L.A.

Fitness 12/10

TABLE OF CONTENTS

About This Handbook .....................................................................................................................................1

ABOUT THE COMPANY
Equal Employment Opportunity Policy .......................................................................................................3
Questions, Suggestions and Concerns ...........................................................................................................3
Solicitation and Distribution ...........................................................................................................................3
YOUR EMPLOYMENT
The Hiring Process and Introductory Period of Employment ..................................................................5
Employee Classifications .................................................................................................................................5
Attendance .........................................................................................................................................................6
Recording All Hours Worked .........................................................................................................................7
Hours of Work ..................................................................................................................................................7
Rest and Meal Breaks .......................................................................................................................................8
Your Personnel Records ..................................................................................................................................9
Your Paycheck................................................................................................................................................ 10
Use of Personal Vehicle on Company Business........................................................................................ 10
YOUR BENEFITS AND LEAVES OF ABSENCE
Holidays ........................................................................................................................................................... 12
Vacations ......................................................................................................................................................... 13
Sick Leave........................................................................................................................................................ 14
Personal Leave of Absence .......................................................................................................................... 14
Employee Medical Leave of Absence ......................................................................................................... 15
Workers Compensation ................................................................................................................................ 21
Witness and Jury Duty .................................................................................................................................. 21
Voting Right ................................................................................................................................................... 21
Prohibition Against Harassment and Complaint Procedure ................................................................... 22
Threats and Violence ..................................................................................................................................... 24
Reimbursement of Business Expenses ....................................................................................................... 24
Insurance Benefits ......................................................................................................................................... 25
GENERAL POLICIES AND PRACTICES
Performance Reviews .................................................................................................................................... 27
Personal Phone Calls, Mail and Visitors ..................................................................................................... 27
Personal Belongings....................................................................................................................................... 28
Personal Appearance of Employees ........................................................................................................... 28
Non-Fraternization ........................................................................................................................................ 29
Employment of Relatives ............................................................................................................................. 29
Safety Rules and Regulations........................................................................................................................ 30

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Use of Company Property ............................................................................................................................ 32

Conflict of Interest Policy ............................................................................................................................ 33
Dual Employment ......................................................................................................................................... 33
Confidential Nature of Company Affairs ................................................................................................... 34
Protecting the Companys Proprietary and Confidential Information .................................................. 35
Drug and Alcohol Policy .............................................................................................................................. 37
Accidents on Company Premises ................................................................................................................ 39
General Rules of Conduct ............................................................................................................................ 40
Member Relations .......................................................................................................................................... 42
If You Must Leave Us ................................................................................................................................... 42
A Few Closing Words ................................................................................................................................... 42

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ii

ABOUT THIS HANDBOOK

L.A. Fitness International, LLC (hereinafter L.A. Fitness or Company) believes that an
understanding of both Company and individual objectives is essential to good employee relations.
In this handbook, we outline the policies and procedures applicable to our employees.
As with any job change, you will experience a period of adjustment. You will want to know what
you can expect from management and what will be expected from you. You may have questions
about your job duties, your benefits and the operation of the Company in general. We have
prepared this handbook to assist you in finding the answers to those questions.
We do not expect this handbook to answer all of your questions. Your manager will be a major
source of information, and you should not hesitate to ask questions of him or her. We welcome
your interest and will do our best to give you a prompt response.
We wish to note that nothing in this handbook is intended to create a contract of employment
between you and L.A. Fitness or to create any expectation of continued employment for any
particular time period. Both the employee and the Company are free to terminate the employment
relationship at any time, with or without notice or cause. This provision relating to our at will
employment relationship cannot be modified in any manner, express or implied, unless evidenced in
a writing signed by the Companys Chairman or CEO. In order to maintain flexibility in the
administration of our policies, procedures, work rules or benefits stated in this handbook or any
other document, (except for the policy of at-will employment), L.A. Fitness reserves the right to
modify, amend, delete or supplement all other provisions of this handbook at any time. Such
changes will be issued in an authorized writing and distributed or made available to all employees.
No oral statements or representations can in any way alter the provisions of this handbook. Unless
you have a written employment agreement, signed by the Chairman or CEO of L.A. Fitness, this
handbook sets forth the entire agreement between you and L.A. Fitness as to the duration of
employment. Nothing in this handbook or in any other personnel document creates or is intended
to create a promise or representation of continued employment for any employee.
The policies contained in this handbook, unless otherwise specified, are guidelines and in no way
represent a contractual commitment on the part of L.A. Fitness.
This handbook supersedes all prior manuals, policies and procedures issued by L.A. Fitness.

L.A. Fitness 12/10

ABOUT THE COMPANY

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EQUAL EMPLOYMENT OPPORTUNITY POLICY

L.A. Fitness is an equal opportunity employer and makes employment decisions on the basis of
merit. It will not tolerate discrimination on the basis of race, religious creed, color, age, sex, national
origin, ancestry, marital status, veteran status, physical or mental disability, medical condition
including genetic characteristics, military service, pregnancy, and/or sexual orientation, nor will it
permit retaliation caused by any prohibited reason. All such discrimination is unlawful.
Furthermore, L.A. Fitness is committed to compliance with the Americans with Disabilities Act and
any corresponding State law requirements, including its duty to provide reasonable accommodation
for the known physical or mental limitations of an otherwise qualified disabled employee or
applicant.
L.A. Fitness is committed to compliance with all applicable laws providing equal employment
opportunities. Whenever you have a question concerning L.A. Fitness commitment to or
compliance with these laws or believe you have not been treated in accordance with these laws, you
must immediately advise the Human Resources Department.

QUESTIONS, SUGGESTIONS AND CONCERNS

The Human Resources Department has been established to provide employees with information
and necessary assistance to understand the L.A. Fitness personnel policies and to promote a positive
work environment. The Human Resources Department is the best resource for L.A. Fitness
employees to obtain current information on work rules, benefits, personnel policies, payroll data,
personnel records, insurance, job opportunities, and benefit conversion privileges upon termination
of employment. The representatives of the Human Resources Department are eager to help
employees with any such questions or concerns.

SOLICITATION AND DISTRIBUTION

We believe that employees should not be disturbed or disrupted in the performance of their job
duties. For this reason, solicitation for non-work causes, activities and organizations or fund raisers
by an employee of another employee is prohibited while either person is on working time.
Solicitation by non-employees on Company premises is also prohibited at all times. Distribution by
employees of advertising material, handbills, or campaigns other than for Company business or
functions sanctioned by the Company is prohibited. Distribution of literature by non-employees on
Company premises is prohibited at all times.

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YOUR EMPLOYMENT

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THE HIRING PROCESS AND INTRODUCTORY PERIOD OF EMPLOYMENT

L.A. Fitness is committed to full compliance with the federal immigration laws. These laws require
that all employees pass an employment verification procedure to continue working for L.A. Fitness.
This procedure has been established by law and requires that every individual provide satisfactory
evidence of his or her identity and legal authority to work in the United States within three business
days after he or she begins work. Accordingly, all new hires must go through this procedure.
Additionally, the first ninety (90) days of your active employment is considered to be an introductory
period. This period may be extended for 30 day intervals at the discretion of the Company. During
this period, the Company will evaluate your performance on the job and your potential abilities to
determine whether your job placement has been appropriate and whether our mutual expectations
have been met.
Once you have completed the introductory period to the satisfaction of both yourself and the
Company, you will be considered a regular full time or regular part time employee, whichever is
appropriate. This change in employee classification will have no impact on the at will nature of your
employment at the Company.
Please note that you may not be eligible for certain benefits until after you have completed the
introductory period. Refer to other sections of the handbook for further information.

