HANDBOOK DISCLAIMER

We prepared this handbook to help employees find the answers to many questions that they may have regarding their employment with Institute of Epidermal Cell Therapy. Please take the necessary time to read it.

We do not expect this handbook to answer all questions. Supervisors and Human Resources also serve as a major source of information.

Neither this handbook nor any other verbal or written communication by a management representative is, nor should it be considered to be, an agreement, contract of employment, express or implied, or a promise of treatment in any particular manner in any given situation, nor does it confer any contractual rights whatsoever. Institute of Epidermal Cell Therapy adheres to the policy of employment at will, which permits the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy or the employee to end the employment relationship at any time, for any reason, with or without cause or notice.

No School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy representative other than the President may modify at-will status and/or provide any special arrangement concerning terms or conditions of employment in an individual case or generally and any such modification must be in a signed writing.

Many matters covered by this handbook, such as benefit plan descriptions, are also described in separate School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy documents. These School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy documents are always controlling over any statement made in this handbook or by any member of management. This handbook states only general School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy guidelines. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may, at any time, in its sole discretion, modify or vary from anything stated in this handbook, with or without notice, except for the rights of the parties to end employment at will, which may only be modified by an express written agreement signed by the employee and the President.

This handbook is subject to the terms of any applicable collective bargaining agreement. This handbook supersedes all prior handbooks.

Table of Contents

Section 1 - Governing Principles of Employment

1-1. Introduction & Mission

For employees who are commencing employment with Institute of Epidermal Cell Therapy ("Institute of Epidermal Cell Therapy" or the "School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy"), on behalf of Institute of Epidermal Cell Therapy, let me extend a warm and sincere welcome.

For employees who have been with us, thanks for your past and continued service to our mission. Our mission statement states, "Our mission is to prepare future estheticians in three essential areas: prepare the student for industry required written/practical examination, prepare the student for practical/hands-on techniques focusing on public-safety, and provide the student with fundamental knowledge and practicing techniques in the industry of Esthetics related health, wellness, and medical fields. Our school is founded on the belief that professionalism, integrity, and competence are integral to the student's education. Once obtained, these qualities prepare students for the rapidly growing demand for professionals in the fields of health, wellness, and medicine. We believe education is the key to your journey toward healthy skin care."

I extend my personal best wishes for success and happiness here at Institute of Epidermal Cell Therapy. We understand that it is our employees who provide the services that our customers rely upon, and who will enable us to create new opportunities in the years to come.

L. Saphonia Gee, President & CEO

1-2. Equal Employment Opportunity

Institute of Epidermal Cell Therapy is an Equal Opportunity Employer that does not discriminate on the basis of actual or perceived race, creed, color, religion, alienage or national origin, ancestry, citizenship status, age, disability or handicap, sex, marital status, veteran status, sexual orientation, genetic information, arrest record, or any other characteristic protected by applicable federal, state or local laws. Our management team is dedicated to this policy with respect to recruitment, hiring, placement, promotion, transfer, training, compensation, benefits, employee activities and general treatment during employment.

Accommodations for Individuals with Disabilities: The School of Esthetics & Research Inc. / Institute of Epidermal Cell Therapy will make reasonable accommodations, as required by law, for the known physical or mental disabilities of an otherwise qualified applicant or employee, unless doing so would impose an undue hardship upon the School of Esthetics & Research Inc. / Institute of Epidermal Cell Therapy's business operations. An accommodation is not reasonable if, even with the accommodation, the employee is unable to perform essential job duties in a manner that would not endanger the employee's health or safety of the employee or others.

Any applicant or employee who believes they require an accommodation in order to perform the essential functions of the job should contact the President to request such an accommodation. Employees should specify what accommodation they need to perform the job and submit supporting medical documentation explaining the underlying physical or mental disability and the basis for the requested accommodation. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy then will review and analyze the request, including engaging in an interactive process with the employee or applicant, to identify if such an accommodation can be made. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will evaluate requested accommodations, and as appropriate identify other possible accommodations, if any. The employee will be notified of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's decision regarding the request within a reasonable period. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy treats all medical information submitted as part of the accommodation process in a confidential manner.

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will endeavor to accommodate the sincere religious beliefs of its employees to the extent such accommodation does not pose an undue hardship on the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's operations. If you wish to request such an accommodation, please speak to the President. Any employees with questions or concerns about equal employment opportunities in the workplace are encouraged to bring these issues to the attention of the President. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will not allow any form of retaliation against individuals who raise issues of equal employment opportunity. If an employee feels he or she has been subjected to any such retaliation, he or she should bring it to the attention of the President. To ensure our workplace is free of artificial barriers, violation of this policy including any improper retaliatory conduct will lead to discipline, up to and including discharge. All employees must cooperate with all investigations.

1-3. Non-Harassment

It is Institute of Epidermal Cell Therapy's policy to prohibit intentional and unintentional harassment of any individual by another person on the basis of any protected classification including, but not limited to, race, color, national origin, disability, religion, marital status, veteran status, sexual orientation or age. The purpose of this policy is not to regulate our employees' personal morality, but to ensure that in the workplace, no one harasses another individual.

If an employee feels that he or she has been subjected to conduct which violates this policy, he or she should immediately report the matter to Director of Education. If the employee is unable for any reason to contact this person, or if the employee has not received a satisfactory response within five (5) business days after reporting any incident of what the employee perceives to be harassment, the employee should contact the President. If the person toward whom the complaint is directed is one of the individuals indicated above, the employee should contact any higher-level manager in his or her reporting hierarchy. Every report of perceived harassment will be fully investigated and corrective action will be taken where appropriate. All complaints will be kept confidential to the extent possible, but confidentiality cannot be guaranteed. In addition, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will not allow any form of retaliation against individuals who report unwelcome conduct to management or who cooperate in the investigations of such reports in accordance with this policy. If an employee feels he or she has been subjected to any such retaliation, he or she should report it in the same manner in which the employee would report a claim of perceived harassment under this policy. Violation of this policy including any improper retaliatory conduct will result in disciplinary action, up to and including discharge. All employees must cooperate with all investigations.

1-4. Sexual Harassment

It is Institute of Epidermal Cell Therapy's policy to prohibit harassment of any employee by any Supervisor, employee, customer or vendor on the basis of sex or gender. The purpose of this policy is not to regulate personal morality within the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. It is to ensure that at the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy all employees are free from sexual harassment. While it is not easy to define precisely what types of conduct could constitute sexual harassment, examples of prohibited behavior include unwelcome sexual advances, requests for sexual favors, obscene gestures, displaying sexually graphic magazines, calendars or posters, sending sexually explicit e-mails, text messages and other verbal or physical conduct of a sexual nature, such as uninvited touching of a sexual nature or sexually related comments. Depending upon the circumstances, improper conduct also can include sexual joking, vulgar or offensive conversation or jokes, commenting about an employee's physical appearance, conversation about your own or someone else's sex life, or teasing or other conduct directed toward a person because of his or her gender which is sufficiently severe or pervasive to create an unprofessional and hostile working environment.

If the employee feels that he or she has been subjected to conduct which violates this policy, the employee should immediately report the matter to Director of Education. If unable for any reason to contact this person, or if the employee has not received a satisfactory response within five (5) business days after reporting any incident of perceived harassment, the employee should contact the President. If the person toward whom the complaint is directed is one of the individuals indicated above, the employee should contact any higher-level manager in his or her reporting hierarchy. Every report of perceived harassment will be fully investigated and corrective action will be taken where appropriate. All complaints will be kept confidential to the extent possible, but confidentiality cannot be guaranteed. In addition, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will not allow any form of retaliation against individuals who report unwelcome conduct to management or who cooperate in the investigations of such reports in accordance with this policy. If an employee feels that he or she has been subjected to any such retaliation, the employee should report it in the same manner in which a claim of perceived harassment would be reported under this policy. Violation of this policy including any improper retaliatory conduct will result in disciplinary action, up to and including discharge. All employees must cooperate with all investigations.

1-5. Drug-Free and Alcohol-Free Workplace

To help ensure a safe, healthy and productive work environment for our employees and others, to protect School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property, and to ensure efficient operations, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy has adopted a policy of maintaining a workplace free of drugs and alcohol. This policy applies to all employees and other individuals who perform work for the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

The unlawful or unauthorized use, abuse, solicitation, theft, possession, transfer, purchase, sale or distribution of controlled substances, drug paraphernalia or alcohol by an individual anywhere on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises, while on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy business (whether or not on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises) or while representing the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, is strictly prohibited. Employees and other individuals who work for the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy also are prohibited from reporting to work or working while they are using or under the influence of alcohol or any controlled substances, which may impact an employee's ability to perform his or her job or otherwise pose safety concerns, except when the use is pursuant to a licensed medical practitioner's instructions and the licensed medical practitioner authorized the employee or individual to report to work. However, this does not extend any right to report to work under the influence of medical marijuana or to use medical marijuana as a defense to a positive drug test, to the extent an employee is subject to any drug testing requirement, to the extent permitted by and in accordance with applicable law. This restriction does not apply to responsible drinking of alcohol at business meetings and related social outings.

Violation of this policy will result in disciplinary action, up to and including discharge. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy maintains a policy of non-discrimination and will endeavor to make reasonable accommodations to assist individuals recovering from substance and alcohol dependencies, and those who have a medical history which reflects treatment for substance abuse conditions. However, employees may not request an accommodation to avoid discipline for a policy violation. We encourage employees to seek assistance before their substance abuse or alcohol misuse renders them unable to perform the essential functions of their jobs, or jeopardizes the health and safety of any School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy employee, including themselves. Employees must notify the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy within five calendar days if they are convicted of a criminal drug violation in the workplace. Within ten (10) days of such notification or other actual notice, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will advise the contracting agency of such conviction.

All employees are hereby advised that full compliance with the foregoing policy shall be a condition of employment at the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. Any employee who violates the foregoing drug-free workplace policy described above shall be subject to discipline up to and including immediate discharge.

In the discretion of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, any employee who violates the drug-free workplace policy may be required, in connection with or in lieu of disciplinary sanctions, to participate to the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's satisfaction in an approved drug assistance or rehabilitation program. In order to maintain a drug-free workplace, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy has established a drug-free awareness program to educate employees on the dangers of drug abuse in the workplace, our drug-free workplace policy, the availability of any drug-free counseling, rehabilitation and employee assistance programs and the penalties that may be imposed for violations of our drug-free workplace policy. (Such education may include: (1) distribution of our drug-free workplace policy at the employment interview; (2) a discussion of our policy at the new employee orientation session; (3) distribution of a list of approved drug assistance agencies, organizations and clinics; (4) distribution of published educational materials regarding the dangers of drug abuse; (5) reorientation of all involved employees in cases in which a drug-related accident or incident occurs; (6) inclusion of the policy in employee handbooks and any other personnel policy publications; (7) lectures or training by local drug abuse assistance experts; (8) discussion by the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's safety experts on the hazards associated with drug abuse; and (9) video tape presentations on the hazards of drug abuse.)

1-6. Workplace Violence

Institute of Epidermal Cell Therapy is strongly committed to providing a safe workplace. The purpose of this policy is to minimize the risk of personal injury to employees and damage to School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy and personal property. We do not expect employees to become experts in psychology or to physically subdue a threatening or violent individual. Indeed, we specifically discourage employees from engaging in any physical confrontation with a violent or potentially violent individual. However, we do expect and encourage employees to exercise reasonable judgment in identifying potentially dangerous situations.

Experts in the mental health profession state that prior to engaging in acts of violence, troubled individuals often exhibit one or more of the following behaviors or signs: over-resentment, anger and hostility; extreme agitation; making ominous threats such as bad things will happen to a particular person, or a catastrophic event will occur; sudden and significant decline in work performance; irresponsible, irrational, intimidating, aggressive or otherwise inappropriate behavior; reacting to questions with an antagonistic or overtly negative attitude; discussing weapons and their use, and/or brandishing weapons in the workplace; overreacting or reacting harshly to changes in School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy policies and procedures; personality conflicts with co-workers; obsession or preoccupation with a co-worker or Supervisor; attempts to sabotage the work or equipment of a co-worker; blaming others for mistakes and circumstances; or demonstrating a propensity to behave and react irrationally.

Prohibited Conduct

Threats, threatening language or any other acts of aggression or violence made toward or by any School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy employee WILL NOT BE TOLERATED. For purposes of this policy, a threat includes any verbal or physical harassment or abuse, any attempt at intimidating or instilling fear in others, menacing gestures, flashing of weapons, stalking or any other hostile, aggressive, injurious or destructive action undertaken for the purpose of domination or intimidation. To the extent permitted by law, employees and visitors are prohibited from carrying weapons onto School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises.

Procedures for Reporting a Threat

All potentially dangerous situations, including threats by co-workers, should be reported immediately to any member of management with whom the employee feels comfortable. Reports of threats may be maintained confidential to the extent maintaining confidentiality does not impede our ability to investigate and respond to the complaints. All threats will be promptly investigated. All employees must cooperate with all investigations. No employee will be subjected to retaliation, intimidation or disciplinary action as a result of reporting a threat in good faith under this policy. If the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy determines, after an appropriate good faith investigation, that someone has violated this policy, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will take swift and appropriate corrective action. If an employee is the recipient of a threat made by an outside party, that employee should follow the steps detailed in this section. It is important for us to be aware of any potential danger in our offices. Indeed, we want to take effective measures to protect everyone from the threat of a violent act by an employee or by anyone else.

