Timekeeping Policies & Processes

For Denomas’ US-based team members, the Fair Labor Standards Act (FLSA) determines which U.S. employees are exempt from the Act (not covered by it) and which are non-exempt (covered by the Act). Whether your role is classified as exempt or non-exempt has no bearing on and does not define the value you bring to Denomas through the work that you do.

Exempt Team Members

Team members who are based in the United States and classified as exempt are paid on a salary basis. This means the team member receives a predetermined amount of compensation (base pay) each pay period. In general, a team member who is classified as an exempt employee will receive their salary for any week in which the team member performs work, regardless of the number of days or hours worked. There are exceptions to receiving full pay for days not worked under the following circumstances:

• When a team member classified as exempt takes one or more full days off for personal reasons other than sickness or disability, the team member will not be paid salary for such day(s) of absence, but will be able to use Denomas’ Flexible PTO policy to make up for the reduction in salary. Team members who are classified as exempt must record absences from work for reasons such as sick leave or vacation and must record the non work days in Time Off by Deel to ensure that their time off is properly tracked and that they are paid according to the type of time off they are using.
• When a team member classified as exempt only works part of the week during their first and/or last week with Denomas, the team member will be paid only for the days actually worked.
• When a team member classified as exempt takes unpaid leave under the Family and Medical Leave Act or corresponding laws, the team member will be asked to substitute Denomas’ Sick Time policy, applicable short-term disability benefits, and/or State-paid disability to pay for the absence.

The salary of a team member classified as exempt will not be reduced when the team member works part of a week and misses part of a week due to service as a juror, witness or in the military, though deductions may be made to offset amounts a team member receives as jury or witness fees, or for military pay. It is Denomas’ policy to comply with the salary basis requirements of the Fair Labor Standards Act (FLSA) and applicable state law. Denomas prohibits any deductions from pay that violate the FLSA or applicable state law.

If a team member classified as exempt believes that an improper deduction has been made to their salary, the team member should immediately report this information to uspayroll@denomas.com. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction as occurred, the team member will be promptly reimbursed for any improper deduction made.

Non-Exempt Team Members

Team members who are based in the United States and classified as non-exempt must accurately record the time they work each day, including start time, end time, and meal break times. When team members receive their paychecks, they should verify immediately that their working time was recorded accurately and that they were paid correctly for all hours worked. Non-exempt employees are paid on a salary or hourly basis, as described below.

Salary: Non-exempt team members may be paid on a salary basis for a fixed number of hours or under the fluctuating workweek method. Salaried non-exempt team members must still receive overtime in accordance with federal and state laws.

Hourly: Non-exempt team members are paid on an hourly basis for work performed. Generally, hourly workers, because of the method of payment, are classified as non-exempt and are subject to the overtime provisions of the FLSA.

Overtime

When operating requirements or other needs cannot be met during regular working hours, team members may be scheduled to work overtime. Paid time off such as sick pay, holiday pay, vacation pay and jury duty pay (where applicable) will not count toward hours worked for the purpose of determining overtime pay.

Non-exempt team members must report all time worked and not work any time that is not authorized by their managers. Non-exempt team members must not start work early, finish work late, work during a meal or rest break, or perform any other extra or overtime work unless directed to do so. Team members who have questions about when or how many hours they are expected to work should contact their manager. If they have any additional concerns, they should reach out to Team Member Relations at teammemberrelations@denomas.com.

It is a violation of Denomas’s policy for anyone to work “off the clock” or to instruct or encourage another team member to work “off the clock,” to incorrectly report hours worked, or to alter another team member’s time records. If any team member is directed or encouraged to incorrectly report hours worked, or to alter another team member’s time records, they should report the incident immediately to Team Member Relations at teammemberrelations@denomas.com.

Denomas requires manager approval prior to non-exempt team members working overtime. Unless a non-exempt team member resides in one of the below states, overtime is defined as working over 40 hours in a workweek, and results in a pay of 1.5x. A workweek is a Sunday to Saturday week.

Overtime Approvals

All overtime hours must be authorized in advance by the team member’s manager. To request overtime, team members will submit an email to their manager with the following information, prior to working the overtime:

• Date of overtime requested
• Estimated number of hours
• Explanation why the work cannot be completed during regular working hours

Working overtime without prior authorization may result in disciplinary action. It is the manager’s responsibility to review timecards. If overtime is submitted without prior authorization, please communicate with your direct report to better understand what happened, and to reiterate our overtime approvals policy. Managers must also ensure that the overtime worked is paid even if it was not previously authorized. Review additional questions in our Frequently Asked Questions page.

