Document No: TITLE: VACATION POLICY FOR CVS CAREMARK EMPLOYEES

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CHR-0006
Parent Document(s): N/A
Effective Date: Last Review Date: Business Unit/Department Owner:
See Content Information 1/1/2013 Director, Employee Relations

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Page Reviewed and Approved By:
Director, Human Resources
Exhibit(s): N/A
Document Type: Policy and Procedure Standard Work Instructions /Training Manual

POLICY

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The CVS Caremark Vacation Policy for CVS Caremark Employees provides eligible employees
with paid time away from their job.

SCOPE

1. All Minute Clinic Field Employees and non-union Employees working in a CVS Retail
store or distribution center not working in a California location will be eligible to accrue
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and use vacation, pursuant to this policy.

2. Employees and management team members, working in California, are covered by the
policy entitled, VACATION, HOLIDAY AND FLOATING HOLIDAY POLICY FOR
CALIFORNIA EMPLOYEES. Non-exempt Employees working in Puerto Rico are
covered by the policy entitled VACATION POLICY FOR PUERTO RICO
EMPLOYEES.
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3. This policy is not applicable to Employees who accrue under the myTime Policy or
Employees working in non-US locations or Employees that are covered by a collective
bargaining agreement.

4. The Vacation Policy operates on a calendar year basis, meaning that vacation is allocated,
accrued, and eligible to be taken in the same calendar year at any time between January 1
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(or the eligibility date for newly eligible employees) and the end of the payroll year (this
date changes each year, check with myHR). The total time that an Employee is eligible
for is based on the Employee’s Benefit Service Date with CVS Caremark and the
Employee’s part-time or full-time status.

STANDARDS

1. ELIGIBLE EMPLOYEES
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a. Full-time Employees are eligible to begin accruing vacation on the first day of the first
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full month following 6 months of continuous employment.

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 TITLE: VACATION POLICY FOR CVS CAREMARK EMPLOYEES

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2. VACATION ACCRUAL

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a. Vacation time will be accrued on a monthly basis based on the time the Employee is in an
active status.

3. VACATION ELIGIBILITY

a. Employees are eligible for vacation time as follows:

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Length of Continuous Vacation Weeks Eligible to Accrue Per Calendar
Service Year
First of the month  Up to 2 weeks, pro-rated based on period from date
following six months of of eligibility through December 31 of the same
continuous service calendar year
One to Three full Up to 2 weeks
calendar years of
service
Four full calendar years



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Up to 3 weeks
of service
Fourteen full calendar  Up to 4 weeks1
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years of service

b. After the first six months of employment and with the prior approval of their supervisor,
Employees may take an advance on unaccrued vacation time that is due to be accrued in
that calendar year. CVS Caremark may seek repayment of the advance if the Employee
terminates without having accrued the advanced vacation time.
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4. DEFINITION OF HOURS IN A WEEK OF VACATION

a. Vacation pay will be based on either average or scheduled hours, as listed for the
following groups of Employees:
i. All salaried exempt Employees, other than Store Management Employees, are
eligible to receive vacation based on standard hours at the end of the preceding year,
not to exceed 40 hours per week.
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ii. Hourly paid Distribution Center Employees are eligible to receive vacation based on
their regular weekly standard hours at the end of the preceding year.
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Certain employees who joined as part of an acquisition may be eligible for additional vacation time.
Confidential and Proprietary Page 2 of 5
2012 CVS Caremark and/or one of its affiliates. All rights reserved.
Not To Be Reproduced Or Disclosed to Others Without Prior Written Approval
ELECTRONIC DATA = OFFICIAL VERSION – PAPER COPY – INFORMATIONAL ONLY
 TITLE: VACATION POLICY FOR CVS CAREMARK EMPLOYEES

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iii. Retail Pharmacist Employees are eligible to receive vacation based on their standard
base hours at the end of the preceding year. Retail Pharmacists’ vacation accrual rate
will be updated each July to reflect their current standard base hours. Any changes to

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the accrual rate will apply prospectively.
iv. Exempt Store Management Employees are eligible to receive vacation based on their
regular weekly standard hours at the end of the preceding year, not to exceed 45 hours.
v. All other Employees are eligible to receive vacation based on their average hours
worked over the past 12 months, not to exceed 40 hours per week. This average hour

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calculation will be based on hours submitted to payroll over the last 12 months. For
Employees who have been hired or rehired in the past 12 months, the calculation is
based on the Benefit Service Date.

