Paid Sick Leave Program Standard Plan Updated October

Paid Sick Leave Program: Standard Plan Updated October 2018 1

Overview – Paid Sick Leave (PSL) Program • Effective October 27, 2018 • Facilities in New Jersey will be transitioning to Walmart’s Standard Paid Time Off (PTO)/Paid Sick Leave (PSL) program for hourly, temporary and over the road drivers. This transition will help our facilities better manage mandatory protected time off allowed by New Jersey’s paid sick leave law that goes into effect on October 29, 2018. • Paid Sick Leave provides paid and job protected time away from work for reasons including, but not limited to: Associates own illness Injured or ill family members Reasons related to domestic violence Please see your location’s Protected PTO policy for a complete list of reasons No accountability or attendance occurrences for absence, tardiness, and/or early out if the associate elects to use their protected time. Refer to the WIRE for updated Paid Time Off (PTO) and Attendance and Punctuality policies Paid Sick Leave Program: Standard Plan Confidential and Proprietary 2

Paid Sick Leave (PSL) – How it is earned Beginning October 27, 2018 HOURLY OTR DRIVERS • PTO accrual is divided into two separate buckets and displays in the GTA Portal • PTO accrual will look the same as it does today – only one bucket of time Protected Note: Temporary associates will have only one bucket of time – Protected PTO • Protected PTO accrual begins upon hire • PTO accrual begins on the 90 th day of employment • All balances are available for use on 90 th day of employment • PTO accrual begins upon hire • Accrual maximums or caps will remain unchanged – based off tenure • PTO bucket pays out at termination with at least one year of service or according to locations specific laws • Total amount of PTO and Protected PTO accrued is still based off tenure • Both PTO and Protected PTO payout at termination with at least one year of service or according to your locations specific laws Paid Sick Leave Program: Standard Plan Confidential and Proprietary 3

Protected PTO Accrual example for hourly associates Jack is a 7 year associate who works 80 hours per pay period. He accrues 1 PTO hour for every 10 hours worked and earns 8 hours of PTO in a pay period Beginning on October 27, 2018, Jack’s earned PTO is split into two buckets of time – PTO and Protected PTO Before Oct. 27 8 Beginning Oct. 27 5. 3 2. 7 Protected • 5. 3 of the 8 earned hours goes into the PTO bucket • 2. 7 of the 8 earned hours goes into the Protected PTO bucket Total PTO: 5. 3 + 2. 7 = 8 hours How PTO accrues for Jack: Total PTO Protected PTO Accrual Rate 0. 100000 0. 066667 Paid Sick Leave Program: Standard Plan 0. 033333 ü Remember: Beginning on October 27, 2018 – You will accrue Protected PTO in addition to PTO on your eligible service hours ü Accrual of Protected PTO will be capped at 48 hours. ü PTO will be capped at your regular tenure band max minus 48 ü Accrual rates for PTO and Protected PTO for each tenure band can be found in the Paid Time Off – Hourly Associates policy on the WIRE Confidential and Proprietary 4

Using Protected PTO for Hourly Associates Protected PTO an be used for any reason - just like PTO! Last Friday of the pay period Paid Sick Leave Program: Standard Plan • If an associate requests time off for Sick or Family Care, the system deducts from the Protected PTO bucket first If there is not enough Protected PTO to cover the time off request, the system will deduct the remaining request from the PTO bucket and then from any available Personal Time • If an associate requests time off for Vacation, Personal or Holiday, the system deducts from the Regular PTO bucket first If there is not enough PTO to cover the time off request, the system will deduct the remaining request from the Protected PTO bucket and then from any available Personal Time Confidential and Proprietary 5

How does the end of the year cash out work with Protected PTO starting 2019? • Protected PTO is not eligible for cash out. The entire Protected PTO balance carries over to start the new plan year If the Protected PTO balance is greater than 80 hours for full-time or 48 hours for part-time, all of the available PTO bucket balance is cashed out If the Protected PTO balance is less than 80 hours for full-time or 48 hours for parttime, the available PTO balance up to the carryover limit of 80 or 48 hours carries over, and any excess PTO is cashed out Available Balance Protected 2018 PTO Plan Year Paid Sick Leave Program: Standard Plan Confidential and Proprietary 2019 PTO Plan Year 6

More Examples of Protected PTO Carryover and PTO Cash out starting 2019 Full Time Associate Examples (Total Carryover limit = 80) 2018 Balances 30 2019 Balances 90 Protected 90 30 Cash Out 50 40 0 30 Protected Paid Sick Leave Program: Standard Plan 90 Protected PTO is less than Carryover Limit When the Protected PTO balance is less than 80 hours, a portion of the PTO balance will carry over to bring the total carried over up to 80. The remainder will be cashed out Protected PTO is more than Carryover Limit When the Protected PTO balance is 80 hours or more, all of the PTO bucket will cash out Protected Confidential and Proprietary 7

