Theo Chocolate, Inc. Employee Handbook
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Theo Chocolate, Inc. Employee Handbook
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TABLE OF CONTENTS
TOPIC Page
WELCOME TO THEO CHOCOLATE......................................................................................... 4
ABOUT THEO CHOCOLATE..................................................................................................... 5
PURPOSE OF THE HANDBOOK .............................................................................................. 6
I. POLICIES & PRACTICES....................................................................................................... 7
Equal Employment Opportunity .............................................................................................. 7
Communication and Problem Solving ..................................................................................... 7
Protected Concerted Activity................................................................................................... 8
Working at Theo ..................................................................................................................... 9
Workweek/Scheduling ......................................................................................................... 9
Breaks and Rest Periods ..................................................................................................... 9
Recording Work Hours .......................................................................................................10
Overtime.............................................................................................................................11
Employee Meetings ............................................................................................................11
Inclement Weather or Other Unforeseen Situations............................................................11
Pay Periods and Pay Distribution...........................................................................................12
Job Changes .........................................................................................................................12
Performance Feedback and Development .............................................................................13
II. CLASSIFICATION AND COMPENSATION...........................................................................15
Employment Classifications ...................................................................................................15
Compensation Philosophy .....................................................................................................15
Pay Adjustments....................................................................................................................16
Compensated Absences........................................................................................................17
Holidays .............................................................................................................................17
Personal Time Off...............................................................................................................17
Unpaid Absences...................................................................................................................19
Medical Leaves of Absence ................................................................................................19
Maternity Leave ..................................................................................................................20
Military Leave .....................................................................................................................20
Domestic Violence Leave ...................................................................................................20
Miscellaneous Leaves of Absence......................................................................................21
III. BENEFITS ...........................................................................................................................22
Medical Insurance..................................................................................................................23
Annual Physical Examination & Influenza Vaccinations .........................................................23
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 201211303 Disability Insurance................................................................................................................23 Dental Insurance....................................................................................................................24 Retirement Savings ...............................................................................................................24 Bus Pass Program.................................................................................................................24 Volunteer Activities ................................................................................................................24 Employee Purchases .............................................................................................................24 IV. STANDARDS OF CONDUCT ..............................................................................................25 Attendance and Punctuality ...................................................................................................25 Harassment ...........................................................................................................................25 Personal Visitors....................................................................................................................26 Equipment and Technology Use ............................................................................................26 Theo Products .......................................................................................................................26 Appropriate Dress in the Workplace.......................................................................................26 Drug and Alcohol Use ............................................................................................................27 Non-Solicitation in the Workplace ..........................................................................................27 Confidentiality ........................................................................................................................28 Social Media ..........................................................................................................................28 Weapons ...............................................................................................................................28 Violence in the Workplace .....................................................................................................28 Smoking.................................................................................................................................29 V. YOUR SAFETY ....................................................................................................................29 Health and Safety ..................................................................................................................29 Reporting Safety Issues.........................................................................................................29 First Aid Stations....................................................................................................................30 Fire Prevention ......................................................................................................................30 Property and Equipment Care................................................................................................30 Safety Gear ...........................................................................................................................30 Safe Work Habits...................................................................................................................31 Food Handling and Good Manufacturing Practices ................................................................31 VI. CONCLUSION.....................................................................................................................32 NOTES: ....................................................................................................................................33 Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
4 WELCOME TO THEO CHOCOLATE Welcome to Theo Chocolate, Inc. (“Theo”). We take great pride in our company, our mission, our products, and -- of course – our people. Theo hopes to provide a stimulating work environment, opportunities for personal growth, and job satisfaction. We strive to provide rewards and recognition for dedicated service and for performing well on the job. Theo recognizes that team members are our most valuable resource. At Theo, we believe it is important that we share common values. Foremost, we value respect for one another. Second, we value high performance from both individual employees and the teams in which they work. We expect our team members to take pride in their work and respond to our guests, customers and suppliers with the highest integrity. On behalf of everyone here at Theo, we welcome you to our team. We hope you will find your employment with us a rewarding and challenging experience. Joseph Whinney Founder and Chief Executive Officer Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
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ABOUT THEO CHOCOLATE
Our Mission:
We’re dedicated to making our world a better place. And we’re finding ways to do it through our
passion—bringing out the best of the cocoa bean. We are all connected. We touch one
another’s lives in incredible ways. And we are responsible to and for one another. From the
cacao farmer in the Congo, to the truck driver in Seattle, to the chocolate lover in Philadelphia—
there is a thread that runs through us all. Theo believes in celebrating those connections, in
strengthening them and in finding inspiration within them—inspiration to change the world. We
know that every action has a result. That the choices we make here in Seattle, Washington
touch lives across the planet in real and lasting ways. That knowledge, and that responsibility, is
what drives us to do things differently, to help make the world a better place. We think about
every choice we make, every action we take and how it will impact our interconnected world.
