Attendance Policy

Nellis Auction Attendance Policy

Document ID:

Nellis Auction Attendance Policy

Version #:

V2.2

Process / Function:

Attendance Standards & Time-Off Administration

Effective Date:

October 19, 2026

Pages:

11

Purpose

The purpose of this policy is to:

• This policy establishes attendance standards and clarifies each employee's responsibility for reliable attendance.
• Establish consistent, fair attendance standards across all Nellis Auction locations.
• Define employee obligations for reporting absences and requesting time off.
• Provide a transparent, points-based corrective action framework.
• Comply with applicable federal, state, and local employment laws in Arizona, Colorado, Nevada, Texas, and New Jersey.

Scope

This policy applies to all regular and seasonal non-exempt (hourly) employees at all Nellis Auction locations in Arizona, Colorado, Nevada, Texas, and New Jersey. It governs attendance standards, absence reporting, sick time off (STO) usage, and corrective action thresholds. Exempt employees are subject to separate absence management procedures.

Important: All attendance points accumulated prior to the effective date of this policy remain active and are carried forward. Nellis Auction will provide a one time amnesty to individuals that are currently exceeding 15 points at the beginning of this policy on October 19, 2026.

No other existing points will be forgiven, adjusted, or excused as a result of this revision.

1. General Attendance Expectations

All employees must report to work on time, as scheduled, and ready to begin their duties. Employees are expected to remain on the job for their entire shift unless otherwise directed by their supervisor. Arriving late, leaving early, or taking unauthorized absences disrupts operations and must be minimized. If unforeseen circumstances prevent an employee from meeting these expectations, they must promptly notify their supervisor in accordance with Section 3.2.

2. Approved, Scheduled and Unscheduled Absences

Employees will not face disciplinary action or attendance points for the following scheduled or approved absences:

• Approved Sick Time Off (STO) properly reported and approved per Section 6.
• Pre-approved PTO and UPTO.
• Pre-approved Floating Holiday.
• Company-mandated time off: voluntary or mandatory time off (VTO) offered by Nellis Auction.
• Legally protected absences: those protected by applicable local, state, or federal law, such as FMLA or Military Leave.
• Company approved leaves of absence: medical leave, bereavement leave, jury duty, paternity leaves, etc.

If you have any questions about applicable leaves please contact HR.

Unscheduled Absence: An absence, late arrival or departure is “unscheduled” if it does not qualify as a scheduled or approved absence under this Section 2. Unscheduled absences are subject to the attendance point system set forth in Section 3.

PTO and Floating Holiday: Paid Time Off (PTO), Unpaid Time Off and Floating Holiday must be requested and approved by a manager in advance of the absence, late arrival, or early departure, submitted prospectively that is, before the day it occurs, in accordance with the Company's standard UPTO / PTO / Floating Holiday request and approval procedures. Employees are expected to request UPTO / PTO / Floating Holiday in advance whenever the need for leave is foreseeable. UPTO, PTO and Floating Holiday cannot be used to excuse or cover an absence, late arrival, or early departure on the day it occurs or after it has already occurred; only a pre-approved request submitted before the day it occurs satisfies this requirement.

PTO and Floating Holiday hours cannot be used to cover the worked hours missed for an absence, late arrival, or early departure after it occurs. Requests made on the day of the occurrence or after the fact will not be approved and hours will not be applied. Absences, late arrivals, and early departures for which PTO / Floating Holiday was not properly requested in advance will be treated as unpaid leave or addressed in accordance with the Company's attendance and leave policies, except as otherwise required by applicable law.

Nothing in this policy limits or modifies any employee's rights under the Family and Medical Leave Act (FMLA), applicable state or local paid sick leave laws, or any other federal, state, or local leave entitlement; where such laws require an employer to permit retroactive designation of leave or impose different notice requirements, those legal requirements will control.

3. Unscheduled Absences, Late Arrivals & Early Departures

Nellis Auction uses a points-based system to manage unscheduled attendance events for all regular and seasonal employees. Points accumulate within a rolling 12-month period.

3.1 Point Schedule

Maximum Points Per Shift: Points cannot exceed 3 in a single shift. If more than one point-generating event occurs during the same shift, the points from those events are added together, up to a maximum of 3 points. For example, if an employee arrives late by less than 3 hours (1.5 points) and also leaves early by less than 3 hours (1.5 points) in the same shift, the combined total is 3 points. If instead an employee arrives 1 hour late (1.5 points) and leaves 3.5 hours early (3 points), the combined total would be 4.5 points; because this exceeds the 3-point maximum, only 3 points are assessed for the shift.

