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This booklet provides general information about Scholastic‟s employee benefits, policies,

and procedures. If you have specific questions regarding a particular benefit, policy, or

procedure and how it applies to your situation, please contact your Human Resources

Manager.

These materials are not intended to create or express a contract of employment or

obligation. We reserve the right to change or eliminate any benefit, policy, or procedure

at any time, without prior notice.

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Table of Contents Adoption Assistance Program

Attendance, Time & Overtime

Cluster Reporting System Paychecks Sick Days

Confidentiality Policy

Donations Policy

Drug Free Workplace

Electronic Media Policy

Emergency Information

Employee Referral Bonus Program

Equal Employment Opportunity/Affirmative Action Program Policy

Family and Medical Leave Act Policy

Fitness Center

Facilities

General Information

Accounting, Birthday Breakfast, Employee Directory, Employee ID Cards, Employee Product Discount, Internal Communications, Library Services, Office Supplies, Pantries, Scholastic Store, S.O.D.A., Smoking Policy, Training and Development

Inside Information & Restrictions on Trading Stock Policy

Military Leave Policy

Non-Discrimination and Anti-Harassment Policy

Ordering Temporary Staff (Adecco)

Recycling Policy

Security Procedures

Short-Term Sick Leave Policy

Short Term Disability benefits Salary Continuation benefits

Tuition Assistance Policy

Voice Mail Policy

Work and Family Policy

Child Care Leave, Compassionate Leave, Emergency Leave, Jury Duty, Sabbatical Leave, Transition Leave

Workers’ Compensation Policy

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Adoption Assistance Program Scholastic‟s Adoption Assistance Program will reimburse an employee up to $2,000 for

expenses related to the adoption of a child. Eligible expenses include public and private

agency fees, legal fees, court costs, related travel expenses, temporary foster care

charges, and foreign adoption fees. To be eligible for reimbursement, the employee must

have at least one year of regular, full-time employment, prior to the adoption and must be

actively at work at the time reimbursement is made.

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Attendance, Time & Overtime

Cluster Reporting System Each employee is assigned a cluster reporter whom they must report time worked and any

time off from work. The cluster reporter‟s responsibility is to track and report this time

for each employee within the cluster system. Check with your supervisor to obtain the

name of your cluster reporter.

There are two categories of employees:

Exception Time Reporters are full-time employees who are scheduled to work 35, 37.5

or 40 hours per week (depending on work location). All employees must report time off

(e.g., vacation, sick, personal, jury duty, etc.). Non-exempt employees must report

manager-approved overtime.

Positive Time Reporters are employees who are not scheduled to work 35, 37.5 or 40

hours per week (depending on work location). These employees must report hours

worked to get paid as well as reporting vacation, sick, personal, etc.; if they qualify.

Paychecks Employees are paid every other Friday and paychecks/pay stubs are mailed to the

employee‟s homes. Employees can arrange to have their paychecks deposited directly to

their bank account by completing a Direct Deposit Authorization form available on the

intranet or from Human Resources.

Paid Sick Days

Regular, full time employees are eligible to receive pay for occasional absences due to a

non-work related illness or injury. Excessive absenteeism will be treated as a

performance issue and is subject to disciplinary action. If an absence due to an illness or

injury exceeds five consecutive business days, the employee may be eligible to receive

benefits under the Short Term Sick Leave program (page 3).

Vacation and Personal Days

Refer to the Scholastic Vacation and Personal Day Policy on page 42.

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Confidentiality Policy During the course of their employment by Scholastic Corp., employees have access to

certain private, confidential and/or proprietary information relating to the business of

Scholastic Corp., related entities and/or their respective partners, officers, personnel,

contractors, customers or clients.

Each employee is prohibited, during his/her employment by Scholastic Corp. and

thereafter, from directly or indirectly disclosing, furnishing or making accessible to any

third party any such private, confidential or proprietary information. For the purpose of

this policy, private, confidential and/or proprietary information shall include, but not be

limited to, the names of past, present or potential customers; the existence and terms of

licensing or publishing agreements, the amount of licensing and other fees; financial

information; methods of operation, organization, pricing or marketing; business policies

and plans; information concerning relationships with past, present or potential licensees

and other customers or clients of Scholastic Corp. The sole exceptions to the prohibition

against disclosure are (a) disclosure made with the prior written authorization of

Scholastic Corp. and (b) disclosures made under compulsion of law.

If any employee violates, or threatens or attempts to violate, this policy, his/her

employment may be terminated immediately. In addition, in the event of a violation, or

threatened or attempted violation, of this policy, and regardless whether the violator is

still employed by Scholastic Corp. at the time, Scholastic Corp. shall be entitled to seek

any and all legal and equitable relief, including but not limited to the recovery of

damages, an injunction restraining the disclosure of private, confidential and/or

proprietary information relating to Scholastic Corp. or any related entity and injunctions

prohibiting the employee or former employee from rendering services to any person or

entity to whom such private, confidential and/or proprietary information has been

disclosed.

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Donations Policy

Overview At Scholastic, we believe it is our corporate responsibility to use our unique assets to

support the well being of children and their families and enrich their learning

experiences. The company places special emphasis on promoting reading and literacy and

recognizing the achievements and best practices of outstanding educators.

In order to fulfill our mission, Scholastic:

• Provides books and other in-kind support, as well as technical and financial aid, to

bona fide literacy programs that have a proven ability to meet the needs of

children and families. Outreach efforts are focused on helping the most at-risk

young people and families with a particular emphasis on inner-city and rural

areas.

• Partners with educational institutions and associations to support and create

programs that promote excellence in the teaching profession and leadership

development among educators.

• Highlights best practices in teaching and learning through Scholastic‟s teacher

resource networks.

• Promotes the development of expertise in creative expression among students by

administering and supporting recognition programs at the national and local

levels.

• Supports the outreach activities of Scholastic‟s business divisions and individual

employees.

Donations Policy

Believing that literacy is the foundation of learning, Scholastic focuses its corporate

contributions and in-kind donations on efforts directed toward improving reading skills

and fostering a joy of reading among children. The majority of financial contributions

made by the company is initiated by Scholastic and is not in response to unsolicited

requests. Scholastic‟s Community Affairs division reviews requests for financial

contributions; however, funding is unlikely.

Scholastic also initiates the majority of its in-kind donations as well. Through the

Scholastic Book Grants program, an in-kind giving initiative, the company seeks to

provide books and other reading materials to non-profit organizations that serve children

and families in need. Annually, the company identifies several organizations to receive

large-scale grants of 100,000 or more books. Organizations selected to receive these large

grants are challenged to creatively use the donations to meet the literacy needs of at-risk

children.

Scholastic disburses smaller book grants and other in-kind donations. Priority is given to

literacy organizations that have tax-exempt classification under sections 170(c) or

501(c)(3) of the U.S. Internal Revenue Code. Requests from organizations that serve the

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needs of at-risk children or families, particularly those living in inner-city or rural areas,

are more likely to be granted.

The company does not grant requests for the following: individuals, individual schools,

scholarships, scholarship funds, political labor, religious, fraternal or sports groups,

special events, fundraisers or capital campaigns. Scholastic does not buy advertising in

school or church publications.

Scholastic will consider requests originating from outside of the United States if they

meet the above criteria and originate in a region where here is a Scholastic subsidiary.

All donation requests, including those initiated by Scholastic employees on behalf of

organizations, must be submitted via the Scholastic Employee Donation Request Form.

Phone, fax or e-mail requests will not be considered. Requests for book donations must

indicate intended book use and the grade levels of children to be served. Organizations

are asked to provide proof of tax-exempt status. Response time to requests is six to eight

weeks.

Scholastic Employee Donation Request Form that can be obtained by contacting:

Scholastic Community Affairs

555 Broadway

New York, NY 10012

Repeat requests from (or for) organizations that have received a donation within the

calendar year will not be considered.

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Drug Free Workplace Policy Scholastic is a Drug Free Workplace. We are committed to promoting the overall health

and wellness of our employees. The Drug Free Workplace Act of 1989 prohibits the

manufacture, distribution, dispensation, possession or use of a controlled substance in the

workplace. It is Scholastic‟s policy to terminate immediately and without severance

anyone found in violation of this policy. Any employee whose use of drugs or alcohol off

the worksite impacts his/her ability to perform the job will be required to enter a

counseling program, as a condition of continued employment by Scholastic.

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Electronic Media Policy

In order to help employees and other users more effectively perform their jobs in this age

of technology, the Company provides “business computers,” electronic mail (“e-mail”)

Internet and Intranet access. Business computers are all company workstations that are

the property of Scholastic, including desktop, laptop and notebook computers. All users

are responsible for ensuring that these resources are used in accordance with Company

policy and the law.

In addition to business computers, all e-mail messages and electronic files created or

stored on such business computers, Company-provided hard disks or any other removable

media are Company property and, along with use of the Internet, may be subject to

Company monitoring. The Company may monitor for inappropriate use, security,

network management and other business reasons. Users may also be subject to

limitations on their use of computer-related resources at the discretion of the Company.

The Company’s electronic media systems (i.e., e-mail, Internet) incorporate

guidelines for personal use, however, users do not have a personal privacy right in

any material created, sent, received or stored, and such material is the sole property

of the Company. The distribution of any information through electronic media systems

or the storage of any information on a user’s computer is subject to review by the

Company. The Company has and reserves the right to access, enter, search, inspect,

monitor, and disclose the contents of any user’s computer files or e-mail messages at

any time and for any reason without notice to the user. Among the reasons that may

warrant accessing a user’s computer files or use of electronic media is a need to

investigate activity which may constitute misconduct, represent a potential conflict of

interest, violate criminal or civil law, and/or adversely affect the Company’s interests, the

interests of the Company’s customers, partners, subsidiaries or the interests of any

employee of the Company.

