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eCommerce Time Away from Work Overview

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

2 Today, we are sharing the current overview of what the new Time Away from Work programs will be for all our salary and hourly eCommerce associates in   This is a lot of new information, and we know you’ll have questions about transitions, tracking, specific company policies and program details – details that we will not be covering today. In the coming weeks, we will reconnect with more information and have answers to your questions. Today, we are sharing the current overview of what the new Time Away from Work programs will be for all of our salary and hourly eCommerce associates in   This is a lot of new information, and we know you’ll have questions about transitions, tracking, specific company policies and program details – details that we will not be covering today. In the coming weeks, we will reconnect with more information and have answers to your questions.

3 Introduction to Time Away from Work
Time Away from Work programs for salaried and hourly associates: Paid Time Off (PTO) Salaried FlexPTO Hourly PTO Holidays (Hourly Only) Disability Short-Term Disability Long-Term Disability Parental and Family Care Pay (Salaried) Parental Pay (Hourly) Walmart’s Time Away from Work programs for salaried and hourly associates are comprised of four types of time away: Paid Time Off (PTO) Salaried and metro professional associates have a program called FlexPTO While Hourly PTO is a PTO accrual 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 a short-term and long-term programs. Salaried and full-time hourly associates are eligible for both programs with short-term disability at no cost to associates. Our salaried associates are eligible for the Parental and Family Care Pay, and hourly associates are eligible for Parental Pay We will cover each of these programs today. 2018 Time Off programs

4 Paid Time Off (PTO) program and Plan year
PTO is designed to give 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 that everyone’s time off needs are different, and has designed a Paid Time Off program that is designed to give associate’s 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, beginning in February and ending 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 (associates who are paid hourly with salaried benefits) 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 Associates have the flexibility to take as much time off as needed, as long as: It is approved by their manager It doesn’t impact performance (i.e., continue to have satisfactory work 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 impact getting their job done. Remember, it’s always a good idea for associates to give their leader as much advanced 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 a well balanced work-life. FlexPTO is designed to covers incidental absence for illness for yourself or family members 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 (self or family member) Coordinates with Leave of Absence (LOA) with a set number of days for each leave event When can’t FlexPTO be used? Directly following when an associate has exhausted their disability pay or Parental & Family Leave Pay. For an ‘add-on’ leave of absence that takes an associate past twelve continuous weeks of leave – for example, an associate can’t go directly from a ten week medical leave of absence to an additional 4 week personal leave of absence. Let’s cover when you should – and shouldn’t – use FlexPTO. Use FlexPTO for: Taking a vacation Celebrating a holiday our company doesn’t observe Needing some personal time or for an unexpected personal emergency Associate’s own incidental illness To cover the seven-calendar-day waiting period for short-term disability The one time FlexPTO can’t be used : to cover additional time away directly following an absence where the associate already used up their disability pay or Parental & Family Leave Pay. 2018 Time Off Programs

9 How will associates transition to FlexPTO?
SALARIED ASSOCIATES All available accrued and unused legacy PTO must be used before an associate can use FlexPTO. IMPORTANT: Associates’ 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 an associate has unused and accrued time paid time off from a previous time off policy, all of that time must be used before FlexPTO takes over. And if the associate had available paid time off from a previous time off policy, that remaining time must be tracked, so we can document when their FlexPTO starts. Any remaining unused legacy paid time off will be paid out upon termination. 2018 Time Off 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 is not earned or accrued, associates who leave Walmart will not 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 begins to accrue on the 90th day of employment Once accrued, PTO is available for immediate use Accrual is based upon: Associate type: full-time or part-time (no minimum working-hour requirement) Tenure: Your PTO accrual rate is based on the year of service (from your most recent hire date) you will 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) Associates will even earn PTO while on PTO Disability pay is NOT included New hourly associates hired after Feb. 1, 2018 will begin 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 do not 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 is the Walmart full-time hourly associate schedule for earning PTO. For example, an associate with 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 is 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 associates, 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 is 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 Managers will approve PTO requests based on business needs Keep in mind that attendance policies still apply 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 Associates 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 associates don’t use their 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 an associate can carry 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: Hourly associates 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 an associate 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 Associates will transition all accrued PTO, vacation and sick time into the new program as their starting PTO balance. Transitioned time does not affect this first year’s PTO accrual. Associates can accrue the maximums for their tenure band the first year on the new 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 does not affect this first year’s PTO accrual. Associates 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 or longer will receive a payout of all unused and accrued PTO when they leave the company. 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, associates with one year of service or longer will 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 will not receive a PTO payout. 2018 Time Off programs

