
EAP services are provided at no cost to you. In some cases, the help of a community
resources agency may be needed. If a referral is made, those expenses become your
responsibility. Contact Human Resources or refer to iMart for more information on the
EAP.
ALIGHT
NFM staff who are full-time have access to a service that researches options and gives
staff cost and quality comparisons for medical, prescription drug, dental and vision
services. Contact Human Resources or refer to iMart for more information on Alight.
TUITION REIMBURSEMENT
NFM will reimburse a portion of the cost of tuition to its full-time and part-time staff
members who want to pursue career development opportunities on their own time, in
accordance with the guidelines in the tuition reimbursement policy. Your length of
service with NFM determines your maximum reimbursement. No benefits are payable
for classes that started in your first 90 days of employment (benefit waiting period). The
amount of reimbursement will be applied to the year in which the course began
regardless of the date the reimbursement is processed.
After the benefit waiting period, and up to your first anniversary:
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•
•
•
Staff are eligible for a maximum of $750 for approved courses
In addition to the above amount, an additional $50 for each grade of “A” is
reimbursed up to $250 per year for approved courses
Potential maximum calendar year reimbursement = $1000
1+ years of service:
• Staff are eligible for a maximum of $1500 per calendar year for approved
courses
• In addition to the above amount, an additional $100 for each grade of “A” is
reimbursed up to $500 per year for approved courses
• Potential maximum calendar year reimbursement = $2000
This educational assistance does not replace the training and development
opportunities offered by NFM or our vendors. Continuing your education during nonworking hours can help you perform your current job better, upgrade your professional
or technical capabilities, and prepare for advancement at NFM. Contact Human
Resources or refer to iMart for more information. Applications are due within 60 days of
class completion. Applications are to be completed online on My NFM Services which
can be found on iMart.
NEBRASKA FURNITURE MART PROFIT SHARING PLAN
The type of retirement plan offered by NFM is a defined contribution profit-sharing plan
with 401(k). The Plan allows staff to contribute to the Plan themselves through pre-tax
or Roth after-tax payroll deferrals and also allows NFM to share with its staff a portion of
the profits they have helped earn.
New staff are enrolled into the 401(k) feature of the Plan immediately upon hire, unless
they contact Plan Sponsor to opt out. All contributions to the Plan are participantdirected. Plan participants decide how to invest both their own and NFM’s contributions
to their Plan account.
•
The eligibility requirements for NFM contributions are 1 year of service
NFM contributions are made in two forms - matching and non-matching – both of which
are discretionary. Matching contributions are then made during the plan year, relative to
the 401(k) deferrals of staff. In addition, non-matching contributions may be made
following year-end to eligible Plan participants who were eligible
The vested portion of a retirement plan account is what is payable to the participant
after termination of employment. Participant contributions to the Profit Sharing Plan are
always 100% vested. NFM contributions are partially vested after two years of
employment and fully vested after six years of employment, or upon total state disability
or death. Contact Vanguard or see iMart for more information.
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STAFF PRICING AND SHOPPING
Staff pricing is available on purchases made in the store or through phone sales by all
NFM staff once employment begins. The purchase/payment may be made only by
yourself, your spouse, or minor children under age 18 and must be for your own
personal use or for a bona-fide gift. Under no circumstances will you accept any
reimbursement--this includes buying a gift with others and splitting the cost or having
another person pay for an item that will be solely used by you. Your salesperson or
cashier will obtain the authorized pricing. Staff may generally participate in special
promotions, such as special financing, at a smaller discount than staff pricing which will
be determined by sales or cashiering management. If requested, you or your spouse
must provide identification to obtain staff pricing.
If your relatives or friends request a merchandise discount, they may request “Friends
and Family” pricing, not staff pricing.
In order to prevent a conflict of interest, salespeople are not allowed to sell merchandise
to themselves, their spouse, or minor children under age 18. Sales managers are not
allowed to give merchandise discounts to relatives, without approval of an unrelated
manager. Cashiers are not allowed to process their own purchases or those of any
relatives. Warehouse staff are not allowed to issue product to themselves or their
relatives. Buyers, merchandisers and other staff who have pricing authority or
knowledge of special discounts are not allowed to improperly take advantage of this
information by withholding merchandise from sale to customers and other staff. This
includes but is not limited to repo items, display merchandise, damaged or clearance
merchandise. Staff are forbidden from purchasing merchandise with the intent of resale.
You are requested to shop only during normal business hours. You can shop during
your meal break, but not during rest breaks or any time when you are working. Unpaid
merchandise should not be brought into your work area or kept in any holding area for
later purchase. If you purchase an item on a day you are working, it should be taken
with you when you leave for the day. You are not allowed to remove merchandise from
any facility without proof of purchase or other documentation authorizing the transfer of
merchandise. Failure to comply with the staff pricing and shopping policy is grounds for
discharge.
If you retire from NFM with at least 10 years of service at age 62 or older, you will be
eligible for lifetime staff pricing. Also, those staff who serve NFM for at least 30 years
and retire in good standing before they are 62 will be granted lifetime staff pricing.
RELOCATION BENEFITS
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Relocation benefits (ie- pay to move your household goods) may be available for a
transfer to another store if approved by the Human Resources Director. Decisions will
be based on business need such as a position deemed hard to fill or necessity for the
business to function.
JURY DUTY
A court may require that you serve as a juror and since NFM recognizes the importance
of this civic responsibility, you will be compensated for jury duty. If you are hourly or
SPP, you or your supervisor will enter your hours of jury duty on the timekeeping
system and you will be paid your scheduled hours. Salaried staff will receive their
regular salary.
It is essential that you notify your supervisor as soon as you receive notice of jury duty,
so that scheduling adjustments can be made. A copy of your summons needs to be
provided to your supervisor so that you (or your supervisor) can enter your time in the
timekeeping system. You are expected to report for work if the jury is not in session or
when you are excused in time to work at least half of your regularly scheduled shift.
ELECTION DUTY
NFM recognizes the importance of election duty. If you are a regular staff member,
assigned to work in Nebraska or Iowa only, you will be compensated for election
duty according to state and local laws. If you are hourly or SPP, you (or your supervisor)
will enter your hours of election duty on the timekeeping system and you will be paid
your scheduled hours. Salaried staff will receive their regular salary.
FAMILY AND MEDICAL LEAVE POLICY (INCLUDING MILITARY FAMILY LEAVE
ENTITLEMENTS)
General Provisions
It is the policy of NFM to grant up to 12 weeks of family and medical leave during
any 12-month period to eligible staff, in accordance with the Family and Medical
Leave Act of 1993 (FMLA) and its amendments. For certain eligible Military
circumstances (as described below), the leave may be up to 26 weeks. The
FMLA leave may be paid, unpaid, or a combination, depending on the
circumstances and as specified in this policy. Reference to the term "leave" in
this policy shall mean FMLA leave, unless otherwise specified.
Eligibility
In order to qualify to take leave under this policy, the staff member must meet all
of the following conditions:
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1) The staff member must have been employed by NFM for at least 12 months
or 52 weeks. The 12 months need not have been consecutive. For eligibility
purposes, a staff member will be considered to have been employed for an entire
week even if the staff member was on the payroll for only part of a week or if the
staff member was on leave during the week.
2) The staff member must have worked at least 1250 hours during the 12-month
period (on average approximately 24 hours per week) immediately before the
date when the leave would begin.
Type of Leave Covered
Family Medical Leave
An eligible employee shall be entitled to a total of 12 workweeks of leave during a
rolling 112-month period for one or more of the following:
1) Because of the birth of a son or daughter of the employee and in order to care for
such son or daughter.
2) Because of the placement of a son or daughter with the employee for adoption or
foster care.
3) In order to care for the spouse, or a son, daughter, or parent, of the employee, if such
spouse, son, daughter, or parent has a serious health condition.
4) Because of a serious health condition that makes the employee unable to perform
the functions of the position of such employee.
5) Because of any “qualifying exigency” (as defined below) arising out of the fact that
the spouse, or a son, daughter, or parent of the employee is on active duty (or has been
notified of an impending call or order to active duty) in the National Guard or Reserves
in support of a contingency operation. Exigency leave does not extend to family
members of military members in the Regular Armed Forces. Examples of “qualifying
exigencies” are described below and in detail in the Department of Labor’s Fact Sheet
#28A.
Military Caregiver Leave
An eligible employee who is the spouse, son, daughter, parent, or next of kin of a
covered service member shall be entitled to a total of 26 workweeks of leave during a
The rolling 12 month period begins when an employee first takes FMLA
leave.
1
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12-month period 2 to care for a covered service member on the temporary disability
retired list, who has a serious injury or illness or is in outpatient status. The leave
described in this paragraph shall only be available during a single 12-month period.
Combined Leave Total
During the single 12-month period eligible for Military Caregiver Leave, an eligible
employee shall be entitled to a combined total of 26 workweeks of leave. (Only 12 out of
the 26 weeks total may be for a FMLA-qualifying reason other than to care for a covered
service member).
Because FMLA leave time is limited to a total of twelve (12) weeks per rolling year or up
to twenty-six (26) weeks in a single year for military caregiver leave, an employee should
coordinate his or her medical and family leave time if the employee plans to take both
types of leave in the same 12-month period. Any employee who is eligible for and takes
any period of family and medical leave will have that leave designated as family and
medical leave and counted against his or her total allotment. Any employee who is eligible
for and takes a portion of his or her twenty-six (26) weeks of military caregiver leave, but
not the entire twenty-six (26) weeks forfeits the remaining portion of the leave that was
not used within one (1) year.
Definitions
The following definitions shall be used to determine qualification:
1) “Spouse” means a husband or wife as defined or recognized under State law for
purposes of marriage, including common law marriage in states where it is
recognized.
2) “Parent” means a biological, adoptive, step or foster father or mother, or any
individual who stood in as a parent when the employee was a son or daughter. The
term “parent” does not include parents “in law” (e.g. mother-in-law or father-in-law).
3) “Son” or “daughter” means a biological, adopted, or foster child; a step-child; a legal
ward; or a child of a person standing in loco parentis, who is either under age 18, or
age 18 or older and “incapable of self-care because of a mental or physical
disability” at the time that FMLA leave is to commence.
4) ”Next of kin of a covered service member” means the nearest blood relative of
that individual other than the covered service member’s spouse, parent, son, or
daughter in the following order of priority: blood relatives who have been granted
legal custody of the covered service member, brothers and sisters, grandparents,
aunts and uncles, and first cousins unless the covered service member has
designated in writing a specific blood relative as his next of kin for purposes of
military caregiver leave under the FMLA.
This 12 month period begins on the first date an employee takes FMLA
leave to care for a covered servicemember.
2
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5) “Covered service member” means a member of the Armed Forces including the
National Guard or Reserves, who is undergoing medical treatment, recuperation, or
therapy, is otherwise in outpatient status, or is on the temporary disability retired list,
for a serious injury or illness.
6) A “covered military member” is defined as an employee’s spouse, son, daughter or
parent who is on active federal military duty or has been called to active federal military
duty status for the United States Armed Forces.
7) A “qualifying exigency” includes:
a) short notice deployment: to address issues arising when a covered military
member is called to active duty within seven (7) or less days of such deployment.
Leave for a short notice deployment may be taken for seven (7) calendar days or
less beginning on the date of the covered military member’s notice of such leave;
b) military events and related activities: to attend official ceremonies, programs or
events sponsored by the military that are related to the active duty status of a
covered military member or to attend programs and informational briefings
sponsored or promoted by the military, military service organizations or the
American Red Cross that are related to active duty status of a covered military
member;
c) childcare and school activities: to arrange for or provide urgent childcare when
the call to active duty of a covered military member necessitates a change in an
existing childcare arrangement for a covered military member’s child; to enroll in
or transfer to a new school a covered military member’s child; and to attend
meetings with school or daycare staff of a covered military member’s child;
d) financial and legal arrangements: to make or update financial or legal
arrangements to address the covered military member’s absence while on active
duty or to act as the covered military member’s representative for the purpose of
obtaining benefits;
e) counseling: to attend counseling for the covered military member or a covered
military member’s child;
f) rest and recuperation: to spend time with a covered military member who is on
short-term, temporary, rest and recuperation leave during a period of
deployment. Eligible employees may take up to five (5) days of leave for rest
and recuperation;
g) post-deployment activities: to attend official ceremonies or programs sponsored
by the military in the 90 days following the termination of the covered military
member’s active duty status or to address issues that arise from the death of a
covered military member; and
h) additional activities: to address other events that arise out of the covered military
member’s active duty or call to active duty provided that the employer and
employee agree that the leave shall qualify as an exigency and agree to the
timing and duration of such leave.
8) A “serious health condition” means an illness, injury, impairment, or physical or
mental condition that involves either in-patient care or continuing treatment.
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In-patient care involves an overnight stay in a hospital, hospice, or
residential medical care facility, including any period of incapacity (i.e.
inability to work, attend school, or perform regular daily activities due to a
serious health condition or treatment for or recovery from a serious health
condition) or any subsequent treatment in connection to in-patient care.
Continuing treatment includes:
a) A period of incapacity of more than three consecutive calendar days,
including any subsequent treatment or period of incapacity relating to that
condition, AND
• treatment two or more times by a health care provider; OR
• treatment by a health care provider on at least one occasion which
results in a regimen of continuing treatment under the supervision of the
health care provider (e.g. prescription medication, oxygen therapy).
b) Any period of incapacity due to pregnancy or for prenatal care.
c) Any period of incapacity or treatment due to a chronic serious health condition
which:
• requires periodic visits for treatment by a health care provider;
• continues over an extended period of time (can be recurrence of a single
underlying condition); AND
• may cause episodic rather than continuing periods of incapacity (e.g. asthma,
diabetes, epilepsy).
9) A period of incapacity which is permanent or long-term due to a condition for which
treatment may not be effective (e.g. Alzheimer's, severe stroke, or terminal stages of
a disease). The patient must be under the continuing supervision of, but need not be
receiving active treatment by a health care provider.
10) Any period of absence to receive multiple treatments (including recovery period) by
a health care provider either for restorative surgery after an accident or other injury,
or for a condition which would likely result in a period of incapacity of more than
three consecutive calendar days in the absence of medical treatment or intervention
(e.g. cancer, severe arthritis, kidney disease).
NOTE: The term serious health condition does not include routine
physicals, eye exams, dental exams, etc. Nor does the term usually
include colds, flu, earaches, upset stomachs, minor ulcers, headaches,
periodontal disease, etc.
a) A “serious injury or illness” means an injury or illness incurred by a covered
service member in the line of duty on active duty in the United States Armed
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Forces that may render the individual medically unfit to perform the duties of the
individual’s office, grade, rank or rating.
b) “Outpatient status” means the status of a covered service member assigned to
either a military medical treatment facility as an outpatient or a unit established
for the purpose of providing command and control to members of the United
States Armed Forces receiving care as outpatients.
c) A “contingency operation” means a military operation that is (a) designated by
the Secretary of Defense as an action where the United States Armed Forces are
or may become involved in military actions or (b) results in members of the
United States Armed Forces being called to active military duty, as defined by
law.
Staff with questions about what serious health conditions are covered under this
FMLA Policy should contact Human Resources.
NFM requires a staff member to provide a doctor's certification of the serious
health condition. The certification process is outlined under the “Certification of
Serious Health Condition” section in this policy.
If a staff member takes PTO and seeks an extension of unpaid leave for an
FMLA-qualifying event which occurred during the paid leave, NFM may
designate all or some portion of related leave taken as FMLA leave, provided the
earlier leave meets the necessary qualifications.
An eligible staff member can take up to 12 weeks of FMLA leave under this
policy during any rolling 12-month period, which is measured backward from the
date a staff member uses any leave under this policy. Each time a staff member
takes leave, NFM will compute the amount of leave the staff member has taken
under this policy and subtract it from the 12 weeks of available leave, and the
balance remaining is the amount the staff member is entitled to take at that time.
Staff Member Status & Benefits During Leave
While a staff member is on leave, NFM will continue the covered staff member's
medical, dental, voluntary life, voluntary long term disability, vision and flexible
spending benefits during the leave period at the same level and under the same
conditions as if the staff member had continued to work.
While on leave and when the staff member is receiving a paycheck, NFM will
continue to make payroll deductions to collect the staff member's share of the
premiums. While on leave that is unpaid or paid through disability or worker's
compensation benefits directly from the insurance company, the staff member
must continue to make this payment, either in person or by mail. The bi-weekly
payments must be received in the Human Resources department by every pay
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date. If the payment is more than 30 days late, the staff member's coverage may
be dropped for the duration of the leave.
NFM pays the entire premium for group life and disability benefits for full-time
staff for 90 days. NFM will maintain this coverage for the staff member during the
leave, at no cost to the staff member.
If the staff member chooses not to return to work for reasons other than a
continued serious health condition of the staff member or a family member, or
other circumstances beyond the staff member's control as defined in the FMLA
regulations, NFM will require the staff member to reimburse NFM the amount it
paid for the staff member's premiums during any period of unpaid FMLA leave.
