FLSA Safe Harbor Policy

It is the policy and practice of BUTLER INTERNATIONAL, INC., its subsidiaries and divisions to accurately compensate employees and to do so in compliance with all applicable state and federal laws. To make sure that you are paid properly for all time worked and that no improper deductions are made, you must record correctly all work time and review your paychecks promptly to identify and to report all errors.

Review Your Pay Stub

Butler makes every effort to pay its employees correctly. Occasionally, however, inadvertent mistakes can happen. When mistakes do happen and are called to Butler's attention, Butler will promptly make any corrections necessary. Please review your pay stub when you receive it to make sure it is correct. If you believe a mistake has occurred or if you have any questions, please use the reporting procedure outlined below.

Non-exempt Employees

If you are classified as a non-exempt employee, you must maintain a record of the total hours you work each day. These hours must be accurately recorded. Each employee must verify that the reported hours worked are complete and accurate, including where applicable signing his or her time card. Your time card must accurately reflect all regular and overtime hours worked, any absences, late arrivals, early departures and meal breaks. At the end of each week, you should submit your completed time card to your supervisor for verification and approval. When you receive each pay check, please verify immediately that you were paid correctly for all regular and overtime hours worked each work week. Do not sign your time card if it is not accurate. Unless you are authorized by your supervisor, you should not work any hours that are not authorized. Do not start work early, finish work late, work during a meal break or perform any other extra or overtime work unless you are authorized to do so and that time is recorded on your time card. Employees are prohibited from performing any "off-the-clock" work. "Off-the-clock" work means work you may perform but fail to report on your time card. Any employee who fails to report or inaccurately reports any hours worked will be subject to disciplinary action, up to and including discharge.

It is a violation of Butler's policy for any employee to falsify a time card, or to alter another employee's time card. It is also a serious violation of Company policy for any employee or manager to instruct another employee to incorrectly or falsely report hours worked or alter another employee's time card to under- or over-report hours worked. If any manager or employee instructs you to (1) incorrectly or falsely under- or over-report your hours worked, or (2) alter another employee's time records to inaccurately or falsely report that employee's hours worked, you should report it immediately to the manager of the Human Resources Department at 201-573-8000.

Exempt Employees

If you are classified as an exempt salaried employee, you will receive a salary which is intended to compensate you for all hours you may work for the Company. This salary will be established at the time of hire or when you become classified as an exempt employee. While it may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform.

Your salary may also be reduced for certain types of deductions such as your portion of health, dental or life insurance premiums; state, federal or local taxes, social security; or, voluntary contributions to a 401(k) or pension plan. In any workweek in which you performed any work, your salary will not be reduced for any of the following reasons:

Full day absences for personal reasons.
Full day absences for sickness or disability.
Full day disciplinary suspensions for infractions of our written policies and procedures.
Family and Medical Leave absences (either full or partial day absences).
To offset amounts received as payment for jury and witness fees or military pay.
The first or last week of employment in the event you work less than a full week.
No pay.

Partial day absences for personal reasons, sickness or disability.
Your absence because the facility is closed on a scheduled work day.
Your absence because of the Company's operating requirements.
Absences for jury duty, attendance as a witness, or military leave in any week in which you have performed any work.
Any other deductions prohibited by state or federal law.

Please note: it is not an improper deduction to reduce an employee's accrued vacation, personal or other forms of paid time off for full or partial day absences for personal reasons, sickness or disability.

To Report Concerns or Obtain More Information

If you have questions about deductions from your pay, please immediately contact the manager of Human Resources. If you believe you have been subject to any improper deductions or your pay does not accurately reflect your hours worked, you should immediately report the matter to your supervisor. If the supervisor is unavailable or if you believe it would be inappropriate to contact that person (or if you have not received a prompt and fully acceptable reply), you should immediately contact the Manager of Human Resources at 110 Summit Avenue, Montvale, NJ 07645, phone number 201-573-8000 , the Manager of payroll at 9 Wharf Street, Lake St. Louis, MO 63367, phone number 636-625-2502, or any other supervisor in the company with whom you feel comfortable. If you are unsure of whom to contact or if you have not received a satisfactory response within five business days after reporting the incident, please immediately contact the company president, Edward M. Kopko at 110 Summit Avenue, Montvale, NJ 07645 at 201-573-8000.

Every report will be fully investigated and corrective action will be taken where appropriate, up to and including discharge for any employee(s) who violates this policy. In addition, the Company will not allow any form of retaliation against individuals who report alleged violations of this policy or who cooperate in the Company's investigation of such reports. Retaliation is unacceptable, and any form of retaliation in violation of this policy will result in disciplinary action, up to and including discharge.