Hr Assistant Team Member

ESCH GROUP MANAGEMENT

SONIC DRIVE IN

EMPLOYEE HANDBOOK

Revised: August 2018

EMPLOYEE HANDBOOK ACKNOWLEDGEMENT

I, the undersigned, acknowledge that I have received the SONIC Drive-In Employee Handbook and that I will read (or have read to me) the contents of the Handbook and comply with the standards contained in it.

I understand that:

THE HANDBOOK IS A GENERAL REFERENCE GUIDE. IT IS NOT A CONTRACT OF EMPLOYMENT, EITHER EXPRESS OR IMPLIED. THIS HANDBOOK IS NOT A PROMISE OR GUARANTEE OF CONTINUED EMPLOYMENT OR OF ANY PARTICULAR POLICY, PAY RATE, HOURS GUARANTEE, OR OTHER BENEFIT.

The Handbook replaces any previous handbook or manual, and to the extent inconsistent, any understanding, practice, policy or representation concerning the subject matters covered by the Handbook.

Except for the policy of at-will employment, all policies and procedures outlined in the Handbook may be changed or modified at the discretion of the Drive-In without advance notice to me.

My employment is considered to be “at will,” and I am not being employed for any specified time. This means either I or the Drive-In may end the employment relationship at any time, with or without cause or advance notice. I understand that at-will employment also means that the Drive-In may discipline me or change the terms of my employment, including but not limited to demotion, promotion, transfer, compensation, benefits, duties, and location of work, at its discretion, at any time, with or without cause or advance notice. I further understand that the foregoing provision regarding my status as an at-will employee may never be changed by any supervisor or other representative of the Drive-In.

I further understand that the Drive-In at which I work is independently owned and operated by one or more franchisees and that my employment is with the franchisee's sole proprietorship, partnership, corporation, or limited liability company.

I understand that I am not employed by SONIC Corp. or any of its subsidiary or related companies. SONIC Corp. does not control or make any decisions regarding the Drive-In’s employment practices or policies.

As applicable to the Drive-In where I am employed, my electronic signature and Handbook Acknowledgment acknowledges and confirms that I have received the SONIC Drive-In Employee Handbook and further acknowledges and confirms that I have reviewed and agree with the above provisions in this Employee Handbook Acknowledgment.

Employee Signature Date

Employee's Full Name (Printed - Must be Legible)

Drive-In Location (Address) Drive-In #

TABLE OF CONTENTS

EMPLOYEE HANDBOOK ACKNOWLEDGEMENT 2

TABLE OF CONTENTS 3

IMPORTANT INFORMATION ABOUT THIS HANDBOOK 5

SECTION I – Handbook Introduction 6

Mission Statement and Core Values 6

Teamwork 7

Union Free Workplace: 7

SECTION II – Equal Employment Opportunity and Non-Discrimination Policies 7

Equal Employment Opportunity 7

Non-Discrimination and Harassment-Free Workplace Policy 7

Accommodation of Individuals with Disabilities 9

Accommodation of Religious Beliefs and Practices 10

Non-Discrimination Against and Accommodation for Nursing Mothers 10

Genetic Information Nondiscrimination Act - GINA 10

Guests with Disabilities 11

I-9 Compliance Policy 11

Social Security Number Policy 11

SECTION III - Open Door Policy and Concern Resolution Procedure 12

SECTION IV - Workplace Practices and Standards of Conduct 12

Standards of Conduct 13

Conflict of Interest 13

Employment of Minors 14

Breaks and Meal Periods for Minors 14

Minors Driving 14

Restricted Access Policy 15

Drive-In Telephone/Personal Visits/Switchboard 15

Meetings 15

Progressive Discipline Guidelines 15

Drug-Free Workplace 16

Workplace Investigation and Searches 16

Theft 17

Return of Property 17

Solicitation, Distribution and Posting 17

SECTION V – Your Pay and Benefits 18

Pay Card 18

Paper Check 18

Direct Deposit 18

Pay Statements 18

Employee Benefits 18

Employee Meal Program 19

SECTION VI – Work Schedules and Wage and Hour Policies and Practices 19

Work Schedule 19

Reporting Your Hours and Compensation for All Hours Worked 20

Overtime 20

Off-the-Clock Work is prohibited 20

Employee Breaks and Meal Periods 21

Underpayment/Overpayment 21

Exempt/ Salaried Employees 21

Pay Procedures 22

Final Pay 22

SECTION VII - Policies Relating to Employee Tips 22

Notice to Employees Who Receive Tips 22

Tip Reporting Requirement 23

Additional Information about Tip Wage 24

Tip Rate Determination Agreement (TRDA) and Employee Responsibility Under the TRDA 24

