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eCommerce Time Away from Work Associate Overview

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1 eCommerce Time Away from Work Associate Overview
October 2017 Hello. Welcome to our overview of the eCommerce Time Away from Work programs. Thanks for joining us today.

2 Today, we’re reviewing the new 2018 Time Away from Work programs for all our salary and hourly eCommerce associates.   This is a lot of information, and we know you’ll have questions about tracking time, and specific company policies and programs – those are details we won’t be covering today. But in the coming weeks, we’ll be sure to reconnect with more information and get you the answers to your questions. Today, we’re reviewing the new Time Away from Work programs for 2018. This is a lot of new information, and we know you’ll have questions about things like tracking time, specific company policies, and programs – those are details we won’t be covering today. But in the coming weeks, we’ll make sure to reconnect and get you the answers to your questions. Our goal today is to give you a high level overview of your 2018 Walmart time away from work programs.

3 Introduction to Time Away from Work programs
Time Away from Work programs for salaried and hourly associates: Paid Time Off (PTO) Salary FlexPTO (including metro professionals) Hourly PTO Holidays (hourly only) Disability Short-Term Disability Long-Term Disability Parental and Family Care Pay (Salary and metro professionals) Parental Pay (Hourly) There are four types of time away: Paid Time Off (PTO) Salaried and metro professional associates have a program called FlexPTO While Hourly PTO is an earned PTO program Holidays, which are covered through a separate pay program for our hourly associates. Because these holidays are covered, hourly associates won’t use PTO for Walmart observed holidays. Walmart’s disability coverage has both short- and long-term programs. Salaried and full-time hourly associates are eligible for both programs with short-term disability provided at no cost to associates. Salaried associates are also eligible for Parental and Family Care Pay, and hourly associates are eligible for Parental Pay We’ll cover each of these programs today. 2018 Time Off programs

4 Paid Time Off (PTO) and Plan year
PTO is designed to give you control over time off and flexibility in choosing how to use it. This time can be used for vacations, sick days, time with family, or almost any other personal need. PTO follows the company’s fiscal year cycle, beginning in February and ending the following January. Walmart recognizes your time off needs are unique, and we’ve designed a PTO program to give you control over time off and flexibility in choosing how to use it. PTO can be used for vacations, sick days, time with family, or almost any other personal need. PTO aligns with the company’s fiscal year cycle, which means it begins in February and ends the following January. 2018 Time Off programs

5 FlexPTO is available to:
Eligibility for PTO FlexPTO is available to: Salaried associates Metro professionals (paid hourly with salaried benefits) Hourly PTO is available to: Full-time hourly associates Part-time hourly associates Temporary associates in designated jurisdictions with Paid Sick Leave (PSL) laws The kind of PTO you receive depends on your associate status: FlexPTO is available to: Salaried associates Metro professionals Hourly PTO is available to: Full-time hourly associates; Part-time hourly associates; and Temporary associates in designated jurisdictions with Paid Sick Leave (PSL) laws 2018 Time Off programs

6 FlexPTO Program Let’s review the eCommerce FlexPTO program for salaried and metro professional associates.

7 How much FlexPTO can associates get?
SALARIED ASSOCIATES You have the flexibility to take as much time off as needed, as long as: It is approved by your manager It doesn’t affect your or your team’s performance Salaried and Metro Professional associates have the flexibility to take as much time off as needed with the FlexPTO program, as long as their time-off requests are approved by their manager and time away doesn’t affect their job performance. Remember, it’s always a good idea for you to give your manager as much advance notice as possible when requesting PTO. Here’s a little more about how FlexPTO works: There are no minimums, maximums, or set balance to use in a given Plan year. Instead, associates are encouraged to take a reasonable amount of time off to maintain work/life balance. FlexPTO is designed to cover incidental absences if you or a family member is sick FlexPTO coordinates with Leaves of Absence (LOA) with a set number of days for each leave event 2018 Time Off programs

