Page 21 - 2019 - erbe employee handbook.draft national

Award Taxation
Some awards, depending on their value, may be considered taxable income by the IRS. These items may include but not limited to: cash, gift cards and accompanying guest’s travel expenses. The value of such items will be included on the employee’s Annual W-2 Earnings Statement. Any personal income tax liability generated by such items is the responsibility of the employee.
Policies Subject to Change
All compensation policies and incentive programs are subject to change at any time without prior notice.
3-10. Severance Policy
In the event of an involuntary termination due to reduction in force, downsizing or job elimination, Erbe provides a severance benefit, for eligible employees, in the form of salary continuation.
This benefit does not apply to terminations for cause as defined by the company’s workplace conduct guidelines, inability to perform the duties of a particular position or poor performance. The amount of the severance benefit is based upon length of service with Erbe. This policy applies to all exempt and non-exempt, full-time and part-time employees. Part-time employees will receive severance pay on a pro-rated basis in accordance with their scheduled hours.
Severance is calculated on base pay and commissions only. The benefit will be issued as a salary continuation benefit in accordance with company payroll guidelines, subject to normal withholding. All employees who receive severance payments are required to sign a separation agreement and release.
Accrued but unused vacation will be paid out to the employee. Vacation will not accrue beyond the effective date of termination (last day worked). Any commissions earned to the date of termination will be paid in accordance with sales commission policy and guidelines. While on severance pay the employee will receive COBRA notification for medical, dental, vision, Health Savings Account, and Flexible Spending Account coverages. During the severance period Erbe will continue to pay all of the premiums for the employee and the employee is required to continue paying their portion of health benefits that were in place as of last day worked. Upon conclusion of severance pay, employees may elect to continue COBRA coverage at their expense.
21 | Compensation & Pay Practices Confidential/Internal Use Only