1-7. Our Goals

Our goals are as follows:

• To continue providing the best dermal training in the industry
• To provide our students with an experience that will prepare them for success in the various industries related to the art and science of epidermal related careers
• To ensure that all students regardless of race, sexual orientation, gender, age, disability are provided with the same opportunities for success
• To ensure our students are prepared to take and pass the State (any) exam for Estheticians
• To continuously review and improve the quality of the curriculum
• To review and improve the quality of the student experience
• To provide the student with theory and practice of epidermal cell training at an affordable price
• To ensure each graduate of our programs are prepared to work in this industry at the completion of the program
• To enrollment at least one student every twenty-five weeks until the class session is full To maintain a financially stable school

We measure our success by number of graduates, successful completion of the program and State board exams base of the national and state passing rate and scores.

• Prepare for State Board Practical Examination Theory
  Prepare students for the licensing through Virginia State Board of Barbers Cosmetology for Esthetics and Master Esthetics theory examinations (e.g. SBR Protocol, Weekly protocol, Review notes, vocabulary test, skill notes, video summary, current Event
• Prepare for State Board Practical Examination
  Prepare students for the licensing through Virginia State Board of Barbers Cosmetology for Esthetics and Master practical examinations (e.g. .Mock board, SBR Protocol, Weekly protocol, Review notes, skill notes, video summary

Esthetics practicing Esthetician

• Encourage personal and professional growth (e.g.CEU training, Current -Event & Summaries presentation/discussion)
• Create hands on environment in which to learn and develop communication and business skill (e.g. skills notes, video summary, summaries)
• Provide comprehensive training and prepare qualified graduates qualified to work in the salon, spa, wellness, medical, and retail industries. (e.g. Weekly Protocol, Consultation Assessments - Client Health, Girlfriend Guide, Dream Spa)

1-8. Our Values

The School of Esthetics and Research /Institute of Epidermal Cell Therapy believes that professionalism, integrity, and academic competence are integral to the student's successful education. Once obtained, these qualities prepare students for the rapidly growing demand for professionals in the fields of health, wellness and medicine. These values are instilled in everything that we do and are highlighted in these specific tenets:

1. Provide students with a safe and supervised learning environment to promote their health and well-being as well as that of their client
2. Provide a thorough working knowledge of the theory and practice of Esthetics and dermal science in an academic/practical setting
3. Prepare students to become qualified Estheticians and epidermal therapist
4. Develop students professional work habit
5. Help students understand their scope of practice and to help them develop appropriate referral skill
6. Model a professional attitude with a commitment to ethical practices toward clients and fellow practitioner
7. To imbue students with coursework that emphasizes critical thinking skills.

1-9. Facility

The Institute of Epidermal Cell Therapy is located at 445 N. Battlefield Blvd. Suite O, Chesapeake, Virginia 23320. The building contains 2 classrooms/clinics for its instruction purposes. The clinics include facial beds and facial electronic equipment to augment the practicum portion of the curriculum. The building maintains the necessary fire safety exit signs and extinguishers. The facility is maintained and managed by the Sheehan Group, Inc. They are responsible for all property management maintenance (ventilation, heat, electricity, plumbing and general building maintenance). The building is leased from The Sheehan Group, Inc. and is under contract with regard to stipulations of terms and lease, which have been executed by The Institute of Epidermal Cell Therapy and The Sheehan Group, Inc.

This location designated for all students as a requirement by Department of professional Regulations for State of Virginia Board of Barber and Cosmetology. All examination and procedures will be completed and taking in the traditional brick and mortar classroom. . This site is set up and designed in a manner that reflects conditions in a typical spa and in a clinical setting. Student activities are designed in such a manner that will provide them with as close as practical the settings they most likely will or have worked in.

1-10. Owners, Administrative Staff & Faculty

Institute of Epidermal Cell Therapy (IECT) is wholly owned and operated by the School of Esthetics and Research, Inc. a Virginia corporation. The principal owner is Mr. Charles Gee Jr.(100%)

The Staff

Mr. Charles Gee Jr., Owner

Ms. L. Saphonia Gee, President and CEO/ VP of HR

Ms. Debbie Waters, Director of Education

The Faculty Instructors

Ms. L. Saphonia Gee Esthetic Certificate Programs

Ms. Debbie Waters Esthetic Certificate Program

Department of Professional and Occupational Regulation requires all school complete Change of Responsible Management document which clearly delineates the relationships among staff. All human Resource questions, concerns, and/or issues are reported to President/ VP of HR & Direct Supervisor

Students Reports To: Instructor

Instructors Reports To: Director of Education

Director of Education Reports To: President

President Reports To: Owner

All non -exempt report to President/ VP of HR & Direct Supervisor

Section 2 - Operational Policies

2-1. Employee Classifications

For purposes of this handbook, all employees fall within one of the classifications below.

1. Full-Time Employees - Employees who regularly work at least 35 hours per week who were not hired on a short-term basis. We use the definition from The Code of Virginia which defines a permanent, full time employee as one that works a minimum of 35 hours per week or 1,680 hours a year. The law specifies that the employee must work 35 hours a week during the employer's business operations or for the portion of the year that the employee was hired on to work
2. Part-Time Employees - Employees who regularly work fewer than 35 hours per week who were not hired on a short-term basis. A part-time employee would be classified as anyone working less than the 35 hours as defined in the Code of Virginia and less than 1,680 hours a year.
3. Contractual/Short-Term Employees - Employees who were hired for a specific short-term project, or on a short-term freelance, per diem or temporary basis. Short-Term Employees generally are not eligible for School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy benefits, but are eligible to receive statutory benefits. The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. However, Virginia law does not allow seasonal, temporary or contract employees to be classified as full-time employees, even if they meet the hour requirements.

In addition to the above classifications, employees are categorized as either "exempt" or "nonexempt" for purposes of federal and state wage and hour laws. Employees classified as exempt do not receive overtime pay; they generally receive the same weekly salary regardless of hours worked. Such salary may be paid less frequently than weekly. The employee will be informed of these classifications upon hire and informed of any subsequent changes to the classifications.

2-2. Your Employment Records

In order to obtain their position, employees provided us with personal information, such as address and telephone number. This information is contained in the employee's personnel

The employee should keep his or her personnel file up to date by informing President/VP of HR of any changes. The employee also should inform President/VP of HR of any specialized training or skills he or she may acquire in the future, as well as any changes to any required visas. Unreported changes of address, marital status, etc. can affect withholding tax and benefit coverage. Further, an "out of date" emergency contact or an inability to reach the employee in a crisis could cause a severe health or safety risk or other significant problem.

Employee's personnel and payroll Records file are digitally location at (https://payroll.wellsfargo.com/WebClient/Personnel/Profile/EditPersonalInformation.aspx?pId=1350928).

2-3. Working Hours and Schedule

Institute of Epidermal Cell Therapy normally is open for business from 7:00 am to 9:30 pm, Monday through Sunday. The employee will be assigned a work schedule and will be expected to begin and end work according to the schedule. To accommodate the needs of our business, at some point we may need to change individual work schedules on either a short-term or long-term basis. Employees will be provided meal and rest periods as required by law. A Supervisor will provide further details.

Time Clock Process

Instructors and Instructor administrative support staff schedule will be reviewed and revision base on class/program schedules hours.

- Lunches: 30 minutes expected; if no-punch, auto deduct 30. If punch, force 30. If more than 45, alert.

Rounding: Quarter hour rounding (see table example)

Quarter Hour Rounding

Punch Round

01-07 :00

08-22 :15

23-30 :30

30-37 :30

38-45 :45

46-52 :45

53-00 :00

2-4. Timekeeping Procedures

Employees must record their actual time worked for payroll and benefit purposes. Non-exempt employees must record the time work begins and ends, as well as the beginning and ending time of any departure from work for any non-work-related reason, on forms as prescribed by management.

Altering, falsifying or tampering with time records is prohibited and subjects the employee to discipline, up to and including discharge.

Exempt employees are required to record their daily work attendance and report full days of absence from work for reasons such as leaves of absence, sick leave or personal business.

Non-exempt employees may not start work until their scheduled starting time.

It is the employee's responsibility to sign time records to certify the accuracy of all time recorded. Any errors in the time record should be reported immediately to a Supervisor, who will attempt to correct legitimate errors.

Employees are responsible for logging in and out each day through the IECT Work schedule log . We also require all employees to log in and out for lunch. If employees fail to log In and out for lunch we will to log them out for 30 minutes. Only time logged in and out of the system will be paid.

Time Clock Process

- Lunches: 30 minutes expected; if no-punch, auto deduct 30. If punch, force 30. If more than 45, alert.

Rounding: Quarter hour rounding (see table example)

Quarter Hour Rounding

Punch Round

01-07 :00

08-22 :15

23-30 :30

30-37 :30

38-45 :45

46-52 :45

53-00 :00

Any problems encountered with payroll timekeeping procedure should be reported to the President/VP of HR.

2-5. Overtime

Like most successful companies, we experience periods of extremely high activity. During these busy periods, additional work is required from all of us. Supervisors are responsible for monitoring business activity and requesting overtime work if it is necessary. Effort will be made to provide employees with adequate advance notice in such situations.

Any non-exempt employee who works overtime will be compensated at the rate of one and one-half times (1.5) his/her normal hourly wage for all time worked in excess of forty (40) hours each week, unless otherwise required by law.

Employees may work overtime only with prior management authorization.

2-6. Travel Time for Non-Exempt Employees

Overnight, Out-of-Town Trips

Non-exempt employees will be compensated for time spent traveling (except for meal periods) during their normal working hours, on days they are scheduled to work and on unscheduled work days (such as weekends). Non-exempt employees also will be paid for any time spent performing job duties during otherwise non-compensable travel time; however, such work should be limited absent advance management authorization.

Out-of-Town Trips for One Day

Non-exempt employees who travel out of town for a one-day assignment will be paid for all travel time, except for, among other things: (i) time spent traveling between the employee's home and the local railroad, bus or plane terminal; and (ii) meal periods.

Local Travel

Non-exempt employees will be compensated for time spent traveling from one job site to another job site during a workday. The trip home, however, is non-compensable when an employee goes directly home from his/her final job site, unless it is much longer than his/her regular commute home from the regular worksite. In such case, the portion of the trip home in excess of the regular commute is compensable.

Commuting Time

Under the Portal to Portal Act, travel from home to work and from work to home is generally noncompensable. However, if a non-exempt employee regularly reports to a worksite near his/her home, but is required to report to a worksite farther away than the regular worksite, the additional time spent traveling is compensable.

If compensable travel time results in more than 40 hours worked by a non-exempt employee, the employee will be compensated at an overtime rate of one and one-half times the regular rate.

To the extent that applicable state law provides greater benefits, state law applies.

2-7. Safe Harbor Policy for Exempt Employees

It is Institute of Epidermal Cell Therapy's policy and practice to accurately compensate employees and to do so in compliance with all applicable state and federal laws. To ensure proper payment and that no improper deductions are made, employees must review pay stubs promptly to identify and report all errors.

Those classified as exempt salaried employees will receive a salary which is intended to compensate them for all hours they may work for Institute of Epidermal Cell Therapy. This salary will be established at the time of hire or classification as an exempt employee. While it may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work performed.

Under federal and state law, salary is subject to certain deductions. For example, unless state law requires otherwise, salary can be reduced for the following reasons:

• full-day absences for personal reasons;
• full-day absences for sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing wage replacement benefits for such absences (deductions also may be made for the exempt employee's full-day absences due to sickness or disability before the employee has qualified for the plan, policy or practice or after the employee has exhausted the leave allowance under the plan);
• full-day disciplinary suspensions for infractions of our written policies and procedures;
• Family and Medical Leave Act absences (either full- or partial-day absences);
• to offset amounts received as payment from the court for jury and witness fees or from the military as military pay;
• the first or last week of employment in the event the employee works less than a full week;
• and any full work week in which the employee does not perform any work.

Salary may also be reduced for certain types of deductions such as a portion of health, dental or life insurance premiums; state, federal or local taxes; social security; or voluntary contributions to a 401(k) or pension plan.

In any work week in which the employee performed any work, salary will not be reduced for any of the following reasons:

• partial day absences for personal reasons, sickness or disability;
• an absence because the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy has decided to close a facility on a scheduled work day;
• absences for jury duty, attendance as a witness, or military leave in any week in which the employee performed any work (subject to any offsets as set forth above); and
• any other deductions prohibited by state or federal law.

However, unless state law provides otherwise, deductions may be made to accrued leave for full- or partial-day absences for personal reasons, sickness or disability.

If employees believe they have been subject to any improper deductions, they should immediately report the matter to a supervisor. If the supervisor is unavailable or if the employee believes it would be inappropriate to contact that person (or if the employee has not received a prompt and fully acceptable reply), they should immediately contact President/VP of HR or any other supervisor in Institute of Epidermal Cell Therapy with whom the employee feels comfortable.

2-8. Your Paycheck

The employee will be paid bi-weekly for all the time worked during the past pay period.

Payroll stubs itemize deductions made from gross earnings. By law, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy is required to make deductions for Social Security, federal income tax and any other appropriate taxes. These required deductions also may include any court-ordered garnishments. Payroll stubs also will differentiate between regular pay received and overtime pay received.

If there is an error in an employee's pay, the employee should bring the matter to the attention of President/VP of HR immediately so the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy can resolve the matter quickly and amicably.

Paychecks will be given only to the employee, unless he or she requests that they be mailed, or authorize in writing another person to accept the check.

2-9. Direct Deposit

Institute of Epidermal Cell Therapy strongly encourages employees to use direct deposit. Authorization forms are available from President/VP of HR.

Wells Fargo direct deposit information: https://www.wellsfargo.com/help/direct-deposit/

Wells Fargo direct deposit form: https://www08.wellsfargomedia.com/assets/pdf/personal/checking/set-up-direct-deposit-CNS3519.pdf

2-10. Salary Advances

Institute of Epidermal Cell Therapy does not permit advances on paychecks or against accrued paid time off. Advance pay for vacation must be requested in writing at least two weeks prior to the vacation period.