5. INDIVIDUAL APPLICATION

a. With the exception of pharmacists, maximum eligible vacation allotments will be

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determined once per calendar year (unless the Employee’s status changes), and accrued
(earned) on a monthly basis. For all Employees, if an Employee moves from part-time to
full-time, their prospective accrual rate may be updated to reflect their anticipated
schedule. As of January 1st, the maximum accrual potential will be based on the
scheduled hours worked or the average hours as applicable in their updated status. Refer
to Definition of Hours in a Week of Vacation for the definition of hours.
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6. NON-ACCRUAL PERIODS

a. Vacation will not be accrued when an Employee is in an inactive status for more than 35
consecutive calendar days.

7. ANNUAL ALLOCATION OF VACATION TIME

a. Newly Eligible Employees

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i. Employees are eligible to begin accruing vacation time on the first of the month
following six months of continuous service. Annual vacation eligibility (allocation) for
an Employee is determined at the time of eligibility. The maximum amount of time the
Employee may accrue on an annual basis is calculated based on the portion of the
calendar year for which the allocation is being made.

b. Annual Vacation Allocation—January 1st

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i. Annual vacation allocation for an Employee is determined at the beginning of each

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year. The number of hours that are allocated is calculated based on length of service as
of December 31st of the prior year and scheduled hours worked or average hours, as
applicable. Refer to Definition of Hours in a Week of Vacation for the definition of
hours.

Confidential and Proprietary Page 3 of 5

2012 CVS Caremark and/or one of its affiliates. All rights reserved.
Not To Be Reproduced Or Disclosed to Others Without Prior Written Approval
ELECTRONIC DATA = OFFICIAL VERSION – PAPER COPY – INFORMATIONAL ONLY
 TITLE: VACATION POLICY FOR CVS CAREMARK EMPLOYEES

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ii. If the Employee was paid for more than they accrued during the year and therefore ends
the year with a negative vacation balance, then their total annual vacation allocation for
the following year (i.e., the maximum amount they could accrue) will be reduced by the

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negative balance. Employees who end their employment with CVS Caremark with a
negative balance may be required to reimburse CVS Caremark for the overpayment.

8. VACATION FORFEITURE

a. Except as required by applicable law, all unused vacation at the end of the year will be

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forfeited.

9. YEAR END VACATION PAYOUT FOR EMPLOYEES WHO BECOME ELIGIBLE

IN NOVEMBER AND DECEMBER

a. The Vacation Policy requires all Employees to use all of their accrued vacation hours in
the calendar year in which they are earned with the exception of Employees who first
become eligible to accrue vacation in either November or December. Employees in this
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category who have used less vacation hours than the amount of vacation hours accrued
will receive payment for the unused vacation hours.

10. EMPLOYMENT STATUS CHANGE FROM FULL-TIME TO PART-TIME

a. An Employee who changes from full-time to part-time status is no longer eligible for
vacation, and therefore the Employee no longer accrues vacation hours. If the Employee
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has used less vacation hours than the amount of hours accrued, the Employee will receive
payment for the unused vacation hours.

11. TERMINATION PAYOUT

a. In the event of a termination, unused accrued vacation will be paid to the Employee.
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b. Vacation accrues over the course of the calendar year. Therefore, an Employee will not
accrue 100% of their total vacation allotment unless they work the entire calendar year.

c. Employees who retire from CVS Caremark having 10 years of service and are of the age
of 55 to 59 or having 5 years of service and are of the age of 60 or older will receive
payment of allocated and unused vacation.

DEFINITIONS (All defined words in this document should be displayed with initial capitals,
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except for acronyms.)

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1. CVS Caremark: CVS Caremark Corporation and each of its subsidiaries and affiliates.
2. CVS Retail: Employees that work in a CVS retail pharmacy.
3. Employee: Any full-time, employee of CVS Caremark, including interns employed by
CVS Caremark.

Confidential and Proprietary Page 4 of 5

2012 CVS Caremark and/or one of its affiliates. All rights reserved.
Not To Be Reproduced Or Disclosed to Others Without Prior Written Approval
ELECTRONIC DATA = OFFICIAL VERSION – PAPER COPY – INFORMATIONAL ONLY
 TITLE: VACATION POLICY FOR CVS CAREMARK EMPLOYEES

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REVIEW AND REVISION HISTORY

Date Revision No. Reason for Change Sections Affected

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1/1/2012 1.0 Document created 8/10/2007. Revised for CVS All
Caremark enterprise.
3/12/2012 2.0 Corrections Scope, Definitions
4/3/2012 3.0 Additions 5bii and 9c
1/1/2013 4.0.1 Revised based on new myTime Policy Scope 1, 2 and. 3
1/1/2013 4.0.2 Reformat to fit new template All

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Confidential and Proprietary Page 5 of 5

2012 CVS Caremark and/or one of its affiliates. All rights reserved.
Not To Be Reproduced Or Disclosed to Others Without Prior Written Approval
ELECTRONIC DATA = OFFICIAL VERSION – PAPER COPY – INFORMATIONAL ONLY