VILLA FORD ORANGE, CALIFORNIA EMPLOYEE HANDBOOK 2014 Employee Handbook Table of Contents Table of Contents .......................................................................................................................................... ii Welcome ....................................................................................................................................................... 8 The Villa Ford Story ....................................................................................................................................... 9 Villa Ford's Values and Vision Statement.................................................................................................... 11 Our Customer Relations Philosophy ........................................................................................................... 12 Let’s Communicate ..................................................................................................................................... 13 What You Can Expect From Us ................................................................................................................... 14 Introductory Period................................................................................................................................. 14 Equal Employment Opportunity ............................................................................................................. 14 Policy Against Harassment ...................................................................................................................... 15 What Should You Do If You Feel You Are Or Have Been Harassed ......................................................... 16 Employee Classification .......................................................................................................................... 17 Full-Time Employees ........................................................................................................................... 17 Part-Time Employees .......................................................................................................................... 17 Temporary Employees ........................................................................................................................ 17 Work Schedule ........................................................................................................................................ 18 Meal Periods ........................................................................................................................................... 19 Rest Periods ............................................................................................................................................ 19 Lactation Break ....................................................................................................................................... 20 Dealership Benefits ..................................................................................................................................... 20 Your Pay .................................................................................................................................................. 20 Paid Holidays ........................................................................................................................................... 21 Paid Vacation .......................................................................................................................................... 21 Medical Insurance ................................................................................................................................... 22 Life Insurance .......................................................................................................................................... 22 State Mandated Insurance Benefit Programs......................................................................................... 22 Villa Ford Employee Handbook 2/14/14 Page ii State Disability Insurance.................................................................................................................... 22 Family Temporary Disability Insurance ............................................................................................... 22 Social Security ......................................................................................................................................... 23 Workers’ Compensation Insurance......................................................................................................... 23 401(k) Retirement Savings Plan .............................................................................................................. 23 IRS Section 125 -- Cafeteria Plan ............................................................................................................. 23 Employee Discounts ................................................................................................................................ 24 Suggestion Program ................................................................................................................................ 25 Training And Educational Assistance ...................................................................................................... 25 Civic Duties .............................................................................................................................................. 25 Leave for Victims of Felony Crimes ......................................................................................................... 26 Leave for Victims of Domestic Violence & Sexual Assault ...................................................................... 26 Unpaid Family School Partnership Leave ................................................................................................ 27 Pregnancy Disability Leave Of Absence .................................................................................................. 27 Family and Medical Leave Act/California Family Rights Act ................................................................... 27 Employee Eligibility ............................................................................................................................. 28 Military Leave of Absence ................................................................................................................... 28 Conditions Triggering Leave ................................................................................................................ 28 Duration of Leave ................................................................................................................................ 28 Employee Benefits During Leave ........................................................................................................ 29 Maintenance of Health Benefits ......................................................................................................... 29 Job Restoration ................................................................................................................................... 29 Notice and Medical Certification ........................................................................................................ 29 Other Disability Leaves ........................................................................................................................... 30 Bereavement Leave ................................................................................................................................ 31 What We Expect of You .............................................................................................................................. 31 Dealership Policies .................................................................................................................................. 31 Absenteeism and Tardiness .................................................................................................................... 32 Alcohol and Drug Policy .......................................................................................................................... 32 Purpose ............................................................................................................................................... 32 General Policy ..................................................................................................................................... 33 Drug Use/Distribution/Possession/Impairment ................................................................................. 33 Villa Ford Employee Handbook 2/14/14 Page iii Alcohol Use/Distribution/Possession/Impairment ............................................................................. 33 Prescription Drugs ............................................................................................................................... 33 Notification of Impairment ................................................................................................................. 33 Who is Tested...................................................................................................................................... 34 Discipline ............................................................................................................................................. 34 Enforcement Policy ............................................................................................................................. 34 Investigations/Searches ...................................................................................................................... 35 What Happens When An Employee Tests Positive For Prohibited Substances.................................. 35 Bulletin Boards ........................................................................................................................................ 35 Cash Reporting Policy.............................................................................................................................. 35 Cell Phone Policy ..................................................................................................................................... 36 Computers, E-Mail, Voice Mail and the Internet .................................................................................... 36 Computers and Software are Dealership Property ............................................................................. 37 Proper Use of Computers ................................................................................................................... 37 Unsolicited E-mail ............................................................................................................................... 39 Monitoring .......................................................................................................................................... 40 Passwords ........................................................................................................................................... 40 Data Collection .................................................................................................................................... 40 Deleted Information ........................................................................................................................... 41 System Integrity .................................................................................................................................. 41 Enforcement ....................................................................................................................................... 42 Confidentiality ......................................................................................................................................... 42 Conflict Of Interest .................................................................................................................................. 42 Courtesy .................................................................................................................................................. 42 Damage to Property ................................................................................................................................ 43 Dealership Keys/Entry Cards ................................................................................................................... 43 Dealership Vehicles ................................................................................................................................. 43 Demonstration Drives ............................................................................................................................. 44 Document Preparation ........................................................................................................................... 44 Facsimile and Copy Machines ................................................................................................................. 44 Fighting, Threats, and Weapons ............................................................................................................. 44 Fraud, Dishonesty and False Statements ................................................................................................ 44 Villa Ford Employee Handbook 2/14/14 Page iv Gambling ................................................................................................................................................. 44 Gifts and Gratuities ................................................................................................................................. 45 Hazardous and Toxic Materials ............................................................................................................... 45 Honesty ................................................................................................................................................... 45 Housekeeping ......................................................................................................................................... 45 Illegal Activity .......................................................................................................................................... 45 Insubordination....................................................................................................................................... 46 Legal Requirements ................................................................................................................................ 46 Loans and Pay Advances ......................................................................................................................... 46 Meetings ................................................................................................................................................. 46 Misuse of Property.................................................................................................................................. 47 New and Used Parts ................................................................................................................................ 47 Non-Fraternization .................................................................................................................................. 47 Off-Duty Use of Facilities ........................................................................................................................ 48 Off-Duty Social and Recreational Activities ............................................................................................ 48 Operation of Customer Vehicles ............................................................................................................. 48 Outside Employment .............................................................................................................................. 48 Overtime ................................................................................................................................................. 49 Parking .................................................................................................................................................... 49 Personal Appearance and Behavior ........................................................................................................ 49 Personal Mail .......................................................................................................................................... 50 Personal Telephone Calls and Visits........................................................................................................ 50 Poor Performance ................................................................................................................................... 51 Publicity................................................................................................................................................... 51 Sales License ........................................................................................................................................... 52 Scrap, Waste and Old Parts..................................................................................................................... 52 Searches and Inspections ........................................................................................................................ 52 Service Work ........................................................................................................................................... 52 Smoking................................................................................................................................................... 53 Solicitation - Distribution Policy .............................................................................................................. 53 Theft ........................................................................................................................................................ 53 Timekeeping Procedures ........................................................................................................................ 53 Villa Ford Employee Handbook 2/14/14 Page v Tools ........................................................................................................................................................ 54 Unauthorized Interviews ........................................................................................................................ 