2-11. Performance Review

Depending on the employee's position and classification, Institute of Epidermal Cell Therapy endeavors to review performance annually. However, a positive performance evaluation does not guarantee an increase in salary, a promotion or continued employment. Compensation increases and the terms and conditions of employment, including job assignments, transfers, promotions, and demotions, are determined by and at the discretion of management.

In addition to these formal performance evaluations, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy encourages employees and supervisors to discuss job performance on a frequent and ongoing basis.

Department of Professional and Occupational Regulation requires all school complete Change of Responsible Management document which clearly delineates the relationships among staff for example.

Instructors Reports To: Director of Education (Direct Supervisor Operational task/performance) and President/VP of Human Resource (Governing principles, Operational policies, Employee benefits, Leaves Of Absence, General Standards of Conduct).

Director of Education Reports To: President (Direct Supervisor Operational task/performance) and President/VP of Human Resource (Governing principles, Operational policies, Employee benefits, Leaves Of Absence, General Standards of Conduct).

President Reports To: Owner (Directly Reporting Business Operations) and President/VP of Human Resource (Governing principles, Operational policies, Employee benefits, Leaves Of Absence, General Standards of Conduct

Non-exempt Employee Report To: Director of Education (Direct Supervisor Operational task) and President/VP of Human Resource (Governing principles, Operational policies, Employee benefits, Leaves Of Absence, General Standards of Conduct).

2-12. Job Postings

Institute of Epidermal Cell Therapy is dedicated to assisting employees in managing their careers and reaching their professional goals through promotion and transfer opportunities. This policy outlines the on-line job posting program which is in place for all employees. To be eligible to apply for an open position, employees must meet several requirement.

• Must meet the job qualifications listed on the job posting
• Required English language speaking and writing skills

If the employee finds a position of interest on the job posting website and meets the eligibility requirements, an on-line job posting application must be completed in order to be considered for the position. Not all positions are guaranteed to be posted. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy reserves the right to seek applicants solely from outside sources or to post positions internally and externally simultaneously.

For more specific information about the program, please contact President/ the Human Resources Department.

2-13. Time Clock Procedure

Employees/PC (Punch, Transfer, Leave Requests): The link for the employees to access the Employee Self Service (ESS) is: https://schoolofesthetics.attendanceondemand.com/

They will use their Employee ID number and a PIN number. To start out, employee's PIN number is "0" (zero).

Employees/Mobile Devices (Leave Requests, View Hours):

The ESS Mobile App:

1. On their phone, the employee need to access the appropriate app store (Google Play Store or Apple Store) and search for ESS Mobile (Attendance on Demand, Inc.)
2. After it is downloaded, when the app is initially launched, it will prompt for a server. They need to enter: schoolofesthetics and
3. A log in screen will appear. They login with the same information mentioned above (employee ID and PIN).

Time Clock Process

- Lunches: 30 minutes expected; if no-punch, auto deduct 30. If punch, force 30. If more than 45, alert.

Rounding: Quarter hour rounding (see table example)

Quarter Hour Rounding

Punch Round

01-07 :00

08-22 :15

23-30 :30

30-37 :30

38-45 :45

46-52 :45

53-00 :00

Any problems encountered with payroll timekeeping procedure should be reported to the President/VP of HR.

Section 3 - Benefits

3-1. Benefits Overview/Disclaimer

In addition to good working conditions and competitive pay, it is Institute of Epidermal Cell Therapy's policy to provide a combination of supplemental benefits to all eligible employees. In keeping with this goal, each benefit program has been carefully devised. These benefits include time-off benefits, such as vacations and holidays, and insurance and other plan benefits. We are constantly studying and evaluating our benefits programs and policies to better meet present and future requirements. These policies have been developed over the years and continue to be refined to keep up with changing times and needs.

The next few pages contain a brief outline of the benefits programs Institute of Epidermal Cell Therapy provides employees and their families. Of course, the information presented here is intended to serve only as guidelines.

The descriptions of the insurance and other plan benefits merely highlight certain aspects of the applicable plans for general information only. The details of those plans are spelled out in the official plan documents, which are available for review upon request from President/VP of HR. Additionally, the provisions of the plans, including eligibility and benefits provisions, are summarized in the summary plan descriptions ("SPDs") for the plans (which may be revised from time to time). In the determination of benefits and all other matters under each plan, the terms of the official plan documents shall govern over the language of any descriptions of the plans, including the SPDs and this handbook.

Further, Institute of Epidermal Cell Therapy (including the officers and administrators who are responsible for administering the plans) retains full discretionary authority to interpret the terms of the plans, as well as full discretionary authority with regard to administrative matters arising in connection with the plans and all issues concerning benefit terms, eligibility and entitlement. While the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy intends to maintain these employee benefits, it reserves the absolute right to modify, amend or terminate these benefits at any time and for any reason.

If employees have any questions regarding benefits, they should contact President/VP of HR.

3-2. Paid Holidays

Full-time employees will be paid for the following holidays:

New Year's Day

Memorial Day

Independence Day

Thanksgiving Day

Christmas Eve

Christmas Day

New Year's Eve

Labor Day

When holidays fall or are celebrated on a regular work day, eligible employees will receive one (1) day's pay at their regular straight-time rate. Eligible employees who are called in to work on a holiday will receive one (1) day's pay at their regular straight-time rate, and an additional payment of straighttime for the actual time they work that day.

If a holiday falls within an eligible employee's approved vacation period, the eligible employee will be paid for the holiday (at the regular straight-time rate) in addition to the vacation day, or the eligible employee will receive an additional vacation day at the option of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

If a holiday falls within a jury duty or bereavement leave, the eligible employee will be paid for the holiday (at the regular straight-time rate) in addition to the leave day, or the eligible employee will receive an additional day off at the option of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

Holidays: Salary - Paid 8; Hourly - Paid 4 and manually add if they were supposed to work that day

3-3. Paid Time Off

We know how hard employees work and recognize the importance of providing time for rest and relaxation. We fully encourage employees to get this rest by taking paid time off. Time off under this policy includes extended time off, such as for a vacation, and incidental time due to sickness or to handle personal affairs.

Full-time employees accrue paid time off as follows:

During the first partial calendar year of employment and the first five full calendar years of employment, full-time employees accrue up to 20 days of paid time off per year. Paid time off is accrued on a pro-rata basis throughout the year.

Thereafter, full-time employees accrue up to 25 days of paid time off per year. Paid time off continues to be accrued on a pro-rata basis throughout the year.

The maximum paid time off entitlement for part-time employees is pro-rated based on hours worked. Paid time off should be taken during the year received, unless otherwise required by law. Accrued, unused paid time off can be carried over to the following calendar year only if approved by President/VP of HR.

If an employee wishes to use three (3) or more full days of paid time off consecutively, the employee must submit a request to his or her manager at least two (2) weeks in advance of the requested time off. Similar notice should be provided for planned time off of shorter duration. Every effort will be made to grant requests, consistent with our operating schedule. However, if too many people request the same period of time off, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy reserves the right to choose who may take time off during that period. Individuals with the longest length of service generally will be given preference.

If an employee will be out of work due to illness or due any other emergency for which notice could not be provided, the employee must call in and notify his or her supervisor as early as possible, but at least by the start of the employee's workday. If an employee calls in sick for three (3) or more consecutive days, the employee may be required to provide his or her supervisor with a doctor's note on the day the employee returns to work.

Paid time off may be used only in half-day increments. Up to 10 days of accrued, unused paid time off is paid out upon separation, unless otherwise required by law. Advanced but unaccrued paid time off will be deducted from an employee's final paycheck, to the extent permitted by law. www.instituteofepidermalcelltherapy.com 26

Paid Time off Process Example

1. Hourly - accrue based on Hours Worked, max 20 days per year. (20 days = 160 hours. Accrue 0.077 hours per hour worked. 80 hour pay period = 6.16 hours accrued.)
2. Salary - accrue flat rate per pay period, earning 20 days per year (20 days = 160 hours. Accrue 6.16 hours per pay period. 26 periods/year = 160 hours.)

• Requests can be minimum of 1 hour
• Personal time carry over (unused time)
• Personal time accrual starts after

3-4. Paid Maternity Benefits

Paid maternity benefits can be claimed by full-time employees who have worked at the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy for at least 12 consecutive months, following the birth of a child. Generally, six consecutive weeks of paid maternity benefits will be granted to eligible employees. This benefit is calculated (based on the following chart) including any short-term disability benefits.

If the employee has:

Less than one year of continuous full-time service: Payment per week is $100.

One to two years of continuous full-time service: Payment per week is $200.

Over two years of continuous full-time service: Payment per week is $250.

This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. See the "Leaves of Absence" section of this handbook for more information.

3-5. Lactation Breaks

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee's infant child, in accordance with and to the extent required by applicable law. The break time, if possible, must run concurrently with rest and meal periods already provided to the employee. If the break time cannot run concurrently with rest and meal periods already provided to the employee, the break time will be unpaid, subject to applicable law.

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will make reasonable efforts to provide employees with the use of a room or location other than a toilet stall for the employee to express milk in private. This location may be the employee's private office, if applicable. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may not be able to provide additional break time if doing so would seriously disrupt the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's operations, subject to applicable law. Please consult the Human Resources Department if you have questions regarding this policy.

Employees should advise management if they need break time and an area for this purpose.

Employees will not be discriminated against or retaliated against for exercising their rights under this policy.

3-6. Workers' Compensation

On-the-job injuries are covered by our Workers' Compensation Insurance Policy, which is provided at no cost. If employees are injured on the job, no matter how slightly, they should report the incident immediately to their Supervisor. Failure to follow School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy procedures may affect the ability of the employee to receive Workers Compensation benefits.

This is solely a monetary benefit and not a leave of absence entitlement. Employees who need to miss work due to a workplace injury must also request a formal leave of absence. See the Leave of Absence sections of this handbook for more information.

3-7. Jury Duty

Institute of Epidermal Cell Therapy realizes that it is the obligation of all U.S. citizens to serve on a jury when summoned to do so. All employees will be allowed time off to perform such civic service as required by law. Employees are expected, however, to provide proper notice of a request to perform jury duty and verification of their service.

Employees also are expected to keep management informed of the expected length of jury duty service and to report to work for the major portion of the day if excused by the court. If the required absence presents a serious conflict for management, employees may be asked to try to postpone jury duty.

Employees on jury duty leave will be paid for their jury duty service in accordance with state law; however, exempt employees will be paid their full salary for any week in which time is missed due to jury duty if work is performed for the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy during such week.

3-8. Bereavement Leave

We know the death of a family member is a time when employees wish to be with their families. If an employee loses a close relative, he or she will be allowed paid time off of up to 3 work days to assist the employee in attending to his or her obligations and commitments. For the purposes of this policy, a close relative includes a spouse, domestic partner, child, parent, sibling or any other relation required by applicable law. Paid leave days only may be taken on regularly scheduled, consecutive workdays following the day of death. Employees must inform their Supervisors prior to commencing bereavement leave. In administering this policy, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may require verification of death.

3-9. Voting Leave

In the event an employee does not have sufficient time outside of working hours to vote in a statewide election, if required by state law, the employee may take off enough working time to vote. Such time will be paid if required by state law. This time should be taken at the beginning or end of the regular work schedule. Where possible, your Supervisor should be notified at least two days prior to the voting day.

3-10. Insurance Programs

Full-time employees may participate in the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's insurance programs. Under these plans, eligible employees will receive comprehensive health and other insurance coverage for themselves and their families, as well as other benefits.

Upon becoming eligible to participate in these plans, you will receive summary plan descriptions (SPDs) describing the benefits in greater detail. Please refer to the SPDs for detailed plan information. Of course, feel free to speak to Human Resources if you have any further questions.

3-11. Long-Term Disability Benefits

Full-time employees are eligible to participate in the Long-Term Disability plan, subject to all terms and conditions of the agreement between the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy and the insurance carrier.

This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. See the Leave of Absence sections of this handbook for more information.

3-12. Salary Continuation

Institute of Epidermal Cell Therapy provides enhanced monetary short-term disability benefits to fulltime employees. These enhanced monetary benefits are inclusive of any monetary workers' compensation or statutory short-term disability benefits.

This is not a leave of absence provision. Employees who will be out of work must request a leave of absence. See the Leave of Absence sections of this handbook for more information. Employees will be required to submit medical certification as requested by Institute of Epidermal Cell Therapy. Required medical certification under this policy may differ from the medical certification required for any leave of absence requested.

3-13. Transportation Reimbursement Program

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy provides a Transportation Reimbursement Program which allows all employees to pay for eligible transportation expenses with pre-tax income. Employees may participate on the first of the month after one month of employment. The program works similarly to a Flexible Benefits Program, in which employees elect to have a portion of pre-tax income transferred to an account for future reimbursement for transportation expenses. The amount of contributions is subject to IRS limits which generally change every year. Upon becoming eligible to participate in this plan, employees will receive a Summary Plan Document (SPD) describing the benefit in greater detail. Employees should refer to the SPD for detailed plan information. Of course, employees also should feel free to speak to the Human Resources Department if they have any further questions.

Section 4 - Leaves of Absence

4-1. Personal Leave

If employees are ineligible for any other School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy leave of absence, Institute of Epidermal Cell Therapy, under certain circumstances, may grant a personal leave of absence without pay. A written request for a personal leave should be presented to management at least two (2) weeks before the anticipated start of the leave. If the leave is requested for medical reasons and employees are not eligible for leave under the federal Family and Medical Leave Act (FMLA) or any state leave law, medical certification also must be submitted.