Staff Member Status After Leave
A staff member who takes leave under this policy will be able to return to the
same job or a job with equivalent status, pay, benefits and other employment
terms. The position will be the same or one which entails substantially equivalent
skill, effort, responsibility and authority.
A staff member is not entitled to return to work at the conclusion of the leave if
the staff member's position would normally have been eliminated during the
leave as a result of a reduction in force or reorganization and there is not an
equivalent position available.
NFM may exempt certain highly compensated staff (salaried staff whose
earnings place the staff member in the top 10% of all staff employed within a 75mile area) from this requirement and not return them to the same or similar
position, if restoration would cause substantial and grievous economic injury to
NFM.
It is optional for available PTO to be paid out to staff for hours missed when the
staff member is working a reduced work schedule and is eligible for partial shortterm disability insurance benefits.
If you are physically able but choose not to return to work at the end of FMLA,
you will be considered to have resigned employment effective the last day of your
FMLA leave. If you are unable to return to work due to your own serious health
condition at the end of the 12 weeks, NFM will evaluate our ability to reasonably
accommodate your continued absence in accordance with ADA regulations and
any undue hardship the absence may cause NFM. If a reasonable
accommodation cannot be made, you will be considered to have resigned
employment.
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Your medical, dental, and vision benefits will terminate on the day your FMLA
ends. Your unreimbursed medical - flexible spending benefits will terminate on
the day your FMLA ends. You may be eligible for continuation of your medical,
dental, vision and unreimbursed medical - flexible spending benefits insurance
under COBRA.
Use of Paid and Unpaid Leave
A staff member who is taking leave because of their own serious health condition
will be required to use available PTO before taking any unpaid leave during the
waiting period for disability or workers’ compensation benefits, or when these
benefits are not payable. The staff member may at their option supplement
disability or workers’ compensation benefits with PTO. Eligible full-time salaried
staff members will receive salary continuation by NFM during the 12-week leave
due to their own serious health condition after first meeting the elimination period.
PTO must be exhausted during the elimination period. Please see Salary
Continuation Policy on iMart for more information.
A staff member who is taking leave for reasons other than their own serious
health condition must first take all available PTO, including PTO which becomes
available while the staff member is on leave, before taking unpaid leave for the
remainder of the 12 weeks.
If any type of paid leave is used, it will be included in calculating the total 12week leave, not in addition to 12 weeks of unpaid leave. In no event is the staff
member entitled to more than 12 weeks of FMLA leave in any rolling 12-month
period.
Intermittent Leave or a Reduced Work Schedule
The staff member may take FMLA leave in 12 consecutive weeks, may use the
leave intermittently (take time off periodically when needed over the year for such
situations as medical treatment of a serious health condition), or under certain
circumstance may use the leave to reduce the work week or work day, resulting
in a reduced hour schedule (for situations such as recuperating from a serious
illness and being unable to work the regular schedule). In all cases, the leave
may not exceed a total of 12 weeks over a 12-month period. NFM may
temporarily transfer a staff member to an available alternative position with
equivalent pay and benefits if the alternative position would better accommodate
the intermittent or reduced schedule.
For the birth, adoption or foster care of a child, NFM and the staff member must
mutually agree to the schedule before the staff member may take the leave
intermittently or work a reduced hour schedule. Leave for birth, adoption, or
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foster care of a child must be taken within one year of the birth or placement of
the child.
If the staff member is taking leave for a serious health condition or because of
the serious health condition of a family member, the staff member should try to
reach agreement with NFM before taking intermittent leave or working a reduced
work schedule. If this is not possible, then the staff member must prove that the
use of the leave is medically necessary. NFM may require certification of the
medical necessity, discussed in the next section.
Certification of the Serious Health Condition
NFM may ask for certification of the serious health condition, in addition to any
form required to receive disability or workers’ compensation benefits. The staff
member should respond to such a request within 15 days of the request, or
provide a reasonable explanation of the delay. Failure to provide certification may
result in denial of the leave. Medical certification may be provided by using the
Certification of Health Care Provider form.
Certification of the serious health condition shall include the date when the
condition began, its expected duration, diagnosis, and a brief statement of
treatment. For medical leave for the staff member's own medical condition, the
certification must also include a statement that the staff member is unable to
perform work of any kind or a statement that the staff member is unable to
perform the essential functions of the staff member's position. For a seriously ill
family member, the certification must include a statement that the patient
requires assistance and that the staff member's presence would be beneficial or
desirable.
If the staff member plans to take intermittent leave or work a reduced schedule,
the certification must also include the dates and duration of treatment and a
statement of medical necessity for taking intermittent leave or working a reduced
schedule.
NFM has the right to ask for a second opinion to verify the certification. NFM will
pay for the staff member to get a certification from a second doctor, which the
company will select.
If necessary to resolve a conflict between the original certification and the second
opinion, NFM will require the opinion of a third doctor. NFM and the staff member
will jointly select the third doctor, and NFM will pay for the opinion. This third
opinion will be considered final.
Procedure for Requesting Leave
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All staff requesting leave under this policy must complete a Leave of Absence
Request with FMLA Source as well as notify their manager. Staff are required to
advise NFM if any request for paid benefits or unpaid time off is for an FMLAqualifying event.
When a staff member plans to take leave under this policy, the staff member
must give their manager a 30-day notice to give the supervisor an opportunity to
plan for handling the work during the staff member's absence. If it is not possible
to give a 30-day notice, the staff member must give as much notice as is
practical, ordinarily within 1-2 working days of the unforeseen event. A staff
member undergoing planned medical treatment is required to make a reasonable
effort to schedule the treatment to minimize disruptions to NFM's operations.
If a staff member fails to provide a 30-day notice for foreseeable leave with no
reasonable cause for the delay, the leave request may be denied until at least 30
days from the date NFM receives notice.
While on leave, staff are required to report periodically to their supervisor and/or
Human Resources regarding the status of the leave, and their intent to return to
work.
Staff returning from medical leave are required to present a fitness-for-duty
certificate from their doctor, stating the staff member is able to perform all the
essential duties of his/her job.
Nebraska Furniture Mart will comply with the Family Medical Leave Act and
applicable state laws pertaining to family leave. As the laws change, or as
interpretations of the laws change, leave benefits offered to eligible NFM staff
members may change accordingly. No attempt is made in this policy to cover all
possible situations and circumstances that may arise when a staff member uses
family leave.
Performance Appraisals and SPE’s While on Leave
No performance appraisals, including Sales Performance Evaluations (SPE) for SPP
staff will be conducted or delivered while any staff member is on FMLA. Accordingly, no
pay adjustments related to performance will be administered while any staff member is
on FMLA.
Management will administer the performance appraisal of all staff as soon as practical
upon return. Any resulting pay adjustments and retro pay will be processed upon the
date of return but the next review date will not be affected by the approved FMLA
Leave. If a job grade is reevaluated or pay ranges are adjusted, resulting changes will
become effective while a staff member is on FMLA.
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MILITARY LEAVE
Military leaves of absence will be granted without pay for the period required to perform
active or inactive duty or training, in accordance with Federal and State statutes. In
order to be eligible for military leave, a staff member must be employed and be a
current active or inactive member of the uniformed services of the United States -- this
includes but is not limited to service in the Armed Forces, the Army National Guard, the
Air National Guard and reserve components of the military. If you desire reinstatement
rights, you are asked to notify the Human Resources Department in advance, in writing
or verbally, when possible.
If you choose not to return to work at the end of the leave, you will be considered to
have resigned employment. If you obtain a leave under false pretense, you will be
discharged from employment. For further information, please contact Human Resources
or refer to iMart for more information or for a copy of the comprehensive Military Leave
policy.
WORKERS’ COMPENSATION
(Does not apply to staff permanently assigned to the Texas location)
NFM insures all staff against injuries/illnesses that occur as a result of their work, as
required by law. ALL work-related injuries/illnesses must be reported to your supervisor
by the end of the work shift in which the injury or accident occurs, regardless of the
nature or severity. You will be asked to write a detailed statement and your supervisor is
required to report the injury to Human Resources.
If you receive medical treatment, you must inform your supervisor of your status
immediately after an appointment. You must have a doctor’s authorization to return to
work, which should be given to your supervisor before you clock in. A case manager will
review all workers’ compensation claims and may work with you directly to assist with
your case and your return to work. If you have a serious health condition as a result of
an on-the-job injury/illness and you meet the eligibility requirements under the Family
and Medical Leave policy, Human Resources will contact you regarding your rights and
obligations.
FLEXIBLE SPENDING ACCOUNTS
All full-time staff with 90 days of service are eligible to participate in the Flexible
Spending Account plan. Flexible Spending Accounts are a tax advantaged way to pay
for out-of-pocket health care expenses and work-related dependent care expenses.
Authorized by the IRS, this benefit allows you to pay for these expenses with “pre-tax”
dollars. By paying your out-of-pocket health care and dependent day care expenses
through Flexible Spending Accounts, you can lower your taxable income, which lowers
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your income taxes. More information on this benefit will be provided when you become
eligible.
INSURANCE
Insurance coverage, except for company paid Short-Term Disability (STD), starts on
your 90th day of continuous full-time employment. Company paid STD begins on the
day you have completed 365 days of full-time employment. Details are provided at the
time you become full time and at Benefits Orientation.
Medical: NFM’s medical plan provides comprehensive medical coverage including
benefits for hospitalizations, office visits, outpatient procedures and prescription drugs,
as well as other services. NFM pays the majority of the premium for this optional
coverage and the staff member pays the remainder through payroll deductions.
Continuation of coverage after a classification change or termination may be possible
for a specified period, although you pay the full cost.
Dental: NFM’s dental plan provides dental insurance for preventive, maintenance and
restorative dental care. Orthodontia care for children up to age 19 is also included.
NFM pays the majority of the premium for this optional coverage and the staff member
pays the remainder through payroll deductions. Continuation of coverage after a
classification change or termination may be possible for a specified period, although you
pay the full cost.
Life: NFM’s life insurance plan provides coverage based on your earnings. NFM pays
the entire premium for your life insurance. If you or your dependents would like
additional life insurance protection, you may purchase voluntary life insurance coverage
and pay premiums through payroll deductions.
Disability: NFM’s plans provide you with partial wage replacement based on your
earnings, if you are off work due to a non-job-related illness or injury. For eligible staff,
NFM pays the entire premium for Short-Term Disability (STD) and Long-Term Disability
(LTD); staff members pay for Voluntary Long-Term Disability (LTD).
Vision: All full-time staff with 90 days of service are eligible to participate in the vision
plan. It is a full-service plan that includes a vision exam and eyewear at affordable
prices. Continuation of coverage after a classification change or termination may be
possible for a specified period under COBRA.
STAFF REFERRAL BONUS
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NFM has a referral bonus program to encourage staff members to share open positions on
www.nfm.com/careers with friends and family members who they think would be a great
addition to the NFM team.
Referral bonuses are scheduled to be paid the second pay date the following month of the new
hire starting.
General Referral Bonus Policies:
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•
•
•
•
•
•
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The new hire must list the NFM staff member making the referral on the application.
A new hire can only be referred by one staff member.
The referrer and the new hire must still be employed at the time bonuses are distributed
to be eligible.
No referral bonus will be paid out on rehires.
Referral bonus will be paid out for temporary hires.
Staff members who refer applicants to locations other than where they are currently
working will also be given a referral bonus if the referred applicant is hired (i.e. Kansas
City staff member refers applicant to Omaha location).
Awards are subject to all applicable federal, state taxes and 401(k) deferrals.
The Talent Acquisition Manager will make any decisions on referrals if questioned.
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GENERAL COMPANY POLICIES
ATTENDANCE AND PUNCTUALITY
Regular and punctual attendance is an essential job function and is critical for efficient
operations at NFM. We must be able to depend on you to be at work when scheduled.
Attendance and punctuality are considered when opportunities for transfer and
promotion arise, and when being considered for a pay increase. Your absence and
tardiness record is a reflection of your attitude towards your job.
You are required to personally notify your supervisor of absences as far in advance as
possible, but in any event no later than 30 minutes before your scheduled starting time.
If your supervisor is not available, contact your supervisor’s manager. If you are absent,
you must advise your supervisor of the reason for the absence and your expected
return date. Human Resources may request additional information from you to
determine if you qualify for various benefits.
If you are ill or you have an injury that requires medical treatment or causes you to miss
work, you may be required to bring written authorization from your doctor to return to
work. If you fail to show for work and do not call in for two consecutive workdays, it is
considered job abandonment and you will have resigned your employment without
notice.
Most people can be counted on to attend work regularly as scheduled and to have any
absences or changes to their schedule approved in advance. If unacceptable tardiness
or absenteeism occurs, it will be unexcused and disciplinary action will result.
Unexcused will be determined by the manager. They may take into consideration:
availability of paid time off benefits, excessiveness, timeliness of notification, patterns in
attendance, the reason given, etc. In some situations, an absence may still be deemed
as unexcused even if a doctor’s note is provided and/or there is PTO available.
Tardiness is reporting to work past the scheduled starting time (including returning late
after meals or breaks). Reporting to work more than 2 hours past the start of the
schedule may be considered an absence. Any unexcused tardy will result in a written
performance agreement.
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Absenteeism is failure to report for work OR to remain at work as scheduled. Any
unexcused absence will result in a written performance agreement. Exceptions will be
made for staff approved for a leave of absence (including FMLA) or granted an
accommodation under the Americans with Disability Act.
Discipline If a staff member receives 4 performance agreement statements for
unexcused absences in a 12-month period, they will be discharged. If a staff member
receives 8 written performance agreements for any combination of unexcused tardies
and unexcused absences in a 12-month period, it will result in discharge. Three
occurrences of not calling in to report an absence during a 12-month period will also be
cause for discharge.
Example:
5/1/2018 Unexcused tardy
6/5/2018 Unexcused tardy
6/20/2018 Unexcused
absence
7/8/2018 Unexcused absence
9/6/2018 Unexcused tardy
10/2/2018 Unexcused
absence
11/15/2018 Unexcused
absence
1st Written performance
agreement
nd
2 Written performance
agreement
rd
3 Written performance
agreement
th
4 Written performance
agreement
th
5 Written performance
agreement
th
6 Written performance
agreement
Discharge
(because 4th unexcused absence)
This policy establishes guidelines for disciplinary action. Based upon the facts of a
particular case, disciplinary action may be more lenient or severe (including termination
of employment) than what is outlined above. Supervisors may also recommend referral
to the Employee Assistance Program. Decisions regarding whether or not an absence
or tardy is unexcused (even if a similar previous occurrence was excused) and which
steps of discipline to impose are at the discretion of management.
Disputes regarding the classification of tardiness or absenteeism as unexcused and
subsequent discipline can be presented in writing to the next level manager for review,
within five days of the performance agreement. The next level manager can consult
Human Resources.
BULLETIN BOARDS
Bulletin boards by time clocks and in the break rooms are for NFM business only.
Human Resources or management must approve all notices.
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COMMUNICATIONS SYSTEMS
The communications equipment (telephones, cellular phones, voice mail, computers,
Internet, faxes, copy machines, modems, etc.) in our company is intended for business
usage only. They are designed to improve the efficiency of our business and strengthen
communications with our customers and suppliers.
Communications may be monitored and/or recorded periodically without notice for
business purposes such as coaching, ensuring the quality of service to our customers,
monitoring workflow, or productivity, or investigating theft or violations of company
policies. As a result, you should have no expectation of privacy regarding your
communications.
Personal phone calls should be made infrequently, whether using company equipment
or a personal cell phone. When possible, staff are encouraged to use NFM issued
portable phones or desk phones to complete their jobs. As safety is of the highest
priority, staff should never use a cell phone in an area deemed unsafe or while
operating machinery.
Any use of our communications systems resulting in fees or toll charges (such as long
distance, including NFM’s 1-800 numbers) must be for business purposes only.
Communication costs on these systems are audited.
The access or use of outside computer networks or services, such as the Internet, is
intended for NFM business. Any personal use of the Internet must be on your own time,
infrequent, and not interfere with business operations. In addition, you are strictly
prohibited from accessing inappropriate websites that contain illegal software, obscene,
harassing, defamatory, and/or threatening material (refer to Harassment-Free
Environment Policy). This includes but is not limited to pornography or offensive
communication related to race, religion, age, sex, disability, sexual orientation, gender
identity, national origin, marital status, military status, color, creed, or any other class
protected by law. Prohibited use of NFM’s communication system may result in
disciplinary action, up to and including discharge.
COMPANY PROPERTY
NFM provides a variety of equipment, including but not limited to tablets, cell phones,
PCs, scanners, tools, supplies, vehicles, and other property to our staff that are
necessary to operate our business. Personal use of NFM property disrupts the flow of
business, slows staff productivity, may subject NFM to liability, and can increase
expenses unnecessarily. Any personal use of company property must be on your own
time, infrequent, and not interfere with business operations. Improper use of company
property will result in disciplinary action, up to and including discharge. Upon
termination from NFM, all equipment must be returned to NFM. The cost of company
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property not returned upon termination will be deducted from the staff member’s pay
check(s) where allowed by applicable law.