54 Workplace Violence Policy ...................................................................................................................... 54 Changes in Status ........................................................................................................................................ 56 Changes in Personnel Records ................................................................................................................ 56 Outside Inquiries Concerning Employees ............................................................................................... 56 Notice Of Resignation ............................................................................................................................. 56 To Sum It All Up....................................................................................................................................... 56 The Wow Way of Working . . . And Living ................................................................................................... 57 The Ten Pillars of Economic Wisdom .......................................................................................................... 58 VILLA FORD'S FOUNDING PRINCIPLES ........................................................................................................ 59 ACKNOWLEDGMENT OF EMPLOYEE HANDBOOK......................................................................................... 1 ARBITRATION AGREEMENT........................................................................................................................... 1 Villa Ford Employee Handbook 2/14/14 Page vi ATTITUDE MAKES THE DAY! Villa Ford Employee Handbook 2/14/14 Page vii Welcome Welcome to VILLA FORD, Inc. We are pleased that you are joining us and we know that your contributions will assist us in remaining a leader in both this community and in our industry. As an employee of VILLA FORD you will want to know what you can expect from us and what we expect from you. This handbook outlines the benefits, practices and policies of our Dealership. Employees are expected to read this manual carefully, to know and understand its contents, and sign the acknowledgement form that goes into your personnel employee file. You should keep this handbook handy for reference, as it highlights your opportunities and responsibilities at VILLA FORD, and as a guide to your bright future here. By always keeping the contents of the handbook in mind, you should be successful and happy in your work at VILLA FORD.. Once again, welcome to our family owned and operated dealership and we look forward to working with you. If you have questions as you read through this handbook, please do not hesitate to discuss them with your manager. Cheers! Peggy Baldwin-Butler Villa Ford President and Dealer Principal Villa Ford Employee Handbook 2/14/14 Page 8 The Villa Ford Story VILLA FORD was established in 1970 when Herb and Wanda Baldwin relocated their car dealership from Bellflower to Orange. As the dealership founders, the Baldwins acquired a long history of successful automobile merchandising based on their philosophy of good customer service along with fair pricing. But most importantly based on the Golden Rule: serve others as you would like to be served. As former import dealers, Herb and Wanda ran what you might call a “mom and pop” car store called Plaza Motors, which they started in 1956 in Bellflower, Calif. Plaza Motors held the distinction of being the top-volume English Ford Cortina Dealer in the nation, and Mr. Baldwin was personally honored by Prince Phillip, Duke of Edinburgh, for this accomplishment. It should be noted that for young Herb it was either the ministry or car sales – two seeming extremes of the moral pendulum. But anyone who knew Herb would tell you that he combined the ideals of honesty, humanity and business with great success. Customers and employees were loyal to Herb and Wanda, just as thousands of customers have been loyal to the Ford brand. Mr. and Mrs. Baldwin continued to own and operate VILLA FORD through August 1992, at which point they retired. Herb and Wanda sold their business to the next generation of Baldwins: their two daughters, Karen and Peggy, along with her husband Brian Butler. Brian took the helm. After all, he was the guy and the car industry was a man’s industry. But as Ford went down a directionless road with its brand and products, VILLA FORD also suffered its own period of bleakness. Peggy, who had been teaching and mothering through this era, had often wished things were different at the dealership. Through the 90s she managed human resources for her parents’ business, so she felt very connected to the VILLA FORD family. As time went on, there were changes Peggy wanted implemented at VILLA FORD, but she wasn’t the primary decision-maker, so most of her ideas fell on deaf ears. By 2009, VILLA FORD and Peggy herself saw a time of crisis. The dealership was losing over $100,000 per month and was faced with the prospect of closing its doors. That meant the loss of legacy, not to mention over 100 jobs. To make matters worse, Peggy and her husband were divorcing after nearly 30 years of marriage. Meanwhile, Alan Mulally took the helm at Ford Motor Company as CEO. Ford and VILLA FORD began a new era. Big changes were afoot. While Ford was making a huge shift from a diluted brand and gasguzzling monster machines to a strong brand of safe, fuel-efficient, high-tech vehicles – VILLA FORD needed to prepare itself for the resurgence of Ford products. Peggy was very aware that her options were either step up to the plate and take responsibility for the livelihoods of the VILLA FORD employees – or have to live the fact that over 100 people and their families would have to deal with unemployment. Peggy listened to her heart, and in August of 2009 she took the helm as President of her parents’ business by making a majority stock buyout option with Brian. Villa Ford Employee Handbook 2/14/14 Page 9 That decision led to a steep mountain that had to be climbed in a very short time if VILLA FORD’s bleeding was to stop and profitability to be possible gain. She had been a reluctant leader for years; now she was the figurehead. Peggy didn’t shy away from bringing her own personality and values to the new culture of the dealership. She put to work the transferable skills she gained from her roles as a high school teacher, mom, singer, theater maven and PTA president (roles that dare not be underestimated). She knew the power of meetings, the power of positivity and the power of women – even in the car business. Women buy 52% of all new cars sold in the U.S. they influence more than 85% of all new car purchases and are the fastest-growing segment of buyers for new and used cars. While Alan Mulally was reinventing the Ford Motor Company, Peggy got to work reinventing VILLA FORD. She unabashedly focused on making it a customer-friendly place where women feel comfortable. She hired kinder, gentler men and women who understand that today’s customers are more informed than ever before and that women are hugely influential in the buying process. Customers also appreciate our revamped Parts and Services Departments and Collision Center. Peggy also did thing to make VILLA FORD a good place to spend time, both for customers and coworkers. She insisted that VILLA FORD be welcoming, warm and a fun experience. This includes the Villa Café and even a grand piano. She instituted Smiley U Leadership Academy so co-workers could improve personally and professionally. She developed monthly Auto Care Clinics for customers and potential customers to make sure they protect their investment. She’s instituting women-focused empowerment seminars called WOW: Women On Wheels to help women de-mystify the car-buying and maintenance process. She even made an adjustment to her title. Yes, she’s President of VILLA FORD, but she is also CIO (Chief Inspirational Officer). Have these customer-friendly changes been effective? After Peggy’s first three months at the figurative wheel, VILLA FORD stopped losing money. It’s been a steady increase in revenue ever since – a true feat in this economy. The future is looking bright! The “feminine touch has big implications.” VILLA FORD’s recent WBE Certification (Women-Owned Businesses Enterprises) is an accreditation that opens the door to government contract bids and large corporate contracts. With 95% of the country’s 20,000 auto dealers belonging to the National Automobile Dealers Association being male, VILLA FORD with its lady leader is a rare breed. Since 1970, VILLA FORD has continually moved up the ranks of Ford stores to become one of the largest volume dealerships in the country! We consistently achieve distinguished records honored by the Ford Motor Company in recognition of progressive management, modern sales and service facilities, sound merchandising practices, high-quality standards and continuing interest in rendering superior service to Ford owners and non-Ford owners alike! Peggy Baldwin-Butler and her “cast of characters” at VILLA FORD are proud to be selling and maintaining the new generation of Ford vehicles, which are engineered to put safety, dependability and fuel efficiency first. You should be proud to be a part of the grand history of VILLA FORD. Villa Ford Employee Handbook 2/14/14 Page 10 Villa Ford's Values and Vision Statement "Our mission is to create a new 21st century role model for car dealerships that has customers and employees clamoring for our brand of business." Peggy Butler-Baldwin, President of Villa Ford Operating Philosophy: My Dad and Mom, Herb and Wanda Baldwin, launched Villa Ford in 1970. Since 2009 I've take the helm of my parents' business. I've become Villa Ford's President, and I'm dedicated to carrying on my parents' legacy. We, our whole "Villa Ford Family", are reinventing villa Ford and building the Villa Ford of the future, today. We are committed to serving our customers, co-workers, local businesses and our communities with the same "old-fashioned values' driven" business principles my Mom and Dad believed in ... AND we are pioneering a new way of doing the car business 21st century style. Our 5-Core Values - The Guiding Principles of Villa Ford: "FLISH" Family Happiness: Our strong family values create a sense of belonging, fellowship and community. Family happiness is reflected in both our professional and personal lives. Love: We genuinely care at Villa Ford. Compassion, empathy, respect, kindness and acceptance are not just nice words, - they are the cornerstones of our success. Our business culture and success since 1970 is the result of our commitment to personalized loving care. Customers can expect to feel secure, loved and supported. Integrity: We are committed to providing quality service and to being the best we can be. We are respected in the auto dealership industry for being innovative, responsible, loyal, and for conducting our business with high ethical standards.. Spirituality: We are committed to activating spirit - entrepreneurial, individual, organizational, and community. We do our best to9 insure that Villa Ford is known for its positive energy. We attract co-workers into our Villa Ford family who are FUN, spirited, enterprising, pioneering, courageous...and enjoy challenging experiences. Health: We support healthy businesses, healthy bodies, healthy relationships, healthy families, a healthy planet...and we are doing our part to insure that each person experiences a full sense of vitality - heart, body, mind and spirit. Purpose of This Employee Handbook This handbook is designed to acquaint you with VILLA FORD and to give you a reference to answer many of your questions regarding your employment with us. The contents of this handbook, however, constitute only a summary of the employee benefits, personnel policies, and employment regulations in effect at the time of publication. Other than the at-will agreement and agreement to arbitrate, this handbook should not be construed as creating any kind of “employment contract,” since the Dealership has the ability to add, change or delete wages, benefits, policies and all other working conditions as it deems appropriate without obtaining another person’s consent or agreement. As provided in the Employee Acknowledgment and Agreement, nothing in this handbook creates or is intended to create a promise or representation of continued employment. Employment at the Dealership is employment at-will and may be terminated at the will of either the Dealership or the employee. Your status as an “at-will” employee may not be changed except in writing signed by the President of the Dealership. This handbook shall supersede any and all prior handbooks, written documents or oral representations, issued by the Dealership, that contradict the at will nature of your employment. Villa Ford Employee Handbook 2/14/14 Page 11 Our Customer Relations Philosophy Our most important goal is customer satisfaction. Customers are the most important people in our business. Let’s face it -- without them we would not be here. Therefore, please observe the following RULES FOR SUCCESS: 1. CUSTOMERS are the most important people in our business, whether we are dealing with them in person or over the telephone. 2. CUSTOMERS do not depend on us. We depend on them. 3. CUSTOMERS are not an interruption of our work. They are the purpose for our work. 4. CUSTOMERS favor us with their patronage. We are not doing them a favor by serving them. 5. CUSTOMERS are a part of our business. They are not outsiders. 6. CUSTOMERS are not cold statistics. They are human beings with feelings and emotions like our own. 7. CUSTOMERS are not someone with whom we argue or match wits. 8. CUSTOMERS are people who bring us their wants. It is our job to fill those wants. 9. CUSTOMERS are deserving of the most courteous and attentive treatment we can give them. 10. CUSTOMERS ARE THE LIVELIHOOD OF OUR BUSINESS. Villa Ford Employee Handbook 2/14/14 Page 12 Let’s Communicate Employee Relations Philosophy We at VILLA FORD are dedicated to continuing what we believe to be an excellent employee relations program. We attempt to maintain good working conditions, competitive wages and benefits, open communications, and employee involvement. Please tell us if you have a problem. We think you’ll find our dealership is receptive to your concerns. We are always looking for ways to make this a better place to work. If You Have a Problem If you have any questions concerning your job or if encounter any work-related problems, we encourage you to discuss your questions or problems with us. We cannot address any of your questions, concerns or problems unless we know about them. If you have a problem, please talk with your immediate supervisor as soon as possible. Your immediate supervisor is the person responsible for what goes on in your immediate work area and may be in the best position to help you. If you prefer not to speak with your immediate supervisor, or if you feel your immediate supervisor cannot or has not satisfactorily resolved the problem, please ask to speak with the Parts and Service Director or the General Sales Manager. They are available to assist you and work on solving your problem at any time. Finally, if you still feel the need to speak to other members of the management, we encourage you to speak to the General Manager. VILLA FORD takes all concerns and problems brought to its attention seriously. We will work to address your concern or resolve your problem as soon as possible under the circumstances. You are encouraged to utilize this procedure without fear of reprisal. Villa Ford Employee Handbook 2/14/14 Page 13 What You Can Expect From Us Introductory Period For every new employee, the first ninety (90) days of employment is an introductory period. During this first ninety (90) days, your job performance, attendance, attitude and overall interest in your job will be observed. During this period, you may not be eligible for certain Dealership benefits, such as holiday pay, vacation pay, employee discounts, and insurance coverage. Employees who fail to demonstrate the commitment, performance and attitude expected by VILLA FORD may be terminated at any time during the introductory period. However, completion of the introductory period does not change or alter the “at-will” employment relationship. You continue to have the right to terminate your employment at any time, with or without cause or notice, and the Dealership has a similar right. If, as a result of an excused absence during your introductory period or for other reasons identified by management, VILLA FORD may choose to extend your introductory period as necessary to give you a further opportunity to demonstrate your ability to do the job. If your introductory period is extended, you will be notified. Equal Employment Opportunity VILLA FORD is an equal opportunity employer. Employment decisions are based on merit and business needs, and not on race, color, citizenship status, national origin, ancestry, gender, sexual orientation, age, weight, religion, creed, physical or mental disability, marital status, veteran status, political affiliation or any other factor protected by law. If you believe that you have been treated in a manner not in accordance with these policies, please notify the Dealership immediately, either by speaking to the Office Manager or the General Manager. The Dealership takes all complaints of discrimination seriously. You are encouraged to utilize this procedure without fear of reprisal. VILLA FORD recognizes that employees with disabilities may need reasonable accommodations in order to perform their essential job functions. Any employee who is disabled and needs an accommodation must advise his or her supervisor. Upon verification of the disability and the accommodation needed, VILLA FORD will explore with the employee what accommodation may be effective and its reasonableness. The employee has an obligation to cooperate with VILLA FORD in this process, which may include authorizing VILLA FORD to communicate with the employee’s healthcare providers. Villa Ford Employee Handbook 2/14/14 Page 14 Policy Against Harassment The Dealership is committed to providing a work environment that is free of unlawful harassment. In furtherance of this commitment, the Dealership strictly prohibits all forms of unlawful harassment, which includes, but is not limited to, harassment on the basis of race, religion, color, sex, gender identity, sexual orientation, national origin, ancestry, citizenship status, uniform service member status, marital status, pregnancy, age, medical condition, disability or any other