Loading...
2.6 ERMUSR 06-14-2022UTILITIES COMMISSION MEETING TO:FROM: ERMU CommissionTheresa Slominski– General Manager MEETING DATE: AGENDA ITEM NUMBER: June14, 2022 2.6 SUBJECT: Employee Handbook Annual Updates ACTION REQUESTED: Adopt the revised ERMU Employee Handbook BACKGROUND: Annually, staff and legal counsel review the existing personnel policies incorporated into the ERMU Employee Handbook for compliance with changing labor laws. The Wage and Benefits Committee may recommend the Commission adopt employee benefit changes. Staff may recommend operational changes that affect the personnel policy be adopted by the Commission for incorporation into the handbook. DISCUSSION: There are only a fewchanges to the handbook since its last revision in April2021, mostly related to the changes recommended by the Wage and Benefits Committee and approved by the commission previously. The changes are: Revise Date in footer& on cover page. Revise Table of Contents and page numbers. Revise Section 13, Drug & Alcohol Free Workplace, related to marijuana law updates. Revise Section 26 for Remote Work changes. Add Section 28 for Lactation Breaks per law updates. Add Section 34 for the Longevity Pay benefit. Revise Section 40 to adjust tiers for vacation 0-4 years, 20-21, 22-23, and 24+ years. Revise Section 47 Health Insurance Coverage, to better reflect the employer-employee premium cost share with the move to age-banded premiums and added the monthly employee premium amounts. Revise Section 65 to reflect changes to Paid Leave Donation, allowing 16 hours of sick and a proration of total donated time amongst contributing employees. Atta ched is a revised ERMU Employee Handbook reflecting the proposed changes. ATTACHMENTS: Revised – ERMU Policy – G.4f1 - Employee Handbook Page 1 of 1 49 EMPLOYEE HANDBOOK 13069 Orono Parkway ELK RIVER, MN 55330 June 2022 Office: 763-441-2020 June 2022 48696398v4 50 Table of Contents RECEIPT AND ACKNOWLEDGMENT ..................................................................... v 1. IMPORTANT NOTICE ABOUT THIS HANDBOOK ................................... 1 PERSONNEL RECORDS................................................................................... 1 ACCESS TO PERSONNEL RECORDS ........................................................... 1 GENERAL WORKPLACE POLICIES ........................................................................ 4 2. OPEN DOOR POLICY ....................................................................................... 4 3.EQUAL EMPLOYMENT OPPORTUNITY .................................................... 5 4. DISABILITY ACCOMMODATION................................................................. 5 5. HARASSMENT PROHIBITED ......................................................................... 6 ................................... 6 ...................................................................................................... 7 ................................................................ 7 ......................................................................... 8 ............................................................................... 8 6. BUSINESS CONDUCT ....................................................................................... 8 7. ETHICS, GIFTS AND CONFLICTS OF INTEREST ..................................... 9 8. EMPLOYMENT OF RELATIVES ................................................................... 9 9. WHISTLEBLOWERS ...................................................................................... 10 10. WAGE INFORMATION .................................................................................. 10 11. WEAPONS PROHIBITED ............................................................................... 11 12. EMPLOYEE SAFETY ...................................................................................... 11 13. COMMITMENT TO A DRUG AND ALCOHOL-FREE WORKPLACE ................................................................................................... 12 14. EXPOSURE TO HAZARDOUS SUBSTANCES ........................................... 14 15. SOLICITATION AND DISTRIBUTION........................................................ 14 ................................................................................................... 15 ........................................................................................................... 15 ................................................................................................... 15 ......................................................... 15 16. ELECTRONIC COMMUNICATIONS: INTERNET, E-MAIL, AND SOCIAL MEDIA ............................................................................................... 16 .............................................. 16 ................................................................................... 18 17. SUPPLEMENTAL EMPLOYMENT .............................................................. 18 ......................................................................... 18 18. REPORT OF PERSONNEL CHANGES ........................................................ 19 19. ATTENDANCE.................................................................................................. 19 20. DISCIPLINE, DISMISSAL & LAY OFF ....................................................... 19 ............................................................................................................. 19 .................................................................................... 20 i June 2022 48696398v4 51 ................................................................................ 20 21.JOB POSTING ................................................................................................... 20 22. PERFORMANCE REVIEWS .......................................................................... 21 ....................................................................... 21 WAGES AND HOURS .................................................................................................. 21 23. WORK HOURS, OVERTIME, AND COMPENSATORY TIME ............... 21 .................................................................................................... 21 ........................................................................................... 22 24. EMPLOYEE CLASSIFICATIONS ................................................................. 23 ............................................................................ 24 ........................................................................... 24 ........................................................................................ 24 .............................................................................................. 24 ...................................................................................... 24 ................................................................................................ 24 ........................................................................................... 25 25. TIME REPORTING POLICY ......................................................................... 25 .................................................................................................... 25 .................................................................................................. 25 ........................................................................................................... 25 ............................................................................. 26 .................................................. 26 ........................................................................................................... 26 26. REMOTE WORK POLICY ............................................................................. 27 27. FAIR PAY POLICY .......................................................................................... 31 All Employees ..................................................................................................... 31 Protection of Employee Rights ......................................................................... 31 Record Your Time And Review Your Pay Stub ............................................. 31 How to Raise a Question or Concern about your Pay or a Payroll Deduction ............................................................................................................ 31 Regular Attendance is an Essential Job Function and Your Attendance Record is a Performance Issue ..................................................... 32 Non-Exempt Employees .................................................................................... 32 On Call Time For Non-Exempt Employees ..................................................... 33 Exempt Employees ............................................................................................. 33 Salary Basis of Compensation .......................................................................... 33 Attendance and Recording Time for Exempt Employees .............................. 33 OnCall Time For Exempt Employees ............................................................. 33 Deductions from an Exempt Employee’s Salary............................................. 34 Important Definitions. ....................................................................................... 34 Permissible Deductions from Salary. ............................................................... 34 Impermissible Deductions from Salary. .......................................................... 35 Permissible Deductions from An Exempt Employee’s Leave Bank. ............. 35 ii June 2022 48696398v4 52 Questions or Concerns about This Fair Pay Policy ........................................ 35 28.BREAKS FOR NURSING MOTHERS TO PUMP BREAST MILK .......... 35 29. CALL OUT TIME: REGULAR FIELD WORKERS .................................... 36 30. ON-CALL ........................................................................................................... 36 ..................................................................................... 36 Required On-Call Rotation for Regular Field Workers ................................. 36 Residency Rule ................................................................................................. 36 Response Time ................................................................................................. 36 Take Home Vehicles ........................................................................................ 37 Compensation for On-Call Time ..................................................................... 37 Compensation for Actual Response Time.......................................................38 Call out time ..................................................................................................... 38 ........................................................................... 38 Superintendents. .............................................................................................. 38 Take Home Vehicles ........................................................................................ 39 31. ELECTRIC RE-CONNECT TIME ................................................................. 39 32. STORM PAY ...................................................................................................... 39 33. LEAD PAY DIFFERENTIAL .......................................................................... 39 34. LONGEVITY PAY ............................................................................................ 40 35. PAYCHECK DEDUCTIONS ........................................................................... 41 36. PAYCHECKS .................................................................................................... 41 37. NIGHTWORK REST TIME ............................................................................ 41 38. TRAVEL AND TRAINING TIME .................................................................. 42 BENEFITS ...................................................................................................................... 43 39. GENERAL BENEFITS ..................................................................................... 43 40. VACATION ........................................................................................................ 43 41.PURCHASED VACATION TIME (PVT)....................................................... 44 42. PAID SICK LEAVE .......................................................................................... 45 43. PAIDHOLIDAYS ............................................................................................. 46 44. EMPLOYEE CLOTHING ................................................................................ 47 45. HEALTH CARE SAVINGS PLAN ................................................................. 48 46. 457 DEFERRED COMPENSATION .............................................................. 49 ........................................................... 49 47. HEALTH INSURANCE COVERAGE ........................................................... 49 48. DENTAL INSURANCE .................................................................................... 50 49. LONG-TERM DISABILITY ............................................................................ 50 50. LIFE INSURANCE ........................................................................................... 50 51. VISIONINSURANCE....................................................................................... 50 52. HOME COMPUTER LOAN POLICY ........................................................... 51 53. EDUCATIONAL ASSISTANCE ..................................................................... 51 LEAVES OF ABSENCE ............................................................................................... 52 iii June 2022 48696398v4 53 54. PARENTING LEAVE ....................................................................................... 53 55.MINNESOTA SICK FAMILY MEMBER OR SAFETY LEAVE ............... 53 56. SCHOOL ACTIVITIES LEAVE POLICY..................................................... 54 57. BONE MARROW AND ORGAN DONATION LEAVE .............................. 55 58. NATIONAL GUARD AND RESERVE LEAVE ............................................ 55 59. MILITARY LEAVE FOR UNIFORMED SERVICE.................................... 55 60. JURY/WITNESS DUTY LEAVE .................................................................... 56 61.PERSONAL LEAVE DAY ............................................................................... 56 62. BEREAVEMENT LEAVE ............................................................................... 56 63. GENERAL LEAVE ........................................................................................... 57 64. VOTING LEAVE; SERVICE AS ELECTION JUDGE ................................ 57 65.PAID LEAVE DONATION .............................................................................. 57 RECEIPT AND ACKNOWLEDGMENT ................................................................... 61 46703186v1 iv June 2022 48696398v4 54 RECEIPT AND ACKNOWLEDGMENT (EMPLOYEE REFERENCE COPY) By signing this receipt, I acknowledge that I have received a copy of the Elk River Municipal Utilities Employee Handbook (the “Handbook”). This Handbook and the policies contained or referenced in the Handbook supersede and replace previously-issued handbooks, contrary oral or written statements of employment policy, and contrary employment practices. I understand that the Employee Handbook may be amended at any time, with or without notice. I understand that I do not have a protected property interest in my employment with the Utilities. I also understand that neither this Handbook nor any provision in it creates a contract of employment for any particular duration between the Utilities and me. Further, I understand that nothing in this Handbook creates a contract with specific terms between the Utilities and me. I acknowledge that it is my responsibility to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. I also understand that any violation by me of the Utilities’ rules, regulations, policies, practices, or standards is just cause for discipline, up to and including termination of my employment. Date Print or Type Name Employee Signature 46703186v1 v June 2022 48696398v4 55 1. IMPORTANT NOTICE ABOUT THIS HANDBOOK This Employee Handbook sets forth general policies of the Elk River Municipal Utilities (the “Utilities”) and is intended to help you get to know the Utilities and your responsibilities. The Handbook applies to all Utilities employees. The Utilities Commission shall, in accordance with its statutory responsibility to manage the Utilities, be responsible for the maintenance and periodic revision of personnel policies, the Utilities’ personnel program, and this Handbook. The Utilities is committed to complying with all applicable law. If it comes to the attention of the Utilities that any provision of this Handbook is inconsistent with applicable law, the Utilities will comply with applicable law. Each employee of the Utilities is responsible to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. This Handbook is designed to answer basic questions about the Utilities’ employment policies and procedures and to serve as a resource when you may need information. This Handbook cannot cover every situation, and the Utilities reserves the right to interpret and apply this Handbook and to address each situation as it determines appropriate. If you have any questions about the information in this Handbook, or if the Handbook does not appear to address your concern, please contact your immediate supervisor, another Utilities manager or Director, or theUtilities’ Human Resources Representative. No employee has a protected property interest in his or her employment with the Utilities, and nothing in or about this Handbook creates a contract of employment for any particular duration between the Utilities and any Employee. Further, to be clear, nothing in this Handbook creates a contract with specific terms between the Utilities and any employee. Violation of the Utilities’ rules, regulations, policies, standards or practices is just cause for discipline, up to and including termination of employment. PERSONNEL RECORDS Certain personnel records are required by law, and others are needed for the Utilities benefits and administrative purposes. Please be sure that all personal information in your file is accurate and up-to-date. If your personal information changes, please let Human Resources know. ACCESS TO PERSONNEL RECORDS Minnesota Law provides employees with certain rights relating to their personnel records. (See Minnesota Statutes Sections 181.960 to 181.965). The Utilities will comply with all 1 June 2022 48696398v4 56 requirements of the law. As a new or continuing employee of the Utilities you are put on notice of the following rights and remedies provided by Minnesota law. 1. Employees, upon making a good faith written request, have the right to review their personnel record, as defined by the statute, up to once every six months. The record must be made available during the Utilities’ normal hours of operation, but not necessarily the employee's normal working hours, and at the employee's place of employment or other nearby location. The Utilities may require that the review be done in the presence of a Utilities representative. If employees so choose, they may make a written request for a copy of the personnel record which will be provided free of charge. 2. Former employees, upon making a good faith written request, have the right to receive a copy of their personnel record, as defined by the statutes, once each year after separation of employment for as long as the personnel record is maintained. The personnel records must be provided free of charge. 