CONFIDENTIALITY AND NON-DISCLOSURE
Staff are not authorized to communicate verbally or in writing on behalf of NFM.
Frequently a statement made without full knowledge of the situation can be misleading
and false. Such statements can result in legal liability to NFM.
NFM Staff Members are prohibited from providing any product or service endorsement
unless approved in advance. All requests for NFM endorsement must be submitted to the
NFM General Counsel for approval.
Misuse and/or unauthorized disclosure of confidential information not otherwise
available to people or organizations outside NFM is cause for discipline up to and
including termination. This includes information such as customer or prospect lists,
customer transactions, customer and/or vendor incentive programs, business
strategies, pricing strategies as well as individual unit cost/prices, proprietary
technology, financial records, marketing plans, developmental plans, computer
programs or files, inventions, developments, and trade secrets of any kind. This
information may not be disclosed unless an Executive Officer or Director of NFM has
given you written consent to such disclosure.
You also must not copy by any means or remove from the premises of NFM any
documents relating to such information or material without prior consent of an Executive
Officer or his/her designee. Failure to comply with this policy could result in immediate
discharge and/or legal action.
Staff members who use their own electronic device to access or store NFM’s
confidential information, whether in the form of data, text, images or audio, agree to
provide NFM with immediate access to that device, including passwords and access
codes, as part of an investigation, or to implement a litigation hold, or for any other
legitimate business purpose. Staff members consent to NFM’s incident access to nonNFM information during any such inspection.
CONFLICTS OF INTEREST
NFM prohibits staff from engaging in any activity or conduct that conflicts with the best
interest of the company, our customers or our suppliers. Some examples of conflicts of
interest include, but are not limited, to:
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•
•
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employment with a competitor, supplier, or contractor to NFM
competing against NFM such as, but not limited to, purchasing merchandise for resale
accepting gifts of any kind from suppliers or their agents
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giving merchandise discounts to relatives, without approval of an unrelated manager
managing your own NFM account, such as writing or making changes to your own
order, crediting payments to your account, or making any changes to your NFM
account
a supervisor dating a subordinate
a supervisor hiring their own relative (parent, spouse, child, or sibling)
interfering with decisions regarding the employment status of any relative
loitering in work areas during non-scheduled hours
If a situation or action might be a conflict of interest, you should discuss it with your
supervisor or Human Resources.
Nothing in this policy is meant to abridge staffs’ legal rights in any way.
DISCIPLINARY ACTION
As a staff member, you are expected to comply with all company policies, procedures
and job requirements. In the event your work performance, attitude or behavior is not
acceptable, the following disciplinary steps will ordinarily be utilized:
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Your supervisor will verbally discuss the problem with you if the situation is not so
serious as to require a written performance agreement or discharge.
A formal written performance agreement may be made and discussed with you if the
problem reoccurs or a more serious situation develops. This report will be reviewed
with you and will become part of your personnel file.
A formal written performance agreement and/or suspension or discharge from work
may result from repeated problems, depending upon the frequency or seriousness of
each particular problem.
Notwithstanding the above, the discipline will depend upon the nature and seriousness
of the situation in the judgment of the company.
Job-related actions subject to immediate discharge include, but are not limited to, the
following:
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Theft or other criminal behaviors, including such behavior outside of work.
Making statements that you know to be false, misleading or dishonest.
Falsification of any company document, record or report or misrepresentation of any
company product or service.
Unauthorized disclosure, use or copying of confidential company information.
Misuse of company time while on the clock, including (but not limited to) excessive
unapproved absences from your work area, excessive phone calls or texts for nonwork matters, or sleeping on the job.
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Refusal to sign an acknowledgement of receipt of any Company form, document, or
corrective action that requires such an acknowledgement.
Failure to handle company funds in accordance with established procedures.
Accepting or requesting kickbacks, bribes or payoffs from customers or suppliers.
Willful abuse or unauthorized use of NFM property, equipment or materials.
Intentionally clocking another staff member’s time or allowing another staff member
to intentionally clock your time.
Misuse of staff pricing benefit.
Endangering another person’s life.
Being insubordinate, threatening, intimidating, disrespectful, or assaulting a fellow
staff member, manager, supervisor, customer, and/or vendor.
Harassment or discrimination (please refer to Harassment-Free Environment policy).
Immoral or indecent conduct; horseplay; fighting; use of profane, threatening or
abusive language; acting in a disorderly manner or gross discourtesy to customers,
vendors or staff.
Intoxication, use, or possession of alcoholic beverages or drugs on company
property or during work hours.
Failure to report an accident as outlined in the safety policy.
Leaving company property while on the time clock without authorization.
Giving unauthorized discounts.
Positive drug screen result.
It should be noted that in addition to discharge, NFM will prosecute any staff member
who engages in criminal behavior at NFM.
HIPAA
HIPAA (Health Insurance Portability and Accountability Act) protects and maintains the
confidentiality of your health records received by NFM in the course of business. The
healthcare information contained in your health record is your property and you have
the protected right to keep it confidential. Only limited and authorized personnel
designated by NFM have access to your healthcare information and have received
training on how to handle your information securely. NFM complies with all HIPAA
regulations and conducts annual training for those with access to PHI (Personal Health
Information).
INCLEMENT WEATHER OR EMERGENCY STORE INFORMATION
In the event of inclement weather or other store emergencies, staff should call the store
hotline at 855-929-8825 (toll free, outside of store) or x28825 from any store phone. It is
very important for staff to listen to the entire message to ensure they have correct
information that relates to each store.
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Staff should not report to work if their NFM location is closed, unless your supervisor
has previously advised that your department is essential to the ongoing operations of
NFM. You will not be paid for scheduled hours not worked if the store is closed due to
inclement weather or other emergencies. PTO may be requested from your supervisor
to accommodate.
FOOD AND BEVERAGES
Food, beverages, and gum are not allowed on the sales floor or in work areas where
staff members deal directly with the external customer. Food, beverages, and gum are
permitted in work areas where the supervisor approves and in designated break rooms.
HARASSMENT-FREE ENVIRONMENT
NFM expects all staff to accomplish their work in a professional manner treating all
persons with courtesy and respect. Discrimination and harassment in the workplace are
unacceptable. Derogatory, abusive or inflammatory remarks or behavior, including, but
not limited to, a person’s race, color, religion, sex, age, disability, national origin or any
other prohibited factor, constitutes harassment when they unreasonably interfere with a
person’s work performance or create an intimidating, hostile or offensive work
environment.
Sexual harassment refers to unwelcome or unwanted conduct of a sexual nature. This
includes sexually-oriented conversations, suggestions, requests, demands, pictures,
physical contacts or attentions, whether communicated in person, by phone, by
computer or any other means. Implicit or explicit coercive sexual behavior used to
control, influence, or affect the career, pay or job of another staff member will not be
tolerated.
If harassment does occur, contact your supervisor or Human Resources immediately, in
person or at hr-management@nfm.com. All complaints of harassment and
discrimination will be promptly and thoroughly investigated. Violations of the policy will
be treated as serious disciplinary infractions and prompt disciplinary action will be taken,
up to and including discharge.
Similarly, if a vendor, contractor or customer engages in inappropriate behavior that
makes you feel uncomfortable, harassed, threatened, or intimidated, please notify your
supervisor or Human Resources in person or at hr-management@nfm.com immediately
so the situation can be promptly investigated and remedied. The local Security Team
may also be contacted by any staff member needing immediate support. No one will be
subject to, and NFM prohibits, any form of discipline, reprisal, intimidation, or retaliation
for good faith reporting of customer related incidents of harassment of any kind,
pursuing any harassment claim or cooperating in related investigations.
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In every investigation, NFM has an obligation to protect witnesses from harassment,
intimidation and retaliation, to keep evidence from being destroyed, to ensure that
testimony is not fabricated, and to prevent a cover-up. NFM may decide that in order to
achieve these objectives, the investigation and all parties involved be required to
maintain strict confidence. If NFM reasonably imposes such a requirement and staff
members do not maintain such confidentiality, they may be subject to disciplinary action
up to and including immediate termination.
It is our policy to encourage discussion of the matter and to help protect others from
being subjected to similar inappropriate behavior.
HAZARDOUS COMMUNICATIONS STANDARD
NFM complies with all Hazardous Communications Standards, also known as the
“Employee Right to Know Law.” Appropriate staff members who work with hazardous
materials or in hazardous conditions will receive training on the contents of the Hazard
Communications Standard and use of the Safety Data Sheets (SDS). Information such
as hazardous properties of the chemicals, safe handling procedures, and protection
from over-exposure are addressed in training. Your supervisor will provide additional
information if applicable.
LACTATION
Breastfeeding employees are allowed to breastfeed or express milk during work hours
using their normal breaks and meal times. For time that may be needed beyond the
usual break times, employees may use personal leave or may make up the time as
negotiated with their supervisors.
PARKING
In order to provide our customers with the necessary parking for their shopping
convenience, NFM has designated parking for staff members. Parking in these areas is
mandatory. Staff will be subject to discipline including discharge for repeated parking
violations. Contact Security or refer to iMart for maps of Staff Parking.
PERSONAL COMPUTER SOFTWARE
Computer software used at NFM may not be copied or otherwise transferred to a
system for which it was not intended, unless such copying and use is authorized by the
license agreement or supplier of that software.
PERSONAL GIFTS
No staff member, or member of their immediate family, shall accept money,
merchandise, gifts, meals, drinks, entertainment, or any other item of value from any
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customer, supplier or agent of a supplier doing business with NFM. Express your
sincere appreciation to such offers but politely decline. Any exceptions to this must be
approved by an Executive Officer, who may accept a gift on behalf of NFM. If it is
necessary that you lunch or dine with a supplier or agent of a supplier for business
purposes, you must pay your own expenses for which you may be reimbursed.
PERSONAL PROPERTY
NFM cannot be responsible for your personal property, whether on or off duty, or for
damage to or theft from cars. Please take proper precautions to protect your personal
property. Store personal belongings such as purses and wallets out of public view.
Lock your car. Walk in pairs to your car if you leave after dark or ask security to escort
you.
PERSONAL VIDEO, RECORDING DEVICES OR CAMERAS
Personal recording devices such as cameras (including camera phones), audio tape,
and video recorders have the potential to create privacy violations. For that reason,
during work time, NFM staff are not permitted to use any personal recording device on
company property or while performing work without prior authorization from the staff
member’s manager or NFM Director. As safety is of the highest priority, staff should
never use a personal recording device in an area deemed unsafe or while operating
machinery.
PRIVACY
Personal items, messages, or information you consider private should not be placed or
kept in communication systems, offices, storage areas, desks or file cabinets. It may be
necessary for others to look through your work area for business-related materials, in
connection with an investigation or for other business reasons. The surest way to keep
your belongings private is to leave them at home. The management of NFM reserves
the right to access any and all company property, work areas and systems at any time
and for any legitimate security, legal or business reason.
PROFESSIONAL APPEARANCE
Our goal is to create a work environment that is comfortable, while at the same time
neat, clean and professional. We want to ensure that our customers view us with
confidence, and we project ourselves in a professional manner.
You are expected to become familiar with and follow the grooming and dress code
standards specific to your area, which are based upon the nature of your work,
customer contact, and safety considerations. The following guidelines should be helpful,
in addition to your departmental dress code policy. Any concerns regarding the policy
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should be addressed with your manager. Modifications to this policy will be considered
for religious, cultural, or ADA accommodations.
NFM recognizes that dress and personal appearance is an important element of selfexpression. At the same time, NFM is in a customer-driven business and must be
mindful of not alienating our customers or co-workers. In keeping with this approach,
NFM allows reasonable self-expression through dress and personal appearance unless:
•
It conflicts with an employee's ability to perform his or her position effectively or
adversely affects his or her work environment; or
•
It is regarded as offensive, intimidating or harassing towards co-workers and/or
customers; or
•
It contains negative stereotypes of race, gender, religion or other protected
characteristics.
General Policies
•
All clothing and shoes must be clean, pressed, properly fitted and in good
condition.
•
Clothing, jewelry, accessories, and/or tattoos may not reflect any form of violent,
discriminatory, abusive, offensive, demeaning, or otherwise unprofessional
message.
•
Make-up, nail polish, jewelry and accessories must project a professional image.
•
Body piercings are acceptable if they are not distracting and/or if they do not
impact your ability to communicate with customers
•
No hats except in areas with approval from management (i.e. uniformed or
material handling staff).
•
This policy applies to all staff working for NFM, including those who may work
offsite or from home.
Professional Dress Attire
NFM’s objective in establishing a professional dress code is to project a professional
image that is aligned with the needs of our clients and customers. Because our industry
requires the appearance of trusted business professionals and we serve customers on
a daily basis, a professional dress code is necessary. You must project the image of a
trustworthy, knowledgeable business professional.
•
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All staff are expected to have well-kept hair, including facial hair, that projects a
professional appearance.
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•
No casual clothing, such as t-shirts, tank tops, denim of any kind, casual pants or
shorts.
•
No casual shoes, such as tennis shoes, flip flops or casual sandals. Dress shoes
are required.
•
Slacks, dress shirts, sweaters, skirts, jackets and suits are professional dress
attire.
Business Casual Attire
In establishing a business casual dress code, staff are allowed to work comfortably;
however, a professional image should not be sacrificed for comfort. It is necessary that
business casual clothing still upholds professionalism. Your attire should be suitable for
the workplace.
Acceptable attire:
• Polo shirts, collared shirts, button down shirts, casual shirts, and sweaters.
•
Khaki-style pants (of any color), corduroys, skirts and dresses.
•
Loafers, slip-on shoes.
Casual Attire
A casual dress code means that staff are permitted to dress in comfortable, informal
clothing. Although the employees’ comfort is a priority, clothing must be appropriate and
still professional. While keeping these standards in mind, staff can still look wellgroomed and feel comfortable when following a casual dress code.
Acceptable attire:
• Denim in good condition, not frayed or faded.
•
Polo shirts, button down shirts, t-shirts with a finished look and NFM wearables.
•
Loafers, slip-on shoes. Tennis shoes in good condition.
Material Handlers
•
OSHA-approved impact resistant footwear must be worn at all times. This policy
applies to all NFM staff members who work in areas where physical foot hazards
exist as a significant part of the job.
Uniformed Staff
•
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Uniformed staff must be in full uniform before clocking in for work. Only NFMsupplied uniforms and caps may be worn.
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•
Staff who are issued uniforms displaying the NFM logo are not allowed to use the
uniforms in non-work-related activities.
• It is the staff member’s responsibility to launder their uniform and keep them in
good condition. It is also the staff member’s responsibility to replace damaged or
lost uniforms.
If you are unable to determine if certain clothing, jewelry or accessories are
appropriate, speak with your manager.
Nametags
Personalized nametags should always be visible and worn on the right shoulder area.
Nothing should be added to the nametag for any reason without prior approval from
Human Resources. Nametags must be worn at all times while you are on duty.
If your nametag is looking worn, a new nametag will be issued to you at no cost, by
taking the old nametag to Human Resources for replacement. If your nametag is lost or
damaged you will need to reimburse NFM for a new nametag, through payroll
deduction. Additional nametags may also be purchased, through payroll deduction, from
Human Resources. Upon termination of employment, you will be required to return the
nametag or you will be required to pay for it. Staff who do not comply with the nametag
policy will be subject to the NFM disciplinary process.
SAFETY
The purpose of the Safety Policy is to prevent loss of life, bodily injury, and damage to
property. Our policy is to provide a safe place to shop for our customers and a safe
place to work for our staff. All staff members are responsible for maintaining a safe
environment. Help ensure everyone’s safety by doing the following:
• Report injuries and/or accidents to your supervisor immediately, no matter how
minor.
• Report any unsafe or potentially hazardous conditions to your supervisor.
• Operate equipment and handle chemicals correctly.
• Use all protective gear, such as personal protective equipment.
• Refrain from pranks or horseplay.
• Return all tools, equipment, and materials to their proper place.
• Learn emergency escape routes and severe weather shelter locations.
Only staff with a current, valid driver’s license may be authorized by management to
drive on company business. Staff members are required to use safety belts at all times
while operating or riding in any motor vehicle. You must report any changes in your
license and any traffic or moving violations to your supervisor immediately if you drive
for company business. The use of cell phones (including talking, texting and email) is
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strictly prohibited while operating a company vehicle or driving while on company
business. This includes the use of headsets and hands-free devices. Staff who have
company issued cell phones or company reimbursed cell phones cannot use the phone
while operating any vehicle. The use of headsets or hands-free devices while driving is
not permissible. See the Cell Phone/Electronic Device and Vehicle Use Policy for
further details.
You must report any and all injuries and accidents to your supervisor by the end of the
shift in which they occur. Failure to report an injury or accident will result in disciplinary
action, which may include discharge. Supervisors will complete an accident
investigation to determine the cause of the accident and identify what can be done to
prevent the accident from occurring again.