category protected by applicable state or federal law. The Dealership’s policy against harassment applies to all employees of the Dealership, including supervisors and managers. The Dealership prohibits managers, supervisors and employees from harassing co-workers as well as the Dealership’s customers, vendors, suppliers, independent contractors and others doing business with the Dealership. In addition, the Dealership prohibits its customers, vendors, suppliers, independent contractors and others doing business with the Dealership from harassing our employees. Violation of this policy will subject an employee to disciplinary action, up to and including immediate termination. Additionally, under California law, employees may be held personally liable for harassing conduct that violates the California Fair Employment and Housing Act. Examples of Prohibited Sexual Harassment: Sexual harassment includes a broad spectrum of conduct including harassment based on gender, transgender and sexual orientation (meaning one’s heterosexuality, homosexuality, or bisexuality). By way of illustration only, and not limitation, some examples of unlawful and unacceptable behavior include: unwanted sexual advances; offering an employment benefit (such as a raise or promotion or assistance with one’s career) in exchange for sexual favors, or threatening an employment detriment (such as termination, demotion, or disciplinary action) for an employee’s failure to engage in sexual activity; visual conduct, such as leering, making sexual gestures, displaying sexually suggestive objects or pictures, cartoons or posters; verbal sexual advances, propositions, requests or comments; verbal abuse of a sexual nature, graphic verbal commentaries about an individual’s body, sexually degrading words used to describe an individual, suggestive or obscene letters, notes or invitations; physical conduct, such as touching, assault, impeding or blocking movement; Villa Ford Employee Handbook 2/14/14 Page 15 physical or verbal abuse concerning an individual’s actual sex or the actual perception of the individual’s sex; and verbal abuse concerning a person’s characteristics such as vocal pitch, facial hair or the size or shape of a person’s body, including remarks that a male is too feminine or a woman is too masculine. Examples of What Constitutes Prohibited Harassment: In addition to the above listed conduct, the Dealership strictly prohibits harassment concerning race, color, religion, national origin, age or other protected characteristic. By way of illustration only, and not limitation, prohibited harassment concerning race, color, religion, national origin, age or other protected characteristic includes: slurs, epithets, and any other offensive remarks; jokes, whether written, verbal, or electronic; threats, intimidation, and other menacing behavior; other verbal, graphic, or physical conduct; and other conduct predicated upon one or more of the protected categories identified in this policy. If you have any questions about what constitutes harassing behavior, ask your supervisor or another member of management. Harassment of our customers, employees of our customers, vendors, suppliers or independent contractors by our employees is also strictly prohibited. Such harassment includes the types of behavior specified in this policy, including sexual advances, verbal or physical conduct of a sexual nature, sexual comments and genderbased insults. Any such harassment will subject an employee to disciplinary action, up to and including immediate termination. What Should You Do If You Feel You Are Or Have Been Harassed If you feel that you are being harassed by another employee, supervisor, manager or third party doing business with the Dealership, you should immediately contact the Parts and Service Director, General Manager or the President. In addition, if you observe harassment by another employee, supervisor, manager or nonemployee, please report the incident immediately to the Parts and Service Director, General Manager or the President. Appropriate action will also be taken in response to violation of this policy by any non-employee. Your notification of the problem is essential to us. We cannot help resolve a Villa Ford Employee Handbook 2/14/14 Page 16 harassment problem unless we know about it. Therefore, it is your responsibility to bring your concerns and/or problems to our attention so that we can take whatever steps are necessary to address the situation. The Dealership takes all complaints of unlawful harassment seriously and will not penalize you or retaliate against you in any way for reporting a harassment problem in good faith. All complaints of unlawful harassment which are reported to management will be investigated as promptly as possible and corrective action will be taken where warranted. The Dealership prohibits employees from hindering internal investigations and the internal complaint procedure. All complaints of unlawful harassment which are reported to management will be treated with as much confidentiality as possible, consistent with the need to conduct an adequate investigation. Employee Classification If you have any questions concerning your employee classification or the benefits for which you qualify, please consult the Office Manager. Full-Time Employees Full-time employees are employees who successfully complete the introductory period and are normally scheduled to work at least thirty-two (32) hours per week, as determined by VILLA FORD in its sole discretion. Part-Time Employees Part-time employees are employees who successfully complete the introductory period and are normally scheduled to work fewer than thirty-two (32) hours per week, as determined by VILLA FORD in its sole discretion. Temporary Employees Temporary employees are employees who are employed to work on special projects for short periods of time, or on a “fill-in” basis. These positions are not intended to be a part of continuing operations. The employment status of temporary employees will not be changed due to an extension of employment in excess of that originally planned. Temporary employees are not eligible for benefits. Villa Ford Employee Handbook 2/14/14 Page 17 Work Schedule The following reflects the hours of work for the various departments at VILLA FORD. However, individual schedules may vary. Each employee is responsible for verifying their personal schedule for each week. Sales Department Hours: Monday-Saturday Sunday 8:30 a.m. to 9:00 p.m. 10:00 a.m. to 8:00 p.m. Service Department Hours: Monday-Saturday Sunday 7:00 a.m. to 7:00 p.m. Closed Parts Department Hours: Monday-Saturday Sunday 7:00 a.m. to 7:00 p.m. Closed Body Shop Hours: Monday-Friday Saturday Sunday 7:30 a.m. to 5:30 p.m. 8:00 a.m. to 1:00 p.m. Estimates and appointments only closed Business Office Hours: Monday-Friday Saturday & Sunday Villa Ford Employee Handbook 8:00 a.m. to 5:00 p.m. Closed 2/14/14 Page 18 Meal Periods Nonexempt employees who work in excess of five (5) hours in a day are entitled to an uninterrupted thirty (30) minute duty-free meal period. An employee who works over ten (10) hours in a day is entitled to a second uninterrupted thirty (30) minute dutyfree meal period. Employees are completely relieved of their job responsibilities during their meal periods. For this reason, unless there is a valid written agreement for an onduty meal period, employees must accurately account to the employer for meal breaks by either 1) clocking in and out for their meal periods, or 2) recording the beginning and ending time of the meal period on their timesheet every day and signing the timesheet. Waiver of Meal Period. Nonexempt employees may waive their meal periods only under the following circumstances: Nonexempt employees working a shift of less than six (6) hours can elect to waive their meal period. Employees working in excess of ten (10) hours in a day may waive their second meal period only if they take their first meal period and they do not work more than twelve (12) hours that day. Nonexempt employees working in excess of twelve (12) hours in a day are not permitted to waive the second meal period. Anytime an employee elects to waive a meal period they must submit a written request and receive prior written authorization from the Office Manager or the General Manager. Employees may not waive meal periods to shorten their work day or to accumulate meal periods for any other purpose. No Dealership manager or supervisor is authorized to instruct or approve an employee’s wish to forego a meal or rest period. Employees should immediately report a manager’s or supervisor’s instruction to skip a meal period to the Office Manager or the General Manager. On Duty Meal Period. In limited situations, certain designated employees may be asked to work an on-duty meal period due to the nature of the employee’s duties. Employees are not permitted to take an on-duty meal period, unless the General Manager directs you to take an on-duty meal period due to the nature of your job duties and you agree to an on-duty meal period in writing.. Employees must fill out a form provided by management and get it approved before taking an on-duty meal period. Rest Periods Nonexempt employees are authorized and permitted to take a ten (10) minute paid rest period for shifts three and one-half (3½) to six (6) hours in length, twenty (20) Villa Ford Employee Handbook 2/14/14 Page 19 minutes for shifts more than six (6) hours up to ten (10) hours, 30 minutes for shifts of more than ten (10) hours up to fourteen (14) hours, and so on. Employees are authorized and permitted to take a rest break in the middle of each work period, unless practical considerations render it unfeasible. Rest periods are counted as hours worked, and thus, employees are not required to record their rest periods on their timesheets or time cards. Rest periods may not be waived to shorten your workday or be accumulated for any other purpose. Rest periods may not be combined with meal periods. Lactation Break The Dealership will provide a reasonable amount of break time to accommodate a female employee’s need to express breast milk for the employee’s infant child. The break time should, if possible, be taken concurrently with other break periods already provided. Non-exempt employees should clock out for any time taken that does not run concurrently with normally scheduled rest periods, and such time generally will be unpaid. The Dealership will also make a reasonable effort to provide the employee with the use of a room or other location in close proximity to the employee’s work area, for the employee to express milk in private. Employees should notify their immediate supervisor or the Office Manager to request time to express breast milk under this policy. Dealership Benefits The Dealership provides the following benefits to eligible employees. The Dealership reserves the right to terminate or modify these plans at any time, for any reason, with or without notice to employees. Your Pay We distribute paychecks on the 5th and 20th of each month. Commission checks are distributed on the 10th of each month or on the immediately following work day. Each employee is responsible for picking up his or her own paycheck on the normally scheduled payday. If the scheduled day falls on a Sunday or holiday, you will be paid on the following business day. If it falls on a Saturday, we will make every effort to pay you on the preceding business day; otherwise, payment will be made on the following business day. Any questions about your pay amount or deductions should be brought to the attention of the Office Manager immediately. VILLA FORD does not cash employee payroll checks. Employees are expected to cash their pay checks as soon as possible so VILLA FORD’S banking records can be kept current. Villa Ford Employee Handbook 2/14/14 Page 20 Paid Holidays After completion of the introductory period, full-time employees, with the exception of managers and commissioned-only salespeople, will receive the following days off with pay any time they fall on a normal workday: New Year's Day (January 1)* Easter Sunday (March/April)* Memorial Day (May) Fourth of July Labor Day (September) Thanksgiving Day (November)* Christmas Day (December 25)* *The sales department is only closed for those holidays marked with an asterisk and open for the rest of the year. Holiday pay will be given to an eligible salesperson who would otherwise have been scheduled to work on these days. If a holiday falls during a scheduled day off, or on a scheduled vacation, an employee may, with the prior approval of VILLA FORD, extend his or her scheduled day off or scheduled vacation one (1) day for each holiday falling within the vacation period or on a scheduled day off. The rate for holiday pay will be based solely on the employee’s regular straight rate of pay at the time of the holiday for hourly employees. Sales representatives and technicians shall be paid at the established holiday rate of pay for each position, subject to change or complete rescission pursuant to the Dealership’s at-will policy. To be eligible for holiday pay, you must work your last scheduled day before the holiday and the first scheduled day after the holiday. Holiday pay does not count as "hours worked" for purposes of calculating an employee's entitlement to overtime during the week in which the holiday occurs. Salaried exempt employees will receive their regular salary, regardless of whether they work on a holiday. Paid Vacation Villa Ford has historically given paid vacation for employees from 1-3 weeks per year, depending on the years of employee service. This “earned” pay at the end of each anniversary year will be paid to each employee either in a lump sum on their employment “Anniversary Date”, or paid as specific vacation days taken. Employees are permitted to choose whether to actually take these paid days as actual vacation or not. Vacation day timekeeping will still be required since no employee may take vacation time off that exceeds the number of days “earned” as vacation pay. As such, department managers are responsible for proper vacation day recordkeeping/reporting within their departments. Villa Ford Employee Handbook 2/14/14 Page 21 Medical Insurance We offer medical insurance coverage for our eligible employees, beginning on the first day of the month after completion of your ninety (90) day introductory period. The employee will pay a specific dollar amount each month for this insurance, depending on the level of coverage chosen. Remaining costs of insurance coverage are paid by the Dealership. The cost to the employee of this coverage is subject to change. Consult the applicable plan document for all information regarding eligibility, coverage and benefits. It is the plan document that ultimately governs your entitlement to benefits. Life Insurance We offer life insurance coverage for our eligible employees, beginning on the first day of the month after completion of your ninety (90) day introductory period. The Dealership pays the entire cost of this insurance. Consult the applicable plan document for all information regarding eligibility, coverage and benefits. It is the plan document that ultimately governs your entitlement to benefits. State Mandated Insurance Benefit Programs State Disability Insurance By state law, we are required to deduct a certain amount from your pay to provide State Disability Insurance (S.D.I.). S.D.I. benefits are payable when you cannot work because of illness or injury unrelated to your employment. For information concerning these benefits, contact the Employment Development Department of the State of California, which administers the S.D.I. program. Family Temporary Disability Insurance In addition, we are also required to withhold a certain percentage of your wages pursuant to the Family Temporary Disability Insurance Act (“FTDI”) in order to fund the Paid Family Care Leave Program. FTDI is another disability benefits program that is administered by California’s Employment Development Department which allows eligible employees to receive compensation for lost wages, for up to six (6) weeks in a twelve month period, if you take time off work to provide care for a seriously ill child, spouse, parent, or domestic partner, or to bond with a new child. Despite its name, the FTDI is not a “leave” program; it does not provide you with any entitlement to leave beyond that to which you are entitled pursuant to Dealership policy. You will be required to use up to two weeks of accrued vacation prior to receiving FTDI benefits during any twelve month period. You may also elect to use your sick leave during receipt of FTDI benefits. You must notify the Dealership if you intend to file for FTDI benefits. Villa Ford Employee Handbook 2/14/14 Page 22 All claims for FTDI benefits must be submitted directly to the Employment Development Department of the State of California. The Employment Development Department ultimately determines whether you receive FTDI benefits based on the serious health condition of certain family members that require your care. You may not be eligible for FTDI benefits if you are receiving State Disability Insurance, Unemployment Compensation Insurance, or Workers’ Compensation benefits. Social Security The Federal Insurance Contributions Act, which is better known as the Social Security Act, requires the Dealership to deduct a percentage of your pay, match it with an equal amount from the Dealership and send it to the government to be deposited with the Social Security Administration. If you are not familiar with the retirement and disability benefits provided under Social Security, check with your local Social Security Administration office for a more complete explanation. Workers’ Compensation Insurance The Dealership pays the entire amount of the Workers’ Compensation insurance premium, which provides benefits to employees who experience injury or illness that arises out of the course and scope of your employment. Benefit entitlements are governed by law, but it is essential that you report all work-related accidents, injuries, and illnesses immediately. You should be aware that California law makes it a crime to knowingly file a false or fraudulent claim for Workers’ Compensation benefits, or to submit knowingly false or fraudulent information in connection with any Workers’ Compensation claim. Violation of this law is punishable by imprisonment of up to five years, a fine of up to $50,000 or both. Filing a false or fraudulent Workers’ Compensation claim is also a violation of Dealership policy, and will result in disciplinary action, up to and including immediate termination. 