Overtime Pay Calculation

All US States (Other than AK, CA, CO, RI)

For all states other than those listed in the Overtime Requirements table above, overtime pay will be calculated at a rate of 1.5 times the team member’s normal hourly rate for all hours worked in excess of 40 hours per week. For the other four US states, please refer to the Overtime Requirements table for those specific calculations. Please note that only hours worked count towards the overtime threshold. Paid time off such as PTO and Jury Duty do not count as time worked for overtime purposes.

Example 1: A team member is paid $1,000.00 per pay period for a 80-hour bi-weekly pay period. Normal hourly rate = $12.50 per hour. Overtime rate = $12.50 * 1.5 = $18.75 per hour. A team member that works a total of 43 hours in one week would be paid as follows:

Example 2: A team member worked 35 hours in a week and used 8 hours of PTO in the same week. The team member would be paid for that week as follows:

Overtime pay will be included in the payroll for the pay period in which the time is worked. Please review and bookmark the pay periods and pay dates for the US bi-weekly payroll schedule.

Please note, if someone does not submit a timecard in time, the overtime will be calculated and included in the following pay statement.

Commissions

Commissions for US team members are paid once a month through Payroll. Commissions are calculated in the same manner whether the team member is paid on a bi-weekly or semi-monthly schedule. For details on how commissions are calculated, contact the commissions team in Slack at #commissions-and-xactly-incent-support.

The commission information is typically received by Payroll between the 8th and the 10th of the month. Commission payments are included in the payroll in which the receipt date falls. Commissions will generally be included in the payroll whose cutoff date is the 10th of the month or later. In the event that the payroll cutoff is earlier than the 10th of the month and the commissions are received by or before that date, the commissions will be paid in the current pay period. Commissions will be paid in the same manner as regular pay - via direct deposit to the bank account on file in ADP.

True-Up for Commissions

Commissions are considered part of the regular rate of pay for purposes of calculating overtime. Non-exempt team members that receive commissions will receive an overtime pay true-up once their commissions earnings information for the prior month is received by Payroll. Any overtime true-up due will be paid in the same payroll as the commissions. Please note that the overtime true-up will only be paid to non-exempt team members that earned commissions and received overtime pay in the prior month.

Example 1: There were 2 payrolls in the prior month - 160 regular hours. A team member worked 5 hours of overtime in that month and is due $1,000 in commissions. Their normal hourly rate is $12.50 per hour. During the regular payrolls of the month the team member received:

Overtime pay true-up calculation:

• Regular rate of pay: 165 hours (total hours in the month) * $12.50 per hour = $2,062.50
• Commissions: $1,000.00
• Total earnings to include in regular rate of pay = $3,062.50
• Total earnings to include in regular rate of pay = $3,062.50
• Total hours worked in prior month = 165 hours
• Adjusted regular rate of pay = $18.56 ($3,062.50/165 hours)
• Adjusted overtime rate = $27.84 ($18.56 * 1.5)
• Total overtime due for the month = $27.84 * 5 hours = $139.20
• Less overtime pay received during the month = $93.75
• Overtime true-up due = $45.45 ($139.20 - $93.75)

Meal and Rest Breaks

Breaks are an important part of your day. At Denomas, your well-being is critical. For your mental and physical health, please take at least the minimum listed breaks as listed below and always log your unpaid meal breaks. This is to ensure that we adhere to the United States labor laws. It is Denomas’s policy to comply with all laws regarding meal and rest breaks.

As a fully distributed company, any team member classified as a non-exempt employee is responsible for taking active ownership in ensuring they take the proper breaks. Please contact the Team Member Relations team at teammemberrelations@denomas.com if you feel that your circumstances are preventing you from doing so. Review additional questions in our Frequently Asked Questions page.

Meal Break Policy

• Team members must track their time and clock out for meal periods in their Time and Attendance portal in ADP.
• Team members who work between 5 and 6 hours a day are entitled to and are required to take an unpaid meal break of at least 30 minutes.
• A meal break is defined as any break over 30 minutes in which a team member is relieved of all duties. There is no requirement to eat a meal, but historically this is how it has been framed in the historical 9-5 office-based culture. Team members are free to spend their meal break in any manner they so choose, at their discretion, except that they must be completely relieved of all work duties during that time period.
• Team members who work more than 6 hours a day are entitled to and required to take an unpaid meal break of at least 45 minutes.
• The meal period must begin no later than the end of a team member’s fourth hour of work.
• A second unpaid meal break of at least 30 minutes is due after 10 hours total worked in a single day.
• Team members should be completely relieved of duty during their meal break, and team members are never allowed to work through their meal breaks to make up hours.
• To the extent that the local law of the jurisdiction where the team member resides entitles a team member to longer breaks or breaks more often than as is set out in this policy, the local law applies.