3.2 Reporting Unplanned Absences and Late Arrivals

Employees must notify their direct supervisor of an absence, late arrival, or early departure as soon as practicable.

• Absence or late arrival: Notify your direct supervisor via nellis.support as soon as practicable and no later than two (2) hours after your scheduled shift start.
• Early departure: Employees already on duty must notify their manager or supervisor directly before leaving from their shift.

Note: Nellis Auction's official call-out channel is nellis.support, and employees are strongly encouraged to use it. When legally required Nellis Auction will recognize sick time/ sick leave and absenteeism notice given through another method that effectively notifies the company of the need for leave. If you have any questions please contact HR.

3.3 No-Call, No-Show (NCNS)

A No-Call, No-Show (NCNS) occurs when an employee fails to report to a scheduled shift without notifying the company via nellis.support within 2 hours after the scheduled shift start time. A NCNS also occurs when an employee notifies the company via nellis.support within that 2-hour window that they will be tardy, but the employee either never reports to work for the shift or they don’t show up within 2 hours of the reported late arrival time.

Important: The NCNS progressive discipline track operates independently of the general point corrective action track. NCNS is to be treated as a violation of the conduct policy, and a 2nd NCNS will result in termination of employment due to repeated violation of the written company policy.

NCNS Point Value: With the implementation of this policy each NCNS will not result in points, but the corresponding attendance occurrence will result in the applicable points depending on the type of occurrence, aligning with the attendance policy. Each NCNS triggers the progressive discipline track independently of the general points ladder.

NCNS events previously recorded at 6 points retain their original value for the rolling 12-month total. All other existing points carry forward without adjustment.

NCNS Progressive Discipline

HR Sign-Off: No No-Call, No-Show (NCNS) separation may be finalized without HR review.

3.4 Job Abandonment

Job Abandonment: An employee who fails to report to work and fails to notify the Company via the call out procedure for two consecutive scheduled shifts, with no shift worked or excused in between, is deemed to have voluntarily abandoned their employment. This is treated as a voluntary resignation, effective the date of the second missed shift, and does not require progression through the Final Written Corrective Action Warning step described above.

HR Sign-Off: No Job Abandonment separation may be finalized without HR review.

State-Specific Application: No Call No Show and Job abandonment determinations, including the applicable time period and classification of the separation, are made in accordance with the requirements of applicable state law, which may differ by location. If you have any questions, please reach out to HR.

4. Corrective Action — Points-Based Thresholds

Corrective action is initiated based on cumulative points within a rolling 12-month period:

Employees may accumulate up to 21 points before becoming subject to immediate termination, regardless of prior corrective action warnings on record.

Implementing Corrective Actions Corrective actions will normally follow a progressive approach; however, management reserves the right to use discretion in applying this policy under individual circumstances. Managers are to consult with Human Resources when considering action outside a progressive approach. If you have any questions please reach out to HR.

5. Point Buy-Back Program

To reward consistent attendance and encourage improvement, Nellis Auction offers a Point Buy-Back program. Employees may reduce their active point balance by demonstrating 30 consecutive calendar days of perfect attendance.

5.1 Eligibility Requirements

To qualify for a 3-point buy-back, all of the following conditions must be met during the 30-day evaluation window:

• No unscheduled absences of any kind (full day, partial day, late arrival, or early departure).
• No NCNS events.

5.2 Buy-Back Mechanics

• Eligible employees earn a 3-point reduction for each qualifying 30 consecutive calendar day window.
• Buy-back periods begin on the first calendar day following the last attendance event.
• Buy-back periods do not overlap; a new 30-day window begins only after the previous one is completed or forfeited.
• Points cannot be reduced below zero; no banked or negative point balances are permitted.

5.3 Effect on Corrective Action Levels

When an employee earns a point buy-back, the reduction in their active point total may lower their corrective action level. When a buy-back moves an employee's point total below the threshold of their current corrective action step, their active corrective action level is reduced to the step that corresponds to their new point total. No new coaching or corrective action needs to be issued when a buy-back lowers an employee's level. The reduction is simply documented in the employee's point record.

Conversely, when an employee accrues new attendance points that raise their total above the threshold of their current corrective action step, a new corrective action corresponding to their updated point total must be issued, regardless of how many steps the employee's total has crossed.

Because points accrue in increments of 1.5 or 3, an employee's running total will not always land exactly on a corrective action threshold (12, 15, 18, or 21 points). When a new event brings an employee's total to or beyond a threshold — even if the resulting total falls between two named thresholds the corrective action corresponding to the threshold that was reached or exceeded still applies.

