CKE Restaurants Holdings, Inc.

EMPLOYEE HANDBOOK

February 2020
 EMPLOYEE HANDBOOK ACKNOWLEDGMENT AND RECEIPT
I hereby acknowledge receipt of the Employee Handbook of CKE Restaurants Holdings, Inc. dated
February 2020, and I acknowledge that I have access to the online Employee Handbook through
the Company intranet (Starnet) or on the restaurant kiosk. The Handbook contains important
confidential information about the Company’s personnel policies and practices and my privileges
and responsibilities as an employee. I understand and agree that it is my responsibility to read,
understand, and comply with the policies in the Handbook.
This Handbook supersedes and replaces all prior Employee Handbooks which have been
published or distributed. This Handbook does not and is not intended to address every possible
employment situation. The Company reserves the right to take action or make a decision which
is inconsistent with the provisions of this Handbook, to address various or unique situations, on
a case-by-case basis, in the Company’s sole discretion.
I understand that the Handbook and all other written and oral materials provided to me are
intended for informational purposes only. Neither it, Company practices, nor other
communications create an employment contract or term. I understand that the policies and
benefits, both in the Handbook and those communicated to me in any other fashion, are subject
to interpretation, review, removal, and change by the Company at its sole and absolute
discretion, at any time with or without notice, except for the employment-at-will policy. The
Company will advise employees of material changes within a reasonable time.
I further understand that I am an at-will employee. “At-will” employment means that either I or
the Company can terminate the employment relationship at any time, for any or no reason, with
or without cause, and with or without notice, subject to restrictions under any applicable law. I
understand that the at-will employment status of each employee cannot be altered by any verbal
statement or alleged verbal agreement. At-will employment status can only be changed by a
legally binding, written contract with the Company covering employment status for a specific
duration of time and signed by the Chief Executive Officer of the Company.
 Table of Contents

Employee Handbook Acknowledgement and Receipt

Introduction .................................................................................................................................... 1
Equal Employment and Commitment to Diversity ........................................................................ 1
Commitment to Diversity ............................................................................................................ 1
Equal Employment Opportunity ................................................................................................. 1
Americans with Disabilities Act (ADA) and Reasonable Accommodation .................................. 2
Lactation Accommodation Policy ................................................................................................ 2
Religious Accommodation ........................................................................................................... 3
Genetic Information Non-discrimination Act (GINA) .................................................................. 3
Respect in the Workplace ........................................................................................................... 4
Complaint Procedure .................................................................................................................. 6
Anti-Retaliation Policy ................................................................................................................. 7
Employment Relationship .............................................................................................................. 7
Open Door Policy ......................................................................................................................... 7
Confidentiality ............................................................................................................................. 8
Employment Classification .......................................................................................................... 9
Meal and Rest Breaks .................................................................................................................. 9
Time Records ............................................................................................................................. 12
Overtime for Hourly Employees ................................................................................................ 13
Deductions from Pay/Safe Harbor Exempt Employees ............................................................ 13
Paychecks .................................................................................................................................. 14
Garnishment and Child Support ................................................................................................ 14
Payroll Deductions..................................................................................................................... 14
Access to Personnel Files .......................................................................................................... 14
Promotions and Transfers ......................................................................................................... 15
Separation from Employment ................................................................................................... 15
Eligibility for Rehire ................................................................................................................... 16
Employment and Income Verification ...................................................................................... 16
Workplace Safety and Security .................................................................................................... 16
Background Checks ................................................................................................................... 17
Foodborne Illness ...................................................................................................................... 17
Workplace Searches .................................................................................................................. 19

February 2020
 Drug-Free and Alcohol-Free Workplace .................................................................................... 20
Drug and Alcohol Testing Policy ................................................................................................ 20
Alcohol and Drug Rehabilitation Leave ..................................................................................... 22
Smoking in the Workplace ........................................................................................................ 22
Workplace Violence Prevention ................................................................................................ 23
Commitment to Safety .............................................................................................................. 24
Emergency Closings ................................................................................................................... 24
Workplace Guidelines .................................................................................................................. 24
Attendance and Tardiness......................................................................................................... 24
Job Performance ....................................................................................................................... 25
Standards of Conduct ................................................................................................................ 25
Outside Employment/Volunteer Work ..................................................................................... 27
Dress Policy................................................................................................................................ 27
Employment of Relatives and Personal Relationship Policy ..................................................... 28
Service Animals ......................................................................................................................... 29
Information Systems and Electronic Resources ........................................................................ 29
Social Media Acceptable Use .................................................................................................... 32
Secret Recording Generally Prohibited ..................................................................................... 34
Solicitation and Distribution...................................................................................................... 34
Media Relations......................................................................................................................... 35
Employee Benefits ........................................................................................................................ 35
Health Benefits Eligibility Requirements................................................................................... 36
Benefits Plan Changes ............................................................................................................... 36
COBRA (Consolidated Omnibus Budget Reconciliation Act) ..................................................... 36
HIPAA (Health Insurance Portability & Accountability Act) ...................................................... 37
Holidays ..................................................................................................................................... 37
Sick Time (States and jurisdictions without paid sick time laws) .............................................. 38
Bereavement ............................................................................................................................. 38
Jury Duty .................................................................................................................................... 39
Time Off to Vote ........................................................................................................................ 39
Vacation..................................................................................................................................... 40
Leave of Absence Policy ............................................................................................................ 42
Other California and State-Specific Leave Entitlements ............................................................. 50
Military Spouse Leave (California Employees) .......................................................................... 50

February 2020
 Civil Air Patrol Leave (California Employees)............................................................................. 50
Literacy Education Leave (California employees)...................................................................... 51
California Paid Sick Time Policy (California Employees) ............................................................ 51
Pregnancy Disability (California Employees) ............................................................................. 52
CFRA – California Supplement to FMLA Policy (California Employees) .................................... 54
State Disability and Family Therapy Disability Insurance (California Employees) .................... 55
New Parent Leave (California Employees) ................................................................................ 55
California Family School Partnership Act (California employees) ............................................. 57
School Leave (Suspension) (California employees) ................................................................... 57
Volunteer Firefighters, Emergency Rescue Personnel, and Reserve Peace Officers (California
and state-specific employees) ................................................................................................... 58
Time Off for Victims of Sexual Assault, Domestic Violence or Stalking (California and state-
specific employees).................................................................................................................... 58
Time Office for Victims of Violent Crimes (California and state-specific employees) .............. 59
Bone Marrow or Organ Donation Leave (California and state-specific employees)................. 59

State Addendum for Employees in Michigan

Michigan Sick and Safe Time Policy
Michigan Social Security Privacy Policy

February 2020
INTRODUCTION
This CKE Restaurants Holdings, Inc. Employee Handbook dated February 2020 (“Handbook”) is a
summary of the employment policies of CKE Restaurants Holdings, Inc. (“CKE” or the
“Company”). It is designed to acquaint employees with the expectations, as well as the benefits,
of employment with the Company. This Handbook supersedes all previous versions of the
Handbook. The Company reserves the right to modify, rescind, delete or add to this Handbook
from time to time in its sole and absolute discretion. The Company will notify employees of any
significant changes that affect them. This Employee Handbook is not a binding contract between
the Company and its employees, nor is it intended to alter any at will employment status between
the Company and its employees. The Company reserves the right to interpret the policies in this
Handbook, and to deviate from them when, in its discretion, it determines it is appropriate.
The policies in this Handbook are intended to be consistent with applicable state and federal
labor and employment laws. However, because we are growing and operate in several states,
and laws may differ from state to state, and change over time, to the extent any of the policies
in this Handbook are inconsistent with our legal obligations, the applicable federal, state or local
law will govern. In addition, to address significant state law requirements, we may develop state-
specific addenda to this Handbook, to be distributed to employees of those states, as applicable.
This Handbook is the property of the Company. This Handbook does not apply to franchised
restaurants, which are independently owned and operated by franchise owners. Franchise
owners solely employ their employees and are solely responsible for all employment related
matters with respect to their employees.

EQUAL EMPLOYMENT AND COMMITMENT TO DIVERSITY

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

Equal Employment Opportunity

The Company provides equal employment opportunities to all employees and applicants for
employment, and expressly prohibits discrimination against employees or applicants for
employment on any legally-recognized basis including, but not limited to: military and veteran
status, race, color, religion, sex (including pregnancy, childbirth, or related medical conditions
and breastfeeding), gender, gender identity, gender expression, sexual orientation, national
origin, ancestry, citizenship status, age, marital status, physical or mental disability, medical
condition, genetic information, and/or any other basis protected by applicable federal, state or
local law. Equal employment opportunity applies to all aspects of the employer-employee

February 2020 1
relationship, including but not limited to recruitment, hiring, placement, promotions, training,
transfer, discipline, layoff, recall, transfer, leave of absence, compensation, and termination.
The Company expressly prohibits any form of unlawful harassment or discrimination based on
any of the protected characteristics mentioned above. Improper interference with the ability of
other employees to perform their expected job duties is not tolerated.
Applicants and employees are welcome to discuss equal employment opportunity related
questions with Human Resources. Complaints of discrimination should be filed according to the
procedures described in the Complaint Procedure.

Americans with Disabilities Act (ADA) and Reasonable Accommodation

The ADA requires, among other things, that an employer provide reasonable accommodation to
qualified individuals with disabilities, unless to do so would cause undue hardship for the
employer. It is the Company’s intention to comply with the ADA (and applicable state laws) in the
provision of reasonable accommodation to its applicants and employees.
Any applicants or employees who require an accommodation to perform the essential functions
of their job should contact a representative of Human Resources to specify and to request what
accommodation is needed. If the accommodation is reasonable and will not impose an undue
hardship on the Company, the Company will make the accommodation.
The Company expressly prohibits any form of retaliation against individuals who raise issues of
equal employment opportunity, who request a disability accommodation, or who participate in
an approved accommodation. An employee who violates this anti-retaliation provision will be
subject to discipline, up to and including termination.
Complaints of discrimination should be filed according to the procedures described in the
Complaint Procedure.

Lactation Accommodation Policy

In accordance with applicable law, employees have the right to request a lactation break and a
lactation space to express breast milk. The Company provides a reasonable amount of break time
to accommodate employees who wish to express breast milk. Employees who anticipate the
need for lactation breaks or lactation spaces must give their supervisor and Human Resources 30
days’ notice in advance of the anticipated need, where practicable, or as soon as the need arises
so that appropriate accommodations can be made. The Company will respond to the request
within five business days. In general, breastfeeding employees who choose to continue providing
their milk for their infants after returning to work shall receive the following:
● Milk Expression Breaks – The break time, if possible, will run concurrently with break time
already provided to the employee (meal breaks and rest periods). Additional reasonable
breaks may be approved after consultation with an employee’s supervisor and Human
Resources; such additional breaks will not be paid.
● A Place to Express Milk – A place, other than a bathroom, that is shielded from view and
free from intrusion, may be used by employees to express breast milk. The room or

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 location will be safe, clean and free from hazardous materials (as defined by state law);
located near a sink with running water for washing hands and rinsing out breast pump
parts; contain a place to sit; contain a surface to place a breast pump and personal items;
and have access to electricity or alternative devices, including but not limited to,
extension cords or charging stations, needed to operate an electric or battery-powered
breast pump. If employees prefer, they may also breastfeed or express milk in their own
private offices, or other comfortable locations, including their own homes, as agreed
upon in consultation with their supervisor and Human Resources. Expressed milk can be
stored in private coolers or, if clearly marked, in the Company’s refrigerator.
o Note: If the Company’s refrigerator is used, it is the employee’s responsibility to
ensure the breast milk is properly labeled with name and date in a covered container
and placed in the area of the refrigerator reserved for employees. The contents must
not be left overnight or while the employee is not working. The contents must not be
kept in glass bottles or jars, and containers must be leak proof and have screw on or
snap on lids; foil or plastic wraps are not permitted. Any spills with the Company’s
food products or packaging must be treated as cross contamination and affected food
or packaging must be discarded. Employees assume responsibility for the safety of
the breast milk, including with respect to improper storage and refrigeration.
Where a multipurpose room is used for lactation, among other uses, the Company gives
precedence for the space to be used for lactation. Please contact Human Resources if two or
more employees need to use the lactation space.
Employees cannot be discharged, or in any manner discriminated or retaliated against, for
requesting, or attempting to request, a lactation space or lactation break under this policy.
Employees in California that believe they have been unlawfully denied the right to a lactation
space or a lactation break, may file a complaint with the California Labor Commissioner.

Religious Accommodation
The Company is committed to providing a work environment that is respectful of the religious
beliefs of all its employees. Consistent with this commitment, the Company will make good faith
efforts to provide a reasonable religious accommodation to employees and applicants with
sincerely held religious beliefs, unless such accommodation would create an undue hardship for
the Company. The Company will provide reasonable religious accommodations consistent with
applicable federal, state and local law. The Company makes determinations concerning religious
accommodation requests on a case-by-case basis and relies on fact-specific inquiries. If you feel
you need a religious accommodation, notify the Human Resources Department.

Genetic Information Nondiscrimination Act (GINA)

The Genetic Information Nondiscrimination Act of 2008 (GINA) prohibits covered employers from
requesting or requiring genetic information of an individual or an individual’s family member,
except as specifically allowed by this law. To comply with GINA, the Company asks that

February 2020 3
employees not provide any genetic information when responding to a request for medical
information for purposes of leaves of absence or otherwise.
“Genetic information” as defined by GINA, includes an individual’s family medical history, the
results of an individual’s or family member’s genetic tests, the fact that an individual or an
individual’s family member sought or received genetic services, and genetic information of a
fetus carried by an individual or an individual’s family member or an embryo lawfully held by an
individual or family member receiving assistive reproductive services. If you have any questions
about this policy, please contact the Human Resources Department.

Respect in the Workplace

It is the Company’s policy to provide a work environment that promotes respect in the workplace
for all employees, guests, and independent contractors, free from unlawful discrimination and
harassment of any form. To that end, harassment of the Company’s employees or contractors by
management, supervisors, coworkers, or nonemployees who are in the workplace is prohibited.
Further, any retaliation against an individual who has complained about sexual or other
harassment or retaliation against individuals for cooperating with an investigation of a
harassment complaint is similarly unlawful and will not be tolerated. The Company will take all
reasonable steps to prevent and eliminate unlawful harassment from occurring. This policy is
intended to protect employees from harassment by clients, vendors, independent contractors,
or others doing business with the Company. If harassment occurs on the job by someone not
employed by the Company, the procedures in this policy should be followed.

Definition of Unlawful Harassment. “Unlawful harassment” is conduct that has the purpose or
effect of creating an intimidating, hostile, or offensive work environment; has the purpose or
effect of substantially and unreasonably interfering with an individual’s work performance; or
otherwise adversely affects an individual’s employment opportunities because of the individual’s
membership in a protected class. Harassment or discrimination against an employee on the basis
of race, color, sex (including pregnancy, childbirth, or related medical conditions and
breastfeeding), gender, gender identity, gender expression, religion (all aspects of religious
beliefs, observance or practice, including religious dress or grooming practices), marital status,
registered domestic partner status, age for individuals forty years of age or older, citizenship
status, national origin or ancestry, immigration status, physical or mental disability, medical
condition (including cancer and genetic characteristics), genetic information, sexual orientation,
protected family care or medical leave status, military and veteran status or any other categories
or conditions protected under applicable federal, state or local law (“Protected Categories”) is
illegal and prohibited by Company policy. This policy also prohibits harassment or discrimination
based on the perception that a person has any of these legally protected characteristics, or is
associated with a person who has or is perceived as having any of these legally protected
characteristics, as protected by law. For the purpose of this policy and its prohibitions only,
references to “employee” shall include all employees (supervisors, managers and coworkers),
volunteers, interns, whether paid or unpaid, and other third parties with whom employees come
into contact or who provide services to the Company pursuant to a contract.

February 2020 4
Unlawful harassment includes, but is not limited to, epithets; slurs; jokes; teasing; pranks;
innuendo; comments; gestures; written/graphic material; stereotyping; or other threatening,
hostile, or intimidating acts based on any of the protected categories listed above. In addition,
the Company prohibits any type of abusive conduct, defined as conduct, with malice, that a
reasonable person would find hostile, offensive, and unrelated to the employer’s legitimate
business interest. Abusive conduct may include repeated infliction of verbal abuse, such as the
use of derogatory remarks, insults, and epithets, verbal or physical conduct that a reasonable
person would find threatening, intimidating or humiliating, or the gratuitous sabotage or
undermining of a person’s work performance. A single act will not constitute abusive conduct,
unless it is especially severe and egregious.
All such activity is strictly prohibited under the Company’s unlawful harassment policy. If
employees are uncertain as to what conduct is prohibited under this policy, they should contact
the Human Resources department immediately.
Definition of Sexual Harassment. While all forms of harassment are prohibited, special attention
should be paid to preventing and eliminating sexual harassment. The law defines sexual
harassment as unwanted sexual advances, requests for sexual favors or visual, verbal or physical
conduct of a sexual nature when:
● Submission to such conduct is made a term or condition of employment;
● Submission to or rejection of such conduct is used as a basis for employment decisions
affecting the individual; or
● Such conduct has the purpose or effect of unreasonably interfering with employees’ work
performance or creating an intimidating, hostile, or offensive working environment.
Other sexually oriented conduct, whether intended or not, that is unwelcome and has the effect
of creating a work environment that is hostile, offensive, intimidating, or humiliating to workers
may also constitute sexual harassment.
While it is not possible to list all those additional circumstances that may constitute sexual
harassment, the following are some examples of conduct that, if unwelcome, may constitute
sexual harassment depending on the totality of the circumstances, including the severity of the
conduct and its pervasiveness:
● Unwanted sexual advances, whether or not they involve physical touching;
● Offering employment benefits in exchange for sexual favors;
● Making or threatening reprisals after a negative response to sexual advances;
● Unwelcome leering, whistling, brushing up against the body, sexual gestures, or
suggestive or insulting comments;
● Displaying sexually suggestive objects, pictures, cartoons or posters;
● Written, verbal, and/or physical references to sexual conduct such as sexual epithets,
jokes, and slurs, comments about an individual’s body or dress, comments or gossip about
an individual’s sexual activity, deficiencies, or prowess, sexually degrading words to
describe an individual, suggestive or obscene letters, notes or invitations;
● Physical conduct such as touching, assault, impeding or blocking movements;
● Retaliation for reporting harassment or threatening to report harassment.

February 2020 5
Complaints of discrimination, harassment or retaliation should be filed according to the
procedures described in the Complaint Procedure.