This policy also applies in circumstances where users are accessing the Company-

provided electronic media systems from a remote location (i.e. home). Use of a business

computer or Company-provided electronic media system constitutes consent to all

of the terms and conditions of this policy.

Prohibited Uses of the Computer, Internet and E-Mail It shall be a violation of this Policy for any user to:

Send messages that contain obscene, hateful or derogatory language, or that violate in

any way the Company’s equal employment opportunity or non-discrimination and

anti-harassment policy, including the transmission of improper or offensive material

relating to race, sex, age, religion, nationality, sexual orientation, disability or any

other characteristic protected by law.

Send messages that are defamatory or intended to annoy, harass or intimidate another

person.

Solicit business for personal gain or profit.

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Send solicitations (for any cause or concern), advertisements, or classifieds.

Send chain letters or any message containing a system/virus notification.

E-mail messages regarding a system/virus alert originated by the Company’s System

Administrator may be forwarded as appropriate.

Send e-mail to more than thirty (30) persons without proper authorization.

Access any Internet sites that contain adult-oriented, pornographic, obscene, indecent,

racist, or otherwise inappropriate material, and/or downloading, printing or copying

such material.

Make or post indecent remarks or materials.

Send (upload), receive (download), reproduce or distribute commercial software or

any copyrighted materials, trade secrets, proprietary financial information or similar

materials without appropriate authorization. If you are unsure about whether certain

information is copyrighted, proprietary or otherwise inappropriate for transfer, you

should resolve all doubts in favor of not transferring the information and consult the

Corporate Legal Department.

Send confidential or proprietary Company information to persons not authorized to

receive it, which information includes, but is not limited to: financial information,

new business and product ideas, marketing strategies and plans, customer lists,

technical product information, computer source codes and information about business

relationships.

Knowingly input any false or inaccurate information into any Scholastic system.

Examine, change or use another person’s files, messages or user name without

appropriate authorization (except for authorized System Administrators).

Use another person’s computer without authorization or for any improper purpose.

Use another person’s User I.D. or password.

Use Company equipment to perform work for another entity.

Install software on Scholastic business computers without proper authorization or

otherwise violate the Software License Policy described herein.

Use business computers or electronic media systems in a manner that interferes with

the users job duties, the duties of others, affects productivity or consumes significant

resources.

Disable any type of Anti-Virus program (e.g. Norton), which is installed on all

business computers or servers, connected to the company’s computer networks.

Intentionally introduce and/or execute a computer virus or a similar type malicious

code with the intent of disrupting company operations.

Knowingly establish or allow suppliers, vendors or contractors local or remote access

to the Company’s business computers, electronic media systems (including the

Intranet) or other network resources without appropriate authorization from Human

Resources and the Information Technology Group.

Any employee who discovers or becomes aware of a violation of this policy should report

the violation to his/her management or local Human Resources. Users who violate this

Policy may be subject to disciplinary action, up to and including termination. The

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Company also reserves the right to report any illegal conduct to the appropriate

authorities.

Use of E-Mail and Internet Company business computers and electronic media systems are provided to users to assist

them in conducting Company business. However, the Company recognizes that the

above systems may be utilized for personal use. These systems are to be used

primarily for business use, but limited non-business use on personal time is

permitted, provided such use does not waste company resources or affect employee

productivity.

Any personal use of Company provided business computers, electronic mail or

Internet access must comply with all provisions of the Company’s Electronic Media

Policy.

The Company also recognizes that e-mail often substitutes for telephone communications

and can therefore elicit less formal communications than are typically found in paper

memoranda. Therefore, the Company encourages its users to write e-mails with no less

care, judgment and responsibility than they would use for letters or memoranda written

on Company letterhead.

An important difference between e-mail and paper memoranda is that it is much easier to

transmit e-mails. In fact, e-mails are often misdirected or forwarded and may be viewed

by many people other than the intended recipient. All e-mail messages are stored on a

central back-up system in the normal course of data management and may be recovered

at a later date. Because of the informal nature of e-mail, it is also easier for statements

made in e-mail to be misinterpreted or taken out of context. Users are expected to

demonstrate professionalism in the creation of all correspondence, either in written or

electronic form, and avoid making statements that would reflect unfavorably on the user

or the Company.

On occasion, a user may receive an inquiry from the press or other organization via e-

mail. Please do not respond. Instead, forward the message to either the Internal

Communications or Corporate Legal Department.

Information Technology (IT) E-Mail Requirements

As a maintenance measure, a limitation has been instituted restricting the number of

recipients that users of the e-mail system are able to address in a single message. The

restriction prohibits sending e-mail to greater than 30 recipients. Users of the e-mail

system are to follow the process detailed below if a valid business need exists for this

limitation to be exceeded.

Contact your business manager or department head (collectively referred to as “the

manager”) and detail the business need for exceeding the limitation, as well as the

intended scope/audience. The manager will approve or deny the request.

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If approved, the manager will contact the IT Help Desk and open a “Ticket” which

will immediately be marked “pending”. The Business Manager will then contact the

Human Resources Director of the requesting unit for final approval.

The HR Director will notify, via email, the requesting manager and the IT Help Desk

as to the approval/denial of the request (referencing the aforementioned Ticket #).

The Help Desk will assign the “approved” ticket to the Messaging Group, who in

return, will send out the message with the approved text and distribution list.

Information Technology (IT) is not responsible for acquiring approvals for broadcast

messages. IT’s responsibility is to facilitate its transmission only. This process must be

adhered to for the processing of any messages containing greater than 30 recipients.

General e-mail broadcasts not directly related to business, as determined by the business

manager, will not be processed by the IT department.

Scholastic’s Intranet

The Intranet is overseen primarily by Internal Communications and IT. Individual site

content within the Intranet will be designed and maintained at the Division level. All

sites must conform to overall corporate standards for content and design.

Employee use of the Intranet (accessible only to users connected to the Company’s

computer network), as with any other electronic resource provided by the Company, is

expected to comply with the provisions of this Policy. In regard to the Intranet

specifically, it will be a violation for any user to:

Access, or post material to, any area of the Intranet without proper authorization from

their Divisional contact or Internal Communications.

Create or post any material that is obscene, hateful, or derogatory, or that would

violate the Company’s equal employment opportunity or non-discrimination and anti-

harassment policies.

Publish or disseminate material found on the Intranet to any outside person or group

without proper authorization from Internal Communications.

All use of the Intranet is subject to the full compliance with the terms and conditions of

the Company’s Electronic Media Policy.

Use of Scholastic’s Electronic Media Systems By Third Parties

The Company’s business computers and/or electronic media systems (excluding the

Intranet) may be used by independent contractors, consultants, customers, and suppliers.

Third party employees are defined as any employees not paid compensation through the

Scholastic Inc. payroll system. These third parties will be granted such access only if they

agree, in writing, to abide by the terms and conditions of this Policy. The third parties

who desire such access must first receive authorization from business manager or

department head and the Information Technology Group.

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Security Precautions

Sensitive and/or confidential Scholastic documents should not be displayed on

terminals when anyone other than an authorized user is present.

The Company encourages users of its business computers and electronic media

systems to use password protection. Windows-based, timed Screen Savers with

Password protection are provided by the Windows Operating system. A maximum

of a fifteen-minute timer is highly recommended for screen savers with password

protection. “Power-On” Passwords that limit access to the Desktop computer upon

power-up are highly recommended for additional security. However, neither the use

of passwords nor other security measures in any way diminish the Company’s right

to access such computers or systems. Users are responsible for the security of all

passwords and identification codes issued to them. Passwords should be changed

periodically to prevent unauthorized access and should be unique to the individual

user.

Confidential and/or sensitive documents should not be stored in a database where

unauthorized persons can access them.

Users of business computers and electronic media systems should routinely delete

outdated or otherwise unnecessary e-mails and computer files. These deletions will

help keep the system running smoothly and effectively, as well as minimize

maintenance costs.

Access to Contents of Computer or Electronic Media Systems

All requests for Company access to the contents of a user’s computer files and/or

electronic media systems should be addressed to the Corporate Legal Department. All

such requests must be approved in advance. Any access undertaken without the required

approval is a violation of Company policy for which the user may be subject to

disciplinary action, up to and including termination.

Any questions regarding this Policy should be directed to Human Resources.

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Emergency Information

If there is an immediate condition (i.e., extreme weather, power failure) in an area where

Scholastic maintains a facility, employees can contact a toll-free telephone number that

will provide information regarding operations on that day. The goal of this emergency

hotline system is to keep employees well informed of information that may affect your

workday and time spent at Scholastic.

If such a case should arise, employees should call (800) 938-2317 (the back-up number is

(402) 220-0034). After the initial greeting, the appropriate location code number (see

below) followed by the „#” key should be entered. The location code numbers are also

programmed into the system menu.