SECTION VIII - Your Uniform and Related Standards 25

Uniform Standards: 25

Personal Appearance Standards: 26

SECTION IX - Workplace Attendance, Absences, and Employee Leave 29

Workplace Attendance 29

Family and Medical Leave Act (FMLA) Policy 29

Military Leave of Absence 33

SECTION X - Technology Related Policies 33

Computer Usage Policy 33

Password Security 33

Software 33

Internet Usage 34

Social Media Policy 34

Email and Instant Messaging 35

Picture Taking and Video Taping Inside the Drive-In 35

SECTION XI - Safety and Security Guidelines and Procedures 35

Employee Safety Guidelines 35

Use of Equipment 37

Work-Related Injuries and Related Benefits 37

Violence and Weapons in the Workplace 38

Food Tampering Policy 38

Contagious Illness Policy – Employee Management Responsibilities 38

IMPORTANT INFORMATION ABOUT THIS HANDBOOK

This Handbook contains several important notices required by law. It should be reviewed in its entirety. Additionally, this Handbook will provide you with information to help you know your employer and your job, and to answer some questions you may have. If you have any questions about the content of this Handbook, please direct them to your manager or supervisor.

THE HANDBOOK IS A GENERAL REFERENCE GUIDE. IT IS NOT A CONTRACT OF EMPLOYMENT, EITHER EXPRESS OR IMPLIED. THIS HANDBOOK IS NOT A PROMISE OR GUARANTEE OF CONTINUED EMPLOYMENT OR OF ANY PARTICULAR POLICY OR BENEFIT.

This Handbook replaces any previous handbook or manual, and to the extent inconsistent, any understanding, practice, policy or representation concerning the subject matters covered by the Handbook.

Except for the policy of at-will employment, all policies and procedures outlined in the Handbook may be changed or modified at the discretion of the Drive-In without advance notice.

Your employment with the Drive-In is considered to be “at will,” and you are not being employed for any specified time. This means either you or the Drive-In may end the employment relationship at any time, with or without cause or advance notice. At-will employment also means that the Drive-In may discipline you or change the terms of your employment, including but not limited to demotion, promotion, transfer, compensation, benefits, duties, and location of work, at its discretion, at any time, with or without cause or advance notice. The foregoing provision regarding your status as an at-will employee may not be changed by any supervisor or other representative of the Drive-In.

The SONIC Drive-In at which you work is part of the franchised SONIC Drive-In chain and is independently owned and operated by one or more franchisees. The franchisee's sole proprietorship, partnership, corporation or limited liability company is your employer.

The policies, practices and standards set forth in this Handbook apply to all employees and management persons having any authority over the Drive-In.

Nothing in this Handbook is intended to create, nor does create, any substantive rights for any employee beyond those which are recognized in the jurisdiction in which you are employed.

Not all of the Drive-In’s policies and procedures are set forth in the Handbook, which is intended to serve as a general guide to your employment. No provision of this Handbook is intended to apply if it conflicts with or is superseded by any requirement or prohibition contained in a federal, state, or local law or regulation.

In this Handbook, you will find an Acknowledgment Form, which will be signed electronically during onboarding using the company’s HR provider.

SECTION I – Handbook Introduction

Welcome To Our Team! We are excited you have become a member of the SONIC Drive-In team and look forward to working with you! Recognizing that our employees are our most valuable resource, we are committed to helping you succeed in your new job and want you to enjoy working here.