EMPLOYEE CLASSIFICATIONS
A number of different types of employees are employed by the Company.
Introductory Employees All employees, during their first ninety (90) days of employment, or as
extended by the Company.
Regular Full Time Employees Employees who have successfully completed the introductory
period and who regularly work forty (40) hours per week on a regularly scheduled basis. Regular full
time employees include both salaried exempt employees and hourly non-exempt employees.
Regular Part Time Employees Employees who have successfully completed the introductory
period and who are regularly scheduled to work less than forty (40) hours per week.
Temporary Employees Employees who are hired for a specified period of time or to perform a
specific task or project. There shall be no automatic conversions from temporary to regular status.

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ATTENDANCE
The success of the Company depends upon the cooperation and commitment of all of its
employees. Therefore, your attendance and punctuality are extremely important. Your fellow
employees must bear the burden of your absence. Your responsibility to the Company and your
fellow employees requires good attendance. Poor attendance or excessive tardiness will subject
employees to disciplinary action up to and including discharge.
You must report to work on time. This means that you should be at your work place and ready to
work at your starting time.
We recognize that there may be times when your absence or tardiness cannot be avoided. In that
event, you are expected to notify your manager as far in advance as possible, but in no case less than
60 minutes before your work is scheduled to commence on the day of your expected absence or
tardiness, unless such notification is impractical under the circumstances. During your absence, you
must call your manager each day of your absence, or, if you are in management, your superior,
unless other prior arrangements have been made. Messages left with co-workers or other employees
are not acceptable.
Failure to give your manager (or superior) notice of your absence or tardiness is a serious violation
of Company policy and may result in disciplinary action up to and including discharge. If you are
absent for three (3) consecutive days, and were or are able to but have not informed the Company
of your whereabouts or the reasons for your absence in accordance with this policy, you will be
treated as having abandoned your position and resigned your employment. If you are absent due to
illness or injury for more than 3 consecutive work days, you may be required to produce a doctors
certificate verifying your illness or injury, or your ability to return to your job.

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RECORDING ALL HOURS WORKED

All employees must clock in or sign in, depending on the method available for recording your hours
worked, upon commencing work for the day and clock out, sign out, etc. immediately upon the end
of the workday. Clocking in or out or signing in or out for another employee is strictly prohibited.
Employees are required to accurately record their time for all hours worked and meal breaks taken.
If for any reason an employee fails to properly and accurately record his or her time worked and
meal breaks taken, or is told or encouraged by any person to improperly record such information, it
is the responsibility of that employee to immediately contact Human Resources and submit in
writing the true and correct hours worked and meal breaks taken along with an explanation as to
why this information was not accurately recorded. Employees who fail to accurately record the time
for all hours worked or meal breaks taken, or who fail to notify Human Resources when this has not
occurred, are in violation of Company policy and will be subject to immediate discipline up to and
including termination.

HOURS OF WORK

You will be advised of your work schedule and any days off when you begin employment with us.
Hours and days of work will vary among employees. In addition, from time to time, it may be
necessary to change your regular work schedule. Your cooperation with any such change is both
expected as a condition of your employment and appreciated.
A L.A. Fitness employee is not permitted to exchange shifts or days worked with another L.A.
Fitness employee without the prior authorization of both employees Managers. No authorization
for exchanging shifts will be granted unless the exchange can be accomplished without interfering
with the L.A. Fitness operations and without either employee working overtime.
Overtime may be required as a condition of employment. L.A. Fitness will try to give advance
notice of such required overtime, but you should know that this may not always be possible. If you
are an hourly non-exempt employee, you will be paid an overtime premium in accordance with state
and federal overtime requirements.
Employees are not permitted to work overtime unless it has been authorized and pre-approved by
their manager in advance. Also, employees required to complete time cards must turn in those time
cards on a daily basis to their Manager or Supervisor. Failure to adhere to this requirement may
result in disciplinary action up to and including discharge. It is the responsibility of all Managers and
Supervisors to ensure that employees are accurately recording all hours worked. Managers and
Supervisors who fail to do so, or who are found to encourage or require employees not to accurately
record all hours worked, are subject to disciplinary action up to and including discharge.

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REST AND MEAL BREAKS

Meal periods are at least 30 minutes of unpaid, duty free time. L.A. Fitness provides all non-exempt
employees with the opportunity to take meal periods. The first meal period must begin by the end
of the fifth hour worked. If your workday is six hours or less, you may choose not to take your meal
period with the approval of your manager. You must make this request in writing and your manager
must approve it in writing. The second meal period (for employees working more than ten hours)
must begin by the end of the tenth hour worked. However, if your workday is twelve hours or less,
you may choose not to take your second meal break (as long as your first meal period was not
waived) with the written approval of your manager. You must make this request in writing and your
manager must approve it in writing. Employees should work with their managers to schedule meal
breaks based on the needs of the business.
In addition, non-exempt employees are authorized and permitted to take a paid rest period of ten
(10) minutes for each work period of four (4) hours, or major fraction thereof. The rest period will
be permitted as close to the middle of the four-hour period as is practicable. The supervisor will
determine when the employees are to take their rest period(s).
It is the responsibility of any employee who is not permitted to take such rest or meal breaks to
immediately advise Human Resources of this occurrence in writing. It is the responsibility of all
managers and supervisors to ensure that employees are taking all required meal and rest breaks.
Managers and supervisors who fail to do so, or who are found to encourage or require employees
not to take the required meal and rest breaks are subject to disciplinary action up to and including
termination.

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YOUR PERSONNEL RECORDS

The Human Resources Department is responsible for maintaining complete and up-to-date
personnel records for all current L.A. Fitness employees. It is therefore important that employees
notify the Human Resources Department promptly of any changes in their names, marital status,
number of dependents, home address, and telephone number. In this manner, the benefit status
and information for all employees can be kept current and accurate.
All requests for employment verifications and employee references must be directed promptly to the
Human Resources Department. Employees in other departments must not offer any such
information; rather, they shall refer all such requests to Human Resources personnel. The Human
Resources Department will reply to any written inquiries or requests for employee verification and
employee references in accordance with L.A. Fitness policies. If an employee desires to view
his/her personnel file, the employee should submit such a request in writing to the Human
Resources Department.
The Human Resources Department should be advised of any request for information regarding
current or former employees. The Human Resources Department will normally verify, upon written
request, only a former L.A. Fitness employees dates of employment, position or positions held, and
final rate of pay. A written disclosure authorization and release may be required before any
information is furnished.

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YOUR PAYCHECK
It is the policy of the Company to pay employees by check or direct deposit on a regular basis and in
a manner so that the amount, method, and timing of such payments comply with any applicable laws
or regulations. Employees are paid twice each month at designated times. If the regular payday
occurs on a Saturday or holiday, employees will be paid on the last business day prior to the regular
payday. If the regular payday occurs on a Sunday, employees will be paid on the first business day
following the regular payday. Employees on each payday will receive, in addition to their check, a
statement showing gross pay, deductions, and net pay. Local, state, federal, and social security taxes
will be deducted automatically. No other deductions will be made unless required by law (i.e.,
garnishments), contract, or employee obligation.
All changes in a L.A. Fitness employees rate of pay will normally become effective on the first day
of the pay period after the change is officially approved. Exceptions to this policy will occur only
when the employee is officially advised in writing by the Human Resources Department that a
change in pay will take effect on a different date, either retroactively or in the future. Managers do
not have the authority to award retroactive increases or the ability to waive the rules established by
this policy.
For payroll purposes, the workweek starts on Sunday and ends on Saturday. Any questions that you
have regarding your paycheck should be addressed to Human Resources or the Payroll Department.
Copies of your paystubs or direct deposit information is maintained for you on-line and always
available to you at the HR/Payroll section.

USE OF PERSONAL VEHICLE ON COMPANY BUSINESS

No L.A. Fitness employee may use his or her personal vehicle on L.A. Fitness business without the
prior written approval of the Chairman or President of L.A. Fitness. Prior to using a vehicle for
L.A. Fitness business, the L.A. Fitness employee must have a valid drivers license and have in full
force and effect public liability insurance which includes bodily injury, property damage and collision
insurance in accordance with state laws and L.A. Fitness policy requirements. A current copy of the
policy and proof of insurance must be furnished to the Human Resource Department of L.A.
Fitness before using your vehicle on company business.