Code Location or Zone

1 New York Corporate Headquarters

2 New Jersey (Secaucus and Lyndhurst)

3 Book Fairs - Lake Mary

4 Book Fairs - All offices in Western Zone

5 Book Fairs - All offices in Southern Zone

6 Book Fairs - All offices in Central Zone

7 Book Fairs - All offices in Eastern Zone

8 NSO - Jefferson City

9 NSO - Moberly

10 NSO - Neosho

11 NSO - Des Plaines

12 St. Charles

13 Danbury/Milford

14 QED - Denver

15 Weston Woods

16 School Sales - California

17 School Sales - Midwest & West Regions (Westmont, IL)

18 School Sales - Southeast & Southwest Regions (Irving, TX)

19 School Sales - Northeast Region (Secaucus, NJ)

20 Reading Counts - (Frankfort)

If an office is not listed above, contact the department manager.

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Employee Referral Bonus Program

Scholastic encourages employees to refer friends and acquaintances for open positions

and will pay a bonus to the employee if the applicant is hired for a regular full-time or

regular part-time position. Contract employees, consultants, interns and temporary

employees are ineligible referrals.

To be eligible to receive the bonus, the employee must present the candidate‟s resume to

the hiring HR manager and identify the candidate as his/her referral before the placement

is made. The employee who makes the referral must be actively at work at the time the

referral is made and at the time the bonus is paid. In addition, the referred employee

must have been actively at work for 90 days prior to the employee receiving the bonus.

If more than one employee refers a candidate, the bonus will be split proportionately.

Referral bonuses are as follows:

Technical positions* $2000 (gross)

Non-Technical positions $1000 (net)

Part-time positions $250 (net)

Employees that are not eligible for a referral bonus are Executives and above, hiring

managers that make a referral to their own department, contract employees, consultants,

interns and temporary employees.

Positions with approved requisitions, below the level of vice-president, are posted on the

Scholastic.com under “About Scholastic” or can be accessed from the “Company Info”

section of the Intranet. The positions on the internet and intranet are updated weekly.

*A technical position is one in which the job must be on software, Intranet, Internet or IT

projects and 80% of the responsibilities must be of technical nature; i.e., programming,

database testing and management (not content development).

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Equal Employment Opportunity/Affirmative Action Program Policy For 80 years Scholastic Corp. has been committed to equal opportunity in education. We

have designed educational materials to reach young people of all learning levels, social

and economic backgrounds, races, and religions. Today, more than ever, we are working

to achieve better opportunities in education for all children; our publications specifically

reflect that commitment. Scholastic can attribute its success to the fact that our

magazines, children‟s books, textbooks, videos, software, and other materials serve a

diverse population. Scholastic employees must reflect our philosophy of treating all

people equally, including the diverse population we serve, in the materials we create, in

the service we provide, in our personnel policies, and in our relations with one another. In

addition, to achieve our goal of attaining the best possible staff, it is imperative that we

actively seek out the best employees available; therefore, we need to look for people from

every part of society and not shut out talent and ability that is abundantly available in

people of all colors, ages, and cultures. Equal opportunity is a practice and belief both

ethically right for us as individuals and part of our business philosophy. Our Affirmative

Action Program outlines positive steps toward achieving a more diverse workforce.

Our policy is clear: there shall be no discrimination on the basis of race, religion,

color, sex, pregnancy, national origin, marital status, sexual orientation, age, non-

disqualifying physical or mental disability, or status as a disabled veteran or

Vietnam veteran. Those factors shall not influence the determination of

qualifications for a job or other opportunity within the company. Further, all

personnel actions (such as compensation, tuition aid, benefits, transfers, promotions,

dismissals, company-sponsored training, social and recreational programs) shall be

administered without discrimination.

As a Federal Contractor, Scholastic must maintain an up-to-date Affirmative Action

Program. As part of our Affirmative Action Program, we invite all employees and

applicants who are disabled veterans, Vietnam veterans, minorities, or females, or those

who have a disability, to self-identify yourselves to Deborah Fuller, Director of Human

Resources, and to discuss the Affirmative Action Plan and any training or other benefits

available to you under the plan.

Scholastic assures all employees and applicants that they will not be subjected to

coercion, intimidation, interference or discrimination for filing a complaint or assisting in

an investigation under Title VII of the Civil Rights Act of 1964, Section 503 of the

Rehabilitation Act of 1973, Section 402 of the Vietnam Era Veterans Readjustment Act

of 1974, or any other federal, state, or city legislation prohibiting discrimination on the

basis of race, sex, pregnancy, age, creed, color, religion, national origin, sexual

orientation, marital status, disability or veteran status.

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It is the obligation of every employee of Scholastic to adhere to this policy. Scholastic

Corp. has designated the Director of Human Resources to be responsible for the

maintenance of Company‟s Equal Employment Opportunity Programs.

Questions or suggestions about our policy should be directed to the Director of Human

Resources or the Senior Vice President of Corporate Human Resources & Employee

Services.

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Family & Medical Leave Act Policy The Family and Medical Leave Act (FMLA) of 1993 is a Federal law which requires

employers to provide up to 12 weeks (in a 12-month year period of employment) of

unpaid job-protected leave to "eligible" employees for certain family and medical

reasons. An employee is generally eligible for reinstatement in his/her former position or

equivalent position following the leave but only if the employee returns to work within

12 weeks. Any state or local law that provides greater family or medical leave will

supersede Federal law.

Eligible Employees Eligible employees are those who have completed at least one year of active service and

who have worked 1,250 or more hours over the previous 12 months.

Qualifying Events An eligible employee may request a leave under the following circumstances:

• To care for the employee's child after birth;

• The placement of a child with the employee for adoption or foster care;

• To care for the employee‟s spouse, child, or parent, who has a serious health

condition, which is defined as an illness, injury, impairment, or physical or mental

condition that involves inpatient care in a hospital, hospice, or residential medical

care facility, or continuing treatment by a health care provider; or,

• When a serious health condition makes the employee unable to perform the

functions of his or her position, when the health care provider finds that the

employee is unable to work at all or is unable to perform any of the essential

functions of the employee‟s position within the meaning of the ADA.

Requests for leave because of a serious health condition must be supported by a Medical

Certification Statement Form completed by the treating health care provider. The form

can be obtained in Human Resources.

Length of Absence Eligible employees are eligible to take up to 12-weeks of leave. The FMLA does not

require that a leave be taken on a continuous, full-time basis. Provided that certain

conditions are met, an employee may take FMLA leave on an intermittent or reduced-

leave (part-time) basis.

An intermittent leave is taken in separate blocks of time rather than in one continuous

period of time. A reduced leave schedule for a period of time reduces the employee‟s

number of hours per workweek or hours per workday.

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Medical Certification The employee will be required to provide medical certification to support a claim for a

leave of absence for the employee‟s own medical leave or for a leave to care for a

seriously ill spouse, child, or parent and an estimate of the expected duration of the leave.

For an intermittent leave, if the request is for the employee, the employee must provide a

listing of his or planned medical treatment dates. If the request is for the serious health

condition of the employee‟s eligible dependent, a statement attesting to the necessity of

leave for the employee to provide care or to assist in the person‟s recovery is needed.

Before returning from a leave for an employee‟s own medical condition, written

documentation must be provided indicating the employee has been fully released from

medical restrictions and is able to return to work.

An employer may also require the employee to have a second or third medical opinion at

the employer‟s expense.

Requests and Approvals

Reasonable prior notice of a leave is required (30 days of notice whenever possible) for

foreseeable events, such as an anticipated birth, adoption or foster care of a child, or a

medical treatment that is planned in advance. If 30 days notice is not possible, notice

should be given as soon as practicable. The employee must make a written request for

Family Leave submitted on the required form (available on the intranet or from Human

Resources) to his/her immediate supervisor. It must include the reason for the request as

well as the anticipated length of the leave. The employee‟s immediate supervisor and

Human Resources will review the request. A request will be approved based on eligibility

and qualifying event criteria.

Payment for Leave All FMLA approved leaves are without pay except as otherwise provided by benefits

made available through a company policy (i.e., emergency leave, salary continuation,

short term disability, child care and/or transition leave, secondary parent leave, workers‟

compensation, vacation, and personal days). Employees entitled to a paid leave under

another Scholastic policy must take any paid leave first. This paid time off will count

toward the maximum 12-week benefit.

Job Benefits and Protection Employees on FMLA may continue their active benefits by paying the required

contributions during their absence. Contact Human Resources for further details.

Upon return from FMLA leave, the employee will resume the position the employee held

immediately before the leave began or, at the option of the Company, be employed in an

equivalent position. An "equivalent position" is a position with the same compensation,

job content same or substantially similar to the original position, and the same benefits.

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The use of FMLA leave cannot result in the loss of any employment benefit that accrued

prior to the start of an employee‟s leave.

Salary increases, including merits, may not be processed for any employee while he/she

is on an FMLA leave. Upon return to active employment, the employee may be eligible

for a merit increase in accordance with annual guidelines.

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Fitness Center The Fitness Center is dedicated to promoting the health, fitness and well-being of

Scholastic employees. Certified fitness professionals are available to assist you in

achieving your fitness goals. The Fitness Center is open from 7:00 a.m.-8:00 p.m.,

Monday through Friday. Members must be finished exercising by 7:45 p.m. and finished

in the locker room by 8:00 p.m. You can get a schedule of exercise classes (e.g.,

aerobics) by either calling (212) 343-6124 or by visiting the Fitness Center in the

basement of 557 Broadway.

How To Join

The Scholastic Fitness Center is open to all Scholastic employees. The fee for using the

center is $175 per year and can be payroll deducted ($6.73 per paycheck) by completing a

payroll deduction authorization form. To become a member:

Step 1 Fill out a Health History Questionnaire (HHQ) and return it to the Human Resources

Department. Human Resources will forward your HHQ to the Health Center. The Health

Center will call you to schedule a fitness evaluation. In some cases, a Medical Clearance

Form will need to be competed by your personal physician before you can go on to the

next step.