Complaint Procedure
Any employee who believes he or she has been the subject of or witnessed any form of
discrimination, harassment or retaliation should immediately make a complaint. You may
complain directly to your immediate supervisor or department manager, a Human Resources
Business Partner, or any other member of management with whom you feel comfortable
bringing such a complaint. You are not required to complain first to your supervisor if that person
is the individual who is committing the offensive conduct. Instead, you may report the improper
conduct to any member of management or Human Resources. Similarly, if you observe acts of
discrimination toward or harassment of another employee, you should immediately report the
matter to one of the individuals listed above. The complaint can be provided verbally or in writing
and should include details of the incident(s), names of individuals involved, and names of any
witnesses. Managers and supervisors who are made aware of a complaint must immediately
refer the provided information to the Human Resources Department.
Do not allow an inappropriate situation to continue by not reporting it. Every reported complaint
of discrimination, harassment or retaliation will be:
● Responded to in a timely manner
● Kept confidential to the extent possible, subject to the Company’s obligation to
conduct a full and fair investigation
● Investigated in an impartial and timely manner by qualified personnel
● Documented and tracked for reasonable progress
● Closed in a timely manner
The investigation will be conducted in a manner that provides appropriate due process and
reaches reasonable conclusions based on the evidence collected. While confidentiality will be
maintained to the extent possible, to be thorough and fair in the investigation, some information
will be disclosed on a need-to-know basis. The complainant can check in with Human Resources
at any time to track the progress of the investigation. The investigation will be timely completed,
and a determination will be made and communicated to the employee(s) who complained and
the accused employee(s). If the Company determines any employee has been subjected to
discrimination, harassment and/or retaliation, or other inappropriate conduct, prompt remedial
action will be taken to stop and prevent further improper conduct.
Any employee determined to be responsible for discrimination, harassment, retaliation, or other
inappropriate conduct will be subject to appropriate disciplinary action, up to and including
termination of employment. Employees should also be aware that if they are found to have
engaged in unlawful harassment, they may be held personally liable. Further, the Company does
not consider conduct prohibited by this policy to be within the course and scope of employment
or the direct consequence of the discharge of one’s duties. Accordingly, to the extent permitted
by law, the Company reserves the right not to provide a defense or pay damages assessed against
employees who engage in conduct prohibited by this policy.

February 2020 6
With regard to acts of harassment, discrimination, retaliation or other inappropriate conduct by
third parties such as contract workers, customers or vendors, corrective action will be taken after
consultation with the appropriate management personnel.
Any employee who knowingly makes a false claim of discrimination, harassment or retaliation
will be subject to discipline, up to and including termination.

Anti-Retaliation Policy
In accordance with applicable law, the Company prohibits retaliation against any employees
because of their opposition to a practice they reasonably believe constitutes employment
discrimination or because of their participation in an employment discrimination investigation,
proceeding or hearing conducted by the Company, or a government agency, with respect to such
complaints. Any adverse retaliatory action because of such opposition or participation is unlawful
and will not be tolerated. For purposes of the Company’s anti-retaliation policy, all references to
“discrimination” should be understood to include “harassment.” The Company will not tolerate
retaliation against any employee for participating or cooperating in an investigation or for making
a good faith complaint of harassment, discrimination or retaliation. The Company will take
disciplinary action, up to and including the immediate termination, of any employee who
retaliates against another employee for engaging in any of these protected activities. Contract
workers or other third parties will be subject to termination of their engagement with the
Company for engaging in retaliation. No employee, customer, vendor or other person who does
business with the Company is exempt from the prohibitions in this policy.
Additional Enforcement Information. In addition to the Company’s internal complaint
procedures regarding harassment, discrimination, and retaliation, employees should be aware
that the federal Equal Employment Opportunity Commission (EEOC), the California Department
of Fair Employment and Housing (DFEH), and other applicable state agencies also investigate and
prosecute such complaints. If you are not satisfied with the Company’s handling of your
complaint, you may seek assistance from the appropriate agency. In California, the DFEH will, in
appropriate cases, prepare and investigate complaints of harassment or discrimination; and after
the parties’ participation in a mandatory dispute resolution, may commence civil proceedings in
court. If successful, employees actually injured as a result of such conduct may be awarded
damages and other remedies. For further information, the EEOC can be reached toll-free at 1-
800-669-4000 and the DFEH at 1-800-884-1684. You can also find these agencies online (EEOC:
http://www.eeoc.gov and DFEH: http://www.dfeh.ca.gov.)
For more information, contact the Human Resources Department.

EMPLOYMENT RELATIONSHIP

Open Door Policy

CKE strongly supports an “open door” policy that allows for effective two-way communication at
all levels of the organization. Positive working relationships depend upon mutual understanding

February 2020 7
of the Company’s goals and objectives, and an appreciation of how we can all help each other
and the Company achieve them.
Team members have the right to ask a question or address a problem without fear of reprisal.
Experience has shown that many issues can best be worked out by following these steps:
1. If you have a question or concern, discuss it with your immediate leader.
2. If the concern is not resolved or you still have a question, discuss it with the next highest-
level leader, and so on.
However, we understand that in certain cases, the team member may feel uncomfortable
discussing the matter with their immediate leader, or they may be unable to reach a satisfactory
solution. If this is the case, team members may speak with any other member of management,
Human Resources, the Chief Legal Officer, or may call the confidential Ethics Hotline.
Under the Open Door Policy, if a team member contacts you, the following steps should be taken
to resolve any problems or questions:
1. Assume that the team member’s question or concern is valid;
2. Make sure that all sides of the question or concern have been considered; and
3. Attempt to resolve the concern as quickly and appropriately as possible.
No adverse action is to be taken against any team member presenting a question or difference
of opinion under the Open Door Policy.
Most concerns can be resolved by working with the leader, but team members also have the
option to report issues or concerns by contacting:
• Human Resources at 615-538-9262
• The Chief Legal Officer at 615-538-9260
• The Ethics Hotline at 1-800-422-4141
• Email to [email protected]
If you are concerned about maintaining anonymity, you may send correspondence to the
following private mailbox address at CKE Restaurants Holdings, Inc., Audit Committee, 6700
Tower Circle, Suite 1000, Franklin, TN 37067.

Confidentiality
During the course of employment, employees may be given, or have access to, confidential
and/or trade secret information pertaining to the Company’s business. Confidential information
includes information about our business, guests, processes and suppliers, which is not known to
the public and includes as examples the Company’s financial and sales data, business and
strategic plans, pricing, forecasts, methods and techniques, and similar business information. All
confidential information of the Company or its affiliates is disclosed or revealed to employees
with the understanding that such information is considered to be secret and proprietary to the
Company and is the Company’s valuable commercial asset. In addition, employees may also be
given, or have access to, confidential information of CKE’s past, current or prospective vendors
and consultants which information is subject to a confidentiality or non-disclosure agreement.

February 2020 8
Employees are required to maintain the confidentiality of such information the same as if it was
the Company’s proprietary or confidential information.
During and after your time of employment, you must not use, either directly or indirectly, any of
the Company’s confidential information or that of its consultants or vendors, except for the
purposes specified and/or required by the Company to perform your job. You may not remove
such confidential information from the Company in any form or medium, nor may you use such
information in connection with any work performed for your personal benefit or for the benefit
of any other person or business entity. You may not reveal, disclose, identify, or otherwise
provide the Company’s confidential information, or the confidential information of the
Company’s consultants or vendors, to any other person, or business entity, including the general
public. In some instances, you may be required to sign a non-disclosure agreement. Nothing in
this policy nor any other provision in the Handbook is intended to prohibit employees from
discussing with one another their own wages, or other terms and conditions of employment, or
engaging in whistleblowing or other legally protected activities.

Employment Classification
To determine eligibility for benefits and overtime status and to ensure compliance with federal
and state laws and regulations, the Company classifies its employees as shown below. The
Company may review or change employee classifications at any time.
Exempt. Exempt employees are paid on a salaried basis and are not eligible to receive overtime
pay. Exempt employees are expected to work the number of hours necessary to carry out their
responsibilities. These employees meet certain salary and responsibility requirements that
exempt them from overtime and other provisions of the state and federal wage and hour laws.
Non-exempt. Non-exempt employees are paid on an hourly basis and are eligible to receive
overtime pay for overtime hours worked in accordance with the Fair Labor Standards Act and
applicable state laws.

Meal and Rest Breaks

The Company complies with federal and state legal requirements concerning meal periods and
rest breaks. Generally, employees are entitled to a 30-minute unpaid meal break each day.
During meal periods, employees are to be relieved of all duties and are allowed to leave the
premises. Employees are also entitled to up to two (2) 15-minute rest periods each day,
depending on length of shift. Managers will review applicable laws related to breaks and rest
periods for specific states with employees. Where this policy differs from applicable state law,
the Company will follow the specific state law.
California Meal Period Policy. The Company provides at least a 30-minute meal period to
employees who work more than five (5) hours in a workday, unless they work six (6) or fewer
hours total and elect in writing to waive the first meal period. The Company provides a second
30-minute meal period to employees who work more than ten (10) hours in a workday, unless
they work twelve (12) or fewer hours total, did not waive the first meal period, and elect in

February 2020 9
writing to waive the second meal period. An employee who agrees to waive a first or second meal
period may later revoke the waiver in writing.
Employees should take their first meal period before working more than five (5) hours unless the
employee works less than six (6) hours total and has elected in writing to waive the first meal
period.
Example: Employees who begin work at 8:00 a.m. should start their meal period no later
than 1:00 p.m.
Employees should take their second meal period before working more than ten (10) hours unless
employees work twelve (12) or fewer hours total, did not waive the first meal period, and elected
in writing to waive the second meal period.
Example: Employees who begin work at 8:00 a.m. and take an unpaid 30-minute meal
period before completing five (5) hours of work, should start their second meal period no
later than 6:30 p.m.
Meal periods cannot be taken at the beginning or end of shifts to justify or excuse employees’
tardiness or to allow employees to leave work earlier than the end of their scheduled shift.
Employees are relieved of all of their duties during meal periods and are allowed to leave the
premises.
The Company does not pay employees for meal periods, and consequently, employees must
accurately record the start and stop times of their meal periods as unpaid breaks.
The Company provides meal periods according to the schedule provided on the accompanying
California Meal Period and Rest Break Chart.
California Rest Break Policy. Employees are authorized and permitted to take a 10-minute paid
rest break for every four (4) hours worked or major fraction thereof. Whenever practicable,
employees should take their rest breaks near the middle of each four (4) hour work period.
Employees may not accumulate rest breaks or use rest breaks as a basis for starting work late,
leaving work early, or extending a meal period. California employees are relieved of all their
duties during their rest breaks and are allowed to leave the work premises. Rest breaks are paid
time and consequently, employees should record their rest breaks as paid breaks.
The Company authorizes and permits rest breaks according to the schedule provided on the
accompanying California Meal Period and Rest Break Chart. Employees must observe assigned
working hours and the time allowed for meal and rest periods.
Responsibilities. Employees are expected to take their meal periods and rest breaks in
accordance with the applicable guidelines outlined in this policy. Managers can schedule meal
periods and rest breaks for their employees, taking into account their operation’s particular
requirements and employees’ needs, provided that the schedule complies with the law. If a meal
period or rest break is interrupted, the employee should clock in before performing any work and
notify his or her manager immediately so that the employee may be paid appropriately, and/or
another uninterrupted meal period or rest break can be timely provided. The Company pays meal
period and rest break premiums if an employee is unable to take a timely, uninterrupted, duty
free 30-minute meal period or 10-minute rest break that is earned according to the California

February 2020 10
Meal Period and Rest Break Chart for work related reasons. These premiums are paid through
the Company’s payroll system (CrunchTime) based on employee time records. Employees should
complete a California Meal Period and Rest Break Premium Request if they are not provided with
an earned meal period or rest break and this failure is not captured by Crunchtime for any reason,
including if the payroll system is down or an employee is otherwise unable to access CrunchTime.
The employee should submit this request to the Payroll Department as soon as possible to ensure
they are correctly compensated. Restaurant employees can find the Premium Pay Request by
clicking the icon on the Star Learning Center screen, and once completed, the form will be
automatically submitted to Payroll. Corporate employees can find the Premium Pay Request on
the Company’s corporate intranet, and once completed, corporate employees should email the
form to [email protected].
If an employee feels they have been pressured or coerced into working through a recorded meal
period or rest break, they should immediately report the situation to Human Resources and
submit a Meal and Rest Period Premium Request through the payroll system. It is important that
employees promptly report any concerns about practices that are inconsistent with this policy.
Discipline. Employees or managers who fail to observe the applicable guidelines outlined in this
policy will be subject to disciplinary action, up to and including termination. Violations of this
policy should be immediately reported to Human Resources. Violations reported will be
thoroughly investigated, and corrective action will be taken where appropriate.
In addition, the Company will not tolerate any form of retaliation against individuals for reporting
alleged violations of this policy or for cooperating in the Company’s investigation of such reports.
Any form of retaliation in violation of this policy will result in disciplinary action, up to and
including termination of employment.

CALIFORNIA MEAL PERIOD AND REST BREAK CHART

EMPLOYEE HOURS MEAL PERIODS & REST BREAKS TO BE PROVIDED

WORKED

● No Rest Break
Less than 3.5 hours
● No Meal Period

● One paid 10-minute Rest Break provided before the end of 4.0 of hours of work and
3.5 hours to 5.0 hours
as close to the middle of work period as practicable
● No Meal Period

● One paid 10-minute Rest Break provided before the end of 4.0 of hours of work and
5.01 hours to 6.0 hours as close to the middle of work period as practicable
● One unpaid 30 –minute Meal Period provided before the end of 5.0 hours of work,
unless 6-Hour Day Meal Period Waiver signed

February 2020 11
 ● One paid 10-minute Rest Break provided before the end of 4.0 of hours of work and
as close to the middle of work period as practicable
6.01 hours to 10.0 hours ● One unpaid 30 –minute Meal Period provided before the end of 5.0 hours of work
● Second paid 10-minute Rest Break provided between 4.0 to 8.0 hours of work and as
close to the middle of work period as practicable

● One paid 10-minute Rest Break provided before the end of 4.0 of hours of work and
as close to the middle of work period as practicable
● One unpaid 30 –minute Meal Period provided before the end of 5.0 hours of work
● Second paid 10-minute Rest Break provided between 4.0 to 8.0 hours of work and as
10.01 hours to 12.0 hours close to the middle of work period as practicable
● Second unpaid 30 –minute Meal Period provided before the end of 10.0 hours of
work, unless the Second Meal Period Waiver signed
● Third paid 10-minute Rest Break provided between 8.0 to 12.0 hours of work and as
close to the middle of work period as practicable

● One paid 10-minute Rest Break provided before the end of 4.0 of hours of work and
as close to the middle of work period as practicable
● One unpaid 30 –minute Meal Period provided before the end of 5.0 hours of work
12.01 hours to 14.0 hours ● Second paid 10-minute Rest Break provided between 4.0 to 8.0 hours of work and as
close to the middle of work period as practicable
● Second unpaid 30 –minute Meal Period provided before the end of 10.0 hours of
work
● Third paid 10-minute Rest Break provided between 8.0 to 12.0 hours of work and as
close to the middle of work period as practicable
Employees who work more than 14.0 hours will be authorized and permitted to take a fourth paid 10-minute
Rest Break.

Time Records
All nonexempt employees are required to complete accurate weekly time reports showing all
time actually worked. These records are required by governmental regulations and are used to
calculate regular and overtime pay.
● Field/Unit employees utilize the POS system to capture time worked. Time records are
reviewed and reported to Payroll on a weekly basis.
● Corporate employees utilize our timekeeping system to capture time worked. Time
records are reviewed and reported to Payroll on a bi-weekly basis.
At the end of each week or biweekly period, the employee and his or her supervisor should
review the hours worked to attest to its correctness before forwarding it to the Payroll
Department. Corporate managers or delegates must approve the time record before payroll
processing deadlines to ensure timely payment is made.
Employees should report any errors immediately to their manager and the Payroll Department.
Only the employee’s manager can make and approve “adjustments” of original time record
entries.

February 2020 12
All hourly employees are required to use the Company’s timekeeping system and record time in
and out for scheduled work shift and meal breaks. The Company requires all hourly employees
to record their “time-in” entry at the beginning of the shift and record their “time-out” entry at
the end of the shift. All hourly employees must also record time in and out for meal periods and
for any time they leave Company work locations for personal business, other than during paid
rest breaks.
Company policy strictly prohibits working off the clock and volunteering to work without pay. If
you believe that you have worked off the clock, you should report this to your supervisor and
Human Resources immediately.
Employee time records also record all non-worked hours that are payable under Company policy
(vacation, sick, personal holiday, holiday, jury duty, and bereavement). Any lost time of non-
exempt employees, not subject to payment under Company policy, will result in a reduction of
pay.
Time records are official Company documents. Falsifying or altering time records or completing
the time record of other employees will result in disciplinary action, up to and including
termination.

Overtime for Hourly Employees

When required, due to the needs of the business, hourly (non-exempt) employees may be asked
to work overtime. When it is feasible to do so, employees will receive advance notice of any
overtime requirements. Overtime must be approved in advance by the employee’s manager.
Overtime pay will be computed based on applicable local, state, and federal regulations, and only
hours worked are included in the overtime computation. Employees who work overtime without
permission will be paid for any overtime worked but are subject to disciplinary action, up to and
including termination. Paid leave such as holiday, vacation, sick, bereavement time, and jury duty
are not considered hours worked in determining eligibility for overtime pay. All overtime work
must be approved in advance by a supervisor or manager.

Deductions from Pay/Safe Harbor Exempt Employees

Permitted deductions. The FLSA limits the types of deductions that may be made from the pay
of an exempt employee. Unless prohibited by state or local law, the Company may make
deductions for the following permissible reasons:
● Deductions that are required by law, e.g., income taxes;
● Deductions for employee benefits when authorized by the employee;
● Absence from work for one or more full days for personal reasons other than sickness or
disability;
● Absence from work for one or more full days due to sickness or disability if the deduction
is made in accordance with a bona fide plan, policy, or practice of providing compensation
for salary lost due to illness;
● Offset for amounts received as jury fees or witness fees, or for military pay; or

February 2020 13
 ● Unpaid disciplinary suspensions of one or more full days imposed in good faith for
workplace conduct rule infractions
During the week an exempt employee begins work for the Company or during the last week of
employment, the employee will only be paid for actual hours worked. In addition, an employee
may be paid only for hours worked during a period when the employee is using unpaid leave
under the Family and Medical Leave Act (FMLA).
Improper deductions. If an employee classified as exempt believes that an improper deduction
has been taken from his or her pay, the employee should immediately report the deduction to
the Human Resources Department or the employee’s manager. The report will be promptly
investigated, and if it is found that an improper deduction has been made, the Company will
reimburse the employee for the improper deduction.

Paychecks
The Company’s pay period for all employees is bi-weekly, with the pay date of Friday following
the end of the pay period. If payday falls on a federal holiday, employees will receive their
paycheck on the preceding workday. Employees have the opportunity to choose to accept
payment by direct deposit or pay card or may receive a paper paycheck. Employees should review
their paystub for accuracy. Employees should always make sure that their paystub reflects their
current, complete address, and correct withholdings. Employees should report any discrepancies
immediately to their supervisor and the Payroll Department. The Company does not extend
credit to employees.

Garnishment and Child Support

The Company must comply with court orders to garnish employee wages. The Company will
honor federal and state guidelines, which exclude a certain amount of employees’ income from
being subject to garnishment.

Payroll Deductions
State and federal laws require the Company to make the proper deductions from employees’
paychecks. These deductions include state and federal income tax, social security tax (FICA), and
any other applicable state and local taxes. Other deductions may be made from employees’
paychecks with employees’ written permission and pursuant to applicable law.

