Employee Classifications

Unless otherwise specifically stated in this Manual, the policies and procedures in this Manual apply to all Sodexo Live! employees, whether full-time, part-time or temporary.

As managers, it is important for you to know in which category each of your employees fits. The three categories are defined as follows:

Temporary Employee

A temporary employee works on special assignments or projects on an “as needed” or “on-call” basis.

Temporary employees are not eligible for any Company benefits, may not work more than 999 hours in the calendar year, and must be terminated (and rehired, if appropriate) each calendar year.

Each temporary employee must sign a “Temporary Employee Acknowledgment” form, which must be retained in the employee’s personnel file.

Full-Time Employee

A full-time employee works at least 30 hours per week (not on a temporary basis) and is expected to do so for at least two consecutive quarters or for a total period of at least 34 weeks in a fiscal year.

Full-time employees are eligible for all Company benefits.

Part-Time Employee

A part-time employee works fewer than 30 hours per week on average (not on a temporary basis), and is expected to do so over at least two consecutive quarters in a fiscal year.

If a part-time employee works a minimum of 1,000 hours in a calendar year and meets the criteria set by the 401(k) Plan, he or she is eligible to participate in the 401(k) Retirement and Savings Plan.

Except as noted above, or unless otherwise required by applicable local law, part-time employees are not entitled to any Company benefits.

Every prospective and actual employee should know in which category he or she fits and should be notified whenever events trigger a change in category.

Change in Status 

Part-Time –> Full-Time

Change the employee’s status in HCM, indicating the effective date and type of status change. Once approved by the necessary manager(s), it will be sent to the Corporate Payroll/HR Department.

Provide the employee with pertinent information relating to full-time status.

The employee’s eligibility for coverage under benefits programs will depend upon the current terms of each benefits program or policy. The Corporate Human Resources Department will provide the employee with benefits information as appropriate.

Full-time –> Part-time

First consult with Corporate Human Resources to determine status as it relate to benefits eligibility.

If eligible, change the employee’s status in HCM, indicating the effective date and type of status change. Once approved by the necessary manager(s), it will be sent to the Corporate Payroll/HR Department.

Inactive Period

Any employee who does not actually work for a period in excess of one year is automatically terminated as an employee.

Exempt and Non-Exempt Classifications 

Under applicable federal and state laws, each salaried employee must also be classified as “exempt” or “non-exempt” from eligibility for minimum wage, overtime pay and certain other pay benefits and practices.

It is important for managers to understand the two concepts.

Exempt

The term “exempt” means the employee is exempt from (in other words, not subject to) minimum wage and overtime requirements under applicable laws. Exempt employees must be paid on a salaried basis.­­

Non-Exempt

The term “non-exempt” means the employee is entitled to receive the minimum wage and is eligible for overtime pay under applicable laws. Applicable state laws and union collective bargaining agreements may dictate even more generous requirements; see state law addendum for your applicable state.

Some positions are easily classified. Other positions may require careful analysis.

All hourly employees are entitled to receive the minimum wage and are eligible for overtime pay. Applicable state laws and union collective bargaining agreements may dictate even more generous requirements; see state law addendum for your applicable state.

Eligibility for overtime pay is not negotiable and may not be bargained between an employee and the Company. In other words, even if an employee wants to be exempt, and you want to pay the person a higher salary to make up for ineligibility for overtime, you cannot do so if the actual job duties fall into the non-exempt status.

Moreover, the status is determined by the actual activities of the employee occupying a position, and not simply by the title of the position.

Although the Corporate Human Resources Department ultimately must classify all positions, managers should be generally familiar with the categories of exemptions under applicable federal law. State laws sometimes impose additional exemption requirements.

The federal regulations contain very specific exemptions for the following categories:

• Executive
• Administrative
• Professional
• Learned Professional
• Outside Salespeople
• Computer Professional
• Highly Compensated Employees

The titles of these exemptions can be deceptively simple; however, each contains very specific criteria that must all be met for a position to fit within it.

For example, chefs, such as executive chefs and sous chefs, who have attained a four-year specialized academic degree in a culinary arts program, generally meet the duty requirements for the learned professional exemption.  The learned professional exemption is not available to cooks who perform predominantly routine mental, manual, mechanical or physical work.

As a result, the Corporate Human Resources Department ultimately must determine the appropriate classification for each position. If you have any questions or are uncertain about an employee’s status as exempt or non-exempt, contact the Corporate Human Resources Department for clarification.

Employment At-Will 

Meaning 

Employment “at-will” means that the employee and the Company may each terminate the employment relationship at any time, for any reason or no reason.

Application 

Each employee of Sodexo Live! is an “at-will” employee. The only permissible exceptions to the foregoing may be made (a) under a written agreement for a definite term, signed by an executive officer of the Company (e.g., CEO, CFO, General Counsel), or (b) under collective bargaining agreements governing specific union employees.

Informing Employees 

Unless one of the two above exceptions applies, all employees must be informed that their employment is strictly “at-will” and cannot be changed by any oral or written statement to the contrary.

No Contrary Actions or Statements 

Neither the existence, nor the employee’s completion, of an introductory, probationary or trial period of employment, nor the conferral of “regular” employee status on any employee, changes or negates an employee’s “at-will” employment status. Managers may not make oral or written statements to prospective or current employees that could be construed as altering the “at-will” nature of employment or implying that discharge will occur only for “cause.” Similarly, employees should never be referred to as “permanent” employees of the Company.