Village Policy Updates - as of 01.01.2025

Villager’s,

As federal and state guidelines continue to evolve, we regularly review and update our policies to ensure compliance and provide clear, consistent expectations for our employees. In addition to meeting regulatory requirements, these updates help us align our practices with the realities of today’s

workplace.

We want to inform you of several important policy updates and additions that will take effect on January 1, 2026. These changes will be incorporated into the Employee Handbook.

PTO Policy Updates

Years 1–2: Adjusted PTO balance
Years 15–19: Adjusted PTO balance
Timing of Annual Balance: Beginning in 2026, PTO balances for the new calendar year will be issued with the first pay period rather than on January 1. This change streamlines our administrative process and ensures greater accuracy in the system. Employees should experience little to no impact, aside from seeing updated balances posted more promptly and reliably.
PTO Payout at Separation: PTO will be prorated based on the number of months worked in the calendar year. Please refer to the PTO policy for full details.

We understand that changes to PTO policies can raise questions, especially when it comes to payout practices. The good news is that most of these updates will have a positive or little to no impact on the majority of employees. Our goal is to ensure consistency and fairness across the organization while

aligning with common practices in our industry. For easy reference, specific changes are highlighted in the updated policy.

Social Media Policy

A new Social Media Policy will be added to the handbook as of January 1, 2026.

Artificial Intelligence (AI) Policy

The AI Policy, previously introduced by IT earlier this year, will now be formally included in the handbook.

Next Steps

The updated handbook will be available in Paylocity after 1/1/2026. All employees will be required to review and acknowledge the changes by completing a sign-off. Stay tuned for further information.

For ease of review, we have also attached the new and updated policies.

Social Media Policy

Purpose

At The Village Companies, we recognize that social networking can assist the Company in enhancing its brand, establishing professional relationships, and allowing an open exchange of ideas. The Company respects the rights of employees to create and use social media not only as a form of self-expression, but also as a means to further company business; however, these activities must be performed in a way so as to effectively safeguard the reputation and interests of the Company. When employees participate in social networking, they represent both themselves personally, as well as The Village Companies.

Definition

“Social Media” includes all forms of public, web-based communication. This includes but is not limited to the following:

Social Networking sites (e.g., Facebook, Twitter, LinkedIn, Tumblr)
Video and photo-sharing sites (e.g., You Tube, Instagram, Snapchat)
Blogs (Personal or corporate)
Forums and discussion groups

Policy Guidelines

The following guidelines apply regardless of whether the Social Media use occurs during work or non-working time and regardless of whether Company computers or other devices are used. Where no policy is set, professional judgment should be applied.

Be respectful and professional in all communications.
Avoid posting content that could be considered discriminatory, offensive, or harmful.
Ensure the accuracy of any information shared. Do not engage in misleading or deceptive practices.
Follow company policies, including confidentiality, non-disclosure, and anti-harassment policies. Do not share confidential or proprietary information about the company, clients, partners, or employees.
Be sure that authorization has been given by the employee to post an employee’s photo or videos on the company website or social media platform.
Adhere to all relevant laws and regulations.
Respond to comments and messages promptly and professionally. Remove any negative or harmful content or comments. Do not respond to crises or negative incidents.
Report any security breaches or suspicious activity to the IT immediately.

Personal Social Media Use

Employees that have personal social media accounts are expected to act responsibly and professionally when using and/or posting to such accounts. Employees must take into consideration the following when using their personal account:

If discussing company-related topics, an employee should disclose their affiliation with the company. Personal social media accounts should clearly state that opinions expressed are personal and do not represent the company.

Do not post content that could harm the reputation or privacy of colleagues, customers, vendors, or The Village Companies.
Avoid workplace disputes on social media.
Employees should not take any photographs of themselves or others while on company premises which could compromise confidentiality and/or inadvertently release proprietary information.
Excessive personal use that affects productivity is prohibited. Limited personal use of social media during work hours is permitted, provided it does not interfere with job responsibilities.

Violations of this policy may result in disciplinary action, up to and including termination. Employees should report any suspected violations to their leader or Human Resources.

AI policy

We're excited about how AI tools can help us work smarter and better! To make sure we're all on the same page as we explore these new technologies, here's a simple guide to using AI at The Village Companies.

Our Guiding Principles:

Be Smart: Use AI tools responsibly and think before you click.
Be Respectful: Treat AI like any other tool – use it ethically and avoid anything that could be harmful or biased.
Be Secure: Don't share sensitive company or personal info with public AI tools.
Be Transparent: Let your team / team leader know if you're using AI in your work, especially if it impacts others.