Access to Personnel Files

Employee files are maintained by the Human Resources Department and are considered
confidential Company property. The Company will restrict disclosure of employees’ personnel
file to authorized individuals within the Company with a need-to-know purpose.
Any request for information from personnel files must be directed to the Human Resources
Department. Only the Human Resources Department is authorized to release information about
current or former employees. Current and former employees of the Company may generally

February 2020 14
access their personnel file in the presence of a Company representative at a mutually convenient
time within three (3) days of submitting a written request unless otherwise required under state
law. Employees may add their version of any disputed item to the file.
Disclosure of an employee’s personal/employment information to outside sources will be limited.
Exceptions include simple employment verification utilizing The Work Number (an automated
service that provides instant employment and income verification) and where disclosure is
required by law (e.g., to respond to a subpoena). The Company will cooperate with a request
from authorized law enforcement or local, state, or federal agencies conducting investigations.
In California, an employee, or his or her representative, may request to review, or obtain a copy
of, his or her personnel file, at reasonable times and reasonable intervals. All requests must be
made in writing to Human Resources, using the Personnel File Request form provided by Human
Resources, and will be responded to promptly generally not later than 30 calendar days following
receipt of the request. In all cases, a Company representative will be present when the file is
reviewed. If copies are requested, the employee may be charged for the actual cost of
reproduction of the file.
Health/medical records are not included in employees’ personnel file. These records are
confidential. The Company will safeguard health/medical records from disclosure and will divulge
such information only (1) as required by law; (2) to employees’ physician, upon written request
whereby employee authorizes such release; or (3) as required for workers’ compensation cases.
For more information, contact the Human Resources Department.

Promotions and Transfers

The Company will consider qualified employees for promotion to new or vacated positions. In
addition, managers may discuss transfer opportunities with employees. Employees in corporate
departments must be in their current position one year (unless waived by their supervisor) and
performing satisfactorily before requesting a transfer to another department.

Separation from Employment

In all cases of voluntary resignation (initiated by the employee), employees are asked to provide
a written notice to their supervisor at least ten (10) working days in advance of the last day of
work. Holidays and paid time off (PTO) will not be counted toward the 10-day notice. Employees
who provide the requested amount of notice will be considered to have resigned in good standing
and generally will be eligible for rehire.
In most cases, Human Resources will conduct an exit meeting on or before the last day of
employment to collect all Company property and discuss final pay. The Company may take
further action to seek the return of Company property through appropriate legal recourse if not
returned by the employee upon termination. If applicable, information regarding benefits
continuation through the Consolidated Omnibus Budget Reconciliation Act (COBRA) will be sent
to the employee’s home address. Employees should notify the Company of address changes so
that their tax information will be sent to the proper address.

February 2020 15
Eligibility for Rehire
Employees classified as “eligible for rehire” when separated from the Company are considered
for rehire along with all other applicants. Past work performance with the Company is
considered. Employees classified as “ineligible for rehire” may not be considered for further
employment with the Company depending on the circumstances surrounding their separation
from employment. Employees classified as eligible for rehire and returning to active employment
within thirty (30) days of a voluntary resignation from the Company are eligible to have the
previous service date bridged. The Company may choose to bridge service dates under additional
circumstances at its sole discretion.

Employment and Income Verification

The Work Number is an automated service that provides instant employment and income
verification. The Company has contracted with a vendor to provide this fast service which should
be used in instances where proof of employment or income is needed. Managers or fellow
employees are not authorized to provide employment references for current or former
employees. Employees should refer all requests for employment and income verification to The
Work Number (1-800-367-5690, Company ID# 10508).
Examples of when to use The Work Number include: applying for a loan or mortgage; leasing an
apartment; buying or leasing a car; reference checks providing proof of current or past
employment; establishing credit; and applying for government assistance programs. For more
information about this service, please visit www.theworknumber.com.

WORKPLACE SAFETY AND SECURITY

Safety can only be achieved through teamwork at the Company. Employees must practice safety
awareness by thinking defensively, noting potential or actual unsafe situations, and reporting
such conditions immediately. Violation of the Company’s safety policies and procedures may lead
to disciplinary action, up to and including termination.
Employees are expected to observe the following precautions to help provide a safe and secure
workplace:
1. If employees are injured or become sick at work, they must inform their manager
immediately.
2. Employees should use, adjust, and repair machines and equipment only if trained and
qualified.
3. Employees should get help when lifting, reaching for, or pushing heavy objects.
4. Employees should understand their job and follow instructions. Employees who are not
sure of the correct procedure should ask their manager for clarification.
5. Any use of fire extinguishers must be reported immediately to the responsible person for
the facility so that the extinguisher can be replaced.
6. At no time is an open flame permitted.

February 2020 16
After Dusk to Before Dawn Procedures for Restaurants. Do not perform any work-related tasks
or activities outside the building after dusk to before dawn. Examples include taking the trash
out, sweeping the walks, cleaning the outside windows, changing out menu boards, etc.
● Use of the back door is prohibited after dusk unless a scheduled delivery is taking place.
● Trash runs or any outside task must be completed during daylight hours only.
● All exterior lighting/signage should be in proper working order and turned on after dark.
● Trash accumulated after dark should be placed in a plastic bag, sealed, and taken out the
next morning during daylight.
● Do not block access to the back door with trash or by other means. The back door is an
emergency exit.
Misappropriation of Company Property. Any misappropriation of Company property or assets
by employees including, but not limited to, cash, product, discounts, equipment, guest cards, and
promotional items, regardless of the dollar value, is in direct violation of Company policy. Any
such action may result in disciplinary action up to and including termination, and referral to the
appropriate law enforcement agency when circumstances dictate. Failure to report
stealing/mishandling of Company property may result in termination from the Company.
Security. Employees can contribute to safety and security by reporting any suspicious activity or
incidents to the CKE Security Center 877-253-4911. In the case of an emergency, employees
should immediately call 911.

Background Checks
Unless otherwise required by law, a criminal background check may be required for persons to
whom a conditional offer is extended for a full-time, part-time, or temporary position. The
Company reserves the right to obtain background information for as long as you are employed
by the Company in a manner consistent with applicable law. The purpose of the background
check is to assist in providing a safe and secure environment for our employees and guests, and
to protect Company property and assets. Pursuant to California law, for background checks
returning unfavorable results, the Company will conduct an individualized assessment to
determine whether the results have a direct and adverse relationship with the specific duties of
the job, and will provide the applicant with a “fair chance” to rebut or explain the results.
Employees are expected to cooperate fully with this policy. Such cooperation includes, among
other things, providing truthful and complete information on new hire paperwork and in
response to inquiries made by the Company, or third-party investigators during the course of
investigations, and providing appropriate written authorizations that may be required by law so
that the Company may obtain complete investigation reports. Failure to cooperate in these
respects, or any attempt to interfere with the Company’s implementation of this policy, will result
in disciplinary action, up to and including termination from employment.

Foodborne Illness
The Company is committed to the safe handling of food and preventing foodborne illness or
injury. All employees must be familiar with and understand this policy before they begin work.

February 2020 17
To the extent permitted by applicable law, employees must report relevant medical information
(as set forth below) in a timely manner so the person-in-charge can reduce the risk of foodborne
illness transmission.
It is the responsibility of the manager to make sure their subordinates are familiar with and
understand this policy. Upon notification by employees of a potential issue, the person-in-charge
is responsible for promptly taking all necessary steps to prevent the transmission of foodborne
illnesses. This includes promptly restricting employees’ duties or excluding employees from work,
following applicable Company reporting procedures, and overseeing proper cleaning procedures.
Reporting to the person-in-charge. Food handlers must report the following symptoms and
conditions, medically diagnosed illnesses, and high-risk exposures to the person-in-charge.
Employees must promptly report any such issues before starting a shift or as soon as symptoms
begin if they occur during the shift. This will reduce the possibility of contaminating food or
surfaces, transmitting illness to other employees or customers or being the cause of a foodborne
illness outbreak associated with the restaurant.
Reportable symptoms and conditions (caused by infection):
1. Abdominal Cramps
2. Prolonged loss of appetite (more than three (3) days)
3. Diarrhea
4. Fever
5. Vomiting
6. Yellow skin or eyes (jaundice)
7. Sore throat with fever
8. Skin sores on the hand, wrist, or an exposed body part (such as boils and infected wounds,
however, small), which cannot be bandaged and protected.
9. Acute respiratory infection (cough or runny nose)
Reportable medically diagnosed illnesses:
1. Norovirus
2. Hepatitis A
3. Typhoid Fever (Salmonella typhi)
4. Salmonellosis (Salmonella spp.)
5. E. coli O157: H7 (or other Shiga toxin-producing Escherichia coli/STEC infection)
6. Shigellosis (Shigella spp.)
7. Any communicable disease which is transmissible through food (e.g., Tuberculosis)
Reportable high-risk exposures:
1. Exposure to or suspicion of causing any confirmed disease outbreak due to consuming or
preparing food implicated in the outbreak of or consuming food at an event prepared by
a person who is infected or ill with typhoid fever, shigellosis, E. coli O157: H7 infection or
hepatitis A.
2. Diagnosis of typhoid fever within the last three (3) months without receiving treatment
by a licensed health care provider (antibiotic therapy).

February 2020 18
 3. A household member diagnosed with typhoid fever, shigellosis, and illness due to E. coli
O157: H7 or hepatitis A.
4. A household member attending or working in a setting experiencing a confirmed outbreak
of typhoid fever, shigellosis, E. coli O157: H7 infection or hepatitis A.
Reportable illnesses. Certain diseases are required by law to be reported to the Health
Department. The person-in-charge must follow Reportable Illness Procedures located in the
Management Procedures Manual. These procedures outline the next steps (e.g., exclusion and
reporting) to ensure compliance with applicable law. In the event of any conflict between
Company policy and applicable law, the applicable law will govern.
Excluding and/or restricting employees from work. Employees who come to work when they
are sick with any of the conditions, symptoms, illnesses, or exposures listed above can
contaminate food or surfaces. They can also transmit their illness to other employees or
customers. This can lead to a foodborne illness outbreak associated with your restaurant. THE
PERSON-IN-CHARGE MUST EXCLUDE FOOD HANDLERS FROM WORK WHEN THEY ARE
SYMPTOMATIC AND CAPABLE OF TRANSMITTING ILLNESS.
Return to work. Employees may return to work, in most instances, after not showing or
producing indications of the reportable symptom or conditions (asymptomatic) listed above for
at least twenty-four (24) hours or providing documentation from a licensed health care provider
stating that employees are no longer infectious. To the extent permitted by law, the Company
reserves the right to request reasonable medical documentation in connection with an
employee’s return to work.
Acknowledgment. Employees are expected to have read and understood the requirements
under this policy, including:
● Good hygiene practices, including hand washing.
● Work restrictions or exclusions as a result of illness, conditions, symptoms, or exposures.
● The reporting of symptoms and physician diagnosis requirements, as specified above.
From time to time, employees may be required to acknowledge their agreement to comply with
this policy. Failure to follow this policy will result in disciplinary action, up to and including
termination. Employees may also be subject to legal action by applicable government regulatory
authorities.

Workplace Searches
Employees should not expect that any Company property is private and for their exclusive use.
The Company may conduct lawful inspections, searches, and surveillance of any Company
property at any time at the Company’s discretion, including but not limited to, video and visual
surveillance of all Company property. The Company may search any Company supplied property
including but not limited to, employees’ office, desk, files, or equipment.
It is a violation of Company policy for any employees, managers or supervisors to initiate or
participate in any search of a person that involves requesting or demanding the removal of any
article(s) of clothing. Furthermore, employees must refuse any request or direction to initiate or

February 2020 19
participate in any such searches by any authority, including law enforcement, and should
immediately contact Human Resources or Loss Prevention.

Drug-Free and Alcohol-Free Workplace

It is the Company’s policy to maintain a drug- and alcohol-free work environment that is safe and
productive for employees and others having business with the Company.
The unlawful use, possession, purchase, sale, transfer, distribution, or being under the influence
of any illegal drug and/or the misuse of legal drugs (e.g., by not following dosing instructions of
prescription or over-the-counter drugs) while on Company or client premises or while performing
services for the Company is strictly prohibited. The Company also prohibits reporting to work or
performing services under the influence of alcohol or consuming alcohol while on duty. The
Company prohibits off-premises abuse of alcohol and controlled substances, as well as the
possession, use, or sale of illegal drugs when these activities adversely affect job performance,
job safety, or the Company’s reputation in the community. Violation of this policy will result in
disciplinary action, up to and including termination.
Voluntary Assistance. The Company strongly encourages employees with drug or alcohol
problems to seek assistance before becoming subject to discipline under this or other Company
policies. The Company will reasonably accommodate employees with alcohol or drug
dependencies to seek treatment and/or rehabilitation.
Employees desiring such assistance should request a treatment or rehabilitation leave. Under
such circumstances, employees generally will be permitted to use paid time off, if available, or
be granted an unpaid leave of absence to enroll in a drug or alcohol rehabilitation program,
unless doing so would create an undue hardship for the Company.
The Company is not obligated, however, to continue to employ any person whose performance
of essential job duties becomes impaired due to drug or alcohol use, nor is the Company
obligated to re-employ any person who has participated in treatment and/or rehabilitation if that
person’s job performance remains impaired as a result of dependency. Additionally, employees
who are given the opportunity to seek treatment and/or rehabilitation, but fail successfully to
overcome their dependency or addiction, will not automatically be given a second opportunity
to seek treatment and/or rehabilitation. This policy on treatment and rehabilitation is not
intended to affect the Company’s treatment of employees who violate the regulations described
in this policy. Rather, rehabilitation is an option for an employee who acknowledges a chemical
dependency and voluntarily seeks treatment to end that dependency.
It should be understood, however, that employees must continue to comply with all Company
policies, including this Drug-Free and Alcohol-Free Workplace Policy, and that failure to do so
may subject the employee to disciplinary action, up to and including termination.

Drug and Alcohol Testing Policy

The Company is committed to providing a safe and productive workplace for our employees, to
protecting Company assets, and to providing safe and efficient operations for our guests. In
keeping with this commitment, the Company maintains a strict policy prohibiting the use of

February 2020 20
alcohol and the unlawful use of drugs in the workplace. Consequently, no employee may
consume or possess alcohol, or illegally use, possess, sell, purchase or transfer drugs at any time
while working for the Company, whether on or off its premises or while on Company premises
or using Company vehicles or equipment. To the extent permitted by law, no employee may
report to work with illegal drugs (or their metabolites) or alcohol in his or her bodily system. To
the extent permitted by law, the Company may require drug and/or alcohol testing, including
pre-employment, post-accident and reasonable suspicion testing.
“Illegal drug” means any drug that is not legally obtainable or that is legally obtainable but has
not been legally obtained. It includes prescription drugs not being used for prescribed purposes
or by the person to whom it is prescribed or in prescribed amounts. While California and some
other states currently allow the use of marijuana for medicinal and/or limited recreational
purposes, marijuana use remains illegal under federal law and is prohibited by Company policy.
Reasonable suspicion testing. To the extent permitted by law, if the Company has a reasonable
suspicion that an employee’s performance or behavior indicates that he or she is impaired by
illegal drugs or alcohol, the Company reserves the right to have the employee immediately
undergo drug and/or alcohol testing. The determination of a reasonable suspicion will be based
on specific, contemporaneous, articulated observances by a supervisor or other Company
representative concerning the appearance, behavior, speech and/or body odors of the
employee. A reasonable suspicion may arise from a physical altercation between employees;
from obvious impairment of physical or mental abilities such as slurred speech or difficulty in
maintaining balance; from unexplained significant deterioration in job performance or behavior,
such as excessive absenteeism; from reports by co-employees or customers of on the job alcohol
or drug use or impairment; from employee admissions regarding drug or alcohol use; from an
accident involving injury or property damage on Company property or while conducting Company
business or operating a vehicle or equipment during work where the employee cannot be
completely discounted as a contributing factor to the accident; or from any other evidence
reasonably giving rise to suspicion of on the job impairment from or use of alcohol or illegal drugs.
San Francisco: Employees in the city or county of San Francisco will not be subject to
random drug testing. To the extent permitted by law, the Company will only drug test
employees in the city or county of San Francisco if all the following conditions are present:
● The Company has reasonable grounds to believe that an employee’s faculties are
impaired on the job.
● The employee’s position is one which presents a clear and present danger to the
employee, another employee, or members of the public.
● The testing is done at the Company’s expense at a state-licensed independent
laboratory, and the employee has a reasonable opportunity to explain or refute
the results.
Procedures for testing. When the Company has reasonable suspicion for a drug or alcohol test,
the employee will be transported to and from the testing facility. The Company will refer the
employee to an independent medical clinic or laboratory certified by the National Institute on
Drug Abuse (NIDA), which will administer the test. The Company will pay the cost of the test. The
employee will have the opportunity to alert the clinic or laboratory personnel to any prescription

February 2020 21
or non-prescription drugs that he or she has taken that may affect the outcome of the test. All
drug testing will be performed by urinalysis. EMIT II will do the initial screening. Positive results
will be confirmed by gas chromatography/mass spectrometry. The clinic or laboratory will inform
the Company as to whether the employee passed or failed the drug test.
Confidentiality. The Company will treat all drug testing-records as confidential as required by
law. The Company will not disclose the results of the test without the employee’s consent or
court order.
Consequences of a positive test. To the extent permitted by law, employees who test positive
for illegal alcohol or drug use will be subject to discipline, up to and including termination.
Consequences for failing to complete or submit to, or falsification of, the test. To the extent
permitted by law, employees who refuse to take the drug test or fail to complete the test after it
is assigned will be subject to discipline, up to and including termination. Any employee who
provides false information in connection with an alcohol and/or drug screening test administered
under this policy, or who attempts to falsify test results through tampering, contamination,
adulteration or substitution, will be terminated from employment.
Consent to drug testing. Any employee subject to testing under this policy will be asked to sign
a form acknowledging the procedures governing testing, and consent to (1) the collection of a
urine sample for determining the presence of alcohol or drugs, and (2) the release to the
Company of medical information regarding the test results. To the extent permitted by law,
refusal to sign the agreement and consent form, or to submit to the drug test, and release of the
results to the Company will result in discipline, up to and including termination. If you require an
accommodation to comply with this policy, please contact the Human Resources Department.

Alcohol and Drug Rehabilitation Leave

Employees who voluntarily admit to having drug or alcohol problems may be eligible for unpaid
time off to participate in an approved rehabilitation program, provided that the leave will not
impose an undue hardship upon The Company. Employees may also use accrued sick days, if any,
for all or part of the time spent in the program.
If the employee has a serious health condition and is otherwise eligible, time off under this policy
may also be covered by the Family and Medical Leave Act (FMLA) or California Family Rights Act
(CFRA). If so, the Company will request approval and medical certification as it would for FMLA
and CFRA leave requests, and such leaves will run concurrently with rehabilitation leave under
this policy. Please see the Leave of Absence Policy for more information.

Smoking in the Workplace

The Company is committed to providing a safe and healthy environment for employees and
guests, and therefore, smoking inside any Company facility, restaurant, or work areas is not
permitted. Smoking is only permitted in outside designated areas during approved work breaks.
This policy covers all uses of tobacco, including both smoking and oral applications (e.g.,
cigarettes, pipes, cigars, chew, snuff) as well as smokeless tobacco and electronic delivery devices
(e.g., e-cigarettes, vape machines). All tobacco products must be disposed of properly.