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YOUR BENEFITS AND

LEAVES OF ABSENCE

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The Company offers a number of benefits to its employees. This handbook briefly describes
some of these benefits.

HOLIDAYS
It is the policy of the Company to observe certain holidays each year. Regular full-time employees
who work in the corporate office and managerial club employees will receive their regular rate of
pay (base salary) for the observed holiday if (1) the employee has completed the introductory
period, (2) the facility in which the employee works is closed for the observed holiday and (3) the
employee has worked his/her regularly scheduled workday before and after the observed holiday,
unless the holiday falls within a period of scheduled paid vacation.
A schedule of holidays to be observed during each calendar year will be published and maintained
by the Human Resources Department.

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VACATIONS
We recognize the importance of uninterrupted periods of rest and relaxation for all of our
employees. Our vacation plan is based upon your continuous service and is administered on an
annual term that runs from the first day after your successful completion of the introductory
period. You will not accrue vacation during the introductory period. All regular full-time
employees who have successfully completed the introductory period and who work in the
corporate office or are managerial club employees will accrue vacation in accordance with the
schedule below. You will cease accruing vacation once you have reached the maximum accrual
amount below. Once this maximum is reached, accruals will cease. Vacation accrual will resume
when you take sufficient time off to bring your accrual total below the maximum (see chart
below).
Length of Service
(After Completion of
Introductory Period)

Vacation Annual
Accrual

Maximum
Accrual

First Full Year

Accrue 40 hours
(3.33 per month)
Accrue 80 hours
(6.67 per month)
Accrue 120 hours
per year (10 per
month)

40 hours

Second Full Year

After Two Full Years

80 hours
120 hours

The accrual indicated above will occur on a pro-rata basis each pay period once the employee
becomes and remains eligible to accrue vacation hours/days. Employees will not be entitled to
take paid vacation days before they have accrued.
All vacation will be paid to you at your regular straight-time hourly rate of pay as of the date of
your vacation.
You will not accrue vacation while you are away from work on a leave of absence beyond the first
thirty (30) days of the leave period.
For business reasons, some employees may not be able to schedule time off simultaneously.
Except in emergency situations, you must request vacation time at least thirty (30) days in advance
of the requested time off. Submit your request to your manager, who will submit it to the Human
Resources Department for consideration. Every effort will be made to grant your vacation
preference, consistent with the efficient operation of our business. However, if we cannot do so,
another mutually-agreeable date will be scheduled for your vacation. Managerial club employees
will not be permitted to take vacation days from December 26 through January 31 each year.
As used in this Handbook, managerial club employees currently includes the Membership and
Marketing Director, the Assistant Membership and Marketing Director, the Personal Training
Director and the Operations Manager at each club.

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Exempt employees shall take vacation time only in full-day increments. Non-exempt employees
may utilize vacation time in hourly increments, but will still need to obtain prior supervisor
approval in the same manner as full vacation days.
SICK LEAVE

All regular full-time corporate office employees and managerial club employees who have
successfully completed their introductory period are entitled to three (3) paid sick days per year.
These three sick days are awarded to eligible employees every January 1. Upon completion of the
introductory period, new employees will receive a pro rata share (effectively, 2 hours per month)
based on the portion of the calendar year remaining at that time. Accrued but unused sick leave
days cannot be carried over into following years. Non-exempt employees cannot save sick leave
days to use as vacation days. Rather, these days are designed for all days when an employee calls
in sick. Non-exempt employees who call in sick, without any accrued sick days available, but who
have accrued vacation days available, will be charged a vacation day rather than receive a salary
deduction for the day missed.

PERSONAL LEAVE OF ABSENCE

One or more days off, in the form of a personal leave of absence without pay, may, at the
Companys discretion, be granted to regular full-time employees who have completed their
introductory period of employment. Please contact Human Resources for more information if
you find yourself in need of a personal leave of absence.
The Company reserves the right to request verification of reasons underlying the leave request.
For example, the Company may require verification of the death of a relative if bereavement leave
is requested.
If a holiday falls within the period an employee is on personal leave, the employee will not receive
holiday pay.

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EMPLOYEE MEDICAL LEAVE OF ABSENCE

FAMILY CARE, MEDICAL, MILITARY EXIGENCY AND MILITARY CAREGIVER

LEAVES OF ABSENCE
L.A. Fitness provides eligible employees with family care, medical leave and military family leave
in accordance with the federal Family and Medical Leave Act of 1993 (FMLA) and applicable
state law. If a state or local leave law provides for any broader right, the broader right will apply
to employees covered by such law. (See STATE FAMILY CARE AND MEDICAL LEAVE
ENTITLEMENTS section, below)
Eligibility
To be eligible for a family care, medical, military exigency, and military caregiver leave, an
employee must (1) have worked for the Company for at least 12 months prior to the date on
which the leave is to commence; (2) have worked at least 1,250 hours in the 12 months preceding
the leave; and (3) work at a location where the Company employs at least 50 persons within 75
miles of that facility. An employee returning from fulfilling his or her National Guard or Reserve
military obligation will be credited with the hours of service that would have been performed but
for the period of military service in determining the 1,250 hours of service. In the case of a
pregnancy or other legally protected disability or medical condition or work-related injury, an
employee may not need to satisfy all of the above requirements. In such circumstances, the
employee should contact Human Resources for clarification about his or her rights for other types
of leave.
For those employees who work at a site that is not eligible or who have not met the minimum
time worked requirement, you are not eligible for leave under the FMLA, however the Company
may accommodate your request under its other leave policies. Please contact Human Resources
for more information.
Permissible Uses of Leave
Family care leave may be requested for (1) the birth or adoption of an employees child or the
child of an employees registered domestic partner; (2) the placement of a foster child with the
employee; or (3) the serious health condition of an employees spouse, registered domestic
partner, child, child of the employees registered domestic partner, or parent, as defined in the
applicable laws.
Medical leave may be requested for an employees own serious health condition.
A serious health condition is an illness, injury, impairment, or physical or mental condition that
involves either an overnight stay in a medical care facility, or continuing treatment by a health care
provider for a condition that either prevents the employee from performing the functions of the
employees job, or prevents the qualified family member from participating in school or other
daily activities.
Subject to certain conditions, the continuing treatment requirement may be met by a period of
incapacity of more than three consecutive calendar days combined with at least two visits to a
health care provider or one visit and a regimen of continuing treatment, or incapacity due to
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pregnancy, or incapacity due to a chronic condition. Other conditions may meet the definition of
continuing treatment.
Military exigency leave may be requested when there is a qualifying military exigency as defined
by the U.S. Department of Labor arising out of the fact that an employees military retiree or
reservist spouse, child or parent is on active duty (or has been notified of an impending call or
order to active duty) in support of a contingency operation as defined by law. Qualifying military
exigencies may include attending certain military events, arranging for alternative childcare,
addressing certain financial and legal arrangements, attending certain counseling sessions, and
attending post-deployment reintegration briefings. This leave does not extend to employees
whose family member is on active duty or call to active duty status of the Regular Armed Forces,
nor does it apply to most State calls to active duty.
Military caregiver leave may be requested to care for a covered servicemember if the employee
is the covered servicemembers spouse, child, parent or next of kin. For purposes of this leave, a
covered servicemember is a current member of the Armed Forces, including a member of the
National Guard or Reserves, who has a serious injury or illness incurred in the line of duty on
active duty that may render the servicemember medically unfit to perform his or her duties for
which the servicemember is undergoing medical treatment, recuperation, or therapy; or is in
outpatient status or is on the temporary disability retired list.
Amount of Leave

Family Care, Medical and Military Exigency Leave

Provided all the conditions of this policy are met, an employee may take a maximum of 12 weeks
of family care, medical and military exigency leave in a rolling 12-month period measured
backwards from the date the employees leave commences.
Spouses or registered domestic partners who are both employed by the Company may take a
maximum combined total of 12 weeks of family care leave in a 12-month period for the birth,
adoption, or foster care of their child.
Employees who are unable to work due to pregnancy disability will be granted the greater of 12
weeks leave or the amount of leave to which the employee may be entitled under applicable state
law for a pregnancy-related disability or in connection with childbirth. Pregnant employees in
California will be granted leave for the period they are unable to work due to a pregnancy-related
disability up to a maximum of four months, and may qualify for additional leave time of up to 12
weeks to care for and bond with the child.
Family care leaves for the birth, adoption or foster care placement of a child must be concluded
within one year of the birth, adoption or placement.
Employees who are unable to work due to a legally protected disability or a work-related injury
will be granted up to 12 weeks of medical leave if eligible, and will be considered for additional
leave or may be transferred to inactive status taking into account the Companys business
requirements and whether allowing such additional leave would present an undue hardship.