3. The Utilities must comply with the written request to review or provide a copy of the personnel records no later than seven working days after receipt of the written request, or no later than fourteen days after the receipt of the request if the personnel record is located outside of the state. 4. Employees and former employees have the right to submit a written position statement to the personnel record if the record contains any disputed information which the employee/former employee and the Utilities cannot agree to remove or revise. The written position statement may not exceed five written pages. The written position statement must be included along with the disputed information in the record for as long as the disputed information is maintained in the personnel record. A copy of the written position statement must also be provided to any other person who receives a copy of the disputed information from the Utilities after the written position statement is submitted. 5. If the Utilities and the employee have fully complied with the requirements related to disputed information, which are described in the paragraph immediately above, no communicationby the employee or the Utilities of information contained in the personnel records may be made the subject of any common law civil action for libel, slander, or defamation, unless the Utilities communicates information with knowledge of its falsity or with reckless disregard of its falsity. 6. If the Utilities refuses to comply with the personnel record statutes, employees and former employees may bring a civil cause of action seeking to compel compliance and may recover actual damages plus costs for a violation of the statutes. In addition, the Minnesota Department of Labor & Industry can enforce the statutes and seek additional remedies and impose fines. 7. The Utilities may not retaliate against an employee for asserting the rights or seeking the remedies described above. Employers that retaliate against employees for exercising the rights or remedies described above may be liable for actual damages, back 2 June 2022 48696398v4 57 pay, reinstatement, costs, attorneys' fees and other make whole relief. In addition, the Minnesota Department of Labor & Industry may seek additional remedies and impose fines. 8. Information that properly belongs in the employee's personnel record, as defined in the statute, which is omitted from the personnel record provided by the Utilities to the employee may not be used by the Utilities in certain legal proceedings including administrative, judicial or quasi-judicial proceedings, unless the Utilities did not intentionally omit the information and the employee is given a reasonable opportunity to review the omitted information prior to its use. 3 June 2022 48696398v4 58 GENERAL WORKPLACE POLICIES 2. OPEN DOOR POLICY During your employment with the Utilities you may have certain concerns, such as an issue, suggestion, complaint, or question, about your job, your working conditions or some related matter. We strongly encourage you to raise any such concerns to Utilities management, so that we will have the benefit of your input on the matter and you will have the benefit of our best efforts to address any concerns you might have. In addition, you are required to report any conduct in the workplace or related to the Utilities that you believe is illegal, and to ask questions if you are not sure whether any particular conduct is legal or appropriate. Please also see the discussion under the Whistleblower Policy in this Handbook. Anyone who fails to report a known or suspected violation of law, regulation or internal policy may be considered to have committed an equally serious violation. That individual may be subject to corrective and/or disciplinary action, up to and including discharge. Under this Open Door Policy, we ask that you first raise any concern about your employment or the workplace with your immediate supervisor, if possible, and follow the steps below to have your concerns addressed. (Please note that issues of harassment should be addressed in accordance with the Utilities’ Harassment Policy in this Handbook.) 1. If you have any concern about any aspect of employment with the Utilities or with the Utilities’ business, please voice your concerns to your immediate supervisor as soon as possible. In most cases your immediate supervisor will be the person in the best position to address your concerns. The supervisor and the Utilities will make every effort to keep the matter confidential to the extent possible within the confines of the rights and obligations of you and the Utilities. 2. If for some reason you are not comfortable discussing your concerns with your immediate supervisor, choose another Utilities manager or Director with whom to discuss your concerns. Again, he/she will make every effort to keep the matter confidential to the extent possible. 3. Alternatively, or in addition, you may feel free to contact the Utilities’ Human Resources Representative. The Utilities strictly prohibits retaliation or reprisal of any kind against an employee who makes a good faith report regarding a known, or suspected, violation or concern regarding any law. 4 June 2022 48696398v4 59 3. EQUAL EMPLOYMENT OPPORTUNITY The Utilities pledges its best efforts to avoid discrimination against any employee or applicant for employment because of race, color, creed, religion, sex, sexual orientation, gender identity, age, national origin, marital status, familial status, pregnancy, genetic information, veteran status, status with regard to public assistance, disability, status as a patient enrolled in the state of Minnesota medical marijuana registry program or an enrolled patient's positive drug test for marijuana, or any other status that may be protected by state or federal law. The Utilities prohibits discrimination against and harassment of any employee or job applicant on the basis of protected class status. Employees who participate in discrimination in violation of this Policy are subject to discipline up to and including termination. Retaliation against any employee for making a good faith complaint under this Policy or for assisting with investigations of complaints made under this Policy is also strictly prohibited. Any person who feels that he/she has experienced discrimination or harassment in violation of law and/or this Policy should immediately contact his/her supervisor, the Human Resources Representative, and/or any Utilities manager or Director. Any manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. 4. DISABILITY ACCOMMODATION The Utilities is committed to providing reasonable accommodation, as appropriate, for qualified employees who have disabilities and for health conditions related to an eligible employee’s pregnancy, childbirth, or related health conditions. An employee who believes that he or she requires an accommodation due to a disability, pregnancy or childbirth in order to perform the essential functions of his or her position should so advise his or her immediate supervisor, another Utilities manager or Director, or the Human Resources Representative. We ask that this request be made in writing. On receipt of a reasonable accommodation request, the Utilities will engage in an interactive process with the employee to determine if the employee is entitled to a reasonable accommodation and if one can be granted without creating an undue hardship for the Utilities. The Utilities reserves the right to request medical or other certification of the need for the accommodation in accordance with applicable law. Retaliation against any individual for making a good faith complaint under this Equal Employment Opportunity/Disability Accommodation policy, for opposing discrimination, or for participating in an investigation of any claim regarding discrimination or disability accommodation is strictly prohibited. 5 June 2022 48696398v4 60 If you feel that you have experienced such retaliation, you should follow the Reporting Procedure outlined above in the Open Door Policy. Any manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. 5. HARASSMENT PROHIBITED All Utilities employees have a right to work in an environment free from discrimination and intimidation, including harassment. The mission of the Utilities is best accomplished in an atmosphere of professionalism that in turn is supported by mutual respect and trust. The Utilities expects all employees to work toward this goal. Harassment based on a person’s race, color, creed, religion, national origin, sex, sexual orientation, gender identity, disability, age, marital status, genetic information, status with regard to public assistance, veteran status or any other protected class status may be unlawful and is strictly prohibited by the Utilities. Harassment consists of unwelcome conduct based on a person’s race, color, creed, religion, national origin, sex, sexual orientation, gender identity, disability, age, marital status, genetic information, status with regard to public assistance, veteran status, or any other protected class status that is interfering with your job performance, or creating an intimidating, hostile, or offensive work environment; or when submission to such conduct is: a condition of employment; or a basis for an employment decision affecting your job. One form of prohibited harassment is sexual harassment. Sexual harassment includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact or other verbal or physical conduct or communication of a sexual nature that is interfering with your job performance, or creating an intimidating, hostile, or offensive work environment; or when submission to such conduct is made: a condition of employment; or a basis for an employment decision affecting your job. The Utilities prohibits sexual harassment of any type and in any form, including verbal, physical, and visual harassment. Some examples of conduct that may be sexual harassment include: use of offensive or demeaning terms that have sexual connotations; 6 June 2022 48696398v4 61 telling suggestive jokes or stories and conversations about sexual exploits, sexual preferences, and desires; jokes, cartoons, pictures, objects or stories that have a sexual content; threats, demands or suggestions that an employee’s work status, advancement or other terms and conditions of employment are contingent upon the employee’s toleration of or acquiescence to unwelcome sexual advances; repeated, unwelcome sexual flirtations, propositions, or invitations to social engagements; or unwelcome and objectionable physical contact or physical proximity. The Utilities prohibits harassment of any type or form. This policy prohibits same sex harassment as well as harassment by members of the opposite sex. In addition, this policy prohibits sexual harassment and any other form of harassment by any individual, including Utilities managers, employees, co-workers, and third parties such as clients, elected officials, consultants, contractors or vendors who deal with the Utilities’ employees. The Utilities wants to resolve any problems, but it can do so only if it is aware of them. The Utilities encourages any individual who believes he/she is being harassed to report any and all incidents of perceived harassment. If at any time you feel you are being harassed, you should immediatelycontact: your supervisor; and/or another Utilities manager or Director (including any superintendent of the Utilities or other representative as defined in Section 24 of this Handbook); and/or the Human Resources Representative. Any Utilities manager or Director or other person who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. Your report of harassment may be oral or written; in either case, it is important that you state that your report is being made under this harassment policy, or that it concerns harassment. You may choose to whom you make the report; that choice, however, must be made from the list of individuals named above. 7 June 2022 48696398v4 62 The Utilities will promptly investigate harassment complaints as appropriate, and take other appropriate action. Any person who is found to have committed prohibited harassment will be subject to corrective action up to and including termination. The Utilities will strive to protect the confidentiality of information the Utilities receives pursuant to this policy to the extent feasible and to the extent permitted by law. Retaliation against any individual for making a good faith complaint under this policy, for opposing harassment, or for participating in an investigation of any claim regarding harassment or inappropriate behavior is strictly prohibited. If you feel that you have experienced such retaliation, you should follow the Reporting Procedure outlined in this policy. Any questions about this policy or any related matter should be referred to the Human Resources Representative or any Utilities manager or Director. 6. BUSINESS CONDUCT In accepting employment with the Utilities, employees become its representatives to the public and are responsible for assisting and serving the customers for whom they work. An employee’s primary responsibility is to serve the customers of Elk River Municipal Utilities. The values of Elk River Municipal Utilities - ethics, open and honest communication, maintaining a positive workplace for employees, and serving customers – must guide our daily business activities. We strive for and take individual responsibility for ethical behavior – not only because it is the right thing to do, but also because it is a fundamental value in public services. Unacceptable conduct consists of any act or omission that, in the business judgment of Elk River Municipal Utilities, significantly departs from expected standards of behavior affecting the workplace. Some examples of unacceptable conduct include, but are not limited to: 1. Not performing assigned duties to the best of the employee’s ability at all times. 2. Not rendering prompt and courteous service to customers and the public at all times. 3. Not maintaining courtesy and professionalism towards other employees. 4. Unauthorized possession of Utilities property. 5. Falsifying timekeeping records or any other Utilities records. 6. Violating the Utilities’ work rules regarding alcohol and illegal drugs. 7. Violating the Utilities’ rules regarding Electronic Communications. 8. Fighting or threatening violence in the workplace. 8 June 2022 48696398v4 63 9. Negligence or improper conduct leading to damage of employer-owned or customer-owned property. 10. Insubordination or other disrespectful conduct, including failing to respond to warnings or directives to improve conduct or performance. 11. Violation of safety or health rules. 12. Sexual or other unlawful or unwelcome harassment. 13. Unauthorized possession of firearms or any object that could be considered a dangerous weapon (or other violation of the Utilities’ weapons policy). 14. Excessive absenteeism or any absence without reasonable notice. 15. Unauthorized disclosure of business secrets or confidential information. 16. Misuse of Utilities resources. 17. Any other behavior unacceptable to Utilities management or any conduct inconsistent with the policies in this Handbook or the rules, practices or standards of the Utilities. All employees have a personal responsibility to report any behaviors or practices that may constitute unacceptable conduct under this policy. Such conduct may risk our future success. If you have any concerns or questions, discuss them with the Human Resources Representative, your supervisor or any Utilities manager or Director. These concerns will be treated confidentially (to the extent possible) and with high priority. 7. ETHICS, GIFTS AND CONFLICTS OF INTEREST Utilities employees shall not use their official position for personal gain, engage in any business or transaction or have a financial interest, direct or indirect, which is in conflict with the proper performance of their official duties. Utilities employees must scrupulously avoid any activities that suggest a conflict of interest between their private interests and Utilities responsibilities. Employees shall not accept, either directly or indirectly, any money, property, gift, gratuity, reward, loan, fee, discount, or special consideration or special accommodation from any vendor or potential vendor to the Utilities or the City of Elk River, or that arises from or is offered because of their employment or any activity connected with their employment with the Utilities. 8. EMPLOYMENT OF RELATIVES It is generally the policy of the Utilities not to employ relatives or cohabitants of current employees or Utilities Commissioners. The purpose of this policy is to prevent conflicts of interest, the appearance of such conflicts, undue influence over an individual’s employment, and distraction from workplace productivity and safety. Occasional exceptions may be made to this general policy for legitimate business reasons in the discretion of the Utilities; provided, however, that in no event will relatives or cohabitants be permitted to be in a direct reporting relationship at the Utilities. “Relative” for purposes 9 June 2022 48696398v4 64 of this policy includes parent, marital or non-marital domestic spouse, sibling, child and step-child, grandparent, grandchild, parent-in-law, a person for whom the employee is a legal guardian, first cousin, sibling-in-law, son/daughter-in-law, niece/nephew, and aunt/uncle. 9. WHISTLEBLOWERS Pursuant to Minn. Stat. § 181.932, Elk River Municipal Utilities will not discharge, discipline, threaten, or otherwise discriminate against, or penalize an employee regarding the employee’s compensation, terms, conditions, location, or privileges of employment because: a. The employee, or a person acting on behalf of any employee, in good faith, reports a violation or suspected violation of any federal or state law or rule adopted pursuant to law to the Utilities or to any governmental body or law enforcement official; b. The employee is requested by a public body or office to participate in an investigation, hearing, inquiry; or c. The employee refuses the Utilities’ order to perform an action that the employee has an objective basis in fact to believe violates any State or Federal law or rule regulation adopted pursuant to law and the employee informs the Utilities that the order is being refused for that reason. The Utilities will make reasonable efforts to preserve as confidential the identity of an employee making a report under this policy to the extent feasible and consistent with applicable law. Any Utilities manager or Director who receives a report under this policy is required to communicate the matter to the Human Resources Representative immediately. Employees shall not make any statements or disclosures pursuant to this section knowing that they are false or that they are in reckless disregard of the truth. This section does not permit disclosures that would violate federal or state law or diminish or impair the right of any person to the continued protection of confidentiality or communications provided by common law. 10. WAGE INFORMATION Employees working for the Utilities, or living, in Minnesota have the right, under Minn. Stat. §181.172, to choose to disclose their own wages and to discuss another employee’s wages that have been voluntarily disclosed by that employee. In addition, regardless of location, employees who are not managers or supervisors also have these rights. An employee does not, however, have the right to disclose to a competitor of the Utilities or to any other person any wage information regarding other employees of the Utilities that 10 June 2022 48696398v4 65 he or she has learned in the course of performing job duties that involve access to confidential and private information about employees. The Utilities shall not require an employee to agree to give up his or her wage disclosure rights as a condition of employment, to sign any document that purports to deny an employee his or her wage disclosure rights, or take any retaliatory or other adverse employment action against an employee for exercising his or her wage disclosure rights. A copy of Minn. Stat. §181.172 can be obtained from Human Resources. §181.172 permits a civil cause of action for a violation of the statute and, in any such action, the court may, if found appropriate, order job reinstatement, back pay, restoration of lost service credit, and the expungement of adverse records. 