February 2020 22
Workplace Violence Prevention
Definition of Workplace Violence. Workplace violence is any act or threat of physical violence,
harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.
It can affect and involve employees, vendors, guests, and visitors.
The Company is committed to providing a safe, violence-free workplace for our employees. Due
to this commitment, we discourage employees from engaging in any confrontation with a violent
or potentially violent individual. The Company will not ignore, condone or tolerate disruptive,
threatening, or violent behavior by any employee, contract service provider, or guest. Threats,
hostile language, or any other acts of aggression or violence made toward or by any employee
will not be tolerated. A threat may include any verbal or physical harassment or abuse, attempts
to intimidate others, menacing gestures, stalking, or any other hostile, aggressive, and/or
destructive actions taken for the purposes of intimidation. This policy covers any violent or
potentially violent behavior that occurs in the workplace or at Company-sponsored functions.
All employees bear the responsibility of keeping our work environment free from intimidation,
violence, or potential violence. Any employee who witnesses or is the recipient of threatening or
violent behavior should promptly inform their supervisor, manager, or the Human Resources
Department. If an individual is threatening immediate harm to an employee or visitor on our
premises, contact 911 immediately. You should also call the CKE Security Center (877-253-4911).
All threats will be promptly investigated. No employee will be subject to retaliation, intimidation,
or discipline as a result of reporting a threat in good faith. All reports of work-related threats will
be kept confidential to the extent possible.
Any individual engaging in violence against the Company, its employees, or its property will be
prosecuted to the full extent of the law. All acts will be investigated, and the appropriate action
will be taken. Employees engaged in any such act or threatening behavior will be subject to
disciplinary action, up to and including termination.
Temporary and Permanent Restraining Orders. Employees who apply for a temporary or
permanent protective or restraining order which lists any Company location as a protected area
must provide the Human Resources Department with a copy of the petition and declarations
used to apply for the order. Employees who obtain a protective or restraining order, whether
temporary or permanent, which lists any Company location as a protected area must provide the
Human Resources Department with a copy of the court order. To the extent possible, such
information will be kept confidential without compromising the safety and security of Company
employees, customers, and the Company.
Important Note: The Company will make the sole determination of whether, and to what
extent, the Company will act upon threats or acts of violence. In making this determination,
the Company may undertake a case-by-case analysis to ascertain whether there is a reasonable
basis to believe that workplace violence has occurred. No provision of this policy shall alter the
at-will nature of employment at the Company.
Unless otherwise required by applicable law, the Company prohibits the possession of weapons
on its property at all times, including our parking lots or Company vehicles. Additionally, while on
duty, employees may not carry a weapon of any type. Weapons include, but are not limited to,

February 2020 23
handguns, rifles, automatic weapons, and knives that can be used as weapons (excluding
pocketknives, utility knives, and other similar instruments that are used to open packages, cut
string, etc.), martial arts paraphernalia, stun guns, and tear gas. Any employee violating this
policy is subject to discipline up to and including termination, even for the first offense.

Commitment to Safety
Protecting the safety of our employees and guests is the most important aspect of running our
business. All employees have the opportunity and responsibility to contribute to a safe work
environment by using common-sense rules and safe practices and by notifying management
when any potential health or safety issues are present. All employees are encouraged to partner
with management to ensure maximum safety for all.
In the event of an emergency, immediately notify the appropriate emergency personnel by
calling 911. You should also alert the CKE Security Center by calling 877-253-4911.

Emergency Closings
The Company will always make every attempt to be open for business. In situations in which
some employees are concerned about their safety, management may advise supervisors to notify
their departments that the office is not officially closed, but anyone may choose to leave the
office if he or she feels uncomfortable.
If the office is officially closed during the day to permit employees to leave early, nonexempt
employees who are working onsite as of the time of the closing will be paid for a full day. If
nonexempt employees leave earlier than the official closing time and the office is not officially
closed, you will be paid only for actual hours worked, or you can take available vacation time.
Exempt employees will be paid for a standard full day but are expected to complete their work
at another time.

WORKPLACE GUIDELINES

Attendance and Tardiness

Excessive absenteeism and tardiness have a negative effect on our productivity and quality of
service. For this reason, the Company expects all employees to arrive on time, ready to work,
every day they are scheduled to work, and to call their supervisor if for any reason they cannot
be at work at the scheduled time.
If unable to arrive at work on time, or if an employee will be absent for an entire day, the
employee must contact the supervisor as soon as possible. Voice mail and e-mail messages are
not acceptable except in certain emergency circumstances. In the event an employee must leave
work prior to the completion of his or her work schedule, the employee must notify his or her
supervisor prior to leaving. Walking off the job will be considered job abandonment.

February 2020 24
Employees are responsible for communicating with their manager on a regular basis. In all cases
of an employee’s absence or tardiness, the employee should provide his or her manager with a
reason for the absence and if applicable, the probable duration of the absence. This will enable
the workload to be redistributed if necessary. If the absence is related to a medical reason, the
Company reserves the right to request medical documentation regarding the absence.
Missed work includes tardiness, partial day absences, unexcused absences, or failure to report to
work as required. Excessive absenteeism and/or tardiness will result in disciplinary action up to
and including termination. Failure to show up or call in for a scheduled shift without prior
approval may result in termination. An employee who is absent without notice or authorization
from his or her manager for three (3) or more consecutive scheduled workdays, may be
considered to have voluntarily resigned employment.
NOTE: Qualified absences related to the Family and Medical Leave Act (FMLA), state-mandated
paid sick time, or other approved absences taken in accordance with Company policy or pursuant
to applicable law for eligible employees will not result in disciplinary action or termination.

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

Standards of Conduct
Employees must observe and follow the Company’s policies and maintain proper standards of
conduct. If employee behavior interferes with the orderly and efficient operation of the
workplace, disciplinary measures will be taken. Disciplinary action for unacceptable conduct may
include, but is not limited to: verbal reprimand, written reprimand, suspension, or termination.
The action that will be taken in a particular case will depend on the circumstances involved,
including the severity of the offense, the employee’s past record and other relevant factors. The
Company may impose any level of discipline for violation of Company policy or procedure or
unacceptable performance/conduct solely within its discretion and as it deems necessary.
The following actions on the part of employees, while not all-inclusive, may be cause for
disciplinary action, up to and including termination, even for a single offense. This list includes,
but is not limited to:
● Violating any Company Rule, Policy or Procedure whether set forth in the Handbook or
elsewhere.
● Insubordination, including but not limited to refusal or failure to follow the reasonable and
lawful instruction of a manager.
● Falsification of or making material omissions on Company forms, records, or reports,
including time records, employment application materials, and/or other Company
documents or records.
● Abusive conduct (verbal or physical), including threatening, bullying, intimidating or
coercing another employee, guest, vendor, or supplier.

February 2020 25
 ● Violation of the Drug-Free and Alcohol-Free Workplace Policy, including failure to abide
by the Drug and Alcohol Testing Policy or the use, possession, consumption, distribution,
transfer or being under the influence of alcohol or illegal drugs while on the job, or while
on Company property. This includes consumption, sale, or transfer of such substances
during break times, meal periods, or during work time while in personal vehicles on
Company business or on Company property.
● Possession of a weapon (examples include: firearms, weapons or hazardous chemicals)
on Company property or at Company sponsored events, unless otherwise required by
applicable law.
● Accepting or soliciting tips from guests.
● Unauthorized possession or removal of Company property, records, or other materials.
● Recording time on another employee’s time record or requesting another individual to
record one’s own time.
● Disrespectful, discourteous or inappropriate behavior towards another employee, guest,
vendor, or supplier.
● Unsatisfactory job performance including, but not limited to, failure to perform work
assignments safely, satisfactorily and efficiently, and failure to provide excellent guest
service in accordance with Company standards.
● Destroying or damaging Company, customer, or employee property, records, or other
materials.
● Violating applicable safety or health rules or practices or engaging in conduct that creates
a safety or health hazard.
● Disclosing the Company’s trade secrets or confidential information (as defined and
described in the Confidentiality Policy) or engaging in any activity that is interpreted by
the Company as a conflict of interest.
● Unexcused or excessive absences and/or tardiness, including taking longer than the time
allowed for meal periods or rest breaks.
● Impeding or discouraging a co-worker from taking an earned meal period or rest break.
● Dishonesty of any kind in relation to the Company, its guests, vendors, suppliers or
employees.
● Giving away merchandise, property, or cash owned by the Company, employees, guests,
vendors, or suppliers.
● Failure to report any knowledge of theft.
● Violating any criminal law on Company property or that relates to work performed for the
Company.
● Unless a reasonable excuse is offered and accepted by the Company, absences for one (1)
or more consecutive work shifts without notice to employees’ manager.
● Violation of the Respect in the Workplace Policy (including sexual harassment or any
other form of unlawful harassment, discrimination or retaliation or other inappropriate
conduct toward another employee, guest, vendor, or supplier) or failure to report the
harassment or intimidation of another employee.
● Failure to cooperate in any Company investigation or providing false or misleading
information pursuant to a Company investigation or inquiry.
● Leaving the workplace without approval before the end of a scheduled work shift.

February 2020 26
 ● Failure to return from a leave of absence or engaging in other employment while on a
leave of absence without appropriate communication with the Total Rewards
Department and Human Resources.
● Stealing or attempting to steal Company property or the property of other employees,
vendors, or guests.
● Fighting, horseplay, inciting a fight, or any other behavior which is disruptive or dangerous
while on duty or on Company property.
● Violation of the Dress Policy.
● Failing to report workplace injuries to the manager immediately.
● Performing activities other than Company work during working hours (excluding paid rest
breaks).
● Abusing Company telephone, computer, and other electronic communication guidelines.
● Allowing unauthorized employees or non-employees access to the offices or restaurants
after hours.
● Making alterations to restaurant operating hours without approval from Executive
Operations Management.
● Visiting internet sites that are “known to contain or are suspected of containing
objectionable matter” including profane or otherwise inappropriate material, or
distributing or displaying such material, during work and/or using Company equipment.
This policy is not intended to interfere with, restrain, or prevent employee communications
regarding wages, hours, or other terms and conditions of employment or to otherwise interfere
with employees’ rights under the National Labor Relations Act. The Company will not construe
this policy in a way that limits such rights.

Outside Employment/Volunteer Work

Employees are permitted to work a second job as long as it does not interfere with their job
duties or performance with the Company, and no conflicts of interest exist. Employees with a
second job are expected to work their assigned schedules. A second job will not be considered
an excuse for poor job performance, absenteeism, tardiness, leaving early, refusal to travel, or
refusal to work overtime or different hours. If outside work activity causes or contributes to job-
related problems, it must be discontinued, or the employee may be subject to disciplinary action,
up to and including termination. Employees are obligated to discuss any potential conflicts of
interest with their manager. Outside employment or volunteer assignments that constitute a
conflict of interest are prohibited.

Dress Policy
The Company provides a casual yet professional work environment for its employees. Even
though the dress code is casual, it is important to project a professional image to our guests,
visitors, and coworkers. Employees are expected to dress in a manner consistent with good
hygiene, safety and good taste. Please use common sense.
Employees in restaurants are required to wear a Company provided uniform; uniforms should
always be clean and neat to present a professional appearance.

February 2020 27
Employees inappropriately dressed will be sent home and required to return to work in
appropriate attire. This time away from work will be unpaid, unless otherwise required by law.
Any questions or complaints regarding the appropriateness of attire should be directed to the
Human Resources Department. Decisions regarding attire will be made by Human Resources and
not by individual departments or managers.
Note: Religious and/or disability related exceptions may be permitted depending on the
circumstances and/or otherwise as necessary to comply with applicable law. In addition, the
Company prohibits discrimination based on hair texture and protective hairstyles (e.g., braids,
locks, twists), as defined and protected by state law. Contact Human Resources with questions.

Employment of Relatives and Personal Relationship Policy

The Company may hire relatives and domestic partners if (1) the persons concerned will not work
in a direct supervisory relationship, and (2) the employment will not pose a conflict of interest or
difficulties for supervision, security, safety, or morale. For purposes of this policy, “relatives” are
defined as spouses or domestic partners, children, siblings, parents, or grandparents. A
“domestic partnership” is generally defined as a committed relationship between two individuals
who are sharing a home or living arrangement.
If present employees become relatives during employment, Human Resources should be notified
so that the Company may determine whether a problem involving supervision, security or
employee morale, or a conflict of interest that would materially and substantially disrupt the
Company’s operations, exists. If the Company determines that such a problem exists, the
Company will take appropriate steps to resolve the problem, which may include reassignment of
one relative (if feasible) or asking for the resignation of one of the relatives. Exceptions to this
policy must be approved by the Chief Human Resources Officer.
The Company prohibits managers from dating employees whom they supervise directly or
indirectly or those whose career they have the ability to influence. While the Company does not
want to interfere with the personal lives of our employees, we recognize that a
manager/subordinate relationship has a high risk of adversely affecting the work environment.
Accordingly, the Company prohibits managers from dating or otherwise making romantic or
sexual advances toward subordinate employees, even if it is believed the advance is welcomed.
Violation of this policy could lead to disciplinary action up to and including termination.
The Company also discourages co-workers from dating or pursuing romantic relationships. If any
employees are dating or romantically involved with a coworker, the employees must disclose to
Human Resources that it is voluntary and consensual. The employees will also be required to
disclose to Human Resources when the relationship is no longer voluntary and consensual. If such
a relationship exists or existed, and such disclosures have not been made, the relationship will
be presumed to have been voluntary and consensual. In addition, when such relationships exist,
and the Company determines that a problem involving supervision, security or employee morale,
or a conflict of interest that would materially and substantially disrupt the Company’s operations,
exists, the Company will take appropriate steps to resolve the problem, which may include
reassignment of one employee (if feasible) or asking for the resignation of one of the employees.

February 2020 28
Service Animals
Consistent with the Americans with Disabilities Act (ADA), all employees are required to ensure
that all guests with disabilities, including those requiring the use of service animals, are
accommodated and treated in a non-discriminatory manner.
Service animals are animals that are trained to perform work for persons with disabilities. They
are not considered pets and come in a variety of breeds and sizes. Service animals are not
required to be specially marked, such as wearing identifying tags, vests or collars. Service animals
must be harnessed, leashed, or tethered unless these devices interfere with the service animal’s
work or the individual’s disability prevents him or her from using these devices.
This Policy requires compliance with the following:
1. Individuals requiring the use of a service animal must be given full and fair use of Carl’s
Jr. Restaurants and/or Hardee’s Restaurants with their service animals.
2. In situations where it is not apparent that an animal entering the restaurant is a service
animal, employees may ask only two questions: (1) is the animal required because of a
disability? And (2) what work or task has the animal been trained to perform?
3. If employees are uncertain whether an animal entering the restaurant is a service animal,
they should ask their manager or supervisor to discreetly investigate the matter to avoid
unnecessary embarrassment to the guest.
4. Employees’ manager or supervisor may ask the guest the following:
a. is the animal required because of a disability? And
b. what work or task has the animal been trained to perform?
To be clear, these inquiries may not be made when it is readily apparent that the
animal is a service animal, such as where a guide dog is guiding a blind person or
a dog is pulling a wheelchair.
EMPLOYEES MUST NOT:
a. Demand proof that the animal is a certified service animal;
b. Demand proof of the animal’s training;
c. Ask the guest to identify his or her disability; or
d. Require a guest to provide medical documentation of any kind. If a guest states
that his or her animal is a service animal, employees must allow him or her full
and fair access, with the animal, to the restaurant.
5. Service animals may only be excluded if:
a. The animal is out of control, and the handler cannot or does not regain control; or
b. The animal is not housebroken

Information Systems and Electronic Resources

The Company’s information systems and electronic resources, including but not limited to
computers, cell phones, voice mail, e-mail, access to the Internet, fax machines, and any other

February 2020 29
communication or information-transmittal device (“information systems”) are provided by the
Company for the use of the Company and are to be reviewed, monitored and used only in the
pursuit of the Company’s business. As a result, certain data is readily available to numerous
persons. If during your employment, you perform or transmit work on the Company’s computers
or other technical resources, your use may be subject to the review of others.
You may access only files or programs that you have permission to use. Unauthorized review of
data, dissemination of passwords, the creation, or use of passwords not authorized by the
Company, damage to systems, removal of files, removal of programs or improper use of
information contained in any technical software system, or application may result in disciplinary
action, up to and including termination.
INSTALLING OR DOWNLOADING ANY SOFTWARE ON TO ANY COMPUTER WITHOUT EXPLICIT
PERMISSION IS PROHIBITED EVEN IF YOU PERCEIVE IT TO BE A BENEFIT TO YOUR WORK. SUCH
PROGRAMS CAN INSTALL “SPYWARE” WHICH COMPROMISES OUR SECURITY AND PRESENTS
OTHER SERIOUS PROBLEMS.
The following applies (as further elaborated below) to the use by employees of all of the
Company’s information systems:
1. The Company’s anti-harassment, retaliation and discrimination, solicitation/distribution,
and workplace violence policies all extend to the use of the Company’s information
systems. Employees should not, for example, use sexually suggestive screen savers,
download or disseminate pornographic materials, or transmit or receive e-mail messages
that contain offensive or objectionable material that is sexual in nature. Any such
inappropriate materials received must be immediately deleted.
2. Any Company IT personnel whose function is to perform tasks that may include repairing,
installing, or otherwise servicing computers or computer components is mandated to
immediately report to the Chief Legal Officer any instance when the person knows or
reasonably suspects a child has been a victim of abuse or neglect.
3. Commercial use of any of the Company’s electronic communication systems that is not
directly for the benefit of the Company is prohibited.
4. Use of the Company’s information systems or electronic resources to infringe upon HIPAA
privacy rights, including the unauthorized use and disclosure of PHI, is prohibited.
5. The Internet and any other communication device may not be used in a manner that
infringes upon the patents, copyrights or licenses of the Company or others.
6. No electronic communication device may be used in a manner that infringes upon the
Company’s proprietary, confidential, or trade secret information (as defined in the
Confidentiality Policy).
7. Use of devices for recording - Employees should refer to the Section of this Handbook
captioned Secret Recording Generally Prohibited.
8. Such devices may not be used for any competitive purpose adverse to CKE or any purpose
that creates an actual, potential, or apparent conflict of interest adverse to CKE.
The use of the Company’s information systems in any manner that may be disruptive, abusive,
unethical, unlawful, or otherwise in violation of Company policy and procedure is expressly
prohibited, including but not limited to the display or transmission of sexually explicit images,

February 2020 30
messages and cartoons, as well as the use of any ethnic slurs or communication that may be
construed as harassment or disparagement of others. Such transmissions may result in
disciplinary action, up to and including termination. The personal use of the Company’s
information systems to solicit or proselytize others (e.g., for commercial ventures, religious, or
non-Company endorsed political causes, outside organizations or other non-job-related
solicitations) is strictly forbidden without prior approval of the Chief Legal Officer and may result
in disciplinary action, up to and including termination. Searches of the Company’s information
systems may be conducted without advance notice to ensure that they are being used exclusively
to facilitate transmittal of business-related information.
Employees may not duplicate software programs. Any unauthorized duplication will result in
immediate discipline, up to and including discharge. Employees may not keep any backup copies
of work done for the Company when they leave the Company. If employees wish to keep samples
of their work, they must obtain written permission from an authorized representative of the
Information Technology Department to download specific examples. Downloading may occur
only in the presence of an authorized representative of the Information Technology Department.
Under no circumstances are employees allowed to keep copies of the Company’s proprietary or
confidential information, trade secrets, data, or programs.
As an employee of the Company, you are permitted to use the Company’s equipment for
occasional, non-Company-related purposes in accordance with Company policy. It should be
noted, however, no personal right of privacy of an employee exists in any information
contained within or transmitted by the Company’s computers or voice mail or e-mail systems.
Any information contained on the Company’s voicemail and e-mail systems are subject to
review by the Company at any time without prior notice. Company management may override
your voicemail, e-mail and computer passwords and review your messages or other data at the
sole discretion of the Company.
The Company may at any time in its sole discretion, deny any employee access to sites for
functions on any of its electronic or other communications equipment on a temporary or
permanent basis.
Other Company communications equipment such as cell phones, office telephones and modems,
are not to be used for illegal activities or non-Company business activities that would in any way
violate Company policies or procedures. Invoices, call records and other documentation related
to any type of Company equipment are the property of the Company and may be reviewed and
used for purposes the Company considers appropriate.
Restaurant employee use of cellular/audio/video equipment
This policy is to define the guidelines for the use of cell phones, video cameras, camcorders, tape
recorders and audio equipment such as I-Pods (“Electronic Equipment”) while restaurant
employees are on Company property. For purposes of this policy, the Company’s property
includes any area inside the restaurant.
Electronic Equipment shall not be used or carried by any Restaurant Employee while on duty in
a restaurant.