The request will be considered on the basis of staffing requirements and the reasons for the requested leave, as well as performance and attendance records. Normally, a leave of absence will be granted for a period of up to eight (8) weeks. However a personal leave may be extended if, prior to the end of leave, employees submit a written request for an extension to management and the request is granted. During the leave, employees will not earn vacation, personal days or sick days.

We will continue health insurance coverage during the leave if employees submit their share of the monthly premium payments to the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy in a timely manner, subject to the terms of the plan documents.

When the employee anticipates returning to work, he or she should notify management of the expected return date. This notification should be made at least one week before the end of the leave. Upon completion of the personal leave of absence, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will attempt to return employees to their original job or a similar position, subject to prevailing business considerations. Reinstatement, however, is not guaranteed.

Failure to advise management of availability to return to work, failure to return to work when notified or a continued absence from work beyond the time approved by the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will be considered a voluntary resignation of employment. Personal leave runs concurrently with any School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-provided Short-Term Disability Leave of Absence.

4-2. Military Leave

If employees are called into active military service or enlist in the uniformed services, they will be eligible to receive an unpaid military leave of absence. To be eligible for military leave, employees must provide management with advance notice of service obligations unless they are prevented from providing such notice by military necessity or it is otherwise impossible or unreasonable to provide such notice. Provided the absence does not exceed applicable statutory limitations, employees will retain reemployment rights and accrue seniority and benefits in accordance with applicable federal and state laws. Employees should ask management for further information about eligibility for Military Leave.

If employees are required to attend yearly Reserves or National Guard duty, they can apply for an unpaid temporary military leave of absence not to exceed the number of days allowed by law (including travel). They should give management as much advance notice of their need for military leave as possible so that we can maintain proper coverage while employees are away.

Section 5 - General Standards of Conduct

5-1. Workplace Conduct

Institute of Epidermal Cell Therapy endeavors to maintain a positive work environment. Each employee plays a role in fostering this environment. Accordingly, we all must abide by certain rules of conduct, based on honesty, common sense and fair play.

Because everyone may not have the same idea about proper workplace conduct, it is helpful to adopt and enforce rules all can follow. Unacceptable conduct may subject the offender to disciplinary action, up to and including discharge, in the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's sole discretion. The following are examples of some, but not all, conduct which can be considered unacceptable:

1. Obtaining employment on the basis of false or misleading information.
2. Stealing, removing or defacing Institute of Epidermal Cell Therapy property or a co-worker's property, and/or disclosure of confidential information.
3. Completing another employee's time records.
4. Violation of safety rules and policies.
5. Violation of Institute of Epidermal Cell Therapy's Drug and Alcohol-Free Workplace Policy.
6. Fighting, threatening or disrupting the work of others or other violations of Institute of Epidermal Cell Therapy's Workplace Violence Policy.
7. Failure to follow lawful instructions of a supervisor.
8. Failure to perform assigned job duties.
9. Violation of the Punctuality and Attendance Policy, including but not limited to irregular attendance, habitual lateness or unexcused absences.
10. Gambling on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property.
11. Willful or careless destruction or damage to School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy assets or to the equipment or possessions of another employee.
12. Wasting work materials.
13. Performing work of a personal nature during working time.
14. Violation of the Solicitation and Distribution Policy.
15. Violation of Institute of Epidermal Cell Therapy's Harassment or Equal Employment Opportunity Policies.
16. Violation of the Communication and Computer Systems Policy.
17. Unsatisfactory job performance.
18. Any other violation of Company policy.

Obviously, not every type of misconduct can be listed. Note that all employees are employed at-will, and Institute of Epidermal Cell Therapy reserves the right to impose whatever discipline it chooses, or none at all, in a particular instance. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will deal with each situation individually and nothing in this handbook should be construed as a promise of specific treatment in a given situation. However, Institute of Epidermal Cell Therapy will endeavor to utilize progressive discipline but reserves the right in its sole discretion to terminate an employee at any time for any reason.

The observance of these rules will help to ensure that our workplace remains a safe and desirable place to work.

5-2. Punctuality and Attendance

Employees are hired to perform important functions at Institute of Epidermal Cell Therapy. As with any group effort, operating effectively takes cooperation and commitment from everyone. Therefore, attendance and punctuality are very important. Unnecessary absences and lateness are expensive, disruptive and place an unfair burden on fellow employees and Supervisors. We expect excellent attendance from all employees. Excessive absenteeism or tardiness will result in disciplinary action up to and including discharge.

We do recognize, however, there are times when absences and tardiness cannot be avoided. In such cases, employees are expected to notify Supervisors as early as possible, but no later than the start of the work day. Asking another employee, friend or relative to give this notice is improper and constitutes grounds for disciplinary action. Employees should call, stating the nature of the illness and its expected duration, for every day of absenteeism. Unreported absences of three (3) consecutive work days generally will be considered a voluntary resignation of employment with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

5-3. Use of Communications and Computer Systems

Institute of Epidermal Cell Therapy's communication and computer systems are intended primarily for business purposes; however limited personal usage is permitted if it does not hinder performance of job duties or violate any other School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy policy. This includes the voice mail, e-mail and Internet systems. Users have no legitimate expectation of privacy in regard to their use of the Institute of Epidermal Cell Therapy systems.

Institute of Epidermal Cell Therapy may access the voice mail and e-mail systems and obtain the communications within the systems, including past voice mail and e-mail messages, without notice to users of the system, in the ordinary course of business when the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy deems it appropriate to do so. The reasons for which the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may obtain such access include, but are not limited to: maintaining the system; preventing or investigating allegations of system abuse or misuse; assuring compliance with software copyright laws; complying with legal and regulatory requests for information; and ensuring that School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy operations continue appropriately during an employee's absence.

Further, Institute of Epidermal Cell Therapy may review Internet usage to ensure that such use with School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property, or communications sent via the Internet with School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property, are appropriate. The reasons for which the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may review employees' use of the Internet with School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property include, but are not limited to: maintaining the system; preventing or investigating allegations of system abuse or misuse; assuring compliance with software copyright laws; complying with legal and regulatory requests for information; and ensuring that School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy operations continue appropriately during an employee's absence.

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may store electronic communications for a period of time after the communication is created. From time to time, copies of communications may be deleted.

The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's policies prohibiting harassment, in their entirety, apply to the use of School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's communication and computer systems. No one may use any communication or computer system in a manner that may be construed by others as harassing or offensive based on race, national origin, sex, sexual orientation, age, disability, religious beliefs or any other characteristic protected by federal, state or local law.

Further, since the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's communication and computer systems are intended for business use, all employees, upon request, must inform management of any private access codes or passwords.

Unauthorized duplication of copyrighted computer software violates the law and is strictly prohibited. No employee may access, or attempt to obtain access to, another employee's computer systems without appropriate authorization.

Violators of this policy may be subject to disciplinary action, up to and including discharge.

5-4. Use of Social Media

Institute of Epidermal Cell Therapy respects the right of any employee to maintain a blog or web page or to participate in a social networking, Twitter or similar site, including but not limited to Facebook and LinkedIn. However, to protect School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy interests and ensure employees focus on their job duties, employees must adhere to the following rules:

Employees may not post on a blog or web page or participate on a social networking platform, such as Twitter or similar site, during work time or at any time with School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy equipment or property.

All rules regarding confidential and proprietary business information apply in full to blogs, web pages and social networking platforms, such as Twitter, Facebook, LinkedIn or similar sites. Any information that cannot be disclosed through a conversation, a note or an e-mail also cannot be disclosed in a blog, web page or social networking site.

Whether an employee is posting something on his or her own blog, web page, social networking, Twitter or similar site or on someone else's, if the employee mentions the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy and also expresses either a political opinion or an opinion regarding the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's actions that could pose an actual or potential conflict of interest with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, the poster must include a disclaimer. The poster should specifically state that the opinion expressed is his/her personal opinion and not the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's position. This is necessary to preserve the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's good will in the marketplace.

Any conduct that is impermissible under the law if expressed in any other form or forum is impermissible if expressed through a blog, web page, social networking, Twitter or similar site. For example, posted material that is discriminatory, obscene, defamatory, libelous or violent is forbidden. School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy policies apply equally to employee social media usage.

Institute of Epidermal Cell Therapy encourages all employees to keep in mind the speed and manner in which information posted on a blog, web page, and/or social networking site is received and often misunderstood by readers. Employees must use their best judgment. Employees with any questions should review the guidelines above and/or consult with their manager. Failure to follow these guidelines may result in discipline, up to and including discharge.

5-5. Personal and Company-Provided Portable Communication Devices

School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-provided portable communication devices (PCDs), including cell phones and personal digital assistants, should be used primarily for business purposes. Employees have no reasonable expectation of privacy in regard to the use of such devices, and all use is subject to monitoring, to the maximum extent permitted by applicable law. This includes as permitted the right to monitor personal communications as necessary.

Some employees may be authorized to use their own PCD for business purposes. These employees should work with the IT department to configure their PCD for business use. Communications sent via a personal PCD also may subject to monitoring if sent through the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's networks and the PCD must be provided for inspection and review upon request.

All conversations, text messages and e-mails must be professional. When sending a text message or using a PCD for business purposes, whether it is a School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-provided or personal device, employees must comply with applicable School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy guidelines, including policies on sexual harassment, discrimination, conduct, confidentiality, equipment use and operation of vehicles. Using a School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-issued PCD to send or receive personal text messages is prohibited at all times and personal use during working hours should be limited to emergency situations.

If an employee who uses a personal PCD for business resigns or is discharged, the employee will be required to submit the device to the IT department for resetting on or before his or her last day of work. At that time, the IT department will reset and remove all information from the device, including but not limited to, School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy information and personal data (such as contacts, e-mails and photographs). The IT department will make efforts to provide employees with the personal data in another form (e.g., on a disk) to the extent practicable; however, the employee may lose some or all personal data saved on the device.

Employees may not use their personal PCD for business unless they agree to submit the device to the IT department on or before their last day of work for resetting and removal of School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy information. This is the only way currently possible to ensure that all School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy information is removed from the device at the time of termination. The removal of School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy information is crucial to ensure compliance with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's confidentiality and proprietary information policies and objectives.

Please note that whether employees use their personal PCD or a School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-issued device, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's electronic communications policies, including but not limited to, proper use of communications and computer systems, remain in effect.

Portable Communication Device Use While Driving

Employees who drive on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy business must abide by all state or local laws prohibiting or limiting PCD (cell phone or personal digital assistant) use while driving. Further, even if usage is permitted, employees may choose to refrain from using any PCD while driving. "Use" includes, but is not limited to, talking or listening to another person or sending an electronic or text message via the PCD.

Regardless of the circumstances, including slow or stopped traffic, if any use is permitted while driving, employees should proceed to a safe location off the road and safely stop the vehicle before placing or accepting a call. If acceptance of a call is absolutely necessary while the employee is driving, and permitted by law, the employee must use a hands-free option and advise the caller that he/she is unable to speak at that time and will return the call shortly.

Under no circumstances should employees feel that they need to place themselves at risk to fulfill business needs.

Since this policy does not require any employee to use a cell phone while driving, employees who are charged with traffic violations resulting from the use of their PCDs while driving will be solely responsible for all liabilities that result from such actions.

Texting and e-mailing while driving is prohibited in all circumstances.

5-6. Camera Phones/Recording Devices

Due to the potential for issues such as invasion of privacy, sexual harassment and loss of productivity, as well as inappropriate disclosure of confidential information, no employee may use a camera phone function on any phone on company property or while performing work for the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

The use of tape recorders, Dictaphones or other types of voice recording devices anywhere on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property, including to record conversations or activities of other employees or management, or while performing work for the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, is also strictly prohibited, unless the device was provided to you by the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy and is used solely for legitimate business purposes.

5-7. Inspections

Institute of Epidermal Cell Therapy reserves the right to require employees while on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property, or on client property, to agree to the inspection of their persons, personal possessions and property, personal vehicles parked on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy or client property, and work areas. This includes lockers, vehicles, desks, cabinets, work stations, packages, handbags, briefcases and other personal possessions or places of concealment, as well as personal mail sent to the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy or to its clients. Employees are expected to cooperate in the conduct of any search or inspection.

5-8. Smoking

Smoking, including the use of e-cigarettes, is prohibited on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises and in all School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy vehicles.

5-9. Personal Visits and Telephone Calls

Disruptions during work time can lead to errors and delays. Therefore, we ask that personal telephone calls be kept to a minimum, and only be made or received after working time, or during lunch or break time.

For safety and security reasons, employees are prohibited from having personal guests visit or accompany them anywhere in our facilities other than the reception areas and pre-approved authorization by Direct Supervisors.

5-10. Solicitation and Distribution

To avoid distractions, solicitation by an employee of another employee is prohibited while either employee is on work time and in all selling and direct customer service areas. "Work time" is defined as the time an employee is engaged, or should be engaged, in performing his/her work tasks for School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. Solicitation of any kind by non-employees on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises is prohibited at all times.

Distribution of advertising material, handbills, printed or written literature of any kind in selling and direct customer service areas and all other working areas of School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy is prohibited at all times. Distribution of literature by non- employees on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy premises is prohibited at all times.

5-11. IECT Website login Page Bulletin Boards

Important notices and items of general interest are continually posted on our website login pages act the bulletin board. Employees should make it a practice to review it frequently. This will assist employees in keeping up with what is current at Institute of Epidermal Cell Therapy. To avoid confusion, employees should not post or remove any material from the website login pages act the bulletin board.

For example, Instructor and Instructional related non-exempt staff would have access to the Instructor login page and resources.