11. WEAPONS PROHIBITED Elk River Municipal Utilities prohibits all employees from carrying or possessing firearms or other weapons while acting in the course and scope of their employment for the Utilities. Carrying or possessing firearms or weapons in Utilities vehicles is also prohibited. This policy extends to any situation in which employees are acting in the course and scope of their employment including while utilizing personal vehicles or attending work-related training. However, it is not a violation of this policy to lawfully carry a firearm in a personal vehicle that is lawfully encased andsecured. Employees may be disciplined for violations of this policy up to and including termination of employment. A narrow exception is made to this policy, which is applicable only in connection with attendance at the Minnesota Municipal Utilities Underground School (“MMUA Underground School”) or the Minnesota Municipal Utilities Overhead School (“MMUA Overhead School”). Both of these events are held at the MMUA Training Center in Marshall, MN. An employee is not prohibited from carrying or possessing a firearm or other appropriate weapon in a situation where, in connection with his or her Utilities employment, the employee is using a Utilities vehicle while attending MMUA Underground School or MMUA Overhead School --- if and only if the employee’s participation in the MMUA Underground School or MMUA Overhead School includes a hunting or target-shooting activity, and provided that the employee is otherwise lawfully permitted to carry and possess a firearm. This exception applies only for the duration of the specific MMUA event and the period of the employee’s travel to and from the event. 12. EMPLOYEE SAFETY Safety is of paramount importance to the Utilities. All employees and managers must follow the regulations and laws of the State of Minnesota and rules of the Utilities governing the safety of employees and the public. If employees have questions or concerns about issues affecting safety, they should immediately discuss them with their supervisor, 11 June 2022 48696398v4 66 any Utilities manager or Director, the Human Resources Representative, or the relevant public safety authority. Employees are required to report accidents resulting in personal injuries and/or vehicle, equipment, or property damage to their supervisor immediately. Personal Injuries. Immediately report to your supervisor all accidents and injuries occurring within the course of your employment. The supervisor shall submit a First Report of Injury and a Supervisor’s Report of Injury Form to the Human Resources Representative within twenty-four (24) hours of receiving such report from you. - Vehicle, equipment, or property damage accidents. Immediately report to your supervisor all damage to Utilities property. The supervisor should submit documentation regarding the incident to the Utilities’ Finance Manager within twenty-four (24) hours of the time of the damage or accident. A copy of the Minnesota Motor Vehicle Accident Report must be submitted for all vehicle accidents. The Utilities will provide necessary safety equipment to employees. This may include: One pair of safety glasses at the time of employment. The employee shall provide the correct prescription for the safety glasses. The Utilities will pay the cost of new safety lenses, upon a change in the prescription. If needed, frames will be replaced as needed contingent upon supervisor approval. Safety glasses that are broken or damaged while the employee is on the job will be replaced by the Utilities. 13. COMMITMENT TO A DRUG AND ALCOHOL-FREE WORKPLACE The Utilities is committed to providing a safe, healthy, and productive drug and alcohol- free workplace. To promote this goal, employees and others are required to report to work in appropriate mental and physical condition to perform their jobs in a satisfactory manner. Being under the influence of alcohol or illegal drugs (as classified under federal, state, or local laws), including marijuana, while on the job poses serious health and safety risks to employees and members of the public/others, which is not tolerated. As a condition of employment employees must adhere to the terms and conditions of this policy. Prohibited Conduct The Utilities expressly prohibits the following activities at any time that the employee or other person is either (1) on the Utilities’ facilities (whether or not the employee is working) or (2) on duty or conducting Utilities business (either on or away from the Utilities’ 12 June 2022 48696398v4 67 facilities) (the locations in (1) and (2) above are collectively referred to as the “Workplace” under this policy): The use, abuse, or being under the influence of alcohol, illegal drugs, or other impairing substances. The possession, sale, purchase, transfer, or transit of any illegal or unauthorized drug, including prescription medication that is not prescribed to the employee or drug-related paraphernalia. The illegal use or abuse of prescription drugs. While the use of marijuana has been legalized under the laws of some states for medicinal uses, it remains an illegal drug under federal law and its use in, and as it impacts, the Workplace is prohibited by the Utilities’ policy. The Utilities does not discriminate against employees on the basis of their off-duty use of medical marijuana that is in compliance with any applicable state medical marijuana law. However, employees may not consume or be impaired by marijuana while in the Workplace, even if the employee has a valid prescription for medical marijuana. Nothing in this policy is meant to prohibit the appropriate use of over-the-counter medication or other medication that is legally prescribed to the employee, to the extent that it does not impair an employee's job performance or safety or the safety of others. Employees who take over-the-counter medication or other medication legally prescribed to the employee should inform their immediate supervisor if they believe the medication may impair their job performance, safety, or the safety of others or if they believe they need a reasonable accommodation before reporting to work while under the influence of that medication. For more information on how to request a reasonable accommodation, please refer to the Utilities’ Reasonable Accommodation policy. A violation of this policy is subject to disciplinary action, up to and including termination of employment or contractual relationship, and/or required participation in a substance abuse rehabilitation or treatment program as may be provided by applicable state law. Such violations may also have legal consequences. Utilities-Sponsored Events From time to time, the Utilities may sponsor in-person or remote social or business-related events at which alcohol is served and/or usage is permitted. This policy does not prohibit the use or consumption of alcohol at such events. However, if employees choose to consume alcohol at such events, they must do so responsibly and maintain their obligation to conduct themselves properly and professionally at all times with colleagues and/or current or prospective clients. Workplace Searches and Inspections In order to achieve the goals of this policy and maintain a safe, healthy, and productive work environment, the Utilities reserves the right at all times to search employees at the Workplace, as well as their surroundings and possessions, for substances or materials in violation of this policy. This right extends to the search or inspection of clothing, desks, bags, briefcases, containers, packages, boxes, lunch boxes, and any vehicles on or in the 13 June 2022 48696398v4 68 Workplace where prohibited items may be concealed. Employees should have no expectation of privacy while in the Workplace, except in restrooms, locker rooms, or dressing areas. Drug Testing Applicants and Utilities employees are subject to certain kinds of drug testing in accordance with applicable law and Utilities policy. Separate policies are maintained for CDL drivers and for other employees and are distributed at the start of employmentand periodically throughout employment. Copies of the Utilities’ drug testing policies are available upon request from Human Resources and the Administrations Director. 14. EXPOSURE TO HAZARDOUS SUBSTANCES Any employee routinely exposed to hazardous substances or harmful physical agents as defined in the Minnesota Employee Right to Know Act (M INN. S TAT. § 182.675) shall be trained before being assigned or reassigned work exposing the employee to such substances or agents and shall be given training annually thereafter. Training shall include an explanation of how and where information about hazards is stored in the workplace, how the hazards are labeled, and where to obtain specific information. The supervisor (or other designee) shall provide for such training and for compliance with the Minnesota Employee Right to Know Act, including the establishment of specific policies to insure compliance with the state law and regulations. An employee acting in good faith has the right to refuse to work under conditions which the employee reasonably believes present an imminent danger of death or serious physical harm to the employee. 15. SOLICITATION AND DISTRIBUTION The Utilities intends to establish and maintain a safe and productive business environment and to prevent interference with the work of its employees. This policy prohibits solicitation and the distribution of literature on Utilities property by non-employees. In addition, this policy addresses the limited circumstances under which solicitation and the distribution of literature on Utilities property by employees will be permitted, and it addresses the wearing and display of items, posting material on Utilities bulletin boards, and certain uses of the Utilities’ computer, email, and other resources. The term solicitation means any oral or electronic communication that encourages, advocates, demands, or requests any position or action or contribution of money, time, effort, personal involvement or membership in any organization or the sale or purchase of any merchandise or service. The term distribution means posting, handing out, or otherwise distributing any written material in hard copy. 14 June 2022 48696398v4 69 Non-employees of the Utilities are strictly prohibited from engaging on Utilities premises in: i) trespassing; ii) the solicitation of any person; and iii) the distribution of any written material. Any violation or attempted violation of this policy by a non-employee should be reported immediately to the on-site supervisor. Employees are prohibited from solicitation, for any purpose, during the working time of any employee involved in making or receiving the solicitation. Employees are prohibited from distribution of written material in any work area at all times. Employees are also prohibited from distributing written material anywhere during the working time of any employee actively engaged in the distribution. This policy does not prohibit an employee from performing solicitation or distribution in a non-work area on behalf of a third party that is not engaged in commercial, for-profit, or political activity, provided the employee has received the advance approval of the on-site supervisor to engage in such solicitation or distribution. Utilities Bulletin Boards. The Utilities in its discretion may permit employees to distribute written material by posting on Utilities bulletin boards in accordance with this policy, provided that any material for such posting must be reviewed and approved in advance by a Utilities manager or Director, who may consult with the Human Resources Representative before making a decision whether or not to allow the posting. Solicitation and Distribution on Utilities Computer and E-Mail Systems. Employees and non-employees are prohibited from using Utilities computer systems and other property and resources, including the Utilities e-mail system, for solicitation or distribution, except in connection with a Utilities-sponsored activity or, with advance approval of the on-site supervisor, on behalf of a third party that is not engaged in commercial, for-profit, or political activity. Any employee in violation of this policy will be subject to disciplinary action up to and including discharge. 15 June 2022 48696398v4 70 16. ELECTRONIC COMMUNICATIONS: INTERNET, E-MAIL, AND SOCIAL MEDIA This policy covers all types of electronic communications. All Utilities computers, software, servers, computer systems, cell phones and telephone systems and other electronic services arranged for by the Utilities (“Electronic Communications Systems” or “ECS”) are the property of the Utilities and are intended and expected to be used for Utilities business. While occasional use of these systems for personal, non-business use is acceptable, employees must demonstrate a sense of responsibility and may not abuse such privileges. Communications of any kind by a Utilities employee over the Utilities’ ECS, whether work-related or personal, is subject to monitoring and review by the Utilities at any time, with or without notice or permission. Employees should have no expectation of privacy in the use of these systems. The use of passwords on these systems does not mean that messages stored on them are private or confidential, either from the Utilities or others. This policy covers all usage and communications by employees in, on or over the Utilities’ Electronic Communications Systems, including e-mail, voice-mail, Internet and social media, whether such usage or communications are from the Utilities’ offices or from a remote location. This policy also covers electronic communications not done in, on, or over the Utilities’ ECS but in which the employee identifies himself or herself as a Utilities employee. Violations of this policy may result in discipline, up to and including termination. All communications sent by employees over the Utilities’ ECS must be respectful in tone and professional. Communications over the Utilities’ ECS may not be used for transmitting, retrieving or storing any communications of a discriminatory or harassing nature, derogatory to an individual or group, obscene, or which are of a defamatory or threatening nature. Such communications should not be used for “chain letters” or for any purpose which is illegal or against Utilities policy. Employees must respect other people’s electronic communications. Employees may not obtain unauthorized access to another’s e-mail or voice-mail messages, except pursuant to direction from a Utilities manager or Director for the purposes specified above. Employees may not use the e-mail or voice-mail systems in a way that causes congestion on the systems or that significantly interferes with another employee’s ability to use the systems. In general, the Utilities encourages the use of e-mail and other available electronic communications with residents, consultants, and others as a means of providing services more effectively and efficiently. Internet e-mail is provided and is intended for the Utilities’ business use. 16 June 2022 48696398v4 71 Tact counts. Humor might not work. Attempts at humor in electronic communications are especially difficult to carry offsuccessfully, so be careful and “when in doubt, leave it out.” Take extra steps to make your intent clear in written communications. Never gossip, don’t provide confidential personal information about yourself or someone else, and refrain from emotional responses. Do not communicate with residents, consultants or others using e-mail without first obtaining their consent to email communication. Employees at all times must use discretion in communicating sensitive information and should select communications methods that will protect the confidential and/or sensitive nature of such information. Communications over the Utilities’ ECS may be identifiable and attributable to the Utilities. Do not send electronic communications that you would not send, or would not be authorized to send, over Utilities letterhead. The Utilities’ ECS may not be used to participate in social media or other electronic forums except for approved Utilities business, professional development, or business development purposes. TheUtilities’ ECS may not be used to access pornographic or obscene material or other offensive or inappropriate content. Internet access is provided primarily for you to retrieve information. Do not use the ECS to post information, comments or statements, except for prior-approved Utilities business, professional development or Utilities business development purposes. An Internet site may request information about you in order to build a user profile or mailing list. Refuse any such requests when using the Utilities’ ECS. Respond “no” to any suggested download, upgrade, or enhancement of software. Do not make any purchases or access a web site that charges a fee, except for approved Utilities business purposes. Employees may not send electronic communications over the ECS that attempt to hide the identity of the sender or that represent the sender as someone else or someone from a different Utilities or a company. Employees must respect all copyrights and intellectual property rights of others’ materials, and may not copy, retrieve, modify or forward copyrighted, patented or trademarked materials except as permitted by the owner or as a single copy for reference use only. 17 June 2022 48696398v4 72 Internet and other ECS usage is not confidential. The Utilities receives detailed monthly reports on Internet usage by individual employees and the Utilities’ software tracks each Internet site you visit. The Utilities uses the Internet for a number of key Utilities functions.To ensure sufficient bandwidth to perform these functions, the Utilities has implemented a variety of bandwidth conservation measures. These measures include blocking websites that have no instructional or administrative value. Employees may not use Internet radio stations for casual listening and/or background music.Employees may not download music or video files from the Internet. Employees who violate any of the guidelines may be subject to disciplinary action including, but not limited to, written warnings, revocation of access privileges and termination of employment. 