Generally, the normal Disciplinary Action policy is followed on all negligent accidents
that occur within a 365-day period. However, any disciplinary step, including termination
of employment, may be utilized at any time and will be dependent on the nature and
seriousness of the situation. In addition, when there is a reasonable possibility that drug
use could have contributed to the reported incident, drug testing will be required per the
Nebraska Furniture Mart Post-Incident Drug Testing Policy. (Iowa as allowed by state
law).
Staff are expected to follow safety rules and procedures at all times.
SOCIAL NETWORKING
NFM recognizes that many staff members use social media as a way of sharing their
lives, opinion, and experiences family, friends and colleagues. While NFM understands
that social media can refer to many different things, this Social Networking Policy
applies to all means of communicating or posting information or content of any sort on
the Internet, including to your own or someone else’s web log or blog, journal or diary,
personal web site, social networking or affinity web site, web bulletin board or a chat
room, whether or not associated or affiliated with NFM, as well as any other form of
electronic communication.
NFM is committed to balancing the rights of its staff members to use social media with
the needs of its business, including the need to maintain NFM’s identity, integrity, and
reputation. Further, NFM has a business interest in protecting its logo, company name,
and other intellectual property and in ensuring that its staff complies with applicable
law. Please be aware of your obligations in this regard as well as your duty of loyalty to
NFM.
•
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All rules, laws, regulations, and NFM policies apply in full to staff members’
conduct on blogs and social networking sites, including but not limited to:
confidentiality, harassment, discrimination, violence, ethics, etc.
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•
•
•
•
•
•
•
•
Do not use social media while on work time or on equipment provided by NFM
unless the use is work-related as authorized by your supervisor and consistent
with the NFM’s Communication Systems Policy.
Do not use NFM email addresses to register on social networks, blogs, or other
online tools utilized for personal use.
All media inquiries should be directed to mediarelations@nfm.com. Staff
members may not speak to the media on behalf of NFM without first contacting
and receiving authorization from mediarelations@nfm.com.
If a staff member identifies himself or herself as a staff member of NFM on any
social networking site, the communication must include a disclaimer that the
views expressed are those of the author and do not necessarily reflect the views
of NFM.
Only authorized staff are permitted to respond to customer complaints on social
networking sites.
Respect all copyright and other intellectual property laws.
Staff should not post pictures of customers on any social media without their
express written consent.
If incorrect information or inappropriate mentions of NFM on the web are found,
staff must report it to their manager or email connect@nfm.com.
Any staff member who violates this policy or is aware of a violation and does not report
it may be subject to disciplinary action up to and including discharge. NFM prohibits
taking negative action against any staff member for reporting a possible deviation from
this policy or for cooperating in an investigation. Any staff member who retaliates
against another staff member for reporting a possible violation from this policy or for
cooperating in an investigation will be subject to disciplinary action, up to and including
termination.
NFM reserves the right to monitor all public blogs and social networking forums for the
purpose of protecting its interests and maintaining compliance with this policy. Please
keep in mind that even if privacy settings are used, anything posted on the Internet may
be easily forwarded, copied, or otherwise shared beyond the original intended
recipients. As such, staff members should have no expectation of privacy for any
material posted online.
Nothing in this policy is meant to abridge staffs’ legal rights in any way.
Refer to NFM’s Communication Systems Policy for additional information, and please
contact official HR email hr-management@nfm.com if you have questions or need
further guidance.
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SOLICITATIONS
In order to protect our staff, customers and vendors from interference in their work and
business with NFM, the following guidelines for solicitation and distribution have been
established:
•
Staff shall not engage in solicitations of money or memberships during working time
or distribute literature in work areas at any time.
Prohibited solicitation includes, but is not necessarily limited to, the following:
•
•
•
•
•
Sale of products (cosmetics, clothing, household goods, housewares, candy,
cookies, etc.).
Tickets to entertainment and sporting events, benefits, raffles, lotteries, etc.
Gambling of any kind.
Sporting pools on football, baseball or other athletic events
Monetary contributions for donations, parties or personal items (flowers, gifts, etc.).
The only exceptions are solicitations that are specifically approved by NFM, such as the
annual community support of United Way and the Berkshire Hathaway March Madness
Bracket Contest. The President of NFM or Human Resources always announces
approved solicitations well in advance.
SUBSTANCE ABUSE (PERTAINS TO STAFF PERMANENTLY ASSIGNED TO
NEBRASKA, KANSAS AND TEXAS LOCATIONS)
NFM is committed to protecting the health and safety of our staff and all people who
come in contact with our workplace and use our products and services. Recognizing
that substance abuse creates significant health, safety, and theft risks and has other
detrimental effects on staff and customers, NFM has a policy relating to substance
abuse prevention, detection, treatment, and discipline. This policy applies to all staff
while on the job, as well as off-the-job conduct which could impact work performance or
harm the reputation of NFM.
Prohibited Actions
1.
Engaging in the sale, use, possession, or transfer of illegal drugs.
2.
Consuming alcohol during work hours (including meals and breaks, whether on or
off company property), unless approved by an Executive Officer for legitimate
business functions.
3.
Abusing controlled substances (prescription drugs).
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4.
Acting impaired in any way while working or smelling of alcohol or illegal drugs.
5.
Refusing to submit to appropriate testing when required by an NFM representative.
Switching or altering any sample submitted for testing or submitting a false sample
for testing.
6.
Failing to attend and follow recommendations of the Employee Assistance
Program, when required by NFM.
7.
Being convicted under any criminal drug or alcohol statute for a violation occurring
in or outside the workplace.
Testing
NFM has established a testing program for illegal drugs and controlled substances. It is
required that every newly hired and rehired staff member be free of illegal drug use and
controlled substance abuse. Each offer of employment shall be conditional upon the
successful completion of a test for certain illegal drugs and controlled substances. All
testing will be conducted in accordance with state and federal laws.
A current staff member may be requested to submit to appropriate testing as
determined by NFM’s medical provider and management when there is reason to
believe there is intoxication or impairment while on duty due to alcohol or drug use, or in
conjunction with investigation of an accident. If the staff member refuses to submit to
testing when requested, it may be assumed that company policy has been violated and
appropriate disciplinary action will be imposed, up to and including discharge. A test for
alcohol will be considered positive if the staff member or applicant has a blood-alcohol
concentration of greater than .00 at the time of testing.
Discipline
All NFM staff must report to work free of alcohol or other drugs. If you are taking
medication, which may impair your ability to work or make you appear to be intoxicated,
you must notify your supervisor in advance. Any staff member who violates the NFM
substance abuse policy will be subject to disciplinary action, including discharge.
If you think you may have a drug or alcohol problem, we strongly recommend using the
services of our Employee Assistance Program, before putting your job in jeopardy and
the safety of yourself and others at risk. If you think a co-worker, contractor, or supplier
may have a drug or alcohol problem, please call your manager or Human Resources—
you might just help save a life. We appreciate all staff’s efforts in making NFM a healthy
and safe workplace.
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SUBSTANCE ABUSE (PERTAINS TO STAFF PERMANENTLY ASSIGNED TO IOWA
LOCATION)
NFM is committed to protecting the health and safety of our staff and all people who
come in contact with our workplace and use our products and services. Recognizing
that substance abuse creates significant health, safety, and theft risks and has other
detrimental effects on staff and customers, NFM has established this Drug and Alcohol
Policy relating to substance abuse prevention, detection, treatment, and discipline. This
policy applies to all staff while on-the-job, as well as off-the-job conduct that could
impact work performance or harm the reputation of NFM. Illegal drugs, as referred to in
this policy, include drugs that are not legally obtainable, as well as drugs that are legally
obtainable but used for illegal or unauthorized purposes.
Prohibited Actions
1. Engaging in the sale, use, possession, manufacture, or transfer of illegal drugs at
any time.
2. Reporting to work under the influence of alcohol or consuming alcohol during work
hours (including meals and breaks, whether on or off company property), unless
approved by an Executive Officer for legitimate business functions.
3. Using prescription or over-the-counter drugs other than as directed.
4. Refusing to submit to appropriate testing when required by an NFM representative,
switching or altering any sample submitted for testing, or submitting a false sample
for testing.
5. Failing to attend and follow recommendations of the Employee Assistance Program
or other rehabilitative program, when required by NFM.
6. Being convicted under any criminal drug or alcohol statute for a violation occurring in
or outside the workplace.
Testing
NFM has established a testing program for illegal drugs and alcohol. It is required that
every newly hired and rehired staff member be free of illegal drug use and alcohol
abuse. Each offer of employment shall be conditional upon the successful completion of
a test for certain illegal drugs.
A current staff member may be requested to submit to appropriate drug and/or alcohol
testing as determined by NFM when there is reason to believe there is intoxication or
impairment while on duty due to alcohol or illegal drug use or in conjunction with
investigation of an accident causing a reportable bodily injury or damage to property
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estimated in excess of $1,000.00. If NFM has a reasonable suspicion that a staff
member has violated this policy, it may also conduct an unannounced search of
Company premises or property and/or the staff member’s personal property.
All testing pursuant to this policy will be conducted by an independent laboratory at the
Company’s expense. Testing will be conducted in accordance with state and federal
laws, and all samples taken will be split, to enable additional testing. If the staff member
refuses to submit to testing when requested, it may be assumed that company policy
has been violated and appropriate disciplinary action will be imposed, up to and
including discharge. All initial positive tests for drugs or alcohol will be subject to
confirmatory testing. A test for alcohol will be considered positive if the staff member or
applicant has a blood-alcohol concentration of greater than .02, expressed in terms of
grams of alcohol per 210 liters of breath, or its equivalent, at the time of testing.
Notices
Staff members and applicants will be informed by certified mail of a confirmed positive
test result. If a positive test result is received for a current staff member, the staff
member will be notified of the right to request a confirmatory test of the second half of
the original sample, within seven days, at an approved laboratory of the staff member's
choice and at the staff member's expense. If any staff member or applicant who is
tested pursuant to this policy is under the age of 18, the policy and any notices required
by law to be provided to the staff member or applicant, such as notices of a confirmed
positive test result, will be provided to the parent or legal guardian of the staff member
or applicant.
Discipline
If you are taking medication that may impair your ability to work or make you appear to
be intoxicated, you must notify your supervisor in advance. Any staff member who
violates the NFM drug and alcohol policy by engaging in the prohibited acts above or
testing positive with a confirmed test for drugs or alcohol will be subject to disciplinary
action, up to and including discharge. If testing is conducted due to reasonable
suspicion, any action taken against the staff member shall be based only on the results
of the drug or alcohol test.
However, if a confirmed positive test for alcohol is received for a staff member who has
been employed by NFM for at least 12 of the preceding 18 months and if the staff
member has not previously violated NFM’s drug and alcohol policy, the staff member
may avoid discharge by choosing to enroll in and pay for an approved rehabilitation,
treatment, or counseling program, which may include additional drug or alcohol testing.
In such a situation, participation in and successful completion of the program will be a
condition of continued employment.
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If you think you may have a drug or alcohol problem, NFM strongly recommends using
the services of our Employee Assistance Program before putting your job in jeopardy
and the safety of yourself and others at risk. If you think a co-worker, contractor, or
supplier may have a drug or alcohol problem, please call your manager or Human
Resources—you might help save a life. We appreciate all staff’s efforts in making NFM
a healthy and safe workplace.
THEFT PREVENTION
A key to our company’s success is preventing unauthorized loss of our inventory, cash,
and other property. Over the years, our staff have helped us do this by being actively
involved in controlling thefts and other forms of loss. NFM discourages staff from
bringing personal valuables to work. The company cannot accept responsibility or
liability for any lost, stolen, or damaged property of our staff.
We are committed to maintaining a work environment free of theft. In order to do this,
your job responsibilities include preventing and reporting any loss due to theft or other
causes. Your full cooperation is required in any theft investigations.
Honesty and integrity are NFM’s highest values. If any staff member steals or assists
others to steal, they will be discharged and prosecuted. Staff are expected to report any
knowledge of theft activity. Failure to report such knowledge or cooperate in an
investigation is grounds for discharge.
THREATS OF VIOLENCE
NFM does not tolerate threatening, intimidating, aggressive, or assaulting behavior on
our premises at any time or while on company business off the premises. Nor does
NFM tolerate any implied threat of violence or joking about such actions, such as
harming another person or damaging property. In the interest of everyone’s safety, all
staff should report any acts or threats of violence to their supervisor or Human
Resources immediately so appropriate action can be taken. A person making threats
may be in need of professional help and a person being threatened needs to be alerted,
if the threats are made indirectly.
A staff member engaged in threats of violence will be subject to disciplinary action, up to
and including discharge. The police may also be notified.
TOBACCO-FREE ENVIRONMENT
Nebraska Furniture Mart’s goal is to provide its staff, vendors and customers with a
tobacco-free environment. NFM recognizes that smoking is a health and fire hazard.
Inhalation of second-hand smoke, as well, can pose a significant health risk to our staff.
Staff members are prohibited from using all tobacco products including cigarettes, vapor
type or electronic cigarettes, pipes, cigars and/or smokeless forms (chew, snuff, etc.)
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anytime while on official NFM-related business anywhere on the NFM campus,
including parking lots and the entire Grandscape development. Staff members cannot
leave the campus or grounds on their paid breaks or use any tobacco products in their
own vehicles on NFM property or those vehicles owned or leased by NFM. Upon
receiving complaints regarding littering or loitering from neighboring businesses, NFM
may choose to take disciplinary action. NFM’s tobacco-free policy applies to all staff as
well as contractors, consultants, vendors and their respective staff. Violation of this
policy may result in disciplinary action up to and including termination.
TRAINING
We strive to improve the lifestyles of our Nebraska Furniture Mart family so they can get
more of what they want from their work and life. We do this in part through encouraging
our staff members to develop their skills by taking advantage of a wide variety of
Training and Development opportunities. Several training courses at NFM are
mandatory (i.e. Service Plus, Safety training, etc.). Disciplinary action may follow for
staff members who do not attend training classes or complete training classes via eLearning that are identified as mandatory.
TRAVEL
NFM will reimburse reasonable and customary travel and entertainment expenses
incurred by staff members for NFM business purposes only. Time spent traveling or
entertaining during normal work hours is considered hours worked. Staff members are
to use the most cost effective and economical means for expenses that are in the best
interests of NFM. Please see full travel policy on iMart for details.
WEAPONS POLICY
NFM staff members may not, at any time, while on any property owned, leased or
controlled by NFM, including anywhere that NFM business is conducted, such as
customer locations, client locations, trade shows, restaurants, company event venues,
and in NFM owned vehicles, etc., possess or use any weapon, except as specifically
allowed by this policy. "Weapons" include, but are not limited to: firearms, swords, or
knives with blades that exceed the legal limit, "stun guns," explosives, ammunition, or
any chemical whose purpose is to cause harm to another person.
NFM does business in a variety of states, and there are a number of different laws
relating to the possession of firearms. In order to balance the rights of staff members
under those state laws with the needs of NFM and the safety and security of its staff
members, vendors and customers, the following rules apply to possession of weapons,
including firearms:
1. NFM staff may not, while on duty, arriving for work, or leaving from work,
possess on their person any weapon or ammunition, including a properly
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licensed or permitted concealed carry weapon anywhere that NFM business is
conducted, including anywhere on NFM premises.
2. NFM staff, when on duty, arriving for work, or leaving from work may, if they are
licensed or legally authorized to do so, have a firearm and/or ammunition in their
privately owned vehicle, but only if such vehicle is locked and parked in a
designated NFM parking area. Such handguns must be locked inside a glove
box, trunk, or other compartment of the vehicle. NFM staff are prohibited from
carrying handguns in vehicles owned by NFM.
3. Off-duty NFM staff, if they are coming to an NFM facility in the capacity as a
customer of NFM on a day on which they are not scheduled for work and are not
performing any NFM-related work, may carry a properly licensed or permitted
concealed handgun, but shall only do so in public retail areas of NFM and not in
any private office, office work space, warehouse or other areas not generally
accessible to the public. No other weapons may be brought into any facility
where NFM business is conducted.
4. Off-duty NFM staff, if they are coming to an NFM facility in the capacity of a
customer on a day on which they are not scheduled for work and are not
performing any NFM-related work may have a properly licensed or permitted
weapon within a locked private vehicle in a designated NFM parking area.
Notwithstanding the foregoing, NFM staff who have prior written approval by the
President of NFM or the Home Office Loss Prevention General Manager may carry
properly licensed or permitted weapons as limited by the scope of such permission.
Staff are reminded that, notwithstanding their ability to possess certain weapons as
limited by this Policy, all staff are bound by all other NFM policies, including those
relating to Workplace Violence.
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BERKSHIRE HATHAWAY
BERKSHIRE HATHAWAY INC. CODE OF BUSINESS CONDUCT AND ETHICS
A. Scope.
This Code of Business Conduct and Ethics applies to all Berkshire Hathaway
directors, officers and employees, as well as to directors, officers and employees
of each subsidiary of Berkshire Hathaway. Such directors, officers and
employees are referred to herein collectively as the “Covered Parties.” Berkshire
Hathaway and its subsidiaries are referred to herein collectively as the
“Company.”