19 What about company holidays?
HOURLY ASSOCIATES Associates will receive seven paid holidays as a separate pay policy. PTO will not need to be taken for these. Holiday pay is equal to eight hours at associate’s regular hourly rate of pay. If an associate works on a holiday, they will receive holiday pay and pay for the hours actually worked. HOLIDAY PAY IS FOR: Presidents’ Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day New Year’s Day Hourly associates will receive seven paid holidays as a separate pay policy. PTO will not need to be taken for these. Holiday pay is equal to eight hours at associate’s regular hourly rate of pay. If an associate works on a holiday, they will 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. 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 them. 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, associates are eligible for an enhanced maternity provision. Secondly, FlexPTO can be used during LOA for the 7 calendar day waiting period, on an unpaid LOA that does not qualify for STD, and for hourly as much PTO as they have when any benefit exhausts. We also have long-term disability available for associates 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 percent paid Remaining 19 weeks paid at 75 percent 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 Let’s run through how short-term disability works for salaried associates: First, there is a one week waiting period for which FlexPTO may be used to get paid. Then, the next six weeks are paid at 100 percent with the remaining 19 weeks paid at 75 percent. Long-term disability picks up where short-term disability leaves off. Two long-term disability plans are available for associates to purchase. Long-term disability pays associates up to 50 percent of their monthly wages and the long-term disability enhanced plan pays up to 60 percent. Please note that associates 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 percent of weekly wages up to $200 per week (no cost to the associate) 60 percent of weekly wages with no weekly maximum (premiums paid by associate) 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 percent and 60 percent plans offered 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. Full-time hourly associates have similar short-term and long-term disability benefits to salaried and metro professionals. The hourly short-term disability benefit it is not 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 short-term disability plan covers up to 50 percent of the associate’s average weekly wage to a $200 weekly maximum. Associates have the option of purchasing additional short-term disability benefits to compliment the Company paid benefits - they can enroll in the short-term disability enhanced plan to have the weekly maximum waived and receive up to 60 percent of their 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 ASSOCIATE 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 work for full-time hourly eCommerce associates. Keep in mind, they only way to access short-term disability benefits is for the associate to file 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 is the standard 7-day elimination (waiting) period for short-term disability to kick in. FlexPTO can be used to get paid for 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 too. The difference is the availability of a two week paid leave 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 Pay while on a parental or family care leave
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 Pay Policy, but may use available PTO for income replacement while on an approved unpaid leave of absence Let’s start with parental leave. Walmart’s parental leave can be taken within 12 months of a birth, adoption or foster care events. Salaried associates are eligible for up to 12 weeks paid at 100 percent per rolling 12-month period. These benefit 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 Full-time hourly associates have a slightly different programs. Full-time hourly associates receive up to 2 weeks of pay at 100 percent per rolling 12-month period If they are employed 12 months or more, then they will receive their total gross pay divided by prior 52 weeks If they are employed less than 12 months, they will receive their total gross pay divided by their number of weeks worked Must be used continuously (cannot be used intermittently) For mothers who give birth, parental leave pay begins after the 10-week short-term disability has ended, for a total of 12 weeks paid leave benefit For a leave to care for an immediate family member, salaried associates will receive up to 2 weeks of the maximum 12 week benefit of per rolling 12 months is available under this program. Hourly associates are not eligible for family care paid leave. However, they may 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 percent 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 Leave and disability requests must be requested through Sedgwick Note: Leave and disability requests must be requested through Sedgwick 2018 Time Off programs

30 What’s Next We understand you’ll have a lot of questions on the specifics of our time away from work programs and want to set you up for success with our associates.

31 As we get closer to roll-out…
Keep HR leaders updated Outline PTO transition details Provide copies of final policies Provide PTO, disability and leave information Review the programs with associates and support them in the field with quick reference docs Provide process and systems training As we get closer to rolling out these programs for the eCommerce team, here is what you can expect: We will keep HR leaders in the loop on resources, tools, and policy updates You can expect an outline of PTO transition details once all details have been finalized Copies of the final approved policies will be provided to you We will provide PTO, disability and leave information in a online, centralized location We will be reviewing the programs with associates and support them in the field with quick reference docs Process and systems education sessions will be provided 2018 Time Off programs

32 Thank You! “We’re all working together; that’s the secret.” SAM WALTON
We appreciate the work you do to support our associates in this transition to Walmart’s total rewards programs. Feel free to us your questions.


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