Step 2 Undergo a personal fitness evaluation given by one of the Fitness Center Staff. This

evaluation is used to determine your current level of fitness and to further screen you for

any health risk factors so that a safe, relevant, and effective exercise program can be

developed for you. The results of the evaluation are also used to measure your progress

as your program progresses. The evaluation takes approximately 30 minutes and

includes: resting heart rate and blood pressure measurement, body circumference and

skin fold measurement (optional), strength and flexibility assessments including push up

and sit up tests, and the Y step test to measure your current level of cardiovascular

(aerobic) fitness.

Step 3 Orientation will be conducted at the end of each fitness test. An appointment with a

trainer may be scheduled to go over machines and/or get a workout program.

Lockers

Lockers are provided for daily use only while you work out. It is suggested that you

secure your belongings with a lock. Personal items may not be left overnight.

Amenities

Hand and bath towels, soap, shampoo, conditioner and other toiletries are provided.

Members must provide their own exercise wear.

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Facilities – 557, 568 & 524 Broadway

Coffee supplies/vending machines - Direct questions and requests to (212) 343-6191.

Computer Help Desk - If you have any questions or problems with your computer

hardware or software in New York, call the computer Help Desk at (212) 343-7585; in

New Jersey, call (201) 372-2442.

Copy Center - Located in the basement of 557 Broadway. For help with copier problems,

call (212) 343-6105.

Food service - Refer to the Conference Center Resource Guide for information on

services, or call (212) 343-4800.

Front Desk Reception – Call (212) 343-6730

General maintenance - Housekeeping, heating and air conditioning issues should be

called into the job ticket system at (212) 965-7415.

Greenhouse - The Greenhouse is located on the 11th floor of 557 Broadway. The terrace

is open from Spring through the Fall (weather permitting). Greenhouse hours are:

Breakfast 8a.m. - 11:15a.m.

Lunch 2p.m. - 3p.m.

Snacks 3p.m. - 4p.m.

Mail services - Direct questions and requests to (212) 343-6101 or (212) 343-6102. The

main mailroom is in the basement of 557 Broadway.

Office moves - Call (212) 965-7400.

Telephone - General information and requests should be directed to (212) 343-6716.

Telephone console - Call (212) 343-6100 or dial “0”

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General Information

Accounting Accounts Payable is located in Secaucus, NJ at (201) 633-2493. Accounts Receivable is

located in Jefferson City, MO at 1(800) 544-4088 for the Book Club and at 1(800) 225-

1761 for all others.

Birthday Breakfast

For New York employees, Birthday Breakfasts are held every other month. You will be

invited to attend a "Birthday Breakfast" hosted by either Dick Robinson or another

executive officer.

Employee Directory

A directory of Scholastic employees, divisions and products are accessible on

Scholastic‟s intranet Home Page under “Directory”.

Employee Photo ID/Access Cards

Photo ID/Access cards are taken at photo sessions scheduled every Wednesday at 557

Broadway in the 6th floor conference center from 12:00-1:00 p.m. If you lose your ID

card, please call (212) 343-6246 immediately.

Employee Product Discount

Most of Scholastic‟s products are available to employees at a 50% discount (catalogs

may be found in individual marketing departments). To order merchandise, complete an

order form and mail with a check to the National Service Operation, P.O. Box 1068,

Jefferson City, MO 65102. At the Scholastic Store, to receive the discount, a valid

Scholastic Employee I.D. card must be presented. Eligible dependants must present the

employee I.D. along with valid personal identification. Under no circumstances may

your employee I.D. be loaned to or used by anyone other than your authorized

dependants. Your discount is a privilege that must not be misused. Extending your

discount to a non-dependant is strictly prohibited. It is your responsibility to carefully

follow all discount procedures.

Internal Communications

Event calendars and flyers are posted in and near the elevators weekly and are available

on Scholastic‟s Intranet Home page. To post information, call (212) 343-6898.

Library Services

Located on the second floor of 557 Broadway, the Library is staffed from 9am to 7pm.

Library staff members can help with a variety of projects, including: assisting with

research and fact checking, locating book reviews and biographies, and putting together

bibliographies. The Library offers classes on the Internet, using electronic sources (such

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as books in print) and other resource tools. The Library Archive contains copies of all

Scholastic Publications. For more information, call the Library at (212) 343-6171.

Office Supplies

Office supplies must be ordered through Boise Cascade. Requisition forms are available

in the Mail Distribution Center at 557 Broadway (212) 343-6101 and are faxed directly to

Boise Cascade. Most orders are received the next day. Contact your Business Manager

for details.

Pantries

Most pantries contain a refrigerator, coffee maker, sink, microwave, vending machines

for soda and other goodies, garbage and recycling cans. Complimentary coffee and tea

are provided. Pantries are located on every floor in the N.Y. offices.

S.O.D.A. Scholastic‟s Online Digital Archive is a repository of images, text and production files.

Users may search and download files for use in authorized Scholastic projects. To learn

more, contact the S.O.D.A. team at (212) 343-7773 or e-mail at soda@scholastic.com.

Smoking Policy

Scholastic is committed to providing a smoke-free environment. Smoking is strictly

prohibited in all areas including restrooms, conference rooms, elevators, reception areas,

stairwells, and rooms containing photocopy equipment.

Training and Development

General business skills classes and computer classes are available to Scholastic

employees. Contact (212) 343-6910 for a current list of classes.

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Inside Information & Restrictions on Trading Stock Policy Maintaining the confidentiality of proprietary information about Scholastic and the

businesses and people with whom we work is fundamental to our operations. In addition,

with respect to certain types of confidential information, securities laws impose important

restrictions on trading on or tipping inside information about public companies in

connection with buying or selling the stock of such companies. Violation of these

restrictions can carry monetary as well as criminal penalties.

This memorandum sets forth Scholastic‟s policies regarding the use of inside information

and restrictions on trading stock. It applies to Scholastic‟s operations worldwide.

Persons covered by this policy statement include all Scholastic personnel, directors and

officers, consultants, independent contractors and agents, together with their immediate

family and other persons living with them.

This is an extremely important matter and you are urged to read the following with care.

Any questions concerning this policy statement should be directed to Scholastic‟s legal

department in New York City.

Restrictions on Trading on or Tipping Inside Information If you have access to inside information about Scholastic, you are prohibited from,

directly or indirectly, buying or selling Scholastic stock until that information has been

effectively disseminated to the general public or is no longer deemed material. If you

have access to inside information about a company doing business with Scholastic, the

same restrictions apply to trading in that company‟s stock. Persons with regular access to

inside information about Scholastic are subject to more stringent trading restrictions

discussed below.

You are also prohibited from tipping inside information about Scholastic or the

businesses or people doing business with Scholastic to family, friends and third parties.

In general, all such inside information learned during your tenure with Scholastic may not

be communicated to any other person (including relatives, friends or business associates),

except to the extent appropriate in performing work for Scholastic.

"Inside information" is non-public information about a company that a reasonable

investor would consider important in determining whether to buy, sell or hold that

company‟s stock. A determination as to whether information is "inside information"

depends on all related facts and circumstances. Information that you should consider

inside information includes, but is not limited to, earnings estimates, changes in

previously released earnings estimates, significant merger, acquisition or divestiture

proposals or agreements, major litigation, significant product news, extraordinary

management changes and dividend changes.

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Additional Restrictions for Persons with Regular Access to Inside Information

Persons with regular access to inside information about Scholastic ("designated insiders")

are subject to additional restrictions regarding their transactions in Scholastic stock.

Normally, designated insiders may buy or sell Scholastic stock only within four

"window" periods of time during the fiscal year. Each "window" begins with the third

business day after the day Scholastic makes public its press release of its quarterly or

annual earnings for the prior fiscal quarter or year. That same trading "window" closes

30 calendar days thereafter, and a designated insider may not resume trading until the

third business day following the next earnings announcement.

Furthermore, whenever a designated insider is in possession of inside information, he or

she may not buy or sell Scholastic stock, even if it is during a window period.

Finally, designated insiders should always pre-clear any trades in Scholastic stock with

the Legal Department in New York City.

Persons deemed designated insiders and therefore subject to this trading restriction

include: directors of Scholastic Corporation; executive officers and members of the

management executive committee of Scholastic Corporation and their direct reports; all

staff of the financial/accounting, legal and corporate communications departments in the

United States; all managing directors and chief financial/accounting officers of

Scholastic‟s international companies and any additional personnel named by any such

managing director; and immediate family members and other persons living with the

foregoing persons.

Guidelines for 401(k) Transactions (U.S. Employees only)

401(k) transactions in Scholastic stock (other than prospective changes in contribution

amounts) by persons other than designated insiders are subject to general insider trading

restrictions.

401(k) transactions in Scholastic stock (other than prospective changes in contribution

amounts) by designated insiders may be affected only during permitted window periods

and subject to general insider trading restrictions. Designated insiders who are also

subject to Section 16 of the Securities Exchange Act may be subject to additional trading

prohibitions and should consult with Scholastic‟s legal department in New York City

prior to entering into any transaction in Scholastic stock.

Restrictions on Short Sales and Certain Puts and Options

In addition to general restrictions on securities trading, as a matter of company policy,

employees may not engage in any short sales of Scholastic stock or in any sales of

uncovered call or put options or purchases of put options on Scholastic stock. Such

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transactions are bets against the company, which can negatively affect Scholastic‟s

reputation and the price of its stock.