Theo Chocolate started in 2005 and we produced our inaugural batch of chocolate in 2006. As
the first organic and Fair Trade “Bean to Bar” chocolate factory in the United States, Theo
carefully selects ingredients to ensure they meet our standards for not only quality, but also
social and environmental responsibility. Theo’s standards and practices include:
• Using only pure ingredients that are grown as sustainably as possible. We source our
ingredients locally whenever possible.
• Partnering with our growers by ensuring that they have the tools to produce the highest
value cocoa, have access to markets that fairly value their crop and have access to
education for their families.
• Respecting our employees and suppliers.
• Ensuring our product has high quality and integrity. We do this by controlling every step
of our own manufacturing process.
• Continuing to reach for positive environmental impact of our own operation.
• Using sustainable packaging and printing methods wherever possible.
• Educating everyone we touch about social responsibility and environmental
accountability.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 201211306 PURPOSE OF THE HANDBOOK At Theo we pride ourselves on being nimble rather than relying on a bookshelf of thick manuals to direct every step we take. We operate to a simple, overriding principle: “Do the right thing”. Of course, as creative, engaged and energetic individuals, Theo team members might sometimes hold different views of what is the “right thing”. Also, as any group of people grows larger, there’s value in writing down a few things. Theo developed this Employee Handbook to help you understand the basic points regarding your importance to the Theo team, employment with our company, and general expectations of Theo employees. This Handbook also presents an overview of the policies, benefits, and work environment provided by Theo Chocolate. Please read the Handbook carefully. It’s important that you familiarize yourself with your rights and responsibilities as a Theo Chocolate employee. Failure to follow Theo policies and standards, or meet expectations, may result in review and disciplinary action, up to, and including termination of employment. So, if you have any questions, please request clarification . . . ask your immediate manager, Human Resources or any Theo executive. This Handbook is not designed to cover all conceivable situations or answer every possible question. If you wish more detailed information on any of these policies or have other questions, please feel free to ask your immediate manager, Human Resources, or any company executive. As a company, Theo is committed to continually improving things to the extent possible. Your comments, questions, concerns and ideas are important ingredients in helping Theo Chocolate grow in the right direction. Legal Stuff - - - The guidelines and policies contained in this Handbook are not designed to be, nor do they create, a contract for employment. Laws and other regulatory expectations often evolve over time, as does the business climate in which Theo operates. Accordingly, as a business, Theo Chocolate reserves the right to amend, modify, or discontinue any benefit or policy at its sole discretion, with or without prior notice. Employees will be informed of any changes to this Handbook. As Washington is an “at will” employment state, both you and Theo Chocolate have the right to terminate the employment relationship at any time with or without reason. The provisions of this handbook take precedence over all other verbal and written representations that may have been made by Theo Chocolate representatives. No representative of the company, other than the Chief Executive Officer, in writing, has the authority to enter into any agreement contrary to the above. Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
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I. POLICIES & PRACTICES
Equal Employment Opportunity
Theo Chocolate is an equal opportunity employer that makes employment decisions on the
basis of merit and business needs. As a matter of policy and practice, Theo Chocolate does not
discriminate against employees and applicants on the basis of color, race, age, sex, national
origin, marital status, military status, veteran status, religion, sexual orientation, gender identity,
genetic information, the presence of any sensory, mental or physical disability, political ideology,
or other legally protected status or characteristic protected by local, state or federal law, with the
respect to recruitment, hiring, training, promotion and other terms and conditions of
employment. All employment decisions shall be consistent with the principle of equal
employment opportunity.
Theo employs only those individuals who are lawfully authorized to work in the United States.
In order to comply with federal immigration laws, we obtain information and documentation from
each employee to verify their authorization to be employed. Employees must complete a Form
I-9 and provide evidence of identity and authorization to work in the United States on the first
day of employment. These documents must be completed prior to starting work. This
documentation will be used for compliance with federal laws only and will not be used to make
any other employment related decisions. If your work authorization changes or terminates after
you have begun working at Theo, please immediately inform either your immediate manager, or
Human Resources.
Communication and Problem Solving
Theo Chocolate, its employees, managers and shareholders all understand that a large part of
the company’s success depends on the skill, creativity, diligence and dedication of the team
members employed at Theo. Demonstrating respect and appreciation for team members is not
only the right thing to do, and linked to the company’s mission, it’s a competitive advantage for
Theo Chocolate.
Theo is a fast-paced company that values nimbleness as a competitive advantage. Although
our environment is fast paced, Theo wants to ensure that employees have opportunities to
share their views with other employees, including management and company executives. The
company has various mechanisms to help foster and encourage communication.
All employee meetings – scheduled gatherings of all team members to share information
and provide the opportunity for questions.
Theo Link – a process that provides the opportunity for Theo employees to collaborate,
discuss issues or concerns, and share ideas to create new innovations and foster
community within the company. These ideas are presented and discussed with Theo’s
executives for honest consideration and response. If a decision is made to take action on
an idea, that initiative proceeds with the sponsorship and support of Theo’s executive
team.