February 2020 31
Restaurant Employees may use personal electronic equipment while off-duty or on a meal or rest
break; however, they may not do so while inside the restaurant. Restaurant Employees must be
outside of the restaurant to use Electronic Equipment and must use this equipment in a way so
as not to disturb restaurant customers. The General Manager may use a cell phone in the
restaurant office for limited personal calls so long as it does not interfere with the operation of
the restaurant and while on a meal or rest break. Under no circumstance may any Restaurant
Employee utilize video or recording equipment on Company property without prior written
permission from the Vice President of Operations.
Restaurant Employees may use the restaurant telephone for emergencies and business
purposes, such as communications with the District Manager, handling customer inquiries and/or
complaints, and rescheduling shifts or obtaining transportation from work.
Electronic Equipment that is brought onto Company property must be secured with the
Restaurant Employees’ personal belongings or with permission of the Manager, in the
Manager’s office while on duty. However, the Company is not responsible for Electronic
Equipment placed in the Manager’s office or anywhere else on the Company’s property.
Care of Equipment. Employees should use proper care when using the Company’s property and
equipment and should not remove property from the premises without the proper authorization
of management. If employees lose, break, or damage any property, they should report it to their
manager at once.
Telephones and Mail. Telephones are an essential part of our business. Employees should always
maintain a pleasant and business-like manner when using the phones. Use of Company
telephones to make overseas and long distance calls for personal reasons is prohibited.
Employees are required to keep personal phone calls to an absolute minimum. The Company’s
telephones are the business lifeline and must be kept free for that purpose. Abuse of telephone
or mail privileges may subject employees to disciplinary action, up to and including termination.
Texting. The approved communication methods to be used include the use of the restaurant’s
business telephone, restaurant email, written correspondence in the form of printed paper
memorandums, printed posters, handwritten notes such as time off requests and verbal
communications. Texting is not an approved communication method.
Upon separation, employees are required to return all Company property.
Violation of this policy will result in disciplinary action up to and including termination.

Social Media Acceptable Use

This policy, which applies to all Company employees and to all forms of social media, is designed
to ensure that employees participate in social media in an ethical and legal manner. Employees
are responsible for their own social media posts (as used in this policy, “posts” includes posting,
re-posting, sharing, liking, etc.) and online activity. Remember, information you publish may be
difficult or impossible to remove or delete.
Definition. As used in this policy, “social media” refers to blogs, forums, and social networking
sites such as Twitter, Facebook, LinkedIn, Pinterest, YouTube, Instagram and SnapChat, among

February 2020 32
others. “Blogging” for purposes of this policy means posting information on your own, or
someone else’s, Weblog (“blog”), journal or diary on the Internet. “Blogging” also includes any
other form of posting information on the Internet, such as posting on a personal Web site, social
networking or affinity Web site, on a bulletin board or in a chat room. The information posted is
usually written comments, but can also be or include photographs, drawings, videos or any other
graphics or audio information.
Use of Company Resources. Company property, including but not limited to Internet access,
computer hardware, and software, may not be used by an employee for blogging and/or
participation in other user-generated content sites without the express prior written consent of
the Chief Technology Officer. Any person authorized to engage in blogging using the Company
Resources must obtain prior, written approval of any information that is the subject of the blog.
Use of Personal Resources. Employees who engage in blogging using their own computer
resources should be mindful that their postings, even if done off premises and while off duty,
could have an adverse effect on the Company. Your blogging is subject to all of the policies in this
Handbook. Except as otherwise required by law, no Company employee may post online,
comments that are:
● Unlawfully discriminatory or harassing;
● Intentionally false, defamatory or disparaging of the Company’s business, employees,
guests, licensees, vendors or suppliers;
● In violation of Company policy (including but not limited to, Workplace Violence
Prevention, Equal Employment Opportunity, Respect in the Workplace);
● Protected by the attorney/client privilege or work-product doctrine;
● Disclose the confidential information of the Company (as defined in the Confidentiality
Policy) including, but not limited to, financial results (e.g., sales, expenses, margin and
cash flows), financial forecasts, mergers or acquisitions, capital allocation plans or
strategy, trade secrets, business strategy or initiatives, products, etc.;
● Represented to be the views of the Company or give the appearance of speaking on behalf
of the Company.
If an employee is dissatisfied with any aspect of the Company or its operation, the employee is
encouraged to bring those concerns to the appropriate Company personnel. Complaints about
work are more efficiently addressed and resolved by speaking directly with your co-workers,
supervisor(s) or Human Resources rather than by posting complaints in a blog.
Penalty for violation. Employees violating this policy will be subject to disciplinary action, up to
and including termination. Accordingly, employees who have questions and/or uncertainty about
the use of social media are urged to consult with Human Resources concerning the scope and
application of this policy.
Disclaimers. If an employee identifies himself or herself as a Company employee or discusses
matters related to the Company on social media, the site must include a disclaimer on the front
page stating that it does not express the views of the Company and that the employee is
expressing only his or her personal beliefs. For example: “The views expressed on this website are
mine alone and do not necessarily reflect the views of my employer.” Place the disclaimer in a

February 2020 33
prominent position and repeat it for each posting expressing an opinion related to the Company
or the Company’s business. Employees must keep in mind that if they post information on a social
media site that violates Company policy and/or federal, state, or local law, the disclaimer will not
shield them from disciplinary action.
This policy is not intended to interfere with, restrain, or prevent employee communications
regarding wages, hours, or other terms and conditions of employment or to otherwise interfere
with employees’ rights under the National Labor Relations Law. The Company will not construe
this policy in a way that limits such rights.

Secret Recording Generally Prohibited

The Company conducts business in several states where it is unlawful to record communication
without the consent of all parties to the communication. Employees are prohibited from
recording, or attempting to record, any person, conversation or communication, or activity that
occurs at the Company’s place of business or in the course of performing job responsibilities for
the Company unless all persons to be recorded are notified of, and consent to, the recording
before it is made. This policy includes those conversations or communications and activities that
in any way involve Company employees, any customer or clients, or any other individual with
whom the Company is doing business or intending to do business in any capacity, including but
not limited to, vendors, suppliers, consultants, attorneys or independent contractors.
“Recording” under this policy includes taking video pictures (film or digital) with a voice
component, or recording of any conversation or communications, regardless of whether the
conversation or communication takes place in person, over the telephone, or via any other
communication device or equipment, regardless of the method used to record, and regardless of
where the conversation or communication takes place (as long as it occurs during the course of
performing job responsibilities), i.e., whether on or off the Company’s premises. “Recording" also
includes capturing sound through any mechanism or device which is capable of recording or
amplifying a conversation (other than a device used to mitigate/assist a hearing impairment),
including, but not limited to, tape-recorders, microcassette recorders, video cameras, digital or
analog recorders, applications (“apps”) on a smartphone or tablet, or any other mechanism or
device capable of storing or amplifying sounds.
Employees who are found to have violated this policy may be subject to disciplinary action, up to
and including termination of employment. The Company will not construe or apply this Policy in
a manner that interferes with, restrains, or prevents an employee from exercising their rights to
communicate regarding wages, hours or other terms and conditions of employment or to
otherwise interfere with employees’ rights under the National Labor Relations Act.
The only exception to the above stated policy will be those employees whose position and job
function are covered by the Corporate Policy, Call Monitoring, and Recording Policy.

Solicitation and Distribution

Employees should be able to work in an environment that is free from unnecessary disturbances
and interference with their work. To protect our employees and guests, solicitation by employees

February 2020 34
is strictly prohibited while either the employee being solicited or the employee doing the
soliciting is on “working time” or in work areas. “Working time” is defined as time during which
the employee is or should be working, and is not on a meal or rest break.
Employees are also prohibited from distributing written materials, handbills, or any other type of
literature on working time and, at all times, in “work areas.” “Work Areas” includes all office
areas, conference rooms, reception areas, restaurant front of house areas, kitchens, and other
areas where work in performed. “Work areas” do not include break rooms or common areas
shared by employees during nonworking time.
Nonemployees may not trespass or solicit or distribute materials anywhere on Company property
at any time. To the extent permitted by law, Company property for purposes of this policy also
refers to any Company owned or leased property, including parking lots and sidewalks where
applicable.
Employees should refer any requests from outside persons or organizations, including vendors,
to sell merchandise, solicit contributions, distribute literature, arrange displays, or utilize
Company facilities to Human Resources immediately. If you have any questions as to the meaning
of “working time” or “work areas,” please contact Human Resources.
This policy is not intended to interfere with, restrain, or prevent employee communications
regarding wages, hours, or other terms and conditions of employment or to otherwise interfere
with employees’ rights under the National Labor Relations Act. The Company will not construe
this policy in a way that limits such rights.

Media Relations
To ensure consistent and accurate communications with the media, only designated
spokespersons have the authority to respond to media inquiries and requests on behalf of the
Company. Employees are prohibited from responding to or initiating contact with the media
concerning CKE or its business affairs. If approached by a member of the media, including radio,
TV, newspaper, or magazines, refer them to the Public Relations Department, who will provide
the appropriate Company contact information. No one is permitted to film or take photographs
of the interior of the restaurant without prior approval of Public Relations. However, photo
opportunities for our guests in our restaurants are always welcome.
This policy is not intended to interfere with, restrain, or prevent employee communications
regarding wages, hours, or other terms and conditions of employment or to otherwise interfere
with employees’ rights under the National Labor Relations Act. The Company will not construe
this policy in a way that limits such rights.

EMPLOYEE BENEFITS
The Company has developed a comprehensive set of employee benefit programs to enhance
employees’ total rewards. Employees may view a comprehensive description of the benefits

February 2020 35
offered by going to www.ckebenefits.com. If employees have questions regarding the benefit
plans, they should contact the CKE Benefits Department at 888-253-3115.
If there is any real or apparent conflict between the summaries contained in the Online
Enrollment Guide and the terms, conditions, limitations, or exclusions of the official plan
documents, the plan documents are controlling. The Company may modify or terminate
employee benefits at any time except as otherwise required by applicable law.

Health Benefits Eligibility Requirements

Employees are eligible to participate in the Company’s health benefits program based on their
current position with the Company. Employees in a designated full-time position and employees
who work on average 30 hours or more per week during the relevant measurement period are
eligible to participate in comprehensive health benefits, including medical, dental, and vision.
Eligible employees must enroll in benefits within thirty (30) days of their eligibility date. Coverage
begins on the first of the month following the employee’s hire date. If an employee does not
enroll within the thirty (30) day enrollment period, they must wait until the following Open
Enrollment period to qualify for coverage.
Information regarding eligibility, coverage and enrollment will either be mailed to employees’
home or presented during their orientation.

Benefits Plan Changes

During the year, employees can change or cancel their coverage, or add and remove dependents,
only if they have a qualifying life event. Otherwise, changes are only accepted during Open
Enrollment each year.
Examples of qualifying life events include:
● Marriage or divorce;
● Birth, adoption or change in custody of their child(ren);
● Death of their spouse or child;
● Change in employees’ or spouse’s employment status; or
● Child’s loss of dependent status.
To change coverage due to a qualifying life event, employees must notify the Total Rewards
Department and enroll or make changes within thirty (30) days of the qualifying life event.

COBRA (Consolidated Omnibus Budget Reconciliation Act)

In accordance with the requirements of a federal law, known as “COBRA,” eligible employees
and/or family members may continue participation at their own expense in the Company’s group
health insurance program following certain “qualifying events.” These events include employees’
termination (other than due to “gross misconduct”), resignation, reduction in hours, divorce,
legal separation, death, Medicare entitlement, and certain other events. Details regarding the
COBRA rules are presented to employees when they begin participation in the Company’s group
health plan and, again when they experience a qualifying event that triggers the right to continue

February 2020 36
participation in the group health plan. Under the law, employees or a family member must inform
the Company’s plan administrator of a divorce, legal separation or loss of dependent status
within thirty (30) days after the occurrence of the event.
If COBRA coverage is not chosen, employees’ group medical/dental insurance coverage will end
on the last day of the month in which separation occurs.

HIPAA (Health Insurance Portability & Accountability Act)

HIPAA is a federal law that allows certain individuals to transition from one job to another without
losing health insurance coverage or by reducing the amount of time they are excluded from
coverage under a new employer’s health insurance plan. The Company complies with HIPAA and
recognizes coverage that new employees had under a prior employer’s group health plan to the
extent required by the law. This may facilitate coverage for certain pre-existing conditions under
the Company’s group health plan before the date coverage for such conditions might otherwise
be available. Additionally, the Company complies with HIPAA’s privacy rules regarding the use
and disclosure of protected health information (PHI). Employees who manage PHI are required
to safeguard such information from disclosure and to comply with the Company’s policies and
procedures (e.g. IT security) as well as HIPAA security rules and related laws. For more
information, contact the Total Rewards Department.

Holidays
The Company normally observes ten (10) paid holidays during the year. Corporate employees are
entitled to the following holidays:
● New Year’s Day
● Martin Luther King, Jr.
● Good Friday
● Memorial Day
● Fourth of July
● Labor Day
● Thanksgiving Day
● The Day After Thanksgiving
● Christmas Day
● Personal Floating Holiday
Corporate employees are eligible for one Personal Floating Holiday after ninety (90) days of
continuous employment. At their discretion, employees may take this holiday in a full day
increment, with their manager’s approval. If employees work on a designated holiday, they
should consult with their manager for their holiday plan. Employees that are part of the
Company’s temporary pool are not eligible for holiday pay.
Shift Leaders
Designated holidays for all restaurant hourly employees are New Year’s Day, Easter,
Thanksgiving, and Christmas. Hours worked on a designated holiday will be paid at the rate of

February 2020 37
one and a half times employees’ regular hourly rate. If employees do not work on a designated
holiday, they will not be paid for that day.
Note: The Company recognizes that some employees may wish to observe certain religious days
that are not included in the holiday schedule. Employees may use accrued vacation, if available,
otherwise, the time off will be without pay. The Company will make a reasonable effort to
accommodate an employee’s religious beliefs, consistent with the Company’s operating
requirements, and provided such accommodation does not create an undue hardship. An
employee who wishes to request time off for a religious holiday should provide reasonable
advance notice to his or her supervisor and Human Resources.

Sick Time
(States and local jurisdictions without paid sick time laws)
This policy applies to eligible employees in those locations that do not have an applicable paid
sick time law. This policy does not cover employees at the level of Vice President and above.
Sick Time may be used by employees for the employees’ illness or to care for an immediate family
member, for a registered domestic partner or a child thereof, who is ill, or for medical
appointments. Employees may be required to provide a health care provider’s note to verify an
illness. A note may also be required if the absence has been more than three (3) days. After three
(3) consecutive days of absence, employees may be placed on a leave of absence. Please refer to
the Leave of Absence Policy. Any balance of unused Sick Time may be carried over to the next
year until a maximum balance of thirty (30) days or (240 hours) is accumulated. Salaried
employees must take Sick Time in whole day increments. Hourly employees may take Sick Time
in hourly increments. Upon termination of employment for any reason, employees will not be
paid for earned but unused Sick Time unless required under the law.
Corporate Employees. Unless otherwise required by applicable law, corporate employees are
eligible for Sick Time benefits upon completion of thirty (30) days of continuous employment. All
corporate employees outside of California will receive five (5) days (40 hours) of Sick Time each
January 1. During their first year of employment, they will receive Sick Time on a prorated basis.
Restaurant Employees. Please reach out to your HR Business Partner to find out about available
sick time.

Bereavement
The purpose of bereavement time is to provide employees with time to attend the funeral of a
family member or close relative and to handle related personal affairs. In the event of a death of
an immediate family member, corporate employees are provided up to three (3) consecutive
days of time off with pay, if necessary, up to and including the day of the funeral. For purposes
of this policy, immediate family members include an employee’s current spouse, registered
domestic partner, mother, father, sister, brother, child, stepfather, stepmother, stepbrother,
stepsister, stepchild, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in-law,
daughter-in-law, grandparents, and grandchildren. If a relative who is not an immediate family
member passes away, corporate employees are provided time off from work with pay, not to

February 2020 38
exceed one (1) workday. (Example: aunts, uncles, nieces, nephews, and cousins). Employees may
be asked to provide satisfactory evidence to support their bereavement time.
Shift Leaders
Bereavement time may be granted to shift leaders without pay. If time off is needed due to the
death of an immediate family member, employees should notify their manager immediately.
Time off will be granted to allow employees to attend the funeral and make necessary
arrangements for up to three (3) consecutive days if necessary, up to and including the day of the
funeral. For purposes of this policy, members of an employee’s immediate family include their
current spouse, registered domestic partner, mother, father, sister, brother or child, stepfather,
stepmother, stepbrother, stepsister, stepchild, mother-in-law, father-in-law, brother-in-law,
sister-in-law, son-in-law, daughter-in-law, grandparents, and grandchildren. The Company may
require proof of death and/or relationship.
The Company understands the impact that a death can have on an individual or a family.
Therefore, additional unpaid time off may be appropriate in some cases, depending on
circumstances such as travel distance, the employee’s responsibility for funeral arrangements,
and the employee’s responsibility for taking care of the estate of the deceased. In cases where
additional time off is needed, please contact Human Resources regarding the Company’s
Personal Leave of Absence Policy.

Jury Duty
General Managers and above summoned for jury duty during scheduled working hours, will be
paid their regular rate of pay for up to ten (10) working days. Employees summoned for jury duty
exceeding ten (10) working days will be granted unpaid leave to serve.
All other employees summoned for jury duty will be granted leave to serve on a jury, which time
will be unpaid unless otherwise required by applicable law. Employees should notify their
manager as soon as a summons is received.
Salaried employees must submit dates served in HR system using jury duty option. Provide the
court issued notification of time and date(s) served to your supervisor. Hourly employees must
record time served on their weekly time record and submit the court issued notification of time
and date(s) served to their supervisor.
The Company expects employees to return to their job if they are excused from jury duty during
their regular working hours. Employees may retain remuneration received from the court for
travel and time served.
This policy applies unless specific state law dictates otherwise.

