1. Massachusetts Sick Leave Compliance 1 June 2015

2. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Overview 2 Accrual begins July 1, 2015 or date of hire, whichever is later. Employees are not entitled to use sick leave until 90 days of employment. Employees accrue 1 hour of sick pay for every 30 hours worked, both overtime and regular hours are counted towards the accrual rate. Hours worked outside of MA count towards the accrual if the employee works more hours in MA than any other jurisdiction. Salaried, exempt employees are deemed to have worked 40 hours per week unless their workweek is less than 40 hours. Employees are allowed to accrue up to 40 hours per calendar year. All unused hours roll over from year to year, but usage is capped at 40 hours per year. Employers are allowed to cap accruals for employees who have a bank of 40 hours until the employee uses time. Randstad will adopt this policy. Randstad will allow usage of sick time in 1 hour increments. Employee must be on assignment in order to use the sick time.

3. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Accruals 3 An employee is eligible to accrue and use earned sick time if the employee’s primary place of work is in Massachusetts. An employee need not spend more than 50% of working time in Massachusetts for it to be his or her primary place of work. Example: A painter with a single employer works 40% of her hours in Massachusetts, 30% in New Hampshire and 30% in other states. Massachusetts is her primary place of work. If an employee is eligible to accrue and use earned sick time then all hours the employee works regardless of location of the work must be applied toward accrual of earned sick time. Example: In a single year, an employee of a catering company works 900 hours in Massachusetts and 150 hours in other states. The caterer will accrue earned sick time on all 1,050 hours worked for the catering company. Eligible employees permanently transferred to another state but remaining with the same employer will no longer accrue earned sick time but may use their accrued time.

4. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Rate of Pay 4 Same Hourly Rate For employees compensated on an hourly basis, the same hourly rate means the employee’s regular hourly rate. For employees who receive different pay rates for hourly work from the same employer, the same hourly rate means either: (a) the wages the employee would have been paid for the hours absent during use of earned sick time if the employee had worked; or (b) the blended rate, determined by taking the weighted average of all regular rates of pay over the previous pay period, month, quarter or other established period of time the employer customarily uses to calculate blended rates for similar purposes. Whatever method the employer elects to determine the same hourly rate, (a) or (b) above, the employer must use a consistent method for each employee throughout a benefit year. For salary, exempt the same hourly rate shall be calculated based on the employee’s normal salary/40 hours or the regular number of hours in a work week if salary is based upon less than 40 hours. For employees paid on commission (whether base wage plus commission or commission only), the same hourly rate means the greater of the base wage or the effective minimum wage under MA law ($9.00/hr as of 1/1/15). The same hourly rate shall not include: (a) sums paid as commissions, drawing accounts, bonuses, or other incentive pay based on sales or production; (b) contributions irrevocably made by an employer to a trustee or third person pursuant to a bona fide plan for providing old-age, retirement, life, accident, or health insurance, and any other employee benefit plans; (c) overtime, holiday pay, or other premium rates. Where an employee’s regular hourly rate is a “differential rate,” meaning a different wage rate paid for the same work performed under differing conditions (e.g. a night shift), the “differential rate” is not a premium and shall be paid as the sick leave rate.

5. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Required Documentation 5 Documentation - An employer may require written documentation for an employee’s use of earned sick time that: exceeds 24 consecutively scheduled work hours; exceeds 3 consecutive days on which the employee was scheduled to work; occurs within 2 weeks prior to an employee’s final scheduled day of work before termination of employment, except in the case of temporary employees; occurs after 4 unforeseeable and undocumented absences within a 3-month period; or for employees aged 17 and under, occurs after 3 unforeseeable and undocumented absences within a 3-month period.

6. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Attendance Policies 6 The statute prohibits an employer from disciplining an employee for using sick days accrued under the statute. If an employee used paid sick days for the purposes described in the statute, disciplining the employee for taking “unexcused” absences could give rise to a retaliation claim. If the talent calls in and is using protected sick time for the absence, the entire day should be considered protected and should not be counted as an unexcused (or unscheduled) absence under the attendance policies. Of course, we would only need to pay them based on the time they have accrued. We need to protect ourselves from claims of retaliation by educating our clients that absences due to sick leave are protected and that the absence cannot be the basis for discharging. We can discipline for legitimate business reasons for absences that take place after an employee has exhausted his or her annual allotment of state mandated paid sick days. The employer may discipline employees for clear pattern of using earned sick time before or after weekends or holidays.

7. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Additional Comments 7 Employees are not entitled to receive a payout upon termination for any accrued and unused sick time unless the paid sick time is rolled into a PTO plan for which a payout may be due. Break in Service: Following a break in service of up to four months, an employee shall maintain the right to use any unused earned sick time accrued before the break in service. Following a break in service of between four and 12 months, an employee shall maintain the right to use earned sick time accrued before the break in service if the employee’s unused bank of earned sick time equals or exceeds 10 hours. Following a break in service of up to twelve months, employees maintain their vesting days from the employer and do not need to restart the 90-day vesting period.

8. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Communications 8 All new hires should be given the updated Onboarding Notice beginning June 22, 2015. Benefits will issue the sick leave notice by July 1, 2015 to all Associates and Talent active as of June 19, 2015. Branches/Offices have posting requirement. Legal Alert Job Aid

9. To edit date & footer title choose View>Header/Footer Change fixed date to presentation date Change footer field to title of the presentation Click on apply to all for changes on all current and new slides. Known Issues, Earnings Codes, Enhancements 9 Offices/Branches do not have access to view accruals. (9.0) Benefits is manually handling the leaves for RGS and PICs, validating accruals for RP Offices/Branches have access to pull Leave Accrual report to view balances (8.3) Eligibility to use leave (reports) being created in 9.0 (InfoCenter) and 8.3 (Cognos/Enterprise Reporting)