8 When should FlexPTO be used?
SALARIED ASSOCIATES Vacation Holidays Personal time or unexpected personal emergency Incidental illness To cover the seven-calendar-day waiting period for short-term disability How it will work: No minimums, maximums, or set balance to use in a given PTO Plan Year Covers incidental absence for illness (for yourself or family members) Coordinates with Leave of Absence (LOA) with a set number of days for each leave event Let’s cover when you should – and shouldn’t – use FlexPTO. You can, and should, use FlexPTO for: Taking a vacation Celebrating a holiday our company doesn’t observe Needing some personal time or for an unexpected personal emergency Your own incidental illness To cover the seven-calendar-day waiting period for short-term disability There are a few situations when FlexPTO cannot be used. This is directly following when you have exhausted your disability pay or Parental & Family Leave pay and for an individual leave of absence not associated with a continuous leave of absence for greater than 12 weeks of cumulative intermittent absence When can’t FlexPTO be used? Directly after you have exhausted your disability pay or Parental & Family Leave pay. For an individual leave of absence not associated with a continuous leave of absence for greater than 12 weeks of cumulative intermittent absence. 2018 Time Off Programs

9 How will you transition to FlexPTO?
SALARIED ASSOCIATES All available legacy PTO which was accrued and unused, must be used before an you can use FlexPTO. IMPORTANT: Your legacy PTO must be tracked Any remaining unused legacy PTO will be paid out upon termination 2018 is a transition year, as associates move to Walmart’s Time Off programs. With that in mind, let’s touch on how salaried and metro professionals will transition to FlexPTO. If you have unused and accrued PTO from a previous time off policy, all of that time must be used before FlexPTO takes over. And if you have available PTO from a previous time off policy, that remaining time must be tracked, so we can document when their FlexPTO starts. There will be more details coming on how to track your PTO. Any remaining unused legacy paid time off will be paid out upon termination. 2018 Time Away From Work Programs

10 What happens when an associate leaves the company?
SALARIED ASSOCIATES FlexPTO is not earned or accrued No amount of FlexPTO is payable upon leaving the company Associates who leave Walmart will not be able to: Request additional PTO on their last paycheck Use FlexPTO after their resignation period or during their notice period, unless the absence is for a reason for which time off is required by law or company policy Since FlexPTO isn’t earned or accrued, salaried and metro professional associates who leave Walmart won’t be able to request additional PTO on their last paycheck or use FlexPTO after their resignation period or during their notice period, unless the absence is for a reason for which time off is required by law or company policy. No amount of FlexPTO is payable upon leaving the company. 2018 Time Off programs

11 Hourly PTO Program Next up is the eCommerce hourly PTO program.

12 How do hourly associates earn PTO?
PTO starts to accrue on the 90th day of employment Once accrued, PTO is available for immediate use Accrual is based on: Associate type: whether you’re full-time or part-time Tenure: Your PTO accrual rate is based on the year of service (from your most recent hire date) you’ll celebrate during the plan year Service hours: Actual hours worked including overtime Regular pay by way of other pay policies (e.g., holiday pay, parental leave pay, bereavement pay, jury duty pay) You even earn PTO while on PTO Disability pay is NOT included New hourly associates hired after Feb. 1, 2018 will start to earn PTO on their 90th day of employment. Once PTO is earned, an associate can use it right away. PTO is earned based on a few factors: Associate type: full-time or part-time (no minimum working-hour requirement) Tenure: years of service based on most recent hire date (time with Walmart-acquired company included) Service hours which are: Actual hours worked, including overtime; Regular pay by way of other pay policies (e.g., holiday pay, parental leave pay, bereavement pay, jury duty pay) Associates will even earn PTO while on PTO! Keep in mind that disability benefits don’t count towards service hours 2018 Time Off programs

13 How do hourly associates earn PTO?
Full-time hourly PTO schedule TENURE* RATE YOU EARN PTO MAX PTO HOURS/YEAR 0-1 17.3 hours = 1 PTO hour earned 120 2 15.3 hours = 1 PTO hour earned 136 3-5 11.8 hours = 1 PTO hour earned 176 6-9 10 hours = 1 PTO hour earned 208 10-14 9.3 hours = 1 PTO hour earned 224 15-19 7.9 hours = 1 PTO hour earned 264 20+ 6.8 hours = 1 PTO hour earned 304 Here’s the Walmart full-time hourly associate schedule for earning PTO. For example, if you have four years of service (based on their most recent hire date) earns 1 hour of PTO for every service hours up to an annual maximum of 176 PTO hours. There’s some variability to this schedule due to local laws. *Years of service based on your most recent hire date. Associates working in certain cities or states may earn PTO at different amounts or have different options for using time off due to local laws. 2018 Time Off programs