Time Off to Vote

The Company believes that employees should have the opportunity to exercise their right to vote
in primary, general, or special elections. If employees are scheduled to be at work, they may take
as much time as they need to vote, and up to two (2) hours of that time will be paid. Employees’
time off for voting should be at the beginning or end of their regular work shift, unless they make

February 2020 39
another arrangement with their manager. If employees think they will need time off to vote, they
should notify their manager at least two (2) working days prior to the election. Proof of voting
may be requested. This policy applies unless specific state law dictates otherwise.

Vacation
The Company provides vacation time to employees to allow for rest and recreation. The amount
of vacation time accrued is based on length of service with the Company. The annual vacation
time calculated in hours is divided equally over the employee’s twenty-six (26) bi-weekly pay
periods. All above restaurant level employees are covered under this policy, except that this
policy does not cover employees at the level of Vice President and above.
⮚ Employees with less than five (5) years of service will earn two (2) weeks/80 hours of
vacation time per year. Employees with five (5) years and less than ten (10) years of
service will earn three (3) weeks/120 hours of vacation time per year. Employees with ten
(10) or more years of service will earn four (4) weeks/160 hours of vacation time per year.
⮚ Should employees’ accrued but unused vacation hours reach the maximum in the chart
below, employees will no longer accrue vacation hours per bi-weekly pay period. If
employees later use vacation to fall below the maximum accrual, they will begin to earn
vacation hours but only from the next pay period forward.
⮚ Employees earn vacation hours if they work any portion of the bi-weekly pay period.
⮚ Employees may not take vacation time before it is earned. Employees’ vacation time
requests should be submitted at least two (2) weeks in advance to their supervisor.
Employees must receive approval from their supervisor before the employee takes the
vacation time off. Non-exempt employees’ vacation time will be submitted and recorded
timecard. Supervisors may deny vacation time requests due to business demands.
⮚ Employees’ vacation time is paid at their current rate. Employees will not be paid in lieu
of taking vacation time off except upon termination of employment. When designated
holidays occur within a scheduled vacation period, the holiday will not be charged against
vacation time.
⮚ Exempt employees must take vacation time in whole day increments. Hourly/non-exempt
employees may take vacation in hourly increments.
⮚ During an authorized Leave of Absence (LOA), the bi-weekly vacation accrual will stop
until the employee returns to active duty. Employees will begin to earn applicable
vacation hours but only from the next pay period forward.
⮚ Employees who leave the Company and return to active employment within 30 days of
the separation date will receive vacation benefits based on their previous hire date.
⮚ Full-time Shift Leaders with more than one year of service will be eligible to receive their
annual vacation payment upon promotion to General Manager. The affected employees’
vacation hours awarded will be based on:
● The current average hours worked per week (Carl’s Jr. Restaurants LLC) or the
eligible accrual of 35/70/105 hours for Hardee’s Restaurants LLC.
● The payout of average hours per week will be prorated from their last anniversary
date to the date of the promotion.

February 2020 40
 Payment of the prorated average hours will be made at their current hourly rate
●
as a Shift Leader.
⮚ All General Managers, GMITs, GMTs (and Restaurant Managers at Hardee’s Restaurants
LLC) who are demoted to the level of Shift Leader or Crew Hourly will be paid out their
current management vacation/ floating holiday accrued balances. The payout of this
balance will be made at the employee’s former management salary. Thereafter, the
affected employees will be eligible to participate in the Shift Leader/Crew Hourly vacation
plan. During the first year in their new position, employees’ vacation hours awarded will
be prorated from the date of assignment to their anniversary date.
Vacation Accrual:
Vacation accrual per bi-weekly pay period
5 Years and
Less than 5 10 or more
less than 10
Position Years of
Years of
Years of
Service Service
Service
Corporate Full-Time Staff (Exempt and Non-Exempt) and
Field Management
3.078 4.616 6.154
GMTs Internal – CJR and HFS
Hours Hours Hours
Carl’s Jr. Non-California General Managers
Hardee’s General Managers
California General Managers
3.655 5.481 7.311
Carl’s Jr. General Managers-in-Training
Hours Hours Hours
Carl’s Jr. District Managers-in-Training
Hardee’s General Managers-in-Training 3.847 5.770 7.694
Hardee’s District Managers-in-Training Hours Hours Hours

Carry-Over Maximums:
Carry-Over Maximums
Up to 5
5-9 years 10+ years
years
(15 days (20 days
Position (10 days
earned per earned per
earned per
year) year)
year)
Corporate Full-Time Staff (Exempt and Non-Exempt) and
Field Management
140 210 280
GMTs Internal – CJR and HFS
Hours Hours Hours
Carl’s Jr. Non-California General Managers
Hardee’s General Managers
California General Managers
Carl’s Jr. General Managers-in-Training 166.28 Hours 249.38 Hours 332.50 Hours
Carl’s Jr. District Managers-in-Training
Hardee’s General Managers-in-Training 175 350
262.50 Hours
Hardee’s District Managers-in-Training Hours Hours

February 2020 41
Shift Leaders
Crew to Shift Managers are eligible for paid vacation time after one year of continuous
employment. Shift Leaders’ vacation pay is earned on their anniversary date and is processed for
payment the following month. Vacation will be paid at employees’ hourly rate at the time of their
anniversary. No pay is given at the time Shift Leaders take vacation time. Shift Leaders’ vacation
pay will be based on the following:
● Employees must meet the minimum average hours’ requirement for eligibility.
● The number of eligible weeks of vacation pay is based on length of service.
● Employees must be employed on their anniversary date to be eligible for vacation pay.
● Requests for vacation time should be submitted in writing at least two (2) weeks in
advance to employees’ manager. Employees must receive approval from their manager
before they take their vacation. When possible, vacation periods will be assigned in
accordance with employees’ requests, taking operating requirements into account.
● Vacation hours will not accrue while employees are out on an approved unpaid leave of
absence.
● In California, the Company has established a funded vacation plan for the benefit of its
eligible employees. The plan has been established in accordance with the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA). Vacation benefits are paid
to eligible employees by or on behalf of a trust established for the purpose of funding
vacation benefits. For more information, please refer to the Summary Plan Description
available through the Total Rewards Department.

Leave of Absence Policy

Purpose: The purpose of a LOA is to provide employees time off work for medical or personal
needs. A LOA is granted for various reasons and depending on the leave requested; the employee
and management must follow applicable Company Policy and/or federal and state requirements,
as outlined below. Where federal, state or local law or regulation requires that the Company
provide additional leave, or where such law or regulation gives employees greater rights than
Company policy, the Company will comply with such law or regulation.
EMPLOYEES COVERED BY THE POLICY
Corporate full-time staff (exempt and non-exempt), Field Management, General Managers,
General Managers-In-Training, District Managers, District Managers-In-Training, General
Manager Trainees, and Restaurant Crew Members and Shift Leaders. Companies covered under
this policy are CKE Restaurants Holdings, Inc., Carl Karcher Enterprises LLC, Hardee’s Food
Systems LLC, Carl’s Jr. Restaurants LLC, and Hardee’s Restaurants, LLC.
REQUIREMENTS
A. Employees are required to request a LOA directly through their Human Resources
representative. Employees must submit their requests at least thirty (30) days prior to the
date the leave is to begin. In cases of an emergency, employees should submit their
requests as soon as reasonably possible.
B. LOA Forms are located on the Company intranet.

February 2020 42
 C. Employees on unpaid LOA are not eligible to accrue the following benefits: Vacation,
Personal Holiday and Sick (if applicable). CKE will reactivate Benefit accruals upon the
employees' return to work from LOA.
D. Employees must comply with CKE call-in procedures, as applicable, during any LOA.
INSURANCE BENEFITS
A. During an employee’s LOA, CKE will continue to pay all applicable group health insurance
premiums, which it ordinarily pays on behalf of the employee. An employee must
continue to pay the employee’s portion of the insurance premium during the LOA.
B. The Total Rewards Department will notify the employee in writing regarding the amount
of the health insurance premiums and how to submit payments.
C. During an employee’s LOA, medical and welfare benefits shall be maintained so long as
the employee continues to timely pay his or her portion of the insurance premiums. CKE
may terminate insurance benefits if an employee pays his or her insurance premiums
more than thirty (30) days late.
D. To the extent permitted by law, CKE shall recoup the cost of the insurance premiums paid
on behalf of the employee during the LOA when the employee returns from his LOA or if
the employee fails to return from his LOA.
COMPANY PROVIDED EQUIPMENT/ALLOWANCES WHILE ON LOA
A. Vehicle – With the beginning of the LOA, CKE may require, in its sole discretion, employees
to turn in any Company provided vehicle. For employees receiving vehicle allowances,
these allowances will cease.
B. Computer – With the beginning of the LOA, CKE will disconnect employees' access to all
computers. At CKE's request, employees must turn in all Company issued devices.
C. Phone – CKE will deactivate employees’ Company-issued cell phones. Cell phone and
Internet service allowances paid by the Company will also cease.
EXTENSIONS, INTERMITTENT LEAVE, AND RETURNING FROM LEAVE
Extensions
A. Occasionally, employees may need to extend a LOA beyond the original reported expected
return date. In that case:
1. The employee is required to notify the LOA Administrator of the need to extend
the LOA before the expiration of the current leave period or as soon as they are
aware of the need for an extension.
2. If on a Medical Leave, the employee must provide a new Certification from his/her
health care provider with the amount of extended leave time needed.
3. CKE will evaluate requests for additional leave time on a case-by-case basis.
Returning from Leave
A. The employee must notify the departmental supervisor and the LOA Administrator five
(5) days in advance of his/her scheduled return to work date.
B. All employees returning from a Medical LOA are required to provide a health care
provider's certification indicating the employee's ability to return to work.

February 2020 43
 C. The employee must provide a health care provider's certification before returning to
work.
D. Other than for FMLA LOAs as discussed below, and unless otherwise provided or required
by law, an employee will be reinstated upon conclusion of the leave if there is an available
position for which the employee is qualified.
E. An employee is required to return from a LOA on his/her scheduled return date.
F. If an employee fails to return on his/her scheduled return date, without requesting and
obtaining approval for an extension, CKE may assume that the employee has decided not
to return and the employee may be considered terminated from the Company.
TYPES OF LEAVES AND REQUIREMENTS
A. Medical Leave of Absence
1. CKE requires a statement from a licensed health care provider, giving the date of onset
of the illness/injury, that the employee is unable to work because of the illness/injury
and expected date of return or date of the next evaluation. Health care provider
statements need to be provided in advance of the LOA if possible.
2. Employees must exhaust all available sick time and may request pay for available
vacation time and Personal Holidays (if applicable). Employees will receive payment
for requested Vacation time and Personal Holidays after the employee has exhausted
all sick time and only at the request of the employee.
Family Medical Leave Act (FMLA) Leave of Absence
1. This section address leaves under the Family and Medical Leave Act (FMLA). Where state
or local leave laws offer greater protections or benefits to employees, the protections and
benefits provided by such laws shall govern. To the extent permitted by law, such leaves
shall run concurrently with an employee’s federal leave rights under the FMLA.
2. In order to qualify for a FMLA LOA, an employee must:
a. Be employed at CKE for at least 12-months;
b. Work at least 1,250 hours of service during the 12-month period immediately
before the leave would begin; and
c. Be employed at a worksite within 75 miles of which CKE employs 50 or more
employees.
3. Unless stated otherwise in this policy and in accordance with other state requirements,
an eligible employee may request up to 12-weeks leave in the Designated 12-month
period for the following qualifying reasons:
a. To care for a newborn child or a child who has been placed with the employee for
adoption or foster care; or
b. To care for a spouse, child, or parent who has a serious health condition; or
c. A serious health condition of the employee that makes the employee unable to
perform any one or more of the essential functions of his or her position.
d. Eligible employees may qualify for Military Caregiver Leave or Military Qualifying
Exigency Leave under the FMLA, as defined below.
4. Subject to FMLA guidelines, qualification and necessity, some leaves may be taken on an
intermittent basis.

February 2020 44
 5. The Designated 12-month period used to measure the period during which the 12-weeks
of FMLA leave may be taken will be a rolling 12-month period. Each time an employee
takes leave, under the 12-month rolling period, the remaining leave balance consists of
the portion of the 12-weeks that was not used during the immediately preceding 12-
months. When possible, leaves of absences under the FMLA will run concurrently with
leaves taken under State laws.
6. Family members are defined under FMLA as:
a. Spouse – a husband or wife as defined or recognized under state law in the state
where the employee resides.
b. Parent – a biological parent or an individual who had the day-to-day
responsibilities or care for and financially support the employee when he or she
was a child. Parent-in-laws are not included.
c. Child – a son or daughter, who is biological, adopted, or is a foster child, a
stepchild, legal ward or a child for whom the employee has the day-to-day
responsibilities to care for and financially support.
d. The child must be under 18 years of age [or] 18 or older but incapable of self-care
because of a mental or physical disability.
e. CKE may require employees to provide reasonable documentation such as a
written statement from the employee, a birth certificate of a child or a court
document to confirm family members at the time of the requested leave.
7. Employee Notice
a. CKE requires employees to provide sufficient information to determine if the LOA
may qualify as FMLA LOA, as well as the expected timing and duration of the LOA.
Sufficient information may include: the employee’s inability to perform job
functions, the family member's inability to perform daily activities, the need for
hospitalization or continuing treatment by a health care provider. It may also
include circumstances that support the need for Military Caregiver LOA or Military
Qualifying Exigency LOA, as indicated below.
b. Employees must also inform CKE if the requested LOA is for a reason for which an
FMLA LOA was previously taken or certified.
c. Employees are required to give 30 days’ advance notice before a foreseeable
FMLA event. If 30 days’ notice is not possible, then employees must provide as
much notice as practicable under the circumstances and must follow CKE's call-in
and attendance policies located in the company handbooks.
8. Company Notice
a. Once an employee provides sufficient information, CKE will notify the employee
whether he or she is eligible for FMLA leave. If eligible, whether any additional
information is required and will provide the employee's FMLA rights and
responsibilities regarding the leave. CKE will notify an employee if the requested
FMLA leave designation is protected FMLA leave and counted against the
employee's leave entitlement.
b. If CKE determines an employee is not eligible for FMLA leave, CKE will provide at
least one reason for ineligibility. CKE will also inform the employee if it determines
that the requested leave does not qualify for FMLA protection.

February 2020 45
 c. Employees not eligible for FMLA leave may be eligible for an unpaid leave of
absence due to their own disability and/or health or medical condition, which will
be assessed by CKE on a case-by-case basis. CKE cannot guarantee reinstatement
at the conclusion of a non-FMLA leave, unless otherwise required by law.
9. Serious Health Condition
a. To qualify for FMLA leave due to a serious health condition, an employee or
his/her qualifying family member must have a serious health condition. A serious
health condition is an illness such as: injury, impairment, or physical or mental
condition that involves either an overnight stay in a medical care facility, or
continuing treatment by a health care provider for a condition that either prevents
the employee from performing the functions of the employee's job or prevents
the qualified family member from participating in school or other daily activities.
b. Subject to certain conditions, the continuing treatment requirement may be met
by a period of incapacity of more than three (3) consecutive calendar days
combined with at least two (2) visits to a health care provider or one visit and a
regimen of continuing treatment, or incapacity due to pregnancy, or incapacity
due to a chronic condition. Other conditions may meet the definition of continuing
treatment.
10. Medical Certification
a. The request for FMLA due to a serious health condition must be supported by a
medical certification issued by the employee’s health care provider or the health
care provider of the spouse, son, daughter or parent of the employee as
appropriate.
b. Employees must provide medical certification from a health care provider within
15 days after CKE provides notice of the need for a supporting certification.
c. In cases where it is not possible for an employee to provide certification, within
two business days, CKE will allow up to 15 calendar days after the request for
certification is made.
d. CKE may also require periodic recertification supporting the need for leave.
e. In any case in which CKE has reason to doubt the validity of any medical
certification provided to support an employee's request to take FMLA leave
because of the employee's own serious health condition, CKE may require the
opinion of a second and third health care provider consistent with state and
federal law.
11. Military Qualifying Exigency Leave
a. Eligible employees under FMLA guidelines may be provided up to twelve (12)
weeks of leave in a rolling 12 month period when the employee has a qualifying
exigency arising out of the fact that a spouse, son, daughter, or parent is on
covered active duty or has been called to covered active duty in the National
Guard or Reserves or is a member of the Armed Forces who has been deployed to
a foreign country under a Federal call or order to active duty in support of a
contingency operation, as provided by law.
b. "Qualifying exigency" is defined by law as: (1) short-notice deployment, (2)
military events and related activities, (3) childcare and school activities, (4)

February 2020 46
 financial and legal arrangements, (5) counseling, (6) short periods of rest and
recuperation during the deployment, (7) attend military ceremonies or
informational briefings, and post-deployment reintegration briefings, (8) parental
care leave and (8) additional activities where CKE and employee agree to the
leave.
c. Time off for Military Qualifying Exigency Leave counts towards the 12-week
maximum allowable time for FMLA leave.
12. Military Caregiver Leave
a. CKE may provide eligible employees under FMLA up to 26 weeks (one-half year)
of leave during a single 12-month period to care for a covered service member.
b. A covered service member is the employee's spouse, son, daughter, parent, or
next of kin (meaning "nearest blood relative" or person "specially designated")
who is recovering from a serious injury or illness which occurred or was
aggravated in the line of duty on active duty in the Armed Forces, National Guard,
or Reserves, and which may render the service member medically unfit to perform
his or her military duties; or for which the service member is undergoing medical
treatment, recuperation, or therapy; or is in outpatient status; or is on the
temporary disability retired list, and includes veterans who were members of the
Armed Forces any time during the past five (5) years, who develop an illness or
injury or who aggravated an existing injury during active duty.
c. An employee may take a maximum combined total of 26 weeks of leave for
Military Caregiver Leave and other types of FMLA Leave or Military Qualifying
Exigency Leave in a single 12-month period.
13. Use of Paid Benefits and Personal Holidays
a. The employee may elect, or CKE may require the use of accrued, but unused
vacation time and/or available sick time when an employee is taking an unpaid
FMLA leave for their serious health condition, unless the employee is receiving
disability benefits. The employee and CKE must agree on the use of sick and/or
vacation time to supplement disability benefits.
b. When an employee is taking an unpaid FMLA leave to care for a seriously ill family
member, CKE will require the use of accrued but unused sick time. The employee
may elect to use accrued vacation time or floating holiday time.
c. The employee must exhaust all available vacation time if the FMLA leave is for
bonding with a newborn or adoption of a child or placement of a foster child.
Payment of Sick time is not allowed for this type of leave. The employee may elect
to use accrued floating holiday time.
d. In order to use any accrued paid leave time, employees must comply with CKE's
normal paid leave policies.
14. Continuation of Benefits
a. During an employee’s FMLA LOA, CKE will continue to pay all applicable group
health insurance premiums, which it ordinarily pays on behalf of the employee.
An employee must continue to pay the employee’s portion of the insurance
premium during the FMLA LOA.