B. Purpose.
The Company is proud of the values with which it conducts business. It has and
will continue to uphold the highest levels of business ethics and personal integrity
in all types of transactions and interactions. To this end, this Code of Business
Conduct and Ethics serves to (1) emphasize the Company’s commitment to
ethics and compliance with the law; (2) set forth basic standards of ethical and
legal behavior; (3) provide reporting mechanisms for known or suspected ethical
or legal violations; and (4) help prevent and detect wrongdoing.
Given the variety and complexity of ethical questions that may arise in the
Company’s course of business, this Code of Business Conduct and Ethics
serves only as a rough guide. Confronted with ethically ambiguous situations, the
Covered Parties should remember the Company’s commitment to the highest
ethical standards and seek advice from supervisors, managers or other
appropriate personnel to ensure that all actions they take on behalf of the
Company honor this commitment. When in doubt, remember Warren Buffett’s
rule of thumb:
“…I want employees to ask themselves whether they are willing to
have any contemplated act appear the next day on the front page of
their local paper – to be read by their spouses, children and friends
– with the reporting done by an informed and critical reporter.”
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C. Ethical Standards.
1. Conflicts of Interest.
A conflict of interest exists when a person’s private interest interferes in any way
with the interests of the Company. A conflict can arise when a Covered Party
takes actions or has interests that may make it difficult to perform his or her work
for the Company objectively and effectively. Conflicts of interest may also arise
when a Covered Party, or members of his or her family, receive improper
personal benefits as a result of his or her position at the Company. Loans to, or
guarantees of obligations of, Covered Parties and their family members may
create conflicts of interest. It is almost always a conflict of interest for a Covered
Party to work simultaneously for a competitor, customer or supplier.
Conflicts of interest may not always be clear-cut, so if you have a question, you
should consult with your supervisor or manager or, if circumstances warrant, the
chief financial officer or chief legal officer of the Company. Any Covered Party
who becomes aware of a conflict or potential conflict should bring it to the
attention of a supervisor, manager or other appropriate personnel or consult the
procedures described in Section E of this Code.
All directors and executive officers of the Company [, and the chief executive
officers and chief financial officers of Berkshire Hathaway’s subsidiaries,] shall
disclose any material transaction or relationship that reasonably could be
expected to give rise to such a conflict to the Chairman of the Company’s Audit
Committee. No action may be taken with respect to such transaction or party
unless and until such action has been approved by the Audit Committee.
2. Corporate Opportunities.
Covered Parties are prohibited from taking for themselves opportunities that are
discovered through the use of corporate property, information or position without
the consent of the Board of Directors of the Company. No Covered Party may
use corporate property, information or position for improper personal gain, and
no employee may compete with the Company directly or indirectly. Covered
Parties owe a duty to the Company to advance its legitimate interests whenever
possible.
3. Fair Dealing.
Covered Parties shall behave honestly and ethically at all times and with all
people. They shall act in good faith, with due care, and shall engage only in fair
and open competition, by treating ethically competitors, suppliers, customers,
and colleagues. Stealing proprietary information, possessing trade secret
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information that was obtained without the owner’s consent, or inducing such
disclosures by past or present employees of other companies is prohibited. No
Covered Party should take unfair advantage of anyone through manipulation,
concealment, abuse of privileged information, misrepresentation of material facts,
or any other unfair practice.
The purpose of business entertainment and gifts in a commercial setting is to
create good will and sound working relationships, not to gain unfair advantage
with customers. No gift or entertainment should ever be offered or accepted by a
Covered Party or any family member of a Covered Party unless it (1) is
consistent with customary business practices, (2) is not excessive in value, (3)
cannot be construed as a bribe or payoff and (4) does not violate any laws or
regulations. The offer or acceptance of cash gifts by any Covered Party is
prohibited. Covered Parties should discuss with their supervisors, managers or
other appropriate personnel any gifts or proposed gifts which they think may be
inappropriate.
4. Insider Trading.
Covered Parties who have access to confidential information are not permitted to
use or share that information for securities trading purposes (“insider trading”) or
for any other purpose except the conduct of the Company’s business. All nonpublic information about the Company should be considered confidential
information. It is always illegal to trade in Berkshire Hathaway securities while in
possession of material, non-public information, and it is also illegal to
communicate or “tip” such information to others. While all Covered Parties are
prohibited from insider trading, Berkshire has adopted specific “Insider Trading
Policies and Procedures” applicable to the Company’s directors, executive
officers and key employees (“Directors and Covered Employees”). This
document is posted on Berkshire’s website and is sent periodically to Directors
and Covered Employees in connection with certification of compliance.
5. Confidentiality.
Covered Parties must maintain the confidentiality of confidential information
entrusted to them, except when disclosure is authorized by an appropriate legal
officer of the Company or required by laws or regulations. Confidential
information includes all non-public information that might be of use to competitors
or harmful to the Company or its customers if disclosed. It also includes
information that suppliers and customers have entrusted to the Company. The
obligation to preserve confidential information continues even after employment
ends.
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6. Protection and Proper Use of Company Assets.
All Covered Parties should endeavor to protect the Company’s assets and
ensure their efficient use. Theft, carelessness, and waste have a direct impact on
the Company’s profitability. Any suspected incident of fraud or theft should be
immediately reported for investigation. The Company’s equipment should not be
used for non-Company business, though incidental personal use is permitted.
The obligation of Covered Parties to protect the Company’s assets includes its
proprietary information. Proprietary information includes intellectual property such
as trade secrets, patents, trademarks, and copyrights, as well as business,
marketing and service plans, engineering and manufacturing ideas, designs,
databases, records, salary information and any unpublished financial data and
reports. Unauthorized use or distribution of this information would violate
Company policy. It could also be illegal and result in civil or criminal penalties.
7. Compliance with Laws, Rules and Regulations.
Obeying the law, both in letter and in spirit, is the foundation on which the
Company’s ethical standards are built. In conducting the business of the
Company, the Covered Parties shall comply with applicable governmental laws,
rules and regulations at all levels of government in the United States and in any
non-U.S. jurisdiction in which the Company does business. Although not all
Covered Parties are expected to know the details of these laws, it is important to
know enough about the applicable local, state and national laws to determine
when to seek advice from supervisors, managers or other appropriate personnel.
The document “Prohibited Business Practices Policy” sets forth the Company’s
policy on compliance with laws, specifically addressing such topics as prohibited
offers or payments, gifts and entertainment, transactions with certain countries
and persons, accounting controls, and accurate record-keeping. This Policy is
furnished to senior managers and available to all employees.
8. Timely and Truthful Public Disclosure.
In reports and documents filed with or submitted to the Securities and Exchange
Commission and other regulators by the Company, and in other public
communications made by the Company, the Covered Parties involved in the
preparation of such reports and documents (including those who are involved in
the preparation of financial or other reports and the information included in such
reports and documents) shall make disclosures that are full, fair, accurate, timely
and understandable. Where applicable, these Covered Parties shall provide
thorough and accurate financial and accounting data for inclusion in such
disclosures. They shall not knowingly conceal or falsify information, misrepresent
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material facts or omit material facts necessary to avoid misleading the
Company’s independent public auditors or investors.
9. Significant Accounting Deficiencies.
The CEO and each senior financial officer shall promptly bring to the attention of
the Audit Committee any information he or she may have concerning (a)
significant deficiencies in the design or operation of internal control over financial
reporting which could adversely affect the Company’s ability to record, process,
summarize and report financial data or (b) any fraud, whether or not material,
that involves management or other employees who have a significant role in the
Company’s financial reporting, disclosures or internal control over financial
reporting.
D. Waivers.
Any waiver of this Code for executive officers or directors may be made only by
the Company’s Board of Directors or its Audit Committee and will be promptly
disclosed as required by law or stock exchange regulation.
E. Violations of Ethical Standards.
1. Reporting Known or Suspected Violations.
The Company’s directors, CEO, senior financial officers and chief legal officer
shall promptly report any known or suspected violations of this Code to the
Chairman of the Company’s Audit Committee. All other Covered Parties should
talk to supervisors, managers or other appropriate personnel about known or
suspected illegal or unethical behavior. These Covered Parties may also report
questionable behavior in the same manner as they may report complaints
regarding accounting, internal accounting controls or auditing matters by
contacting (anonymously, if desired) a third party organization called NAVEX
Global (toll-free number 800-261-8651 or web site at http://brk-hotline.com).
Separate anonymous reporting procedures are available for Company
employees working outside the United States. No retaliatory action of any kind
will be permitted against anyone making such a report in good faith, and the
Company’s Audit Committee will strictly enforce this prohibition.
2. Accountability for Violations.
If the Company’s Audit Committee or its designee determines that this Code has
been violated, either directly, by failure to report a violation, or by withholding
information related to a violation, the offending Covered Party may be disciplined
for non-compliance with penalties up to and including removal from office or
dismissal. Such penalties may include written notices to the individual involved
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that a violation has been determined, censure by the Audit Committee, demotion
or re-assignment of the individual involved and suspension with or without pay or
benefits. Violations of this Code may also constitute violations of law and may
result in criminal penalties and civil liabilities for the offending Covered Party and
the Company. All Covered Parties are expected to cooperate in internal
investigations of misconduct.
F. Compliance Procedures.
We must all work together to ensure prompt and consistent action against
violations of this Code. In some situations, however, it is difficult to know if a
violation has occurred. Because we cannot anticipate every situation that will
arise, it is important that we have a way to approach a new question or problem.
These are the steps to keep in mind:
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•
Make sure you have all the facts. In order to reach the right solutions, we
must be as informed as possible.
•
Ask yourself: What specifically am I being asked to do? Does it seem
unethical or improper? Use your judgment and common sense. If something
seems unethical or improper, it probably is.
•
Clarify your responsibility and role. In most situations, there is shared
responsibility. Are your colleagues informed? It may help to get others
involved and discuss the problem.
•
Discuss the problem with your supervisor. This is the basic guidance for all
situations. In many cases, your supervisor will be more knowledgeable about
the questions, and he or she will appreciate being consulted as part of the
decision-making process.
•
Seek help from Company resources. In rare cases where it would be
inappropriate or uncomfortable to discuss an issue with your supervisor, or
where you believe your supervisor has given you an inappropriate answer,
discuss it locally with your office manager or your human resources manager.
•
You may report ethical violations in confidence without fear of retaliation. If
your situation requires that your identity be kept secret, your anonymity will be
protected to the maximum extent consistent with the Company’s legal
obligations. The Company in all circumstances prohibits retaliation of any kind
against those who report ethical violations in good faith.
•
Ask first, act later. If you are unsure of what to do in any situation, seek
guidance before you act.
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BERKSHIRE HATHAWAY INC. PROHIBITED BUSINESS PRACTICES POLICY
============================================================
It is the policy of Berkshire Hathaway Inc. and its subsidiaries to strictly comply
with all laws and regulations that apply to any of their activities and operations, or that may give
rise to the risk of liability for Berkshire, its subsidiaries or persons employed by any of them.
This Prohibited Business Practices Policy (“Policy”) applies to all officers, directors
and employees of Berkshire and each of its subsidiaries. The requirements set forth in
this Policy also apply to any agent, consultant, representative, sales agent, reseller,
distributor, joint venture partner, customs/import broker, freight forwarder, contractor, or
other third party as they conduct business on behalf of or for the benefit of Berkshire or
any of its subsidiaries (“Intermediary”). Using a risk-based approach, each subsidiary
shall develop a procedure to communicate the requirements of this Policy to its
Intermediaries. Each person shall comply with this Policy, strictly abide by all applicable
laws and regulations, and exercise great care not to take or authorize any actions that
may create even the appearance of illegal conduct or other impropriety. Persons who
violate this Policy shall be subject to appropriate disciplinary action up to, and including,
termination. Berkshire and its subsidiaries will not undertake, authorize or tolerate
any business practice that does not comply with this Policy.
I.
COMPLIANCE WITH BOTH U.S. AND
FOREIGN ANTI-CORRUPTION LAW IS
REQUIRED
The purpose of this Policy is to set forth Berkshire’s position against bribery and corruption
and to describe the minimum procedures that must be followed to ensure compliance with this
Policy and anti-bribery and anti-corruption laws. This Policy (1) identifies certain specific laws and
regulations that may apply to a Berkshire subsidiary’s operations, and (2) sets forth the minimum
standards that must be followed to ensure compliance with those laws and regulations. The
applicable laws and regulations include not only federal, state and local laws and regulations of
the U.S., but also laws and regulations of any foreign countries in which a Berkshire subsidiary
does business, such as the United Kingdom’s Bribery Act of 2010 and the Brazil Clean Company
Act of 2014. Because the FCPA, as amended, is the anti-corruption law which most broadly
affects international business, this Policy uses that statute as a framework for setting forth
Berkshire’s Policy. However, the Policy uses the term “government official” in most places where
the FCPA uses the term “foreign official” to make it clear that Berkshire’s Policy applies to
interactions with all government officials worldwide, and that adherence to the principles and
procedures set forth within this Policy will ensure compliance with all nations’ anti-bribery and
anti-corruption laws.
This Policy is not exhaustive, and there may be additional laws and regulations that apply
to a Berkshire subsidiary’s operations that are not discussed here. Even if a particular law or
regulation is not discussed here, it is the policy of Berkshire that each of its subsidiaries ensure
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compliance with that law or regulation as applicable and adopt additional policies as necessary
to address compliance with that law or regulation.
Any Berkshire subsidiary employee who has a question about whether particular conduct
might be illegal or involve any unethical or improper act or violate this Policy must promptly report
those concerns. Each Berkshire subsidiary, or in the case of a group of Berkshire companies, the
Berkshire subsidiary that is the “parent” of such group, shall designate a Compliance Officer to
receive and investigate such reports and to implement this Policy. Employees may also report
their concerns to their supervisors or managers. If permitted by local law, anonymous reports can
be made via the Berkshire Ethics and Compliance Hotline (800-261-8651) or Berkshire’s web
reporting site, which is located at www.brk-hotline.com.
If in doubt as to the lawfulness or propriety of particular conduct by a Berkshire subsidiary
or Berkshire subsidiary employee, a report of the matter should be made so that the issue can be
investigated. Berkshire prohibits retaliation of any kind for making such a report in good faith,
even if it turns out that the conduct being reported is not illegal or improper.
If requested, every employee of Berkshire or a Berkshire subsidiary is required to
cooperate with any effort by Berkshire, outside legal counsel or forensic accountants hired by
Berkshire to investigate whether a violation of any compliance policy of Berkshire or any Berkshire
subsidiary has occurred or whether the compliance program is operating effectively. Such
cooperation includes providing information that is requested and participating in interviews,
investigations and audits.
II.
•
PROHIBITED OFFERS OR PAYMENTS
Each Berkshire subsidiary must strictly comply with the U.S. law known as the FCPA and
all other applicable anti-bribery and anti-corruption laws. The FCPA prohibits bribes, kickbacks
and favors to government officials to obtain an improper advantage or benefit, such as, among
other examples, the awarding of business or a government contract, obtaining a tax benefit or
reduction of value-added tax or corporate income taxes, or obtaining a permit or license.
Prohibited Purposes. To ensure compliance with the FCPA, no Berkshire subsidiary or
its Intermediaries acting on behalf of or for the benefit of such Berkshire subsidiary may corruptly
provide, authorize, promise or offer to provide anything of value to a government official for any
of the following purposes:
•
•
•
•
•
Influencing the official;
Securing any improper advantage;
Affecting any official decision; or
Helping the Berkshire subsidiary obtain or retain business or direct business
to any other person or company.
Similarly, no Berkshire subsidiary, its employees or Intermediaries may authorize a third-party to
corruptly offer or promise to provide something of value to a government official for any of the
purposes listed above.
“Corrupt” Payments. The FCPA prohibits promising, providing, offering to provide, or
authorizing the provision of things of value to a government official if done “corruptly.” This means
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that the giver has an intent or desire to improperly influence the recipient and to get something in
return, i.e., a quid pro quo. The word “corruptly” is used in the FCPA to clarify that the offer,
payment, promise or gift must be intended to induce the official to misuse an official position to
assist the giver in obtaining a business advantage.
Government Officials. The prohibition of improper payments found in the FCPA applies
to more than just individuals actively serving in governments. Under the FCPA, a government
official is:
•
•
•
•
•
•
•
•
Any officer or employee of a government or any department, agency, or
instrumentality of a government;
Elected officials;
Any officer or employees of a public international organization such as the
United Nations or World Bank;
Any individual acting in an official capacity for or on behalf of a government
agency, department, instrumentality or of a public international
organization;
Any officer or employee of a company owned or controlled by a government,
including, for example, a state-owned oil company or state-owned hospital;
Political parties outside of the U.S. and their employees;
Candidates for political office outside of the U.S.; and
Any member of a royal family who may lack formal authority but who may
otherwise be influential, including by owning or managing state-owned or
controlled companies.