401(k) Retirement Savings Plan The Dealership offers a 401(k) Retirement Savings Plan to all eligible employees. The terms and conditions of the 401(k) Retirement Savings Plan are controlled by the applicable plan document. Contact the Office Manager for more information regarding the 401(k) Retirement Savings Plan. IRS Section 125 -- Cafeteria Plan We are able to offer eligible employees the ability to pay for certain insurance coverage with “before tax” dollars rather than “after tax” dollars. As you become eligible for these benefits and you elect to cover yourself and/or your family, you will become eligible to participate in our Section 125 -- Cafeteria Plan. The terms and conditions of the Plan are controlled by the applicable plan document. A plan summary will be made Villa Ford Employee Handbook 2/14/14 Page 23 available to you if you enroll for insurance. Employee Discounts All employees are encouraged to use VILLA FORD products and services. Depending on availability and at the sole discretion of the appropriate Department Manager, the following discounts are available to full-time employees who have been with the Dealership for at least ninety (90) days. These discounts are available only to our employees for their personal use, which means eligible employees may purchase products and services at a discounted price for only their vehicle(s) and their spouse’s vehicle(s). Employees may not purchase products and services at a discount on behalf of friends and/or family members, nor may friends and/or family members use an employee’s discount. Employee discounts do not apply when an insurance company or third party is paying for the service or part. Under no circumstances may these discounts be used for personal profit or to compete with VILLA FORD. Parts and Accessories – The employee pays cost plus 10%. Service or Body Work – Employees are eligible to receive a 25% discount on labor. Cost plus 10% will be charged on parts. The maximum body shop discount is $500.00 on insurance paid repairs. All repairs on employees’ vehicles will be recorded on a normal repair order with the above discounts. Again, discounts are offered only for an employee’s personal vehicle or his or her household family member’s vehicle. In most cases, we will work only on Ford cars and trucks in our shop. Any exception to this must be cleared with the Service Manager in advance. New Vehicles – As long as the Dealership maintains its Blue Oval certified status, employees are eligible to purchase new vehicles on the “D” plan. The “D” plan allows employees to purchase up to 2 new vehicles per calendar year for themselves and/or immediate relatives. Dealership employees must be enlisted in STARS3 and two new products per calendar year may be purchased/leased. Please contact the Sales Manager to find out more about the “D” plan. In the event that Ford Motor Company changes and/or rescinds this plan, the Dealership will revert to its former policy of 2% over net cost plus preparation costs, excluding newly introduced models and specialty vehicles. Used Vehicles – The price will be determined according to whether the car is a wholesale or retail vehicle. This determination will be solely determined by the Used Car Manager. For wholesale vehicles, the employee pays $200 over cost, plus smog and safety costs. For retail vehicles, the employee pays $500 over cost, plus smog and safety costs. Used retail vehicles must have been available for retail sale for thirty (30) Villa Ford Employee Handbook 2/14/14 Page 24 days for this price to be in effect. Suggestion Program The Dealership wants and needs your ideas on how to more efficiently and profitably run the Dealership. If you have any suggestions that you think will add to our effectiveness, or that you think will reduce expenses, please present the idea in writing to your Manager. A cash bonus may be available to the person whose idea is used, in the sole discretion of the Dealership President. Training and Educational Assistance In conjunction with its manufacturers, VILLA FORD may provide periodic training courses for eligible employees. In addition, eligible employees may be given the opportunity to attend other training programs that will enable them to improve their skills and qualify for advancement. Service Technicians should consult the Service Manager for information on the rate of pay for time spent attending an approved training course. This rate is subject to change without notice. Employees should contact the Office Manager or the General Manager before registering for any training or other educational course to learn whether the program will be covered under the Dealership’s policy. The Dealership is not responsible for the payment or reimbursement of any costs or expenses associated with an employee’s attendance at a lecture, training program or other educational program, if the employee fails to receive advanced written authorization and the employee fails to successfully complete the course. Membership in professional organizations wherein the employee receives benefits that can be directly applied to improving job performance may be reimbursed by VILLA FORD at its sole discretion, provide the employee participates in the organization and receives prior authorization for the reimbursement from the General Manager. Civic Duties VILLA FORD encourages each of its employees to accept his or her civic responsibilities. We are a good corporate citizen, and we are pleased to assist you in the performance of your civic duties. Jury Duty: If you receive a call to jury duty, please notify your supervisor immediately so he or she may plan the department’s work with as little disruption as possible. Unless otherwise required by state or federal law, time spent serving on jury duty will be unpaid. Employees who are released from jury service before the end of their regularly Villa Ford Employee Handbook 2/14/14 Page 25 scheduled shift or who are not asked to serve on a jury panel are expected to call their supervisor as soon as possible and report to work if requested. Witness Duty: If you receive a subpoena to appear in court, please notify your supervisor immediately. You are expected to return to work as soon as your service as a witness is completed. Voting: If you would like to vote for a public election, but do not have sufficient time to vote during non-work hours, you may arrange to take up to two hours off from work with pay to vote. To receive time off for voting, you must obtain advanced approval from your supervisor and must take the time off to vote either at the beginning or end of your work shift. The VILLA FORD reserves the right to request a copy of your voter’s receipt following any time off to vote. Leave for Victims of Felony Crimes To the extent required by law, employees who are victims of certain, specified felony crimes, or who are immediate family members of a victim, a registered domestic partner of a victim, or the child of a registered domestic partner of a victim, may receive unpaid time off from work to attend judicial proceedings related to that crime. To take this leave, the employee must provide the Dealership in advance with a copy of the notice of the proceeding. If advanced notice is not possible, the employee must provide the Dealership with appropriate documentation evidencing the employee’s attendance at the judicial proceeding upon returning back to work. Leave for Victims of Domestic Violence & Sexual Assault To the extent required by law, employees who are victims of domestic violence or of sexual assault may receive unpaid leave to: 1) obtain services from a domestic violence shelter or rape crisis center; 2) seek medical attention for injuries caused by domestic violence or sexual assault; 3) obtain psychological counseling for the domestic violence or sexual assault; or 4) take action, such as relocation, to protect against future domestic violence or sexual assault. To take this leave, the employee must provide the Dealership with advance notice of the leave. If advanced notice is not possible, the employee must provide the Dealership with the following certification upon returning back to work: 1) a police report showing that the employee was a victim of domestic violence or sexual assault; or 2) a court order protecting the employee from the perpetrator or other evidence from the court or prosecuting attorney that the employee appeared in court; or 3) documentation from a medical professional, domestic violence or sexual assault victim advocate, health care provider, or counselor showing that the employee’s absence was due to treatment for injuries from domestic violence or sexual assault. The employee may choose to use any accrued vacation or sick leave time, if available, for an absence described above. Villa Ford Employee Handbook 2/14/14 Page 26 Unpaid Family School Partnership Leave VILLA FORD encourages its employees to be involved in the education of their children. Parents, guardians, and grandparents with custody of school age children (K12) are eligible for up to forty (40) hours of unpaid leave each year, not to exceed eight hours in any calendar month of the year, to participate in school-related activities of their children, provided the following criteria are met: The employee must personally notify his/her supervisor and the Office Manager as soon as the employee learns of the need for the planned absence. Employees will be denied time off if they do not provide their supervisors with adequate notice. The Dealership may require verification of the school-related activity. Employees are requested to schedule individually-scheduled activities, such as parent/teacher conferences, during non-work hours. Employees who request leave for unauthorized purposes will be subject to discipline, up to and including termination. Pregnancy Disability Leave Of Absence Female employees may take a leave of absence up to four (4) months for disabilities relating to pregnancy, childbirth or related medical conditions. Employees who are granted leaves for pregnancy will be returned to their same or similar position to the extent required by state law. Upon the advice of your health care provider, you may also be entitled to reasonable accommodation, to the extent required by law, for conditions related to pregnancy, childbirth or related medical conditions. You should promptly notify the Office Manager of the need for a reasonable accommodation. In addition, a transfer to a less strenuous or hazardous position or to less strenuous or hazardous duties may be available pursuant to your request, if such a transfer is medically advisable. If you are affected by pregnancy or a related medical condition, please notify the Dealership as soon as reasonably possible as the Dealership cannot provide you with reasonable accommodation unless it knows of the need for such accommodation. Prior to the start of the leave, the Dealership will require a statement from your health care provider indicating that you are unable to perform your job and the anticipated date of your return. In the event your leave exceeds the anticipated date of return, it is your responsibility to provide further verification from your health care provider that you are unable to perform your job and the revised anticipated date of return. Depending on your eligibility, medical insurance may be continued during the leave in accordance with the applicable plan document, COBRA, or provisions of federal/state law relating to unpaid medical leave. Family and Medical Leave Act/California Family Rights Act Eligible employees may take up to 12 workweeks of unpaid, job-protected leave under the Family and Medical Leave Act and the California Family Rights Act (“FMLA/CFRA”) in a 12-month period for specified family and medical reasons. Villa Ford Employee Handbook 2/14/14 Page 27 Employee Eligibility To be eligible for FMLA/CFRA leave, you must: Have worked at least 12 months for the Dealership – employees who do not have at least 12 months of service before taking leave are not eligible for FMLA/CFRA leave; Have worked at least 1,250 hours for the Dealership over the preceding 12 months; and Work at a location where there are at least 50 employees within 75 miles. Military Leave of Absence The FMLA also provides for military related leave. The eligibility requirements are the same as those listed above. Employees who require time off from work to fulfill military duties will be treated in accordance with applicable requirements of state and federal laws. If you return from fulfilling your National Guard or Reserve military obligation, you will be credited with the hours of service that would have been performed but for the period of military service in determining the 1,250 hours of service. You are also expected to notify the Dealership of upcoming military duty by providing your supervisor with a copy of your orders as soon as possible Conditions Triggering Leave FMLA/CFRA leave may be taken for the following reasons: Birth of a child, or to care for a newly-born child; Placement of a child with the employee for adoption or foster care; To care for an immediate family member (spouse, child, or employee’s parent) with a serious health condition; or Because of the employee’s serious health condition which makes the employee unable to perform the functions of the employee’s job. Duration of Leave Eligible employees may receive up to 12 workweeks of unpaid leave during any “rolling” 12- month period, measured backward from the date of any FMLA/CFRA leave. Villa Ford Employee Handbook 2/14/14 Page 28 FMLA/CFRA leave for the birth or placement of a child for adoption or foster care must be concluded within 12 months of the birth or placement. Leave for female employees for disabilities associated with pregnancy or childbirth is also available, as described in the Pregnancy Disability Leave of Absence Policy. We encourage employees to see their supervisor regarding FMLA/CFRA leave related to pregnancy or childbirth, as special rules apply. You may take FMLA/CFRA leave intermittently, or by reducing your normal weekly or daily work schedule, when medically necessary for your own or immediate family member’s serious health condition. Intermittent leave for birth of a child, to care for a newly-born child or for placement of a child for adoption or foster care may be available, but may be subject to additional restrictions. Employees who require intermittent leave or reduced-schedule leave must try to schedule their leave so that it will not disrupt the Dealership’s operations. Employee Benefits During Leave Depending on the purpose of your leave request, you may choose (or the Dealership may require you) to use accrued paid leave, if available, concurrently with some or all of the FMLA/CFRA leave. In addition, you will not be eligible to accrue seniority or benefits, including vacation and holidays, during any period of an FMLA/CFRA leave. Maintenance of Health Benefits If you and/or your family participate in our group health plan, the Dealership will maintain coverage under the plan during the first twelve weeks of your FMLA/CFRA leave on the same terms as if you had continued to work. If applicable, you must make arrangements to pay your share of health plan premiums while on leave and failure to pay your portion, if any, of the premium may result in loss of coverage. In some instances, the Dealership may recover premiums it paid to maintain health coverage or other benefits for an employee and family. If you have any questions regarding your health benefit rights during FMLA/CFRA leave, please contact a Human Resources professional. Job Restoration Upon returning from FMLA/CFRA leave, you will normally be restored to your original job or to an equivalent job with equivalent pay, benefits, and other employment terms and conditions. However, you will have no greater right to job restoration than if you had been actively working. Notice and Medical Certification When seeking FMLA / CFRA leave, you must provide: You must tell the Dealership of your request for family care, medical or Villa Ford Employee Handbook 2/14/14 Page 29 military leave as soon as they are aware of the need for such leave. For foreseeable family care, medical and military caregiver leave, you must provide thirty (30) calendar days’ advance notice to the Dealership of the need for such leave, if possible. Please use the form provided by management to ensure that all notice requirements have been met. For events that are unforeseeable 30 days in advance, you must notify the Dealership as soon as is practicable and generally must comply with the Dealership’s normal call-in or notice procedures. If you fail to give 30 days’ notice of the need for a clearly foreseeable leave, and there is no reasonable excuse for the delay, the Dealership may require that you delay taking FMLA/CFRA leave until 30 days after the date of the notice. Medical certification supporting the need for leave due to a serious health condition affecting you or an immediate family member must be returned before your leave begins, or if not possible, within fifteen (15) days of the Dealership’s request to provide the certification. If you fail to do so, we may delay the commencement of your leave or withdraw any designation of FMLA/CFRA leave. If you commence a leave without submitting a request medical certification in a timely fashion, your leave of absence would be unauthorized, subjecting you to discipline up to and including termination. Additional medical opinions and periodic re-certifications may also be required; Periodic reports as deemed appropriate during the leave regarding your status and intent to return to work; and Medical certification of fitness for duty before returning to work, if the leave was due to your serious health condition. Failure to comply with the foregoing requirements may result in delay or denial of leave. Limited Nature of This Policy This policy is intended to provide only those leave benefits and protection required by FMLA / CFRA. Other Disability Leaves In addition to medical or pregnancy-related disability leaves described above, you may take a temporary disability leave of absence if necessary to reasonably accommodate a workplace injury or a disability under the ADA or the FEHA. Any Villa Ford Employee Handbook 2/14/14 Page 30 disability leave under this section will run concurrently with any medical leave to which the employee is entitled to under FMLA/CFRA or during a military leave of absence. Disability leaves under this section will be unpaid. Employees taking disability