February 2020 47
 b. The Total Rewards Department will notify the employee in writing regarding the
amount of the health insurance premiums and how to submit payments.
c. During an employee’s LOA, all insurance benefits in which an employee is
currently enrolled will remain in effect for the duration of the employee’s LOA so
long as he continues to pay his portion of his insurance premiums. CKE may
terminate insurance benefits if an employee pays his insurance premiums more
than thirty (30) days late.
d. CKE shall recoup the cost of the insurance premiums paid on behalf of the
employee during the LOA when the employee returns from his LOA or if the
employee fails to return from his LOA.
15. Returning to Work from FMLA Leave
a. Employees returning to work upon conclusion of a FMLA leave will be returned to
their original position or to an equivalent position with equivalent pay and
benefits, provided such job would have been available had the employee not
taken the leave. Prior to returning to work, where the leave of absence is for the
employee's own serious health condition, the employee must provide CKE with
certification from the attending health care provider indicating the employee is
able to resume his or her work.
b. Failure to make contact with CKE or failure to return to work from FMLA leave on
the designated date may be interpreted as the employee's voluntary resignation.
c. If a leave is extended on a discretionary basis but the employee returns to work
outside of the legally allotted time for such leave, the employee will only be
reinstated if there is an available open position that they are qualified to fill.
d. Exceptions to reinstatement rights may apply if the employee is a "key employee"
as defined by FMLA regulations. CKE will notify an employee if they are considered
a "key employee."
16. FMLA Protections
a. Use of any of the leaves permitted by the FMLA cannot result in the loss of any
employment benefit that accrued prior to the start of an employee's leave.
b. It is unlawful for employers to interfere with, restrain, or deny the exercise of any
right provided under the FMLA or to discharge or discriminate against any person
for opposing any practice made unlawful by either law or for involvement in any
proceeding under or relating to the FMLA.
c. The FMLA does not affect any federal or state law prohibiting discrimination, or
supersede any state or local law or collective bargaining agreement that provides
for greater family or medical leave rights.
d. If employees believe that they have been aggrieved, they may file a complaint with
the U.S. Department of Labor or may bring a private lawsuit against an employer.
FMLA section 109 (29 U.S.C. § 2619) requires that FMLA covered employers post
the text of the FMLA notice (WH 1420). Regulations 29 C.F.R. § 825.300(a) may
require additional disclosures. For additional information: 1-866-4US WAGE (1-
866-487-9243) TTY 1-877-889-5627. WWW.WAGEHOUR.DOL.GOV.

February 2020 48
B. Workers' Compensation Leave/Work Related Injury
1. In advance of the LOA, if possible, a statement from a licensed health care provider giving
the date of onset of illness/injury, a statement that due to the illness/injury the employee
is unable to work and expected date of return is needed.
2. Employees on Workers' Compensation leave may also be considered for FMLA leave to
be determined by the “LOA Administrator”. Where possible, a Workers' Compensation
leave and FMLA leave will run concurrently.
C. Personal Leave of Absence
1. Employees must request Personal Leave in advance and writing on the Personal Leave
Request form. LOA Forms are on the Company intranet.
2. Personal Leaves are granted only for compelling personal reasons and only where such
leave does not impose an unfair hardship on other employees and CKE.
3. If an employee fails to submit information in advance, the leave may not be granted.
4. If eligible, all vacation and personal holiday time must be exhausted while on Personal
LOA; this type of leave does not allow sick time payments.
5. A Personal LOA may not exceed six (6) weeks in a rolling 12-month period.
6. When the employee returns to work, they will only be reinstated if there is an available
position. The employee must qualify for the position and reinstatement is not
guaranteed.
D. Military Leave of Absence
1. Military leaves for active duty require a copy of the employee's military orders and must
be presented to management as early as possible. Employees must submit a Leave of
Absence form with the military orders. If eligible, employees may request vacation time
payments. Employees cannot use Sick time for this type of leave.
2. CKE will pay supplemental pay for the first thirty (30) days of the leave. (This amount
represents the difference between the regular company pay and military pay). After this
time, the leave becomes an unpaid Leave of Absence.
3. Employee benefits will continue until the end of the month when the employee goes on
leave. Employees may request to terminate benefits immediately or continue coverage
during the leave.
4. The employee must notify their supervisor of their intent to return to their employment,
and will be reinstated, upon completion of military service, as required by law, provided
all legal requirements are satisfied and the employee returns to work or applies for
reemployment within the time prescribed by law. CKE will hold the position availability
for five (5) years, or as long as is as mandated by law.
5. Employees going on Military Reserve weekend duty or their 2-week duty are not eligible
to receive supplemental pay while on this type of duty. If eligible, employees may use
vacation.
E. Vice Presidents, Senior Vice Presidents, Executive Vice Presidents and Chief Officers
This group has unlimited sick and vacation time benefits. During an approved leave of
absence related to a serious medical condition, CKE will continue an employee’s

February 2020 49
 compensation for up to 6 weeks. To receive the paid-leave benefit, employees must
comply with the provisions listed in the Leave of Absence Policy. Please call the Total
Rewards Department if you have any questions at 888.253.3115.
F. Other State Mandated Leaves of Absence
1. The Company complies with the Tennessee Maternity Leave Act (“TMLA”), which allows
eligible employees in Tennessee to take up to four (4) months of unpaid leave for
pregnancy, childbirth, nursing and adoption. See T.C.A. Section 4-21-408. Please call the
Total Rewards Department at 888.253.3115 for more information.
2. Other states may also provide for Family and Medical Leave provisions. CKE adheres to
state leave laws as required. It is unlawful for CKE to interfere with, restrain, or deny the
exercise of any right provided by state or federal law. It is also unlawful for CKE to refuse
to hire or to discharge or discriminate against any individual for opposing any practice, or
because of involvement in any proceedings related to family and medical leave. Please
call the Total Rewards Department at 888.253.3115 if you have any questions.

OTHER CALIFORNIA & STATE-SPECIFIC LEAVE ENTITLEMENTS

Military Spouse Leave

(California employees)
California employees with a spouse or registered domestic partner serving in the United States
Armed Forces, National Guard or Reserves, may take up to ten (10) days of unpaid leave when
their spouse or domestic partner is on a leave from deployment during a military conflict. In order
to be eligible for this leave, the employee must be regularly scheduled to work at least 20 hours
per week and have a spouse or domestic partner who is either (1) a member of the United States
Armed Forces deployed during a military conflict to a designated combat theatre or combat zone;
or (2) a member of the National Guard who has been deployed during a period of military conflict;
or (3) a member of the Military Reserves who has been deployed during a period of military
conflict. Eligible employees are required to notify the Company of their intention to take such
leave within 2 days of receiving official notice that the spouse or domestic partner will be on a
qualified leave from deployment and provide documentation certifying that the spouse or
domestic partner will be on leave from deployment during the time the leave is requested.
Employees may use any accrued vacation, if available, during this leave.

Civil Air Patrol Leave

(California Employees)
Ten days of unpaid leave per calendar year will be granted to California employees who are
volunteer members of the California Wing of the civilian auxiliary of the U.S. Air Force (Civil Air
Patrol) responding to an emergency operation mission. Employees must have been employed for
at least 90 days before commencement of the leave. Leave required for any single emergency
mission cannot exceed three days, unless extended by the entity in charge of the operation and

February 2020 50
the extension is approved by the Company. Employees must give as much notice as possible of
the intended dates of leave. The Company may require documentation of employees’ need to
take the leave and may deny leave if certification is not provided. Employees are not required to
exhaust accrued vacation or other available paid time off. Employees who return to work at the
end of the approved period, will be reinstated to the position held when leave began or an
equivalent position with equivalent seniority status, employee benefits, pay, and other terms and
conditions of employment.

Literacy Education Leave

(California employees)
California law requires employers to reasonably assist employees who reveal a problem of
illiteracy and who request employer assistance in enrolling in an adult literacy education
program. Employees who need time off to attend such a program should inform the Human
Resources Department. The Company will make reasonable accommodations for employees by
providing unpaid time off to attend the literacy program, unless to do so would cause an undue
hardship to the Company.

California Paid Sick Time Policy

(California employees)
This policy is intended to comply with California’s Healthy Workplaces, Healthy Families Act. The
Company will continue to comply with any local ordinances that may impose additional sick time
requirements. If any employee has a question about his or her paid sick time entitlement under
state or local law, please contact Human Resources. In the event of any conflict between this
policy and the applicable law, the Company will follow the applicable law. Time off under this
policy may run concurrently with leave taken under other applicable policies as well as under
local, state or federal law, including leave taken pursuant to the California Family Rights Act
(CFRA) or the Family and Medical Leave Act (FMLA). The Company prohibits discrimination or
retaliation against any employee for requesting or using paid sick time.
Eligibility and Accrual
Any employee who works in California for at least 30 days is entitled to paid sick time.
Effective July 1, 2015, or the first day of employment, whichever is later, an eligible employee
will accrue one (1) hour of paid sick time for every thirty (30) hours worked, up to a maximum of
forty-eight (48) hours (“Cap”) of accrued paid sick time.
Accrued but unused paid sick time carries over from year to year, but once an employee has
accrued up to the Cap, no further paid sick time will accrue until the employee uses some of the
accrued paid sick time, dropping the amount of accrued paid sick time below the Cap. Unused,
accrued sick time is not paid out at the time the employee’s employment ends.
Use of Paid Sick Time
Eligible employees may use accrued paid sick time after they have completed ninety (90) days of
employment with the Company. Paid sick time must be used in two hour increments, and must

February 2020 51
be accrued before it can be used. Employees may use up to a maximum of three (3) days or 24
hours annually (which shall be the 12 month period beginning on July 1, 2015, or the employee’s
first day of employment, whichever is later). Note: employees who work less than full time are
still entitled to use up to 24 hours or three of their workdays of accrued paid sick time per year.
For planned absences, the employee should notify his or her supervisor and Human Resources
as soon as the employee is aware of the need to be absent, and generally before the start of his
or her assigned shift. In an emergency, the employee should notify his or her supervisor and/or
Human Resources as soon as practicable. This will allow the Company to plan for coverage.
Written notice is preferred but verbal notice is accepted.
Permitted Purposes
Sick time may be used for the illness or medical appointments (diagnosis, care or treatment of
an existing health condition or preventive care) for the employee or employee’s Family Member,
or for specified purposes for an employee who is a victim of domestic violence, sexual assault, or
stalking. See policy regarding Leave for Victims of Domestic Violence, Sexual Assault or Stalking.
“Family Members” include the employee’s parent, child, spouse or registered domestic partner,
grandparent, grandchild, and sibling. For purposes of this policy, a “child” means a biological,
adopted, or foster child, stepchild, legal ward, or a child to whom the employee stands in loco
parentis (regardless of age or dependency status), and references to parent include a biological,
adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee's
spouse or registered domestic partner, or a person who stood in loco parentis when the
employee was a minor child.
Misrepresentation about the nature of absences or other abuse of paid sick time may result in
corrective action, up to and including termination of employment.
End of Employment
Accrued but unused sick time is not paid out upon separation of employment. Accrued but
unused sick time will not be paid out if the employee’s eligibility otherwise ends for any reason,
including transferring to a Company location not covered by this policy. Eligible employees who
are re-employed with the Company within 12 months of separation will have all accrued but
unused sick time under this policy, if any, reinstated and immediately available for use.

Pregnancy Disability
(California Employees)
If a female California employee is disabled on account of pregnancy, childbirth or a related
medical condition, she may request unpaid pregnancy disability leave (“PDL”). Such leave will be
granted for the period of pregnancy disability, as certified by her health care provider, up to a
maximum of four (4) months per pregnancy (the working days you normally would work in one
third of a year, or 17-1/3 weeks). PDL may be used for additional or more frequent breaks,
prenatal or postnatal medical appointments, severe morning sickness, doctor-ordered bed rest,
gestational diabetes, pregnancy induced hypertension, preeclampsia, recovery from childbirth or
loss or end of pregnancy, and post-partum depression. PDL need not be taken all at once, but can

February 2020 52
be taken on an as needed basis as required by your health care provider, including intermittent
leave or a reduced work schedule, all of which counts against your four-month leave entitlement.
While PDL is treated separately from state family and medical leave (CFRA), it runs concurrently
with leave provided by the Family and Medical Leave Act (FMLA). Therefore, if an employee takes
four (4) months under PDL, and she is eligible for federal FMLA, the first twelve (12) weeks of
leave would run concurrently with the first twelve (12) weeks of PDL. Once the employee’s
pregnancy disability has ceased, or the pregnancy disability leave entitlement is exhausted, and
provided the child has been born, the eligible employee may request to use up to twelve (12)
weeks of CFRA, if otherwise available, to care for and bond with the newborn child. All time off
for family and medical leave purposes will be counted against the employee’s applicable state
and federal family and medical leave entitlements to the fullest extent permitted by law.
Employee Notice: To receive a reasonable accommodation or obtain a transfer, or take PDL, the
employee must provide sufficient notice to Human Resources so that the Company may make
appropriate plans. Sufficient notice means at least 30 days advance notice when the need for
accommodation, transfer or leave is foreseeable (planned medical treatment or appointment, or
expected birth date). For events that are unforeseeable or an emergency, the employee must
notify Human Resources, at least verbally, as soon as the employee is aware of the need for
accommodation, transfer or leave. Failure to comply with the notice rules may result in deferral
of the requested leave until the employee complies with the notice requirement.
For pregnancy disability leave, Human Resources will need to know the date the leave is expected
to begin and the estimated duration of the leave. The employee must also provide a medical
certification of disability to support the need for leave, accommodation or transfer. Failure to
provide the required medical certification to Human Resources in a timely manner (generally
within 15 calendar days of the employer’s request) will result in delay or denial of leave. Before
returning to work from PDL, the employee must provide a medical certification that she is able
to resume her original job duties. All forms can be obtained from Human Resources.
PDL is an unpaid leave. However, during PDL, at the employee’s discretion, the employee may
use accrued vacation, if available, or accrued sick leave, if available. The employee may also be
eligible for state disability insurance (SDI) benefits administered by the California Employment
Development Department.
During a PDL leave, group healthcare benefits will be maintained for up to four (4) months as if
the employee were continuously employed, however, the employee must continue to pay the
employee’s share of premiums for the employee and any covered dependents, if any, during the
leave. An employee who fails to return to work for at least thirty (30) continuous calendar days
at the expiration of the PDL leave must immediately repay the amount paid by the Company in
premiums to maintain the employee’s healthcare coverage during the PDL leave, unless the
failure to return to work is due to: 1) the employee taking additional leave time under the
California Family Rights Act, or 2) the continuation, recurrence or onset of a health condition that
entitles the employee to PDL leave or other circumstances beyond the employee’s control.
If the employee returns to work immediately following the expiration of an approved PDL, she
will generally be reemployed in her former position or a comparable job, as required by law.

February 2020 53
Employees may also be eligible to transfer to a less strenuous or hazardous position or duties
provided certain prerequisites are met. Reasonable accommodations for pregnancy disability
may be requested with the advice of the employee’s health care provider. Taking PDL may impact
certain of your other benefits. Please contact Human Resources for further details.

CFRA - California Supplement to FMLA Policy

(California Employees)
The California Family Rights Act (“CFRA”) provides for family and medical leave similar to that
provided for under the federal FMLA, with certain exceptions and additions. While we do not
provide all details in this policy, we summarize the key differences. Unless otherwise specified in
this policy, the FMLA policy can be your guide to eligibility, leave purposes, notice, certification
and return to work.
1. The CFRA does not provide for leave due to a “qualifying exigency” or “military caregiver”
leave. However, military caregiver leave under FMLA may, in some circumstances, be
designated as a leave to care for a family member with a serious health condition under
CFRA. In addition, qualifying exigency leave under FMLA may, in some circumstances, take
place concurrently with a California military spouse leave.
2. The CFRA does provide leave to eligible employees to care for a registered domestic
partner with a serious health condition. Leave to care for a registered domestic partner is
not provided by, and will not count as, FMLA. For purposes of CFRA, a “registered
domestic partner” is a person with whom the employee resides and with whom the
employee has filed a Declaration of Domestic Partnership with the California Secretary of
State. The requirements and procedures for requesting and taking leave to care for a
domestic partner are basically the same as for leave to care for other family members
with a serious health condition, as stated in the Family and Medical Leave policy. All leave
time taken to care for a domestic partner will be counted against the CFRA entitlement,
to the fullest extent permitted by law.
3. The CFRA does not provide leave due to an employee’s pregnancy disability. However, a
California employee who is disabled by pregnancy, childbirth or related medical
conditions will be provided pregnancy disability leave pursuant to the California Fair
Employment and Housing Act for the period she is disabled by pregnancy, up to a
maximum of 4 months. See Pregnancy Disability leave policy. If the employee is eligible
for FMLA, the first 12 weeks of PDL leave will also be treated concurrently as FMLA, but
not CFRA. Once the employee’s disability due to pregnancy, child birth or related medical
conditions has ceased, or the pregnancy disability leave entitlement is exhausted, and
provided the child has been born, an eligible employee may use up to 12 weeks of CFRA
to care for and bond with the newborn child, if such leave is available.
4. All time off for family and medical leave purposes will be counted against the employee’s
applicable state and federal family and medical leave entitlements to the fullest extent
permitted by law.
5. When CFRA leave is taken to care for a newborn or child newly placed for adoption or
foster care, it may be taken intermittently but must be taken in at least two week
increments, except on two occasions the Company must permit use in increments less

February 2020 54
 than that. Further, the Company may, at its discretion, permit an employee to use CFRA
for baby bonding in additional increments of less than two weeks.
6. Group health benefits will be maintained by the Company for up to twelve (12)
workweeks during CFRA leave, provided the employee pays his or her share of the
premiums, as applicable. When FMLA and CFRA are taken concurrently, this benefit will
be provided concurrently.
7. If you have any questions about, or would like to request, a leave of absence, please
contact Human Resources.

State Disability and Family Temporary Disability Insurance

(FTDI or Paid Family Leave)
(California Employees)
California employees may apply for state disability insurance benefits (“SDI”) with the California
Employment Development Department (“EDD”) when a nonwork-related illness, injury or
pregnancy-related disability prevents them from working and they meet all the eligibility
requirements. As part of the SDI program, Paid Family Leave (“PFL”) gives workers an insurance
benefit that is partial reimbursement of their pay for up to six (6) weeks during any twelve (12)
month period when employees are off work for a covered reason, such as to bond with a new
child (by birth, adoption or foster care) or to care for a seriously ill parent, child, spouse,
registered domestic partner or child of a registered domestic partner, parent-in-law,
grandparent, grandchild, or sibling. The SDI and PFL programs are administered by the EDD.
Employees are responsible for filing their claim and other forms promptly and accurately with
the EDD. A claim form may be obtained from any office of the EDD by telephone, letter or in
person or the employee can request a form from the EDD’s website at www.edd.ca.gov.
Employees should keep in mind that eligibility to receive SDI or PFL benefits from the state does
not guarantee eligibility for a leave of absence or a reduced work schedule. Employees must
follow the procedures in the applicable leave of absence policy to request a leave.
If you plan an extended absence due to your own illness or injury or to care for a family member
or bond with a new child, notify Human Resources so we can provide you with further
information regarding this benefit.

New Parent Leave

(California Employees)
CKE recognizes that employees may need to be absent from work to care for and bond with a
newborn child, or new adopted or foster child (referred to as “New Parent Leave”). California
employees are eligible for New Parent Leave if they meet the following criteria:
● The employee has worked at the Company for at least 12-months and at least 1,250 hours
during the previous 12-month period; and
● The employee works at a worksite in which the Company employs at least 20 employees
within 75 miles.