Military Caregiver Leave

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Provided all the conditions of this policy are met, an employee may take a maximum of 26 weeks
of military caregiver leave in a single 12-month period, inclusive of the time the employee takes
for a family care, medical, or military exigency leave during that period. This 12-month period
will be measured forward from the first day leave is taken. Spouses or registered domestic
partners who are both employed by the Company may take a maximum combined total of 26
weeks in the 12-month period for the care of the servicemember and the birth, adoption, or foster
care of their child or to care for an ill parent, provided that no more than 12-weeks of this
combined 26-week period may be taken for reasons other than to care for the servicemember.

Intermittent Leave
Medical leave for the employees own serious health condition, family care leave for the serious
health condition of the employees spouse, or registered domestic partner, parent or child, and
military caregiver leave may be taken intermittently or on a reduced schedule when medically
necessary. Where the intermittent or reduced schedule leave is for planned medical treatment, the
employee must make an attempt to schedule the treatment so as not to disrupt unduly the
Companys operations. Where state law allows family care leave to be taken intermittently or on a
reduced schedule in connection with the birth, adoption or foster placement of a child, it also will
be allowed under this policy. California employees are not required to take leave for the birth,
adoption, or foster care placement of a child in a continuous 12 week period. However, the basic
minimum duration for each period of intermittent leave is two weeks, except that the employee
may request and the Company will grant intermittent leave of less than two weeks duration on any
two occasions.
Military exigency leave also may be taken intermittently or on a reduced schedule.
Leaves Effect on Pay
Unless other paid time off is available to be substituted for family care, medical, military exigency
or military caregiver leave, such leave is unpaid.
Substitution of Paid Time Off
Under certain leave circumstances, employees may elect or may be required to use accrued but
unused paid time off (PTO). The substitution of paid time off for unpaid leave time does not
extend the total duration of leave to which an employee is entitled. For example, if an employee
has accrued two weeks of unused PTO, that PTO will be substituted for the first two weeks of
family care leave, leaving up to ten additional weeks of unpaid leave. Substitution of paid leave is
generally determined by the terms and conditions of the Companys PTO policies. If the
employee does not comply with the requirements in the Companys PTO policies, the employee
will not be entitled to substitute accrued PTO but still may be entitled to take unpaid FMLA
leave.
Leaves Effect on Benefits
Unless the employee elects otherwise, the Company will maintain the health benefits of an
employee on a medical, family care, military exigency, or military caregiver leave while the
employee is on FMLA leave under the same conditions as coverage would have been provided if
the employee had been continuously employed during the period of leave. Thus, the employee
must continue to pay his or her share of the health plan premiums during the leave. If the
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employee substitutes PTO for the unpaid leave, such payments will be deducted from the
employees pay through the regular payroll deductions. Otherwise, the employee must make
arrangements with the Company for the payment of such premiums. All other benefits will be
governed in accordance with the terms of each benefit plan and are the sole responsibility of the
employee.
If the employee fails to pay his or her share of the premiums during leave, or if the employee fails
to return from the leave at the expiration of 12 weeks (or 26 weeks in the case of a military
caregiver leave) for a reason other than the recurrence, continuation or onset of a serious health
condition for which leave under this policy is allowed or other circumstances beyond the
employees control, the Company can recover any health plan premiums paid by the Company on
the employees behalf during any periods of the leave.
Employees on family care, medical, military exigency or military caregiver leave, paid or unpaid,
do not accrue employment benefits, such as PTO, or seniority, while they are on leave.
Use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the
start of an employees leave.
Notice Requirements
Employees must notify the Company of their request for family care, medical, military exigency or
military caregiver leave as soon as they are aware of the need for such leave. For foreseeable
family care, medical, and servicemember care, the employee must provide 30 calendar days
advance notice to the Company of the need for leave, if possible. For events that are
unforeseeable 30 days in advance, the employee must notify the Company as soon as is
practicable and generally must comply with the Companys normal call-in or notice procedures.
If the leave is requested in connection with a planned, non-emergency medical treatment, the
employee must make a reasonable effort to schedule such treatment so as to avoid unduly
disrupting Company operations, and may be requested to reschedule the treatment so as to
minimize disruption of the Companys business.
If an employee fails to provide the requisite 30-day advance notice for foreseeable family care,
medical, and servicemember care without any reasonable excuse for the delay, the Company
reserves the right to delay the taking of the leave until at least 30 days after the date the employee
provides notice of the need for family care, military family or medical leave.
All requests for family care, medical, military exigency, and servicemember care leave should
include enough information to make the Company aware that the employee needs qualifying
leave, and the anticipated timing and duration of the leave, if known. Sufficient information may
include that the employee is unable to perform job functions, the family member is unable to
perform daily activities, the need for hospitalization or continuing treatment by a health care
provider, or circumstances supporting the need for military family leave. Employees also must
inform the Company if the requested leave is for a reason for which FMLA leave was previously
taken or certified.
Any requests for extensions of leave under this policy must be received as soon as is practicable
and must include the revised anticipated date(s) and duration of the leave. To the extent
permitted by law, the Company reserves the right to deny requests for extensions or deny
reinstatement to an employee who exceeds the leave amounts provided by this policy or fails to
L.A. Fitness 12/10

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provide requested medical certification. In addition, if you have a disability, you may be eligible
for leave under the Americans with Disabilities Act (ADA) or state law. For more detailed
information on extended leaves, please contact the Human Resources.
Once the Company is aware of the employees need for leave it will inform the employee whether
he or she is eligible under FMLA. If the employee is eligible, the notice will specify any additional
information required as well as the employees rights and responsibilities. If the employee is not
eligible, the Company will provide a reason for the ineligibility.
Certification
Any request for medical leave for an employees own serious health condition, for family care
leave to care for a child, spouse, registered domestic partner, or parent with a serious health
condition, or for military caregiver leave must be supported by medical certification from a health
care provider. For military caregiver leave, the employee must provide confirmation of a family
relationship to the seriously ill or injured servicemember. Employees generally must provide the
required certification within 15 calendar days after the Companys request for certification.
Any request for leave due to a qualifying military exigency must be supported by certification
from the employee accompanied by evidence of the covered military members active duty orders
or other documentation from the military. Employees must provide the required certification as
soon as practicable.
Failure to timely provide the required certification may result in the denial of foreseeable leave
until such certification is provided. In the case of unforeseeable leaves, failure to timely provide
the required certification may result in a denial of the employees continued leave. Any request
for an extension of the leave also must be supported by an updated medical certification.
The Company has developed forms for use in obtaining medical certifications that satisfy the
requirements of this policy. For military caregiver leave, the Company will accept Invitation
Travel Orders (ITOs) or Invitational Travel Authorizations (ITAs) in lieu of its medical
certification form.
It is the employees responsibility either to furnish a complete and sufficient certification or to
furnish the health care provider providing the certification with any necessary authorization from
the employee or the employees family member in order for the health care provider to release a
complete and sufficient certification to the Company to support the employees leave request.
Where permitted by state law, if the Company has reason to doubt the validity of the medical
certification provided by the employee, the Company may require the employee to obtain a
second opinion from a doctor of the Companys choosing at the Companys expense. If the
employees health care provider providing the original certification and the doctor providing the
second opinion do not agree, the Company may require a third opinion, also at the Companys
expense, performed by a mutually agreeable doctor who will make a final determination. It is the
employees responsibility to furnish his or her healthcare provider with the necessary
authorization for the disclosure of medical information to the doctor(s) who will provide the
second and third opinions. If the employee fails to provide the necessary authorization, the
request for leave may be denied, in accordance with applicable law.