To help familiarize you with SONIC, we have developed this Handbook. It is meant to guide you on our basic policies. You should read the Handbook completely and retain it for future reference. Management is always willing to address any questions you have about your employment, the Company’s policies, or this Handbook.

Please keep the Handbook (and any additional policies you may receive) in a place that is easily accessible to you. That way you will be able to consult it as a resource for your work-related questions. You should also feel free to raise any questions you may have (about SONIC, your job, the Handbook, etc.) to a member of the Drive-In’s management team.

The SONIC Drive-In Story

The Long Road. SONIC Drive-In, founded by Troy Smith and originally named Top Hat Drive-In, began in 1953 as a hamburger and root beer stand in Shawnee, Oklahoma. SONIC’s introduction and unique use of curbside speakers allowed customers to place food orders without ever leaving their cars. This innovation spawned the slogan, “Service with the Speed of Sound” and a new name in 1959: SONIC Drive-In. SONIC Corp. is the Oklahoma City-based, publicly held company. Its subsidiary, SONIC Industries Inc., franchises SONIC Drive-In restaurants from coast-to-coast.

Twists and Turns. The SONIC Drive-In chain specializes in made-to-order food and is known for its specialty menu items and personal carhop service. Popular menu items include Toaster Sandwiches (hamburgers and sandwiches served on thick Texas Toast), Extra-Long Cheese Coneys (hot dogs with chili and cheese), fresh hamburgers, hand-made Onion Rings, Tater Tots and a variety of Frozen Favorites® desserts and Fountain Favorites® drinks such as Cream Pie Shakes and Cherry Limeades.

Cheers From the Crowd. With restaurants from coast-to-coast, SONIC Drive-In is the nation’s largest chain of Drive-In restaurants. Customers aren’t the only ones who recognize SONIC Drive-In’s commitment to quality and service as it has received high recognition in Entrepreneur magazine for achievements in franchise opportunities and in Forbes magazine for achievements in small company endeavors. With unyielding dedication to its guests and excellence in service, SONIC is truly “America’s Drive-In!”

Mission Statement and Core Values

Mission Statement:

To Become America's Most-Loved Restaurant Brand

Core Values:

We value:

Respect for everyone touched by the SONIC brand

Entrepreneurial spirit and the power of the individual

Importance of relationships as a way of life

Doing different and special things to surprise and delight everyone touched by the SONIC brand

As a Drive-In team member, we value your dedication to our Mission Statement and Core Values. Promoting and following our Core Values helps make your work environment enjoyable and fulfilling for all.

Teamwork

We believe in working together as a team. Genuine – “got your back” – teamwork. Why? Because through genuine teamwork comes a sense of achievement, equity and camaraderie resulting in an enjoyable and satisfying work experience and high-quality customer service. These qualities lay the foundation for achieving our mission: “To become America’s Most-Loved Restaurant Brand.”

Union Free Workplace:

Our SONIC Drive-In restaurants are not unionized. Throughout our history, employees have been able to deal directly with management in resolving any issues they may have. Through the Open Door Policy and Concern Resolution Procedure, we are able to facilitate prompt and effective resolutions of employee concerns making third party representation unnecessary. Esch Group Management believes that union representation would not be to the advantage of our employees, our guests or the continued success of the Drive-In. Notwithstanding this provision, the Drive-In will not retaliate against employees that are in a Union or that engage in protected, concerted activity. We encourage all employees to give management the opportunity to address any concerns they may have.

SECTION II – Equal Employment Opportunity and Non-Discrimination Policies

Equal Employment Opportunity

The Drive-In is an equal opportunity employer and, as such, provides employment opportunities to all employees and applicants for employment without regard to race, color, national origin, ancestry, citizenship status, veteran or military status (as defined by USERRA), disability, protected medical condition, religion, age, genetic information, sex (including pregnancy, childbirth and related medical conditions), gender identity and expression, sexual orientation, or other legally protected status or characteristic under applicable federal, state, or locals. The Drive-In complies with all applicable federal, state and local laws governing non-discrimination in employment.

This policy applies to all aspects of our employment practices, including but not limited to, recruiting, selection, promotion, transfers, rate of pay, discipline, termination, benefits, training, leaves of absence and all other terms and conditions of employment.