February 2020 55
 ● Any employee who is eligible for leave under the Family and Medical Leave Act and
California Family Rights Act is not eligible for New Parent Leave.
● Eligible employees in California who are disabled by pregnancy, childbirth or related
medical conditions are entitled to take Pregnancy Disability Leave in addition to the leave
provided by this policy. See Pregnancy Disability leave policy.
Purposes and Duration of Leave
Eligible employees in California are entitled to up to 12 workweeks of New Parent Leave to bond
with a new child within 12 months of the child’s birth, adoption or foster care placement. If the
Company employs both parents and they are both eligible for New Parent Leave, their combined
New Parent Leave time will be limited to a total of 12 workweeks. The Company may, but is not
required to, grant simultaneous leave to both parents.
Pay and Benefits During Leave
New Parent Leave is unpaid. However, employees may use any available paid time off benefits
and may also apply for Paid Family Leave benefits with the California Employment Development
Department. Group health benefits will be maintained during the leave, for up to 12 workweeks,
under the same terms and conditions as would apply if the employee had continued to work
during the leave period. As a result, the employee must continue to pay the employee’s share of
the premium, if any, in a timely manner. If the employee does not return to work at the
expiration of the New Parent Leave and the failure to return is for a reason other than the
continuation, reoccurrence or onset of a serious health condition or other circumstance beyond
the employee’s control, the employee shall be required to repay the premiums the Company
paid for maintaining the employee’s coverage during the leave.
Notice Procedures
If you would like to take New Parent Leave for the birth of your child or to bond with a new
adopted or foster child, you should provide at least 30 days notice to your supervisor or Human
Resources. If 30 days’ notice is not possible because of medical necessity or for other reasons,
you should give as much advance notice to the Company as possible, generally the same day or
next business day after you are aware of the need for leave. For planned leaves, please complete
and submit the Request for Leave form. For unexpected leaves, you may call your supervisor or
Human Resources, and follow up with a Request for Leave form at your earliest opportunity.
Employees are asked to keep Human Resources apprised of contact information (physical address
and phone number where they can be reached during the leave), and must respond promptly to
any inquiries from the Company regarding their status and intent to return to work.
Reemployment Rights
Employees who return to work immediately after the expiration of the New Parent Leave shall
be employed in the same or a comparable position, except as otherwise allowed by law. Your
continued absence from work beyond your approved leave period may be deemed a voluntary
abandonment of your job. If you have questions about New Parent leave that are not addressed
in this policy, please contact Human Resources.

February 2020 56
California Family School Partnership Act
(California employees)
A employee in California who is a “parent” of one or more children of the age to attend grades
K-12 or a licensed child care provider may take off up to 40 hours each calendar year for all of
their children for any of the following school-related activities:
A. To find, enroll or re-enroll his or her child in a school or with a licensed child care
provider, or to participate in activities of the school or licensed child care provider of
his or her child. Reasonable advance notice must be provided to the Company for
planned absences. The hours that may be taken in any one calendar month for this
purpose may not exceed eight (8). Documentation from the school or child care
provider verifying the employee’s participation in child related activities (with specific
date and time) may be required.
B. To address a child care provider or school emergency, provided the employee gives
notice to the Company. A “child care provider or school emergency” means an
employee’s child cannot remain at school or with a child care provider because:
i. the school or child care provider has asked that the child be picked up, or has an
attendance policy, excluding planned holidays, that prohibits the child from attending
or requires that the child be picked up;
ii. Behavioral or discipline problems
iii. Closure or unexpected unavailability of the school or child care provider, excluding
planned holidays.
iv. A natural disaster, including but not limited to fire, earthquake or flood.
For the purpose of this policy, “parent” means parent, guardian, stepparent, foster parent, or
grandparent of or a person who stands in loco parentis (in the place of a parent) to a child.
Employees must give reasonable notice, and may be required to submit proof of participation in
the school activity in writing. The Company may require employees to use their vacation time if
available, or to take time off without pay if no vacation time exists. Exempt employees are not
affected by this provision.

School Leave (Suspension)

(California employees)
If necessary, California employees who are the parent or guardian of a child may attend the
child’s school to discuss the possible suspension. Employees should alert their manager as soon
as possible to make alternative arrangements. Discriminatory action will not be taken against
employees for taking time off for this purpose. Such time off is unpaid.

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Volunteer Firefighters, Emergency Rescue Personnel, and Reserve
Peace Officers
(California and state-specific employees)
Pursuant to applicable state law, the Company allows time off for employees to perform
emergency duty as emergency rescue personnel. “Emergency Rescue Personnel” means any
officer, employee, or member of a fire department, or fire protection or firefighting agency; or
of a sheriff’s department, police department, or a private fire department, or a disaster medical
response entity, whether the individual is a volunteer or paid worker. Employees should inform
their manager that taking time off for emergency duty is a possibility. In the event that it becomes
necessary, employees should inform their manager before doing so, if possible. Time off for such
duty is unpaid. Employees are also eligible for unpaid leave of up to 14 days per calendar year for
required training.

This policy applies unless specific state law dictates otherwise. Please contact Human Resources
if you have any questions regarding this policy or its application in your state.

Time Off for Victims of Sexual Assault, Domestic Violence or Stalking

(California and state-specific employees)
Pursuant to applicable state law, employees who are victims of domestic violence, sexual assault
or stalking are entitled to unpaid time off for the purpose of appearing in court to obtain legal
relief (such as a temporary restraining order, a restraining order or other relief to help ensure the
health, safety or welfare of the victim and/or his/her child); seeking medical attention for injuries
caused by domestic violence, sexual assault or stalking; obtaining services from a domestic
violence shelter, program, or rape crisis center as a result of domestic violence, sexual assault or
stalking; to obtain psychological counseling related to an experience of domestic violence, sexual
assault or stalking or participate in safety planning and to take other actions to increase safety
from future domestic violence, sexual assault or stalking, including temporary or permanent
relocation.
Employees should provide reasonable advance notice of the need to take leave. If advanced
notice is not feasible, within a reasonable time afterward, the employee must provide a
certification to the Company in the form of any of the following: police report indicating the
employee was a victim of domestic violence, sexual assault or stalking, a court order protecting
or separating the employee from the perpetrator of an act of domestic violence, sexual assault
or stalking, or other evidence from the court or prosecutor that the employee has appeared in
court, or documentation from a licensed medical professional, domestic violence counselor, a
sexual assault counselor, a licensed health care provider or a counselor that the employee was
undergoing treatment for physical or mental injuries or abuse resulting from victimization from
an act of domestic violence, sexual assault or stalking.
Victims of domestic violence, sexual assault or stalking may also request reasonable
accommodation for the safety of the employee at work, provided the employee discloses his or
her status as a victim of domestic violence, sexual assault or stalking, and such accommodations

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do not impose an undue hardship on business operations. Such reasonable accommodations may
include a transfer, reassignment, modified schedule, changed work telephone, changed work
station, installed lock, assistance in documenting domestic violence, sexual assault or stalking
that occurs in the workplace, and other safety measures. Certification to support the need for
such accommodation may be requested.
Recertification of the employee/victim’s status may be requested every six months, to the extent
permitted by law. If the employee needs a new or different accommodation, or the
accommodation provided is no longer needed, the employee must notify Human Resources. The
Company will not discharge, discriminate or retaliate against an employee because of the
employees’ status as a victim of domestic violence, sexual assault or stalking. The Company will
maintain the confidentiality of an employee requesting leave under this policy, except as required
by law or as necessary to protect the employee’s safety in the workplace. Affected employees
may use vacation time, sick time, and personal holiday if available.
This policy applies unless specific state law dictates otherwise. Please contact Human Resources
if you have any questions regarding this policy or its application in your state.

Time Off for Victims of Violent Crimes

(California and state-specific employees)
Pursuant to applicable state law, employees who are victims, or related to victims, of a violent
felony (defined in California Penal Code § 667.5 (c) or other applicable state law), a serious felony
(as defined in California Penal Code § 1192.7(c) or other applicable state law), or a felony statute
prohibiting theft or embezzlement, may take unpaid time off from work to attend judicial
proceedings related to the crime. “Related to” means employees’ spouse, child, stepchild,
brother, stepbrother, sister, stepsister, mother, stepmother, father, stepfather, registered
domestic partner, or the child of a registered domestic partner.
Employees must give the Company a copy of the notice in advance of each scheduled proceeding.
If possible, employees must give the Company such notice within a reasonable time of the court
proceeding or government agency setting the hearing, from the district attorney or prosecuting
attorney’s office, or the office of the victim’s advocate. Employees should submit proof of the
crime in the form of a police report, court order, or letter from a doctor, victim advocate, or
counselor. Time off under this policy is unpaid, but employees may use vacation time or other
available paid time off to attend proceedings. The Company shall maintain the confidentiality of
all records and will not discriminate or retaliate against employees for taking time off.
This policy applies unless specific state law dictates otherwise. Please contact Human Resources
if you have any questions regarding this policy or its application in your state.

Bone Marrow or Organ Donation Leave

(California and state-specific employees)
Pursuant to applicable state law, an employee who has been employed at least 90 days and is a
bone marrow donor or an organ donor will be granted paid leave as follows:

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 ● a leave of absence not exceeding 30 business days within a twelve-month period
starting from the first date leave begins to an employee who is an organ donor,
for the purpose of donating his or her organ to another person.
● a leave of absence not exceeding 5 business days within a twelve-month period
starting from the first date leave begins to an employee who is a bone marrow
donor, for the purpose of donating his or her bone marrow to another person.
The twelve-month period is measured from the date the employee's leave begins and consists of
twelve (12) consecutive months. In addition, an eligible employee may take an additional 30 days
of unpaid leave for organ donation.
Approval of any such leave is conditioned on written verification to the Company that the
employee is a bone marrow or organ donor, and that there is a medical necessity for the donation
of the organ or bone marrow.
The period of absence will not be treated as a break in service for the purpose of the right to any
salary adjustments, vacation or seniority. The Company shall maintain coverage under the group
health plan for the duration of leave.
As a condition of the initial receipt of bone marrow or organ donation leave, employees are
required to first use up to 5 days of accrued vacation or sick time, if available, when taking leave
for bone marrow donation, and up to 2 weeks of vacation or sick time, if available, when taking
leave for organ donation. If the employee does not have sufficient accrued paid time off, the
bone marrow or up to 30 days of the organ donation leave will still be paid.
The leave may be taken in one or more periods. Upon returning from this leave, employees will
be returned to the same or an equivalent position, unless otherwise permitted by law. Leave time
taken for the purpose of donating an organ or bone marrow under this policy will be treated
separately from, and not counted against, a California employee’s CFRA entitlement, if any. Leave
time taken for the purpose of donating an organ or bone marrow under this policy will run
concurrently with any employee’s FMLA entitlement, to the maximum extent permitted by law.
This policy applies unless specific state law dictates otherwise. Please contact Human Resources
if you have any questions regarding this policy or its application in your state.

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ADDENDUM FOR EMPLOYEES IN MICHIGAN
Michigan Sick and Safe Time Policy
This policy is intended to comply with Michigan’s Paid Medical Leave Act mandating employer-
provided paid sick time to eligible employees. In the event of any conflict between this policy and
the applicable law, the Company will follow the applicable law.
Eligible Employees. All employees working in the state of Michigan as of March 29, 2019. Earned
sick time under this policy shall begin to accrue on the effective date of the law (March 29, 2019)
or upon commencement of an eligible employee’s employment, whichever is later.
Accrual and Use. Eligible employees will begin accruing paid sick time on the later of March 29,
2019 or their first day of employment. One hour of paid sick time will accrue for every 35 hours
worked. Exempt employees will accrue at a rate based on a 40-hour workweek.
An employee may accrue and use a maximum of 40 hours paid sick time in a year. Leave accrued
under this policy may be carried over into the next year. Employees hired after March 29, 2019
may begin using accrued paid sick time on the 90th calendar day following commencement of
employment. Existing employees may begin using paid sick time as it is accrued. Sick time is paid
at the employee’s regular hourly rate. Paid sick leave may be used in any increment. To the extent
permitted by law, an employee’s use of paid sick time may run concurrently with other leaves
under local, state, or federal law.
Covered Purposes. Accrued paid sick time can be used for the following covered reasons:
(a) The employee’s mental or physical illness, injury, or health condition; medical diagnosis, care,
or treatment of the employee’s mental or physical injury or health condition; or preventative
medical care for the employee.
(b) For the employee’s family member’s mental or physical illness, injury, or health condition;
medical diagnosis, care, or treatment of the employee’s family member’s mental or physical
illness, injury, or health condition; or preventative medical care for a family member of the
employee.
(c) If the employee or the employee’s family member is a victim of domestic violence or sexual
assault, for medical care or psychological or other counseling for physical or psychological injury
or disability; to obtain services from a victim services organization; to relocate due to domestic
violence or sexual assault; to obtain legal services; or to participate in any civil or criminal
proceedings related to or resulting from the domestic violence or sexual assault.
(d) For meetings at a child’s school or place of care related to the child’s health or disability, or
the effects of domestic violence or sexual assault on the child; or
(e) For closure of the employee’s place of business by order of a public official due to a public
health emergency; for an employee’s need to care for a child whose school, or place of care has
been closed by order of a public official due to a public health emergency; or when it has been
determined by the health authorities having jurisdiction or by a health care provider that the
employee’s or employee’s family member’s presence in the community would jeopardize the

February 2020 61
health of others because of the employee’s or family member’s exposure to a communicable
disease, whether or not the employee or family member has actually contracted the
communicable disease.
For purposes of this policy, a covered family member is defined as:
● A biological, adopted or foster child, stepchild, or legal ward, a child of a domestic partner,
or a child to whom the employee stands in loco parentis.
● A biological parent, foster parent, stepparent, or adoptive parent or a legal guardian of
an employee or an employee’s spouse or domestic partner or a person who stood in loco
parentis when the employee was a minor child.
● A person to whom the employee is legally married under the laws of any state or a
domestic partner.
● A grandparent or grandchild
● A biological, foster, or adopted sibling.
● Any other individual related by blood or affinity whose close association with the
employee is the equivalent of a family relationship.
Notice Requirement. If the need for paid sick time is foreseeable, employees shall provide
advance oral or written notification to their immediate supervisor and Human Resources. If the
need for paid sick time is not foreseeable, employees shall provide notice to their immediate
supervisor and Human Resources as soon as practicable. Reasonable documentation may be
required when an employee uses paid sick time for more than three (3) consecutive workdays.
The employee is not required to reveal the nature of any illness or injury, nor specific details in a
case of domestic violence.
Unused Hours. Unused sick time is not paid out upon termination, resignation, retirement, or
other separation of employment. If an eligible employee transfers to a separate Company
location, but remains employed by the Company, the employee retains all paid sick time that was
accrued at the prior location and may use the accrued paid sick time pursuant to this policy. If an
eligible employee separates from employment and is rehired by the Company, the employee
does not retain any unused paid sick time that the employee previously accumulated.
The Company prohibits retaliation against any employee who requests or uses paid sick time,
files a complaint alleging violations of the law, informs any individual about the requirements of
the law, or who participates in an administrative or judicial proceeding regarding an alleged
violation of the law. Retaliation includes any threat, discipline, discharge, demotion, suspension,
or reduction in hours, or any other adverse employment action against an employee for
exercising or attempting to exercise any right guaranteed under the law. Employees have the
right to file a complaint with the Michigan Department of Licensing and Regulatory Affairs.

Michigan Social Security Privacy Policy

Policy. It is the policy of the Company to comply with the requirements of the Michigan Social
Security Number Privacy Act. In the event of any conflict between this policy and the applicable
law, the Company will follow the applicable law. The Company has established rules and
regulations to implement this policy and ensure that: 1) access to information or documents

February 2020 62
containing Social Security Numbers is limited; 2) documents containing Social Security Numbers
are disposed of properly, and 3) this policy is published in the appropriate handbooks, manuals,
or similar documents.
Permitted Uses. The Company may use Social Security for the following reasons:
a. Use Authorized or Required by Law. The Company may use Social Security Numbers if
authorized or required by state or federal statute, rule, or regulation, or by court order or
rule, or in litigation.
b. Primary Account Number. The Company may use an individual’s Social Security Number
as the primary account number for the purposes itemized in section (c) below.
c. Administrative Use in the Ordinary Course of Business. The Company may use Social
Security Numbers:
● to verify the individual’s identity, to identify an individual, or for similar
administrative purposes related to employment;
● to investigate an individual’s claim, credit, criminal or driving history;
● to detect, prevent, or deter identity theft or other crimes;
● to lawfully pursue or enforce legal rights, such as for audit, collection,
investigation or transfer of an employee benefit, or a claim, debt, receivable or
account;
● to provide or administer employee or health insurance or membership benefits,
claims, or retirement programs or to administer the ownership of shares of stock
or other investments.
Restrictions on Use and Disclosure. The Company will comply with the following restrictions on
the uses and disclosures of Social Security Numbers:
a. The Company will not publicly or visibly display more than four (4) sequential digits of a
Social Security number on the property, Company identification badge, or similar item.
b. The Company will not require employees to use or transmit more than four (4) sequential
digits of their Social Security numbers over the internet or on a computer system or
network unless the connection is secure or the transmission is encrypted. Similarly, the
Company will not require employees to use or transmit more than four (4) sequential
digits of their Social Security numbers to gain access to the internet or a computer system
unless the connection is secure, the transmission is encrypted, or a password or other
unique personal identification or authentication device is also required.
c. The Company will not include more than four (4) sequential digits of Social Security
numbers on the outsides of envelopes or packages, and will not mail documents or
information containing more than four (4) sequential digits of Social Security numbers if
those numbers are visible without manipulation from the outside of the envelope or
package. The Company will not include more than four (4) sequential digits of Social
Security numbers in documents or information mailed to individuals for purposes other
than those set forth in Section III (c) unless: (1) the use of Social Security numbers is
permitted or required under state or federal law; (2) the document is sent as part of an
application or enrollment process initiated by the individual; (3) the document is sent to
confirm the accuracy of an individual’s Social Security number for an account, contract,

February 2020 63
 policy or insurance benefit, or to establish, service, amend, confirm the status of, or
terminate the account, contract, policy or benefit; (4) the document or information is
mailed by or at the request of an individual whose Social Security number appears in the
document or that individual’s parent or legal guardian; or (5) the document or
information is mailed in a manner consistent with specific federal regulations. Mailing
means the use of United States postal mail service, or other delivery services that do not
require the recipient to sign for the package.
d. The Company limits access to Social Security numbers to only those employees whose job
duties require that they use this information in connection with Company business. The
employees who have access to Social Security numbers are those who work in the
following areas:
● Human Resources
● Benefits Administration
● Computer and Information Technology
● Executive Management
Documents and electronic files containing Social Security numbers will be maintained
confidentially and will not be disclosed to persons other than those working in the
specified areas. Employees in the designated areas will be provided training on the
specific requirements of the Social Security Number Privacy Act and this policy.
e. The Company will properly dispose of documents containing Social Security numbers by
ensuring that all such materials are shredded prior to discarding. Data stored in electronic
format will be rendered irretrievable before computers are discarded or destroyed.
f. Where a Social Security number is contained within a document subject to disclosure
under the Freedom of Information Act, the Social Security number shall be redacted.
g. The Company, upon collection of a Social Security number, shall inform the individual of:
● the purpose of the collection;
● the intended use of the Social Security number;
● whether the law requires the Social Security number to be provided; and
● the consequences of not providing the number.
Penalties. Any employee who has intentionally violated the Social Security Number Privacy Act
or this policy is subject to disciplinary action up to and including termination.

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