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The following is an example of PART of one section out of the Employee Handbook, Annotated, the "Company Benefits" section. The text below in blue italics is the "annotation." The annotations are instructions and information to you regarding the preceding paragraph.

You May Modify and Use This Page Without Further Permission

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COMPANY BENEFITS

• The foregoing sections should be kept, modified, or deleted entirely according to the practice of your office.

Medical Insurance

After 60 days of consecutive employment, all regular full-time employees are covered by the Office’s group medical plan. Temporary, introductory, and part-time employees are not eligible for these medical benefits. Eligibility requirements and further information concerning insurance benefits are described in the Summary Plan Description or an equivalent document which will be furnished to you.

You should verify your eligibility for coverage before undergoing treatment in order to ensure that the treatment is covered. To verify your insurance coverage for medical treatment or problems, or if you need claim forms, contact your supervisor.

You must tell your supervisor if your address changes, if you get married or divorced, of if the number of your dependents changes. This office reserves the right to change, amend, or discontinue the benefits it offers to its employees at any time and without further notice. The Office’s right to make these changes is not limited by your length of service, or by your reliance on the availability of these benefits in deciding whether to accept, continue, or retire from employment with this Office.

• Only a brief explanation of medical insurance benefits should ever be placed in the handbook. A similarly short explanation of any pension plan, employee savings plan, dental, vision, life insurance, child care, or other benefit should be included. Employees should be directed to the plan literature for a more complete explanation of coverage. Otherwise, the employer risks substantial liability for providing false statements if the statements in the handbook are incorrect.
• In California, an employer that offers group health plan benefits to three or more employees and does not have a pre-existing condition provision in its plan is limited to no more than a 60-day waiting period before a new employee becomes eligible to participate in the plan. Any pre-existing condition provision is limited to a six-month waiting period.

Paid Leave

Everyone needs time off from work, and this office offers eligible employees paid vacations, personal holidays, and sick leave. Time off is paid on the basis of your base hourly rate, excluding premiums and overtime compensation, if any. Temporary employees are not entitled to time off with pay.

Vacations

After completion of the introductory period, regular, full-time employees accrue vacation days on a monthly basis according to the following schedule:

• From completion of introductory period through of continuous service - 5 days/year
• From the start of the third year of continuous service through 5 years of continuous service - 10 days/year
• Sixth year and thereafter - 15 days/year

Regular part-time employees who are regularly scheduled to work 20 or more hours per week accrue vacation time on a pro-rata basis. Employees who are regularly scheduled to work less than 20 hours per week do not earn vacation time. No vacation days accrue during the introductory period.

You are strongly encouraged to take your vacation within the year after you earn it. You may accrue a maximum of one years’ unused vacation. Once you have accrued one years’ vacation time, no additional vacation time will accrue until you have used some of it and reduced the number of available days below the previous years’ level. You may not receive pay instead of vacation except when leaving employment with the Office.

You may not take vacation before you earn it unless you obtain permission of your supervisor. If you become ill during your vacation you will not be able to count those vacation days as sick days. However, in extreme circumstances, your supervisor may reschedule your vacation, at his or her sole discretion.

If you are on vacation on an official Office holiday, the day will count as the holiday and not as a vacation day taken.

The scheduling of your vacation is based on the Office’s operational needs and the requests for vacation and leaves of absence of other employees. You must give your supervisor at least 30 days’ advance notice before you take your vacation. All vacation requests must be approved in advance by your supervisor. If there is a conflict in requests for time off, the person requesting the time off first will be given preference.

• Paid vacation is not required, but, when provided, it constitutes wages and may not be forfeited. As a result, you may not prohibit the carryover of vacation through a "use it or lose it" provision. But, a "no additional accrual" policy is allowed. An employer may, but need not, pay an employee each year for accrued vacation time that has not been taken.
  
• The accrual of vacation time can begin immediately after hiring or at the completion of the introductory period. An employer can provide that no vacation time is earned during the first year of employment.
  
• If an employee who was allowed to use "future" vacation time before it was earned terminates before the time is "repaid," the employer may not deduct the unearned time from the final paycheck. It is best to arrange for repayment of advanced vacation time through a written agreement before the vacation time is used.