Non-Discrimination and Harassment-Free Workplace Policy

Mutual respect is the basis of all professional relationships. All employees are personally accountable for promoting equal opportunity practices and a harassment-free work environment. Managers are instructed to use all reasonable means to correct incidents of unlawful discrimination and harassment.

The Drive-In prohibits discrimination and harassment based on race, color, national origin, ancestry, citizenship status, veteran or military status (as defined by USERRA), disability, protected medical condition, religion, age, genetic information, sex (including pregnancy, childbirth and related medical conditions), gender identity and expression, sexual orientation, or other legally protected status or characteristic under applicable federal, state, or local laws.

UNLAWFUL DISCRIMINATION, HARASSMENT OR RETALIATION OF ANY APPLICANT OR EMPLOYEE WILL NOT BE TOLERATED AND MAY RESULT IN DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION OF EMPLOYMENT.

This policy prohibits all persons associated with the Drive-In (including but not limited to employees, managers, Drive-In Operators, General Managers, Supervisors, Multi-Unit Supervisors and vendors) from discriminating against, harassing or retaliating against any employee or applicant.

All employees and members of the management team should report any observed discrimination or harassment, whether or not the behavior is directed at you. All employees and management team members are required to comply with this policy and use every effort to further its implementation. The Drive-In will take prompt, remedial action to end conduct in violation of this policy.

This policy applies to all conduct between employees of the Drive-In, regardless of whether it occurs in the workplace itself, or off Company premises, including social activities conducted or sponsored by the Company, and business trips. It also applies to material digitally transmitted by fax, e-mail, internet or text message. This policy also applies to social media use on authorized corporate channels and to any personal use of social media when communications relating to the Drive-In or its products, guests or employees are in violation of this policy.

This policy extends to all persons associated with Esch Group Management and the Drive-In, including but not limited to employees, supervisors, partners, Drive-In management, vendors, customers and other members of the general public.

The conduct described below is unacceptable and prohibited in the workplace itself, as well as in all other work-related settings, such as business trips and business-related social events, and is, at all times, strictly prohibited.

The conduct described below includes examples of inappropriate and unacceptable conduct. However, because harassment and discrimination can take many forms, it is not intended to define all types of prohibited conduct.

Sexual Harassment: Sexual harassment consists of unwelcome conduct of a sexual nature when any of the following is true:

Submission to the conduct is either an explicit or implicit term or condition of employment; or

There is a promise or implied promise of preferential treatment (such as a promotion, raise, favorable work hours, etc.) for submission to the conduct; or

There is a threat of or actual adverse employment action (such as termination of employment, demotion, reduction of hours or pay, etc.) for rejection of the conduct; or

Such conduct has the effect of creating an intimidating, hostile or offensive work environment or unreasonably interferes with an employee’s work performance.

Sexual harassment includes a broad spectrum of conduct including harassment based on sex (including harassment between persons of the same gender, by a female against a male, or by a male against a female), gender identity, gender expression and sexual orientation (meaning, for example, one’s heterosexuality or homosexuality). By way of illustration only, and not limitation, examples of conduct that may constitute sexual harassment are:

Sexual advances or requests for sexual favors (this includes repeated, unwelcome requests for dates)

Sexually oriented comments, jokes, teasing, language or gestures

Telling others about your own or another person’s sexual relationships or asking questions of others about the same

Remarks of a sexual nature about a person’s clothing, body, sexual activity or previous sexual experience

Verbal abuse of a sexual nature

Leering, staring, catcalls or whistling of a sexual nature

Intentional physical contact that is sexual in nature and unwelcome by the recipient, such as touching, pinching, patting, grabbing, brushing against or poking another

Displaying, reading, or bringing into the Drive-In pictures, posters, calendars, graffiti, objects or other materials that are sexually suggestive or demeaning

Physical assault

Physical or verbal abuse concerning an individual’s actual sex or the perception of the individual’s sex

Physical or verbal abuse concerning an individual’s characteristics such as vocal pitch, the size and shape of an individual’s body, including remarks that a male is too feminine or a female is too masculine