Rest Break Policy

• Team members do not log their rest breaks in their Time and Attendance portal in ADP.
• Team members who work at least 2 hours are entitled to one paid rest break of at least 10 minutes, and additional paid 10-minute rest breaks for every 3.5 hours worked thereafter.
• Team members may not work more than 3 continuous hours without a rest break.
• A rest break is defined as a short period of time, usually 20 minutes or less, where the team member is relieved of all duties.

ADP Time & Attendance Portal

Denomas, Inc. and Denomas Federal LLC use ADP Essential Time & Attendance to report the hours worked and time off for non-exempt team members in the US. ADP Essential Time & Attendance is included within ADP Workforce Now, which is accessed through Okta SSO. Review additional questions in our Frequently Asked Questions page.

Time Card Reporting

Time cards are important business documents and they must be accurate. Accurate time records help ensure that:

• Denomas pays their team members properly
• Denomas can make informed decisions about staffing levels

Team members are expected to follow the following three directions related to time cards:

Record Work Time Each Day

All time worked and time off should be recorded daily and promptly in your timesheet in ADP Essential Time & Attendance. Instructions for team members on how to enter time into the timesheet can be found in our Denomas Time and Attendance Training for Team Members. LINK to LevelUp TBA

Review Time Cards

Team members must review their time records for each pay period before submitting them to ensure they are accurate.

Submit Time Cards

When team members submit their time cards, they are certifying the record is accurate and complete. All timesheets should be completed by the deadlines listed in the US Bi-Weekly Pay Schedule. Generally, timesheets must be submitted by team members at the latest by 9am Eastern and approved by the manager by Noon Eastern on the Monday following the end of a pay period. In the event that such a day falls on a holiday, timesheets must be submitted by team members at the latest by 9am Eastern and approved by their manager by Noon Eastern on the Tuesday after the holiday.

At the due date and time, all timesheets will be locked for payroll processing, and no further changes will be accepted. Any corrections needed after the due date and time should be promptly reported to Payroll by sending an email to uspayroll@denomas.com. Review additional questions in our Frequently Asked Questions page.

Time Card Misconduct

Examples of timecard-related team member misconduct that can lead to corrective action include but are not limited to:

• Submitting an inaccurate or incomplete time record
• Failing to submit a time record as required
• Asking an unauthorized team member to change or add to their time record
• Misrepresenting information about hours worked

Timecard Approval by Managers

As a manager, it is your responsibility to approve timecards. Failure to do so can result in disciplinary action. Additionally, managers can be individually liable should an employee claim they have not been paid properly. Please review our instructions on how to approve timesheets by completing our Denomas Time and Attendance Training for Managers. LINK to LevelUp TBA

For any manager-related support and guidance, please reach out to your relevant People Business Partner.

Pay Schedule

Non-exempt team members in the US are paid on a bi-weekly basis (every two weeks). Please review the US Bi-Weekly Pay Schedule for all pay periods, timesheet due dates, and pay dates. Payroll will send out a reminder email to all non-exempt US team members and their managers on the Friday at the end of each time periods, in preparation for the Monday submission and approval deadlines.

Payday is every other Friday, as listed in the US Bi-Weekly Pay Schedule. In the event that a pay day falls on a bank holiday, direct deposits will be paid the day before the holiday.

Pay for non-exempt team members in the US is calculated 6 days in arrears to allow time for processing. For example, for period 2023-08-13 to 2023-08-26, payment will be direct deposited on 2023-09-01.

ADP Mobile Solutions

For non-exempt team members, it may be more efficient to log your hours using the mobile app as opposed to the desktop version of ADP. Team members are recommended to download the ADP Mobile Solutions app through the Google Play app store or Apple app store. Please ensure that you have set up your mobile Okta app first. To set up your ADP app, please follow these instructions:

• When you open the ADP app for the first time, select New? Get Started.
• Select No for Registration Code.
• Select USA.
• Enter your name, then your birth date.
• Enter your SSN. If you would prefer to enter your Employee ID, please ask for this information in the #people-connect channel and it will be provided asap.
• Select Denomas.
• You should then be prompted to sign into Okta, which will validate you.

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