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Designation of Protected Leave

Once the Company has enough information to determine whether the leave is FMLA qualifying,
the Company will inform the employee if leave will be designated as FMLA-protected and, if
known at that time, the amount of leave that will be counted against the employees leave
entitlement. If the Company determines that the leave is not protected, the Company will notify
the employee.
Recertification
The employee taking leave because of his or her own serious medical condition or the serious
medical condition of a family member may be required, except in cases of military caregiver leave,
to provide the Company with recertification at appropriate intervals.
For purposes of
recertification, the employer may request the same information as allowed by law for the original
certification. The employee must provide the requested recertification within 15 calendar days of
such a request, unless it is not practicable to do so despite the employees diligent, good faith
efforts.
Return to Work Certification
Where the leave is for the employees own serious health condition, the Company requires
employees to provide medical certification that he or she is fit for duty and able to return to work.
The Company may delay restoring the employee to employment or terminate the employee
without such certificate.
Reinstatement
Employees timely returning from a leave covered under this policy are entitled to reinstatement to
the same or equivalent position consistent with applicable law. For leaves under the FMLA, the
Company retains the right to deny reinstatement to employees who are among the highest paid
ten percent of all employees employed by the Company within 75 miles of the employees
worksite and whose reinstatement would cause substantial and grievous economic injury to the
Companys operations. An employee has no greater right to reinstatement than if he or she had
been continuously employed rather than on leave. The right to reinstatement may be different
under state law. The Company will comply with all applicable laws pertaining to reinstatement of
employees, including where required, the reasonable accommodation of employees who have
been on an approved leave.
The Company complies with applicable family care, medical leave, and military family leave laws.
Under the FMLA it is unlawful for any employer to: interfere with, restrain, or deny the exercise
of any right provided under FMLA; discharge or discriminate against any person for opposing any
practice made unlawful by FMLA or for involvement in any proceeding under or relating to
FMLA. If an employer has done so, an employee may file a complaint with the U.S. Department
of Labor or may bring a private lawsuit against an employer. FMLA does not affect any Federal
or State law prohibiting discrimination, or supersede any State or local law or collective bargaining
agreement which provides greater family or medical leave rights. If you have questions, or would
like further clarification about your rights under FMLA or other types of leave, please contact the
Human Resources.

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WORKERS COMPENSATION
Should you suffer a work-related injury, disease or illness, you will receive benefits from our
Workers Compensation Policy, paid for entirely by the Company. This program provides
coverage for medical expenses and weekly compensation payments. FMLA leave, if applicable,
may be counted towards time off taken under workers compensation.
To ensure your physical well-being and the correct processing of these claims, you must
immediately notify your manager of any injury occurring during, or as a result of, your
employment no matter how slight the injury appears to be.
Employees should be aware that when the Company has reason to believe that the injury or
disability status is fraudulent, the Company has an affirmative duty to cooperate with its insurance
carrier and the appropriate legal authorities to take action, including possible criminal action,
against the fraudulent acts.
WITNESS AND JURY DUTY

The Company recognizes that employees may be requested to fulfill their civic duties. If you are
called for jury duty or summoned by a court to serve as a witness, you may be excused from
employment for the period of such duty. You will normally not be paid by the Company for time
spent as a juror or witness. In cases of an extended leave, vacation and other benefits based on
length of service will continue to accrue only during the first thirty (30) days of the leave period.
Any employee who is required to appear as a witness or serve on a jury must provide the
Company with the official court notice or subpoena as proof that he or she is required to appear
in court.

VOTING RIGHTS
If an employee does not have sufficient time outside of working hours to vote in a statewide
election, he/she may, without loss of pay, take off up to two hours of working time to vote. Such
time must be taken at the beginning or end of the regular working shift, whichever allows the
most free time for voting while minimizing the time off from work. To exercise this right, the
employee must notify the Company at least two working days in advance to arrange the
appropriate voting time off.

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PROHIBITION AGAINST HARASSMENT AND COMPLAINT PROCEDURE

L.A. Fitness will not tolerate the harassment of any employee for any reason by any other
employee, supervisor, manager or person with whom L.A. Fitness does business. In addition,
harassment for any discriminatory reason, such as race, religion, color, age, sex, national origin,
ancestry, marital status, veteran status, physical or mental disability, medical condition including
genetic characteristics, military service, pregnancy or sexual orientation is against the law. With
this policy, L.A. Fitness prohibits not only actions which are severe enough to be unlawful but
also conduct and comments which are not severe enough to violate the law but which are still
inappropriate in our workplace.
A. Prohibited Conduct/Comments
Racial or ethnic remarks, slurs, or jokes will not be tolerated. Any other comments or conduct
which disparages individuals or groups based on any of the above categories are also not
tolerated.
Sexual harassment is also prohibited. Sexual harassment includes many forms of offensive sexual
behavior including, but not limited to:
1.

Unwanted sexual advances;

2.

Offering employment or promotion in exchange for sexual favors;

3.

Differential treatment after a negative response to sexual advances or after a

voluntary relationship has ended;

4.

Sexual gestures, displaying of sexually suggestive objects, pictures, posters, or

cartoons;

5.

Derogatory comments, epithets, slurs or jokes of a sexual nature;

6.

Graphic verbal commentaries about an individuals body, sexually degrading

words used to describe an individual;

7.

Vulgar or obscene letters, notes, or invitations;

8.

Physical conduct of an improper nature.

In addition, managers and employees with supervisory responsibility may not have a dating or
sexual relationship with any employee with whom they assign work, evaluate, or influence
employment or compensation decisions without both parties promptly advising the Human
Resources Department of such a relationship, so that appropriate assurances/arrangements can
be made to assure mutual consent and no adverse impact in the workplace.
B. Prevention
All employees are responsible to assure a workplace free of harassment. Toward that end, any
employee who is subjected to any offensive comments or conduct should tell the offending
person, which is often the best way to see that such comments/conduct stops immediately.
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However, if the employee is not comfortable advising the offending person or if that does not
accomplish an immediate and complete stop to any offending comments/conduct, the employee
is responsible for immediately contacting the Human Resources Department. As soon as a report
or complaint comes to our Human Resources Department, they will take prompt investigatory,
corrective, and preventative action as appropriate in the circumstances.
In addition, any other employee, supervisor, or manager who becomes aware of any such
objectionable conduct by any employee, supervisor, manager, vendor, or member must
immediately advise the Human Resources Department, to assure that such conduct does not
continue.
Violations of this policy by Company personnel will not be permitted and may result in discipline,
up to and including immediate discharge.
No employee will be retaliated against for bringing their concerns to the Companys attention.
Therefore, do not allow an inappropriate or unlawful situation to continue by not reporting it,
regardless of who is creating that situation. No person in this organization is exempt from this
policy.

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THREATS AND VIOLENCE

Our Company will not tolerate any form of workplace violence or threats of harm against any
other person either at or away from work. You are responsible for reporting any instances of
such improper conduct or threats to our Human Resources Department as soon as you have any
concern related to your employment regarding your own safety or the safety of any other
employee or person.
Employees who engage in such improper conduct are subject to immediate termination.