leave must comply with the Family Care, Medical and Military Family Leave provisions regarding notice and medical certification. For the purpose of applying these provisions, a disability leave will be considered to be a medical leave. If a disability leave under this section extends beyond 12 weeks in a 12-month period, the employee will not be entitled to any continued employer contributions towards any employee benefit plan unless otherwise required by law. An employee, however, may elect to continue participating in such benefit plans, at the employee's own expense, to the extent permitted by such plans. The duration of a leave under this section shall be consistent with applicable law, but in no event shall the leave extend past the date on which an employee becomes capable of performing the essential functions of his or her position, with or without reasonable accommodation. For a full explanation of leave duration and reinstatement rights, employees should contact a Human Resources professional. Bereavement Leave Our full-time employees are eligible to receive up to four (4) days of unpaid bereavement leave in the event they miss regularly scheduled work days due to the death or funeral of a member of the employee’s immediate family. Your immediate family includes your spouse, children, stepchildren, parents, grandparents, grandchildren, brother or sister, your spouse’s parents, and any other relative permanently residing in the same household. An employee who is notified of a death in his or her immediate family while at work will be paid for the remainder of the scheduled hours that day. The four-day eligibility for unpaid bereavement leave will not commence until the next regularly scheduled work day which is lost. All time off in connection with the death of an immediate family member, as defined above, should be scheduled with your supervisor. An employee may use any available earned unused vacation benefit in lieu of this unpaid bereavement leave. What We Expect of You Dealership Policies This section of your handbook discusses your responsibilities to VILLA FORD as an employee. Please thoroughly familiarize yourself with these policies and apply them Villa Ford Employee Handbook 2/14/14 Page 31 in your work. The result of your effort will be a more efficient, productive and pleasant atmosphere for you, your co-workers and our customers. The following policies focus on basic rules that may not be violated under any circumstances. Violation of any of these basic rules, the policies in this handbook, or any other policy of the Dealership may lead to discipline, up to and including immediate termination. Obviously, this list is not all inclusive and there may be other circumstances for which employees may be disciplined, up to and including immediate termination. If you have any questions about these basic rules, or what we expect of you as one of our employees, please discuss them with your supervisor. These rules do not alter the at-will nature of your employment. You have the right to terminate your employment at any time, with or without cause or notice, and the Dealership has a similar right. Absenteeism and Tardiness Each of our employees plays an important role in getting the day’s work done. Therefore, each employee is expected to be at his or her work station on time each day and to remain there throughout his or her scheduled hours. Absenteeism or tardiness, even for good reasons, is disruptive of our operations and interferes with our ability to satisfy our customers’ needs. Excessive absenteeism or tardiness, excused or unexcused, can result in discipline, up to and including termination. If you are going to be late or absent from work for any reason, you must personally notify your supervisor as far in advance as possible so that proper arrangements can be made to handle your work during your absence. Of course, some situations may arise in which prior notice cannot be given. In those circumstances, you are expected to notify your supervisor as soon as possible. Leaving a message does not qualify as notifying your supervisor -- you must personally contact your supervisor. If you are required to leave work early, you must also personally contact your supervisor and obtain his/her permission. When absence is due to illness, the Dealership may require appropriate medical documentation Alcohol and Drug Policy Purpose Alcohol and drug abuse ranks as one of the major health problems in the United States. Our employees are our most valuable resource, and their safety and health is of paramount concern. We are committed to providing a safe working environment to protect our employees and others; to provide the highest level of service; and to minimize the risk of accidents and injuries. Villa Ford Employee Handbook 2/14/14 Page 32 General Policy Each VILLA FORD employee has a responsibility to co-workers and the public to deliver services in a safe and conscientious manner. Continuing research and practical experience have proven that even limited quantities of narcotics, abused prescription drugs or alcohol can impair your reflexes and judgment. This impairment, even when not readily apparent, can have catastrophic results. For these reasons, we have adopted a policy that all employees must report to work and remain completely free from the presence of drugs or under the influence of alcohol. Drug Use/Distribution/Possession/Impairment All employees are prohibited from manufacturing, cultivating, distributing, dispensing, possessing or using illegal drugs or other unauthorized or mind-altering or intoxicating substances while on VILLA FORD property (including parking areas and grounds), or while otherwise performing their work duties away from VILLA FORD. Included within this prohibition are lawful controlled substances, which have been illegally or improperly obtained. This policy does not prohibit the possession and proper use of lawfully prescribed drugs taken in accordance with the prescription. Employees are also prohibited from having any such illegal or unauthorized controlled substances in their system while at work, and from having excessive amounts of otherwise lawful controlled substance in their systems. This policy does not apply to the authorized dispensation, distribution or possession of legal drugs where such activity is a necessary part of an employee’s assigned duties. Alcohol Use/Distribution/Possession/Impairment All employees are prohibited from distributing, dispensing, possessing or using alcohol while at work or on duty. Furthermore, off-duty alcohol use, while generally not prohibited by this policy, may not interfere with an employee’s ability to perform the essential functions of his/her job. Prescription Drugs The proper use of medication prescribed by your physician is not prohibited; however, we do prohibit the misuse of prescribed medication. Employees’ drug use may affect their job performance, such as by causing dizziness or drowsiness. Employees may disclose such prescriptions on the request form at the drug testing facility. It is the employee’s responsibility to determine from his/her physician whether a prescribed drug may impair job performance. Notification of Impairment It shall be the responsibility of each employee who observes or has knowledge of another employee in a condition which impairs the employee in the performance of Villa Ford Employee Handbook 2/14/14 Page 33 his/her job duties, or who presents a hazard to the safety and welfare of others, or is otherwise in violation of this policy, to promptly report that fact to his/her immediate supervisor. Who is Tested VILLA FORD shall conduct drug tests in the following circumstances: a. Application for Employment. Job applicants must submit to a drug test. Refusal to submit to a drug test or a positive confirmed drug test may be used as a basis for refusal to hire the applicant. b. Reasonable Suspicion. Employees may be required to submit to drug/alcohol screening whenever VILLA FORD has a reasonable suspicion that they have violated any of the rules set forth in this policy. Reasonable suspicion may arise from, among other factors, supervisory observation, co-worker reports or complaints, performance decline, attendance or behavioral changes, results of drug searches or other detection methods, or involvement in a work related injury or accident. c. Other Bases for Testing. Employees in safety sensitive positions may be tested on a random or periodic basis. In addition, various job classifications are categorically subject to random or periodic drug testing to the extent permitted by applicable state and federal laws. Any employee subject to testing under this policy will be asked to sign a form acknowledging the procedures governing testing and consenting to (1) the collection of urine sample for the purpose of determining the presence of alcohol or drugs, and the release to Villa Ford of medical information regarding the test results. Refusal to sign the agreement and consent form, or to submit to the drug test, will result in the revocation of an applicant’s job offer, or will subject an employee to discipline up to and including termination. Discipline Violation of this policy or any of its provisions may result in discipline up to and including termination of employment. Enforcement Policy In order to enforce this policy and procedures, VILLA FORD may investigate potential violations and require personnel to undergo drug/alcohol screening, including urinalysis, blood tests or other appropriate tests and, where appropriate, searches of all areas of the Dealership’s physical premises, including, but not limited to work areas, personal articles, employees’ clothes, desks, work stations, lockers, and personal and Villa Ford Employee Handbook 2/14/14 Page 34 Dealership vehicles. Employees will be subject to discipline up to and including discharge for refusing to cooperate with searches or investigations, to submit to screening or for failing to execute consent forms when required by supervision. Investigations/Searches Where a manager or supervisor has reasonable suspicion that an employee has violated the substance abuse policy, the supervisor, or his designee, may inspect vehicles, lockers, work areas, desks, purses, briefcases, and other locations or belongings without prior notice, in order to ensure a work environment free of prohibited substances. An employee may be asked to be present and remove a personal lock. Locked areas or containers do not prevent the Dealership from searching that area, thus employees should have no expectation of privacy for personal belongings brought on Dealership premises. Where the employee is not present or refuses to remove a personal lock, the Dealership may do so for him or her, and compensate the employee for the lock. Any such searches will be coordinated with a representative of management. The Dealership may use unannounced drug detection methods to conduct searches. What Happens When An Employee Tests Positive For Prohibited Substances All employees who test positive in a confirmed substance test will be subject to discipline up to and including termination. Bulletin Boards VILLA FORD may maintain a bulletin board(s) as a source of information. This bulletin board is to be used solely to post information approved by the Dealership regarding Dealership policies, governmental regulations, and other matters of concern to all employees and related to the employees’ employment by the Dealership. No information may be placed on these bulletin boards without the prior approval of the Office Manager. Cash Reporting Policy Internal Revenue Service (IRS) regulations require that any transaction involving more than $10,000 in cash or cash equivalents must be reported to the IRS on Form 8300. "Cash" under the IRS reporting rules includes any kind of currency (U.S. or foreign), cashier's checks from banks, bank drafts, travelers’ checks, and money orders, which may have a face value of less than $10,000 but combined equal $10,000 or more. Combinations of these kinds of instruments are considered "cash" for reporting purposes when they total $10,000 or more. Goods and services should be denied to people with cash who are known (actual knowledge) to be engaged in criminal activity. Selling goods and services to anyone who is known to be a drug dealer or engaged in Villa Ford Employee Handbook 2/14/14 Page 35 some other illegal activity violates Dealership policy. The following information must be obtained from the purchaser: name, address, social security number, and if an alien, passport number, country of origin and alien registration number. This information, along with a description of the sale, must be immediately filed with the IRS on Form 8300 within fifteen days of the cash transaction. The federal Money Laundering Control Act is a criminal law with criminal penalties directed at people who would deliberately conspire with those engaged in enterprises to "launder" money generated from criminal activity. This means you may be held criminally liable for failing to report cash purchases or other violations of this policy. “Structuring” a transaction to evade the cash reporting requirements carries penalties ranging from $25,000 to $100,000, and failure to comply with this government regulation is a felony with up to five (5) years in jail. In addition to these criminal penalties, failure to comply with federal regulations will subject an employee to disciplinary action, up to and including immediate termination of employment, and also could result in a felony conviction. Cell Phone Policy Employees are not allowed to use their cell phones while at work to make or receive personal calls. VILLA FORD is committed to promoting highway safety by encouraging the safe use of cellular telephones by its employees while they are on Dealership business. While VILLA FORD recognizes that there often is a business need to use cellular phones, safety must be the first priority. If an employee needs to make a phone call while driving, the individual should find a proper parking space first. Stopping on the side of the road is not acceptable. The only exception is for genuine emergencies such as an accident or a vehicle breakdown. Employees with hands-free telephones may make brief phone calls while driving but must park when road conditions are poor, traffic is heavy, or the conversation is involved. Proper cellular phone use is one part of safe driving. Employees also should remember that while traveling on business, they are expected to follow posted speed limits, practice defensive driving, wear seat belts and take a sufficient number of breaks so they remain alert. VILLA FORD also expects its employees to be properly licensed and reserves the right to request that employees present a current license for inspection. Computers, E-Mail, Voice Mail and the Internet The following policy governs the use of all Dealership-owned computers, personal computers used for Dealership business, e-mail and voice mail systems, and Internet access via Dealership computers and/or data lines. Personal computers used for Dealership business include laptops or home computers that are connected with the Villa Ford Employee Handbook 2/14/14 Page 36 Dealership’s network on a regular or intermittent basis. All Dealership computers, e-mail and voice mail facilities, and Internet access accounts are the Dealership’s property to be used to facilitate the business of the Dealership. All information that is temporarily or permanently stored or transmitted with the aid of the Dealership’s computers, e-mail and Internet remain the sole and exclusive property of the Dealership. As such, employees should have no expectation of privacy in connection with their access and use of such equipment and systems. Employees should not use or access the Dealership’s computers, voice mail, email and Internet systems in any manner that is unlawful, inappropriate or contrary to the Dealership’s best interests. These electronic tools are provided to assist employees with the execution of their job duties and should not be abused. Computers and Software are Dealership Property All software that has been installed on Dealership computers and personal computers used for Dealership business is Dealership property and may not be used for any non-business, unlawful or improper purpose. In addition, all data temporarily or permanently collected, downloaded, uploaded, copied and/or created on Dealership computers, and all data temporarily or permanently collected, downloaded, uploaded, copied and/or created on personal computers used for Dealership business that relate in any manner to the Dealership’s business are the exclusive property of the Dealership and may not be copied or transmitted to any outside party or used for any purpose not directly related to the business of the Dealership. Upon termination of employment, an employee shall not remove any software or data from Dealership-owned computers and shall completely remove all data collected, downloaded and/or created on personal computers used for Dealership business that relate in any manner to the Dealership’s business. Upon request of the Dealership, a terminating employee shall provide proof that such data has been removed from all personal computers used for Dealership business. Proper Use of Computers Employees are strictly prohibited from using Dealership computers, Dealership email and Dealership voice mail systems, and Dealership Internet access accounts, or personal computers used for Dealership business, for any improper purpose. The Dealership’s Anti-Discrimination Policy and Policy Against Harassment extend to the use of the Dealership’s computers, e-mail, voice mail and Internet systems and personal computers used for Dealership business. Any employee who uses the Dealership’s computers, e-mail, voice mail and Internet systems in violation of these policies will be subject to discipline, up to and including immediate termination. It is not possible to identify every type of inappropriate or impermissible use of Villa Ford Employee Handbook 2/14/14 Page 37 the Dealership’s computers, e-mail, voice-mail and Internet systems. Employees are expected to use their best judgment and common sense at all times when accessing or using the Dealership’s computers, e-mail, voice-mail and Internet systems. The following conduct, however, is strictly prohibited: Employees may not transmit, retrieve, download, or store inappropriate messages or images relating to race, religion, color, sex, national origin, citizenship status, age, disability, or any other status protected under