Text messaging or electronically transmitting (or requesting for a person to text message or electronically transmit) sexually suggestive or demeaning comments, jokes, graphics or pictures (“sexting”)

Other Types of Unlawful Harassment: Harassment on the basis of any other protected characteristic is also prohibited. Under this policy, harassment is verbal or physical conduct that degrades or shows hostility toward an individual because of his/her race, color, national origin, ancestry, military status (as defined by USERRA), physical or mental disability, religion, age, genetic information, sex (including pregnancy, childbirth and related medical conditions, gender identity, and sexual orientation) or other legally protected status or characteristic when any of the following is true:

The conduct has the purpose or effect of creating an intimidating, hostile or offensive work environment; or

The conduct has the purpose or effect of unreasonably interfering with an employee’s work performance; or

The conduct otherwise adversely affects an individual’s employment opportunities.

Harassing conduct includes, but is not limited to: derogatory comments, slurs or negative stereotyping; threatening, intimidating or hostile acts; demeaning or degrading jokes; basing employment decisions or treating individuals differently based on protected status or characteristic; or displaying, bringing onto Drive-In property, or communicating (electronically or otherwise) written or graphic material that degrades or shows hostility toward an individual or group because of their legally protected status or characteristic.

Discrimination: It is a violation of this policy to discriminate against an applicant for employment or employee on the basis of race, color, national origin, ancestry, citizenship status, veteran or military status (as defined by USERRA), disability, protected medical condition, religion, age, genetic information, sex (including pregnancy, childbirth and related medical conditions), gender identity and expression, sexual orientation, or other legally protected status or characteristic under applicable federal, state, or local laws.

This policy applies to all employment related decisions such as recruitment, hiring, transfers, promotions, compensation, benefits, training, work assignments and termination of employment.

Retaliation: It is a violation of this policy to take any adverse employment action against an employee because that employee has made a good faith complaint about or participated in an investigation concerning harassment, discrimination or retaliation or engaged in any other protected activity.

Reporting a Complaint: If you believe you have been discriminated against, harassed or retaliated against in violation of this policy or if you have witnessed or otherwise learned of such conduct, you must report the incident. You should report it to the Drive-In’s Manager or Supervisor. You may also report the incident to the Director of Human Resources, Megan Williams, at 479-***-****, or to the HR Assistant, Carol Parker, at 479-***-****. If, for any reason, you are not comfortable going to such person or if you are not satisfied with the results you received from such person, contact the principal owner of the Drive-In. Any and all complaints will be investigated as promptly as possible.

If the Drive In’s Manager, Supervisor, or Multi-Unit Supervisor becomes aware that harassment or discrimination is occurring (either from personal observation or as a result of an employee coming forward), the management team member must report the situation to his or her supervisor.

If you do not report harassment, discrimination, or retaliation pursuant to this policy, the Drive-In may not be able to investigate and possibly remedy the situation. No employee will be penalized or sanctioned for “going over the head” or his or her supervisor to report discrimination, discrimination, or retaliation.

Confidentiality: Your complaint will be investigated as promptly as possible and we will maintain the confidentiality of your complaint and our investigation to the greatest extent possible under the circumstances. We ask that you do the same. Complaints and/or investigations are not proper topics for general discussion with other Drive-In employees or gossip.

Corrective Action: Appropriate corrective action, up to and including immediate termination of employment, may be taken against any person found to have violated this policy. All people associated with the Drive-In are required to be truthful, accurate and cooperative during any investigation. Intentionally making a false complaint or pressuring others to be untruthful or falsely denying, lying about or otherwise covering up or attempting to cover up misconduct or conduct that is the subject of an investigation is strictly prohibited and such conduct is subject to disciplinary action, up to and including termination of employment

Accommodation of Individuals with Disabilities

The Drive-In complies with the Americans with Disability Act of 1990 (“ADA”), the amendments to the ADA and applicable state and local laws providing for equal opportunity in all aspects of employment for qualified individuals with disabilities.