What's Okay (Generally):

Boosting Productivity: Using AI for things like drafting emails, summarizing documents, brainstorming ideas, and basic research.
Learning and Exploring: Trying out different AI tools to see how they might help your work.
Improving Creativity: Using AI for inspiration and generating initial drafts (just make sure the final work is your own!).

Things to Watch Out For (Please Don't Do These Without Checking First):

Sharing Confidential Information: Please, do not put any sensitive company data, customer's data, customer details, or internal documents into public AI tools. If you're unsure, ask your manager.
Believing Everything AI Says: AI can make mistakes! Always double-check information and use your own judgment. Don't rely solely on AI for critical decisions without verification.
Automating Critical Tasks Without Review: If AI is helping with something important, make sure a human reviews the output before it's finalized.
Using AI to Create Harmful or Biased Content: This includes anything discriminatory, offensive, or misleading.
1. It is important to realize that the AI can also create biased content. AI are trained on data sets that can be biased and can inherit these biases. Be sure to check the results of any AI for fairness and accuracy.
Pretending AI-Generated Content is Entirely Your Own: Be honest about using AI as a tool.

A Few Extra Friendly Reminders:

Stay Updated: AI is evolving fast. We will share any important updates or guidelines as things change.
Ask Questions: If you're ever unsure about how to use an AI tool, please don't hesitate to ask your manager or the IT Team. We're all learning together!

Do not use AI to circumvent Company Policies: Please carefully consider how your use applies to our standard company policies. You can find these in the employee handbook.

Keep it Simple, Keep it Smart!

We trust you to use AI tools in a way that benefits our work and upholds our company values. Let's embrace this technology thoughtfully and responsibly.

Paid Time Off (PTO)

Paid time off is available to eligible employees to provide opportunities for rest, relaxation, sick time, appointments and personal pursuits. Regular employees are eligible to accrue or earn and use paid time off as described in this policy. This policy does not apply to seasonal or co-op employment. The amount of paid time off employees receive each year increases with the length of their employment as shown in the schedule below. In the event that an employee started through a temporary staffing agency, their original start date with Village Associates, Inc. through the agency will be used for PTO accrual.

Full-Time Employment

Part-Time Employment

New Hires - Month of Hire

Hours Accrued Upon Hire

January, February, March

April, May, June

July, August, September

October, November, December

Number of Full Years Complete As Of January 1st

Hours Accrued As Of January(first pay period)

Less than 1

104

112

120

128

136

144

152

160

168

176

15-19

196

20 or more

216

108

Employees can request use of PTO only after it is accrued. Paid time off can be used in minimum increments of one-half hour. To take PTO, employees should request advance approval from their Team Lead according to the Attendance Policy. PTO is paid at the employee's base pay rate at the time of their leave. It does not Include overtime or any special forms of compensation such as Incentives, commissions, bonuses, or shift differentials.

Employees are permitted to carry over up to 40 hours of unused PTO into the next calendar year. Both the

carryover balance and the new year’s PTO accruals will be applied to the employees’ total PTO balance beginning

with the first pay period of the new calendar year, rather than on January 1.

PTO Payout Upon Separation or Termination of Employment

In the event of separation or termination of employment (for any reason including retirement), any accrued but unused paid time off (PTO) will be subject to the following conditions:

Minimum Employment Requirement:

PTO will only be paid out if the employee has completed a minimum of six (6) months of continuous employment.

Proration:

Any PTO payout will be prorated based on the number of full months of employment completed within the current calendar year.

Forfeiture Conditions:

Accrued PTO may be forfeited under certain circumstances, including but not limited to the following, each as determined in the sole discretion of company leadership:

Failure to provide adequate notice of resignation,
Failure to maintain professionalism and cooperation during the separation process,
Termination for cause or misconduct,

If the employee has used more PTO than accrued as of the separation date, the company reserves the right to recover the value of the excess time used by deducting it from the employee’s final paycheck, as permitted by applicable law.

Example:

An employee has a PTO accrual of 120 hours of PTO as of the first pay period in January. They provide advance notice and terminate employment in July. They have completed 6 full months of employment in the current calendar year. During this time, they have accrued 60 hours of PTO and have used 40 hours.

PTO Payout Calculation:

Total accrued PTO: 60 hours PTO used: 40 hours

PTO payout upon termination: 20 hours