This document outlines Caraustar Industries' short-term disability policy for hourly non-union associates. It provides that eligible full-time associates who cannot work due to a disability may receive supplemental income benefits after a one-week waiting period. Benefits last up to 8 weeks for associates with under one year of service, and up to 26 weeks for associates with one year or more of service. The policy details eligibility requirements, limitations on coverage, benefit amounts, and responsibilities of associates, managers and HR in administering the policy.

1. Caraustar Industries, Inc.
Human Resources Policies and Procedures
Effective Date:
June 1, 1998
Section:
Benefits
Policy No.
2.6b
Subject:
Short-Term Disability Policy –
Hourly Associates (non-union)
Last Updated By:
Corporate Human Resources
January 1, 2017
Approved By: Page:
1 of 4
PURPOSE
The purpose of the Short-Term Disability (STD) Policy is to provide guidance on supplemental
income benefits provided to eligible full-time hourly associates (non-union) who are unable to
work because of a covered disability.
Associates must meet the following requirements to be eligible for any benefit under the Short-
Term Disability Policy.
POLICY
1. Eligibility
A. Associate must be a full-time actively working hourly associate at the time of
disability and must have completed your location’s probationary period. (Full-time
means employed a minimum of thirty 30 hours per week on a regular basis.)
B. Associate must be absent from work due to a covered disability for a minimum of
seven (7) consecutive calendar days, be under the care of a treating healthcare
provider, and have been approved for a medical leave of absence by the Company.
The first seven (7) consecutive calendar days of a disability are considered to be a
waiting period and there shall be no STD benefits paid during this waiting period.
C. Short-Term Disability leave requests should be submitted to the Company’s
designated Short-Term Disability Administrator. Associate must provide initial
medical determination of disability by a treating healthcare provider as requested
by the Administrator. The cost, if any, to obtain this documentation is not covered
by the Company.

2. Short Term Disability Policy – Hourly Associates (non-union)
Updated 1/01/2017
Page 2 of 4
D. Associate must provide medical and return to work status updates to the designated
Short-Term Disability Administrator as requested. Normally, a medical evaluation
update may be requested every thirty (30) days.
E. The Company may also require an associate receiving disability benefits to have a
medical examination by a physician selected by the Company. In this instance, the
medical examination will be paid for by the Company.
If false claims for Short Term Disability benefits are discovered at any time, the associate will be
subject to disqualification of benefits and subject to disciplinary action, up to and including
termination of employment on the first offense. Associates who are collecting Short Term
Disability benefits are prohibited from performing work for other companies or businesses that
would violate the medical restrictions based on the Certification of Health Care Provider.
2. Limitations
Benefits are not provided for any disability resulting from an injury or illness that is:
A. Caused by or resulting from intentionally self-inflicted injury or attempted suicide.
B. Resulting from participation in a riot or the commission or attempted commission
of a criminal act or any type of assault or engagement in any illegal occupation.
C. Caused by or occurring in the employ of another person or business other than the
Company or while performing any work as self-employed.
3. Termination of Employment
If employment terminates for cause as determined by the Company, including plant closure
or other reduction-in-force, no benefits under this disability policy shall apply or continue
to that associate unless specifically exempted by the Company.
4. Work-Related Disabilities
A leave from work that qualifies for short-term disability benefits may run concurrently
with a Family Medical Leave Act leave, Americans With Disabilities Act leave, and/or
worker’s compensation leave. In a situation where there is a dispute about whether an
injury or illness qualifies for benefits under workers' compensation, the Company may pay
the appropriate benefit under the specific short-term disability policy that applies to the
associate (assuming the required medical documentation has been furnished to the
Company). If resolution of the dispute indicates that the situation is compensable under
workers' compensation, any necessary adjustment in benefits will be made in accordance
with applicable federal and/or state laws.
5. Continuation of Healthcare and Voluntary Benefits

3. Short Term Disability Policy – Hourly Associates (non-union)
Updated 1/01/2017
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When receiving income under the Short-Term Disability Policy, the affected associate’s
unpaid health and voluntary benefits contributions shall be accumulated in arrears until the
associate’s return to work or until the associate’s termination of employment, whichever
occurs first. If at any time during the associate’s leave the Company determines that the
arrears method is not appropriate, the Company will notify the associate that the associate’s
share of the cost of such coverages during the leave is payable on or before the date when
payroll deductions for such costs would normally be made (failure to pay the associate’s
share of the premium when due will result in termination of coverage after thirty [30] days).
Upon the associate’s return to work, the normal pay period share of the cost of these
benefits will be double-deducted beginning with the first paycheck after the associate’s
return to work. If the associate has been approved for Social Security disability or if the
associate has not returned to active duty after a total of twelve (12) months (including time
off while on FMLA and/or receiving STD benefits), the associate’s employment will be
terminated unless extended by the Company as a reasonable accommodation under the
circumstances. The Company will waive any past due associate contributions that were
held in arrears and health benefits continuation will be offered through COBRA at the
applicable COBRA rate.
6. Schedule of Disability Benefits
A. The benefits under the Short-Term Disability Policy are based on the length of
continuous service of the affected associate as outlined in the schedule. Benefits
under this Policy will not be payable when (i) the associate is not or no longer
eligible, (ii) the disability is not a covered disability, or (iii) the Policy is terminated
by the Company. Also, a disabled associate not accepting an alternate job
assignment, if offered, which the Company determines the associate is qualified to
perform is no longer an eligible associate. Maximum amount of disability benefits
under this policy shall not exceed twenty-six (26) weeks in a rolling twelve (12)
month period beginning with the original onset of a disability period regardless of
nature of disability and will be paid at the applicable benefit rate according to the
following schedule:
Full Years of Continuous Weeks of Benefit
Service at in any
Time of Disability 12-Month Period
Upon completion of probation period
(Benefits Eligible) to 1 Year 8
1 Year or more 26
B. Benefits will be payable beginning on the eighth consecutive calendar day of a
covered disability. There will be no benefits paid for the seven (7) day waiting
period.

4. Short Term Disability Policy – Hourly Associates (non-union)
Updated 1/01/2017
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C. Benefits for less than a week are based on a five (5) day pay week. (Example: If
Weekly benefit = $240, then Daily benefit = $48) Weekly payment will not exceed
the five (5) day total amount.
D. Associate on approved STD status may elect to use Vacation and also receive STD
pay. All health and voluntary benefits deductions will be deducted from vacation
pay.
E. Bonus Payout - If associate qualifies for bonus while out on STD, payment will be
deferred until the associate returns to actively working status. If associate does not
return to actively working status, the bonus is forfeited.
F. Holiday Pay - Holiday pay will not be paid if Holiday falls during the time associate
is out on paid or unpaid STD or is receiving worker’s compensation.
G. Weekly amount of STD is location specific with approval of Corporate Human
Resources.
RESPONSIBILITIES
It is the responsibility of all associates subject to this policy to comply with the policy. Human
Resources Administrators, Supervisors and Managers are responsible for enforcing the policy and
ensuring compliance with the policy. Corporate Human Resources is responsible for interpreting
and maintaining the policy. This policy may be changed, modified or eliminated at the discretion
of the Company.
Associates may access this policy through their Human Resources Administrator or on the
Company Intranet at http://www.caraustar.net.
Complaints of non-compliance with this policy may be made to local facility management,
Corporate Human Resources, or to the Company Hotline.