It is important to note that employees of state-owned or controlled entities (whether
partially or completely state-owned or controlled) are considered government officials under the
FCPA regardless of their rank, nationality or classification under local law. Some individuals, who
may not be considered government officials in their own country, are considered government
officials under the FCPA. In addition, a company may be under government control even if it is
publicly traded, and even if some of its stock is not owned by the government. In some countries,
government control of publicly traded companies is common. Similarly, in some countries, entities
like oil companies and hospitals are state-owned, which makes all of their employees, regardless
of their rank, nationality or classification under local law, government officials under the FCPA.
This Policy prohibits promising, authorizing, providing or offering to provide anything of value to
employees or agents of state-owned or controlled companies for any of the prohibited purposes
described above, even if those companies are engaged in purely commercial businesses.
For purposes of this Policy, close family members of government officials (i.e., brother,
sister, mother, father, husband, wife or child) are treated as government officials to whom a
Berkshire subsidiary, its officers, employees or Intermediaries acting on behalf of or for the benefit
of such Berkshire subsidiary shall not corruptly promise, offer, authorize or provide anything of
value. Similarly, for purposes of this Policy, the Policy’s prohibitions also apply with regard to
former government officials in cases where the former government official retains some sort of
quasi-official status.
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Indirect and Direct Payments. The prohibition against improper payments or gifts under
the FCPA applies not only to direct payments or offers of payment, but also to indirect offers or
payments made through any Intermediaries or agents. Care must be taken to ensure that
Intermediaries of a Berkshire subsidiary, such as sales representatives, consultants, advisors,
lobbyists, resellers, distributors, joint venture partners, customs/import brokers, freight forwarders
or other contractors do not authorize, promise, offer or provide anything of value to a government
official for any of the prohibited purposes described above.
Anything of Value. The term “anything of value” is construed very broadly under the
FCPA and includes far more than just monetary gifts. Each of the following, among other things,
could constitute a thing of value:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Monetary gifts in any form (whether cash, check, wire, etc.);
Other types of gifts;
Meals (including drinks);
Entertainment, such as golf outings or sporting events;
Travel, whether domestic or foreign;
Flights on private or Berkshire subsidiary provided aircraft;
Excessive discounts on products or services;
Excessive commissions;
Sales at less than market value;
Purchases at above market rates;
Art;
Vehicles;
Personal gifts
Contractual rights;
Donations to charity; and
Scholarships for family members
The term also applies to intangible benefits such as contributions to an official’s favorite
charity, offers of employment or internships for an official’s friends or family, assisting an official’s
family member or friend in gaining admittance to a school, or other kinds of help or assistance to
officials or their friends and family. This Policy applies equally to offers of payment and things of
value to relatives and family members of government officials, as to the government officials
themselves.
Nominal Gifts and Entertainment. There are circumstances under which providing
inexpensive items to a government official may be permissible under the FCPA. For instance,
providing gifts of nominal value such as pens or mugs with the Berkshire subsidiary logo, without
any intent to influence the official, is not unlawful. Before providing even nominal gifts or
entertainment to a government official, Berkshire subsidiary employees or the subsidiary must
confirm that doing so is permitted by local law by consulting with a local lawyer. Some countries
prohibit providing anything of value to government officials, even gifts or entertainment of nominal
value; in those countries, this Policy prohibits providing gifts or entertainment of any kind to
government officials. Where permitted by local law, gifts or entertainment to government officials
may be made under this Policy only when they are (1) made to promote general goodwill and not
as a quid pro quo for any official action, (2) of very modest value (in determining whether the value
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is modest, the value of all previous gifts or entertainment for the same official in the same year
should be added together), (3) not in the form of cash, (4) customary in type and value in the
country where made, (5) given openly and not secretly, (6) not intended to improperly influence
the government official, and (7) accurately reflected in the applicable Berkshire subsidiary’s books
and records.
Willful Blindness Is Not a Defense. The FCPA imposes liability on companies
and individuals, even if they have no actual knowledge of an improper payment to a
government official, in circumstances where they should have known there was a high
probability that an intermediary intended to make or was likely to make an improper
payment. Accordingly, subsidiaries and subsidiary employees must not be willfully blind to facts which suggest
improper payments, gifts, promises or offers of payments, gifts or something of value to a government official.
Liability for an FCPA violation cannot be avoided by attempting to ignore or “not see” the
warning signs or indications of improper conduct. Employees who suspect or see
indications that corrupt payments or offers of payment might be under consideration or
might have been made on a Berkshire subsidiary’s behalf must not “look the other way”
or ignore the indications or “red flags.” For instance, if employees become aware that a
sales agent may intend to or may have improperly provided money to a government
official, they must immediately report that concern. Similarly, each employee should be
alert to, and promptly report, concerns that other employees may be involved in or intend
to be involved in such payments.
Bona Fide and Reasonable Business Expenses. The FCPA permits paying bona fide
and reasonable travel and lodging expenses for government officials if the expenses relate
directly to (1) the promotion, demonstration or explanation of products or services, (2) the
execution or performance of a contract, or (3) other legitimate charitable or educational programs.
To ensure compliance with the FCPA, this Policy permits paying such expenses only upon the
advance written approval of the applicable Berkshire subsidiary’s Compliance Officer and only
where to do so would be legal under local law and where the official’s government or government
entity is aware of, and approves of in writing, the expenditures contemplated. Such expenses
must only be approved by the Compliance Officer where they are (1) directly related to the
promotion, demonstration or explanation of the Berkshire subsidiary’s products or services or the
execution or performance of a contract or legitimate charitable or educational programs, (2) not
intended to improperly influence the official, and (3) are in compliance with the requirements of
this Policy. Such expenses must be reasonable (not lavish) and limited to travel and
accommodation expenses that are incurred for an official’s direct travel to and from the location
of the Berkshire subsidiary event or location. The expenses paid must not include expenses for
any “side trip” taken to other cities or countries. Lodging expenses should include only reasonable
accommodation costs, including reasonable expenditures for meals actually incurred in or
incidental to lodging in business-class hotels, and only during the period of the particular meeting,
facility visit, seminar, or event, or en route to such activities. Where such expenses are approved
for payment, any payment should be made to the intermediary (for instance, an airline or hotel)
rather than to the government official whenever practicable, and any such payments must be
supported by receipts and be properly documented and recorded in the applicable Berkshire
subsidiary’s books and records. Under no circumstances shall per diem payments or allowances
be provided to a government official, nor shall a Berkshire subsidiary pay for any portion of
expenses incurred by any spouse or other family member of a government official.
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Facilitating Payments. The FCPA permits a “facilitating or expediting payment” that is
small in amount and made in furtherance of a routine governmental action. Examples of “routine
governmental action” include processing visas or customs forms. Routine governmental action
does not include discretionary acts such as a decision to award new business or to continue
business with a particular party. Routine governmental action also does not include an agreement
by a government official to ignore or allow the payer to evade a government rule or regulation.
Thus, paying a government official a small amount to have the power turned on at a factory might
be a facilitating payment under the FCPA, but paying an inspector to ignore the fact that the
company does not have a valid permit to operate the factory would not be. Some countries have
more restrictive rules regarding facilitating payments; for example, facilitating payments are not
permissible in the United Kingdom and in Canada. In fact, the U.S. is in the minority of countries
that tolerate facilitating payments. Most countries have embraced the regulations of the
Organization for Economic Co-operation and Development (“OECD”), which describes facilitating
payments as “corrosive” and recommend that member countries “encourage companies to
prohibit or discourage the use of facilitation payments.” Therefore, before providing any facilitating
or expediting payments, Berkshire subsidiary employees must confirm through a local lawyer that
doing so is permitted by local law. Where permitted by local law, this Policy permits facilitating or
expediting payments only when nominal in value and designed merely to expedite routine
governmental action that the Berkshire subsidiary is entitled to receive. Any doubts as to whether
a facilitating or expediting payment may be made should be raised promptly, and where possible
in advance, with the applicable Berkshire subsidiary’s Compliance Officer or other appointed
representative such as the subsidiary’s Legal Department. If a facilitating payment is made, it
must be accurately reflected in the applicable subsidiary’s books and records.
Political Contributions. Any political contribution made must be consistent with local law
and in compliance with the FCPA, and cannot be made to obtain or retain business, direct
business to another person or entity, or to obtain an improper advantage. No political contribution
should be made outside of the U.S. without: (1) the receipt of a written legal advice by local
counsel concerning the legality of the contribution under local law, (2) the receipt of written legal
advice from U.S. counsel concerning the legality of the contribution under the FCPA, and (3) prior
written approval of the applicable Berkshire subsidiary’s Compliance Officer or other appointed
representative such as the subsidiary’s Legal Department.
Charitable and Educational Contributions. Any charitable or educational contribution,
including expenses for travel, lodging or meals, must be consistent with local law and in
compliance with the FCPA, and cannot be made to obtain or retain business, direct business to
another person or entity, or to obtain an improper advantage. Berkshire and its subsidiaries should
perform and document appropriate risk-based due diligence prior to making a charitable or
educational contribution outside of the U.S. to determine if “red flags” exist which might increase
the anti-corruption compliance risk associated with making the contribution.
The FCPA’s Accounting and Internal Control Provisions. The FCPA imposes strict
accounting and recordkeeping requirements on Berkshire and its majority-owned subsidiaries.
These accounting provisions have two primary components: the books and records provision and
the internal controls provision.
Books and Records
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The accounting provisions require Berkshire and its subsidiaries to maintain books and
records which accurately and in reasonable detail fairly reflect transactions and the disposition of
assets. This requirement extends not only to the general ledgers but also to all documents that
describe business transactions and dispositions of assets such as invoices, receipts, expense
reports, purchase orders and shipping documents. False, misleading or incomplete entries in
Berkshire subsidiary records are prohibited. This Policy also prohibits the maintenance of
undisclosed or unrecorded funds or accounts. Because the books and records provision does not
include a materiality requirement, any false record, no matter what the amount, can give rise to
an FCPA violation. Therefore, all personnel must take responsibility for compliance with the books
and records requirements of the FCPA. No employee should assume that accurate books and
records is the responsibility of just those in finance and accounting.
Internal Controls
The internal controls provision of the FCPA requires Berkshire and its subsidiaries to devise and
maintain a system of internal accounting controls sufficient to provide reasonable assurances
that: (1) transactions are executed in accordance with management’s general or specific
authorization; (2) transactions are recorded as necessary to: (a) permit preparation of financial
statements in conformity with generally accepted accounting principles or any other criteria
applicable to such statements and (b) maintain accountability of assets; (3) access to assets is
permitted only in accordance with management’s general or specific authorization; and (4) the
recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. It is the policy of each Berkshire
subsidiary that all transactions be recorded in a timely, consistent and accurate manner in terms
of amount, accounting period, purpose and accounting classification. Furthermore, each
Berkshire subsidiary must abide by the following rules:
•
•
•
•
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Each transaction or disposition of assets by a Berkshire subsidiary must have
proper authorization. Receipts must be obtained and kept for any travel, gifts or
entertainment provided to a government official. A request for reimbursement for
such expenses must be accompanied by supporting documentation including: (a)
a description of the expenditure; (b) its purpose; (c) identification of the recipient
of the funds; (d) the amount of money spent; and € the manner of payment. These
records should be periodically monitored for compliance with this Policy.
No secret or unrecorded fund or asset of a Berkshire subsidiary shall be created
or maintained, and no accounting balances shall be created or maintained that do
not have documentary support, are fictitious in whole or in part, or have no
reasonable basis in fact.
No checks of a Berkshire subsidiary may be written to “cash,” to “bearer,” or to
third-party designees of a party entitled to payment. Other than documented petty
cash transactions, no cash transactions may be made, unless such transaction is
evidenced by a receipt bearing the signature of the recipient and the recipient is a
party with whom the relevant Berkshire subsidiary has a written contract.
All petty cash accounts must be maintained with strict controls to ensure that no
cash is dispensed without the proper approvals. Approval must be subject to the
recipient’s demonstration that the funds are to be expended only for a proper
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•
•
petty cash must be appropriately documented with third-party receipts, where
practicable. Documentation supporting petty cash transaction should include: (a)
the business purpose for the use of the cash; (b) the date; (c) the amount paid; (d)
the name of the person dispensing the cash; (e) the name of the person receiving
such cash from the Berkshire subsidiary account; and (f) the name of the ultimate
recipient of the cash, if different.
Payments to Intermediaries should be made only in the country where the
Intermediary provides the services or in the country, if different, in which the
Intermediary has its headquarters. The practice of transferring funds to accounts
in countries other than the location of the services or the Intermediary’s
headquarters is not permissible unless the Intermediary provides a valid business
purpose, proper supporting documentation and the transactions are authorized by
the designated Berkshire subsidiary’s Compliance Officer.
Access to systems of accounting or financial records shall not be given to
individuals without proper authorization. Destruction or removal of a Berkshire
subsidiary’s records may be undertaken only in compliance with such Berkshire
subsidiary’s internal policy and the policy of Berkshire.
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Any individual who has reason to believe that a violation of the
foregoing rules may have occurred at any Berkshire subsidiary (including
that a payment to a government official was mischaracterized in a
Berkshire subsidiary’s books and records) must promptly report that
concern to a supervisor or Compliance Officer, or through the Berkshire
Ethics & Compliance Hotline. Any inquiry from the internal or independent
auditors of a Berkshire subsidiary must be responded to fully, accurately
and promptly.
When requested, every employee is required to cooperate with any
effort by Berkshire or outside counsel hired by Berkshire to investigate
whether a violation of any compliance policy of Berkshire or any Berkshire
subsidiary has occurred. Such cooperation includes providing information
that is requested and participating in interviews, investigations and audits
when requested.
Penalties. A violation of the FCPA can result in serious
consequence for a Berkshire subsidiary and for the individuals involved.
Criminal penalties for individuals include fines up to $250,000 per violation
and imprisonment of up to five years for anti-bribery violations and fines
up to $5,000,000 per violation and imprisonment of up to twenty years for
accounting provision violations. Individual officers, directors and
employees may be prosecuted even if the company for which they work is
not. Fines assessed against individuals may not be reimbursed by
Berkshire or any Berkshire subsidiary.
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The FCPA criminal provisions establish that companies may be
fined up to $2,000,000 for an anti-bribery violation and up to $25,000,000
for each accounting provision violation. Under alternative sentencing
provisions, these fines can be even higher. The FCPA also allows a civil
action for a fine of up to $10,000 against any company or person that
violates the FCPA, although that sum also can increase substantially
depending upon the circumstances.
All Improper Payments Prohibited. While the FCPA applies to bribes and kickbacks
paid to government officials, improper payments to other persons may violate other U.S. laws or
the local law of the country in which such payments are made. This Policy expressly prohibits the
promise, authorization, offering or payment of bribes or kickbacks to any person under any
circumstances in order to influence their actions or gain some improper business advantage,
whether the recipient is domestic or foreign and whether or not the recipient is a government
official. For example, Berkshire subsidiary employees must not offer or pay anything of value to
managers, employees or agents of customers or prospective customers to induce them to award
business to a Berkshire subsidiary, to influence their actions or to obtain any other improper
advantage. Berkshire subsidiary employees must exercise care when providing meals, gifts or
other business courtesies. Providing business courtesies in a commercial setting to create
goodwill may be permissible, but providing or offering business courtesies with the intent or
expectation of obtaining more favorable business terms or opportunities that otherwise would not
be available is prohibited. Berkshire subsidiaries, subsidiary employees and Intermediaries are
prohibited from directly or indirectly engaging in commercial bribery. They also must not receive
such payments from any person or company in return for providing an improper advantage such
as awarding business to such person or company.
============================================================
Instructions to Sections III and IV:
This policy is primarily focused on U.S. laws and regulations. Because conflicts may exist between
U.S. laws and the laws of other countries in which a subsidiary operates, each Berkshire subsidiary
organized outside of the U.S. or with operations outside of the U.S. should undertake an analysis
prior to adopting Sections III and IV of this policy to confirm that no aspect of those Sections
violates any non-U.S. laws applicable to it. If a subsidiary determines that implementation of the
policies in Sections III and IV would violate local law, the subsidiary must consult with the Berkshire
Chief Financial Officer to receive additional guidance on potential modifications of the policies
below.
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III.
PROHIBITED TRANSACTIONS WITH
CERTAIN COUNTRIES/REGIONS AND
PERSONS
Each Berkshire subsidiary and its employees must strictly comply with all applicable
economic and trade sanctions and embargo programs under U.S. law, United Nations resolutions
and the laws and regulations of other countries to which they are subject. Compliance requires
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careful monitoring of, and sometimes prohibition of, transactions involving sanctioned countries
and regimes and sanctioned individuals, entities, vessels, and aircraft (for example, terrorists,
proliferators of weapons of mass destruction and narcotics traffickers). In most cases, violations
can result in criminal penalties of up to 20 years in jail, a $1 million fine, or both, and civil penalties
per violation in an amount up to the greater of $311,562 or twice the value of the transaction
involved. However, depending on the type of violation and the statutory regime implicated, the
applicable penalties can be higher.