The ADA and other applicable state and federal laws prohibit employment discrimination against qualified individuals with physical or mental disabilities and other legally protected medical conditions. The Drive-In prohibits discrimination on the basis of qualified physical and mental disabilities and other legally protected medical conditions with respect to all employment practices and other employment related activities. The ADA and related laws also require employers to provide reasonable accommodations to qualified persons with a disability. In accordance with applicable law, the Drive-In may grant a reasonable accommodation for a qualifying physical or mental disability or other legally protected medical condition, provided the requested accommodation does not impose undue hardship on the Drive-In or does not present a direct threat to the health or safety of others in the workplace or to the individual.

If you believe that you need an accommodation to perform the essential functions of your job you must contact the Drive-In’s Multi-Unit Supervisor to request an accommodation. The Drive-In Multi-Unit Supervisor will work with you and the Drive-In’s management in the accommodation process to explore and identify a reasonable accommodation for your individual situation. Employees are expected to fully cooperate in the interactive accommodation process. Employees who do not meaningfully cooperate in the accommodation process may waive their right to accommodation in accordance with applicable law.

If a member of management becomes aware that an employee may need an accommodation under this policy, the manager must advise the Multi-Unit Supervisor. The Multi-Unit Supervisor will then contact the employee and initiate the interactive accommodation process.

Accommodation of Religious Beliefs and Practices

The Drive-In complies with Title VII of the Civil Rights Act and applicable state and local laws concerning the accommodation of religious beliefs and practices. We will provide reasonable accommodation for an employee’s sincerely held religious observances and practices when the employee brings such matters to management’s attention and a reasonable accommodation can be identified.

A reasonable accommodation is one that eliminates the conflict between an employee’s religious beliefs or practices and the employee’s job requirements, without causing undue hardship to the Drive-In or co-workers.

Individuals who seek a reasonable accommodation for their sincerely held religious beliefs or practices must notify the Drive-In’s Multi-Unit Supervisor. If, for any reason, you are not comfortable going to such person or if you are not satisfied with the results you received from such person, contact the Principal Owner of the Drive-In.

The employee’s request will be reviewed, and the employee will be given the opportunity to engage in an interactive dialogue regarding the requested accommodation. Employees are expected to fully cooperate with their Drive-In’s accommodation process. Employees who do not meaningfully cooperate in this established accommodation process may waive their right to accommodation in accordance with applicable law.

Non-Discrimination Against and Accommodation for Nursing Mothers

The Drive-In complies with all laws prohibiting discrimination against nursing mothers in the workplace. The Drive-In will provide reasonable unpaid break time or permit an employee to use paid break time, meal time, or both, each day to allow the employee to express breast milk for her nursing child. Please contact your Drive-In Operator/General Manager if you require accommodation.

Genetic Information Nondiscrimination Act - GINA

A federal law known as “GINA” prohibits employers from obtaining genetic information about an applicant or employee except in very limited situations. It also protects applicants and employees from being discriminated against, harassed or retaliated against on the basis of genetic information.

Genetic information includes information about an individual’s genetic tests and genetic tests of an individual’s family members, as well as information about any disease disorder, or condition of a family members – i.e., an individual’s family medical history.

The Drive-In does not use genetic information to make employment decisions nor does it use such information to make determinations under its group health plans. It is a violation of this policy to ask for or obtain genetic information about an applicant or an employee, unless specifically authorized by law.

Under the law, there are certain exceptions pursuant to which an employer may be permitted to obtain an employee’s genetic information. These exceptions include, but are not limited to, inadvertent acquisition and voluntary disclosure of genetic information, as well as obtaining genetic information in response to an employer’s need to assess a requested leave under the Family and Medical Leave Act. In those circumstances where genetic information is maintained, it will be retained in a confidential manner and in a separate medical file so as to prevent unlawful disclosure.

All employees are required to be sensitive to the scope of day-to-day discussions and avoid discussion of their individual or family medical history in the workplace. Similarly, should any employee initiate discussions with you on this topic, you must refrain from discussing such topics and terminate the conversation immediately.

Guests with Disabilities

There are many different types of disabilities that may require Drive-In employees to provide special assistance to our guests. These include, but are not limited to, speech, hearing, visual, and mobility disabilities. All Company employees must provide

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