“Open door” – Granted, Theo has no offices with doors, but we value openness and
transparency. Any team member can communicate directly with any company manager or
executive to ask questions, share concerns present ideas, etc. If you are having any
problems, if you're just wondering about something, or if there is a subject you want to talk
about, we want to listen and to discuss it with you. You can talk to anyone in this
company, including the Chief Executive Officer. All Theo managers and executives
support this “Open Door” policy.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 201211308 As with other relationships, effective communication at Theo is a shared responsibility between employees and the company’s managers. Employees are encouraged to approach Theo managers and those managers are expected to listen. Employees can raise matters in conversation or written form. Your immediate manager is the best person to talk to about job- related concerns, problems or grievances. If he or she is unable to provide a workable solution to your concern, problem or grievance, or if you are simply not comfortable discussing the subject with your immediate manager, you may consult with the next level of management, Human Resources, or any company executive. In doing so, please be clear if you are only “looking for an ear to listen”, or if you are requesting assistance solving the matter. Theo expects employees to share their concerns, problems, grievances and/or ideas; and in return, the company expects managers to listen and respond. Employees can raise matters without concern of retaliation from management or other employees. While effective communication does not mean that all team members will agree with all decisions, Theo believes such communication is the best way to positively raise concerns, influence change, and support the goals of both the company and employees. Open communication is a core value of the company. Theo Chocolate, its managers and executives support employees who communicate openly and honestly. Such communication improves our company and is encouraged. Protected Concerted Activity The National Labor Relations Act guarantees the right of employees to organize and bargain collectively with their employers, and to engage in other protected concerted activity. Theo Chocolate respects its employees’ rights under the law and expects that, consistent with the law, any such activity would be done on non-working time in non-working areas. Theo also expects employees to respect one another’s rights under the law. Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
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Working at Theo
Workweek/Scheduling
The typical Theo workweek starts on Sunday morning and runs through Saturday night.
“Regular hours” vary based on the business needs of different company functions.
Regular business office operating hours are Monday through Friday 9:00am -5:00pm.
Production hours may vary according to business demands; they can start early morning
and run to late evening, or even longer. While production days are generally Monday
through Friday, they can also extend to weekend days depending on demand for Theo
products.
Regular retail store hours are seven days 10:00am - 6:00pm, subject to seasonal
adjustments.
Accordingly, regular work hours are generally as follows:
Office: sales and administrative functions: 8:30am – 5:00pm or 9:00am – 5:30pm
Production: usually run staggered shifts throughout the day and evening, and shifts often
vary among different groups within Production (chocolate making, depositing, kitchen,
etc.). As business needs require, Theo can add extra shifts, up to and including 24
hours / day. The company typically pays additional compensation for hours worked on
the second and third production shifts.
Retail: varies, based on store and events schedule.
From time to time, business might require Theo to ask you to work a different shift than
originally assigned. For example, production hours will change according to business demands
and you may be asked to change from one shift to another. Office hours might need to extend
to cover periodic business increases. Theo understands the inconvenience a changed
schedule imposes on team members, works to minimize these situations, and provides as much
notice as possible.
Breaks and Rest Periods
Stated simply: no matter how busy we might find ourselves, Theo employees need to take
breaks. This is not only required by law, it’s the right thing to do. Here are Theo expectations
around breaks:
Rest breaks
A 15 minute rest break will be scheduled at an agreed upon time, as near as possible to
the midpoint of each 4 hour work period. If breaks can be better taken on an informal
basis throughout the day, and the employee and manager agree on this approach, then
the break schedule can be flexible.
Rest breaks may not be declined in order to leave work early or arrive late, and rest
breaks cannot be combined to extend a meal break.
Rest breaks are considered time worked for pay purposes; you need not clock out during
rest breaks.
You should use your rest break to handle personal issues, return a personal phone call
or just relax.
Given the importance of regular rest, the law requires --- and Theo expects --- team
members to take their rest breaks. Any employee feeling pressure to skip his or her
break should share that concern with a company manager, Human Resources or an
executive.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113010
Meal breaks
Employees working the minimum of a five hour shift will receive a 30 minute, unpaid
meal break.
Meal breaks are not considered time worked for overtime purposes. You must clock-out
during meal breaks.
Given the importance of food and rest, Theo expects employees to take their meal
breaks. Any employee feeling pressure to skip his or her meal break should share that
concern with a company manager, Human Resources or an executive.
If any employee wants to skip a meal break in order to leave early, that is allowable
under the following circumstances:
o this is the employee’s request, not the company’s, and
o the company’s business needs can accommodate the employee’s request, and
o the arrangement is approved – in advance – and documented in writing (form
available from Human Resources).
Effect of shifts exceeding eight hours
If an employee is working a shift exceeding eight hours, the break schedule must reflect the
longer hours.
Regardless of shift, no employee should work more than three hours without a rest
period.
Likewise, employees should not work more than five consecutive hours without a meal
break.
Please remember to wash your hands before returning to work from a break.