REIMBURSEMENT OF BUSINESS EXPENSES

The Company will reimburse employees for reasonable and necessary expenses incurred in the
performance of the employees job duties. However, to receive such reimbursement, the
employee needs to first obtain approval from the appropriate supervisor before incurring the outof-pocket expense and the employee shall provide the original copy of the resulting receipt. If it
is not possible to provide a receipt, such as on a small cash tip, the employee must justify the lack
of the receipt, the amount should be less than $25, and it must represent a reasonable sum in the
circumstances.
Reimbursement requests are to be completed by the employee, approved by the employees
supervisor, and submitted to the accounts payable department on a reimbursement request form
or through the on-line expense reimbursement system within a reasonable time (not more than 90
days) after incurring the expense.

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INSURANCE BENEFITS
Full-time employees who have been employed in the Corporate Office or have been a managerial
club employee for three (3) continuous months will be eligible to participate in the Companys
health and dental insurance programs beginning on the first day of the month following the
employees completion of these three continuous months. To receive the benefits, the employee
must timely submit all appropriate paperwork as requested by the Human Resources Department,
and otherwise qualify for eligibility under the terms of the respective plans. Such benefits for the
employee are subsidized by the Company, but require an employee contribution in an amount
that varies year-to-year and depends on the type of coverage selected by the employee. Eligible
employees who wish to also cover their dependents may do so at an additional cost.
The specific benefit plans that apply to you may vary. For further information, refer to the
separate benefits booklets given to you at the time of enrollment. While the Companys Human
Resources Department is available to answer any questions which you may have concerning your
eligibility and coverage, the benefit plan documents are controlling.
Except where prohibited by law, the Company will continue to pay its share of the monthly
insurance premiums up to a maximum of thirty (30) days after the commencement of any leave of
absence. After the initial 30 days, the employee will be responsible for arranging pre-payment of
the premiums thereafter.
The Company reserves the right to supplement, amend, modify or delete these benefits, including
the right to change carriers, eligibility requirements, plan features and methods of contribution.

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GENERAL POLICIES AND PRACTICES

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PERFORMANCE REVIEWS
If you receive a performance review, the purpose of the review is to let the employee know how
well they he/she is performing assigned job duties, areas where improvement is needed and the
observed potential for career development and advancement.
Pay increases are not automatic with each performance review; they are based on demonstrated
performance, an analysis of your overall work record, including attendance, and the Companys
financial condition. An individual employee may be considered for increases based upon his or
her current salary, production, performance, attendance, conduct, ability, seniority and specified
pay ranges.
In the event a leave of absence requires you to be away from work for a period of time, your
performance review may be pushed back accordingly.
PERSONAL PHONE CALLS, MAIL AND VISITORS
Employees are expected to keep personal phone calls and e-mails to an absolute minimum in
order to keep our phones free for business purposes. Likewise, employees are also expected to
receive all personal mail, facsimiles, e-mails, and the like, at their places of residence rather than at
work.
With few exceptions, personal visitors are not permitted during work hours. Visitors are required
to register at the main reception area and are not permitted in work areas unless accompanied by
authorized personnel.

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PERSONAL BELONGINGS
The Company will not be responsible or liable for any personal property of an individual that is
lost, stolen or damaged. The responsibility for safeguarding, replacing or repairing personal
property lost, stolen or damaged while on Company premises or in a Company vehicle, is that of
the employee. Consequently, we encourage employees not to bring valuable personal property to
work.
PERSONAL APPEARANCE OF EMPLOYEES
It is the policy of the company that an employees dress and grooming should be appropriate to
the work situation. The properly attired employee helps to create a favorable and professional
image for the Company. Accordingly, the personal appearance of employees is to be governed by
the following standards at a minimum:
(A)

Employees are expected to have a professional appearance and attire during all
working hours. The wearing of suggestive attire, body piercings, exposure of
tattoos, skin or undergarments, jeans, shorts, sandals, t-shirts, and similar items of
casual attire is not permitted.

(B)

Hair should be clean, combed and neatly trimmed or arranged.

At times, certain departments or regions may have additional guidelines for maintaining a
professional appearance that will govern your employment. Any employee who reports for work
while not in compliance with these standards (as determined by the employees supervisor or
manager) may be sent home to correct any problems with his or her personal appearance. Such
employee will not be permitted to clock in until he or she returns to the work place.

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NON-FRATERNIZATION
In order to promote the efficient operation of the Companys business and to avoid
misunderstandings, complaints of favoritism, other problems of supervision, security, and morale,
and possible claims of sexual harassment, managers and employees with supervisory responsibility
may not have a dating or sexual relationship with any employee with whom they assign work,
evaluate, or influence employment or compensation decisions without both parties promptly
advising the Human Resources Department of such a relationship, so that appropriate
assurances/arrangements can be made to assure mutual consent and no adverse impact in the
workplace.

EMPLOYMENT OF RELATIVES
Relatives of employees may be hired but are normally prohibited from working in the same
department or with any supervisory influence over the other. Certain positions, especially in the
Corporate Office, normally may not be held by relatives because of the scope of knowledge and
influence involved and the potential for conflicts of interest. A relative is your spouse and anyone
related to you or your spouse, such as parent, child, grandparent, grandchild, brother, sister, aunt,
uncle, nephew or niece.

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SAFETY RULES AND REGULATIONS

You have the duty to comply with the standards that are established for your protection and to
work as safely as possible. Please report to your supervisor any condition you observe to be
dangerous or potentially hazardous.
We work very hard to provide you with a safe work environment. However, there are certain
standards of behavior which we all must observe in order to maintain safety throughout the
workplace. Your safety, and that of those who work with you, is one of our greatest concerns.
With an alert safety attitude, you can help to eliminate painful and costly accidents. Each
employee is expected to follow these general rules:

L.A. Fitness 12/10

(1)

Anyone known to be under the influence of intoxicating liquor or drugs, shall not
be allowed on the job while in that condition.

(2)

Horseplay, scuffling, and other acts which tend to have an adverse influence on
the safety or well-being of the employees are prohibited.

(3)

Means of egress shall be kept unblocked, well lighted and unlocked during work
hours.

(4)

In the event of fire, sound alarm and evacuate.

(5)

Upon hearing fire alarm, stop work and proceed to the nearest clear exit. Gather
at the designated location.

(6)

Only trained workers should attempt to respond to a fire or other emergency.

(7)

Exit doors must comply with fire safety regulations during business hours.

(8)

Stairways should be kept clear of items that can be tripped over and all areas under
stairways that are egress routes should not be used to store combustibles.

(9)

Materials and equipment will not be stored against doors, or exits, fire ladders or
fire extinguisher stations.

(10)

Aisles must be kept clear at all times.

(11)

Work areas should be maintained in a neat, orderly manner. Trash and refuse are
to be thrown in proper waste containers.

(12)

All spills shall be wiped up promptly.

(13)

Always use the proper lifting technique. Never attempt to lift or push an object
which is too heavy. You must contact your manager when help is needed to move
a heavy object.

(14)

Never stack material precariously on top of lockers, file cabinets or other relatively
high places.
30

L.A. Fitness 12/10

(15)

When carrying material, caution should be exercised in watching for and avoiding
obstructions, loose material, etc.

(16)

Do not stack material in an unstable manner.

(17)

Report exposed wiring and cords that are frayed or have deteriorated insulation so
that they can be repaired promptly.

(18)

Never use a metal ladder where it could come in contact with energized parts of
equipment, fixtures or circuit conductors.

(19)

Maintain sufficient access and working space around all electrical equipment to
permit ready and safe operations.

(20)

Do not use any portable electrical tools and equipment that are not grounded or
double insulated.