Most of the trade restrictions described in Section III of this Policy apply to “U.S. persons,”
which include all (i) companies organized in the U.S. and their foreign branches, (ii) companies
and persons located in the U.S. or otherwise subject to U.S. jurisdiction (e.g., through utilization
of the U.S. banking system) and (iii) U.S. citizens and permanent resident aliens wherever located
(including U.S. persons acting on behalf of foreign persons). For purposes of the U.S. embargo
of Cuba and the sanctions applicable to Iran, as described below, foreign entities owned or
controlled by U.S. persons are also covered.
The policies set forth in this Section III must be adopted by all Berkshire subsidiaries that
are organized in the U.S. or that have U.S. operations. Any Berkshire subsidiary that is organized
outside of the U.S. and does not have U.S. operations should carefully evaluate its legal
obligations with respect to these trade restrictions, taking into account such factors as its
ownership, the citizenship of its employees, the nature and location of its operations and thirdparty relationships (in particular banking relationships) and whether it utilizes or sells goods,
services, or technology subject to U.S. export controls, and shall adopt all portions of this Policy
that are applicable to its operations, or are otherwise prudent, to the extent consistent with local
law. Any potential conflict between local law and the trade restrictions described below should be
addressed by the Compliance Officer of the affected Berkshire subsidiary in consultation with
legal counsel and the Chief Financial Officer of Berkshire or other person designated by the Chief
Financial Officer of Berkshire.
Below is more specific information regarding certain country or activity-specific sanction
programs:
Transactions with Cuba, Iran, North Korea, Syria, and the Crimea Region of Ukraine.
The U.S. has instituted comprehensive embargoes against the following countries/geographical
regions:
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Cuba;
Iran;
North Korea;
Syria; and
The Crimea Region of Ukraine.
These sanctions programs embargo or prohibit, with certain exceptions, U.S. persons from
engaging in trade, commercial, or financial transactions involving the above countries/regions.
Some non-exhaustive examples of dealings that may be restricted include:
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Imports into the U.S., and, in some cases, into other countries, of goods, technology,
software, or services from, or originating in, the embargoed country/region;
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•
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Exports from the U.S. or, in some cases, from foreign countries, of goods,
technology, software, or services, either directly or through intermediaries, to the
embargoed country/region;
Investments in the embargoed country/region;
Brokering the sale of goods, technology or services to or from the embargoed
country/region, even if the transaction is done entirely outside of the U.S.;
Providing insurance or reinsurance to businesses or property of the embargoed
country/region or its nationals, or for imports from, or exports to, the embargoed
country/region or its nationals; and
Other transactions in which a financial institution or other person acting on behalf of
the embargoed country/region has any interest.
The embargo programs are subject to frequent changes. Detailed information regarding
these embargoes, including “FAQs” and other guidance, can be obtained from the Office of
Foreign Assets Control (“OFAC”) website at https://home.treasury.gov/policy-issues/financialsanctions/sanctions-programs-and-country-information, and compliance officials at Berkshire
subsidiaries are encouraged to consult the OFAC website regularly and to sign up to receive email
announcements from OFAC when changes occur or new information or guidance becomes
available.
In addition, no Berkshire or Berkshire subsidiary employee or representative may travel
for business to the embargoed countries listed above without the prior written approval of the
Compliance Officer of the Berkshire subsidiary. If such travel is approved, it may be undertaken
only in accordance with any conditions of the approval. Furthermore, regardless of whether the
travel is for business or for personal reasons, no Berkshire or Berkshire subsidiary employee may
carry Berkshire or Berkshire subsidiary issued devices into those countries (i.e., laptops, mobile
phones, tablets or other mobile devices, etc.), and no employee’s personal mobile device carried
on such travel may include any application(s) that allow access to any Berkshire or Berkshire
subsidiary’s email system or network.
Transactions with Venezuela. Due to ongoing and increasing concerns of the U.S.
Government regarding political and social developments in Venezuela, OFAC and other federal
agencies have developed and implemented sanction programs relative to a variety of specific
industries, government agencies, individuals and entities. The various sanction programs, when
considered together in light of their breadth and complexity, make this a de facto embargo on
dealings with Venezuela. As a consequence, Berkshire has a policy of not doing business with or
in Venezuela, or with individuals or entities that constitute the government of Venezuela.
To ensure compliance with the foregoing laws and sanction programs, no Berkshire
subsidiary to which this Section III applies may engage in any transactions or conduct of
the type described above that is known to, directly or indirectly, involve Cuba, Iran, North
Korea, Syria, Venezuela or the Crimea Region of Ukraine, without prior consultation with the
Compliance Officer of the affected Berkshire subsidiary in consultation with legal counsel and the
Chief Financial Officer of Berkshire or other person designated by the Chief Financial Officer of
Berkshire.
Russian Sectoral Sanctions. Executive Order 13662 authorizes sectoral
sanctions, pursuant to which OFAC has designated entities determined to be operating
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in three designated sectors of the Russian economy (defense, energy and financial
services) for inclusion on the Sectoral Sanctions Identification List (“SSI List”). The
prohibitions are set forth in four OFAC “Directives.” Directives 1 (banking), 2 (energy)
and 3 (defense) generally prohibit U.S. persons or those in the U.S. from dealing in “new
debt” of the SSI entities designated under the applicable Directive (also in “new equity” of
the banks under Directive 1). Importantly, “new debt” as defined includes trade credit
offered to SSI customers. Directive 4 (energy) prohibits U.S. persons or those in the U.S.
from providing goods, services (except for financial services), or technology to any SSI
entity designated under Directive 4 in support of oil exploration/production projects of
three types — deep water, Arctic offshore, or shale — that have the potential to produce
oil in the Russian Federation or its claimed maritime area. In addition, for projects initiated
on or after January 29, 2018, Directive 4 was expanded to cover deep water, Artic
offshore, and shale projects that have the potential to produce oil in any location (not just
within the Russian Federation) in which an SSI designated under Directive 4 holds a 33%
or greater interest, directly or indirectly. In addition, for all Directives, if an entity that does
not appear on the SSI List is owned 50% or more, directly or indirectly, by one or more
SSIs designated under the same Directive, then the entity will be subject to that Directive
even if it is not itself listed on the SSI List. Therefore, it is important to conduct ownership
due diligence of prospective trading partners, as well as screening against the SSI List
and other applicable lists. Prior to doing any business involving these Russian sectors,
Berkshire subsidiaries must adopt detailed written operating policies and procedures
regarding how business will be conducted in strict compliance with these regulations and
submit such policies and procedures for the prior approval of the Chief Financial Officer
of Berkshire or other person designated by the Chief Financial Officer.
Transactions with China. China is the recent target of significant U.S. economic sanctions and
export control measures that restrict dealings with Chinese companies or individuals or prohibit
or place license requirements on certain U.S. exports and re-exports to China. Multiple U.S.
Government agencies have updated their various lists to include Chinese Government entities
and officials, as well as numerous private entities and individuals. Under the U.S. Export
Administration Regulations (“EAR”) discussed in Section IV of this Policy, the U.S. Commerce
Department’s Bureau of Industry and Security (“BIS”) Entity List identifies numerous well known
Chinese companies and their worldwide affiliates (such as Hauwei) to whom U.S. exports and reexports are not permitted without a BIS license. In addition, the EAR applies end-use controls and
an export and re-export license requirement (with a policy of denial) for certain commercial items
when shipped to companies in China that also manufacturer and support defense articles for use
by the Chinese military or companies in China who support military intelligence. To assist
exporters in applying these controls, BIS recently introduced the Military End-Users List (found in
Supplement 7 to Part 744 of the EAR) and the Military-Intelligence End-Users List (found in
Section 744.22 of the EAR). The U.S. Government also changed its approach with regard to
treatment of Hong Kong, removing separate export licensing rules and permissions and requiring
imported goods to reflect Chinese, rather than Hong Kong, origin. Recent human rights laws are
also focused on forced labor in China, resulting in an import ban into the U.S. of several products
produced in the Xinjiang Uyghur Autonomous Region, including agricultural products,
automobiles and electronics (see OFAC’s 2021 Xinjiang Supply Chain Business Advisory). These
and other restrictions are developing quickly. Berkshire subsidiaries that do business with and in
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China are encouraged to review new developments on a regular basis and make sure that their
policies and procedures align with current economic sanction, export and import requirements.
Transactions with Certain Blocked Individuals, Entities and Groups. The U.S. has
also instituted economic and trade sanctions programs prohibiting U.S. persons, including
companies located outside the U.S. who are owned by a U.S. parent, from engaging in unlicensed
transactions of almost any nature with designated individuals, entities, vessels and aircraft. The
U.S. Government identifies such individuals, entities, vessels and aircraft by putting their names
on the list of “Specially Designated Nationals and Blocked Persons” (the “SDN List”) maintained
by OFAC. Other lists of parties with which various transactions are restricted or off-limits include
the Entity List, the Denied Persons List and the Unverified List, each as maintained by BIS; and
the Debarred Parties List, as maintained by the U.S. Department of State’s Directorate of Defense
Trade Controls.
The SDN List includes entities that have engaged in conduct that is inimical to U.S.
national security and foreign policy interests, such as “Transnational Criminal Organizations,”
“Narcotics Traffickers,” “Terrorist Organizations,” “Proliferators of Weapons of Mass Destruction”
and other conduct such as cyber-related crime, election interference, corruption and human rights
violations. Others on the list include persons and entities from the embargoed countries and
regions described above (i.e., Cuba, Iran, North Korea, Syria and Crimea Region of Ukraine), as
well as others who have engaged in conduct related to certain specified countries or regions,
including, but not limited to, the Balkans, Belarus, Burma (Myanmar), Central African Republic,
the Democratic Republic of the Congo, Ethiopia, Hong Kong, Iraq, Lebanon, Libya, Mali,
Nicaragua, Russia, Somalia, South Sudan, Sudan and Darfur, Ukraine, Venezuela, Yemen and
Zimbabwe.
The SDN List is updated frequently (sometimes, as often as several times a week) and is
available on the Internet at https://home.treasury.gov/policy-issues/financial-sanctions/speciallydesignated-nationals-and-blocked-persons-list-sdn-human-readable-lists. 3
Persons subject to OFAC sanctions include not only persons named on the SDN List but
also persons that are directly or indirectly 50% or more owned in the aggregate by one or more
entity on the SDN List. Such entities must be treated as blocked or designated parties. Thus, it is
important to know the ownership structure of companies with which transactions are conducted
to determine whether the company, though perhaps itself not an SDN, is an SDN by application
of OFAC’s 50 Percent Rule. This analysis often includes an understanding of the companies’
owners’ owners. In addition to all persons explicitly named on the SDN List or that are SDNs by
application of OFAC’s 50 Percent Rule, blocking requirements apply to the Governments of Cuba,
Iran, North Korea and Syria; as well as most Cuban individuals and entities and all Iranian financial
institutions.
In addition to being prohibited from engaging in transactions with SDNs, U.S. persons who
come into possession or control of any property in which an SDN has any interest, must “block”
or “freeze” such property (e.g., by placing blocked funds in a blocked account) and reporting the
blocking to OFAC within 10 business days. This is most often relevant in a banking context but
The OFAC website also offers a search engine for the SDN List and
other lists maintained by OFAC at http://sdnsearch.ofac.treas.gov/.
3
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may be a reason why a seller (located anywhere in the world) is unable to be paid for services
previously rendered or goods already delivered.
Before entering into any transaction and shipping goods, each Berkshire subsidiary should
conduct applicable screening of parties (including vendors and customers) and, when applicable,
their owners against the SDN and other restricted party lists, including the SSI List, to identify any
applicable restrictions that may prohibit or restrict the transaction. The U.S. Government has
aggregated U.S. lists into the Consolidated Screening List which is available at
https://legacy.export.gov/csl-search. In lieu of manual screening, there are a variety of third-party
software vendors that can provide automated screening tools. Berkshire subsidiaries are
encouraged, as part of their risk assessments, to consider whether acquiring such a screening
tool would be appropriate given the volume and nature of its transactions. Each Berkshire
subsidiary that adopts a screening tool should ensure that it covers all applicable U.S. lists and
all applicable lists of other countries in or with which the subsidiary does business.
Each subsidiary should develop a risk-based procedure to screen transactions and ensure
compliance with any applicable prohibitions, sanctions and embargoes. Subsidiaries should
monitor compliance with Section III of this Policy.
No Berkshire subsidiary or employee to which this Section III applies may engage in any
transactions, or conduct any activities with, any person, entity, vessel or aircraft on the SDN List
(or any person who is otherwise blocked), whether directly, or indirectly, and any prospective
dealings with persons on, or suspected to be on, the SDN List must be immediately reported to
the applicable Berkshire subsidiary’s Compliance Officer.
Ransomware Payments. OFAC issued an advisory regarding the payment of ransom in
connection with malware attacks. Persons associated with several types of malware have been
added to the SDN List, including persons associated with Triton, Cryptolocker, SamSam,
WannaCry 2.0 and Dridex, as well as companies that facilitate financial transactions for
ransomware actors, including SUEX. In addition, OFAC recently issued guidance designed to
assist the virtual currency industry in complying with OFAC sanctions
(https://home.treasury.gov/system/files/126/virtual_currency_guidance_brochure.pdf).
As discussed above, U.S. persons are prohibited from dealing with persons on the SDN
List and entities directly or indirectly 50% or more owned in the aggregate by one or more SDNs
and OFAC has stated that applications for licenses allowing ransomware payments to SDNs are
subject to a presumption of denial. Berkshire subsidiaries who face ransomware demands from
malicious cyber actors, or who provide insurance or reinsurance covering cyber ransomware
demands or payments, should undertake due diligence to ensure that the party demanding a
ransom payment is not an SDN or otherwise subject to trade sanctions. Ransomware payments,
where a Berkshire subsidiary is the victim, should only be made by the subsidiary when approved
by that Berkshire subsidiary’s Compliance Officer. In cases where the Berkshire subsidiary
provided insurance or reinsurance covering cyber ransomware demands, such reinsurance
claims should only be paid after compliance with the applicable written cyber ransomware due
diligence procedures that have been approved by that subsidiary’s Compliance Officer. OFAC
also strongly recommends prompt reporting of such demands to law enforcement. OFAC’s latest
guidance on potential sanctions risks of facilitating ransomware payments contains important
information regarding OFAC’s expectations regarding reducing the risk of extortion by a
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sanctioned actor through adopting or improving cybersecurity practices, as well as cooperation
with OFAC and law enforcement may be found at:
(https://home.treasury.gov/system/files/126/ofac_ransomware_advisory.pdf).
The U.S. Department of the Treasury has also urged organizations of all sizes to take
measures to reduce their risk of ransomware attacks and improve their cybersecurity resilience,
and has created the website www.stopransomware.com, which brings together tools and
resources from multiple federal government agencies that organizations can use to learn more
about how ransomware works, how to protect themselves, how to report incidents and how to
request technical assistance.
Facilitation. No Berkshire subsidiary or employee, wherever located, may facilitate any
transaction with any embargoed country or individual subject to sanctions, to include any SDN,
without appropriate license or other authorization having been issued. “Facilitation” is “any
unlicensed action by a U.S. person that assists or supports trading activity with [a sanctions target]
by any person,” with certain narrow exceptions (e.g., activities of a “purely clerical” nature, or of a
“reporting nature that does not further trade or financial transactions”).
If you receive a communication from a Berkshire foreign subsidiary that may be related to
any transaction(s) that would be prohibited if performed by a U.S. person or within the U.S., please
consult with your subsidiary’s Compliance Officer or outside counsel before responding to that
communication or engaging in discussion regarding the transaction.
Any activities or communications with Berkshire’s foreign subsidiaries or their personnel,
whether in the U.S. or abroad, that may be interpreted as facilitating such transactions are strictly
prohibited. OFAC interprets these terms very broadly. For example, facilitation occurs if a
Berkshire subsidiary or employee:
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Alters policies or procedures to permit a foreign affiliate to accept a transaction
involving a prohibited party.
o You may not alter a foreign affiliate’s operating policy or procedure, or
those of a foreign affiliate, to permit a foreign affiliate to accept or
perform a specific contract, engagement or transaction involving a
prohibited party without the approval of the U.S. person, where such
transaction previously required approval by the U.S. person and such
transaction by the foreign affiliate would be prohibited by this part if
performed directly by a U.S. person or from the U.S.
o You may not change the operating policies and procedures of a
particular affiliate with the specific purpose of facilitating transactions
that would be prohibited by U.S. sanctions laws if performed by a U.S.
person or from the U.S.
Responds to a request for proposal involving a prohibited party or country.
o You may not respond to a foreign person’s purchase orders, requests
for bids, or similar business opportunities involving a prohibited party or
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•
•
country to which the U.S. person could not directly respond as a result
of U.S. sanctions laws.