Recording Work Hours
Theo needs team members dressed for work and ready to begin their shifts by the scheduled
start time. Here are the expectations around time reporting:
Each team member is responsible for accurately reporting her/his time. Hourly
employees use a time recording system to record their time worked and must use this
device. Handwritten time cards are only acceptable if the time recording system is not
functioning.
You should report the hours you work, no more and no fewer. Employees are expected
to properly record their time; this is a fundamental expectation of employees.
If you make a mistake in recording your time, please let your immediate manager know
as soon as you become aware of the problem. Your manager is responsible for
reviewing and correcting the reported hours.
Under no circumstance should a team member ask another person to record their hours,
and no team member should ever record hours worked for another.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113011
Overtime
Theo intends to minimize overtime hours worked by employees because such hours can both
burden team members and increase the company’s expenses. Still, due to seasonal – or other
temporary -- situations, there may be times when team members are asked to work extra hours.
Although the law allows “mandatory” overtime, working overtime is not mandatory at Theo.
There are often employees who welcome the opportunity to work additional hours. Here are
the expectations around overtime:
Overtime is for temporary or seasonal circumstances; employees are not expected to
work overtime for an extended period of time.
Each employee is guaranteed at least 3 days off within any 21 day period.
Overtime should not be worked without the prior authorization of your manager.
Non-exempt employees will be compensated with overtime pay for any hours worked
over 40 hours in a workweek in accordance with Federal and State laws. In
Washington, overtime is measured on a workweek – not individual day – basis.
Overtime pay is calculated at 150% of the regular hourly rate.
Holidays, Personal Time Off (PTO), volunteer time, jury duty, or time away from work
due to a job-related injury are not considered time worked when calculating overtime.
No Theo manager should request a non-exempt employee to work “off the clock” and no
employee should ever feel obligated to do so. Any employee feeling pressure not to charge his
or her time should share that concern with a company manager, Human Resources or
executive.
Employee Meetings
Communication is valuable and it’s important that team members are informed of company
progress, business developments and current activities. Theo periodically holds meetings for
groups of employees, including company-wide meetings. These provide a forum for the
company’s management to share information and an opportunity for employees to ask
questions, express concerns, and share ideas.
The company will attempt to schedule these meetings at times that best accommodate the
availability of as many team members as possible. Considering the significance of retail and
factory operations, these meetings might be held at the start or end of a typical work day.
Given the importance of Theo meetings, employees are expected to attend these meetings and
non-exempt employees will record and be paid for their attendance.
Beyond “official” meetings, Theo employees sometimes host unofficial gatherings such as
holiday parties, movie nights, and other events. While all employees are welcome at these
activities, and these can be fun as team members apply their trademark creativity and energy,
attendance is not mandatory nor is it compensated.
Inclement Weather or Other Unforeseen Situations
On rare occasion weather, or other conditions, may create a situation where Theo operations
are curtailed. In such cases, there will be a formal communication starting from a company
executive. This will typically be made via email (or telephone), so employees are encouraged
to check their email in such circumstances.
Individual commutes can vary based on location, distance and mode of travel. Given the
variability of weather conditions, it is possible that while Theo operations are functioning to
some extent, some employees might not be able to travel to work on a particular weather
affected day. Theo wants employees to remain safe. As each team member knows his or her
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113012
own situation and is in the best position to decide how to operate, the company leaves individual
commute decisions to each employee. As is the case with any absence, employees deciding
to remain at home need to promptly communicate with their immediate manager or, as an
alternatives, an alternative member of management or Human Resources.
Pay Periods and Pay Distribution
Theo has 26 pay periods per calendar year. Employees are paid bi-weekly on Friday for hours
worked through the previous Saturday. A pay period begins 12:01am on Sunday and ends at
midnight on the second Saturday that follows.
“Direct deposit” is the best and easiest way to receive your pay. The money is in your bank
account and available for your use sooner, and this method is simpler for Theo. The payroll
administrator can provide you with the forms needed to establish direct deposit.
Theo makes every effort to avoid errors in your paycheck. If you believe an error has been
made, please promptly notify your immediate manager or the payroll administrator. Such
messages can be sent electronically to payroll@theochocolate.com. The payroll administrator
will promptly take the necessary steps to quickly research the problem, inform you of the result
and promptly process any indicated corrections.
Job Changes
Theo understands that many team members have interest in developing their skills and careers
by taking new positions within the company. The company respects and encourages this
interest; an employee commitment to such development will help Theo Chocolate grow and be
successful. Theo has a policy of providing employees the opportunity for moving to other
positions within the company. Regardless of whether a job change is a lateral move or a
promotion, mobility can be positive for individual team members and the company as a whole.
As a Theo employee, you own your career.
Job changes are driven by the company’s business needs and a decision to move or promote
an employee to a new role depends upon factors, including performance in their current
position, skills, training, and likelihood of success in the new role.
Theo also considers qualified, external candidates when making staffing decisions.