A "short sale" is a contract for the sale of stock, which the seller does not own, made in

anticipation of a decrease in the stock price. A "put" is an option permitting its holder to

sell stock at a fixed price for a period of time, made in anticipation of a decrease in the

stock price, so that the seller can deliver the stock at a profit. The reverse transaction

gives its holder an option to buy stock at a fixed price for a period of time is a "call" and

is made in anticipation of an increase in the stock price.

Guidelines for Stock Option Exercises If you exercise a stock option by paying the exercise price in cash and do not

immediately sell the stock, you may exercise the stock option, without regard to the

restrictions set forth in this policy statement. The subsequent sale of such shares so

purchased would be subject to general insider trading restrictions or designated insider

restrictions, as applicable.

A "broker‟s cashless exercise" is considered a sale of stock. Accordingly, a "broker‟s

cashless exercise" by a designated insider may be made only during a specified window

period. A "broker‟s cashless exercise" by persons other than designated insiders would

be subject to general insider trading restrictions.

Communications with the Media and the Financial Community

The confidentiality of inside information must be strictly adhered to in responding to

inquiries about Scholastic made by the media, financial analysts or other members of the

financial community. It is important that responses to any such inquires be made on

behalf of Scholastic by duly designated persons. Accordingly, you should not respond to

such inquiries unless expressly authorized to do so.

Additional Responsibility of Scholastic Managers

Scholastic personnel are responsible for keeping staff and consultants and other persons

reporting to them apprised of this policy statement and their obligation to adhere to it.

Legal Penalties for Trading on Inside Information

Trading on inside information may result in severe penalties for you or for someone who

trades based on information tipped by you. Where inside information is learned during

the course of employment, penalties may, in some cases, also be imposed on the

employer and management if an illegal trade occurs. For example, in the United States,

violations of securities laws can result in a maximum jail term of 10 years, a maximum

criminal fine of $1,000,000 for an individual, and an SEC penalty of up to three times the

benefit received. In addition, persons who trade on inside information, or who tip such

information to others, can be sued for damages by others who are in the market at the

same time.

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Continuing Obligation

The general restrictions on trading on inside information set forth in this policy statement

continue to apply after you leave Scholastic.

Violation of Policy Statement

All Scholastic personnel, consultants and independent contractors worldwide are

expected to abide by the foregoing policies and procedures. Any violation may result in

serious legal difficulties and may also constitute grounds for disciplinary action,

including termination of employment.

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Military Leave Policy It is Scholastic‟s policy to grant military leaves of absence in accordance with the federal

Uniform Services Employment and Reemployment Rights Act (USERRA). USERRA

requires employers to provide leaves for employees to serve in the military and to

reemploy such employees upon their return. Below is a summary of the most important

provisions of the law. If you have additional questions, please contact your Human

Resources Manager.

Employer Obligation to Provide Leave Scholastic will provide leaves of absence to employees who leave civilian employment

for any period of time to serve in the uniformed services, which includes any branch of

the military, the reserves, the National Guard, the Coast Guard, the Public Health Service,

and any other category of individuals the President may designate in a time of war or

national emergency.

Employees Who Qualify for Leave USERRA applies to all full-time, part-time and seasonal employees who miss work as a

result of military service. The only employees excluded from the law are veterans who

prior to their military service, were employed in a temporary position, which is narrowly

defined to be a position that is for a brief, non-recurrent period and for which there is no

reasonable expectation that it will continue indefinitely or for a significant period.

Reasons for Taking Leaves

The performance of the following duties, either voluntarily or involuntarily, constitutes

"service in the uniformed services" under USERRA:

Active duty

Active duty for training

Initial active duty for training

Inactive duty training

Full-time National Guard duty, and

Absence from work for an examination to determine an individual's

fitness for any of the above types of duty

Funeral honors duty by National Guard or reserve members

Advance Notice and Verification Requirements Employees must provide advance written or verbal notice to their manager of their

military obligations, unless giving notice is impossible, unreasonable or precluded by

military necessity. Notice may also be given by an officer of the military branch in

which the employee will be serving. Scholastic may request copies of the employee's

military orders, notices, or induction information where the employee has been on leave

for more than 30 days. While employees are not required to submit documentation of

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their military service if such service was for less than 30 days, we can encourage

employees to provide such documentation, but cannot force them to do so.

Durations of Leave

The length of an employee‟s voluntary military leave of absence from Scholastic may not

exceed five (5) years. The 5-year limit does not include inactive duty training, annual

training, involuntary recall to active duty or involuntary retention on active duty or

voluntary or involuntary active duty in support of war, national emergency or certain

operational missions, such as the current mission and reservist call up.

Compensation During Leave* Generally, Scholastic will not pay employees for absences due to military service,

however, employees may elect to use their accrued vacation or personal days instead of

unpaid military leave, but this is not required. In cases of war, national emergency or

certain operational missions where reservists are called up, Scholastic will provide

differential pay for up to six (6) months to make up the difference between an employees

salary and their military pay. The Company may review and adjust this policy after the

six months time period has have elapsed depending on the circumstances at the time.

On a quarterly basis, employees should submit copies of their military pay stubs directly

to their Regional Human Resources Manager. The Regional HR Manager should review

the submitted information for completeness and submit the copies directly to the Payroll

Manager for any pay adjustment due to the employee in the prior quarter.

*Employees covered by the Guild agreement should refer to the agreement for their

military leave compensation policy.

Benefit Implications

Employees on military leave will receive the same benefits as employees on other types

of leaves of absence. Employees on leave shall remain on Company benefits at the

employee contribution group rate for the duration of their military service.

Employees returning from military leave will maintain their seniority and other rights and

benefits determined by seniority that they would have had if they had not gone on

military leave. A right or a benefit that is considered seniority-based would be one that

accrues with length of service.

Employees will receive pension plan protection, in that their military service time will be

considered service for both vesting and benefit accrual purposes, provided that the

employee is reemployed within the applicable time period.

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Time Limits for Reinstatement The time limits for employees returning to work after completion of their military service

depends on the length of time they were performing their military obligation. If an

employee's military service is less than thirty-one (31) days, or is for the purpose of

taking an examination to determine fitness for service, then the employee must report for

reemployment at the beginning of the first regularly scheduled work day that would fall

eight (8) hours after he or she returns home. If the period of service is thirty-one (31)

days to one hundred eighty (180) days, the employee must submit an application to the

Company no later than fourteen (14) days following the completion of their service. If

the period is greater than one hundred eighty (180) days, the employee must submit an

application to the Company no later than ninety (90) days following the completion of

their service.

USERRA provides for extensions of the above time limits for up to two (2) years if the

employee is hospitalized or convalescing from a service-connected illness or injury.

If an employee fails to reapply for employment or report to work according to the above

time limits, the employee may be treated as having abandoned his or her position.

Employee Reinstatement Obligations To be eligible for reemployment rights, an employee must have provided advance notice

of his or her military leave obligations where possible, must have served for a period not

exceeding five (5) years, and must have reapplied for employment within the appropriate

time frame. Employees must also have completed their military service under honorable

conditions in order to be eligible for reemployment.

Employer Reinstatement Obligations If an employee has met the requirements for reinstatement, Scholastic will reemploy that

employee. Employees are entitled to reinstatement to the position they would have held

or attained had they not gone on military leave.

Protection of Reinstated Employees from Discharge Employees reinstated after a military leave of one hundred and eighty-one (181) days or

more may not be terminated without cause for one (1) year after the date of

reemployment. Employees reinstated after a military leave of thirty (30) days but less

than one hundred and eighty (180) days may not be terminated without cause for a period

of six (6) months after their date of reemployment. Employees reinstated after a military

leave of less than thirty (30) days are not protected from termination without cause.

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Non-Discrimination and Anti-Harassment Policy Company Statement of Policy Scholastic is committed to maintaining a collegial work environment in which all

individuals are treated with respect and dignity. Each individual has the right to work in a

professional atmosphere that promotes equal employment opportunities and prohibits

discriminatory practices, including harassment. Therefore, the Company expects that all

relationships among persons in the office will be business-like and free of bias, prejudice

and harassment.

Definitions of Harassment/Discrimination a. Sexual Harassment constitutes sex discrimination and is illegal under federal,

state and local laws. For the purposes of this policy, sexual harassment is defined,

as in the Equal Employment Opportunity Commission Guidelines, as unwelcome

sexual advances, requests for sexual favors, and other verbal or physical conduct

of a sexual nature when, for example: (1) submission to such conduct is made

either explicitly or implicitly a term or condition of an individual‟s employment;

(2) submission to or rejection of such conduct by an individual is used as the basis

for employment decisions affecting such individual; or (3) such conduct has the

purpose or effect of unreasonably interfering with an individual‟s work

performance or creating an intimidating, hostile or offensive work environment.

Sexual harassment may include a range of subtle and not so subtle behaviors and

may involve individuals of the same or different gender. Depending on the

circumstances, these behaviors may include, but are not limited to: unwanted

sexual advances; subtle or overt pressure for sexual favors; sexual jokes,

innuendoes, advances or propositions; verbal abuse of a sexual nature; graphic

commentary about an individual‟s body, sexual prowess or sexual deficiencies;

leering, whistling, touching, pinching, assault, coerced sexual acts, or suggestive,

insulting or obscene comments or gestures; display or circulation in the workplace

of sexually suggestive objects or pictures (including through e-mail); and other

physical, verbal or visual conduct of a sexual nature.