Instructors Login Page: https://www.instituteofepidermalcelltherapy.com/instructor/index.html

5-12. Confidential Company Information

During the course of work, an employee may become aware of confidential information about Institute of Epidermal Cell Therapy's business, including but not limited to information regarding School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy finances, pricing, products and new product development, software and computer programs, marketing strategies, suppliers and customers and potential customers. An employee also may become aware of similar confidential information belonging to the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's clients. It is extremely important that all such information remain confidential, and particularly not be disclosed to our competitors. Any employee who improperly copies, removes (whether physically or electronically), uses or discloses confidential information to anyone outside of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may be subject to disciplinary action up to and including termination. Employees may be required to sign an agreement reiterating these obligations.

5-13. Conflict of Interest and Business Ethics

It is Institute of Epidermal Cell Therapy's policy that all employees avoid any conflict between their personal interests and those of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. The purpose of this policy is to ensure that the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's honesty and integrity, and therefore its reputation, are not compromised. The fundamental principle guiding this policy is that no employee should have, or appear to have, personal interests or relationships that actually or potentially conflict with the best interests of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

It is not possible to give an exhaustive list of situations that might involve violations of this policy. However, the situations that would constitute a conflict in most cases include but are not limited to:

1. holding an interest in or accepting free or discounted goods from any organization that does, or is seeking to do, business with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, by any employee who is in a position to directly or indirectly influence either the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's decision to do business, or the terms upon which business would be done with such organization;
2. holding any interest in an organization that competes with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy;
3. being employed by (including as a consultant) or serving on the board of any organization which does, or is seeking to do, business with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy or which competes with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy; and/or
4. profiting personally, e.g., through commissions, loans, expense reimbursements or other payments, from any organization seeking to do business with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

A conflict of interest would also exist when a member of an employee's immediate family is involved in situations such as those above.

This policy is not intended to prohibit the acceptance of modest courtesies, openly given and accepted as part of the usual business amenities, for example, occasional business-related meals or promotional items of nominal or minor value.

It is your responsibility to report any actual or potential conflict that may exist between you (and your immediate family) and the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

5-14. Use of Facilities, Equipment and Property, Including Intellectual Property

Equipment essential in accomplishing job duties is often expensive and may be difficult to replace. When using property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards and guidelines. Employees should notify their Supervisor if any equipment, machines, or tools appear to be damaged, defective, or in need of repair. Prompt reporting of loss, damages, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The Supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment used on the job.

Employees also are prohibited from any unauthorized use of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's intellectual property, such as audio and video tapes, print materials and software.

Improper, careless, negligent, destructive, or unsafe use or operation of equipment can result in discipline, up to and including discharge.

Further, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy is not responsible for any damage to employees' personal belongings unless the employee's Supervisor provided advance approval for the employee to bring the personal property to work.

5-15. Health and Safety

The health and safety of employees and others on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property are of critical concern to Institute of Epidermal Cell Therapy. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy intends to comply with all health and safety laws applicable to our business. To this end, we must rely upon employees to ensure that work areas are kept safe and free of hazardous conditions. Employees are required to be conscientious about workplace safety, including proper operating methods, and recognize dangerous conditions or hazards. Any unsafe conditions or potential hazards should be reported to management immediately, even if the problem appears to be corrected. Any suspicion of a concealed danger present on the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's premises, or in a product, facility, piece of equipment, process or business practice for which the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy is responsible should be brought to the attention of management immediately.

Periodically, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may issue rules and guidelines governing workplace safety and health. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy may also issue rules and guidelines regarding the handling and disposal of hazardous substances and waste. All employees should familiarize themselves with these rules and guidelines, as strict compliance will be expected.

Any workplace injury, accident, or illness must be reported to the employee's Supervisor as soon as possible, regardless of the severity of the injury or accident.

5-16. Hiring Relatives/Employee Relationships

A familial relationship among employees can create an actual or at least a potential conflict of interest in the employment setting, especially where one relative supervises another relative. To avoid this problem, Institute of Epidermal Cell Therapy may refuse to hire or place a relative in a position where the potential for favoritism or conflict exists.

In other cases, such as personal relationships where a conflict or the potential for conflict arises, even if there is no supervisory relationship involved, the parties may be separated by reassignment or discharged from employment, at the discretion of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. Accordingly, all parties to any type of intimate personal relationship must inform management.

If two employees marry, become related, or enter into an intimate relationship, they may not remain in a reporting relationship or in positions where one individual may affect the compensation or other terms or conditions of employment of the other individual. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy generally will attempt to identify other available positions, but if no alternate position is available, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy retains the right to decide which employee will remain with the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy.

For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with the employee is similar to that of persons who are related by blood or marriage.

5-17. Employee Dress and Personal Appearance

You are expected to report to work well groomed, clean, and dressed according to the requirements of your position. Some employees may be required to wear uniforms or safety equipment/clothing. Please contact your Supervisor for specific information regarding acceptable attire for your position. If you report to work dressed or groomed inappropriately, you may be prevented from working until you return to work well groomed and wearing the proper attire.

5-18. Publicity/Statements to the Media

All media inquiries regarding the position of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy as to any issues must be referred to the President. Only the President is authorized to make or approve public statements on behalf of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. No employees, unless specifically designated by the President, are authorized to make those statements on behalf of School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. Any employee wishing to write and/or publish an article, paper, or other publication on behalf of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy must first obtain approval from the President.

5-19. Operation of Vehicles

All employees authorized to drive School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-owned or leased vehicles or personal vehicles in conducting School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy business must possess a current, valid driver's license and an acceptable driving record. Any change in license status or driving record must be reported to management immediately.

An employee must have a valid driver's license in his or her possession while operating a vehicle off or on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy property. It is the responsibility of every employee to drive safely and obey all traffic, vehicle safety, and parking laws or regulations. Drivers must demonstrate safe driving habits at all times. School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy-owned or leased vehicles may be used only as authorized by management.

Portable Communication Device Use While Driving

Employees who drive on School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy business must abide by all state or local laws prohibiting or limiting portable communication device (PCD) use, including cell phones or personal digital assistants, while driving. Further, even if use is permitted, employees may choose to refrain from using any PCD while driving. "Use" includes, but is not limited to, talking or listening to another person or sending an electronic or text message via the PCD.

Regardless of the circumstances, including slow or stopped traffic, if any use is permitted while driving, employees should proceed to a safe location off the road and safely stop the vehicle before placing or accepting a call. If acceptance of a call is absolutely necessary while the employee is driving, and permitted by law, the employee must use a hands-free option and advise the caller that he/she is unable to speak at that time and will return the call shortly.

Under no circumstances should employees feel that they need to place themselves at risk to fulfill business needs.

Since this policy does not require any employee to use a PCD while driving, employees who are charged with traffic violations resulting from the use of their PCDs while driving will be solely responsible for all liabilities that result from such actions.

Texting and e-mailing while driving is prohibited in all circumstances.

5-20. Business Expense Reimbursement

Employees will be reimbursed for reasonable approved expenses incurred in the course of business. These expenses must be approved by the employee's Supervisor, and may include air travel, hotels, motels, meals, cab fare, rental vehicles, or gas and car mileage for personal vehicles. All expenses incurred should be submitted to President/VP of HR along with the receipts in a timely manner. Employees are expected to exercise restraint and good judgment when incurring expenses.

Employees should contact their Supervisor in advance if they have any questions about whether an expense will be reimbursed.

5-21. References

Institute of Epidermal Cell Therapy will respond to reference requests through President/VP of HR Department. The School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will provide general information concerning the employee such as date of hire, date of discharge, and positions held. Requests for reference information must be in writing, and responses will be in writing. Please refer all requests for references to President/VP of HR Department.

Only President/VP of HR Department may provide references.

5-22. If You Must Leave Us

Should an employee decide to leave the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, we ask that he or she provide a Supervisor with at least 2 weeks advance notice of departure. Thoughtfulness will be appreciated. All School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, property including, but not limited to, keys, security cards, parking passes, laptop computers, fax machines, uniforms, etc., must be returned at separation. Employees also must return all of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy,'s Confidential Information upon separation. To the extent permitted by law, employees will be required to repay the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, (through payroll deduction, if lawful) for any lost or damaged School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, property. As noted previously, all employees are employed at-will and nothing in this handbook changes that status.

5-23. A Few Closing Words

This handbook is intended to give employees a broad summary of things they should know about Institute of Epidermal Cell Therapy. The information in this handbook is general in nature and, should questions arise, any member of management should be consulted for complete details. While we intend to continue the policies, rules and benefits described in this handbook, Institute of Epidermal Cell Therapy, in its sole discretion, may always amend, add to, delete from or modify the provisions of this handbook and/or change its interpretation of any provision set forth in this handbook.

Employees should not hesitate to speak to management if they have any questions about the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy or its personnel policies and practices.

Section 6 - Addendum Re: Covid-19

6-1. General

Q: Where can I find information about COVID-19?

A: The Centers for Disease Control and Prevention (CDC), the U.S. Occupational Safety and Health Administration, the Equal Employment Opportunity Commission, and the World Health Organization have created dedicated webpages with information on COVID-19 for employers.

In addition, state and local health officials are developing guidelines and resources on the illness. Check your state and local Department of Health and Department of Labor websites for additional information.

Q: What can I do to help prevent the spread of COVID-19 in my workplace?

A: Employers should continue to do everything they can to limit exposure, such as:

Facilitate working remotely where possible.

Conduct virtual meetings instead of in-person meetings.

Limit or prohibit visitors to the workplace.

Practice social distancing in the workplace (staying at least 6 feet away from others).

Encourage employees to avoid gathering in breakrooms and larger groups.

If your employees are required to report to work, employers can help employees practice healthy habits by providing tissues, no-touch trash cans, hand soap and sanitizer, and disposable towels. Routinely clean all frequently touched surfaces, such as workstations, countertops, and doorknobs.

Health officials recommend reminding employees of the importance of:

Washing hands often with soap and warm water for at least 20 seconds.

Avoiding touching your eyes, nose, and mouth.

Cleaning things that are frequently touched (like doorknobs and countertops) with household cleaning spray or wipes.

Covering coughs and sneezes with a tissue or the inside of the elbow.

Staying home when feeling sick.

Q: Can I ask employees to notify me if they've come in contact with someone who has COVID-19?

A: Yes. Employers may ask employees to notify them if they've been in contact with someone who has COVID-19. Also, at this time, the CDC is recommending that people who are close to someone with COVID-19, and develop symptoms of the virus, call their healthcare provider for guidance and self-quarantine for 14 days. Employees should be advising their employer of that as well.

Q: Can I stop my employees from going home because they fear they will become exposed while at work?

A: Several states and local jurisdictions have ordered businesses to close except for essential businesses and/or personnel. Employers should comply with such orders. In addition, numerous companies have ordered employees to work from home as long as they are able. Even in the absence of an order to close, employees who refuse to report to work may have protections from adverse action. For example, under the Occupational Safety and Health Act, employees may have the right to refuse to work if all of the following conditions are met:

Where possible, they have asked the employer to eliminate the danger, and the employer failed to do so;

They genuinely believe that an imminent danger exists;

A reasonable person would agree that there is a real danger of death or serious injury; and

There isn't enough time, due to the urgency of the hazard, to get it corrected through regular enforcement channels, such as requesting an OSHA inspection.

Section 7 of the National Labor Relations Act (NLRA), which grants employees the right to act together to improve wages and working conditions, may also come into play in this situation.

Note: If an employee has an underlying condition that would qualify as a disability, they may be entitled to a reasonable accommodation under the Americans with Disabilities Act and/or similar state laws. Paid or unpaid leave may be considered a reasonable accommodation.

Q: Can employers require employees who have been asked to remain home due to COVID-19 to provide a note from a health care provider that they are able to return to work?

A: If the employer is not asking for specific medical information, they can generally ask for a note confirming the employee can return to work. However, as a practical matter, public health authorities have warned that health care professionals may be too busy right now to provide fitness-for-duty documentation. Employers should consider new approaches to obtaining this information, such as a form, stamp or email from a local clinic to certify that the employee is cleared to return to work.

Q: What should I do if an employee informs me they have COVID-19? Should I tell co-workers?

A: If an employee is confirmed to have COVID-19, employers should inform other employees of their possible exposure to COVID-19 in the workplace but maintain confidentiality (that is, don't reveal who has the illness). As a precautionary measure, employers should consider asking all employees who worked closely with that employee to self-quarantine for a 14-day period of time to better ensure that the infection does not spread. In addition, have a cleaning company complete a deep cleaning of your workspace. Employers should also immediately contact local health officials for further guidance.

Note: Employers should treat all information about an employee's illness as a confidential medical record and keep it separate from the employee's personnel file.

Q: Do I have to allow employees to work from home?

A: Right now, with mandated business closures in some locations, employees may not have the choice but to work from home, though typically employers wouldn't have to allow a work from home arrangement. Because telecommuting can help prevent the spread of the illness, it's something you should implement where possible or be prepared to implement if required.

Note: Telecommuting may be considered a reasonable accommodation if a worker's condition qualifies as a disability under the Americans with Disabilities Act and/or similar state laws.

Q: If I want to prevent abuse of our paid time off policies during a potential outbreak, can I require employees to provide documentation that their absence was for a covered reason?

A: Some state and local sick leave laws have limitations on when employers can ask for documentation. For example, several laws require that an employee be absent for more than three consecutive days before an employer can ask for documentation. However, in its interim guidance, the CDC has advised that employers should not require a healthcare provider's note for employees who are sick with acute respiratory illness to validate their illness or to return to work. Healthcare provider offices and medical facilities may be extremely busy and unable to provide documentation in a timely fashion.