When filling a job opening, Theo follows this process:
1. The hiring manager prepares a written description of the position.
2. That description is reviewed and approved by Theo’s CEO. In the CEO’s absence, the
CFO reviews and approves.
3. The position is posted within the company (bulletin boards and email) and externally if
the hiring manager concludes that is appropriate. In selected situations, as described
below, the company might elect to not post a new position.
4. The hiring manager, as well as any other appropriate team members, meets with
candidates. References are checked, and background checks are completed, as
needed.
5. After considering all available information, the hiring manager selects the best candidate
for the position. That decision is approved by the second level manager (hiring
manager’s manager).
6. If the position is posted internally, it must remain open for five business days before
being offered to a candidate.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113013
7. After a decision has been made and employment offer accepted, the hiring manager will
communicate with any Theo employee who applied for but was not selected for the
position to share the basis of the hiring decision.
There can be situations in which a position is filled without a formal posting. For example, the
hiring manager may have concluded that no current employee, or only one employee, has the
skills needed to successfully fill the role. As a company, Theo values honest communication.
Accordingly, if the hiring manager concludes that posting the job and interviewing internal
candidates would be done simply for “appearance’ sake,” the hiring manager can fill this
position without a formal posting, providing s/he follows these steps:
Theo’s CEO reviews and approves the decision to search for or fill a position without
internal job posting. In the CEO’s absence, the CFO will carry out this review.
After the position is filled, the hiring manager meets with any employee who has
questioned not being considered for the role. That hiring manager listens to the
employee’s concern and explains the basis on which the staffing decision was made.
The hiring manager will also follow-up with the employee’s manager to provide this
information.
Employment decisions such as hiring, job changes, promotions, compensation, terminations
are made without regard to color, race, age, sex, national origin, marital status, military status,
veteran status, religion, sexual orientation, gender identity, genetic information, the presence of
any sensory, mental or physical disability, political ideology, or other legally protected status or
characteristic protected by local, state or federal law.
Performance Feedback and Development
Effective and meaningful feedback is important to employees who are committed to developing
their skills, increasing their contributions to Theo, and enhancing their value as individuals in the
marketplace.
While Theo Chocolate relies on myriad strengths to help its business, there is a simple truth.
More than anything else, Theo’s success depends on the collective talents and dedication of its
employees. The company emphasizes performance and relies on sustained results from
individuals and teams.
Understanding that employees may be hired at different times of the year, change roles, or shift
responsibilities, performance expectations may need to be revised or updated. Nevertheless,
Theo strives to provide clear and useful performance feedback to its employees by conducting
an annual performance appraisal process. The major steps to this process follow:
1. The employee and manager develop goals and expectations for the coming year. These
are driven by Theo’s business needs, documented in writing or discussed in-person
when an individual begins his/her employment.
2. During the review period, employee and manager operate to these goals. Given Theo’s
size, growth and nimbleness, it is possible (even likely) the goals will change during the
performance period. If so, the employee and manager should update goals to reflect
this shift.
3. If an employee moves into a new position during the review period, the manager and
employee should review performance and development to date and then set new goals
and expectations to reflect the changes.
4. At the end of the review period, employee will review results and development during the
period and provide a self-assessment to the manager.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113014
5. Manager will assess the employee’s results and development during the period based
on various information sources (such as the employee’s self-assessment, manager’s
observations, feedback from other team members working with the employee, etc.).
Manager will draft a written performance appraisal which will be reviewed by Human
Resources.
6. Managers, Human Resources and Theo executives participate in “Calibration Sessions”
where employees’ performance is discussed and appraisal ratings are “calibrated” to
help ensure consistency and fairness across the company.
7. Second level manager reviews and approves final document and includes comments as
appropriate.
8. Employee and manager review performance appraisal form in a 1:1 discussion. Any
observations and comments the employee thinks should be included are added to the
appraisal. Note – such discussion only covers performance, compensation is not
discussed at that time.
9. If the employee has an unresolved question or concern regarding the performance
feedback document, they can share that with the second level manager, a company
executive or Human Resources. The employee can raise such issues in good faith
without concern of consequences.
10. Employee and manager develop goals and expectations for the next year.
11. Manager returns the signed copy of document to Human Resources for filing, and
provides a copy to employee.
Theo’s goal: finalize and communicate performance feedback and goal setting before August-
end each year.
While an employee’s compensation is linked to performance, pay adjustments are reviewed in a
different process and are not part of the performance feedback. The performance appraisal
process does not alter the employment at-will relationship.
In addition to our annual performance appraisal process, employee and manager will participate
in a mid-year goal check-in to discuss performance, review goals, and set new ones as needed.
Theo recognizes that effective feedback is an ongoing process, not an event. The annual and
mid-year performance appraisal process is intended to be a tool that facilitates ongoing
communication about performance and development.