federal, state and local laws., Employees may not use the Dealership’s computers, e-mail, voice mail and Internet systems in any way that violates the Dealership’s policy against unlawful harassment, including sexual harassment. By way of example, employees may not transmit messages that would constitute sexual harassment; may not use sexually suggestive or explicit screen savers or backgrounds; may not access, receive, transmit or print pornographic, obscene or sexually offensive material or information; and may not transmit, retrieve, download, store or print messages or images that are offensive, derogatory, defamatory, off-color, sexual in content, or otherwise inappropriate in a business environment. Employees are also prohibited from making threatening or harassing statements to another employee, or to a vendor, customer, or other outside party. Employees are strictly prohibited from altering, transmitting, copying, downloading or removing any proprietary, confidential, trade secret or other information of the Dealership, or of the Dealership’s customers. In addition, employees may not alter, transmit, copy or download proprietary software, databases and other electronic files without proper and legally binding authorization. Employees should not download, transmit, or retrieve messages from multinetwork gateways, real-time data and conversation programs including, but not limited to, instant messaging services (e.g. AOL Instant Messenger and Yahoo Messenger), Internet chat rooms and bulletin boards during their work shift, breaks or lunch periods, unless such activity is necessary for business purposes. Employees may not use or allow another individual to use the Dealership’s computers, e-mail and Internet systems for any purpose that is either damaging or competitive with the Dealership or detrimental to its interests. Employees are strictly prohibited from using the Dealership’s computers, email or Internet systems in any manner that violates the federal Anti-SPAM law. Employees must honor and comply with all laws applicable to trademarks, copyrights, patents and licenses to software and other electronically available information. Employees may not send, receive, download, upload or copy Villa Ford Employee Handbook 2/14/14 Page 38 software or other copyrighted or otherwise legally protected information through the Dealership’s computers, e-mail and Internet systems without prior authorization. Employees may not solicit personal business opportunities or conduct personal advertising through the Dealership’s computers, e-mail or Internet systems. Employees may not engage in gambling of any kind, monitor sports scores, or play electronic games through the Dealership’s computers, e-mail or Internet systems. Employees may not engage in day trading or otherwise purchase or sell stocks, bonds or other securities or transmit, retrieve, download or store messages or images related to the purchase or sale of stocks, bonds or other securities through the Dealership’s computers, e-mail or Internet systems. Employees may not use VILLA FORD Technology Resources to copy, retrieve, forward or send copyrighted materials, unless the employee had the author’s permission or is accessing a single copy only for the employee’s reference. Unsolicited E-mail Electronic mail has become an extremely important and efficient means of communication, particularly in the business world. However, the abuse of electronic mail systems, as well as the receipt and transmission of unsolicited commercial electronic mail places an incredible drain on the Dealership’s servers and network, and imposes significant monetary costs to filter and remove unsolicited e-mails from our system. To eliminate the receipt and transmission of unsolicited commercial electronic mail, the Dealership complies with the federal “CAN-SPAM” law. All employees are responsible for complying with the federal Anti-Spam regulations and therefore may not use the Dealership’s computers, servers, network or e-mail system to: Transmit unsolicited commercial electronic mail promoting the Dealership’s business, goods, products and services without prior authorization. Transmit unsolicited commercial electronic mail promoting the employee’s personal business, goods, products and services. Transmit commercial electronic messages to the Dealership’s customers who have elected to “opt-out” of receiving the Dealership’s electronic advertisements. Villa Ford Employee Handbook 2/14/14 Page 39 Initiate a transmission of a commercial e-mail message that contains or is accompanied by false or misleading information. In addition, to help the Dealership eliminate the receipt of unsolicited commercial e- mail from outside parties advertising various websites, products or services and to further prevent the receipt of offensive or undesired outside e-mail, you should: Not use your Dealership computer to access any website not directly related to Dealership business; and Delete unfamiliar or suspicious e-mail from outside the Dealership without opening it. Monitoring Employees should expect that any information created, transmitted, downloaded, received or stored in Dealership computers or personal computers used for Dealership business, or on the Dealership’s voicemail system may be accessed by the Dealership at any time without prior notice. Employees should not assume that they have an expectation of privacy or confidentiality in such messages or information (whether or not such messages or information are password-protected), or that deleted messages are necessarily removed from the system. Employees must provide all passwords and access codes for Dealership computers or personal computers used for Dealership business to the Office Manager. Changing passwords or creating new passwords without notifying the Office Manager is strictly prohibited. Passwords Certain of the Dealership’s Technology Resources can be accessed only by entering a password. Passwords are intended to prevent unauthorized access to information. Passwords do not confer any right to privacy upon any employee of VILLA FORD. Thus, even though employees may maintain passwords for accessing Technology Resources, employees must not expect that any information maintained on Technology Resources, including electronic-mail and voicemail messages, are private. Employees are expected to maintain their passwords as confidential. Employees must not share passwords and must not access co-worker’s systems without express authorization. Data Collection The best way to guarantee the privacy of personal information is not to store or transmit it on the Dealership’s Technology Resources. To ensure that employees understand the extent to which information is collected and stored, below are examples of information currently maintained by the Dealership. The Dealership may, however, in its sole discretion, and at any time, alter the amount and type of information that it retains. Villa Ford Employee Handbook 2/14/14 Page 40 1. Telephone Use and Voicemail: Records are kept of all calls made from and to a given telephone extension. Although voicemail is password protected, an authorized administrator can reset the password and listen to voicemail messages. 2. Electronic Mail: Electronic mail is backed-up and archived. Although electronic mail is password protected, an authorized administrator can reset the password and read electronic mail. 3. Desktop Facsimile Use: Copies of all facsimile transmissions sent and received are maintained in the facsimile server. 4. Document Use: Each document stored on Dealership computers has a history, which shows which users have accessed the document for any purpose. 5. Internet Use: Internet sites visited, the number of times visited, and the total time connected to each site is recorded and periodically monitored. Deleted Information Deleting or erasing information, documents, or messages maintained on the Dealership’s Technology Resources is, in most cases, ineffective. All employees should understand that any information kept on the Dealership’s Technology Resources may be electronically recalled or recreated regardless of whether it may have been “deleted” or “erased” by an employee. Because the Dealership periodically backs up all files and messages, and because of the way in which computers re-use file storage space, files and messages may exist that are thought to have been deleted or erased. Therefore, employees who delete or erase information or messages should not assume that such information or messages are confidential. System Integrity Because outside disks may contain viruses, employees are not permitted to use personal disks or copies of software or data in any form on any Dealership computer without first (1) obtaining specific authorization from the Office Manager, and (2) scanning the data for viruses. Any employee who introduces a virus into the Dealership’s system via use of personal software or data shall be deemed guilty of gross negligence and/or willful misconduct and may be held responsible for the consequences, including cost of repair and lost productivity. Similarly, information is not to be downloaded directly from the Internet onto the Dealership’s computer system. All information downloaded from the Internet is to be placed on a disk and scanned for viruses before being introduced into the Dealership’s system. Villa Ford Employee Handbook 2/14/14 Page 41 Enforcement Violations of this policy may result in disciplinary action, up to and including termination of employment. Employees who damage the Dealership’s computer system through its unauthorized use may additionally be liable for the costs resulting from such damage. Employees who misappropriate copyrighted or confidential and proprietary information, or who distribute harassing messages or information, may additionally be subject to criminal prosecution and/or substantial civil money damages. Confidentiality All records and files of the Dealership are property of the Dealership and considered confidential. No employee is authorized to copy or disclose any file or record. Confidential information includes all letters or any other information concerning transactions with customers, customer lists, payroll or personnel records of past or present employees, financial records of the Dealership, all records pertaining to purchases from vendors or suppliers, correspondence and agreements with manufacturers or distributors and documents concerning operating procedures of the Dealership. All telephone calls, letters, or other requests for information about current or former employees should be immediately directed to the Office Manager or the President. In addition, the Office Manager and President are the only authorized employees to release, disseminate or communicate any necessary information regarding the Dealership, or to make a public comment regarding the Dealership, to individuals or entities outside of the Dealership, unless an employee obtains prior written authorization from the Dealership. Conflict Of Interest It is our policy to forbid employees from engaging in any other business which competes with the Dealership. Dealership policy also forbids a financial interest in an outside concern, which does business with or is a competitor of the Dealership (except where such ownership consists of securities of a publicly owned corporation regularly traded on the public stock market). Rendering of directive, managerial, or consulting services to any outside concern which does business with or is a competitor of the Dealership, except with the knowledge and written consent of the President of VILLA FORD, is also prohibited. If you think that there is a possibility that any business venture of yours may conflict with this policy, it is your responsibility to notify the President and obtain his/her approval in writing. Courtesy Courtesy is the responsibility of every employee. All employees are expected to be courteous, polite and friendly to our customers, vendors and suppliers, as well as to their fellow employees. No one should be disrespectful or use profanity or any other language, which injures the image or reputation of the Dealership. Villa Ford Employee Handbook 2/14/14 Page 42 Damage to Property We have made a tremendous investment in our building and equipment in order to better serve our customers and to make your job easier. Deliberate or careless damage to the Dealership’s property, as well as damage to your co-workers’ or customers’ property will not be tolerated. Dealership Keys/Entry Cards Each VILLA FORD employee to whom a key and/or entry card is given is responsible for proper use of that key and/or entry card and will be required to sign for it. A lost or misplaced key and/or entry card must be reported immediately to your Department Manager. Never duplicate or loan a key and/or entry card to anyone for any reason. See your Department Manager if you need another key and/or entry card. All keys and/or entry cards must be turned in to your Department Manager upon separation from the Dealership. Employees who take a leave of absence must turn in any keys and/or entry cards prior to beginning their leave. Dealership Vehicles Only authorized employees may use VILLA FORD vehicles. If a Dealership vehicle incurs any damage while under the charge of a particular employee, that employee will be responsible for reporting the damage immediately. The employee may be responsible to pay the deductible portion of our insurance. You must hold a valid state driver’s license for the class of vehicle you are driving. Further, you may never use a motorcycle to conduct either business or provide transportation for a customer or fellow employee. All people in Dealership vehicles are required to use their seatbelts. Not using seatbelts in a Dealership vehicle may lead to disciplinary action, up to and including termination. Only people authorized by your supervisor can be passengers in Dealership vehicles. Permitting unauthorized passengers may lead to disciplinary action, up to and including termination. You must notify the Dealership immediately of any change in the status of your driving record. Any employee whose duties include the operation of Dealership or customer vehicles who is cited for D.U.I. or for any other serious moving violation will be considered to have an unacceptable driving record and his or her continued employment will be subject to review. Any employee whose duties include the operation of Dealership or customer vehicles who becomes uninsurable under the Dealership’s liability policy will be considered to have an unacceptable driving record and his or her continued employment will be subject to review. If an employee receives a traffic citation while operating a Dealership or customer vehicle, the employee will be responsible for paying any fine or penalty. If an employee is involved in a traffic accident while operating a Dealership or customer vehicle, the employee is required to call a police officer to the scene of the accident. The employee must report the accident to the Office Manager immediately. Do not Villa Ford Employee Handbook 2/14/14 Page 43 attempt to render medical care or assistance beyond your ability. Demonstration Drives Salespersons must accompany customers on all demonstration drives for new and used vehicles. The salesperson must photocopy the customer’s driver’s license before beginning a demonstration drive. Salespersons shall not ask a customer to go on a date, flirt, make sexual comments or propositions to a customer, or ask intrusive personal questions of a customer during a demonstration drive. Document Preparation Correspondence and documents should be error-free and neatly prepared. Care shown in preparation reflects attention to accuracy and detail. Even simple errors cause unnecessary inconvenience and irritation. Furthermore, the time required to correct them is wasteful and expensive. Facsimile and Copy Machines The facsimile and copy machines are for legitimate business purposes only. Employees are prohibited from using these machines for the purpose of transmitting, receiving or copying materials, which may be deemed offensive or insulting. Any employee, who receives such materials via facsimile transmission, the mail, or from any other source, should report the transmission immediately to the President. Fighting, Threats, and Weapons We do not allow fighting, threatening words or conduct. Weapons of any kind are strictly prohibited and not permitted on Dealership premises. Fraud, Dishonesty and False Statements No employee or applicant may ever falsify any application, medical history record, invoice, paperwork, time sheet, time card, investigative questionnaires or any other document. Any employee found to have falsified or made material misrepresentations or omissions on any such document will be subject to immediate termination of employment. If you observe any such violations, please report them to the President immediately. Gambling Gambling is prohibited on Dealership property, or through the use of the Dealership’s property. Villa Ford Employee Handbook 2/14/14 Page 44 Gifts and Gratuities Employees may not request or accept any gift or gratuity of any kind from a customer or supplier without the express written authorization of the General Manager or the President. Hazardous and Toxic Materials If your job requires that you use hazardous or toxic materials, you are expected to comply with all laws, rules and regulations concerning their safe handling and disposal. If you have any questions about the materials you work with or the proper safety or disposal procedures to follow, please discuss them with your supervisor before taking any action. Honesty Our credibility with our customers is critical to our success. Misrepresentation to a customer is against Dealership policy and against the law. Under the law, an employee may be held personally liable for making misrepresentations to customers. It is also against Dealership policy to mislead or misrepresent any credit application or customer credit status to any financial institution. Employees are also expected to be honest in their dealings with their supervisors and co-workers. Housekeeping Employees are responsible for maintaining their own work areas in a presentable manner. At the close of each business day, ensure that all equipment is cleaned and put away. All stationery and miscellaneous supplies should be removed from benches/furniture tops. No paperwork may be left out overnight. Employees will not litter or discard such items as cigarettes or wrappers on the premises. Remember, we want our customers to look