Formally or informally votes on a transaction (e.g., as a board member),
approves, directs, or executes transaction documents, where the transaction
would be prohibited if performed by a U.S. person or within the U.S.
Allows a foreign Berkshire subsidiary to utilize the resources of a U.S. Berkshire
entity (e.g., computer systems, licensed software, banking relationships,
operational oversight, management, or legal services, etc.) to support its
transactions, where the transaction would be prohibited if performed by a U.S.
person or within the U.S.
The facilitation rule does not prevent the following activities in relation to transactions that
violate U.S. sanctions laws or would violate U.S. sanctions laws if conducted by U.S. persons:
•
•
Compliance advice and counseling on the requirements of and compliance with
U.S. laws, as long as the advice and counseling does not facilitate transactions
that violate U.S. sanctions laws or would violate U.S. sanctions laws if
conducted by U.S. persons.
Passive receipt of financial reporting information, provided that any follow-up
communications or discussions regarding any such information received are
subject to the above consultation requirement.
Secondary Sanctions. The U.S. Government also maintains “secondary sanctions”
programs, in many cases mandated by legislation, under which sanctions can or must be imposed
on foreign persons who engage in dealings with SDNs or other activities contrary to U.S. national
security or foreign policy. Secondary sanctions seek to regulate the business of foreign
companies that have no nexus to the U.S. by imposing consequences for engaging in such
activities. Secondary sanctions are particularly prevalent in the context of the Iran and Russia
sanctions programs, but many other sanctions programs also have secondary sanctions
elements. Under secondary sanctions, foreign companies that do business with SDNs and
embargoed countries can be subject to certain consequences that may affect their ability to do
business with the U.S., including denial of access to the U.S. financial system and/or designation
of the foreign person as an SDN. Berkshire’s non-U.S. subsidiaries should inform themselves of,
and consider possible secondary sanctions risks of dealing with SDNs or engaging in other
dealings that could result in secondary sanctions exposure.
Disclosure of Iran-Related Activities. Section 13 of the U.S. Securities Exchange Act of
1934 requires that certain issuers registered with the Securities and Exchange Commission
(“SEC”), including Berkshire, disclose in their public filings and in separate reports to the SEC if
the issuer or any of its affiliates has knowingly engaged in certain specified activities related to
Iran. For these issuers, quarterly and annual reports must include disclosure on all of the
reportable activities that occurred during the period covered by the report (e.g., for an annual
report, during the fiscal year). Disclosure is required regarding the activities of each of Berkshire’s
subsidiaries, which are considered affiliates under the law.
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A broad range of activities are reportable, including those relating to Iran’s energy sector,
military capabilities, suppression of human rights, or involving certain financial transactions; or
Iranian SDNs. Reportable activities include, among others:
•
•
•
Certain activities relating to Iran’s petroleum industry, such as providing insurance
or reinsurance contributing to Iran’s ability to import refined petroleum products;
Certain activities contributing materially to Iran’s ability to acquire or develop
destabilizing numbers and types of advanced conventional weapons or weapons of
mass destruction; and
Certain activities supporting Iran’s acquisition or use of goods or technologies that
are likely to be used to commit human rights abuses against the people of Iran.
In addition, the law requires that issuers disclose any transactions or dealings with any
person or entity designated as a global terrorist or proliferator of weapons of mass destruction on
the SDN List (whether or not relating to Iran).
The required report must include detailed information such as the nature and extent of the
activity, gross revenues and net profits (if any) attributable to the activity, and whether the
company intends to continue the activity. Such information is made available to the public and
may result in an investigation or imposition of sanctions by the U.S. Government.
If employees of a Berkshire subsidiary have reason to believe that any potentially
reportable activity has occurred, they must promptly report the matter to the Chief Financial Officer
of Berkshire, so that a determination may be made as to whether the activity is of the type required
to be disclosed under U.S. law. Because there is no materiality threshold for transactions subject
to the disclosure requirement, it is important that Berkshire be made aware of any and all such
activities, even those that may seem minor or incidental.
Ongoing Compliance. As anti-terrorism and foreign policy programs evolve and related
rules change, the nature and extent of permitted and prohibited activities could change; for
instance, additional countries or persons could become subject to embargoes or sanctions
programs, or existing embargoes could be lifted or sanctions programs relaxed. Also, additional
or different requirements may be applicable to Berkshire companies that are not U.S. persons or
that are doing business outside of the U.S. Each Berkshire subsidiary should monitor applicable
sanctions programs and other trade restrictions to ensure that its policies remain current.
Berkshire subsidiary employees should consult with their Compliance Officer to confirm
compliance with applicable requirements before entering into any contractual or business
relationship with persons or involving countries implicating potential embargoes or sanctions
programs.
Guidance regarding OFAC’s expectations regarding risk assessments and compliance is
available at https://home.treasury.gov/system/files/126/framework_ofac_cc.pdf.
IV.
OTHER RESTRICTED TRANSACTIONS
U.S. Anti-Boycott Laws. U.S. anti-boycott laws prohibit U.S. companies and their
“controlled in fact” foreign affiliates, to the extent U.S. commerce is involved, from participating in
foreign boycotts that the U.S. does not sanction. Moreover, if a boycott-related request is
received, it must be reported to the Commerce Department within 30 days of the end of the
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calendar quarter in which it was received. Participating in an unsanctioned foreign boycott can
also have negative tax consequences.
Although the anti-boycott laws apply to all non-U.S.-sanctioned boycotts imposed by
foreign countries, the Arab League’s boycott of Israel is the principal foreign economic boycott
covered. While the Treasury Department has identified Iraq, Kuwait, Lebanon, Libya, Qatar, Saudi
Arabia, Syria and Yemen as boycotting countries, other countries may be sources of boycott
requests, as well.
It is the policy of each Berkshire subsidiary to comply fully with all applicable U.S. antiboycott laws. No Berkshire subsidiary or its employees may take any action that, directly or
indirectly, supports the boycott of Israel or any other foreign boycott not sanctioned by the U.S.
Any employee with concerns as to whether a transaction implicates U.S. anti-boycott rules, or the
boycott or anti-boycott laws of any other country, should consult with the subsidiary’s Compliance
Officer and not proceed with the transaction until advised. Moreover, if employees receive a
boycott-related request, they must promptly notify the subsidiary’s Compliance Officer.
Export and Import Compliance. Through various statutes and regulations including, but
not limited to, the International Traffic in Arms Regulations (“ITAR”), the EAR, the Importation of
Arms, Ammunition and Implements of War regulations, and U.S. Customs laws and regulations
(collectively “U.S. Import and Export Control Laws”), the U.S. Government controls the import
(permanent and temporary) into and the export (temporary and permanent) directly from the U.S.,
or indirectly from or through a foreign country, of products, software and technology/technical
data; and the provision of related defense services to foreign persons/nationals. In addition, the
ITAR includes registration requirements for U.S. manufacturers (including processors) and
brokers of defense articles subject to the ITAR, even if those companies do not export from the
U.S. The ITAR and EAR prohibit exports and re-exports of all commodities subject to their
respective controls, as well as exports of covered technology/technical data and software, and
the provision of defense services and certain brokering services (even by companies organized
abroad), without an applicable export license or approval having been issued, or an applicable
exemption or exception being available. The EAR and ITAR also prohibit any unauthorized
release of controlled technical information to a foreign national; even when the transfer occurs in
the U.S., the regulations “deem” the release an export to the individual’s country or countries of
nationality (this is often called a “deemed export”). The agencies responsible for administering
the EAR and the ITAR have also published lists of parties with which various export or re-export
transactions are restricted or off-limits (referenced above in the Transactions with Certain Blocked
Individuals, Entities and Groups section). It is the policy of each Berkshire subsidiary to comply
fully with U.S. Import and Export Control Laws, as well as applicable local export and import laws.
Each Berkshire subsidiary should evaluate its operations to determine whether it is subject to
these regulations and, if so, develop appropriate procedures to address its individual compliance
risks.
V.
RETENTION OF INTERMEDIARY SERVICES
Prior to engaging intermediaries, each Berkshire subsidiary shall conduct appropriate and
thorough due diligence documented in writing concerning intermediaries, which include agents,
resellers, distributors, lobbyists, joint venture partners, customs brokers, freight forwarders or
other contractors. Each Berkshire subsidiary employing the services of such Intermediaries shall
develop and maintain documented due diligence procedures appropriate to the risks presented
which allow the subsidiary’s compliance personnel to evaluate and consider the business
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rationale for needing the third party’s assistance as well as the compliance risks posed by the
third-party partners, including the third-party partners’ reputations and relationships, if any, with
foreign officials or the family members of foreign officials and any compliance risk “red flags.”
Each Berkshire subsidiary shall engage in monitoring, assessing and managing the compliance
risks associated with the use of Intermediaries throughout the lifetime of the relationship, and not
just during the onboarding process, by periodically updating the due diligence on Intermediaries.
Subsidiaries should update the due diligence of Intermediaries that face a higher assessed risk
of FCPA compliance at least every three years and determine an appropriate risk-based timeline
for lower risk Intermediaries.
Due diligence performed on Intermediaries shall include, at a minimum, a documented
evaluation of the third party’s owners and management to determine if any are affected by a listing
on any U.S. prohibited parties lists, such as the SDN List, as well as whether any qualify as foreign
officials under the FCPA, and an evaluation of the third party’s character, qualifications,
experience, reputation for integrity and proven ability to provide the service for which it is being
retained. Factors against retention of a third party include, but are not limited to, any unusual
requests for compensation and any unusual payment, shipment or destination terms as well as
the discovery of any facts, circumstances or “red flags” that might suggest that use of the
Intermediary might create an increased FCPA, trade or sanctions compliance risk. The following
are examples of some common red flags that are associated with an increased FCPA compliance
risk:
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The transaction involves a country known for an increased risk of corruption based
on the Corruption Perception Index (“CPI”) ranking of the country.
A reference check reveals flaws in the Intermediary’s background.
Due diligence reveals that the Intermediary is a shell company or that there is
something else unorthodox about the Intermediary’s structure.
The Intermediary requests payment to an offshore account or other non-standard
payment terms.
The Intermediary is not clearly qualified or lacks the necessary experience to perform
the functions for which it has been hired.
The Intermediary is recommended by a government official.
The Intermediary is partially owned or controlled by a government official.
The Intermediary has a close personal family or business relationship with a
government official or relative of a government official or makes large or frequent
political contributions to government officials.
The Intermediary charges above market amounts for its services.
The Intermediary suggests that a particular amount of money may be necessary to
obtain business or to close a certain deal.
The Intermediary requests reimbursement of extraordinary, poorly documented or
last-minute expenses.
The Intermediary objects to FCPA representations, warranties and covenants and
related anti-corruption language in agreements with the Berkshire subsidiary.
The Intermediary objects to signing FCPA compliance certifications.
The Intermediary refuses to disclose its ownership, including any beneficial or other
indirect owners, principals, or employees, or requests that the identity of its owners,
principals or employees not be disclosed.
The Intermediary requests a large contingency or success fee.
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For any Intermediary regarding whom there is an appreciable risk that the Intermediary
may interact with government officials or present an FCPA, trade or sanctions compliance risk,
Berkshire subsidiaries are required to have a written agreement with anti-corruption/trade
compliance contract terms appropriate to the risks presented, including audit rights, and must
require the Intermediary to execute an appropriate annual certification of compliance with trade
and/or anti-corruption laws, including the FCPA. Such certifications of compliance shall be
annually updated and maintained by the subsidiary.
VI.
MERGERS AND ACQUISITION DUE
DILIGENCE
Where a merger or acquisition is consummated, efforts shall be taken to ensure that this
Policy and any additional policies of the acquiring Berkshire entity are implemented as quickly as
is practicable to the newly the acquired business; and anti-corruption compliance training is
conducted in accordance with this Policy for the directors, officers, and relevant employees of the
newly acquired business. In addition, following the acquisition, the acquiring Berkshire subsidiary
shall ensure that a thorough and documented assessment of the acquired company’s individual
operations and compliance risks is performed that captures the compliance risk areas discussed
in this document and that are applicable to the acquired company as a result of the unique nature
of its business operations and its geographic location. Based upon this documented risk
assessment, the acquiring Berkshire subsidiary shall require the acquiree to implement and adopt
additional policies and procedures as appropriate so that it maintains an effectively designed
compliance policy that is tailored to the unique compliance risks the subsidiary faces.
VII.
IMPLEMENTATION AND TRAINING
Distribution. General managers of Berkshire subsidiaries are responsible for the
enforcement of and compliance with this Policy within their area of responsibility, including
distribution of this Policy to Senior Management reporting to them, and other individuals
that manage the risk areas discussed in this document, including each employee, agent
or manager who is likely to communicate, interact or have business dealings with
government officials or manage persons likely to communicate, interact or have business
dealings with government officials. Berkshire subsidiaries should, when possible, make
anti-corruption, trade and sanctions compliance policies accessible to employees
electronically in their native languages in an easily searchable and accessible format that
can also be easily and regularly updated. Berkshire subsidiaries should consider based
upon assessed risk whether to employ data analytics to understand which compliance
policies are being accessed most frequently. Berkshire subsidiaries shall ensure that
compliance personnel charged with administering the anti-corruption, sanctions and trade
compliance program receive specialized training to enable them to effectively perform
their roles.
Training. This Policy and any related documentation (as well as any subsidiary policy that
is more robust) must be included in all employee manuals for each Berkshire subsidiary, shall be
provided to each member of Senior Management of each Berkshire subsidiary, and shall be
available to all employees of the Berkshire companies in English and the local languages
applicable to each subsidiary. Review and explanation of this Policy and any related
documentation (including any more robust anti-corruption, export controls or sanctions policy)
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shall be made a part of the training for each manager of a Berkshire subsidiary and for: (i) each
employee or manager who is likely to communicate, interact or have business dealings with
government officials or manage persons likely to communicate, interact or have business dealings
with government officials; and (ii) employees whose activities impact trade compliance. Periodic
training must be provided to these personnel to ensure that they have the knowledge and tools
they need to conduct business effectively and in compliance with the FCPA and applicable antibribery and anti-corruption laws as well as export control, sanctions, anti-boycott and customs
laws. For Intermediaries who may have direct or indirect dealings with government officials on a
Berkshire subsidiary’s behalf, each Berkshire subsidiary must confirm through due diligence that
such Intermediary has an adequate training program in place or it must adopt a procedure to
provide anti-bribery and anti-corruption training to the Intermediary using a risk-based approach.
The procedure should include periodic refresher training for such Intermediaries. Where
appropriate, the training for employees and Intermediaries will be conducted in the audience’s
native language; otherwise, training will be provided in English with translation as necessary.
Training shall be performed in a manner that is tailored to an audience’s size, sophistication and
subject matter expertise, and where possible should provide a means for trainees to ask
questions. Training should also be designed to adequately cover any prior compliance incidents
and lessons learned from what is publicly known of the successes and failures of peers in the
subsidiary’s industry or geographic region relating to anti-corruption compliance practices and
policies, should include discussion of real-world scenarios based upon the subsidiary’s risk
assessment, and each subsidiary shall regularly evaluate the effectiveness of its training
programs.
Resources: This Policy discusses a variety of statutes, regulations, and U.S. Government
agencies. Each agency offers helpful guidelines and resources on its webpage. The following are
some U.S. Government websites that you may find helpful as you review and apply the
compliance areas discussed in this Policy:
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•
•
•
U.S. DOJ’s Guidance Document on the Evaluation of Corporate Compliance
Programs: https://www.justice.gov/criminal-fraud/page/file/937501/download
U.S. DOJ’s FCPA Resource Guide: https://www.justice.gov/criminal-fraud/fcparesource-guide
OFAC Sanctions Program Guides by Country: https://home.treasury.gov/policyissues/financial-sanctions/sanctions-programs-and-country-information
U.S. BIS’ Resources for Establishing an Export Compliance Program:
https://www.bis.doc.gov/index.php/compliance-a-training/export-management-acompliance/compliance
U.S. DDTC’s Resources for Establishing an Effective ITAR Compliance
Program:
https://www.pmddtc.state.gov/ddtc_public?id=ddtc_kb_article_page&sys_id=4f065
83fdb78d300d0a370131f961913
It is also possible to sign up for regular email updates from OFAC, BIS and DDTC through
the links above. Berkshire subsidiaries should review these and other resources to make sure
they are familiar with the controls that apply to their business and keep current with changes in
law and regulation.
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Disciplinary Action. Because Berkshire is committed to compliance with the law and this
policy, the failure of any Berkshire subsidiary personnel to comply with this Policy will
result in disciplinary action up to, and including, termination.
Disciplinary action may also be taken against the manager of an employee who violates
this Policy should the manager fail to properly supervise the employee or know that the employee
is engaging in behavior which violates the Policy and fail to stop or prevent such behavior.
THE BERKSHIRE HATHAWAY ETHICS AND COMPLIANCE HOTLINE
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THE BERKSHIRE HATHAWAY ETHICS AND COMPLIANCE HOTLINE BROCHURE
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