17. SUPPLEMENTAL EMPLOYMENT The Utilities does not restrict employees from engaging in outside employment. However, the Utilities expects regular full-time employees to consider Utilities work their primary employment. No Utilities employee may engage in outside employment that interferes with the performance of his/her duties with the Utilities, that represents a conflict of interest, or that may influence or bias an employee’s job related decision making ability. The Utilities will not change an employee’s work hours to facilitate the scheduling of any outside employment. If a supervisor believes an employee’s outside employment is detrimental to the Utilities and his/her position, the employee may be asked to discontinue the outside employment. If an employee is asked to discontinue outside employment and fails to do so, he/she may be subject to discipline up to and including termination. Employees are allowed to participate as a part-time paid firefighter in a Fire Department. A non-exempt employee will be allowed to respond to fire calls as approved and determined by his/her department supervisor, based on the work assignments and responsibilities of the employee and department. Non-exempt employees responding to fire calls during scheduled work hours will need to use vacation time for time away from work, and exempt employees need to use vacation time or make-up time for the same scenario. An employee may not respond to fire calls while on-call for the Utilities. 18 June 2022 48696398v4 73 18. REPORT OF PERSONNEL CHANGES The Utilities attempts to maintain complete and accurate personnel information on its employees. It is the responsibility of each employee to notify the office of the Utilities when changes occur, including: Name (through marriage or otherwise); Address; Beneficiaries for life insurance and retirement; Telephone number; Person to contact in case of emergency; or Other changes which may affect benefits coverage. 19. ATTENDANCE Regular attendance is an essential function of every job with the Utilities. Every Utilities employee has an important role to play in maintaining a productive workplace. Therefore, it is essential that all employees report to work as scheduled every day. Unsatisfactory attendance, including reporting late to work and leaving work early may result in disciplinary action up to and including discharge. If an employee must be absent from work for any reason, other than approved time off, the employee must notify his/her immediate supervisor at least thirty (30) minutes prior to the start of his/her normal working hours. If an emergency prevents the employee from notifying his/her supervisor at such time, the employee must call his/her immediate supervisor as soon as possible during the workday. 20. DISCIPLINE, DISMISSAL & LAY OFF .The Utilities retains the right to take disciplinary and other action as it believes appropriate to manage employee performance and workplace conduct. The type and level of discipline imposed will be at the Utilities’ discretion based upon the nature and severity of the issue and the circumstances as a whole. Examples of discipline and other action that may be taken to manage performance and workplace conduct include, but are not limited to: Documented Coaching and Counseling Oral reprimand Written reprimand Performance Improvement Plan Suspension Demotion 19 June 2022 48696398v4 74 Termination. Discipline and other action may be used in any order or combination in the discretion of the Utilities. In some cases, one or more disciplinary actions will be taken before termination; in other cases, termination will be immediate. While the Utilities strives for consistency, the level of discipline taken in any given case does not establish a controlling precedent for future circumstances. .All new employees shall be on probation for a period of one hundred eighty (180) days. Continued employment during this period shall rest solely with the discretion of the Utilities Commission. After that period, the employee shall attain regular status subject to the following: Employees on regular status may be dismissed only for cause, which may include, but is not limited to, the following: Conduct in violation of or inconsistent with Utilities policy, including but not limited to any and all policies set forth in this Handbook; conduct or language that is improper or inappropriate in the discretion of the Utilities; insubordination; failure to do the work assigned in a manner satisfactory to the Utilities; dishonesty or stealing; and the sale, transfer of, or possession, or being under the influence, of intoxicating beverages or controlled or mood altering substances while on the job. . The Utilities reserves the right and sole discretion to eliminate positions and/or reduce the hours associated with a position for any legitimate business reason, with or without cause. 21. JOB POSTING As position vacancies occur at the Utilities, the position’s job description will be posted in a prominent location to inform employees of the vacancy. Employees in good standing that wish to be considered for the position are encouraged to contact the appropriate decision-maker(s) indicated on the posting. The Utilities may also advertise the vacancy to attract external candidates. The Utilities retains all its managerial rights and has the sole discretion to decide which candidate is best qualified to fill a vacant position, whether or not the candidate is a current Utilities employee. 20 June 2022 48696398v4 75 22. PERFORMANCE REVIEWS An employee’s immediate supervisor or department head normally will conduct a performance review on an annual basis. Employee performance, however, may be coached or reviewed formally or informally at any time. Performance reviews are an opportunity for employees, management, and the Utilities to assess an individual’s job performance and to assure the continuing improvement of every employee’s performance. The performance review system is designed to: Ensure that quality services are provided to the public at the least possible cost; Motivate and develop employees to their fullest potential; Clarify roles and mutual expectations of supervisors and employees; Promote open and ongoing communication between employees at all levels, including feedback from subordinates to supervisors; and Assist in determination of whether employees are meeting the performance standards for their position. The performance review will usually be documented in writing as well as delivered orally to the employee in person. Completed performance review forms should be signed by the employee and the supervisor or other Utilities manager, Director or other representative delivering the review to the employee. These completed forms are generally maintained in the employee’s personnel file. The Utilities usesa Performance Metrics Incentive system to annually award performance- based compensation to eligible employees (those currently employed who are in good standing). An employee must remain employed by the Utilities at the time such award is to be made in order to receive the incentive. WAGES AND HOURS 23. WORK HOURS, OVERTIME, AND COMPENSATORY TIME For purposes of timekeeping and overtime calculations, the regular workweek at the Utilities runs from Tuesday through Monday. 21 June 2022 48696398v4 76 Non-exempt employees are paid on the basis of hours worked. Exempt employees are paid on a salary basis; their compensation is not based on the number of hours they work. Overtime & Overtime Compensation Overtime is earned and compensated as follows. All non-exempt employees earn overtime for all time worked in excess of forty (40) hours during the workweek (Tuesday – Monday). Regular field workers earn overtime for regular work performed in excess of eight (8) hours in a day. Earned overtime will be compensated a rate equivalent to one and one-half times the employee’s regular rate of pay; except that time worked on Sundays and designated Holidays will be compensated a rate equivalent to two times the employee’s regular rate of pay. Generally, overtime compensation is paid directly to the employee on their regular payroll check for the period in which the overtime is earned. Alternatively, for up to 40 hours of earned overtime per year, non-exempt employees may elect to receive and accrue Compensatory Time (“Comp Time”) in lieu of direct overtime pay. Comp Time is accrued and paid at the same rate as other earned overtime, i.e., at one and a half times the employee’s regular rate of pay; or two times the regular rate for time worked on Sundays or designated holidays. Receipt and Use of Comp Time is explained in more detail below. Note. Further, if a field worker uses sick or vacation time during the regular eight-hour day, this will not affect the earning of overtime for those hours worked in excess of the regular workday. Also, when a field worker is mandated to start work prior to the normal scheduled workday, the hours worked outside of the regular scheduled workday will be paid at a rate of one and one-half time the employee’s regular rate of pay; or two times the regular rate for time worked on Sundays or designated holidays; or the employee may elect to accrue Comp Time for the earned overtime as described below. The eight hour and double time provisions above do not apply to travel and training time spent away from the regular workplace, but the forty-hour overtime pay provision does apply in all cases where an employee is engaged in activity related to and/or required in connection with his or her Utilities employment. Exempt employees are salaried and do not earn or receive overtime or, in turn, Comp Time. Compensatory Time Compensatory Time (“Comp Time”) is paid time off for earned overtime in lieu of direct pay. Comp Time is accrued at the rate of one and one-half hours (or, two hours for overtime earned for work on Sundays or designated holidays) for each hour of overtime earned. 22 June 2022 48696398v4 77 Comp Time may be accrued and taken in lieu of direct overtime pay in accordance with the following rules. When an employee earns overtime they may elect to accrue Comp Time in lieu of direct pay for the overtime. Accrual of Comp Time is subject to a cap of 40 hours per calendar year. Once an employee has accrued 40 hours of Comp Time in a calendar year, no further Comp Time may accrue in that calendar year, even if the employee has used some or all of the 40 hours previously accrued. Once the 40-hour cap is reached, all further earned overtime will be paid directly on the paycheck for the period in which it is earned. When an employee elects Comp Time they will not receive any pay for the hour of overtime worked on their paycheck for the period in which the overtime is earned. Instead, the employee will accrue one and a half hours (or, two hours for overtime earned for work on Sundays or designated holidays) of Comp Time to be used at the employee’s election within the calendar year before December 15. Under no circumstances will Comp Time ever be forfeited. Accrued Comp Time that has not been used by December 15 will be paid out in full on the last payroll check of the calendar year. Under no circumstances will Comp Time carry over to a following calendar year. In order to elect to accrue Comp Time in lieu of receiving direct overtime pay in the current payroll period, an employee must mark their timesheet for “Comp Time,” clearly indicating the number of earned overtime hours they wish to accrue as Comp Time in lieu of direct overtime pay. In order to use Comp Time, employees are to follow the same procedures as apply to other paid time off and leave requests, including making specific arrangements with their supervisor. Use of Comp Time is subject at all times to the operating needs of the Utilities. If at the time an employee separates from employment with the Utilities they have accrued unused Comp Time, all such Comp Time will be paid out at the hourly pay rate the employee is earning at the time of separation. 24. EMPLOYEE CLASSIFICATIONS The following definitions are provided to assist employees in understanding their employment classification and benefits eligibility. Although employees generally will be classified as one of the following, they should be aware that their classification may change at any time as the Utilities considers appropriate. 23 June 2022 48696398v4 78 All employees are designated as either non-exempt or exempt from federal and state wage and hour laws. Non-exempt employees are covered by specific provisions of the wage and hour laws, including overtime pay. Exempt employees are excluded from specific provisions of the wage and hour laws, including the overtime provisions. Generally, exempt employees are engaged in managerial, professional, administrative, or executive positions and are paid on a salaried basis. It is our policy to fully comply with federal and state wage and hour laws. In keeping with this commitment, we will pay exempt employees their full salary (or salary plus vacation to equal the amount of the full salary) for any workweek in which they perform work, regardless of the number of days or hours worked, subject only to deductions that are permitted by law. Full day deductions from pay that are permitted by law include, for example, deductions for personal time off, sick days before or after eligibility for paid sick leave, or for infractions of written workplace conduct rules including but not limited to any rule or policy set forth in this Handbook. Full or partial day deductions may be made from the salaries of exempt employees for infractions of safety rules of major significance and in certain other limited circumstances. Employees are classified according to the following definitions: . A regular full-time employee typically works 40 or more hours per week, and is not classified as a temporary worker. .A regular part-time employee typically works fewer than 40 hours per week, and is not classified as a temporary worker. . An employee whose regular assigned position involves performing a significant portion of his or her work outside of the Utilities’ physical facilities. .An employee whose duties result in exclusion of the employee’s work from coverage under the minimum wage and/or overtime provisions of the wage and hour laws. . An employee whose duties result in coverage of the employee’s work under the minimum wage and/or overtime provisions of the wage and hour laws. .Any employee of the Utilities, or other individual identified by the Commission, who is a Utilities supervisor, superintendent, manager, director, representative or other individual who is generally identified to employees by Utilities policy, practice or communication as having managerial, supervisory, or administrative authority to act on behalf of the Utilities, regardless of whether such authority is limited or subject to the authority of others in the Utilities’ organizational structure. 24 June 2022 48696398v4 79 . A temporary worker typically is hired for a specific period of time. Generally, temporary workers are hired as interim replacements, to supplement the work force, and/or to assist with specific projects. Temporary workers often will be informed of an estimated duration of their assignment, although either the worker or the Utilities may end the work relationship at any time. Temporary work that continues beyond an estimated duration in no way implies a change in the worker’s status. Temporary workers retain their temporary status unless and until they are specifically notified by the Utilities of a change. 25. TIME REPORTING POLICY The goal of the time reporting system is the accurate and timely reporting of time worked (by job or account) and time off (by category). This is essential for (1) guaranteeing that employees are paid correctly and that their leave accumulations are accurate, (2) monitoring actual performance against budgetary goals, and (3) ensuring labor costs are properly reported. Each employee is responsible for the accurate submission of his or her own personal time reporting, and each supervisor is responsible for reviewing the employee’s compliance with this time reporting policy. Non-exempt employees are required to record and submit the following on their timecard: Amount of Time Worked in increments of the nearest one-quarter hour; Description of the activities performed during the time worked; Identification of the account to be charged (accounting system designation); and The work order(s) to which the time applies (as appropriate). The purpose of the description of activities during the time worked is to document for employee performance and client accountability purposes how an employee’s work time was spent. Work orders are utilized for specific projects to track time and labor for billing purposes, or capitalization projects. Non-exempt employees are required to fill out their timecards daily. It is preferred that employees fill out their timecards at the end of each completed workday, but timecards 25 June 2022 48696398v4 80 may be completed within the first hour of arriving at work on the subsequent workday. This is not intended to conflict with payroll deadlines for paperwork. Timecards may be checked periodically throughout the pay period for completeness and accuracy. It is understood that timecards must be available for, and are subject to review/audit by, the employee’s supervisor at any time. Field workers generally will receive one 15-minute paid break in the morning and one in the afternoon; and will receive a 30-minute unpaid lunch break during each shift. Office employees receive a 60-minute break for lunch, 30 minutes of which is paid in lieu of having two fifteen-minute breaks, morning and afternoon. The other 30 minutes of the office employees’ 60-minute lunch break is unpaid. Please see below under “Ensuring Accuracy of Timekeeping Reports” for important information about pay practices affecting unpaid lunch breaks. Non-exempt employees are responsible for, and must take steps to ensure, the accuracy and completeness of time reporting data collected. This is critically important because the Utilities relies on such submissions in carrying out its duty to properly pay wages and other forms of compensation. Furthermore, knowingly submitting or approving inaccurate time reporting data is a violation of policy and may subject the person to disciplinary action. PLEASE NOTE: By submitting time reporting data a non-exempt employee is attesting to the accuracy of the time data reflected on the timecard and/or in the report. PLEASE NOTE FURTHER: Because of the regularity of our break and work schedules, the Utilities automatically deducts scheduled unpaid lunch breaks. If an employee does not receive the 30-minute unpaid lunch break on any given shift, the Utilities will pay you for that 30-minutes. We can do so, however, only if you notify us that you did not get your break. It is your responsibility to provide this notice to your supervisor. A pattern of not taking unpaid lunch breaks may subject an employee to discipline; but it will never result in the Utilities failing or refusing to pay for such time. Each non-exempt employee must accurately record and properly report all time spent performing work for the Utilities, regardless of the location where such work is performed. Employees generally should not perform work at times or places outside of the times and places they are scheduled to work by the Utilities. If a need for work outside of scheduled times or places is, or should be, anticipated, the employee should seek permission to perform such work from Utilities management in advance, and if permission is not secured in advance such work should generally not be performed. Performing work outside of 26 June 2022 48696398v4 81 scheduled and approved times and places may result in discipline; it shall not under any circumstances, however, result in an employee not being paid for time spent performing Utilities work. In the case of a non-exempt employee who is on call, the on-call stipend paid to the employee covers all compensation due for calls taken as to which there is no call out. If unanticipated, time-sensitive, or urgent work needs to be performed at times and/or places outside of those scheduled by the Utilities, the non-exempt employee should perform only so much of the work as is necessary to address the immediate need. Regardless of whether work is anticipated or of an urgent nature, and regardless of whether advance permission has been received to do such work or not, all time spent by a non- exempt employee actually performing Utilities work must be accurately recorded and properly reported to Utilities management. Further to the Special Note above:Time Worked Remotely Any and all time worked remotely, including time spent accessing Utilities systems or data for the benefit of the employer, must be recorded and reportedto the Utilities in order to assure proper compensation, in accordance with the applicable provisions for exempt and non-exempt employees of this Time Reporting Policy and the Fair Pay Policy below in Section 27. 