Q: What protections from discrimination are there for employees who have COVID-19? (added 3.25.20)

A: Federal, state and local laws prohibit employers from discriminating against individuals because of disability (and certain other characteristics). Under these laws, employers must take steps to prevent discrimination and harassment against individuals who are disabled or perceived as disabled, including those who are exhibiting symptoms that suggest that they have contracted COVID-19. An employee who contracts COVID-19 may be entitled to reasonable accommodation and protection under the ADA if the employee's reaction to COVID-19 is severe or if it complicates or exacerbates one or more of an employee's other health condition(s)/disabilities. Employers should remind employees of their anti-harassment and discrimination policies and be sure to take all complaints seriously.

Note: Information about an employee's medical history and leave details must be kept confidential.

Q: What protections from discrimination are there for employees who are perceived to be from places where COVID-19 is widespread? (added 3.25.20)

A: Federal, state and local laws prohibit employers from harassing and discriminating against individuals because of race, national origin, and certain other protected characteristics. Instances of harassment and discrimination tend to increase around situations like COVID-19. Therefore, employers should remind employees of their anti-harassment and discrimination policies. Take all complaints seriously and launch a prompt, thorough, and impartial investigation into any complaint.

6-2. Travel

Q: Can I prevent asymptomatic employees from entering the workplace if they, or their household member, have traveled to designated WHO or CDC affected regions?

A: Yes, as long as employers act consistently based on travel activities and do not say or do anything to violate the ADA or other federal, state or local nondiscrimination laws.

Q: Can I prohibit my employees from engaging in personal travel to certain locations?

A: Given the numerous travel bans in place due to COVID-19, employers should first advise employees to check the CDC's Traveler's Health Notices for the latest guidance and on where travel is restricted.

If an employee has traveled or intends to travel, absent a claim that the employee has a recognized privacy interest in their travel, you may ask about their travel plans and take steps to reduce workplace exposure. If you learn that an employee has traveled, remain alert for fever, cough, or difficulty breathing and remind employees to avoid the workplace if they do develop any of these symptoms.

Keep in mind as well that, generally, some states prohibit employers from taking adverse action against an employee for engaging in lawful off-duty conduct, such as travelling to another country or state where travel is allowed. The time off may also be protected under federal, state, and local laws entitling employees to job-protected leave. For instance, an employee taking time off to take care of a family member with a serious health condition may be protected under the federal Family and Medical Leave Act, similar state laws, and/or state and local paid sick leave laws.

Q: Can I ask employees about geographic areas where they have traveled or intend to travel?

A: Yes, absent a claim that an employee has a recognized privacy interest in their travel activities. Employers should take steps to reduce any reasonable expectation of privacy that employees might have in those activities.

6-3. Pay

Q: What if an employee is on a quarantine and cannot telecommute? Do I have to pay them during the quarantine? (updated 4.2.20)

A: Employers should check applicable policies, collective bargaining agreements, and federal, state, and local laws to determine if pay is required.

For example, the Emergency Paid Sick Leave Act (enacted on March 18, 2020) requires employers with fewer than 500 employees to provide paid sick leave to all employees who are unable to work (or telework) because of the following reasons:

The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19 or is caring for an individual who is subject to such an order.
The employee has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19 or is caring for an individual who has been advised to self-quarantine.
The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
The employee is caring for their child due to their school or place of care being closed, or their childcare provider is unavailable, due to COVID-19 precautions.
The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.
Full-time employees are entitled to take up to 80 hours paid sick leave. Part-time employees are eligible for a number of hours equal to the average hours worked over a two-week period.

The law goes into effect on April 1, 2020 and will expire on December 31, 2020. State and local paid leave laws may also require pay, and some jurisdictions are enacting emergency rules to require paid leave in such situations.

Q: What happens if schools close and employees need time off? (updated 4.2.20)

A: The Emergency Family and Medical Leave Expansion Act (enacted on March 18, 2020) amends the Family and Medical Leave Act (FMLA) to temporarily require employers with fewer than 500 employees to provide up to 12 weeks of job-protected leave to care for their child under 18 years of age if their school or place of care has been closed, or their childcare provider is unavailable, due to a public health emergency. To be eligible for this leave, an employee must:

Work for an employer with fewer than 500 employees.
Have worked for the employer for at least 30 calendar days prior to the leave.
The first 10 days of the leave may be unpaid, but the employee may elect to substitute any accrued paid leave during this period. Employees are entitled to paid leave after the first 10 days at two-thirds the employee's regular rate of pay, for the number of hours the employee would otherwise be scheduled to work. Paid leave is subject to a limit of $200 per day, and up to a total amount of $10,000. The law goes into effect on April 1, 2020 and will expire on December 31, 2020.

Among the states and local jurisdictions that require employers to provide paid sick leave, many cover absences related to school closures that are ordered by health officials. Check your state and local laws for details. Some jurisdictions are enacting emergency rules that would require such leave, so monitor the situation closely.

Q: If I ask my employees to telecommute, do I have to pay for their Internet access and other costs related to the home office?

A: Some states expressly require employers to reimburse employees for any reasonable business expenses they incur, such as Internet access from a home office. Absent such a requirement, expense reimbursement may be necessary to satisfy the FLSA minimum wage and overtime requirements for non-exempt employees. In most cases, under the FLSA, any work-related expense incurred by an employee that would bring their pay below the minimum wage (or cut into overtime pay) must be reimbursed.

Regardless of your requirements, it's a best practice to reimburse all employees for any reasonable business expenses. Where the expense may be used for work and personal use (such as having an Internet connection), consider a system to help employees monitor and record how much of the cost is related to conducting business activities, and reimburse employees at least that amount.

Make sure you also have policies and controls in place to ensure that employees use a secure connection to the Internet, protect company and client data, and comply with privacy laws when working remotely.

Q: If I ask my non-exempt employees to telecommute, how do I keep accurate time records for them while working remotely?

A: Implement an effective process for recording work hours of all employees, such as an electronic timekeeping system that workers can access via a computer or mobile device. Also, develop policies that require employees to record all hours worked and expressly prohibit off-the-clock work. To help prevent unauthorized overtime, consider a policy that requires employees to obtain permission before working overtime. While employers may discipline employees for violating such a policy, they may never withhold overtime pay.

6-4. Business Closures

Q: If I am forced to close temporarily, do I have to give employees advance notice?

A: Several laws may govern what type and how much notice employers need to give their employees if they are forced to close temporarily. For example, the Worker Adjustment and Retraining Notification (WARN) Act helps ensure advance notice in cases of qualified plant closings and mass layoffs. In addition, several states have mini-WARN laws, some of which require more notice and/or cover a wider array of closures and/or apply to smaller businesses. Due to COVID-19, states may suspend or alter these requirements. For example, on March 17, 2020, California’s Governor signed an Executive Order relieving California employers of the 60 day notice requirement while California is in a state of emergency. However, employers still must provide notice as soon as practical and have to meet additional requirements as well. Because the situation with COVID-19 is so fluid, employers are encouraged to check with counsel to make sure they are following the most current guidance on notice requirements.

Additionally, some states require advance notice of any reduction in pay. Absent a specific notice requirement, employers should provide as much notice as possible.

Note: Some states and local jurisdictions have enacted predictive scheduling laws. These laws generally require employers to follow certain scheduling practices, including providing a certain amount of advance notice before making changes to employees' schedules. Be sure to check to see if you are subject to such a law. Some jurisdictions, including Oregon, are providing guidance on these laws in light of COVID-19.

Q: I run a gym and my state has ordered my business to close. Do I have to pay employees during the closure?

A: Non-exempt employees (those entitled to minimum wage and overtime) are paid only for "hours worked." Therefore, if non-exempt employees miss an entire day's work because you're closed and you didn't require them to report to work, you're generally under no obligation to pay them, unless you've promised otherwise.

However, if they do report to work, you must pay these employees for any time they actually worked and/or were required to stay at work while your company made a decision to close. Note that some state laws require employers to pay employees for a minimum number of hours when they report to work but are sent home before the end of their scheduled shift. Check your applicable law for rules related to paying employees when they are required to report to work but are sent home early.

Employees who are classified as exempt from minimum wage and overtime must generally receive their full salary in any workweek in which they perform work, regardless of the number of hours worked. However, if they perform no work in a workweek, the employer isn't required to pay them.

Example 1: An exempt employee's workweek is from Sunday to Monday. The state orders their employer to close from Tuesday March 17, 2020 through Sunday March 29, 2020. However, the employee works on Monday, March 16. Since the employee worked part of the workweek, they're entitled to their full salary for the week of March 15, 2020. However, if the employee performs no work in the workweek of March 22, 2020, no pay is required for the March 22nd week.

Example 2: The same facts as Example 1 except that during the workweek of March 22, 2020, the employee performs about an hour of work from home one day. This employee would be entitled to their full salary for both the workweek of March 15 and the workweek of March 22.

Q: Do I have to allow employees to use paid sick or paid family leave during a temporary closure?

A: Several state and local paid sick leave laws require employers to allow employees to use their leave when a business is closed by a public health official due to a health emergency. In recent days, some of these jurisdictions have provided guidance clarifying these rules as they apply to COVID-19. Check your state and local laws for details. In the absence of a state or local requirement, many employers are allowing employees to use paid leave. Make sure your policy complies with applicable laws and is clearly communicated to employees.

Note: Even if your jurisdiction doesn't currently require paid leave in the event of a temporary closure, some states and local jurisdictions are enacting emergency rules that would require it, so monitor the situation closely.

Q: Can employees who have accrued a lot of paid leave voluntarily donate some of it to other employees for use during a closure? (added 3.23.20)

A: Unless certain conditions are met (including the President declaring a "major disaster"), donated leave for a temporary closure would be taxable to both the donor and the recipient. President Trump has declared the coronavirus a major disaster in certain states. In these jurisdictions, any leave-donation program must meet the requirements outlined in IRS Notice 2006-59 for the donor to avoid taxes on the donated leave. Additional states may be declared in the future, so check the Federal Emergency Management Agency (FEMA) website before applying voluntary donations.

Beyond the tax implications, if the paid leave in question is required under state and/or local law, employers should ensure that the law allows employees to donate their leave to fellow employees.

Note: Leave-donation programs for medical emergencies are subject to different IRS rules. See IRS Rev. Rul. 90-29, 1990-1 C.B. 11 for details.

Q: If I am forced to close temporarily, does that trigger my state's final pay requirements? (updated 3.24.20)

A: Final pay rules differ from state to state, so check the law in the state where your employees work. Generally, though, short-term furloughs with a definite return date (that is clearly communicated to employees) wouldn't trigger final pay requirements. Thus, any pay owed to the employee would due be on their next regular payday. However, some states may have stricter rules. For example, in California, a furlough longer than a pay period should be considered a layoff, barring any guidance from the state indicating otherwise. If it is a layoff (i.e. no work for longer than a pay period) all wages due and any accrued but unused vacation and PTO must be paid out immediately.

Q: My business is severely impacted by COVID-19. Is there any help available?

A: The federal government, many states, and some local jurisdictions are considering legislation and programs that would provide assistance to impacted businesses. For instance, the U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the COVID-19. For additional information, contact the SBA disaster assistance customer service center 1-800-659-2955 (TTY: 1-800-877-8339) or e-mail disastercustomerservice@sba.gov.

Q: Because business is declining due to the COVID-19, I don't have enough work for all my employees anymore. What alternatives do I have to layoffs?

A: Many states have adopted shared-work programs to provide employers with an alternative to layoffs. Under these programs, the employer temporarily reduces the hours of a group of employees, and the affected employees collect partial unemployment benefits. Another option is offering unpaid time off to employees in the form of a furlough.

Q: If my payroll bundle includes poster compliance, but I’m located in a state with a statewide lockdown, will my posters still be delivered? (added 3.22.20)

A: No. Compliance posters will not be delivered to businesses located in a state with a lockdown. Once the lockdown has been lifted, all posters will be shipped as normal.

6-5. Unemployment Benefits

Though individual state law dictates an employee's eligibility for unemployment insurance benefits, the federal government, through guidance (Unemployment Insurance Program Letter 10-20) and legislation (Emergency Unemployment Insurance Stabilization and Access Act 0f 2020), is making an effort to provide states with greater flexibility to make as many individuals affected by COVID-19 as eligible as possible.

Q: If my state ordered my business to close, will employees be entitled to unemployment benefits? What if we close because of a lack of work due to COVID-19? (updated 4.2.20)

A: Depending on the state, the length of the closure, and the employee's work history, employees who are prevented from coming to work because their employer temporarily ceases operations due to COVID-19 may be eligible for unemployment benefits. States have issued guidance addressing this issue and many are suspending waiting periods for such benefits. Check your state law, communicate with employees regarding their eligibility for unemployment benefits, and provide any required notice and information accordingly.

Q: If employees file for unemployment what will that do to my unemployment rate? (added 4.2.20)

A: In general, the more employees use unemployment benefits, the higher the employer's rate will be. However, several states have suspended rules that would require an employer's account to be charged if employees are filing unemployment claims for certain reasons related to COVID-19. In such cases, an employer's unemployment insurance rate wouldn't increase. Check your state unemployment agency for details.

Q: Can my employees be eligible for unemployment benefits if I tell them to stay home because I think they are at risk of spreading or contracting COVID-19? (added 4.2.20)

A: Some states are allowing employees to collect unemployment benefits in such situations. Check your state unemployment agency for details.

Q: If an employee is receiving paid sick leave or paid family leave during a company closure, will they be entitled to unemployment benefits? (updated 4.2.20)

A: Generally, an employee who is receiving paid sick leave or paid family leave would be receiving pay and therefore ineligible for unemployment benefits while being paid.

Q: What if I need to temporarily reduce my employees' hours as result of COVID-19? Are these employees eligible for unemployment benefits?

A: Generally, if there's a reduction in available work hours for employees, the employees may be eligible for partial unemployment benefits.