14 How do hourly associates earn PTO?
Part-time hourly PTO schedule TENURE* RATE YOU EARN PTO MAX PTO HOURS/YEAR 0-1 43.33 hours = 1 PTO hour earned 48 2 20 hours = 1 PTO hour earned 104 3-5 6-9 10-14 15-19 20+ 14.44 hours = 1 PTO hour earned 144 Similar to full-time, part-time associates earn PTO based on tenure and service hours up to an annual maximum. Here too, we have a few variations to this schedule due to local laws. *Years of service based on your most recent hire date. Associates working in certain cities or states may earn PTO at different amounts or have different options for using time off due to local laws. 2018 Time Off programs

15 When can PTO be used? For just about any reason, including:
HOURLY ASSOCIATES For just about any reason, including: Vacations Personal time Incidental sick days A holiday that’s not covered by the Holiday Pay Policy Absence for scheduled work days during the seven-day waiting period for a short-term disability claim Associates should request PTO in advance whenever possible PTO can be used for just about any reason, including: Taking vacations Personal time Incidental sick days A holiday not covered by the holiday pay policy, and Absence for scheduled work days during the seven-day waiting period for a short-term disability claim You should request PTO in advance whenever possible and managers will approve PTO requests based on business needs Please keep in mind attendance policies still apply to using PTO 2018 Time Off programs

16 What if you don’t use your PTO before Plan year-end?
HOURLY ASSOCIATES Full-time hourly associates can carry over up to 80 hours of unused PTO from year to year (part-time associates can carry over up to 48 hours). Rules in some states and cities may affect how much PTO can be carried over. Any unused PTO above the carryover maximum will be paid out automatically in your first paycheck each February. Hourly associates have a few options if they don’t use their PTO before the Plan year ends: You can carry over unused PTO at the end of the plan year. Full-time hourly associates can carry over up to 80 hours of unused PTO from year to year Part-time associates can carry over up to 48 hours Please note that rules in some states and cities may affect how much PTO you can carry over Any unused PTO above the carryover maximum will be paid out automatically in the hourly associate’s first paycheck each February 2018 Time Off programs

17 How will hourly existing plans transition to PTO?
HOURLY ASSOCIATES You’ll transition all earned PTO, vacation, and sick time into the new program as your starting PTO balance. Transitioned time doesn’t affect this first year’s PTO earning schedule. You can accrue the maximum for your tenure band the first year on the new Walmart PTO program. As with our salaried and metro professional associates, hourly associates will transition all accrued PTO, vacation, and sick time into the new program – this combined time becomes their starting PTO balance. Transitioned time doesn’t affect this first year’s PTO accrual. You can accrue the maximums for their tenure band the first year on the new program. 2018 Time Off programs

18 What happens when an associate leaves the company?
HOURLY ASSOCIATES Associates with one year of service, from original hire date, or longer will receive a payout of all unused and earned PTO when they leave. Unless required by state or local laws, associates with less than one year of service will not receive a PTO payout. Rules in some states and cities may affect how much PTO is paid out when associates leave If an hourly associate leaves the company with one year of service or longer tenure, you’ll receive a payout of all unused and accrued PTO when they leave. Unless required by state or local laws, associates with less than one year of service won’t receive a PTO payout. 2018 Time Off programs

19 What about company holidays?
HOURLY ASSOCIATES You’ll get seven paid holidays as a separate pay policy. PTO won’t need to be taken for these. Holiday pay is equal to eight hours at your regular hourly rate of pay. If you work on a holiday, you’ll receive holiday pay plus pay for the hours you actually worked. HOLIDAY PAY IS FOR: Presidents’ Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day New Year’s Day Hourly associates get seven paid holidays as a separate pay policy. There’s no need to take PTO for these. Holiday pay is equal to eight hours at an your regular hourly pay. If you work on a holiday, you’ll receive holiday pay and pay for the hours actually worked. Walmart’s holiday pay is for Presidents’ Day;; Memorial Day; Independence Day; Labor Day; Thanksgiving Day; Christmas Day and New Year’s Day. The first holiday under Walmart’s holiday pay policy in 2018 will be President’s Day. 2018 Time Off programs