(21)

All electrical equipment should be plugged into appropriate wall receptacles or

into an extension of only one cord of similar size and capacity. Three-pronged
plugs should be used to ensure continuity of ground.

(22)

All cords running into walk areas must be taped down or inserted through rubber
protectors to preclude them from becoming tripping hazards.

(23)

Solutions that may be poisonous or not intended for consumption should be kept
in well labeled containers.

(24)

If you are injured on the job, report it immediately to your manager.

(25)

If you observe any unsafe condition report it immediately to your manager.

(26)

No equipment will be operated without all safety devices in place.

(27)

No broken or damaged equipment will be used by any employee.

31

USE OF COMPANY PROPERTY

All equipment provided by the Company, such as desks, lockers, file cabinets, vehicles, computer
systems, computer software, diskettes, facsimile machines, electronic mail, phones, voice mail, and
other items, are considered to be Company property and are to be used for business purposes
only. You should have no expectation of privacy associated with such Company equipment or
the information that you store on or send through the Companys systems. These items may need
to be reviewed by Company management in the ordinary course of business, or whenever a need
arises. Such review or search may occur without prior notice. For that reason, any personal or
private information, documents, or items should be kept at home.
Computer, Electronic and Telephonic Systems
Passwords are designed to maintain the confidentiality of the Companys business related
information and to give employees access to all or part of the Companys computer, electronic,
facsimile, and/or telephone systems as part of their work functions. They are not designed to
provide confidentiality of any personal messages or documents. You should have no expectation
of privacy in information that you store or send through the Companys computer, electronic,
facsimile, and/or telephone systems. The Company reserves the right to enter and review all
computer databases and electronic transmissions, including, but not limited to, computer,
electronic, facsimile, telephone and voice mail systems.
In addition, employees may not use e-mail, interoffice mail, or other Company communications
to send any material which violates the Companys no discrimination or no harassment policy.
For example, sexual, racial, or ethnic slurs or humor on e-mail is not acceptable and will not be
tolerated. In addition, crude, vulgar, offensive, or pornographic material may not be received,
sent, or accessed on any computer, e-mail or other Company property.
Company Equipment
Locks on desks, file cabinets, lockers and vehicles are designed to protect Company property,
trade secrets, and other items and information related to Company business. They are not
designed to provide privacy of any personal or private property.
These rules are to assure that all Company property is used for business purposes and that all
trade secrets and other internal proprietary information is safe-guarded, and to advise employees
that such equipment is not to be used to store information or items which they consider to be
private or personal.

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CONFLICT OF INTEREST POLICY

Each of us has an obligation to avoid any activity, agreement, business investment or interest, or
other situation which could be construed as a conflict with the Companys best interests or give
the appearance of taking money, merchandise or services from a customer or vendor for personal
gain. A conflict of interest occurs when employees place themselves in positions where their
private interests have, or appear to have, an adverse effect on the best interests of the Company,
its customers or suppliers or on the proper performance of their job assignments.
If at any time an actual, or potential, conflict of interest occurs, you are expected to immediately
disclose the circumstances of the conflict to your manager. Failure to disclose information
regarding any area or issue of conflict may result in disciplinary action up to and including
termination.
Contact your supervisor or the Human Resources Department if you have any questions
regarding this matter.

DUAL EMPLOYMENT
Full-time employees should not accept other employment or self-employment that may
potentially impact your job responsibilities with the Company without the specific prior approval
of your supervisor or the Human Resources Department.

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CONFIDENTIAL NATURE OF COMPANY AFFAIRS

It is the policy of the Company that the general internal business affairs of the organization
should not be discussed with anyone outside the organization except as may be required in the
normal course of business. Information designated as confidential is to be discussed with no one
outside the organization and only discussed within the organization on a need to know basis.
Managers are responsible for identifying information that should be classified as confidential.
Information that should normally be reviewed for confidentiality includes, but is not limited to:
sales figures, customer counts, number of members, customer, supplier, and prospect lists;
marketing plans, research data, and other trade secrets or proprietary information. Once
information has been designated as confidential, it should be clearly identified as such and
properly secured.
Employees are prohibited from disclosing material or inside information that might affect the
Companys financial security to anyone outside the organization until such information has been
made available to the public by management. Employees are also prohibited from using such
information for their own personal benefit or gain.
Employees should refer inquiries seeking information concerning applicants for employment or
current employees to the Human Resource Department.
Employees violating this policy will be subject to discipline, up to and including termination and
may also be subject to legal action.

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PROTECTING THE COMPANYS PROPRIETARY AND CONFIDENTIAL

INFORMATION
The value of proprietary technology, ideas, creations, innovations and information intellectual
property often exceeds the value of more tangible items, such as physical property. Our
intellectual property assets are critically important. They are central to developing new products
or processes, attracting new business opportunities, and maintaining our existing business in a
highly competitive environment.
If we do not identify and protect our intellectual property, we risk losing our rights to it and the
competitive advantage it offers.
Some examples of intellectual property are:

Confidential and proprietary business information

Trade secrets and know-how

Patented and nonpatented technology, including both product, equipment and

process technology

Trademarks, trade names, and trade dress

Copyrighted information

Business processes and systems

Software developed by the Company

Although you may use confidential and proprietary information or other intellectual property of
the Company to perform your job, it must not be shared with others outside of the Company or
your department unless required by law or the individuals have a legitimate need to know the
information as a part of their jobs and have agreed to maintain the confidentiality of the
information.
Some typical examples of confidential and proprietary information include:

L.A. Fitness 12/10

Financial data

Business records

Technology and information on corporate strategy

Modeling and other analytical and/or management techniques

Pricing information

Customer lists

Marketing strategies
35

Compensation data

Organization charts

Personal employee information, including medical records and other data

Technical data, processes, and equipment

Software and programming developed by the Company

Technical product and process information

Take care not to lose, misplace, or leave confidential information unattended. Do not leave such
information in places where others may easily access it, such as open files of computers, or
documents left on fax machines, photocopiers, on your desk, etc. Similarly, do not casually
discuss confidential information where others might overhear. Use caution when using
speakerphones and cellular telephones, and talking in public places, such as restaurants or
airplanes. You must always adhere to the specific security measures or procedures the Company
has established to protect its intellectual property and confidential and proprietary information.
You are not allowed to use the Companys intellectual property or confidential and proprietary
information for personal benefit or for the profit or benefit of persons outside of the Company.
Intellectual property developed by employees and Company representatives is the property of the
Company. You are prohibited from unauthorized disclosure, duplication, or distribution of this
intellectual property.
When employment ends, the obligation to protect the Companys intellectual property and
confidential information continues. All property, documents, materials, and files, including all
electronic data (databases, e-mails, electronic documents, key cards, etc.), must be returned to the
Company. No copies of Company intellectual property or confidential information should be
retained.
If you have any questions as to whether information should be treated as confidential and
proprietary, or as other intellectual property, contact the Human Resources Department.