Q: For the purposes of unemployment benefits, what information do I need to provide employees who are subject to a layoff or furlough? (added 4.2.20)

A: Some states require employers to provide a separation notice, though specific requirements vary by state. For example, California requires employers that are laying off employees to furnish a specific notice (Pamphlet DE 2320) along with the employer's name, employee's name and social security number, the type of employment action (layoff, discharge, leave, etc.), and the date of such action.

Check your state law for its requirements.

Q: If I am laying off/furloughing employees, am I required to file for unemployment benefits on my employees' behalf? (added 4.2.20)

A: At least one state—Georgia—is requiring employers to file unemployment benefits on employees' behalf as a result of COVID-19. Some other states are encouraging employers to do so. Employers should check with their unemployment agency to determine whether they can/should/must file unemployment benefits on their employees' behalf.

Q: Are business owners and self-employed individuals entitled to unemployment insurance for reasons related to COVID-19? (added 4.2.20)

A: Under the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act, business owners, self-employed individuals, part-time workers, and those with limited work histories may be eligible for temporary unemployment benefits assistance during their period of unemployment ending on or before December 31, 2020, if certain conditions are met.

To receive unemployment benefits under this program, individuals must certify that they are otherwise able and available to work (as defined by their applicable state law), but they are unemployed, partially unemployed, or unable to work because:

The individual has been diagnosed with COVID–19 or is experiencing symptoms of COVID–19 and seeking a medical diagnosis;
A member of the individual's household has been diagnosed with COVID–19;
The individual is providing care for a family member or a member of the individual's household who has been diagnosed with COVID–19;
A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of COVID–19 and school or facility care is required for the individual to work;
The individual is unable to reach the place of employment because of a quarantine, or a health care provider advising the individual to self-quarantine;
The individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID–19 public health emergency;
The individual has become the main source of financial support for a household because the head of the household has died as a direct result of COVID–19;
The individual has to quit his or her job as a direct result of COVID–19;
The individual's place of employment is closed as a direct result of the COVID–19 public health emergency;
The individual meets any additional criteria established by the Department of Labor for unemployment assistance; or
The individual is self-employed, is seeking part-time employment, does not have sufficient work history, or otherwise would not qualify for regular unemployment or extended benefits under state or federal law.
The individual must also certify that they don't have the ability to telework with pay and they aren't receiving paid sick leave or other paid leave benefits. Benefits are limited to 39 weeks. Check with your state unemployment agency for details.

Q: Does the CARES Act make any additional changes regarding unemployment benefits? (added 4.2.20)

A: Here's a summary of some of these additional unemployment changes made by the CARES Act:

Emergency Increase in Unemployment Compensation Benefits (Section 2104):

This section provides for a federal-state partnership to make payments of regular compensation to individuals in amounts determined under state law plus $600. States will be fully reimbursed by the federal government for the extra payments.

 

Temporary Full Federal Funding of the First Week of Compensable Regular Unemployment for States With No Waiting Week (Section 2105):

States that do not impose a waiting week for unemployment benefits will be fully reimbursed by the federal government.

 

Pandemic Emergency Unemployment Compensation (Section 2107):

States may enter into a partnership with the federal government for an additional 13 weeks of federally funded unemployment compensation to individuals who have exhausted all rights to unemployment benefits under state and federal law for that benefit year (excluding benefits that ended before July 1, 2019) and are not otherwise receiving unemployment compensation under any state, federal, or Canadian law. Individuals must be able to, and be actively seeking, work.

6-6. Families First Coronavirus Response Act

Background:

On March 18, 2020, the United States enacted the Families First Coronavirus Response Act, which will require employers to provide paid leave to certain employees impacted by COVID-19 and offer tax credits to employers that do so. The law requires two types of paid leave: Emergency Paid Sick Leave and Public Health Emergency Leave/Expanded FMLA.

6-6-1. General:

Q: When does the FFCRA take effect? (added 3.26.20)

A: The leave requirements take effect April 1, 2020 and expire on December 31, 2020, according to the Department of Labor.

Q: Will the Department of Labor (DOL) enforce FFCRA immediately once it takes effect? (added 3.26.20)

A: The DOL has announced that it will observe a temporary period of non-enforcement through April 17, 2020, as long as the employer has acted reasonably and in good faith to comply with the law. For purposes of this non-enforcement period, "good faith" means:

Any violations are remedied, and the employee is made whole as soon as practical by the employer;
The violations were not willful; and
The DOL receives a written commitment from the employer to comply with the law in the future.

Q: If a business temporarily closes before April 1, 2020 because there's a lack of work, or if a business temporarily closes while employees are on leave under the FFCRA, what happens? (added 3.30.20)

A: If an employer sends employees home and stops paying them because of a lack of work, employees aren't entitled to emergency paid sick leave or PHEL while the workplace is closed, according to DOL guidance. The guidance says that this is true whether the employer closes the workplace for lack of business or because it is required to close pursuant to a federal, state, or local directive. If an employer closes while an employee is on emergency paid sick leave or PHEL, the employer must pay for any paid leave used before the employer closed. As of the date the employer closes the workplace, the employee would no longer be entitled to emergency paid sick leave or PHEL, according to DOL guidance. If the business reopens before December 31, 2020, employees who resume work would again be entitled to paid leave should a qualifying reason arise.

Note: Under some state/local laws, employees may be entitled to paid leave in situations where the workplace is closed as a result of COVID-19.

Q: Which employers must provide leave under the FFCRA? (updated 3.30.20)

A: Generally, employers with fewer than 500 employees must provide leave under the FFCRA. Under the law, an employer of a healthcare provider or an emergency responder may elect to exclude the employee from the application of the paid sick leave requirement and/or the PHEL requirement. The DOL also has the authority to issue regulations exempting employers with fewer than 50 employees from the PHEL requirement and certain aspects of the sick leave requirement, if that requirement would jeopardize the viability of the business.

Q: From which part of the FFCRA's leave requirements would small employers be able to seek exemption? What conditions must be met? (added 3.30.20)

A: The DOL has the authority to issue regulations exempting employers with fewer than 50 employees from the requirements to provide paid leave to an employee who is caring for their child due to their school or place of care being closed, or their childcare provider is unavailable, for COVID-19 related reasons if it would jeopardize the viability of the business. Unless amended, the exemption wouldn’t apply to any of the other types of paid leave employers are required to provide under the FFCRA.

The DOL has released updated guidance that addresses the conditions that must be met for a small employer to claim the exemption. As of March 28, 2020, the DOL guidance states that a small business may claim this exemption if an authorized officer of the business has determined that:

The leave would result in the small business's expenses and financial obligations exceeding available business revenues and cause the small business to cease operating at a minimal capacity; The absence of the employee or employees requesting leave would entail a substantial risk to the financial health or operational capabilities of the small business because of their specialized skills, knowledge of the business, or responsibilities; or There are not sufficient workers who are able, willing, and qualified, and who will be available at the time and place needed, to perform the labor or services provided by the employee or employees requesting leave, and these labor or services are needed for the small business to operate at a minimal capacity. The DOL is expected to release regulations to clarify the criteria for exemption in April.

Q: For the purposes of exemption from FFCRA's leave requirements, who is considered a healthcare provider and an emergency responder? (added 3.30.20)

A: On March 28, 2020, the DOL released updated guidance that addresses the definition of healthcare provider and an emergency responder. See questions #56 and #57.

Families First Coronavirus Response Act: Questions and Answers | U.S. Department of Labor

The DOL is expected to release regulations to clarify this exemption in April.

6-6-2. Emergency Paid Sick Leave

Q: How much emergency paid sick leave must be provided?

A: Full-time employees must be provided with 80 hours of paid sick leave. Part-time employees are entitled to paid sick leave in the amount of the average number of hours they work over a two-week period.

Q: What absences are covered by the emergency paid sick leave requirement?

A: Employees are entitled to use emergency paid sick leave when they are unable to work (or telework) because of the following reasons:

The employee is subject to a federal, state, or local quarantine or isolation order related to COVID-19 or is caring for an individual who is subject to such an order. The employee has been advised by a healthcare provider to self-quarantine due to concerns related to COVID-19 or is caring for an individual who has been advised to self-quarantine. The employee is experiencing symptoms of COVID-19 and seeking a medical diagnosis. The employee is caring for their child due to their school or place of care being closed, or their childcare provider is unavailable, due to COVID-19 precautions. The employee is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor.

Q: From which part of the emergency sick leave requirement would small employers be able to seek exemption? (added 3.26.20)

A: The text of the law states that the DOL has the authority to issue regulations exempting employers with fewer than 50 employees from the requirement to provide paid sick leave to an employee who is caring for their child due to their school or place of care being closed, or their childcare provider is unavailable, due to COVID-19 precautions. The exemption would be available only if that requirement would jeopardize the viability of the business. The DOL expects to issue regulations in April.

Q: Can I require employees to use other paid leave provided by my company prior to using emergency paid sick leave?

A: No. Employers are prohibited from requiring an employee to use other paid leave provided by the company prior to using paid sick leave required by this law.

Q: If I already provided my employees with paid leave for a reason covered by the law prior to April 1, can I count that towards their 80 hours of emergency paid sick leave? (added 3.26.20)

A: No. The law imposes a new leave requirement on employers that is effective beginning on April 1, 2020.

Q: If an employee takes emergency paid sick leave, can that count against the other types of paid sick leave to which the employee is entitled under state or local law, or the employer's policy? (added 3.30.20)

A: No. Emergency paid sick leave is in addition to other leave provided under federal, state, or local law; an applicable collective bargaining agreement; or the employer's existing company policy.

Q: Can I require employees to find a replacement before using emergency paid sick leave?

A: No. Employers are prohibited from requiring workers to find a replacement to cover their hours during their time off.

Q: How much do I have to pay employees during emergency paid sick leave?

A: The employer must generally pay employees their regular rate of pay (as defined by the Fair Labor Standards Act) or the applicable minimum wage, whichever is higher, up to a maximum of $511 per day (and a total of $5,110). However, leave to care for an individual on quarantine/isolation/self-quarantine or to care for a child whose school or daycare is closed or childcare provider is unavailable may be compensated at 2/3 of the employee's regular rate of pay, up to a maximum of $200 per day (and a total of $2,000).

Q: When calculating the number of hours of emergency paid sick leave pay due to employees, must overtime hours be included? (added 3.26.20)

A: Yes, the DOL says that employers must pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week. However, as mentioned above, total emergency paid sick leave is still limited to 80 hours. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of emergency paid sick leave in the first week and 30 hours of paid sick leave in the second week.

Note: Employers aren't required to pay the overtime premium for the emergency paid sick leave provided in excess of 40 hours, according to DOL guidance.

Q: What if employees only need a couple hours of emergency paid sick leave or only on certain days of the week … may they use emergency paid sick leave intermittently? (added 3.30.20)

A: The answer differs depending on whether the employee is teleworking or working at their normal workplace, according to DOL guidance.

Teleworking Employees:

Employees who are unable to telework their normal schedule of hours may use emergency paid sick leave intermittently, but only if the employer agrees to it. The DOL encourages employers and employees to collaborate to achieve flexibility and meet mutual needs.

Employees who are working at their normal workplace and who need emergency paid sick leave to care for their child because of COVID-19 related reasons may also take such leave intermittently, but only if the employer agrees to it, according to the guidance.

Emergency paid sick leave taken for any other covered reason (such as, isolation or quarantine) must:

Be taken in full-day increments.

Continue each day until the employee either (1) uses the full amount of paid sick leave or (2) no longer has qualifying reason for taking paid sick leave. This is because the intent of the FFCRA is to provide paid sick leave to keep the individual from spreading the virus to others.

Note: If the employee no longer has a qualifying reason for taking paid sick leave before they exhaust their emergency paid sick leave, they may take any remaining paid sick leave at a later time, until December 31, 2020, if another qualifying reason occurs.

Q: Can I ask for documentation from employees who request emergency paid sick leave? (added 3.30.20)

A: Employers may require employees to provide documentation of the reasons for their emergency paid sick leave, as specified in applicable IRS forms, instructions, and information.

The documentation should be retained by employers, especially those that wish to claim tax credits.

Q: How do I calculate the sick leave pay owed to an employee who doesn't work a fixed schedule?

A: For employees with variable work schedules, the determination of hours to be paid is based on the average hours the employee was scheduled per day over the six-month period ending on the date on which the employee takes such leave, including hours for which the employee took leave of any type. If the employee does not have six-months of work history with the employer, hours are based on the employee's reasonable expectation at the time of hire of the average hours the employee would normally be scheduled to work.

Q: How do I count hours worked by a part-time employee for purposes of emergency paid sick leave and public health emergency leave? (updated 3.30.20)

A: A part-time employee is entitled to leave for their average number of work hours in a two-week period. Therefore, you calculate hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee's schedule varies, you may use a six-month average to calculate the average daily hours. If this calculation cannot be made because the employee has not been employed for at least six months, use the number of hours that you and your employee agreed that the employee would work upon hiring. And if there is no such agreement, you may calculate the appropriate number of hours of leave based on the average hours per day the employee was scheduled to work over the entire term of their employment.

Q: When calculating the number of hours of emergency paid sick leave and public health emergency leave pay due to employees, must overtime hours be included? (added 3.30.20)

A: Yes, the DOL says that employers must pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week. However, as mentioned above, total emergency paid sick leave is still limited to 80 hours. For example, an employee who is scheduled to work 50 hours a week may take 50 hours of emergency paid sick leave in the first week and 30 hours of paid sick leave in the second week.

Note: Employers aren't required to pay the overtime premium for the emergency paid sick leave provided in excess of 40 hours, according to DOL guidance.

Q: Is the paid sick leave for caring for an individual on quarantine/isolation/self-quarantine limited to family members?

A: The law doesn't limit such leave to family members.