26. REMOTE WORK POLICY Purpose This policy governs the practice of working remotely, other than for field work, from locations other than a Utilities facility, including an employee’s home. Working remotely is voluntary for the employee and at the sole discretion of Utilities management. Elk River Municipal Utilities is committed to providing excellent customer service for our customers, as well as attracting and retaining critical employee talent, increasing productivity and efficiency and saving on workspace and costs. A remote work policy can help provide these benefits. Working remotely should never be allowed to adversely affect external or internal service or operational needs of the Utilities. General Guidelines Remote work as defined for this policy means working some or all scheduled hours and/or performing some or all job duties from a location not on Utilities premises: Working all scheduled hours off-site, or Working some scheduled hours off-site and some on Utilities premises. Employees may not access Utilities’ systems or data remotely without first obtaining written permission. 27 June 2022 48696398v4 82 Regardless of location, a remote worker remains responsible for all job duties, responsibilities and obligations associated with their position, even if such duties require the employee to come into a Utilities facility while performing work remotely. Employees and supervisors should seek to find solutions to maximize benefit to the Utilities and to the employee. Remote work arrangements will be considered by the Utilities on an individual, case-by- case basis. A Remote Work Agreement form must be completed and approved by the Supervisor and the employee before an employee will be permitted to begin a remote work arrangement. Because the primary focus of the Utilities is always on serving the needs of customers, remote work arrangements may not be feasible for some positions. Field workers, in particular, generally have duties that cannot be performed remotely. Remote work arrangements may vary depending on the position and department. Supervisors are responsible for determining remote work arrangements and schedules within their departments, subject to the approval of the General Manager or their delegate. The Utilities has sole discretion in considering an employee request to work remotely and setting remote work policy for a particular department, employee group, or employee. In exercising this discretion the Utilities may consider the following factors and guidelines and any other relevant matters: The length of an employee’s continuous, regular employment and degree of success performing their job duties. Remote work requires the same focus on job duties as if the employee were in the office; repeated interruptions from household members, pets or other distractions may disqualify an employee from remote work. There must be adequate department coverage during all standard hours. There must be no adverse impact on internal or external customers. There must be no known safety issues associated with working remotely. There must not be any known security issues with technology or otherwise. Employees working under a Performance Improvement Plan are not eligible for remote work. Internal and external customers must be given direction on who to contact in the employee’s absence if the employee is not available during all business hours. A remote work schedule must not result in additional overtime for the employee or co-workers. The employee will not be allowed to work outside the State of Minnesota except when travelling on Utilities business or during time when the employee is otherwise scheduled to be away from work. The Utilities may end an employee’s remote work arrangement at any time. There may be other or additional considerations when an employee with a qualifying disability requests remote work as a reasonable accommodation. The 28 June 2022 48696398v4 83 Utilities will follow its Reasonable Accommodations Policy and consider such requests on a case by case basis. Employees and supervisors may consider various types of scheduling options for efficiency and productivity in remote work arrangements, including: Entire weeks on site or working remotely. Certain days on site; remaining days working remotely. Whether to have entire teams of employees on site on the same day(s) on a regular basis. Employees should expect to remain flexible as to their days and hours for work onsite and at remote locations in accordance with the particular duties of their job and the needs of the Utilities. Remote work arrangements remain subject at all times to change by the Utilities. Work Hours, Calendars and Meetings An employee with a remote work arrangement must agree to be accessible by phone, virtual computer software and email as needed during their scheduled working time. Depending on the employee’s position and the needs of the Utilities, the work schedule may include core hours during which the employee must be available or the schedule may include greater flexibility for the employee to work outside the Utilities’ normal business hours. Non-exempt remote workers (those who are classified as not exempt from the overtime requirements of the Fair Labor Standards Act (FLSA)) are required to record all hours worked in a manner designated by the Utilities as discussed in Sections 25 and 27 of this Handbook. Overtime during a remote work arrangement is subject to the same requirements for approval in advance as all other overtime. Exempt employees, (those who are classified as exempt from the overtime requirements of the FLSA must follow the Utilities’ applicable payroll and timekeeping policies as discussed in Sections 25 and 27 of this Handbook and are generally accountable for their normal work week hours. All remote workers must use sick, vacation or compensatory time to cover periods of time off in accordance with the Utilities’ normal policies. Remote workers are responsible for keeping their electronic calendars up to date and accessible to anyone in the Utilities during all scheduled work hours. Appointments for doctor or other private appointments can be marked as “private” or “personal time out of office.” Please include travel time as needed to help others schedule meetings. Remote workers must attend all required meetings, including those which normally would be held on a remote workday, and are also responsible for obtaining information from 29 June 2022 48696398v4 84 optional meetings when such meetings impact their work with the Utilities. Supervisors are responsible for setting expectations for their work teams regarding whether meeting attendance will be in-person, remote or hybrid, considering these guidelines: Meetings of a sensitive, highly interactive, or complex nature are best held entirely in-person (e.g., brainstorming, troubleshooting, project “kick-off” meetings, performance reviews, disciplinary meetings). In-person business meetings with others may not be held in an employee’s home. Work Environment and Technology For employees with a remote work arrangement, the employee must establish an appropriate work environment to avoid problems associated with safety or poor ergonomics. The Utilities will not be responsible for costs associated with initial setup of an employee’s remote office such as remodeling, furniture, lighting, repairs, or modifications to the office space. Employees will be offered appropriate guidance in setting up a workstation designed for safe, comfortable work. The Utilities may provide employees with appropriate technology (e.g., computer, monitor(s), docking station, mouse, keyboard, headset) for one location, either on-site at Utilities officers or off-site. Employees who work in a hybrid remote work arrangement (both on and off site) are responsible for providing the technology required to work remotely effectively and efficiently. This includes a reliable internet connection. All Utilities -owned equipment must be returned upon termination of the remote work arrangement or at termination of employment. The Utilities will supply the employee with the appropriate office supplies (pens, paper, etc.) for their assigned job responsibilities, which the employee must pick up on site. An employee may be required to come into the office in order to perform some duties such as mailing, scanning and photocopying. The Utilities may not provide reserved on-site office space for employees with remote work arrangements. Utilities Employment Policy and Benefits Coverage The Utilities’ normal policies and procedures (for example, computer use, data practices, respectful workplace, outside employment, etc.) apply to employees working remotely. Employees should ask their supervisors if they have any questions about whether or how a particular Utilities policy applies to a remote work environment. An employee working remotely is generally covered by the Utilities’ Workers' Compensation insurance while acting in the course and scope of employment and must report any injury to their supervisor as soon as possible. 30 June 2022 48696398v4 85 27. FAIR PAY POLICY Elk River Municipal Utilities (referred to in this Fair Pay Policy as the “Employer” or the “Utilities”) is committed to fair compensation for its employees as explained in this Fair Pay Policy. Specifically, it is the policy and practice of the Employer to accurately compensate employees and to do so in compliance with all applicable state and federal laws. The Utilities will never knowingly fail or refuse to pay an employee the full amount of compensation to which he or she is entitled by law for work performed on behalf of the Utilities. ALL EMPLOYEES Protection of Employee Rights The Employer will protect the right of each employee to receive compensation according to the law. Violations of this Fair Pay Policy, whether by a managerial or non-managerial employee, may result in disciplinary action, if appropriate under the circumstances, up to and including termination of employment. The Employer will not tolerate or allow any form of retaliation against individuals who report alleged or suspectedviolations of this policy or who cooperate in the Employer’s investigation of such reports. Retaliation is unacceptable, and any form of retaliation in violation of this policy will result in disciplinary action, up to and including termination. Record Your Time And Review Your Pay Stub To ensure that you are paid properly for all time worked and that no improper deductions are made, you must record correctly all work time and review your paychecks promptly to identify and to report all errors. The Employer makes every effort to ensure that its employees are paid correctly. Occasionally, however, inadvertent mistakes can happen. When mistakes happen, the Employer will promptly make any corrections necessary to provide you with the pay to which you were entitled and as otherwise required by law. To assist the Employer in its efforts, please review your pay stub when you receive it to make sure it is correct. If you believe a mistake has occurred or if you have any questions, please use the following procedure. How to Raise a Question or Concern about your Pay or a Payroll Deduction If you have questions about your pay or any deduction from your pay, please immediately contact your supervisor/manager. If you believe your paycheck has been subjected to an improper deduction or that the pay you have received does not accurately reflect the compensation you are entitled to for your work, you should immediately report the matter to your supervisor/manager, the Finance Manager, or the Payroll Specialist. 31 June 2022 48696398v4 86 The Employer will fully investigate every such report, including by reviewing appropriate time and payroll records and interviewing persons responsible for payroll and/or payroll deductions. If you have been paid incorrectly or if the Employer determines that a deduction was improperly made, the Employer will reimburse you as promptly as possible, which will be no later than two pay periods from the time you report the suspected problem. The individual(s) responsible for the error will be investigated further to determine if the error was an isolated incident or whether instead it may be part of a pattern of conduct that requires further action on the part of the Employer. Regular Attendance is an Essential Job Function and Your Attendance Record is a Performance Issue Regular attendance is an essential function of jobs with the Employer. The failure of any employee, whether exempt or non-exempt, to perform according to the Employer’s expectations, including any failure by an employee to meet the Employer’s attendance standards, may result in disciplinary action up to and including termination of employment. For these and other reasons, it is important for employees to accurately record the time they work for the Employer. NON-EXEMPT EMPLOYEES If you are classified as a non-exempt employee, the Employer relies on your use of the timekeeping software to maintain an accurate record of the total hours you work each day. The timekeeping software is designed to reflect all regular and overtime hours worked, any absences, late arrivals, early departures and meal breaks. If any error or inaccuracy occurs in connection with your use of the timekeeping software it is your responsibility to notify your supervisor/manager to correct the error or inaccuracy. When you receive each pay check, please verify immediately that you were paid correctly for all regular and overtime hours worked during each work week. You should not work any hours that are not scheduled or requested of you by the Employer unless you are authorized to do so by your supervisor. Do not start work early, finish work late, work during a meal break or perform any other extra or overtime work unless you are authorized to do so and you record such time on your time card. Non-exempt employees are strictly prohibited from performing any “off-the-clock” work. “Off-the-clock” work means work you perform but fail to report on your time card. Any employee who fails to report or inaccurately reports hours worked will be subject to disciplinary action, up to and including termination. It is a violation of the Employer’s policy for any employee to falsify a time card, or to alter another employee’s time card. It is also a serious violation of Employer policy for any employee or manager to instruct another employee to incorrectly or falsely report hours worked or alter another employee’s time card to under-report or over-report hours worked. If any manager or employee instructs you to either (1) incorrectly or falsely under-report or over-report your hours worked, or (2) alter another employee’s time records to 32 June 2022 48696398v4 87 inaccurately or falsely report that employee’s hours worked, you should report the situation immediately to the Payroll Specialist, the Finance Manager, or your supervisor/manager. On Call Time For Non-E xempt Employees Non-exempt employees in certain positions may be scheduled to be on call for duty of various kinds. Compensation for time spent on call by non-exempt employees is generally subject to applicable state and federal law and to the terms of any governing union contract. Similarly, compensation for time spent actually working is paid according to applicable state and federal law and to the terms of any governing union contract. EXEMPT EMPLOYEES Salary Basis of Compensation If you are classified as an exempt employee, you will receive a salary that is intended to compensate you for all hours worked for the Employer. This salary will be established at the time of hire or when you become classified as an exempt employee. While your salary may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform. Attendance and Recording Time for Exempt Employees Although exempt employees are paid on a salary basis and not by the hour, all exempt employees are nevertheless required to record all time spent working for the Employer. This is important for a variety of reasons, but it is not for the purpose of paying an exempt employee other than on a salary basis. For payroll purposes, the regular workweek for exempt employees of the Employer is defined as the week running from Tuesday morning at 12:00 a.m. to the following Monday evening at 11:59 p.m. The regular business workday for exempt employees is generally from 7:00 a.m. to 3:30 p.m. or 8:00 a.m. to 4:30 p.m., unless a manager, Director,or supervisor has specified other expectations or arrangements. The Employer generally expects that an exempt employee will work forty or more hours in each workweek. Exempt employees are required to meet the Employer’s attendance standards, which the Employer sets in its discretion. OnCall Time For Exempt Employees Exempt employees who are assigned on-call duty or pager duty do not receive additional pay for that duty. The Employer may, from time to time in its discretion, choose to assign certain credit or rewards to exempt employees for performing such duty. 33 June 2022 48696398v4 88 Deductions from an Exempt Employee’s Salary The Employer does not permit any payroll deduction unless it is approved by the Finance Manager. Deductions from an exempt employee’s salary will only be made in good faith and in compliance with applicable law. No manager or other employee of the Employer has the authority to order any deductions from an exempt employee’s salary without the approval of the General Manager. Federal and state law limit the deductions that may be made from the salary of an exempt employee. The Employer intends to fully and strictly comply with these limitations. Please note that these limitations concern the amount of gross salary received on the paycheck; but these are different from any limitation on deductions from an employee’s leave bank. Further explanation of how this works follows below. Important Definitions. A deduction from salary is a deduction that results in a lower gross pay amount on an employee’s paycheck. A deduction from a leave bank does not result in a lower gross pay amount on an employee’s paycheck, but, rather, reduces the balance in the employee’s leave account; or, in other words, reduces the amount of an employee’s accrued and unused vacation or sick leave. Permissible Deductions from Salary. Absent contrary state law requirements or a specific employment contract executed by a duly authorized representative of the Employer, the salary of an exempt employee may be reduced for any of the following reasons: Full day absences for personal reasons. Full day absences for sickness or disability (which absence may otherwise be paid through any sick time benefits available to the salaried employee, if any). Full day disciplinary suspensions for infractions of the Employer’s written policies and procedures. Full day disciplinary suspensions for violations of workplace safety rules of major significance. To offset amounts received as payment for jury and witness fees or military pay. The first or last week of employment in the event the employee works less than a full week. 34 June 2022 48696398v4 89 The salary of an exempt employee may also be reduced for certain types of deductions such as the employee’s portion of health, dental or life insurance premiums; state, federal or local taxes, social security; or, voluntary contributions to a Section 457 retirement plan. Impermissible Deductions from Salary. In any work week in which an exempt employee performs any work, the exempt employee’s salary amount will not be reduced for any of the following reasons, although, as explained further in more detail below, the employee’s leave bank may be reduced for these reasons, in some circumstances: Partial day absences for personal reasons, sickness or disability. Absence because the facility is closed on a scheduled workday. Absences for jury duty, attendance as a witness, or military leave in any week in which you have performed any work. Any other deductions prohibited by state or federal law. Permissible Deductions from An Exempt Employee’s Leave Bank. Federal and state law permit the Employer to reduce an exempt employee’s accrued vacation or sick balance for full or partial day absences for personal reasons, sickness or disability. Deduction for the use of such leave time will not be made from the exempt employee’s salary, but from the exempt employee’s leave bank. Questions or Concerns about This Fair Pay Policy If you have questions or concerns about this Fair Pay Policy, please contact your supervisor/manager, any Director, or Human Resources. 