at us as a professional, neat organization. Work areas must be maintained in a clean, healthy and orderly fashion to prevent unsafe conditions and potential accidents. If you observe conditions or equipment which are potentially dangerous, report them immediately to your supervisor. It is each employee’s responsibility to make sure the work area is clean and orderly at the completion of the scheduled work shift. Illegal Activity Employees are not permitted to engage in any kind of illegal activity on duty or on VILLA FORD’S property, or while off the job which reflects detrimentally on the Dealership’s reputation. Villa Ford Employee Handbook 2/14/14 Page 45 Insubordination We all have duties to perform and everyone, including your supervisor, must follow directions from someone. It is against our policy for an employee to refuse to follow the directions of a supervisor or management official or to treat a supervisor or management official in an insubordinate manner in any respect. Employees must fully cooperate with Dealership investigations into potential misconduct. Refusal to fully disclose information in the course of a Dealership investigation constitutes insubordination and will not be tolerated. Legal Requirements The following are the most frequent disclosures that our employees are required to make by law. All employees must comply with these legal requirements in addition to all other federal, state and local laws, rules and regulations: Window stickers and FTC stickers. These stickers must be intact on all new, demo, or used cars at time of presentation and delivery. No employee is authorized to remove them for a customer. Odometer Disclosure. The odometer disclosure form must be signed for all customer trade-ins and for any Dealership vehicle sold. Contract Disclosure. All contracts must be signed in the Dealership. Anyone signing a contract must show proof of identity. Also, the truth in lending and truth in leasing laws require that certain disclosures be made. Failure to make these disclosures may void/invalidate a deal and result in damages, as well as discipline, up to and including immediate termination. Damage Disclosure. All damage to a vehicle, whether it occurred in transit, on the lot, or in a collision must be disclosed to the customer in writing in accordance with California law. Loans and Pay Advances Experience in business teaches us that loans to employees or advances in pay do little in the long run to help an employee meet his or her financial obligations. At the same time, the Dealership may be put in a very difficult and unpleasant position if we are required to collect a past due loan. For these reasons, it is our policy not to make loans or advances of pay to employees. Similarly, managers and employees are prohibited from extending loans to any fellow employees because of the potential for conflict that may result. Meetings From time to time, individual or staff meetings may be held for the purpose of Villa Ford Employee Handbook 2/14/14 Page 46 providing instruction, training, or counseling or to review Dealership operating policies. You are required to attend all Dealership meetings involving your department or which you have been asked to attend. Misuse of Property No employee should misuse, or use without authorization, equipment, vehicles or other property of customers, vendors, other employees of the Dealership. New and Used Parts All parts removed from either customer vehicles or vehicles owned or operated by VILLA FORD are the property of VILLA FORD. No employee shall remove from the premises any new or used parts without being properly billed or receiving written authorization from the Parts Manager or Service Manager. Pilfering of new and used parts is a serious problem in the automobile dealership industry and will not be tolerated by VILLA FORD. Employees who remove or sell such parts will be subject to discipline, up to and including immediate termination. Non-Fraternization The Dealership desires to avoid misunderstandings, actual or potential conflicts of interest, complaints of favoritism, possible claims of sexual harassment, and the employee morale and dissension problems that can potentially result from romantic relationships involving managerial/supervisory employees in the Dealership and certain other employees in the Dealership. Accordingly, managers and supervisors are not encouraged to fraternize or become romantically involved with one another or with any other employee of the Dealership. Villa Ford does not assent fraternization or becoming romantically involved with other employees, both managerial and non-managerial, because in the opinion of the Dealership, their personal relationships may create a conflict of interest, cause disruption, create a negative or unprofessional work environment, or present concerns regarding supervision, safety, security, or morale. An employee involved with a supervisor or fellow employee should immediately and fully disclose the relevant circumstances to the General Manager or the President so that a determination can be made as to whether the relationship is on grounds of conflict. If conflict is found, the Dealership may take whatever action appears appropriate according to the circumstances, up to and including transfer or termination. Failure to disclose facts may lead to disciplinary action, up to and including termination. All employees should also remember that the Dealership maintains a strict policy against unlawful harassment of any kind, including sexual harassment. The Dealership will vigorously enforce this policy consistent with all applicable federal, state, and local Villa Ford Employee Handbook 2/14/14 Page 47 laws. Off-Duty Use of Facilities Employees are prohibited from being on the Dealership premises or making use of Dealership facilities while not on duty. Employees are expressly prohibited from using Dealership facilities, Dealership property or Dealership equipment for personal use. Off-Duty Social and Recreational Activities During the year, the Dealership may sponsor social or recreational activities for its employees. Your attendance at such social activities, however, is completely voluntary and is not work-related. Neither the Dealership nor its insurer will be liable for the payment of workers’ compensation benefits for any injury that arises out of an employee’s voluntary participation in any off-duty recreational, social, or athletic activity that is not part of the employee’s work-related duties. Operation of Customer Vehicles While a customer's vehicle remains on Dealership property we all should accept responsibility for its care and treatment. If a customer's car is damaged in any way, stolen or improperly used while in our possession, VILLA FORD may be held responsible. Therefore, we expect our employees to treat every customer's car as if it were their own. There are a few common sense rules that keep us from upsetting our customers: Do not play the radio except to repair it; Do not change the radio station; Do not smoke or eat in a customer's vehicle at any time; Do not drive the vehicle for personal business of any kind; Do not drive a vehicle without your Department Supervisor's permission, and do not carry any passengers; Do not remove any customer property from the vehicle. Since customer satisfaction is essential to the continued success of the Dealership, employees must strictly adhere to these rules. Outside Employment There have been times when most of us have had the opportunity or the need to Villa Ford Employee Handbook 2/14/14 Page 48 have two jobs at one time. It is important that other employment, as well as outside interests, do not interfere in any way with an employee’s job with VILLA FORD. You should be careful that extra hours of work do not affect the safe operation of your job by leaving you tired and slow to react. Also, if your second job could create a potential conflict of interest, for example, working for a competitor, you are required to obtain written approval, in advance, from the President. Overtime VILLA FORD may periodically schedule overtime or weekend work in order to meet production needs. We will attempt to give as much advance notice as possible, and we expect that all employees who are scheduled to work overtime will be at work, unless excused by their supervisor. All overtime work must be pre-approved by your supervisor or Department Manager. Working overtime without your supervisor’s or Department Manager’s approval may result in discipline, up to and including termination. Parking So that we will have sufficient and convenient parking for our customers, we require all of our employees to park their vehicles in the area designated for employee parking. If you have any questions as to where you should park your vehicle, please ask your Department Manager. Personal Appearance and Behavior A clean, well-groomed appearance is an asset on any job. During working hours, all employees are expected to present a business-like, professional appearance (including hair and make-up), appropriate for all job duties. All employees are representatives of VILLA FORD and the visual impressions employees make on customers and their fellow employees affects the perception and quality of VILLA FORD as a whole and therefore either enhance or detract from those all-important customer transactions. Villa ford employee’s that are required to wear dealer supplied uniforms are listed below: Service Technicians Service Advisors Parts Personnel Lot Attendants Unacceptable dress appearance is as follows: Villa Ford Employee Handbook 2/14/14 Page 49 No denim No tank tops No flip flops / backless sandals No spaghetti straps / strapless No leggings No tee shirts No skirts or dresses more than 6’ above the knee No flannel shirts No knee high boots As an employee of VILLA FORD, you are expected to adhere to your department’s dress requirements. Our customers deserve the best as they are here to buy or fix one of the most expensive items they will ever own in their lives. Any deviations from this policy will be grounds for discipline, up to and including immediate termination. Personal Mail All mail which is delivered to VILLA FORD is presumed to be related to our business. Mail sent to you at the Dealership will be opened by office personnel and routed to your department. If you do not wish to have your correspondence handled in this manner, please have it delivered to your home. Dealership postage meters and letterhead may not be used for personal correspondence. Personal Telephone Calls and Visits We have a limited number of telephone lines at VILLA FORD, and it is essential that we keep those lines open for business calls. Therefore, we ask our employees to refrain from making or receiving personal calls except in emergencies. Long distance business calls must be cleared by your Department Manager unless your job duties include the routine making of long distance calls. Under no circumstances are employees permitted to use Dealership telephones to call “900” lines or similar pay-per call services. Employees will be personally liable for unauthorized calls and will be subject to discipline, up to and including immediate termination. Personal visits by friends or relatives during work hours can be disruptive to our operations and are strongly discouraged. If you receive a non-business-related visit from a friend or relative, you must notify your Department Manager at the time of your guest’s arrival and departure. Non-employees are strictly forbidden from entering unauthorized areas. Villa Ford Employee Handbook 2/14/14 Page 50 Poor Performance Employees are expected to make every effort to learn their job and to perform at a level satisfactory to the Dealership at all times. Publicity In the course of advertising, public relations or other similar conduct for business purposes, the Dealership may utilize media resources. The Dealership may use your photograph, picture, and/or voice transcription for promotion or advertising at any time without compensation. Safety VILLA FORD is committed to providing and maintaining a healthy and safe work environment for all employees. Accordingly, VILLA FORD has instituted an Injury and Illness Prevention Program designed to protect the health and safety of all personnel. Every employee will receive a copy of the Dealership’s General Safety Rules and will receive health and safety training as part of the Injury and Illness Prevention Program. A complete copy of the Injury and Illness Prevention Program is kept by the Service Manager and is available for your review. You are required to know and comply with the Dealership’s General Safety Rules and to follow safe and healthy work practices at all times. You will be subject to discipline for engaging in any unsafe or unhealthy work practice or for violating established safety rules. You are also required to report immediately to your supervisor any potential health or safety hazards and all injuries or accidents as explained in the next section regarding “on the job injuries.” First aid supplies are located at Dispatch area and the Business Office. The location of the nearest doctor and/or medical facility is Orange Medical Center, 2110 E. Katella Avenue, Anaheim, California. On the Job Injuries VILLA FORD is committed to providing you with a safe and healthy environment. In order to maintain this policy, employees are required to immediately report any customer or visitor injury, or any on the job injury or illness to their immediate supervisor and the Department Manager immediately, regardless of how minor it may seem. Employees are also required to report to their immediate supervisor and the Office Manager prior to returning to work after sustaining any personal or on the job injury or illness. If the injury or illness is an emergency and requires immediate attention, please call 911 immediately, and then report the situation to the nearest manager and later, to the Department Manager. At the time of injury and before you go to the workers compensation doctor, you Villa Ford Employee Handbook 2/14/14 Page 51 must first inform your manager (or any other manager available) because you both must fill out the same employee report of injury form so that you will have a copy to give to the doctor and we have the immediate record of the injury. It is each employee’s responsibility to keep in touch with the Workers’ Compensation secretary at VILLA FORD to bring copies of the Notice of Work Status from the doctor for your employer and for the employer to pass on to VILLA FORD’S Workers Compensation Insurance Dealership. Sales License All sales personnel must have valid vehicle salesperson license from the Department of Motor Vehicles. If the license is expired, the salesperson should notify the Sales Manager immediately and may not sell vehicles, until the salesperson obtains a valid license. Scrap, Waste and Old Parts All unused containers, oil drums, batteries, radiators, bumpers, brake shoes, and other salvageable items are the property of VILLA FORD. Removing such items without authority shall be considered theft. Searches and Inspections In order to protect the safety and property of all of our employees, the Dealership reserves the right to inspect employees’ lockers, desks, cabinets, briefcases, toolboxes, purses, personal computers, personal motor vehicles and any other personal belongings brought onto Dealership property. Employees are expected to cooperate in any search. Failure to cooperate will result in disciplinary action up to and including termination of employment. All files and records stored on Dealership computers are the property of the Dealership and may be inspected at any time. Dealership computers are for business purposes only and should not be used for non-work related matters. Use of Dealership computers for unauthorized purposes is prohibited. Electronic mail and voice mail messages are to be used for business purposes only and are considered Dealership property. The Dealership may access its computers at any time with or without prior notice and the employee should not assume that any data stored in Dealership computers is confidential. Service Work Service work must be completed promptly and in expert fashion. If you are unsure of the diagnosis or solution for a problem, you should review the matter with your supervisor before proceeding. Villa Ford Employee Handbook 2/14/14 Page 52 Sleeping Everyone needs to be fully alert while on the job in order to protect the safety of all employees and to properly serve our customers. Therefore, we cannot tolerate sleeping or inattention on the job. Smoking Smoking is prohibited in all Dealership buildings and vehicles. Smoking must be confined to designated outdoor areas. Of course, smoking is prohibited in all areas where paint and flammable materials are present. As smoking in the presence of some customers and co-workers may be offensive to them, we expect that employees who choose to smoke will exercise good judgment as to when and where they smoke. Solicitation - Distribution Policy Our main job at VILLA FORD is to give our customers the best service possible. In order to allow employees to provide our customers and their jobs with their undivided attention, the solicitation by an employee of another employee for the support of any organization is prohibited during the working time of either employee. In addition, the distribution of advertising materials, handbills or other literature is prohibited in all working areas and sales areas at all times. E-Mail, facsimile machines, and voice mail may not be used to advertise or solicit employees. Similarly, non-employees may not come on the Dealership’s property at any time to solicit for any cause or distribute material or literature of any kind for any purpose. Theft Our society has laws against theft and so do we. To protect you, your co-workers and VILLA FORD, we reserve the right to inspect all purses, briefcases, packages, lockers and vehicles on the Dealership’s property. If you must remove Dealership property from the premises, you must obtain written permission in advance from your supervisor. Timekeeping Procedures Unless otherwise notified, each employee is required to record his or her hours of work for VILLA FORD either through the use of a time card or through a hand written record. Accurately recording all of your time is required in order to be sure that you are paid for all hours worked as required by the wage and hour laws. You will be informed your first day on the job whether you are required to keep your time by a time clock, a time sheet or some other method. Whatever your method of timekeeping, you are expected to follow the established procedures in keeping an accurate record of your hours worked. Any changes or corrections to your time card or time record must be initialed by Villa Ford Employee Handbook 2/14/14 Page 53 you and your Department Manager. Under no circumstances may any employee punch or record another employee’s time card. Tools Technicians supplying their own basic tools are asked to secure them by keeping their toolboxes locked when not in use. VILLA FORD'S insurance may not cover the loss of your personal tools. VILLA FORD is not responsible for the safety and security of the personal tools you bring to work. Tools belonging to VILLA FORD should be similarly secured when not in use. VILLA FORD tools are not to be removed from the service department under any circumstance. Unauthorized Interviews As a means of protecting yourself and the Dealership, no unauthorized interviews are permitted to be conducted by individuals representing themselves as attorneys, peace officers, investigators, reporters, or someone who wants to “ask a few questions.” If you are asked questions about the Dealership or its current or former employees, you are to refer that individual(s) to the Office Manager or President. A decision will then be made as to whether that individual may conduct any interview and they will be introduced to you by the Office Manager or President with a reason for the questioning. Similarly, if you are aware that an unauthorized interview is occurring at the Dealership, immediately notify the Office Manager or the President. Workplace Violence Policy The Dealership recognizes that workplace violence is a growing concern among employers and employees across the nation. VILLA FORD is therefore committed to providing a safe, violence-free workplace. In this regard, the Dealership strictly prohibits employees, consultants, clients, visitors or anyone else on Dealership premises or engaging in a Dealership related activity from behaving in a violent or threatening manner. Moreover, as part of this policy, the Dealership seeks to prevent workplace violence before it begins and reserves the right to deal with behavior that suggests a propensity towards violence even prior to violent behavior occurring. Workplace violence includes, but is not limited to, the following: 1. 