20 Disability Overview Now that we’ve covered PTO, let’s review Walmart’s disability programs.

21 Pay while on Leave of Absence
SHORT-TERM DISABILITY Enhanced maternity provision PAID TIME OFF LONG-TERM DISABILITY First, we have short-term disability for full-time hourly, salaried, and metro professional associates, offered at no cost to you. Short-term disability covers any time an associate is away from work because of their own eligible injury or illness. Within the short-term disability program, You’re eligible for an enhanced maternity provision. Secondly, we have long-term disability available for you to purchase through our group plan. Long-term disability picks up after short-term disability has been used. In addition, salaried and metro professionals have access to Parental and Family Care Pay, and hourly associates are eligible for Parental Pay. PARENTAL AND FAMILY CARE PAY HOURLY PARENTAL PAY 2018 Time Off programs

22 Disability: salaried associates
Short-term Disability: (Company Paid) One week waiting period Six weeks at 100% paid Remaining 19 weeks paid at 75% ONE WEEK 6 WEEKS 19 WEEKS FlexPTO Short-term Disability 100% 75% 100% Long-term Disability: (Associate Paid) Picks up where short-term disability leaves off 50% and 60% plans offered during annual enrollment Let’s run through how short-term disability works for salaried associates: First, there’s a one week waiting period where FlexPTO can be used to get paid. Then, the next six weeks are paid at 100% with the remaining 19 weeks paid at 75%. Long-term disability picks up where short-term disability leaves off. Two long-term disability plans are available for you to purchase. Long-term disability pays you up to 50% of your monthly wages and the long-term disability enhanced plan pays up to 60%. Please note you must file a disability claim with Sedgwick, our leave administrator, in order to qualify for disability benefits. FILING FOR DISABILITY: Associates must file a disability claim with Sedgwick in order to qualify for disability benefits. 2018 Time Off programs

23 Disability: hourly associates
Short-term Disability: One week waiting period 50% of weekly wages up to $200 per week (no cost to the associate) 60% of weekly wages with no weekly maximum (premiums paid by associate and must be elected during annual enrollment) Not available in CA, HI, RI, and NJ NY Basic Plan not available; NY Enhanced Plan maximums of $6,000 26-week maximum Long-term Disability: Associate paid 50% and 60% plans offered (must be elected during annual enrollment) 50% SHORT-TERM DISABILITY : UP TO $200 PER WEEK Up to 50% of average weekly wage, up to $200 per week, at no cost to associates! OR SHORT-TERM DISABILITY ENHANCED: NO WEEKLY MAXIMUM 60% Up to 60% of average weekly wage, with no weekly maximum. The short- and long-term disability benefits for full-time hourly associates is similar to salaried and metro professionals. The hourly short-term disability benefit isn’t available in California, Hawaii, Rhode Island, and New Jersey, as those states have their own statutory disability plans. New York has state-based disability variations, too. Walmart’s hourly associate short-term disability plan covers up to 50% of the your average weekly wage to a $200 weekly maximum. You have the option of buying additional short-term disability benefits to compliment the Company-paid benefits—you can enroll in the short-term disability enhanced plan to have the weekly maximum waived and get up to 60% of your average weekly wage. 2018 Time Off programs

24 Disability: How it works: hourly associates
FIRST DAY SEVEN CALENDAR DAYS UP TO 26 WEEKS of eligible medical condition depending on length of medical condition SHORT-TERM DISABILITY WAITING PERIOD YOU MAY USE PTO AFTER 26 WEEKS associate may be eligible for long-term disability, if enrolled 50% / 60% UP TO $200 PER WEEK NO WEEKLY MAXIMUM Here is an illustration of how disability works for full-time hourly eCommerce associates. Keep in mind, the only way to access short-term disability benefits is by filing a claim with Sedgwick. FILING FOR DISABILITY: Associates must file a disability claim with Sedgwick in order to qualify for disability benefits 2018 Time Off programs

25 Maternity, Parental and Family Care
We’ve covered PTO and disability so far. Let’s move on to maternity and parental and family care programs.