28. BREAKS FOR NURSING MOTHERS TO PUMP BREAST MILK Employees who need to express breast milk for their infant childduring the twelve (12) months following the birth of the child will be provided with reasonable break times for this purpose each day, as long as such breaks do not unduly disrupt company operations. As far as possible, such breaks must run concurrently with regular break times otherwise provided; and must be arranged so that the requirements of the job can be adequately met by other staff on duty. It is not necessary for an employee to clock out for such breaks unless regular unpaid meal break time is being used; the Utilitieswill not reduce the compensation of any employee as a result of taking lactation breaks. Employees needing time to express breast milk should contact their supervisor to inform hem of the need and discuss an appropriate private location. For lactation breaks t Employees will be provided an appropriate private (non-bathroom) space with an electrical outlet that is shielded from view and free from intrusion. 35 June 2022 48696398v4 90 29. CALL OUT TIME: REGULAR FIELD WORKERS Regular field workers who are asked to report for work outside their regular working hours shall be paid a minimum of two (2) hours each time they report for work. Scheduled work contiguous to normal working hours shall not be subject to this two (2) hour minimum reporting pay obligation. However, if a regular field worker reports for work before or remains after the regular eight (8) hour workday, or works on a Saturday, Sunday or Holiday, he/she will be paid at the applicable overtime rate for each hour worked over eight in a day, or on a Sunday or Holiday, as applicable. Such reporting and overtime pay is not applicable to situations involving travel or training time away from the regular workplace except where the employee’s total working time for the workweek exceeds 40 hours, in which case the 40-hour overtime provision will apply. Work performed for which an employee does not report to a particular work site, such as work that can be performed on a laptop computer from a non-work site, shall not be subject to this two hour minimum reporting pay obligation. This policy does not apply to employees other than regular field workers. 30. ON-CALL Required On-Call Rotation for Regular Field Workers. Regular field workers (including linepersons, water operators, and other specifically trained field workers) are subject to a residency rule. These same workers are also subject to required participation in a scheduled on-call rotation. Apprentices may be excluded from the on-call rotation for up to one year from their date of hire, per management discretion. The on-call rotation is scheduled in one (1) week blocks. Residency Rule. The residency rule applies to the regular field workers who may be required to serve on-call. The residency rule is that these employees must live within a twenty (20) mile radius or thirty minute commute of the power plant. Response Time.The following guidelines on response time apply to regular field workers in the on-call rotation schedule on a 24-hours-a-day, seven-days-a-week basis during the workers’ scheduled on-call weeks. While on-call, workers must remain within the 20-mile residency radius. 36 June 2022 48696398v4 91 While on-call, workers are expected to make immediate telephone contact in response to a call. While on-call, workers are expected to urgently report to a site of need within a reasonable time, which will vary depending on the identified reason for the call. Depending on the need an on-call worker may find it necessary to call in a field partner to assist in providing appropriate and timely call response. Take Home Vehicles.Regular field workers who are part of the scheduled on-call rotation will be provided a company vehicle to take home for the exclusive purpose of responding to calls about Utilities business during the on-call block. Compensation for On-Call Time. Time spent on-call by regular field workers is not working time. In recognition of this on-call service, however, nominal compensation is paid. Weekly Compensation for Workers in an On-Call Rotation. For workers in a regular on-call rotation, compensation of fourteen (14) hours at the worker’s base rate of pay is paid, which covers an entire one (1) week block of on-call service. This compensation covers all time spent on call during the on call week, including phone or other remote triage work as to which there is no call out. Pro Rata Compensation for Workers Performing Back-Up On-Call Service. Workers not in a regular on-call rotation may be designated and required to serve on-call on a back- up basis. Such workers who serve on-call for less than a full week at a time will be compensated for their on-call service on a pro rata basis for each day of on-call service, at the daily rate of 1/7 of 14 hours times the worker’s base rate of pay. Workers not in a regular on-call rotation who serve on call, upon designation, for a full week will receive compensation on the same basis as do workers who are in an on-call rotation. When a recognized paid holiday falls within the on-call block covered by the worker (whether a week or portion thereof), eight (8) vacation time hours will be awarded as additional on-call compensation. 37 June 2022 48696398v4 92 Compensation for Actual Response Time. Time spent actually responding to a call that is received while a worker is serving on-call, however, is working time, and is therefore paid based on an employee’s regular rate of pay. Call out time. When an employee is on-call, the Utilities’ policy on call out time pay still applies, in accordance with the terms of that policy. .Certain employees other than regular field workers, namely, the Operations Director, Electric Superintendent and the Water Superintendent, are subject to call response requirements for emergency preparedness and/or customer service purposes. The Operations Director, Electric Superintendent and the Water Superintendent are not subject to the residency rule that applies to regular field service workers. Superintendents. Electric Superintendent. The Electric Superintendent is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Electric Superintendent is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Electric Superintendent. The Electric Superintendent shall arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Electric Superintendent to use accrued sick leave. Water Superintendent. The Water Superintendent is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Water Superintendent is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Water Superintendent. The Water Superintendent shall arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Water Superintendent to use accrued sick leave. 38 June 2022 48696398v4 93 Operations Director. The Operations Director is required to be available to triage or respond on an as-needed basis to emergency calls 24 hours a day, seven days a week without rotation. Such on-call time and availability is not working time. The Operations Director is not required to remain within the residency radius and does not receive additional compensation for on-call time or for actual response time. The call out time policy does not apply to the Operations Director. The Operations Director shall arrange for another qualified Utilities employee to be on call: 1) during his or her scheduled vacation periods; 2) when it is necessary for the Operations Director to use accrued sick leave. Take Home Vehicles. Based on the expectation that they will regularly be available to respond in a timely and appropriate manner to calls about Utilities business outside of regular business hours, the Operations Director, the Electric Superintendent and the Water Superintendent, are provided Utilities vehicles to take home. These vehicles are subject to the Utilities’ Use and Disposal of Utility Property policy and may only be used for the exclusive purpose of responding to calls about Utilities business. 31. ELECTRIC RE-CONNECT TIME Regular field workers performing electric re-connects at times other than during their scheduled work hours will be paid in accordance with the general policy on Call Out Time for Regular Field Workers. 32. STORM PAY Employees assigned to work at another utilities distribution system to assist with restoration following a storm, will receive time and one-half (1.5) times their regular rate of pay for all such hours worked, except hours worked on Sunday or an Elk River Municipal Utilities recognized Holiday, which shall be paid at two (2.0) times the employee’s regular rate of pay. The Utilities will use its best efforts to rotate and distribute these assignments equally with priority on maintaining proper staffing levels at Elk River Municipal Utilities. 33. LEAD PAY DIFFERENTIAL An employee who is currently a lineman shall assume the duties of a lead lineman when the lead lineman is absent from a crew, provided that only the most senior lineman on a 39 June 2022 48696398v4 94 crew shall assume the lead lineman’s duties. The lineman assuming such duties shall receive a rate differential equal to 3% of the applicable rate of pay times the number of hours worked during which the lineman assumed such lead duties. The rate differential provided in this policy applies during both regular scheduled work hours and after hours. During after-hours call out, as well as at any other time, this rate differential will be paid only when the crew is full and the lead lineman is absent. 34. LONGEVITY PAY The Utilities values long term dedicated service by Employees. Beginning on January 1, 2022, a Longevity Bonus will be paid to qualifying eligible employees based on their years of service according to the schedule below. The purpose of the Longevity Bonus is to recognize the service of Employees that work for the Utilities long-term. Regular full-time and regular part-time Employees are eligible for a Longevity Bonus when they qualify as set forth in this Section. Regular full-time employees are eligible to receive a Longevity Bonus once each time they qualify by reaching a milestone anniversary date in accordance with the following schedule: Milestone: Years of Service Longevity Pay Amount 8 years $1,550 12 years $2,025 16 years $2,100 20 years $2,125 24 years $2,300 28 years $3,000 32 years $3,000 Regular part-time employees are eligible to receive a Longevity Bonus once each time they qualify by reaching a milestone anniversary date in accordance with the following schedule: Milestone: Hours of Service Longevity Bonus Amount 16,640 $1,550 24,960 $2,025 33,280 $2,100 41,600 $2,125 49,920 $2,300 58,240 $3,000 66,560 $3,000 40 June 2022 48696398v4 95 A Longevity Bonus is paid in one lump sum within 60 days of the anniversary date on which the Employee reaches the relevant milestone. Qualifying Employees who are eligible for a Longevity Bonus will be invited to the next monthly Commission meeting that is at least ten days after their anniversary date, where the Commission Chair and the Employee’s manager will present the Longevity Bonus paycheck to the Employee(s). Because longevity pay is considered supplemental income by the Internal Revenue Service, 22% will be withheld in taxes from the employee’s longevity pay during check processing. 35. PAYCHECK DEDUCTIONS By law, the Utilities is required to withhold federal and state taxes, FICA and PERA from an employee’s pay. The Utilities also has a Health Care Savings Plan with mandatory participation and will withhold applicable amounts from an employee’s pay. In addition, other deductions may be made upon authorization of a participating employee including the following: a. Employee share of health insurance g. World Vision b. Credit Union h. United Way c. PERA life insurance d. 457 contributions e. Flexible benefits f. Computer Loans up to $1,200.00 (12 month term) 36. PAYCHECKS Employees are paid every two weeks. The pay period begins every other Tuesday at 12:00 a.m. and ends every other following Monday at 11:59 p.m. Payday is the Friday immediately following the end of the pay period. Employees are responsible for their paychecks upon receipt. Direct deposit is preferred but a check is available to employees upon request. 37. NIGHTWORK REST TIME The Utilities will provide a regular field worker with one hour paid rest time for each hour worked between 10:00 p.m. and 6:00 a.m., excluding work performed during such window on Saturday or Sunday. The worker must make arrangements with his or her supervisor before taking such rest time. This nightwork rest time shall be taken during the next scheduled work shift. If the supervisor does not release the worker to take this nightwork rest time, all hours worked by the worker on the next scheduled shift shall be paid at one and one half times the worker’s base rate of pay. It is the employee’s responsibility to notify the supervisor and obtain approval prior to taking the rest time. It is also the employee’s responsibility to take the nightwork rest time if it is approved by the supervisor. 41 June 2022 48696398v4 96 The employee’s failure to take approved nightwork rest time shall result in forfeiture of such rest time. Nightwork rest time does not apply and is not paid in connection with travel or training time away from the regular workplace. 38. TRAVEL AND TRAINING TIME Employees are paid for time spent in training related to their position with the Utilities, which must be approved in advance by the supervisor. Employees will be paid for their time spent traveling in the following circumstances. 1. W hen a non-exempt employee is engaged in travel which keeps the employee away from home overnight and which cuts across a regular workday; 2. When a non-exempt employee travels to a special one-day work assignment in another city that does not require an overnight stay; 3. When a non-exempt employee spends time traveling as part of the employer’s principal activity; 4. When a non-exempt employee spends time traveling between home and work in “call back” or “emergency” situations; and 5. When a non-exempt employee performs work during travel. Overtime (at one and a half times the regular rate of pay) will be paid in connection with training or travel time only when, and to the extent, that an employee’s total compensated hours in a workweek exceed 40. The eight hour and double time provisions of the Utilities’ wage and hour policy do not apply to days involving work-related travel or training. 42 June 2022 48696398v4 97 BENEFITS 39. GENERAL BENEFITS This handbook provides a brief description of benefits available to eligible employees. The descriptions provided here are not intended to be comprehensive and all questions regarding eligibility and benefit levels should be directed to your supervisor so the specific plan documents can be reviewed for an answer. The plan documents govern any inconsistencies between these documents and the information provided here. Benefits and eligibility requirements are subject to change, and such changes may not be reflected in this description. Further, to be clear, nothing in the Benefits sections or elsewhere in this Handbook creates a contract with specific terms between the Utilities and any employee. The Utilities expects to offer its benefit plans for the foreseeable future, but it reserves the right, in its sole discretion, to change, modify or eliminate them at any time, except to the extent prohibited by law. 40. VACATION All regular full-time employees shall accrue vacation according to the following schedule: Years of Service Accrued Per Pay Period Accrued Per Year 0-4 3.70 hours 12 days 5 4.00 hours 13 days 6-9 4.62 hours 15 days 10 4.93 hours 16 days 11 5.24 hours 17 days 12 5.54 hours 18 days 13 5.85 hours 19 days 14-15 6.16 hours 20 days 16-18 6.77 hours 22 days 19 7.70 hours 25 days 20-21 8.00 hours 26 days 22-23 8.31 hours 27 days 24+ 8.62 hours 28 days Vacation days accrue each pay period as shown in the table above. Paid vacation may be taken as soon as it is accrued. Accrual rates change, as applicable, on an employee’s anniversary date. Example: If an employee’s start date was July 1, 2016, the new accrual rate would start July 1, 2021. If an employee is on leave and using vacation on a basis of less than the regular eight-hour day, and so not receiving full vacation pay for each day, the accrual is calculated on a pro rata basis. 