Example (points decreasing): On March 1st an employee has 18 active points and is on a Final Written Corrective Action Warning. They complete a qualifying 30-day buy-back period with no occurrences, reducing their total to 15 points. Their corrective action level is reduced to a Second Written Corrective Action Warning. If they complete a second consecutive qualifying 30-day period by May 1st, their total drops to 12 points and they are reduced to a First Written Corrective Action Warning level.

Second Example (points increasing): That same employee, now at 12 points and on a First Written Corrective Action Warning, later accrues a new full-day unscheduled absence (3 points), bringing their total to 15 points. A new Second Written Corrective Action Warning is issued, corresponding to their current 15-point total.

Third Example (points increasing): An employee is on a First Written Corrective Action Warning at 14 points. They accrue a late arrival or early departure of less than 3 hours (1.5 points), bringing their total to 15.5 points. Although their total does not land exactly on 15 points, it has crossed the 15-point threshold, so a Second Written Corrective Action Warning is issued reflecting their current 15.5-point total.

Corrective action warnings already issued remain on the employee's personnel file and are not removed. If an employee accrues new attendance points following a buy-back, corrective action will resume at the step that corresponds to their current point total, not from the beginning of the corrective action ladder.

Note: Buy-back lowers your point total and may slow future corrective action, but it does not erase corrective action warnings already issued or reset your NCNS count.

5.4 Applying for Buy-Back

Approved buy-backs will automatically be reflected in the employee’s attendance record in Paylocity the next day after the 30 day period.

6. Sick Time Off (STO) Policy

Nellis Auction provides Sick Time Off (STO) to eligible employees in Arizona, Colorado, Nevada, Texas, and New Jersey in compliance with applicable state and local laws. The framework below establishes a consistent, company-wide STO standard that meets or exceeds all applicable legal minimums.

6.1 Accrual & Availability

Employees accrue 1 hour of STO per 30 hours worked (.0334 hour accrued per hour worked) capped at 40 hours per year (up to 48 hours in Colorado, per 7 CCR 1103-7-3(3.5.1(A))). Carryover is permitted up to each state's legal minimum. Accrual begins on the first day of employment; usage eligibility follows applicable state law.

STO accrual begins from the first day of employment, but cannot be utilized until 90 calendar days of employment. Colorado employees may use accrued STO as it is earned, beginning on the first day of employment. The 90-calendar-day waiting period above does not apply to employees working in Colorado.

6.2 Approved Uses for STO

In accordance with state laws, STO may be used for the following qualifying reasons, which the reason should be documented via the callout process or the note section in the STO request. Misrepresentation of STO usage will be reviewed by Human Resources and may result in disciplinary action.

• The employee’s own physical or mental illness, injury, or medical condition.
• Medical diagnosis, care, treatment, or preventive care for the employee or a covered family member.
• Care for a family member who is ill or injured.
• Closure of the employee’s workplace or closure of a child’s school/childcare facility.
• Absences related to domestic abuse, sexual assault, or stalking (employee or covered family member).

Covered family members include: spouse or domestic partner, child (biological, adopted, step, or legal ward), parent, grandparent, grandchild, sibling, or any individual for whom the employee is a designated caregiver.

Nevada note: Nevada law entitles private-sector employees to paid leave that may be used for any reason, without justification. Because Nellis does not separately provide a general-purpose PTO bank available to Nevada employees for any reason, STO for Nevada employees may be used for any reason, in addition to the qualifying reasons listed above.

6.3 STO Increment Usage

To ensure operational consistency, the following increment rules apply company-wide, except as noted below for Arizona & Colorado:

• Minimum increment of usage: 1 hour increment usage for the first hour of any STO absence, late arrival or early departure. Time beyond the first hour is tracked and deducted in per-minute increments.
• Maximum single usage: up to the employee’s available STO balance.
• STO will cover actual scheduled hours missed, calculated using the increments described above.
• Any paid STO are not considered hours worked for overtime purposes.

Arizona & Colorado: At this time, and pending further review of applicable systematic requirements, Arizona and Colorado use STO in per-minute increments for the entire absence, late arrival or early departure, with no 1-hour minimum block.

6.4 Requesting STO

The STO request must be submitted in Paylocity, and received by Nellis Auction, as soon as practicable, and in any event within 24 hours of the start of the scheduled shift for which STO is being requested, where circumstances permit. Failure to submit within this window may result in declination of the STO.

Providing a general qualifying reason is sufficient; disclosure of diagnoses or detailed medical information is not required.