It is essential to understand that consensual romantic and sexual relationships

between employees in supervisory positions and their direct reports or other

employees over which they have some supervisory authority, as well as between

co-workers, may lead to unforeseen complications. The respect and trust accorded

a more senior/supervisory person by a staff member, as well as the power held by

that person in evaluating or otherwise supervising the staff member could

diminish the extent to which the staff member feels free to end or change the

relationship. Therefore, each Scholastic employee should be aware of the possible

risks of even an apparently consensual sexual relationship. An employee who

enters into a sexual relationship with another employee, where there exists a

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difference in seniority or power between the individuals involved, should be

aware that if a complaint of sexual harassment is subsequently made, it could be

difficult to defend the charges on grounds of mutual consent. With this in mind,

Scholastic reserves the right to reassign or rearrange reporting relationships or

other roles of parties engaged in a consensual relationship to avoid potential

problems in this regard.

b. Harassment or discrimination on the basis of any other protected characteristic is

also illegal and strictly prohibited. Under this policy, harassment is verbal or

physical conduct that denigrates or shows hostility or aversion toward an

individual because of his/her race, color, religion, sex, national origin or ancestry,

age, disability, citizenship, sexual orientation, marital status or any other

characteristic protected by law, and that: (i) has the purpose or effect of creating

an intimidating, hostile or offensive work environment; (ii) has the purpose or

effect of unreasonably interfering with an individual‟s work performance; or (iii)

otherwise adversely affects an individual‟s employment opportunities.

Such conduct includes, but is not limited to: epithets, slurs or negative

stereotyping; threatening, intimidating or hostile acts; denigrating jokes and

display or circulation in the workplace of written or graphic material that

denigrates or shows hostility or aversion toward an individual or group (including

through e-mail).

Individuals and Conduct Covered Under the Policy This policy applies to all applicants and employees, and prohibits harassment,

discrimination and retaliation whether engaged in by fellow employees, supervisors,

managers or persons not directly connected to the Company (e.g., outside vendors,

consultants, clients or customers).

The kind of behavior described above is unacceptable in the workplace and in any work-

related setting outside the workplace, such as during business trips, business meetings,

court appearances and business-related social events.

Retaliation is Prohibited

The Company strictly prohibits retaliation against any individual who reports

discrimination or harassment or participates in an investigation of such reports.

Retaliation is a serious violation of this policy and, like harassment or discrimination

itself, persons engaging in such behavior will be subject to disciplinary action.

Reporting Harassment, Discrimination or Retaliation

The Company strongly encourages the reporting of all perceived incidents of harassment,

discrimination or retaliation, regardless of the offender‟s identity or position. Individuals

who believe they have experienced conduct that is contrary to Scholastic‟s policy or who

have concerns about such matters should either informally discuss their concerns or

formally file their complaint with either their supervisor, Jan Lorimer, Director of Human

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Resources, or their Human Resources Manager. Individuals should not feel obligated to

discuss their concerns or to file their complaint with their immediate supervisor before

bringing the matter to the attention of one of the other individuals identified above.

The Company encourages individuals who believe they are being harassed to advise the

offender that his/her behavior is unwelcome and request that it be discontinued. Often

this action alone will resolve the problem. The Company recognizes, however, that it is

not necessary for an individual to speak directly with an offender about his/her concerns

if that individual feels uncomfortable doing so. If for any reason an individual does not

wish to confront the offender directly, or if such a confrontation does not successfully

end the harassment, the individual should promptly notify one of the above contacts.

If you receive information regarding harassment, discrimination or retaliation in

your capacity as a supervisor or manager, you are obligated to report it

immediately.

Timeliness in reporting improper behavior

The Company encourages the prompt reporting of complaints or concerns so that rapid

and constructive action can be taken before relationships become irreparably strained.

While no fixed reporting period has been established, early reporting and intervention has

proven to be the most effective method of resolving actual or perceived incidents of

harassment, discrimination or retaliation.

Investigatory Process

Any reported allegations of harassment, discrimination or retaliation will be investigated

promptly. The investigation may include individual interviews with the parties involved

and, where necessary, with individuals who may have observed the alleged conduct or

may have other relevant knowledge.

Confidentiality

In light of the important privacy interests of all concerned, the complaint and

investigation will be handled with sensitivity, and confidentiality will be maintained

throughout the investigatory process to the extent practical and consistent with adequate

investigation and appropriate corrective action.

Responsive Action

Misconduct constituting harassment, discrimination or retaliation will be dealt with

appropriately. Responsive action may include training, referral to counseling, and/or

disciplinary action such as a warning, reprimand, withholding of a promotion or pay

increase, reassignment, temporary suspension without pay or termination, as the

Company believes appropriate under the circumstances. The reassignment of the

complainant will not be an acceptable corrective action unless the complainant requests

such a reassignment.

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Record of Complaint and Investigation

The Company will maintain a written record of each complaint and how it was

investigated and resolved. Written records will be maintained in confidence, to the extent

practical and appropriate. Written records will normally be maintained for at least the

same time period as other personnel records.

Appeals Process

If a party to a complaint does not agree with its resolution, that party may file comments

with Larry Holland, Senior Vice President, Corporate Human Resources & Employee

Services, who will make the final determination.

False and Malicious Accusations

False and malicious complaints of harassment, discrimination or retaliation, as opposed

to complaints, which, even if erroneous, are made in good faith, may be the subject of

appropriate disciplinary action.

Conclusion

We want all employees to know that they are not required to endure insulting, degrading

or exploitative treatment. The Company requires that each person exhibit in his or her

conduct and communications, sound judgment and respect for the feelings and

sensibilities of every other employee in the Company.

The Company has developed this policy to ensure that all of its employees and partners

can work in an environment free from harassment, discrimination and retaliation. The

Company will make every reasonable effort to ensure that its entire population is familiar

with this policy and is aware that any complaint received will be investigated and

resolved appropriately.

Finally, this policy should not, and may not be used as a basis for excluding or separating

individuals of any protected category from participating in business or work-related

social activities or discussions. In other words, no one should make the mistake of

engaging in exclusion in order to avoid allegations of harassment.

Any employee who has any questions or concerns about this policy should speak with

their HR Manager or the Director of Human Resources.

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Ordering Temporary Staff

Adecco Employment Services, the world‟s largest staffing service, is Scholastic‟s

national vendor for temporary staffing, including clerical, administrative, light industrial,

warehouse, accounting, finance, graphic design, desktop publishing and IT positions. To

place an order for temporary staff, complete the Temporary Staffing form available on

the intranet and follow the instructions, or call our National Account Manager at (212)

509-3300.

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Recycling Policy Separating waste will help the environment and ensure our compliance with any state

applicable laws. The following information is applicable to most locations. Contact the

Facilities Department with questions and comments (212-343-6721). A listing of what

should be placed in each receptacle is described below.

White Waste Paper

Place in blue recycling bins located at employee‟s desks or in large blue bins located near

photocopiers. Details of what can be recycled are marked on the container.

Mixed Paper

Place in regular black wastepaper basket at employee‟s desks. These are recycling bins

and are labeled with a "Mixed Paper" sticker.

All Other Garbage

Place in designated bins for "Garbage Only" located in the pantry or mail center on each

floor.

Corrugated Cardboard Boxes

Remove contents, flatten, and leave boxes by the freight elevator at the end of the day.

Do not use as waste receptacles and do not place inside wastebaskets. Call maintenance

(ext. 6755) if assistance is needed.

Redeemable Cans and Bottles

Bring empty soda cans and bottles (with a NY five cents deposit message) to the marked

bin in the pantry. Discard non-redeemables (such as Snapple bottles) with non-paper

garbage.

All receptacles must be used only for the correct waste materials.

White Office Paper (blue bin) Mixed Paper (black bin) White Bond Paper Colored Paper

Typing Paper Newspaper

Letterhead Magazines

Copier Paper Envelopes (any kind)

Adding Machine Tape Paper bags

White Bond Computer Paper Tissues, Paper Towels

Green-and-White Bar Empty Paper Cups

Multi-stripe Junk mail

All-white File Folders

White Legal Paper NCR Paper

White Index Cards Post-Its

Off-White Paper Anything made of paper!

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Garbage (central bins in pantries and mail centers) All Non-Paper Items

Food

Food Packaging

Plastic wrap

Plastic utensils

Packaging material

Paper clips, tape

Styrofoam cups and take-out containers

Glass

Metal

Wood

Plant clippings

Light bulbs

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Security Procedures (557, 524, 568 Broadway)

The following security measures are designed to provide the most secure and safe work

environment possible. Specific building information is detailed for 555 Broadway with

more general information for our offices located in multi-tenant buildings. For more

security details on any of these offices, please contact (212) 343-6246.

Personal Security Keep all personal belongings (including wallets and handbags) with you or in a locked

file cabinet or locker at all times. Please call (212) 343-6246 if you need a key. Keep

your office keys with you at all times. Do not leave keys in an unlocked desk drawer,

locker or anywhere on the premises.

Entering/Exiting Scholastic Offices Employees must swipe a Scholastic ID/Access card when entering/exiting 557

Broadway. If you are not carrying your ID card, you will be asked to show another form

of ID and to sign in. Please do not ask the security officers to make exceptions to this

policy. For those employees who need a Scholastic ID card, or to report a lost card

immediately, please call (212) 343-6246. All employees who receive an ID badge must

wear it on them at all times.

