37 We offer competitive wages and a comprehensive benefits package, including options for medical, dental and vision coverage, a 401(k) savings plan with dollar-for-dollar match up to 5 percent of pay, and profit-sharing bonuses. Annual compensation surveys confirm we remain competitive in each employment market. • The combination of pay rate and company-paid benefits puts the total compensation for our production associates above $18 per hour at all locations. • Our average hourly production rate is 172% of the Federal minimum wage, which is also above the 2017 Federal Poverty Guidelines for a family of four and above minimum wage in all the states and localities in which we operate. • Our health care coverage design is in accordance with the requirements of the Affordable Care Act. Perdue pays 70% of the cost of insurance and the associate pays 30%. • “Sick time” or short-term disability coverage is available all to associates at a cost of $3.05 per week. • Perdue associates accrue Paid Time Off (PTO) hours after 90 days of employment that can be used for vacation, sick leave or any personal need for time off. Time is not lost, and associates can accrue a bank of up to 125% of their PTO allotments. • We provide all required Personal Protective Equipment (PPE) to all associates, free of charge. We continue to comply with all applicable wage and hour laws and regulations, including those related to minimum wage, overtime compensation, piece rates and any/all legally mandated benefits. • We ensure all associates work within the limits of regular and overtime hours. Where overtime is required, those associates are normally granted at least one day off in every seven-day period. • We pay “punch-to-punch” to ensure our associates are paid for all donning and doffing time. We conduct monthly First and Last Principal Activity audits in all plants to ensure we remain in full compliance. Two recent Department of Labor Wage and Hour audits (2013 and 2014) found our practices to be fully in line with all applicable laws, including the Fair Labor Standards Act. • We provide associates a full accounting of all time worked, with direct deposit to a debit card or bank account. We have kiosks at all our plants where associates can view or print pay stubs, or they can view them online. Providing Competitive Wages & Benefits, & Complying with All Applicable Laws PEOPLE & PARTNERS: OUR ASSOCIATES