State-Specific Application: Where applicable state law requires a different or more lenient notice standard for the use of earned sick time, that standard will govern over the 24-hour submission guideline above. Any such adjustments are determined and administered by Human Resources in accordance with the law of the employee's work location. If you have any questions, please reach out to HR.

6.5 Documentation

For STO excused absences of more than 3 consecutive shifts (4 shifts in Colorado), only Nellis Auction's Human Resources Department may request reasonable supporting documentation when permitted by applicable law and when appropriate based on the circumstances; no other individual or department is authorized to do so.

Employees are not required to provide medical documentation unless specifically requested by Human Resources. Documentation requirements will not be applied in a discriminatory manner and will comply with applicable state law.

Note: The exception is for when an employee is injured on the job and the manager requires a work status report to review for accommodation.

6.6 STO and the Points System

Approved STO (properly requested under Section 6.4) that covers all missed time will be treated as an excused absence and associated points will be removed upon approval. However:

• Using STO does not exempt an employee from the call-out notification requirement.
• STO is not a mechanism for avoiding an NCNS designation. Failure to submit via nellis.support within the 2-hour window results in an NCNS regardless of STO balance.

State-Specific Application: No Call No Show and Job abandonment determinations, including the applicable time period and classification of the separation, are made in accordance with the requirements of applicable state law, which may differ by location. If you have any questions, please reach out to HR.

6.7 No Payout

Accrued, unused STO is not paid out at any time, including upon separation of employment, and does not carry a cash value.

7. Inclement Weather

Employee safety is a priority. Nellis Auction closely monitors weather events and evaluates conditions in real time, using all available information, to determine whether it is safe and appropriate to operate. Because conditions can change quickly, decisions are made using the best information available at the time, and in some cases the final decision, and the related communication, may not occur until closer to the start of a shift, or after a shift has already begun.

Nellis Auction will communicate building closures, delays, or early dismissals through our HRIS application (Paylocity). Unless a site closure is communicated, employees are expected to report to work as scheduled and should use good judgment when commuting in inclement weather. The Company, at its discretion, may adjust point administration during company-declared inclement weather delays or closures.

Nellis Auction appreciates employees' patience and understanding as it works to make the safest and most informed decisions possible.

8. Policy Administration & Existing Points

This revised policy is effective October 19, 2026. The following administrative rules apply:

• Clock-in time is shift start time. To keep things fair and consistent for everyone, we've eliminated the previous 5-minute grace period. If your shift starts at 5:00 AM, you need to be clocked in at 5:00 AM — 5:01 AM will be recorded as late. This ensures the same standard applies to every employee, every shift, every location.
• No-Call, No-Show (NCNS) is now a conduct violation, not a points penalty. NCNS no longer carries a fixed point value on its own. The missed shift is scored under the standard attendance point schedule based on the type of occurrence. A 2nd NCNS results in termination of employment, regardless of total point balance.
• Point Total Triggers: The point total that renders an employee subject to termination has been raised to 21 points (increased from the prior threshold). This provides an additional corrective-action step before an employee becomes subject to termination.
• Rolling 12-Month Period: The 12-month lookback period continues uninterrupted through the policy effective date.
• Point Buy-Back Eligibility: Employees with existing points may begin earning buy-back credit starting on the effective date, subject to Section 5 requirements.
• Consistent Application to Existing Points: All attendance points accumulated prior to the effective date remain active and are carried forward.
• Sick Time Off (STO) is used in 1-hour minimum increments. STO must be requested and used in increments of at least 1 hour for the first hour of any STO absence. Time beyond the first hour is tracked and deducted in per-minute increments. No changes for Arizona and Colorado, who will remain per minute increments for all STO time utilized.
• Paid Time Off (PTO) must be requested in advance. PTO can no longer be applied after the fact to excuse an absence that has already happened, it needs to be requested and approved before the time off is taken.

If you have any questions regarding this policy please contact HR.

At-Will Employment: This policy does not alter the at-will nature of employment with Nellis Auction. Either the employee or the Company may terminate the employment relationship at any time, with or without cause, reason, or advance notice, except as otherwise required by applicable law. Nothing in this policy, including the point schedule and corrective action thresholds described above, creates a contract of employment or a right to progressive discipline prior to termination.

Legal Compliance: This policy is designed to comply with applicable federal, state, and local employment laws in Arizona, Colorado, Nevada, Texas, and New Jersey. In the event of a conflict between this policy and applicable law, the law will govern. Nellis Auction reserves the right to modify this policy at any time with reasonable advance notice to employees.

Employee Acknowledgment