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Lyntegar Electric Cooperative,Inc.Employee Handbook &Policy Manual*Revised October , 2015**Replaces any previously published policies.

TABLE OF CONTENTSWELCOME! . 4ABOUT THIS HANDBOOK . 4802.1802.2802.3THE COOPERATIVE MISSION STATEMENT. 4YOUR SUPERVISOR . 4QUESTIONS, SUGGESTIONS, AND CONCERNS . 10COMPLIANCE WITH EMPLOYMENT LAWS . 5PERSONNEL FILES & CHANGE OF PERSONAL STATUS . 6RESIDENCY REQUIREMENT FOR EMPLOYEES . 6USE OF COOPERATIVE VEHICLES . 7CONFLICTS OF INTEREST. 7CO-OP WHISTLEBLOWER . 7RECORDS MANAGEMENT AND RETENTION POLICY. 8SOCIAL MEDIA POLICY . 8AT-WILL EMPLOYMENT . 9DISCHARGE, LAY-OFF OR VOLUNTARY TERMINATION OF EMPLOYMENT. 9EMPLOYMENT POLICIES . 5COMPENSATION POLICIES . 10804.1 CLASSIFICATION OF EMPLOYEES AND INDEPENDENT CONTRACTORS. 10804.2 RECORDING WORK HOURS. 10804.3 OVERTIME COMPENSATION . 11804.4 “CALL-OUT” TIME. 11804.5 “ON-CALL” TIME . 12804.6 EMPLOYEE TRAVEL EXPENSES. 12804.7 REIMBURSABLE EXPENSES FOR EMPLOYEES . 12804.8 ADDITIONAL REIMBURSABLE EXPENSES FOR PROFESSIONAL, TECHNICAL & SUPERVISORYEMPLOYEES. 13804.9 PERFORMANCE REVIEWS . 13TIME-OFF BENEFITS . 13805.1805.2805.3805.4805.5805.6VACATION LEAVE . 13HOLIDAYS . 15SICK LEAVE. 15TIME OFF . 16LEAVE OF ABSENCE - GENERAL . 17LEAVE OF ABSENCE – UNIFORMED SERVICES. .10806.11806.12806.13MEDICAL INSURANCE PLAN . 20HEALTH SAVINGS ACCOUNT. 21DENTAL AND VISION INSURANCE . 21VOLUNTARY LIFE INSURANCE PROGRAM . 22INCOME PROTECTION PLAN (SHORT-TERM AND LONG-TERM DISABILITY INSURANCE) . 22BUSINESS TRAVEL ACCIDENT INSURANCE . 23NRECA GROUP LIFE INSURANCE PLAN FOR EMPLOYEES . 23NRECA SUPPLEMENTAL GROUP LIFE INSURANCE PLAN . 2324-HOUR AD&D INSURANCE – EMPLOYEES . 24EMPLOYEES 401(K) SAVINGS PLAN . 24HOMESTEAD FUNDS . 24NRECA SECTION 125 CAFETERIA PLAN FOR EMPLOYEES . 24LONGEVITY PAY. 25GROUP HEALTH AND OTHER BENEFITS . 202

WORK PERFORMANCE. CE AND WORK UNIFORM FOR EMPLOYEES . 26ATTENDANCE AND PUNCTUALITY. 29REPLACEMENT OF PERSONAL TOOLS. 29VEHICLE MECHANIC TOOLS . 30COMPENSATION FOR INJURIES ON THE JOB . 30REST PERIODS . 30PERSONAL MAIL . 31GENERAL RULES OF CONDUCT AND THE DISCIPLINE PROCESS. 31808.1808.2808.3808.4DRUG-FREE WORKPLACE POLICY . 31NON-SMOKING POLICY . 35NO HARASSMENT. 36NON-FRATERNIZATION POLICY. 38WORKPLACE STANDARDS . 31SAFETY AND SECURITY . ETY POLICY . 38SAFETY RULES AND PROCEDURES . 39FRAUD POLICY . 39PERSONAL BELONGINGS. 40REPORTING ACCIDENTS OR INCIDENTS. 41DRIVING FOR COOPERATIVE BUSINESS . 41DRIVING RECORDS . 41PROOF OF INSURANCE . 41NOTICE OF SUSPENSION OR REVOCATION OF LICENSE OR CANCELLATION OF LIABILITYINSURANCE . 42809.10 WORKPLACE VIOLENCE PREVENTION . 42PRIVACY POLICIES . 43810.1810.2810.3CONFIDENTIALITY . 43PRIVACY NOTICE . 43PRIVACY POLICY FOR EMPLOYEES AND MEMBER INFORMATION. 44811.1ARBITRATION PROCEDURE . 45ARBITRATION . 453

