Page 15 - nou Systems handbook Draft Rev13 (2021) (1)

11:59 p.m. the following Saturday. The workday is defined as the 24-hour consecutive
period beginning at 12:00 a.m. each day and ending
24 hours later at 11:59 p.m.

Deductions from Pay/Safe Harbor Exempt Employees
The Company does not make improper deductions from the salaries of exempt
employees and complies with the salary basis requirements of applicable law. Employees
classified as exempt from the overtime pay requirements of applicable law will be notified
of this classification at the time of hire or change in position.

Permitted deductions – nou Systems will make the following lawful deductions from the
pay of exempt employees:
• Deductions that are required by law, e.g., income taxes.
• Deductions for employee benefits when authorized by the employee; at time of
separation, if applicable, an employee will be responsible for benefit premiums for
the entire month of coverage until end of the month of employment.
• 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.
• Unpaid disciplinary suspensions of one or more full days imposed in good faith for
workplace conduct rule infractions (except in California and other states where
such deductions or penalties are not permitted by state law).
• Absences for Family Care and Medical Leave (either full or partial day absences).

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 during the
current work week.

Improper deductions - If an employee classified as exempt believes that an improper
deduction has been taken from their pay, the employee should immediately report the
deduction to Human Resources. 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 deductions.

Paychecks
nou Systems pay periods for all employees is semimonthly on the 15th and the last day
of the month. If the payday falls on a federal holiday or weekend, employees will receive
their paycheck on the preceding workday. Employees may authorize direct deposit of
their check to a bank, credit union, etc. Commissions are calculated and paid out on a
quarterly basis. Quarterly commission payments will be issued on the first regularly
scheduled pay date following commission verification and calculation by the Finance
Team, and in all events no later than the last regularly scheduled pay date of the month
following the quarter in which the commissions were earned.

nSI Employee Handbook 15 Rev. 4 (2021))