Employment Categories It is the intent of Wilkinson/Ace to clarify the definitions of employment classifications so that employees understand their employment status and benefit eligibility. Each employee is designated as either NONEXEMPT or EXEMPT from federal and state wage and hour laws. NONEXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT employees are excluded from specific provisions of federal and state wage and hour laws. An employee's EXEMPT or NONEXEMPT classification may be changed only upon written notification by Wilkinson/Ace management. In addition to the above categories, each employee will belong to one other employment category: REGULAR FULL-TIME employees are those who are not in a temporary or introductory status and who are regularly scheduled to work Wilkinson/Ace's full-time schedule, which consists of at least 30 hours of work per week. Generally, they are eligible for Wilkinson/Ace's benefit package, subject to the terms, conditions, and limitations of each benefit program. PART-TIME employees are those who are not assigned to a temporary or introductory status and who are regularly scheduled to work less than 30 hours per week. While they do receive all legally mandated benefits (such as Social Security and workers' compensation insurance), they are ineligible for all of Wilkinson/Ace's other benefit programs. INTRODUCTORY employees are those whose performance is being evaluated to determine whether further employment in a specific position or with Wilkinson/Ace is appropriate. Employees who satisfactorily complete the introductory period will be notified of their new employment classification. TEMPORARY employees are those who are hired as interim replacements, to temporarily supplement the work force, or to assist in the completion of a specific project. Employment assignments in this category are of a limited duration. Employment beyond any initially stated period does not in any way imply a change in employment status. Temporary employees retain that status unless and until notified of a change. While temporary employees receive all legally mandated benefits (such as workers' compensation insurance and Social Security), they are ineligible for all of Wilkinson/Ace's other benefit programs. CONTRACT employees include all personnel assigned to jobs who are not directly employed by the company, but who have 3rd party contracts with a contract labor supply company. Benefit and compensation issues for contract employees should be directed to the contract labor supply company. Policy No. 201