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36

DRUG AND ALCOHOL POLICY

L.A. Fitness recognizes a responsibility to help provide a safe and productive work environment
for all employees and to minimize the public safety risks of our operations. Toward this end, L.A.
Fitness has a particular concern about substance abuse, since it can affect an employees
productivity and efficiency; jeopardize the safety of the employee, coworkers, and the public;
impair the reputation of L.A. Fitness and its employees; and violate state and federal statutes.
WHAT IS PROHIBITED AND REQUIRED OF EMPLOYEES
Alcohol
The possession, consumption, purchase or sale of alcohol on Company premises is prohibited.
Furthermore, no employee shall be under the influence of alcohol while on Company premises or
while performing Company business off Company premises.
In addition, persons whose positions with L.A. Fitness require driving as a part of their work may
be removed from such positions if found to have been driving under the influence of alcohol,
whether on duty or off duty.
Legal Drugs
Legal drugs are those prescribed or over-the-counter drugs which are legally obtained by the
employee and used for the purpose for which they were prescribed and sold.
Even such legal drugs may affect the safety of the employee or coworkers or members of the
public. Therefore, any employee who is taking any legal drug which might impair safety,
performance, or any motor functions must advise his or her supervisor before reporting to work
under such medication. If L.A. Fitness determines that such use does not pose any safety or
product quality risk, the employee will be permitted to work.
Illegal Drugs
Illegal Drugs are drugs or controlled substances which are (1) not legally obtainable or (2)
legally obtainable, but not obtained in a lawful manner. Examples include cocaine and marijuana,
and prescription drugs which were not lawfully obtained.
The use, purchase, sale, transfer, possession, being under the influence, or the presence in ones
system of a detectable amount of an illegal drug by any employee is prohibited (1) on Company
premises, (2) where the employee is performing Company business off Company premises, or (3)
where such activity away from Company premises or business affects the employees suitability
for continued employment or may harm the reputation of L.A. Fitness and its employees.
TESTING FOR DRUGS AND ALCOHOL
A blood test, urinalysis, or other drug/alcohol screening may be required
A.
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Of any applicant to whom a job offer has been made;

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B.

Of any employee where there is reason to believe that he or she may be using
drugs or may be under the influence of drugs or alcohol. Reason to believe
includes an injury or accident at work where there is reason to believe that
employee impairment may have been a factor;

C.

As part of occasional follow-up testing if the employee is found to have breached

these policies but has been permitted to remain employed;

D.

Whenever an employee is working in a job classification which has been

designated by L.A. Fitness as a safety risk job classification for purposes of this
policy; or

E.

If such test is either required or permitted by any law or government regulation.

An employees cooperation with such a drug or alcohol screening test is required as a condition of
employment. The employees refusal to cooperate with such a request and to provide a specimen
is grounds for termination where there is reason to believe that the employee has violated this
policy and the employees refusal to cooperate has prevented a medical determination of his or
her condition.
SEARCHES
A search of an employee and his or her locker, work area, lunch box, personal belongings, or
vehicle may be conducted when there is reason to believe that the employee is in violation of this
policy. An employees consent to such search is required as a condition of employment. The
employees refusal to cooperate with such a request is grounds for termination.
VIOLATIONS OF POLICY
Any violation of this policy will be grounds for termination of employment.

SELF-IDENTIFICATION TO COMPANY MANAGEMENT/SUPERVISION

Employees who take the initiative of advising their supervisor or manager in advance that they
have a medical problem with regard to alcohol or drug use, who have not engaged in misconduct
or repeated poor performance at work, and who demonstrate a commitment to take the necessary
remedial action, will be eligible for a medical leave of absence for such purpose and will not be
subjected to disciplinary action.

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ACCIDENTS ON COMPANY PREMISES

Any accident that occurs on Company premises, be it that of an employee or non-employee,
should be reported immediately to your manager. For your own safety and the safety of others,
please do not attempt to give medical aid to an injured person, unless you are qualified to do so.
Do not hesitate to seek the assistance of a manager. In addition, please remember that only the
Human Resources Department can answer questions about the Companys liability to injured
persons. Please do not volunteer any information or attempt to answer any questions, but direct
those questions to the Human Resources Department.
If an employee is injured on the job, he or she may be entitled to benefits under the State
Workers Compensation insurance system. The Human Resources Department maintains all
necessary workers compensation forms.
If a member is injured on our premises and reports that injury to management of the Club, the
accident must be reported to the Corporate Office immediately.
All accidents/thefts must be recorded on a written report and forwarded to the Human Resources
Department at the Corporate Office.

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GENERAL RULES OF CONDUCT

All employees are expected to conduct themselves and behave in a manner which is conducive to
the efficient operation of the Company. Such conduct includes, but is not limited to:
(A)

Reporting to work punctually as scheduled and being at the proper work station,
ready for work, at the assigned starting time;

(B)

Notifying the manager in advance when the employee will be absent from work or
is unable to report for work on time;

(C)

Complying with all Company safety regulations;

(D)

Wearing clothing appropriate for the work being performed and appearing for
work in a manner consistent with good hygiene, safety and good taste;

(E)

Eating meals only during meal periods;

(F)

Maintaining work place and work area cleanliness and orderliness;

(G)

Treating all customers, visitors, and fellow employees in a courteous manner; and

(H)

Reporting to management suspicious, unethical, or illegal conduct by fellow

employees, customers, or suppliers.

Although you and the Company each has the right to terminate the employment relationship at
any time and for any reason, with or without cause or notice, there is certain conduct which will
result in disciplinary action up to and including immediate dismissal. Although it is impossible
and impractical to list all of the different types of conduct that would result in discipline or
dismissal, the following are some examples of conduct not tolerated by the Company:

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(A)

The reporting to work under the influence of alcoholic beverages and/or illegal
drugs and narcotics or the use, sale, dispensing, or possession of these substances
on Company premises, or on Company time;

(B)

Engaging in any form of harassment or discriminatory conduct;

(C)

The possession of any dangerous or unauthorized items on Company property,

including firearms, explosives or other weapons;

(D)

Insubordination or the refusal by an employee to follow managements

instructions concerning a job related matter;

(E)

Fighting or assault on a fellow employee or customer;

(F)

Improper attire or inappropriate personal appearance;

(G)

The use of profanity or abusive language;

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(H)

Release of confidential information about L.A. Fitness or members;

(I)

Theft or unauthorized removal or possession of property from the Company,

fellow employees, customers or any one on the Company property;

(J)

Altering or falsifying any timekeeping record, intentionally using another

employees time card, allowing someone else to use your time card, removing any
timekeeping recording from the designated area without proper authorization or
destroying such a record;

(K)

Interfering with the work of others during working hours by means of horseplay,
scuffling, fighting, throwing things or other similar or disruptive behavior;

(L)

Falsifying or making a material omission on an employment application or making

erroneous entries or material omissions on L.A. Fitness records;

(M)

Misusing, destroying or damaging property of L.A. Fitness, a fellow employee, a

member or visitor;

(N)

Smoking where prohibited;

(O)

Unsatisfactory performance;

(P)

Engaging in any conduct and/or communications which damages the interests of

the Company;

(Q)

Falsifying membership agreements, forgery, fraud or using a members account

information without authorization.

This list is not all inclusive, but is provided to be illustrative of typical prohibited conduct.

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MEMBER RELATIONS
It is the policy of L.A. Fitness to provide its members with the best possible service. Employees
are expected to treat members in a courteous, respectful manner at all times. Employees should
always remember that, in most situations, the member comes first. Treat members in the same
manner in which you would want to be treated if the roles were reversed. Employees having
personal contact with members are expected to promote the Companys best interest and to build
customer goodwill. Employees should be prepared to listen to member inquiries and complaints
and then deal with them in a responsive, professional manner. Be particularly careful to exercise
courtesy and thoughtfulness in using the telephone. A positive telephone conversation with a
member and/or potential member can exchange goodwill, while a negative experience can destroy
a valuable relationship.
IF YOU MUST LEAVE US
We hope that your association with the Company will be pleasant. However, should you find it
necessary to leave us, we ask that you provide your manager with at least two weeks advance
notice of your departure. Although there is no guarantee that your notice period will be honored
by the Company, your thoughtfulness will be appreciated and considered in the event you reapply for employment with the Company. If at any time you return to work for L.A. Fitness, you
will need to comply with the introductory periods as if you were a new employee of the Company.

A FEW CLOSING WORDS

This handbook is intended to give you a broad summary of things that you should know about
L.A. Fitness. The information in this handbook is general in nature and, should any questions
arise, your manager and the Human Resources Department should be consulted for complete
details. The policies, rules and benefits described in this handbook are subject to any changes that
may be made by the Company from time to time, at its sole discretion. Please do not hesitate to
speak to your manager or the Human Resources Department if you have any quest

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L.A. Fitness 12/10

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ions.

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