43 June 2022 48696398v4 98 Regular part-time employees accrue paid vacation under this schedule on a pro rata basis. Temporary and seasonal employees are not eligible for paid vacation. Employees must request time off for vacation as far in advance as feasible. When possible, employees will be granted vacation time of their choice. However, scheduling of vacation time is subject to the operating needs of the Utilities. Unused vacation days may be carried over from year-to-year, but only to a limited extent, as follows. Unused vacation carryover will be limited to the number of hours accrued during the previous year. Accrued vacation days beyond the carryover limit are lost. For example, if an employee with 2 years of service has accrued but not used 15 vacation days by the end of the pay period containing his or her anniversary date, he or she will only be permitted to carryover 10 days to the next year. Paid vacation may not be used for the purpose of extending an employee’s active employment with the Utilities or for retaining a full-time equivalency percentage that is not based on an employee’s actual planned and scheduled working time. Employees who voluntarily end their employment and who give the Utilities proper (generally at least two-weeks) notice, and employees terminated involuntarily by the Utilities for reasons other than an ethics violation, fraud, theft, or other egregious misconduct,shall be paid out for the amount of earned but unused vacation time in their account as of the date of separation, provided they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. Employees involuntarily terminated by the Utilities for an ethics violation, fraud, theft, or other egregious misconduct shall not be paid out any unused vacation time. Employees who retire immediately eligible to claim their pension and who give the Utilities proper notice (generally at least two-weeks) shall have 100% of unused vacation time converted into cash and deposited into their Post Employment Health Care Savings account, but only on the condition that they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. The Operations Director, Electric Superintendent and Water Superintendent accrue paid vacation at the rate set forth above and are generally subject to this Vacation policy; but they each shall also receive an additional 40 hours of paid vacation per year, the balance of which will be paid out at their respective then-current base rates of pay if not used by the end of the year. No such balance may be carried over from year to year. 41. PURCHASED VACATION TIME (PVT) Upon starting employment and during each annual open enrollment period, an employee may purchase up to 40 hours of additional paid vacation time. If an employee decides to purchase vacation time, the employee pays for the hours on a pre-tax basis. The cost of 44 June 2022 48696398v4 99 the purchased vacation time will be deducted equally from each paycheck over the course of the year and paid out at the rate in effect upon payout. Vacation is purchased in one-hour increments with a minimum purchase of eight hours and a maximum purchase of 40 hours. Per IRS regulations, the purchased vacation time can only be used once the employee’s entire accrued vacation time has been exhausted. Purchased vacation hours must be used in the calendar year in which they are purchased. Any purchased vacation hours that have not been used before the second to last pay period end date of the calendar year will automatically be paid out in the last paycheck of the calendar year in which the vacation time was purchased, at the rate in effect at the time of payout and subject to withholding at the supplemental tax rate. Therefore, purchased vacation time will not be available for use in any year after mid-December. Upon separation from employment, if purchased vacation time used exceeds the cost of such purchase that has been deducted up to that time, the employee must pay the difference back to ERMU. However, if the employee has remaining purchased vacation time that has not been used, it will be paid out to the employee upon separation. New employees are allowed to buy purchased vacation time based on their benefit eligibility date, as listed in the chart below. Benefit Eligibility Date Maximum PVT Hours Eligible for Purchase January – March 40 Hours April – May 32 Hours June – July 24 Hours August – September 16 Hours October – November 8 Hours December0 Hours 42. PAID SICK LEAVE Regular full-time employees accrue sick leave at the rate of 3.70 hours per pay period (approximately 8 hours per month or 12 days per year). If an employee is on leave and using sick leave less than the regular 8-hour day, and so not receiving full pay, the accrual is calculated on a pro rata basis. Regular part-time employees accrue sick leave pro rata based on the full-time accrual rate. Temporary and seasonal employees are not eligible for sick leave. Sick leave may be used for illness and for visits to a health care provider (including any visit that would qualify for reimbursement under IRS Flexible Health Care Spending Accounts guidelines, which include, for example, medical doctors, dentists and optometrists). Sick leave may be used to cover illness or visits of the employee or the employee’s child or another “covered relative” as defined below, or for purposes of 45 June 2022 48696398v4 100 parenting leave in accordance with Minnesota law. To be a “covered relative” under this policy an individual must have same residence address as the employee and must receive substantially all of his or her financial support from the employee. Sick leave may also be used when an employee’s daycare facility is closed due to sickness. Documentation from a health care provider may be requested by the Utilities in its sole discretion. Misuse of paid sick leave may result in disciplinary action. In addition, an employee’s sick time can also be used for a “safety leave” for covered relatives for the purpose of providing or receiving assistance due to sexual assault, domestic abuse or stalking. See also Minnesota Sick Family Member or Safety Leave, Section No. 55, below. Sick leave may not be used for the purpose of extending an employee’s active employment with the Utilities or for retaining a full-time equivalency percentage that is not based on an employee’s actual planned and scheduled working time. Employees are required to notify their immediate supervisor at least thirty (30) minutes prior to the start of their regular working hours if they intend to be absent from work. If an emergency prevents the employee from notifying his/her supervisor at such time, the employee is expected to call as soon as possible during the workday. Employees are also required to keep their supervisors informed of their condition and anticipated return to work. An employee attempting to use sick time for reasons other than those explicitly permitted in this policy will be subject to disciplinary action up to and including termination. A doctor’s certification of the need for sick leave in accordance with this policy shall be required if an employee is absent more than four (4) days or if abuse of sick leave is suspected by the employee’s immediate supervisor, a Utilities manager, Director, or the Human Resources Representative. In some circumstances, an employee may be requested to submit to a medical examination by an appropriate health care provider to confirm whether the employee is fit for duty. In such a circumstance, the Utilities may select the health care provider to conduct the examination. Unused sick leave will not be paid out in wages upon termination of employment, but in some circumstances is subject to limited conversion under the Health Care Savings Plan policy found elsewhere in this Handbook. 43. PAID HOLIDAYS Regular full-time employees who are non-exemptwill be paid for eight (8) hours at their base wage rate for each of the following holidays: New Years Day Veterans Day Martin Luther King Day Thanksgiving Day 46 June 2022 48696398v4 101 Presidents Day Friday following Thanksgiving Day Memorial Day Christmas Eve Day Independence Day Christmas Day Labor Day Eligible part-time employees who are non-exempt will receive paid holidays on the same basis as regular full-time employees, except that holiday pay will be pro-rated according to the number of hours worked. Exempt employees are permitted to observe the designated holidays above without reduction of their salary. If the holiday falls on a Saturday, the preceding Friday will be observed. If the holiday falls on a Sunday, the following Monday will be observed as a holiday. Employees will not receive holiday pay for any holiday that falls during any leave of absence. 44. EMPLOYEE CLOTHING It is required that employees wear clothing items specified by the Utilities for their position and activity during working time. For regular field workers potentially exposed to electric hazards, the Utilities will provide an initial issue of five fire retardant long sleeved shirts, five fire retardant pants, and five fire retardant tee shirts per outside employee exposed to electric hazards. A second set of five fire retardant long sleeved shirts, five fire retardant pants, and five fire retardant tee shirts will be issued after the probationary period. As an alternative option, one fire retardant hooded fleece may be substituted for two fire retardant long-sleeved shirts and/or one sweatshirt may be substituted for two long-sleeved shirts. Field Supervisors may substitute logoed fire retardant dress shirts for fire retardant uniform shirts. Provided clothing may also include: lineman’s climbing boots, summer work boots, rubber boots, rubber overshoes, insulated winter boots, and coveralls (used for maintenance on trucks). The Utilities will issue a check to the supplier for the covered items. For Commissioners and employees other than regular field workers, the Utilities will provide a $75 annual allowance for Utilities logo clothing. On an annual basis, the Utilities will replace worn out items that have been provided by the Utilities. Worn out items should be turned in to the Utilities. The Utilities will also provide and replace the following as necessary in the Utilities’ discretion: fire retardant lined and unlined bib overalls, fire retardant lined parka and hood, fire retardant lined bomber jacket, and hats with the appropriate emblems and identification. Upon the end of employment with the Utilities, an employee must return all Utilities- logoed clothing items that were issued to him or her that were paid for by the Utilities. 47 June 2022 48696398v4 102 45. HEALTH CARE SAVINGS PLAN Utilities’ employees participate in the Minnesota Post Employment Health Care Savings Plan (HCSP) established under Minn. Stat. § 352.98 and as outlined in the Minnesota State Retirement System’s Trust and Plan Documents.All funds collected by the employer on behalf of the employee will be deposited into the employee’s Post Employment Health Care Savings Plan account. General participation rules are outlined below, for a complete guide regarding benefits, use, and eligibility see the plan’s documents. 1. Employees are required to contribute to the Post Employment Health Care Savings Plan. These funds will be deposited after each pay period. The contribution shall be based on the following structure: There will be four groups, concurrent with the pay plan. The four groups are Office, Field Workers, Line Workers, and Management. All groups shall participate in contributions as follows: a. Employees with fewer than 10 years of service are required to contribute 1% of their gross wages. b. Employees with fewer than 20 years of service and at least 10 years of service are required to contribute 2% of their gross wages. c. Employees with at least 20 years of service are required to contribute 3% of their gross wages. 2. Employees who have accrued over 960 hours of sick time will have 50% of those hours converted to cash and deposited in their Post Employment Health Care Savings account. The conversion will take place once a year at the end of December. 3. Employees who voluntarily end their employment and who give the Utilities proper (generally at least two-weeks) notice, and employees whose employment ends involuntarily because of lack of work, will have 50% of unused sick leave, up to a maximum of 120 days, converted into cash and deposited into their Post Employment Health Care Savings account provided they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. Employees involuntarily terminated by the Utilities for any reason other than lack of work shall not be eligible to receive such conversion. No contributions will be accepted by the Plan on behalf of an employee after the death of the employee. 4. Employees who retire immediately eligible to claim their pension and who give the Utilities proper notice (generally at least two-weeks) shall have 100% of unused vacation time converted into cash and deposited into their Post Employment Health Care Savings account, but only on the condition that they sign and do not rescind an agreement releasing claims arising out of their employment, in a form prescribed by the Utilities. 48 June 2022 48696398v4 103 46. 457 DEFERRED COMPENSATION The Utilities will match funds contributed by employees, up to a maximum contribution of $2,500.00. These plans are administered by the Minnesota State Deferred Compensation Plan and/or Wenzel & Associates’ John Hancock Plan. Employees in the Management Pay Group are eligible for an additional employer matching (dollar for dollar) contribution up to 2.5% of themanager’s annual base salary, conditioned on the individual providing the Utilities with authorization for the necessary payroll deduction and subject to applicable legal limits to such contributions. All Utilities employees are subject to Minnesota law capping public employee salaries based on the Governor’s salary. Certain definitions and exclusions apply from time to time to the calculation of salaries under that cap, including, for example, vacation and sick leave allowances. . Each employee will be paid that portion of the employee’s assigned salary that is permitted by law to be paid. An employee whose salary and otherforms of compensation exceed the amount permitted by law to be paid is entitled to receive paid leave time in lieu of that portion of the salary that exceeds the amount permitted by law to be paid. The amount of such paid leave credit will be calculated using the employee’s annual rate of pay established pursuant to the applicable compensation policy and plan. The Commission and the General Manager are each authorized to establish the assigned salary using the provisions of this policy and the compensation plan established by the Commission. Further information about this Leave Credit is available from management or Human Resources upon request. For more information about the Utilities’ benefit plans consult the summary plan descriptions that have been distributed to each employee, additional copies of which are also available upon request. 47. HEALTH INSURANCE COVERAGE For eligible employees who regularly work 30 hours per week and enroll in a health insurance plan provided by the Utilities, the Utilities will pay a majority of the premium charged, and will set the employee share of the premium for each level of coverage available. The Utilities current group health insurance allows the Utilities to offer a Health Savings Account-related plan. Plans, plan designs, and employee share of premiums may change from time to time. The amount of the monthly premium for a health insurance plan 49 June 2022 48696398v4 104 that is the responsibility of the employee is currently as follows. Premiums and employee shares are subject to change from time to time. COVERAGE MONTHLY EMPLOYEE SHARE Employee $105 Employee + 1 $210 Family $315 Employees should consult the applicable Summary Plan Description (SPD) for details regarding coverage and eligibility. A copy of the SPDwill be provided to employees and is available upon request. 48. DENTAL INSURANCE Eligible employees who regularly work at least 30 hours per week and who enroll in the Utilities’ dental insurance plan, the Utilities will pay seventy-five percent (75%) of the monthly premium per employee/family for dental insurance. Any monthly premium over and above 75% of the dental coverage is the responsibility of the employee. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 49. LONG-TERM DISABILITY A Long-Term Disability Plan is provided to eligible employees who regularly work at least 30 hours per week. Schedule amount: 60% of Monthly Earnings subject to a maximum amount of $5,000.00 per month. Employees must be employed for two (2) months to qualify for coverage. Employees should consult the Summary Plan Description fordetails regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 50. LIFE INSURANCE Life insurance is provided to each employee at a rate of Two and One Half times (2½) the employee’s annual salary, to a maximum of $85,000.00. Employees should consult the Summary Plan Description for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 51. VISION INSURANCE Eligible employees who regularly work at least 30 hours per week are eligible to enroll in the Utilities’ vison insurance plan. The monthly premium for vision coverage is the responsibility of the employee. Employees should consult the Summary Plan Description 50 June 2022 48696398v4 105 for details regarding coverage and eligibility. A copy of this description will be provided to employees and is available upon request. 52. HOME COMPUTER LOAN POLICY In an effort to encourage all employees to develop and improve their computer skills, employees may purchase a home computer per the following guidelines. 1. The purchased computer and software shall be new, not reconditioned, not used. 2. The purchased computer shall be used in the employee’s home. 3. Employee must provide a receipt reflecting the purchase of this computer. 4. The Utilities will provide an interest-free loan for the purchase of this computer up to $1,200.00, for a term not to exceed 12 months. 5. Employee will repay the computer loan to the Utilities in not more than 25 equal installment payments authorized and made through payroll deduction, upon the employee’s election by signed authorization form. 6. Employee must maintain ownership and possession of the computer for the duration of the loan term. 7. If the employee leaves the Utilities before the loan is paid back in full, the Utilities will withhold the outstanding portion of the loan from the employee’s final paychecks (including any check for unused and unpaid benefits) as authorized by the employee in the authorization form signed at the time the loan is made. 53. EDUCATIONAL ASSISTANCE The Utilities will provide financial assistance to eligible employees for pre-approved courses that are job related, lead to a job-related degree, or are within areas beneficial to the Utilities in its discretion and pursuant to this policy. With regard to education required by the Utilities or in connection with a Utilities-approved apprenticeship training program, check with a Utilities manager or Director. 1. All full-time Utilities employees with at least three months of continuous employment are potentially eligible for reimbursement under this policy. 2. The Utilities may pay up to 100% reimbursement of the costs for tuition, registration, fees, books and course required materials after successful completion of a pre-approved course. Courses must be at accredited colleges, universities, or vocational schools or be short courses conducted by recognized professional training organizations. 3. A course may be approved if: a) It is directly related to the employee’s work for the Utilities. b) It is required by a program of study leading to a degree that is directly related to the employee’s work for the Utilities. 51 June 2022 48696398v4 106 c)It will improve the employee’s work for the Utilities. d) It is expected to be completed within a time acceptable to the Utilities. 4. This policy will not cover recreational or personal interest courses. 5. Prior to registration, the employee must have full approval for the course from Utilities’ management designated as having approval authority for such matters. 6. The Utilities reserves the right to disapprove educational assistance requests and to amend or eliminate this policy from time to time in its discretion. 7. Total reimbursements to an employee during the academic year may not exceed $3,000. 8. Not eligible for reimbursement are costs of: a)late fees and fees due to an employee error b) meals, transportation, lodging, insurance, etc. 9. If an employee is eligible for education assistance from any outside source (e.g.: G.I. Bill, grants, scholarships, etc.), the employee must apply for any assistance first and request the balance through this Education Assistance Policy. 10. Termination of employment prior to completion of a course will disqualify the employee for educational assistance. 11. Courses not satisfactorily completed within the time expected or otherwise acceptable to the Utilities will not receive reimbursement but must instead be paid for by the employee. 12. Course attendance and preparation must take place outside of scheduled work hours and must not jeopardize the employee’s work performance. 13. Employees will be paid for any time used in attending courses for which they are required by the Utilities to attend. All tuition and fees for such course will be paid for by the Utilities. LEAVES OF ABSENCE The Utilities provides leaves of absence according to the following policies. Unless otherwise indicated, all leaves of absence are unpaid. However, employees taking unpaid leave are required to concurrently use any paid vacation or other paid time they have available concurrently with their unpaid leave, beginning with using accrued paid vacation time. 52 June 2022 48696398v4 107 An employee requesting a leave of absence must complete a Request for Leave of Absence form. Forms for requesting a leave of absence are available from the Human Resources Representative. When possible, advance notice of a leave should be provided to an employee’s supervisor so work schedules can be adjusted accordingly. 