Employee Classifications Policy

This handbook applies to all employees. Employees are hired on either a full-time or part-time basis, and may be categorized as follows:

1. Probationary: the first 90 days of employment are considered an introductory period during which time the Company evaluates you to see if you are suited to the job. Benefits, where applicable, are accrued and may not be paid during this period.

2. Full-Time Regular Employees: an employee who has completed his or her probationary period, who regularly works at least 35 hours per week, and is eligible for all benefits set forth in this handbook. Benefits will, in some cases, be determined according to the amount of earnings and hours worked.

In addition, full time employees are further classified as either non-exempt (hourly) or exempt (salary). This is required by law to identify those employees who qualify to be paid at an overtime rate for hours they work in excess of 40 hours in a work week. Only non-exempt employees are entitled to receive overtime pay.

Non-exempt employees will include laborers, office assistants, accounting, warehouse, forklift, managers and others as defined by Fair Labor Standards Act regulations.

Exempt employees will receive salary pay for the work week cycle. To qualify as exempt, an employee must currently be paid at least $684 per week ($35,568 per year) on a salary basis and meet the applicable duties test under Fair Labor Standards Act regulations (some states require a higher minimum salary). Their salary will be the same each pay unless they receive a bonus, commission or have used vacation or personal time in excess of their allocation. In these cases, a salary may be reduced only in full-day increments to the extent of the overused non-worked days; deductions for partial-day absences are not permitted and could jeopardize the employee's exempt status. Exempt employees will be managers, administration, engineering, accounting, finance, marketing and others who qualify under Fair Labor Standards Act regulations.

3. Part-Time Regular Employees With Benefits: an employee who has completed his or her probationary period, who regularly works at least 20 hours per week and is entitled only to vacation, sick days and statutory benefits on a pro-rata basis.

4. Part-Time Employees Without Benefits: an employee who has completed his or her probationary period, who works less than 20 hours per week and is not entitled to the privileges and benefits set forth in this handbook, except as specifically provided.