The Company expects employees and managers to have regular discussions regarding topics
such as performance to date and development opportunities. Both employee and manager
have a shared interest in these discussions and such interim reviews are a shared responsibility
between employee and manager. If an employee believes s/he is not receiving adequate
performance feedback, they should express this concern with the manager. If not addressed to
the employee’s satisfaction, Theo encourages the employee to raise the issue with the second
level manager, Human Resources or a company executive. The employee can raise such
issues in good faith, without concern of consequences.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113015 II. CLASSIFICATION AND COMPENSATION Employment Classifications At the time a job is filled, that position is classified as “Eligible for benefits” or “Part-time”. In addition, the position is classified as either “Exempt” or “Non-exempt”. Job classification is determined by responsibilities as defined in the job description, with reference to legal and other requirements. Also, positions are classified as “Regular” or “Seasonal.” While most Theo positions are “Regular”, with the seasonality inherent in the chocolate business, the company sometimes hires “Seasonal” employees for assignments of limited duration (typically less than three months). If you are unsure of which job classification applies to your position, please ask your immediate manager or Human Resources. Classification for Employee Benefits Employee Eligible for Benefits: Although the traditional definition of full time is 40 hours, and in most organizations working 40 hours is the basis for receiving employee benefits, Theo follows a more generous standard. An employee who is regularly scheduled to work a consistent schedule of 28 or more hours per week is considered eligible for all employee benefit programs. Part-time Employee: An employee who is regularly scheduled to work fewer than 28 hours per week or who works sporadic shifts is considered a part-time employee for the purposes of eligibility for employee benefit programs. An employee in this classification is considered part- time for the purpose of eligibility for employee benefit programs. Seasonal Employees: To help meet peak staffing needs of limited duration, Theo sometimes hires employees on a seasonal basis. These assignments typically last for less than three months and such employees are eligible for selected benefits during this time. Classification under Wage/Hour Laws Non-Exempt Employee: An employee who is eligible for overtime based on the job they perform, rate of pay, and primary responsibilities as set forth in the Fair Labor Standards Act. Non-exempt employees who work more than 40 hours in a work week are compensated for overtime calculated at 150% of their regular hourly wage rate. Any overtime should be approved in advance by your immediate manager. Exempt Employee: An employee who is paid a specific salary annually or for each pay period and is not required to record time worked for payroll purposes. Salaried employees who are classified as exempt are not eligible to receive overtime payment. Employees will be informed of their employment classifications and their status of exempt or non-exempt at the time of hire and will be informed of any later changes in classification. Compensation Philosophy Theo’s goal is to provide its employees compensation that is competitive with other similar companies in the local market place. We strive to offer total compensation that is fair, equitable and positively motivates employees. In developing compensation and benefit plans, Theo balances these programs with the company’s business condition and financial resources. Theo Chocolate complies with all legal requirements regarding pay. Several factors may influence your rate of pay. Some of the items brought into consideration are the nature and scope of job responsibilities, market pay for comparable jobs (external equity), what Theo pays other employees in comparable positions (internal equity), and --- most importantly --- your individual performance. The financial performance of Theo as a company also has an influence over individual pay. In summary: Compensation can vary based on performance of both the individual employee and overall company. Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
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Pay Adjustments
Theo Chocolate reviews the compensation of each employee at least annually. Such reviews
take place on a “focal” basis, which means the company reviews the pay of all employees at the
same time. In general, the company strives to complete these reviews in the month of
September, with the expectation of sharing information with employees in October.
The major steps to the annual compensation review follow:
1. The performance of each employee is assessed in accordance with the performance
appraisal process (please refer to that section) and shared with the employee. This is
typically completed in the August-September time period.
2. Each year the company obtains external market compensation information and general
trends, and uses this information to review Theo’s wage and salary ranges.
3. Theo assesses market conditions, the company’s business situation and available
financial resources and then develops budgets for total compensation without regard to
individual circumstances or departmental considerations.
4. The company develops a range of compensation changes that are consistent with the
available budget dollars and compensation philosophy.
5. Managers propose individual wage and salary adjustments for each employee based on
a set of guidelines.
6. The proposed changes are totaled company-wide, considered in light of the guidelines,
assessed for reasonableness, reviewed against the budgets and Theo’s financial
position. Adjustments are made and the approved changes are communicated to
managers.
7. Managers communicate the wage or salary change, along with the basis of the change,
to each employee. To help employees understand the underlying basis of their
compensation, this communication also includes information about the salary range for
the employee’s job and where the employee’s pay places them within this range.
This process will be followed for all regular (not seasonal) employees who have been employed
for more than three months at the time of the annual compensation review. The majority of
compensation reviews and adjustments, if indicated, will be made as part of the annual October
process. Company management will complete a summary, mid-cycle check (March - April) to
consider any additional adjustments.
To the extent a compensation review leads to a compensation adjustment, those are effective
on the first pay period beginning after 1 April and / or 1 October. Please note – a compensation
review does not guarantee or imply a compensation adjustment. Some reviews can indicate
that an employee’s current compensation is appropriate.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113017
Compensated Absences
Holidays
Theo observes the following holidays:
New Year’s Day
Memorial Day
4th of July
Labor Day
Thanksgiving Day
Christmas Day
Personal floating holiday (timing chosen by employee, approved by employee’s
manager).