Q: We have two employees who are married. Are they both entitled to 10 days of emergency paid sick leave or can I limit them to a combined total of 10 days? What if they want to take it to care for the same person (such as, an individual who is subject to quarantine)? (added 3.26.20)

A: Each employee is entitled to 10 days of emergency paid sick leave. The law didn't include an exception for spouses. Barring subsequent federal guidance or rules indicating otherwise, employers may be required to provide each spouse with 10 days of emergency paid sick leave, including when it is to care for the same individual.

Q: Am I required to post a notice about emergency paid sick leave? What should I do if some or all of my employees are telecommuting at this point? (added 3.26.20)

A: Employers must post a notice describing the paid leave requirements in a conspicuous place on their premises. Click here to download the notice. For telecommuting employees, an employer may satisfy this requirement by emailing or direct mailing this notice to employees, or posting this notice on an employee information website.

6-6-3. Public Health Emergency Leave (PHEL) / Expanded FMLA

Q: Who is eligible for PHEL?

A: To be eligible for PHEL, an employee must:

Work for an employer with fewer than 500 employees.
Have worked for the employer for at least 30 calendar days prior to the leave.
However, under the law, an employer of a healthcare provider or an emergency responder may elect to exclude the employee from the PHEL requirement.

Q: How do I determine if an employee has been employed for 30 calendar days? (added 3.26.20)

A: The Department of Labor says that an employee is considered to have been employed for at least 30 calendar days if the employer had the employee on its payroll for the 30 calendar days immediately prior to the day your leave would begin. For example, if an employee wants to take leave on April 1, 2020, the employee would need to have been on the employer's payroll as of March 2, 2020.

Q: What absences are covered by the PHEL requirement?

A: Eligible employees may use PHEL to care for their child under 18 years of age if their school or place of care has been closed, or their childcare provider is unavailable, due to a public health emergency.

Q: What if employees only need a couple hours of PHEL or only on certain days of the week … may they use PHEL intermittently? (added 3.30.20)

A: Employees may use PHEL intermittently, but only if the employer agrees to it.

Q: How much PHEL can employees use?

A: Eligible employees are entitled to up to 12 weeks of PHEL.

Q: Can I request documentation from employees who request PHEL? (added 3.30.20)

A: If an employee requests PHEL, the employer may require the employee to provide documentation in support of such leave, to the extent permitted under the certification rules for conventional FMLA leave requests. For example, this could include a notice that has been posted on a government, school, or day care website, or published in a newspaper, or an email from an employee or official of the school, place of care, or child care provider.

The documentation should be retained by employers, especially those that wish to claim tax credits.

Q: Is PHEL paid or unpaid?

A: The first 10 days of PHEL may be unpaid, but the employee may elect to substitute any accrued paid leave, including emergency paid sick leave, during this period. After the first 10 days of leave, employees are entitled to be paid at a rate of no less than two-thirds their regular rate of pay, as defined by the FLSA, up to a maximum of $200 per day.

Q: How do I count hours worked by a part-time employee for purposes of PHEL? (added 3.26.20)

A: A part-time employee is entitled to leave for their average number of work hours in a two-week period. Therefore, you calculate hours of leave based on the number of hours the employee is normally scheduled to work. If the normal hours scheduled are unknown, or if the part-time employee's schedule varies, you may use a six-month average to calculate the average daily hours. If this calculation cannot be made because the employee has not been employed for at least six months, use the number of hours that you and your employee agreed that the employee would work upon hiring. And if there is no such agreement, you may calculate the appropriate number of hours of leave based on the average hours per day the employee was scheduled to work over the entire term of their employment.

Q: When calculating the number of hours of PHEL pay due to employees, must overtime hours be included? (added 3.26.20)

A: Yes, according to Department of Labor (DOL) guidance. The DOL says that the law requires employers to pay an employee for hours the employee would have been normally scheduled to work even if that is more than 40 hours in a week. However, employers aren't required to pay the overtime premium for PHEL provided in excess of 40 hours, according to Department of Labor guidance.

Q: At the end of PHEL, is the employee entitled to be reinstated to their job?

A: At the end of PHEL, the employer must generally return the employee to the same or equivalent position they had before they took the leave. However, employers with fewer than 25 employees are exempt from this requirement if:

The employee's position doesn't exist after PHEL due to economic conditions or other changes in operating conditions that affect employment and were caused by a public health emergency during the period of leave;
The employer makes reasonable efforts to restore the employee to a position equivalent to the position the employee held before the leave; and
The employer makes reasonable efforts to contact the employee if an equivalent position becomes available within the next year.

Q: If the employee is otherwise eligible for other types of FMLA, are they entitled to an additional 12 weeks of PHEL, or is the total leave for all FMLA reasons limited to 12 weeks in a year?

A: Total leave under the federal FMLA, including PHEL and for previously existing FMLA-qualifying situations, is generally limited to 12 weeks. For instance, if an employee uses 12 weeks of PHEL, they generally wouldn't be eligible for another 12 weeks of federal FMLA for the birth of a child (another FMLA-qualifying event) in the same 12-month period. However, several states have their own family and medical leave laws and, unless the state law is amended, it is possible the employee could be eligible for additional leave under state law in certain scenarios.

Note: The federal FMLA has an exception to the 12-week limit in the case of leave to care for a covered servicemember with a serious injury or illness, which has a 26-week limit. In cases in which employees use this type of leave and PHEL, the employee would be limited to a total of 26 weeks of leave in a single 12-month period, unless state law requires more.

Q: We have two employees who are married. Will they each be entitled to 12 weeks of PHEL to care for the same child whose school is closed, or can I limit them to a combined total of 12 weeks? (added 3.26.20)

A: Under existing FMLA rules, when spouses work for the same employer and each spouse is eligible to take FMLA leave, the law limits the combined amount of leave they may take for some, but not all, FMLA-qualifying leave reasons. However, the Families First Coronavirus Response Act didn't address PHEL when spouses work for the same employer. Barring subsequent Department of Labor (DOL) guidance or rules indicating otherwise, employers may be required to provide up to 12 weeks of PHEL to each spouse if their child's school/daycare is closed.

Q: Are employers required to provide notices to employees consistent with the rules surrounding other types of FMLA? (added 3.26.20)

A: The Families First Coronavirus Response Act didn't address the FMLA's notice requirements as they pertain to PHEL. Thus, barring subsequent federal guidance or rules indicating otherwise, employer's may be required to provide employees with the notices typically required under the FMLA. For instance, if the Department of Labor publishes an updated FMLA notice with the PHEL requirement, employers may be required to post it in the workplace. In addition, employees requesting leave may be entitled to receive written notice from the employer telling them whether they are eligible for PHEL and, if not eligible, the reasons why they are not eligible. When eligible for leave, employees are entitled to receive written notice of: (1) their rights and responsibilities in connection with such leave; (2) the designation of leave as PHEL-qualifying or non-qualifying, if not PHEL-qualifying, the reasons why; and (3) the amount of leave, if known, that will be counted against the employee's leave entitlement.

Note: In addition to displaying a poster, a covered employer who has any eligible employees may also be required to provide a general notice containing the same information that is in the poster in its employee handbook (or other written material about leave and benefits). If no handbook or written leave materials exist, the employer must distribute this general notice to new employees upon hire.

Q: Does the DOL have any additional guidance on the FFCRA? (added 3.30.20)

A: Yes. The DOL has provided a growing list of answers to frequently asked questions and other guidance. The agency continues to update this guidance regularly, so check back for updates.

Families First Coronavirus Response Act: Questions and Answers | U.S. Department of Labor

COVID-19 and the American Workplace | U.S. Department of Labor

6-6-4. Tax Credits

Q: What are the tax credits for employers that provide Emergency Paid Sick Leave and PHEL? (updated 3.26.20)

A: Under the law, all employers with fewer than 500 employees are allowed a credit against certain employer taxes for qualified paid sick leave wages paid by the employer. The credit is increased by specified health expenses (such as, employer-paid health plan premiums) that are excluded from employees' income.

The tax credit effectively reduces the amount of federal employment taxes that must be deposited with the IRS, usually within a few days of the payroll date. This is intended to provide the funds needed to pay sick and family leave benefits under the law. However, in some cases, such as complete closure of a business, the Treasury Department and IRS will process claims for advance payments of the tax credit.

Because the credit is fully refundable, employers will receive reimbursement of the amount paid, subject to the caps, even if their tax liability is less than the amount paid out in the required leave. Emergency paid sick leave and PHEL wages paid are also exempt from Social Security taxes otherwise imposed on the employer. We expect more guidance on these tax credits shortly.

Q: Are there limits on the tax credit?

A: Yes. Credits may not exceed the caps discussed above for emergency paid sick leave and PHEL.

General Handbook Acknowledgment

This Employee handbook is an important document intended to help you become acquainted with Institute of Epidermal Cell Therapy. This document is intended to provide guidelines and general descriptions only; it is not the final word in all cases. Individual circumstances may call for individual attention.

Because the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's operations may change, the contents of this handbook may be changed at any time, with or without notice, in an individual case or generally, at the sole discretion of management.

Please read the following statements and sign below to indicate your receipt and acknowledgment of this Employee handbook.

I have received and read a copy of Institute of Epidermal Cell Therapy's Employee handbook. I understand that the policies, rules and benefits described in it are subject to change at the sole discretion of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy at any time.

I further understand that my employment is terminable at will, either by myself or the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy, with or without cause or notice, regardless of the length of my employment or the granting of benefits of any kind.

I understand that no representative of Institute of Epidermal Cell Therapy other than the President may alter "at will" status and any such modification must be in a signed writing.

I understand that my signature below indicates that I have read and understand the above statements and that I have received a copy of the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy's Employee handbook.

Employee's Printed Name: ____________________

Employee's Signature: _______________________

Position: ___________________

Date: ___________________

The signed original copy of this acknowledgment should be given to management - it will be filed in your personnel file.

Receipt of Sexual Harassment Policy

It is Institute of Epidermal Cell Therapy's policy to prohibit harassment of any employee by any Supervisor, employee, customer or vendor on the basis of sex or gender. The purpose of this policy is not to regulate personal morality within the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy. It is to ensure that at the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy all employees are free from sexual harassment. While it is not easy to define precisely what types of conduct could constitute sexual harassment, examples of prohibited behavior include unwelcome sexual advances, requests for sexual favors, obscene gestures, displaying sexually graphic magazines, calendars or posters, sending sexually explicit e-mails, text messages and other verbal or physical conduct of a sexual nature, such as uninvited touching of a sexual nature or sexually related comments. Depending upon the circumstances, improper conduct also can include sexual joking, vulgar or offensive conversation or jokes, commenting about an employee's physical appearance, conversation about your own or someone else's sex life, or teasing or other conduct directed toward a person because of his or her gender which is sufficiently severe or pervasive to create an unprofessional and hostile working environment.

If the employee feels that he or she has been subjected to conduct which violates this policy, the employee should immediately report the matter to Director of Education. If unable for any reason to contact this person, or if the employee has not received a satisfactory response within five (5) business days after reporting any incident of perceived harassment, the employee should contact the President. If the person toward whom the complaint is directed is one of the individuals indicated above, the employee should contact any higher-level manager in his or her reporting hierarchy.

Every report of perceived harassment will be fully investigated and corrective action will be taken where appropriate. All complaints will be kept confidential to the extent possible, but confidentiality cannot be guaranteed. In addition, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will not allow any form of retaliation against individuals who report unwelcome conduct to management or who cooperate in the investigations of such reports in accordance with this policy.

If an employee feels that he or she has been subjected to any such retaliation, the employee should report it in the same manner in which a claim of perceived harassment would be reported under this policy. Violation of this policy including any improper retaliatory conduct will result in disciplinary action, up to and including discharge. All employees must cooperate with all investigations.

I have read and I understand Institute of Epidermal Cell Therapy's Sexual Harassment Policy.

Employee's Printed Name: ____________________

Employee's Signature: _______________________

Position: ___________________

Date: ___________________

The signed original copy of this receipt should be given to management - it will be filed in your personnel file.

Receipt of Non-Harassment Policy

It is Institute of Epidermal Cell Therapy's policy to prohibit intentional and unintentional harassment of any individual by another person on the basis of any protected classification including, but not limited to, race, color, national origin, disability, religion, marital status, veteran status, sexual orientation or age. The purpose of this policy is not to regulate our employees' personal morality, but to ensure that in the workplace, no one harasses another individual.

If an employee feels that he or she has been subjected to conduct which violates this policy, he or she should immediately report the matter to Director of Education. If the employee is unable for any reason to contact this person, or if the employee has not received a satisfactory response within five (5) business days after reporting any incident of what the employee perceives to be harassment, the employee should contact the President. If the person toward whom the complaint is directed is one of the individuals indicated above, the employee should contact any higher-level manager in his or her reporting hierarchy. Every report of perceived harassment will be fully investigated and corrective action will be taken where appropriate. All complaints will be kept confidential to the extent possible, but confidentiality cannot be guaranteed. In addition, the School of Esthetics & Research Inc./ Institute of Epidermal Cell Therapy will not allow any form of retaliation against individuals who report unwelcome conduct to management or who cooperate in the investigations of such reports in accordance with this policy. If an employee feels he or she has been subjected to any such retaliation, he or she should report it in the same manner in which the employee would report a claim of perceived harassment under this policy. Violation of this policy including any improper retaliatory conduct will result in disciplinary action, up to and including discharge. All employees must cooperate with all investigations.

I have read and I understand Institute of Epidermal Cell Therapy's Non-Harassment Policy.

Employee's Printed Name: ____________________

Employee's Signature: _______________________

Position: ___________________

Date: ___________________

The signed original copy of this receipt should be given to management - it will be filed in your personnel file.