Employees entering 557 Broadway during hours when the Scholastic Receptionist is not

on duty (weekdays 7pm - 8am and on weekends) must present their Scholastic ID. To

enter 557 during non-business hours, all Scholastic employees must have submitted an

approved Request for Additional Access form available on Scholastic‟s Intranet Home

Page under “Forms”.

The 557 Broadway building doors are locked at 9 pm every weekday evening and 5pm

on Saturdays and Sundays. No one is permitted to enter Scholastic offices after these

hours unless they submitted an approved Request for additional Access form.

The Scholastic offices at 524 and 568 Broadway maintain an operating schedule identical

to 555/557 Broadway, and the security systems in place have been programmed

accordingly. The lobbies of both buildings have a security force present 24 hours a day,

7 days a week. Approval for additional access is identical to 555/557 Broadway.

Visitors

Reception desks are staffed Monday through Friday. Hours vary depending on your

building and individual business, so please learn your Receptionist‟s hours. At 557

Broadway, the Reception desk is staffed from 8:30am to 7pm.

If you have scheduled a meeting outside of regular business hours involving outside

guests, you need to be available when your guests arrive. The lobby officers at 557

Broadway have been instructed not to allow unescorted guests on the premises. If you are

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unavailable, your guest(s) will be asked to wait in the lobby. In other buildings, guests

may proceed to your floor, but will need to be met at the front door to enter.

If you are arranging a large meeting involving outside guests at the 557 Broadway

conference center, please provide the Facilities Department with a list of attendees so

they will be able to go directly to the 2nd floor. Otherwise, your guests will require a

visitor‟s pass and be asked to go through normal security procedures. Please do not give

the list directly to the security officers.

Packages and Deliveries

In order to remove equipment or packages from 557 Broadway, employees must obtain a

pass from the Facilities Department. Security officers will request a pass when leaving

the building.

For 557 Broadway, during weekends and after hours, the Lobby officer will sign for a

package only if you are on the premises and have notified him/her that you are expecting

a delivery and will be away from your desk. Be aware that the security service is not

responsible for any lost or misplaced packages. During normal business hours, all

delivery personnel are directed to the building‟s delivery entrance and foot messengers

should be instructed to make pick-ups or deliveries at 120 Mercer Street. Messenger

packages should never be left with the receptionist.

All other NY locations receive and dispatch messenger deliveries from their reception

areas. Freight elevator hours vary by building so it is advisable to learn the hours of

operation (call ext. 7400) and to schedule large deliveries between 9am and 5pm.

Lunch deliveries can be made to the 557 Broadway lobby. Employees who work at 557

Broadway should pick up all lunch deliveries in the lobby. All other locations may have

lunch delivered to their reception desks.

Please do not use any Scholastic location as the mailing address for personal gifts or mail

order purchases. Scholastic is not responsible for the loss of personal property. Your

cooperation in helping us to keep our offices safe is appreciated. Please call (212) 343-

6246 if you have any questions.

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Short-Term Sick Leave Policy Scholastic‟s Short-Term Sick Leave policy provides income protection to employees if

they are unable to work for more than 5 consecutive business days due to their own

illness, injury, or disability, including pregnancy. Coverage is effective on the first day

of active employment, however a claim form must be submitted and approved to receive

income benefits.

Eligibility Active, regular full-time employees and full-time seasonal employees are eligible for

Salary Continuation and/or Short-Term Disability benefits.

Active, regular part-time employees1 (working 20 or more hours per week) are only

eligible for Short-Term Disability benefits.

All other classes of employees such as: temporary, contract, interns and consultants

are not covered.

An employee must be absent from work for more than 5 consecutive business days.

An employee must be considered totally disabled from their current occupation in

order to qualify for benefits.

Short-Term Sick Leave benefits will not be paid for if the disability:

Starts while the employee is not working on a regularly scheduled basis due to, but

not limited to, a lay-off (including seasonal lay-off) or leave of absence;

Is due to an injury arising from any employment; or

Is due to an illness covered by Workers‟ Compensation.

Short-Term Sick Leave benefits will also be reduced by the following benefits, whether

or not they are applied for:

Under any loss of income benefit paid to the employee for the same period of

disability under the provisions of any “no fault” automobile insurance contract.

Under Workers‟ Compensation or similar law (including any related legal action or

settlement to replace lost wages), whether payable monthly or in a lump sum.

Under Social Security (i.e., disability or retirement).

Salary Continuation If eligibility requirements are met, the employee may be eligible for 100% of their

weekly base pay2 under Salary Continuation, for a specified period, based on their

eligible length of service with Scholastic. The maximum duration of Salary Continuation

an eligible employee can receive is 26 weeks per calendar year. Once salary continuation

1 Regular part-time employees working less than 20 hours per week may be eligible due to state

requirements. 2 Weekly base pay means the regular salary or wages an employee receives from Scholastic

before any deductions are made, excluding incentive or overtime pay, bonuses, special pay, or any other form of compensation.

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benefits are exhausted, no additional salary continuation benefits will be payable during

the remainder of that year. However, if an absence begins in one calendar year and

continues into the next calendar year, the salary continuation payments the employee is

entitled to receive in the year the absence started will apply for the duration of their

absence, including the new calendar year. After the employee has returned to work for at

least three months, the employee will then become eligible for salary continuation

benefits again.

Short-Term Disability Once salary continuation benefits have been exhausted, or the employee has an eligible

part-time status, the employee may be eligible for short-term disability benefits. Short-

term disability benefits are payable at a rate of 50%3 of the employee‟s base weekly

salary up to a maximum of $2,300 per week.

Short-Term Sick Leave – Maximum of Benefits The following chart shows the maximum salary continuation benefits and/or short-term

disability benefits an employee may receive. The employee‟s employment status and the

years of service the employee has on the day before their disability began determine the

maximum benefit level.

Employment with Scholastic

Salary Continuation

Weeks at Full Pay

Short Term Disability Weeks

at Partial Pay (50% of pay to

a maximum of $2,300 per

week)

Less than 1 year 0 26

At least 1 year but less than 3 years 4 22

At least 3 years but less than 5 years 8 18

At least 5 years but less than 7 years 12 14

At least 7 years but less than 9 years 16 10

At least 9 years but less than 11 years 20 6

At least 11 years but less than 13 years 24 2

13 years or more 26 0

How To Apply for Short-Term Sick Leave Benefits An employee must contact their manager and HR Manager to inform them of the leave.

The HR Manager will notify the Benefits Department. The Benefits Department will

forward a claim form to apply for Short-Term Disability benefits along with other

pertinent information. The employee must complete the claim form, provide medical

certification from their treating physician and return it to the Benefits Department. The

claim form will then be forwarded to CNA, Scholastic‟s disability vendor. CNA will

determine the duration of the disability based on the physician‟s information and national

disability duration guidelines.

3 This benefit may be subject to state requirements. In no event will an eligible employee receive

less than the state required benefit.

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Tuition Assistance Policy Scholastic‟s commitment to enhancing the educational experiences of the children we

serve also extends to our employees. The Company encourages the career development

of employees through the Tuition Assistance Program.

Eligibility

All active, regular full-time employees who have completed six months of continuous

service prior to the first date of a course, and who are active full-time employees at the

time a course is completed, are eligible for tuition reimbursement.

Guidelines

Undergraduate Degrees

Scholastic reimburses all matriculated undergraduate degree candidates for their eligible

courses. Reimbursement is 75% of tuition and registration fees up to a maximum of four

courses per academic year (September 1st - August 31st). Tuition assistance up to a

$5,250 limit per year, is non-taxable. Reimbursements over $5,250 per year are taxable.

Graduate Degrees

Employees interested in pursuing graduate degrees, which are directly related to their

current position, are eligible for tuition assistance. The program must be approved by the

employee‟s division head. Employees must be matriculated to be eligible for tuition

reimbursement.

Once a graduate degree has been approved, all courses required for the completion of the

degree will be eligible for reimbursement (regardless of their relevance to the employee‟s

current position). Graduate degree courses are subject to taxation and reimbursement

will be at 75% of tuition and registration fees up to a maximum of four courses per

academic year (September 1st - August 31st).

Continuing Education

All continuing education courses must be job-related and will be reimbursed at 75% of

tuition and registration fees with a maximum of $1,200 per academic year (September 1st

- August 31st). Reimbursement is non-taxable.

The only courses considered job related are those which maintain or improve skills

required for an employee‟s current position, or are required by Scholastic, or by law, as a

condition of employment. Examples of job related courses include:

Science courses for a science editor

Marketing classes for sales and marketing staff

Writing classes or workshops for editorial staff

Business writing classes for administrative assistants

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Accounting classes for administrative assistants in the accounting or fiscal

department who perform duties involving accounting and fiscal functions

Application Procedures

Undergraduate Degrees and Continuing Education Courses

Application forms are available on the Intranet or from the Human Resources

Department. Employees should complete an application and have their Manager,

Department Head, and Business Manager review and approve it. The completed

application, degree requirements, and a course description should be forwarded to Human

Resources. All signatures are required for the application to be considered complete.

The Human Resources Department will not process any application with missing

signatures.

Completed applications must be received by the Human Resources Department at least

ten (10) business days prior to the date the course is scheduled to begin. Human

Resources will notify the employee of the final approval of the course.

Graduate Degrees

The above procedure applies. In addition, the application requires the employee‟s

Division Head‟s signature prior to forwarding to Human Resources for final approval.