Theo pays eligible employees for each of these holidays.
If business needs require that you work on a holiday, you will receive an additional personal
floating holiday. If the observed holiday falls on an employee’s regular day off that employee
will receive an additional floating holiday.
Personal Time Off
Theo offers all employees personal time off (PTO). You choose how to use this time: it can be
used for vacation, sick, personal absence or any other reason of your choice. Employees start
earning PTO on their hire date and become eligible to use this time after 90 days of
employment.
The following charts provide examples of how annual PTO is calculated and the number of
hours earned per pay period. Exact figures depend on the number of hours worked.
Years of Service PTO Hours Earned
0–5 1 hour for every 17.33 hours worked
6 and on 1 hour for every 13.00 hours worked
PTO – Illustrative Examples . . . An employee’s balance based on regular hours worked
20 Hour Week 28 Hour Week 34 Hour Week 40 Hour Week
Years of Annual Hrs Earned Annual Hrs Earned Annual Hrs Earned Annual Hrs Earned
Service PTO Pay Period PTO Pay Period PTO Pay Period PTO Pay Period
0–5 60 hours 2.31 hours 86 hours 3.23 hours 104 hours 3.92 hours 120 hours 4.62 hours
6 and on 80 hours 3.08 hours 112 hours 4.31 hours 136 hours 5.23 hours 160 hours 6.15 hours
As demonstrated in the examples above, employees accumulate PTO throughout the year.
Theo wants to allow flexibility when scheduling PTO; so, employees can use PTO before
earning it, if the time off is approved by the employee’s immediate manager. For example, if it’s
early in the year and you want to take off 80 hours, but only have accumulated 46 hours of PTO,
you can do so. Please note a couple important points:
You can only take PTO in advance of hours earned in the current calendar year. If
you’ve already used all of a calendar year’s PTO (either earned or to be earned), you
cannot take additional paid time off.
If your employment with Theo ends before you’ve earned hours you’ve already taken
(i.e., you have a negative PTO balance), consistent with the law, Theo can, require you
to pay back any unearned balance.
Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 2012113018 Taking a break to rest, relax or recharge is important – so, employees are expected to use their PTO each year. If an employee cannot use all PTO hours in a given year, they may carry forward a maximum of 56 PTO hours into the following year. An employee may accumulate no more than 56 hours above the yearly maximum. For example – an employee working 40 hours each week, with six years’ employment can accumulate no more than 216 hours (160 hours current PTO, plus 56 hours carried from prior years). Theo’s PTO policy exceeds the minimum requirements specified by the Seattle Paid Sick and Safe Time Ordinance. Requesting PTO If you require time off for a doctor’s appointment, family care or another similar need, please notify your manager as soon as possible. You do not need to share the specific nature of such requests. If you take time off due to an illness or emergency, inform your immediate manager or a company executive in a timely manner. To request PTO for vacation, please request, in writing, your manager’s approval three weeks ahead of the days you want to take. Because Theo is a small company, your attendance is important to the success of fellow team members and the company as a whole. There may be business demands that prevent your manager from approving PTO for planned vacations. An employee who is absent from work for two or more consecutive shift days without informing their immediate manager or a company executive will be considered to have voluntarily resigned his or her position with Theo. Employees leaving the company’s employ receive no payment or compensation for unused PTO days. Bereavement Leave Theo will grant employees up to three paid days of leave in the event of a death in the immediate family. Immediate family members are defined as spouse, registered domestic partner, parent, child, sibling, brother or sister in-law, grandparent and grandchild. Only the Chief Executive Officer (or the CFO in the CEO’s absence) can approve exceptions to this policy. To arrange for bereavement leave, please notify your immediate manager of your situation. Either your manager or Human Resources will contact you directly to discuss a schedule. If you need more than three days, and your manager approves the extended absence, unused PTO balance may be used for the additional time. If more time is needed, an employee may request an unpaid leave. This request will be evaluated on the same basis as other unpaid leaves (please see section on “Leaves of Absences”). Theo reserves the right to request verification or documentation of the need for the Bereavement Leave. Jury/Witness Duty Theo considers jury and witness duty a civic responsibility and the company supports team members summoned to serve as a juror or witness. All regular full-time and part-time employees with at least 90 days of service, who are summoned by the court to serve on a jury or to be a witness, are eligible for up to one week of jury duty pay per calendar year. Your immediate manager should be notified in the event that jury duty is to exceed the one-week approved leave. Your immediate manager or a company executive may authorize an extension or initiate a leave of absence on behalf of the employee. Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