26 Maternity Leave: salaried associates
I’m having a baby! 22 WEEKS TOTAL DAY 1 WAITING PERIOD FlexPTO NINE WEEKS Short-term disability TWELVE WEEKS Let’s go over how maternity leave works for salaried associates. First, there’s the standard seven-day waiting period for short-term disability to kick in. FlexPTO can be used to get paid during this time. Then, once short-term is exhausted, salaried associates have a 12 week period available for continued paid time away through the Parental and Family Care Pay policy for a total of 22 weeks paid time away for maternity leave. DISABILITY LEAVE OF ABSENCE PARENTAL AND FAMILY CARE PAY and LEAVE OF ABSENCE 2018 Time Off programs

27 Maternity Leave: hourly associates
I’m having a baby! 12 WEEKS TOTAL DAY 1 WAITING PERIOD May use PTO during waiting period NINE WEEKS Short-term disability TWO WEEKS Maternity leave works similarly for full-time hourly associates. The difference is the availability of a two week paid leave period, following short-term disability being exhausted, for a total of 12 weeks of paid time away for maternity leave. DISABILITY LEAVE OF ABSENCE PARENTAL CARE PAY and LEAVE OF ABSENCE 2018 Time Off programs

28 Parental and family care leave
PAY WHILE ON LEAVE OF ABSENCE LEAVE TYPE SALARIED HOURLY Parental leave taken within 12 months of birth, adoption or foster care event Care for an immediate family member Maternity provision within short-term disability Up to 12 weeks paid at 100 percent per rolling 12-month period Must be used continuously (cannot be used intermittently) Parental leave pay begins after short-term disability for birth moms for a total of 22 weeks paid leave benefit Up to 2 weeks of the maximum 12 week benefit of per rolling 12 months is available to care for an immediate family member Ten-week maternity benefit paid at 100 percent as part of short-term disability Up to 2 weeks of pay at 100 percent per rolling 12-month period Employed 12 months or more = Total gross pay ÷ prior 52 weeks Employed less than 12 months = Total gross pay ÷ number of weeks worked Must be used continuously (cannot be used intermittently) Parental leave pay begins after short- term disability for birth moms for a total of 12 weeks paid leave benefit Not eligible for the family care paid leave, but may use available PTO for income replacement while on an approved unpaid leave of absence Let’s look at parental leave. Walmart’s parental leave can be taken within 12 months of birth, adoption, or foster care events. Salaried associates are eligible for up to 12 weeks paid at 100% per rolling 12-month period. These benefits have to be used continuously (not intermittently) Parental leave pay starts after short-term disability ends for birth moms, for a total of 22 weeks paid leave benefit Full-time hourly associates have a slightly different program: You’ll get up to 2 weeks of pay at 100% per rolling 12-month period If you’re employed 12 months or more, they’ll receive their total gross pay divided by the prior 52 weeks If you’re employed less than 12 months, they’ll receive their total gross pay divided by their number of weeks worked These benefits also have to be used continuously, not intermittently For mothers who give birth, parental leave pay starts after the 10-week short-term disability period has ended, for a total of 12 weeks paid leave benefit If you’re taking leave to care for an immediate family member, salaried associates will get up to 2 weeks of the maximum 12 week benefit per rolling 12 months period Hourly associates aren’t eligible for family care paid leave. However, you can use available PTO for income replacement while on an approved unpaid leave of absence. Both salaried and full-time hourly associates are eligible for a ten-week maternity benefit paid at 100% as part of short-term disability 2018 Time Off programs

29 Key dates of eCommerce Disability Plan transition
Jan. 1, 2018 – new Walmart disability and leave programs begin Leaves and disability beginning before Jan. 1, 2018, will be covered under old programs Leaves and disability beginning after Jan. 1, 2018, will be covered by Walmart’s programs Sedgwick is the leave administrator for all leaves beginning Jan. 1, 2018 Here are the key dates of the eCommerce disability transition. Jan. 1, 2018 – new Walmart disability and leave programs begin Leaves and disability beginning before Jan. 1, 2018, will be covered under old programs Leaves and disability beginning after Jan. 1, 2018, will be covered by Walmart’s programs Sedgwick is the leave administrator for all leaves beginning Jan. 1, 2018, or after Leave and disability requests must be requested through Sedgwick Note: Leave and disability requests must be requested through Sedgwick 2018 Time Off programs

30 Thank You! “We’re all working together; that’s the secret.” SAM WALTON
And that’s it! Thank you. We understand you may have questions and want more details. We will be following up soon with more information.


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