Reimbursement Procedures

At the conclusion of the course, send proof of satisfactory completion with passing grade

or its equivalent and proof of payment (a transcript or written statement from the school,

institution, or instructor) must be sent to the Human Resources Department. A check will

be sent directly to the employee usually within three weeks after receipt of completed

paperwork.

Reimbursement is limited to tuition and registration fees subject to the 75%

reimbursement cap. Cost for items such as textbooks, art supplies, laboratory materials

and traveling expenses are not eligible for reimbursement.

Reimbursement may be jeopardized if the above procedures are not followed. Even if the

institution you are attending allows you to defer payment of the bill, you will have to pay

at least 25% in order to be reimbursed and must still provide documentation of the bill at

the end of the course.

Conditions

1. Courses are eligible only if they are offered by an accredited educational

institution, by a professional group such as the School of Visual Arts, or by an

institution or group recognized for proficiency in its specialized field.

2. Courses offered by correspondence schools are not eligible for tuition aid.

3. Courses may not be taken during normal working hours nor shall the employee be

given time off with or without pay to attend such courses.

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4. Assistance is not available for courses that are paid in part or in full by

scholarships, special grants or under any selective or veteran‟s legislation.

5. Amounts payable are matters to be determined at the sole discretion of Scholastic

Inc.

6. Employee must obtain a grade average of “C” or above.

7. To receive reimbursement, the employee must be actively employed at the

conclusion of the course.

8. The provisions of these policies may be changed at the sole discretion of

Scholastic Inc.

Any questions regarding the following information should be directed to the Human

Resources Department at (212) 343-6912.

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Vacation & Personal Day Policy

Regular Full-Time Employees Scholastic employees earn and must take vacation on a calendar year basis. During your

first calendar year of employment, you will earn one day a month (to a maximum of 10

days), which may be taken any time after you have completed your first three months of

employment. This vacation must be scheduled with your manager‟s approval and taken

prior to December 31st or it will be forfeited. No vacation will be carried over for any

reason except for staff hired during September - December and who are unable to

schedule vacation time by the end of December. These days must be used by March 31st

of the following year.

Scholastic’s Vacation Entitlement

2nd year................................12 days

3rd through 6th year ....…..15 days

7th through 16th year ..........20 days

17th year and over................25 days

At termination, any vacation earned but not taken will be paid out; vacation taken but not

earned will be deducted from the employee‟s final paycheck. Vacation taken is shown on

each paycheck in hours.

Regular Part-Time Employees (working 20 or more hours per week)

Part-time employees earn and must take vacation on a calendar year basis. Vacation is

pro-rated based on the number of hours you are scheduled to work per week.

Vacation – Positions Covered by Guild Agreement

For employees whose positions are covered by an agreement with the Newspaper Guild,

vacation is earned on an anniversary, not calendar year. These days may be taken

anytime after you have completed the three-month probationary period. Vacation days

must be scheduled in advance with your Manager.

Vacation Entitlement

After 5 months..........5 days plus 1 day for each following month up to 10 days maximum

2nd year at anniversary date....................................................................................10 days

After 2 - 5 full years of continuos service as of anniversary date...........................15 days

After 6-15 full years of continuous service as of anniversary date.........................20 days

After 16 or more full years of continuous service of anniversary date...................25 days

If, by prior written agreement with your supervisor, you do not take all of your vacation

in any year by the anniversary date of your employment, you may carry over any unused

vacation time to the following anniversary year. However, all vacation time carried over

must be taken in that year or be forfeited.

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General Questions about the vacation policy should be discussed with the Human Resources

Department. Questions about personal vacation time available should be directed to your

HR Manager.

Personal Days

Refer to the Holiday Schedule for the number of personal days granted in a calendar year

and the number of days you may be eligible to receive.

Note: No personal days may be carried over to the next year for any reason. You will not

receive pay for any unused personal days.

Holidays

Scholastic recognizes 11 holidays per year. Please refer to the Holiday Schedule for a

listing of the current years‟ recognized holidays. Regular full time employees are paid

their regular pay for these holidays. Part-time and seasonal employees are granted

holiday pay if the holiday falls on a regular scheduled workday.

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Voice Mail Policy Voice Mail has become an increasingly powerful business tool. It is often one of the first

impressions a caller has of our company. With this high exposure, it becomes important

that it be used to its best advantage and positively reflect Scholastic Corp. This means:

• Recording appropriate and professional greetings

• Providing alternate contacts

• Returning your calls promptly

• Avoiding multiple transfers of calls and inconveniencing our customers and

friends of Scholastic

Listed below are some system feature guidelines to help you make the best use of Voice

Mail.

Greetings The system allows you to maintain a greeting for internal callers and external callers, plus

a third (alternate) greeting which can be used for times out of the office, such as

vacations. The following Greeting Guidelines should be adhered to:

1. Mention Scholastic and your department in your greeting for external callers.

2. Provide an alternate contact. The "Referral Extension" function can be

customized by you to provide your callers with an option to "0" out to an assistant

or co-worker in your department who can be of assistance to the caller.

3. Change your greetings regularly to let callers know when you are not in the

office. Let your callers know who can help them in the interim and/or the name

of the employee at your referral extension.

Passwords/Security

For security, never use your extension as a password. Accessing Phone Mail systems is

similar from one system to another, and without this safeguard, unauthorized individuals

could access your mailbox and get beyond your mailbox and into the Phone Mail System

network.

Delete Old Messages

Please delete old messages on a regular basis. Phone Mail is designed for short-term

message storage.

Privacy Policy

• The voicemail system is the property of the Company and is provided for the

purpose of conducting Company business.

• The Company, in its sole discretion, may monitor, access, retrieve, disclose,

and/or delete any material on its voicemail system.

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• Unauthorized access to or disclosure of the voicemail of one user by another user

is prohibited.

• The voicemail system may not be used in any way that would violate or otherwise

be inconsistent with the Company‟s equal employment opportunity policy or its

non-discrimination and anti-harassment policy.

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Work and Family Policy

Child Care Leave

Employees with one year of regular, full-time or full–time seasonal employment (which

must be reached before short-term sick leave or short-term disability leave begins) are

eligible for childcare and transition leave. The Primary Care Parent is entitled to 8 weeks

of fully paid child care leave to be taken immediately following the end of the maternity

disability period, or, in the case of adoption, immediately upon custody. The 8-week

childcare leave is in addition to any disability leave to which a birth mother may be

entitled. Employees must have completed a year of regular, full-time service prior to the

disability period or adoption to qualify for Child Care Leave.

A Secondary Care Parent is entitled to 2 weeks of fully paid leave to be taken

immediately following the birth or adoption of the child. Employees with one year of

regular, full-time employment are eligible for this leave.

Compassionate Leave

Regular and Seasonal full-time employees are eligible for up to five days leave with pay

in case of the death of a spouse/same sex domestic partner, parent, child, sibling,

roommate, and any legal dependent or close family member. Up to three days leave may

be granted in case of the death of other relatives. Additional time off may be granted in

either case for travel, religious observances, or special family arrangements. The amount

of time off will vary depending on the nearness of the relationship and the travel distance.

Emergency Leave

Regular and Seasonal full-time employees may receive up to five days (prorated for

regular part-time employees) of paid leave per calendar year in case of an emergency

family situation other than an employee‟s own illness or injury. Employees must notify

their manager who has discretion over this policy. If the Emergency leave is taken due to

the serious health condition of a spouse, dependent child or parent, and exceeds three (3)

days, the employee must notify their HR Manager as this leave may qualify for Family

Medical Leave (FMLA).

Family Medical Leave Act (FMLA)

Refer to the FMLA policy for details. Refer to page 11.

Jury Duty Employees are eligible to receive pay in lieu of Jury Duty. Employees must inform

managers when they are required to attend and to serve on Jury Duty. Employees must

submit verification of attendance to their manager in order to be paid.

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Sabbatical Leave Regular, full time employees with 15 years of service are eligible for Sabbatical Leave

for up to six (6) months. During this time, the employee may receive up to three (3)

months of pay. The employee‟s job will be held, unless the position is eliminated. The

employee must make their request and obtain approval from their manager. Short Term Sick Leave

Short-term sick leave covers extended absences from work due to a non-work related

accident, illness, or disability - including pregnancy. For more information, refer to the

Short Term Sick Leave Policy page __.

Transition Leave

Employees who are eligible for and have completed the childcare leave are eligible for

transition leave. Upon completion of a primary parent's 8 weeks of child care leave, the

employee will be fully paid for an additional 8 weeks if he/she returns to work at least 21

hours per week in the office.

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Workers’ Compensation Policy

Workers‟ Compensation laws are designed to provide a means of handling occupational

illnesses and injuries related to your employment. Scholastic pays the full cost of your

workers‟ compensation coverage.

If you are injured on the job, you should immediately report the injury or accident to your

supervisor and the Human Resources Department to coordinate care. If you incur a work-

related illness or injury while away from your regular work location, report to the nearest

hospital or doctor for treatment. Afterwards, you should contact your supervisor and the

Human Resources Department as soon as is reasonably possible to report the incident.

The Human Resources Department will send you the necessary form to complete. You

must return the form to HR so that the HR department can report your illness/injury to

Atlantic Mutual, Scholastic‟s Workers‟ Compensation vendor. You will receive a

statement in the mail indicating your claim number. This number will be used to identify

your incident and should be used when submitting medical claims to the Workers‟

Compensation carrier. Atlantic Mutual‟s toll-free phone number is 1-(800)-320-7259.