54. PARENTING LEAVE Under the Minnesota Parental Leave Act, a Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the twelve (12) months preceding a leave is entitled to take up to twelve (12) weeks of unpaid leave as follows: An eligible biological or adoptive parent make take such leave for the birth or adoption of a child; and An eligible female employee may take such leave for prenatal care or incapacity due to pregnancy, childbirth, or related health conditions. An employee requesting parental leave must give the Utilities at least thirty (30) days advance notice of the start and end dates of the requested leave, unless such notice is not possible due to legitimate unanticipated factors in which case as much notice as is possible should be given. For a leave for the birth or adoption of a child, the leave must begin within either 12 months of the birth or adoption or, if the child must remain in the hospital longer than the mother, within 12 months of the child leaving the hospital. Insurance benefits will continue during the leave, but the employee must pay his or her portion of the premiums during the leave and will be required to reimburse the Company for premiums paid by the Company during the leave if the employee does not return to work following the leave. If any employee is eligible for parental leave under both the FMLA and the MN Parental Leave Act, the parental leave time taken under the Company’s FMLA leave policy will run concurrently with time taken under this policy. If you are eligible for both unpaid MN parental leave and any paid vacation or long-term disability insurance, you must use this paid time off or salary continuation benefit during any MN parental leave period up to the amount needed to cover the entire parenting leave. Following leave under this policy, an employee will be reinstated to his or her same job or one with comparable duties, hours, and pay. 55. MINNESOTA SICK FAMILY MEMBER OR SAFETY LEAVE A Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the past twelve (12) months may use his or 53 June 2022 48696398v4 108 her accrued sick time tocare for the employee’s sick or injured child, stepchild, foster child, adopted child, adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild (including a biological, step, foster, or adopted grandchild) for reasonable times as the employee’ s attendance may be necessary. This type of leave is referred to as a “Sick Family Member Leave”. In addition, a Minnesota employee who has worked for the Utilities for at least 12 months and who has worked at least one-half (1/2) time during the past twelve (12) months may use his or her accrued sick time to receive assistance or provide assistance to the employee’s child, stepchild, foster child, adopted child, adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild (including a biological, step, foster, or adopted grandchild) because of domestic abuse (as defined in Minn. Stat. §518B.01), sexual assault (as defined in Minn. Stat. §§609.342, 609.3453, or 609.352), or stalking (as defined in §Minn. Stat. 609.749). This type of leave is referred to as a “Safety Leave.” Eligible employees are limited to using a maximum of 160 hours of sick time in any 12- month period for a Safety Leave or for a Sick Family Member Leave resulting from the illness of or injury to the employee’s adult child, spouse, sibling, parent, parent-in-law, stepparent, grandparent, or grandchild. Sick time under this policy must be used in the same manner as the employee would use the sick time for his/her own illness. Please note that, if an employee is also eligible for FMLA leave to care for a sick family member, FMLA leave and Minnesota Sick Family Member Leave time will run concurrently. 56. SCHOOL ACTIVITIES LEAVE POLICY Employees who have worked at least one-half time during the preceding twelve months are entitled to up to 16 hours leave during any 12-month period to attend school conferences or classroom activities related to the employee’s child, provided the conferences or classroom activities cannot be scheduled during non-work hours. If an employee’s child receives child care services or attends a pre-kindergarten regular or special education program, the employee may use the leave time to attend a conference, or activity related to the employee’s child, or to observe and monitor the services and program, provided the conference, activity or observation cannot be scheduled during non-work hours. When the need for leave under this section is foreseeable, the employee must provide reasonable prior notice of the leave to his or her immediate supervisor and make a reasonable effort to schedule the leave so as not to unduly disrupt Utilities business. Regular paid sick leave may not be used for purposes of this school activities leave. 54 June 2022 48696398v4 109 57. BONE MARROW AND ORGAN DONATION LEAVE Employees who work an average of twenty (20) or more hours per week who seek to undergo a medical procedure to donate bone marrow or an organ or partial organ will be granted up to forty (40) hours of paid leave. Regular sick leave need not be used when this Bone Marrow and Organ Donation Leave policy is applicable to the circumstances. The Utilities may require verification by a health care provider of the purpose and length of each leave requested by the employee pursuant to this policy. 58. NATIONAL GUARD AND RESERVE LEAVE Any officer or employee of the Utilities who is a member of the National Guard or other reserve unit is entitled to a leave of absence from public office or employment without loss of pay, seniority status, efficiency rating, vacation leave, sick leave, or other benefits for the time that he/she is engaged with the reserve in training or active service so long as such leave does not exceed a total of fifteen (15) days in any calendar year. Such leave will be allowed only in cases where the required military or naval service is satisfactorily performed. Such leave will not be allowed unless the officer or employee: Returns to the public position immediately on being relieved from such military or naval service and not later than the expiration of the time herein limited for such leave; or Is prevented from returning to Utilities employment by physical or mental disability or other cause not due to the officer’s or employee’s own fault; or Is required by proper authority to continue in such military or naval service beyond the time herein limited for such leave. 59. MILITARY LEAVE FOR UNIFORMED SERVICE Except as provided otherwise in the National Guard and Reserve Leave Policy above, employees who are members of, apply to perform, or have an obligation to perform service in a uniformed service will be granted an unpaid leave of absence to perform such service. Military leave requests shall be made to the immediate supervisor. The term “uniformed service” means the Armed Forces, the Army National Guard and the Air National Guard when engaged in active duty, active dutyfor training, initial active duty for training, inactive duty training, full-time National Guard duty, the commissioned corps of the Public Health Service, and any other category of persons designated by the President in time of war or emergency. As soon as an employee is informed of the dates of the military training, he or she should notify his or her supervisor and request a leave of absence, even if he or she has not yet received written orders. 55 June 2022 48696398v4 110 In the case of an employee whose period of military service is less than 31 days, an employee must report back to his or her job at the first regularly scheduled shift after the completion of military service and the time required for return from the place of military service to the place of civilian employment. An employee called to active duty for more than 30 days, but less than 181 days, must report back to his or her job not more than 14 days after the completion of his or her military service. An employee called to active duty for more than 180 days must report back to his or her job not more than 90 days after the completion of his or her military service. This Policy is not intended to preclude leave with pay as may be provided in the National Guard and Reserve Leave Policy above. 60. JURY/WITNESS DUTY LEAVE Employees will be allowed a leave of absence pursuant to state statute without restriction or sanction when called for jury duty. An employee performing jury duty or subpoenaed as a witness in court or voluntarily serving as a witness on behalf of the Utilities in a case in which the Utilities is a party will receive the difference between his/her regular rate of pay and the amount received as juror or witness up to the maximum allowed by state or federal law. The employee must notify his/her supervisor and complete a leave of absence form within 48 hours of receiving call for jury duty. An employee excused or released from jury duty during his/her regular work hours must report to his/her supervisor immediately thereafter. Time spent on jury duty will not count as time worked in computing overtime. 61. PERSONAL LEAVE DAY Each January 1st, every regular employee will be credited with one day of paid personal leave, which will be available to be taken during the next 12 months, with the scheduling approval of management. This day, if unused, will not be carried over from year to year, and it is not paid out or converted upon separation from employment. 62. BEREAVEMENT LEAVE A leave of absence, with pay and fringe benefits may be granted to a regular full-time employee for a maximum of three (3) days in the event of the death of a spouse, child, parent, brother, sister, grandparent, grandchild, or parent-in-law, brother-in-law, sister-in- law, grandparents-in-law, step-parents, step-siblings and step-children. 56 June 2022 48696398v4 111 63. GENERAL LEAVE The Utilities recognizes that circumstances of a unique personal nature may cause an employee to seek time off without pay. The Utilities may, at its sole discretion, grant unpaid personal leaves of absence to employees (“General Leave”). Approval is required of the employee’s immediate supervisor and the General Manager before General Leave will be granted. In no event will General Leave be granted for longer than ninety (90) days, unless special approval is received from the General Manager. Vacation and sick leave will not accrue during a General Leave. Further, the employee on General Leave will not be eligible for holiday pay during the leave. The Utilities will not contribute to the cost of insurance premiums for an employee on General Leave. Employees are expected to return from General Leave when the reason for the leave expires. Employees who take a General Leave have no right to reinstatement. 64. VOTING LEAVE; SERVICE AS ELECTION JUDGE Under Minnesota Statutes Section 204C.04, employees who are eligible to vote in an election to fill a vacancy in the office of United States Senator, United States Representative, State Senator or State Representative, or a presidential primary have the right to be absent from work for the time necessary to vote and return to work on the day of that election without penalty or deduction from salary or wages because of the absence. The Utilities will not abridge or interfere with this right. The Utilities will provide an employee with paid time off to serve as an election judge, provided that the employee gives the Utilities at least 20 days’ advance written notice. The Utilities will reduce the employee’s pay by the amount the employee is paid to serve as an election judge. 65. PAID LEAVE DONATION With the written consent of the Utilities’ General Manager or Finance Manager, employees wishing to do so may voluntarily donate accrued paid leave time that is presently available for use by the donor employee to a co-worker who is experiencing a major or catastrophic life event in the form of a medical emergency, loss of a family member, or other extraordinary circumstance (subject to management approval) necessitating time off from work for which the receiving employee has insufficient paid time off available. Examples of such a life event include, but are not limited to, a heart attack, stroke, organ transplant, or other medical condition of the employee or a family member for whose care the employee bears substantial responsibility. An employee will be eligible to receive and use donated paid leave only if the following conditions are satisfied: 57 June 2022 48696398v4 112 1. The receiving employee must submit a request for paid leave donation in the form prescribed by the Utilities. 2. The receiving employee’s request for leave must be based on medical need to be absent from the workplace that is supported by documentation from a health care provider. 3.There is a reasonable expectation based on a treating provider’s documentation that the receiving employee will return to work within a reasonable time following any leave of absence unless the employee qualifies for long term disability insurance benefits. 4. The receiving employee is currently eligible to accrue sick leave and vacation under the Utilities’ policies. 5. The receiving employee has exhausted all of the employee’s own paid leave time including all sick, vacation, compensatory, and other paid time. 6. The sick leave taken by the receiving employee will not be subject to income replacement by disability or workers compensation insurance. The following additional conditions apply to leave donation under this policy: 1. All donations must be made in increments of eight (8) hours subject to a limit of 16 hours per donor to a particular recipient per year. Leave donation must be in one of the following configurations: i) a total of eight hours of paid sick leave; ii) a total of eight hours of vacation; iii) a total of sixteen hours, with eight hours being vacation and eight hours being paid sick leave; iv) a total of sixteen hours, with sixteen hours being paid sick leave; v) a total of sixteen hours, with sixteen hours being vacation time. 2. The donor employee must complete a Paid Leave Donation Form prescribed by the Utilities in order to donate paid leave. 3. The total amount of paid leave donated to any individual employee in any rolling twelve-month period measured backward from the employee’s most recent request for leave donation may not exceed 240 hours. 4. The Utilities will set a deadline for donations of paid leave to the receiving employee (“Donation Deadline”). No donations of paid leave will be accepted in response to the receiving employee’s Request for Paid Leave Donation after the Donation Deadline. 5. The Utilities will set a date on which submitted donations of paid leave will become final and effective (“Donation Effective Date”). The Donation Effective 58 June 2022 48696398v4 113 Date shall be no more than ten business days after the deadline for donations to the receiving employee. 6. Before the Donation Effective Date, if Paid Leave Donation Forms are submitted for a total amount of leave that is more than the number of hours requested by the employee in the Paid Leave Donation Request Form, or for more than the maximum total donation of 240 hours, the Utilities will pro rate donations to the maximum allowed, among all employees submitting a Paid Leave Donation Form for the receiving employee and will notify all such employees in writing of such pro rating and the final number of hours from their Paid Leave Donation Form that will be donated to the receiving employee on the Donation Effective Date. 7. On the Donation Effective Date the Utilities will transfer all paid leave donations that are indicated collectively on the Paid Leave Donations Forms submitted, prorated, if necessary, in accordance with this policy, to the account of the receiving employee; and will reduce the corresponding account balances of the donating employees accordingly. 8. Donation of paid leave is permanent and final as of the Donation Effective Date and cannot be rescinded thereafter. Donated paid leave may not be transferred back to the donor after the Donation Effective Date under any circumstances. If the donated paid leave is not used by the receiving employee it is forfeited by all parties. 9. Donated paid leave time may be used by the receiving employee only for purposes of the medical leave necessitated by the catastrophic life event supporting leave donation under this policy. 10. Donated paid leave may be used by the receiving employee only for work time actually and necessarily missed due to the leave taken for the purpose set forth in the leave request submitted under this policy, and for no other purpose. 11. Donated paid leave may be used by the receiving employee only to replace the employee’s normal work hours lost, up to a maximum of the receiving employee’s FTE (measured as of the date on which the leave begins). 12. Donated paid leave must be used by the receiving employee concurrently with any applicable unpaid leave available to the receiving employee. 13. Donated paid leave must be used during the leave taken for the purpose submitted in the leave request under this policy. 14. Donated paid leave not used as described in this policy will be forfeited by the recipient. 59 June 2022 48696398v4 114 15.When used by the receiving employee, donated paid leave will be paid at the receiving employee’s current rate of pay. 16.The donation of paid leave time will permanently decrease the amount of accrued unused paid leave in the donor’s paid leave account(s) and thereafter will not be counted or used by the donor or the Utilities for any purpose. For the avoidance of doubt, this means, among other things, that donated paid leave time does not qualify to be counted as unpaid sick leave for purposes of any severance pay calculation. 17. The Utilities will treat the identity of donor employees under this policy as private and confidential information. 18.This policy applies on a prorated basis to part-time employees eligible to accrue and receive paid leave time. 46703186v1 60 June 2022 48696398v4 115 RECEIPT AND ACKNOWLEDGMENT (EMPLOYER COPY: MUST BE SIGNED AND RETURNED TO MANAGEMENT) By signing this receipt, I acknowledge that I have received a copy of the Elk River Municipal Utilities Employee Handbook (the “Handbook”). This Handbook and the policies contained or referenced in the Handbook supersede and replace previously- issued handbooks, contrary oral or written statements of employment policy, and contrary employment practices. I understand that the Employee Handbook may be amended at any time, with or without notice. I understand that I do not have a protected property interest in my employment with the Utilities. I also understand that neither this Handbook nor any provision in it creates a contract of employment for any particular duration between the Utilities and me. Further, I understand that nothing in this Handbook creates a contract with specific terms between the Utilities and me. I acknowledge that it is my responsibility to become and remain informed about the employment policies and practices of the Utilities and to abide by the rules, regulations, standards and policies of the Utilities, including those contained in this Handbook. I also understand that any violation by me of the Utilities’ rules, regulations, policies, practices, or standards is just cause for discipline, up to and including termination of my employment. Date Print or Type Name Employee Signature 61 June 2022 48696398v4 116