19 Jury duty pay is the difference between the employee’s regular wage and the compensation received as a juror for each working day missed because of the summons. The employee is required to give his/her immediate manager as much advance notice as possible and provide a copy of the jury/witness duty notice. When your jury is not in session, we ask that you report for work as usual. Upon completion of jury/witness duty, the employee must present a statement signed by the officer of the court stating dates and times the employee served and the amount of the compensation. Appropriate documentation will be placed in the employees file. If your jury duty service would make it difficult for us to serve our customers/clients or meet our commitments, the company may request the court defer you from jury duty. Unpaid Absences Medical Leaves of Absence Consistent with appropriate federal and state family and medical leave laws, including the Family Medical Leave Act (FMLA), Theo provides eligible employees up to 12-weeks of unpaid leave during a 12-month period to care for a newborn or newly-adopted/foster child, to care for a spouse or domestic partner, child or parent with a serious health condition, or for your own serious health condition when you are unable to perform the functions of your job. A “serious health condition” is an illness, injury or other physical or mental condition that involves an overnight stay in a medical care facility, or continuing treatment by a health care provider, for example, more than 3-consecutive days absent, chronic conditions, etc. If you are the spouse, child, parent or next of kin of a military service member who has a serious illness or injury from active duty service, Theo provides up to 26-weeks of leave under the federal FMLA while the service member is undergoing medical treatment, recuperation, therapy, or is otherwise in outpatient status, or on the temporary disability retired list. This form of leave also applies to eligible family members of veterans for up to five years after the veteran leaves service for a serious illness or injury incurred during active duty. This 26-week maximum is available only during a single 12-month period starting from the first day that such leave is taken, and is combined with other FMLA leaves taken during the same period. In addition, leave under this policy may also be taken for a “qualifying exigency” when your spouse, son, daughter, or parent is on or called to active duty in support of the U.S. Armed Forces from the Reserves, National Guard or from retirement, or for other reasons (illness, injury) relating to an active-duty service member. The following are the major points of Theo’s medical leave practices. ** Qualification for a Leave of Absence - You must have been employed for at least 12 months at the time the leave commences, although the 12 months need not be consecutive. In addition, you must have also worked at least 1,250 hours during the 12-month period immediately preceding the commencement of the leave. The 12-month period for determining family or medical leave entitlement is calculated from the first day leave is taken looking forward 12 months ** Compensation and Benefits while on Leave - All employees are allowed to use their PTO at any time during their medical leave as needed. Theo also encourages employees to apply for Short Term Disability in the events they will be absent for more than eight days in case of illness or one day in case of accident. Please see HR for information on how to apply for Short Term Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
20 Disability. You will not continue to accrue PTO or receive holiday pay while on a leave of absence. ** Health Insurance - If you participate in any company sponsored health insurance plans, Theo will continue to pay its company contribution to the cost of your insurance premiums during the medical leave. Employees are still responsible for their share of the health insurance premiums and will need to reimburse Theo for this cost during the leave period. ** Requesting a Medical Leave of Absence You are required to give a minimum 30-day written notice requesting leave for reasons of a birth, adoption/foster placement, or planned medical treatment for a serious health condition. Whenever a 30-day notice is not possible, you are required to inform Theo Chocolate as soon as practicable by notifying your immediate manager or Human Resources. Maternity Leave Pregnancy disability leave is granted to all pregnant employees upon receipt of a physician’s certification stating that they are unable to work due to pregnancy. Employees on leave are expected to keep the company informed of their expected return date. Beyond the time a woman may need off due to disability arising from pregnancy and childbirth, in compliance with Washington State laws, she may use her 12 week family & medical leave entitlement to care for and bond with the new baby. Please contact Human Resources for information. An employee on authorized maternity leave (both disability and family & medical) will return to the job she left unless the company is unable to return the employee because of business necessity. If this is necessary, the employee will be offered the first available job of like status and pay, or if none is available, a job of lower status and pay. If an employee chooses to wait for the first job of like status and pay, this reinstatement right will continue for one year. Military Leave Theo Chocolate complies with the Uniformed Services Employment and Re-Employment Rights Act of 1994 regarding any employee who is inducted into or enlists in the armed forces of the United States or who serves as a member of a reserve component of the armed forces. Theo also complies with the Washington State Military Family Leave Act (MFLA). This states that employees who are spouses of armed service workers and who work an average of 20 hours or more per week may take up to 15 days of unpaid leave when their spouse is about to be called up to active duty, or are home from deployment during times of military conflict declared by the President or Congress. For more information on this, please discuss with your immediate manager or Human Resources. Domestic Violence Leave If you or your family member (child, spouse, domestic partner, parent, parent-in-law, grandparent, or person with whom you have a dating relationship) is a victim of domestic violence, sexual assault or stalking, Theo may offer a reasonable period of leave, intermittent leave or a reduced schedule to seek legal or law enforcement assistance, counseling or medical treatment. Although the leave is without pay, you can choose to use available PTO. Theo Human Resources will request written verification of the need for leave. Any information you provide to determine eligibility or continuation for this leave will be treated as confidential by Theo and only Theo Chocolate Employee Handbook © 2012 Theo Chocolate, Inc. rev 20121130
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