2. 3. Threats of any kind; Threatening, physically aggressive or violent behavior, such as intimidation of or attempts to instill fear in others; Other behavior that suggests a propensity towards violence, which can include belligerent speech, excessive arguing or swearing, sabotage or threats of sabotage of Dealership property, or a demonstrated pattern of refusal to follow Dealership policies and procedures. Villa Ford Employee Handbook 2/14/14 Page 54 4. 5. Defacing Dealership property or causing physical damage to the facility; or Bringing weapons or firearms of any kind on Dealership premises, in the Dealership parking lot or while conducting Dealership business. If any employee observes or becomes aware of any of the above-listed actions or behavior by an employee, client, visitor, or anyone else, he or she should notify their manager or the General Manager immediately. If the Dealership determines that workplace violence has occurred, the Dealership will take appropriate corrective action and will impose discipline on the offending employees. The appropriate discipline will depend on the particular facts but may include written or oral warnings, probation, reassignment of responsibilities, suspension or termination. If the violent behavior is that of a non-employee, the Dealership will take appropriate corrective action. Villa Ford Employee Handbook 2/14/14 Page 55 Changes in Status Changes in Personnel Records To keep your personnel records up to date, to ensure that the Dealership has the ability to contact you, and to ensure that the appropriate benefits are available to you, employees are expected to notify the Dealership promptly of any change of name, address, phone number, number of dependents, or other applicable information. Outside Inquiries Concerning Employees All inquiries concerning employees from outside sources should be directed to the Office Manager. No information should be given regarding any employee by any other employee or manager to an outside source. Notice Of Resignation In the event you choose to resign from your position, we ask that you give us at least two weeks written notice. You are responsible for returning Dealership property in your possession or for which you are responsible. Exit Interview Any employee leaving VILLA FORD may be required to attend an exit interview conducted by the employee’s Department Manager or Office Manager. The purpose of the interview is to determine the reasons for termination and to resolve any questions of compensation, Dealership property or other matters related to the termination. To Sum It All Up This handbook highlights your opportunities and responsibilities at VILLA FORD. It is a guide to your bright future here. By always keeping the contents of the handbook in mind, you should be successful and happy in your work at VILLA FORD. Once again, welcome to our Dealership, and we look forward to working with you. Villa Ford Employee Handbook 2/14/14 Page 56 The Wow Way of Working . . . And Living Do you believe in dreams? What has that got to do with work? Everything. Dreams are visions! Dreams are a succession of images, thoughts and emotions passing through our mind when we sleep. Yet we can think about whatever we wish to think or imagine while totally awake! But do we ever tell the “Boss” we were dreaming on the job! Probably not – although that is how new ideas are made every day! Consider the idea of dreams “passing” through. Where did they begin and where have they gone? What made them suddenly become aware to us? The human mind is capable of capturing thousands if not millions of images and facts tied in without our hopes and feelings towards one another and this world we all live in. We each have the capacity to give them our own mix of what they all mean to us and ourselves . . . and we share them if we dare: Wow Now How Vow Plow Endow: The Dream Cycle of Life! Wow! You had a good dream! It’s a good idea too. Wow, you really love it. Now! You love your idea and you dream; it’s real and you want it now! How? It’s such a driving need that you want it so much you think about it all the time to figure out how to make it happen. Plow! It’s time for the real work to begin. And it means hard work and dedication. You can’t give up. You keep on plowin’ no matter what others may say. Endow: Your dream is at last reality for all to see or hear or feel or touch or consider. It’s affected the world you live in and has endowed or inspired others in ways that may come back to inspire you again because you created something you loved. The Wow Way of Working and Living sums up how each individual contributes in their own way to our reality. It’s a summary of what life’s all about. If we can see that dreams are so awesome and mysterious and wonderful all at the same time, then we should pay more serious attention to them. They are a fascinating part of our lives that may equal an epiphany of seeing the meaning of our own lives. Just remember: the PLOWING part is the toughest part of the cycle and the one where our dreams seem to find their pitfalls. We’ve heard so often about following our dreams, that we tend to forget that “follow” is a definite, if vague, verb of action! And when we combine that without fears of rejection, many good ideas never come to fruition. Therefore, I challenge you to complete the cycles of all your dreams. And if you have an idea that perhaps would make the workday at VILLA FORD better for the customers or the employees, don’t drop the plow because you may be asked to help do some work to achieve it! And don’t just forget about it because of the fear of what others will say about it. And there have always been the naysayers! Forget them! Where would we be if Edison or Ford gave up! Or if Disney believed his ideas were too weird! What if they never even tried!! They all have learned from their mistakes. And mistakes will be made. Keep your eye on the endowment and the Wow feeling that made you want it in the first place. It’s a better future for everyone when we truly follow our dreams by living them! Villa Ford Employee Handbook 2/14/14 Page 57 The Ten Pillars of Economic Wisdom 1. Nothing in our material world can come from nowhere or go nowhere, nor can it be free: everything in our economic life has a source, a destination and a cost that must be paid. 2. Government is never a source of goods. Everything produced is produced by the people, and everything that government gives to the people, it must first take from the people. 3. The only valuable money that government has to spend is that money taxed or borrowed out of the people’s earnings. When government decides to spend more than it has thus received, that extra unearned money is created out of thin air, through the banks, and when spent, takes on value only by reducing the value of all money, savings and insurance. 4. In our modern exchange economy, all payroll and employment come from customers, and the only worthwhile job security is customer security; if there are no customers, there can be no payroll and no jobs. 5. Customer Security can be achieved by the worker only when he cooperates with management in doing the things that win and hold customers. Job security therefore, is a partnership problem that can be solved only in a spirit of understanding and cooperation. 6. Because wages are the principal cost of everything, widespread wage increases, without corresponding increases in production, simply increase the cost of everybody’s living. 7. The greatest good for the greatest number means, in its material sense, the greatest goods for the greater number which, in turn, means the greatest productivity per worker. 8. All productivity is based on three factors: 1) natural sources, whose form, place and condition are changed by the expenditure of; 2) human energy (both muscular and mental), with the aid of; 3) tools. 9. Tools are the only one of these three factors that man can increase without limit, and tools come into being in a free society only when there is a reward for the temporary self-denial that people must practice in order to channel part of their earnings away from purchases that produce immediate comfort and pleasure, and into new tools of production. Proper payment for the use of tools is essential to their creation. 10. The productivity of the tools – that is, the efficiency of the human energy applied in connection with their use – has always been highest in a competitive society in which the economic decisions are made by millions of progress-seeking individuals, rather than in a state-planned society in which those decisions are made by a handful of all-powerful people, regardless of how well-meaning, unselfish, sincere and intelligent those people may be. Villa Ford Employee Handbook 2/14/14 Page 58 VILLA FORD'S FOUNDING PRINCIPLES 1. Find your own particular talent. 2. Be big. 3. Be honest 4. Live with enthusiasm. 5. Don’t let your possessions possess you. 6. Don’t worry about your problems. 7. Look up to people when you can – down to no one. 8. Don’t cling to the past. 9. Assume your full share of responsibility in the world. 10. Think positively and have an attitude of gratitude. Villa Ford Employee Handbook 2/14/14 Page 59 ACKNOWLEDGMENT OF EMPLOYEE HANDBOOK This will acknowledge that I have reviewed the Employee Handbook posted in the HotlinkHR system, that I have a username and password as well as access to a company computer allowing me to view the Employee Handbook as needed, and that I have familiarized myself with its contents. By signing below, I also acknowledge that I have received a copy of this Employee Acknowledgment and Agreement. I understand that this handbook represents the current policies, regulations, and benefits and that any and all policies or practices can be changed at any time by VILLA FORD. VILLA FORD retains the right to add, change or delete wages, benefits, policies and all other working conditions at any time (except the policy of "at-will employment" and Arbitration Agreement, which may not be changed, altered, revised or modified without a writing signed by the President of VILLA FORD). I further understand that nothing in the Employee Handbook creates, or is intended to create, a promise or representation of continued employment and that my employment, position and compensation all are at-will, and may be changed or terminated at the will of VILLA FORD or I, with or without cause or notice. This is the entire agreement between VILLA FORD and I regarding the length of my employment and the reasons for termination of employment, and this agreement supersedes any and all prior agreements regarding these issues to the extent that they differ from the foregoing. It is further agreed and understood that any agreement contrary to the foregoing must be entered into, in writing, by the President of VILLA FORD. No supervisor or representative of VILLA FORD, other than its President, has any authority to enter into any agreement for employment for any specified period of time or make any agreement contrary to the foregoing. Oral representations made before or after I am hired do not alter this Agreement. MY SIGNATURE BELOW ATTESTS TO THE FACT THAT I HAVE READ, UNDERSTAND, AND AGREE TO BE LEGALLY BOUND TO ALL OF THE ABOVE TERMS. [DO NOT SIGN UNTIL YOU HAVE READ THE ABOVE ACKNOWLEDGMENT.] Signature Date [RETAIN IN EMPLOYEE PERSONNEL FILE] Acknowledgment of Employee Handbook 6/14/12 Page 1 ARBITRATION AGREEMENT This agreement is between ______________________________ (“Employee”). VILLA FORD and VILLA FORD and Employee agree to arbitrate any disputes regarding any aspect of Employee’s employment, including all claims which Employee may have against VILLA FORD and VILLA FORD may have against Employee, with the exception of provisional remedies, such as a temporary restraining order, preliminary injunction, and injunction. Employee understands that by signing this Agreement, Employee is giving up the right to a jury trial and to discovery and appeal except to the extent that they are specifically provided for under this agreement. Either party may be compelled to arbitrate under federal or state law if that party refuses to submit to arbitration. Employee further acknowledges that this agreement is separate from the other rules policies and procedures contained in VILLA FORD’S Employee Handbook and is not a mandatory part of the employment agreement. The terms of the agreement are: If a dispute arises, the parties will engage in good faith efforts to resolve the dispute informally. If the parties are unable to resolve the dispute informally, either party may initiate arbitration by filing a written demand for arbitration following the informal efforts to resolve the dispute. The dispute shall be resolved through binding arbitration using a neutral arbitrator and shall be conducted under the then-current Arbitration Rules and Mediation Procedures of the American Arbitration Association (“AAA”), the current version of which is available for downloading and located at: http://www.adr.org/sp.asp?id=32904 (“AAA’s Website”), and a copy is included with this Agreement. (Exhibit A). All subsequent revisions to these rules will be provided to Employee by VILLA FORD and will also be available for downloading on AAA’s Website. Employee is strongly advised to review AAA’s Website and access the AAA’s Arbitration Rules and Mediation Procedures from time to time as these rules do periodically change. By signing this Agreement, Employee acknowledges that he or she has received a copy of the current Arbitration Rules and Mediation Procedures and understands that he or she should review AAA’s Website. The costs of arbitration and location of arbitration will not preclude the Employee’s access to arbitration and due process. Notwithstanding the then-current Arbitration Rules and Mediation Procedures of the AAA, VILLA FORD will bear the costs of arbitration; however, Employee is required to pay those costs that he or she otherwise would have to incur if the case were pending in a Superior Court of California (i.e., filing fees). Notwithstanding the then-current Arbitration Rules and Mediation Procedures of the AAA, any Arbitration conducted as a result of this Agreement will: allow for more Arbitration Agreement 6/14/12 Page 2 than minimal discovery, require that at the conclusion of the arbitration, the arbitrator shall prepare a written decision of the award, stating the disposition of each claim and the relief, if any, supported by the essential findings and conclusions, and allow for all types of relief otherwise available in court. Notwithstanding the then-current Arbitration Rules and Mediation Procedures of the AAA, attorney’s fees and costs will be recoverable in accordance with applicable law. VILLA FORD and Employee each represent and warrant that by signing this Agreement, he, she, or it has carefully read and fully understands this Agreement and its final and binding effect; has been afforded sufficient time and opportunity to review this Agreement with advisors or attorneys of his, her, or its choice; has had an opportunity to negotiate with regard to the terms of this Agreement, is fully competent to manage his, her, or its own business affairs and to enter into or sign this Agreement; has signed this Agreement knowingly, freely, and voluntarily; and that the only promises made to induce him, her, or it to sign this Agreement are those stated herein. Employee further understands that his or employment with VILLA FORD is not conditioned upon executing this Agreement. Any dispute, claim, or controversy arising out of or relating to this agreement or breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope, or applicability of this agreement to arbitrate, and/or a fee motion after judgment is rendered shall be determined by any Superior Court in California having jurisdiction. Judgment on the Award may be entered in any court having jurisdiction. MY SIGNATURE BELOW ATTESTS TO THE FACT THAT I HAVE READ, UNDERSTAND, AND AGREE TO BE LEGALLY BOUND TO ALL OF THE ABOVE TERMS. [DO NOT SIGN UNTIL YOU HAVE READ THE ARBITRATION AGREEMENT DETAILED ABOVE.] Employee Name/Signature Date VILLA FORD Representative Name/Title/Signature Date [RETAIN IN EMPLOYEE PERSONNEL FILE] Arbitration Agreement 6/14/12 Page 2