WELCOME!Welcome to Lyntegar Electric Cooperative, Inc.! We extend our congratulations on youremployment and we hope that you will find satisfaction here. As an employee, you are our mostimportant resource. Through your efforts as a member of our team, we aim to provide the highestquality of service to our customers. Your pride in your work and your attitude is the primaryingredient of our success.To answer some of the questions you may have concerning the Cooperative and its policies, wehave written this Handbook. The policies stated in this Handbook are subject to change at thesole discretion of the Cooperative. From time to time, you may receive updated informationconcerning changes in policy.We wish you the best during your employment. Thanks for joining our team! Welcome aboard!ABOUT THIS HANDBOOKAs with any job change, you will experience a period of adjustment. You will want to know whatyou can expect from the Cooperative and what will be expected of you. We have prepared thisHandbook to assist you in finding the answers to many of these questions. However, we do notexpect this Handbook to answer all of your questions. Your supervisor will be your primarysource of information.The Handbook is not, nor should it be considered to be, an agreement or contract ofemployment, express or implied, or a promise of treatment in any particular manner in anygiven situation. This Handbook states only general Cooperative guidelines. TheCooperative may, at any time, in its sole discretion, modify or vary anything stated in thisHandbook - except as required by law, and except for the rights of the parties to terminateemployment at will, which may only be modified by an express written agreement signedby you and the CEO of the Cooperative.This Handbook is a compilation of Cooperative’s existing policies concerning employeesbrought together in a single manual for the convenience of its employees. To the extent ofconflict between this Handbook and the terms of other policies of the Cooperative, theterms of this Handbook shall control.Any violation of the policies and/or procedures set forth in this Handbook may result indisciplinary action, up to and including termination.802.1 THE COOPERATIVE MISSION STATEMENTLyntegar Electric Cooperative, Inc. is a non-profit organization committed to providing ourmembers with reliable and affordable products and services with professionalism and the higheststandards of conduct and ethics. We will strive to conduct our responsibilities with a high degreeof competence and with good citizenship.802.2 YOUR SUPERVISOR4

Your supervisor is responsible for planning the work schedule, ensuring the quality of yourwork, and providing you with whatever assistance you may need. An important part of yoursupervisor’s responsibilities is to answer questions, listen to your concerns, and take actionwhere appropriate. Give your supervisor your cooperation. If your supervisor does not have ananswer to your question, he or she will do his or her best to obtain one for you.802.3 QUESTIONS, SUGGESTIONS, AND CONCERNSIf you have a question, suggestion or concern, you should discuss it with your supervisor.Because you and your supervisor work closely on a daily basis, most concerns can and should beaddressed and resolved at that level. If you cannot resolve the issue with your supervisor, bring itto the attention of the Manager of Human Resources. If the Manager of Human Resources cannotresolve your concern, bring it to the attention of the Chief Executive Officer.EMPLOYMENT POLICIES803.1 COMPLIANCE WITH EMPLOYMENT LAWS803.1.1 Equal Opportunity Employment. The Cooperative is an equal opportunityemployer. We enthusiastically accept our responsibility to make employment decisions withoutregard to race, religious creed, color, age, sex, sexual orientation, gender identity, national origin,religion, marital status, medical condition, disability, military service, pregnancy, or any otherclassification protected by federal, state, and local laws and ordinances. Our management isdedicated to ensuring the fulfillment of this policy with respect to hiring, placement, promotion,transfer, demotion, layoff, termination, recruitment advertising, pay, and other forms ofcompensation, training, and general treatment during employment, including compliance withthe EEOC Pregnancy Discrimination Guidelines issued July 14, 2014 requiring the employer toengage in an interactive process and provide reasonable accommodation to employees who areaffected by pregnancy under such guidelines.803.1.2 Immigration Reform and Control Act of 1986. The Immigration Reform andControl Act of 1986 makes it unlawful for an employer to knowingly hire, recruit, or refer for afee for employment in the United States any individual (citizen or alien) not supplying properdocumentation to verify his eligibility to work in the United States. Additionally, the law makesit unlawful for an employer not to maintain documents in its files establishing the individual'sentitlement to employment. Cooperative will comply fully with this law and will not knowinglyemploy anyone who does not supply the Cooperative with government-required supportdocumentation to verify that the employee is authorized to work in the United States. In theevent it is determined an individual does not have the appropriate documentation, that individualwill be subject to termination.803.1.3 Fair Labor Standards Act. We are firmly committed to comply with all provisionsof the Fair Labor Standards Act, as amended, which establishes minimum rates of pay andovertime pay requirements. We likewise adhere to and support the Equal Pay amendments to thatlaw.803.1.4 Americans with Disabilities Act of 1990. Cooperative is committed to complyingwith the Americans with Disabilities Act of 1990 as amended by the Americans with Disabilities5

Act Amendments Act of 2008. Accordingly, all employment decisions as to applicants foremployment or as to persons having been employed will be made regardless of the existence of adisability. Once it is known that an individual suffers from a disability and that person isotherwise qualified for the job in question, we will make engage in an interactive process withthe employee to seek means available to reasonably accommodate the individual's disability,provided the accommodation does not cause an undue hardship. This determination will be madeon a case-by-case basis, dependent upon the facts involved. No employee or applicant foremployment will be denied employment because of the need for reasonable accommodation.803.1.5 Age Discrimination In Employment Act. The Cooperative is committed tocomplying with the Age discrimination in Employment Act of 1967 and other state and federallaws prohibiting discrimination against employees based upon their age.803.1.6 OSHA. The Cooperative reviews applicable safety regulations that are intendedto provide all employees with a safe place to work. Management endeavors to comply with therequirements of the Occupational Safety and Health Act. In this regard, each employee isrequested to assist management in its obligation to provide you with a safe place to work.THINK SAFETY.803.1.7 Right-to-Work Law. The Cooperative resolves to respect the Right-to-Work lawsof Texas, our home state, and will car

Lyntegar Electric Cooperative, Inc. Employee Handbook & Policy Manual *Revised Octobe