Hourly Job Transfers from your Paid Sick Leave Location to Other Locations Example: New Jersey to Arkansas • Associates who transfer from a PSL location to a non-PSL location will have their available Protected PTO converted into PTO • The combined total amount of PTO and Protected PTO accrued year to date (YTD) will be reflected as PTO Accrued YTD • If you have not met your PTO Accrual max or cap, you will continue accruing PTO Example: California to New Jersey • Associates who transfer from a PSL location to another PSL location can accrue more Protected PTO up to the limit required by their new location • The total Protected PTO accrued YTD will reset to the available Protected PTO balance. The offset of Protected PTO accrual will be added to the PTO accrued YTD total If the PTO and/or Protected PTO Accrual max or cap is already met, PTO and/or Protected PTO stop accruing until the next Paid Sick Leave Program: Standard Plan • 70 40 110 Protected YTD Accrual = 100 YTD Accrual = 68 70 40 YTD Accrual = 168 70 Protected YTD Accrual = 100 YTD Accrual = 68 68 – 40 = 28 40 Protected YTD Accrual = 128 + 28 hours YTD Accrual = 40 - 28 hours This allows associates to continue to accrue Protected PTO as required by the Paid Sick Leave law of their new location Confidential and Proprietary 8

Protected Time in GTAP for Hourly Associates after October 27, 2018 • OTR Drivers will not see a change to their GTA Portal View Walton, Sam *Mockup Display – Actual Display may Vary Walton, Sam Paid Sick Leave Program: Standard Plan Confidential and Proprietary 9

Protected Time on the Paystub for Hourly Associates after October 27, 2018 • OTR Drivers and Salaried Associates will not see a change to their Paystub Paid Sick Leave Program: Standard Plan Confidential and Proprietary *Mockup Display – Actual Display may Vary 10

How does your PSL provide job protected time away from work? • Use of Protected PTO will result in an approved absence if an associate: 1. Submits a time off request for their missed shift or tardiness (late in/early out) 2. The time off reason for the absence is listed as PTO- Sick or PTO- Family Care 3. Uses enough Protected PTO to avoid an unauthorized absence under your segment’s attendance policy* • Time off Requests must be submitted within 14 days (7 days for logistics) of the absence and no documentation is required when Protected PTO is requested • No Call, No Show absences should still receive an occurrences for the no call, no show but they should not receive an occurrence for the absence • The absence approval reason code should be “Exception Covered by Time Off Policy” or “Manager Approved” Walmart • For a Full Occurrence: Enough Protected PTO to reduce the total missed time down to 120 minutes Logistics & Ecommerce • For an Absence or Tardy: Enough Protected PTO to reduce the total missed time down to 0 minutes • For an Half Occurrence : Enough Protected PTO to reduce the total missed time down to 9 minutes Paid Sick Leave Program: Standard Plan Confidential and Proprietary Sams • For a Full Absence: Enough Protected PTO to cover 50% or more of the missed shift. (If the PTO does not reduce the total missed time to 9 minutes, resulting in an incomplete shift, manual tracking of the incomplete shift will be required) • For an Incomplete Shift: Enough Protected PTO to reduce the total missed time down to 9 minutes 11

Examples of how does your PSL provide job protected time away from work? Walmart Stores Attendance Occurrence Missed Shift After Protected PTO Excuse or Unexcused? Full Occurrence 8 hours missed – 8 hours protected PTO = 0 hours missed Excuse Occurrence Full Occurrence 8 hours missed – 5 hours protected PTO = 3 hours missed Occurrence Not Excused Half Occurrence 30 minutes missed – 15 minutes Protected PTO = 15 minutes missed Occurrence Not Excused Missed Shift 8 Hours Protected PTO Used 8 Hours Missed Shift 8 Hours Protected PTO Used 5 Hours Missed Shift 30 Minutes Protected PTO Used 15 Minutes • Associates Use Protected PTO by Submitting a PTO Request for PTO – Sick or PTO – Family Care. The request must then be approved by management Paid Sick Leave Program: Standard Plan Confidential and Proprietary 12

Examples of how does your PSL provide job protected time away from work? Sams Club Attendance Occurrence Missed Shift After Protected PTO Excuse or Unexcused? Full Absence 8 hours missed – 8 hours protected PTO = 0 hours missed Excuse Full Absence Missed Shift 8 Hours Protected PTO Used 8 Hours Excuse Full Absence Missed Shift 8 Hours Protected PTO Used Full Absence 8 hours missed – 5 hours protected PTO = 3 hours missed Incomplete Shift 30 minutes missed – 15 minutes Protected PTO = 15 minutes missed 5 Hours Missed Shift 30 Minutes Protected PTO Used 15 Minutes • Do Not Excuse resulting Incomplete Shift Track incomplete shift manually Incomplete Shift Not Excused Associates Use Protected PTO by Submitting a PTO Request for PTO – Sick or PTO – Family Care. The request must then be approved by management Paid Sick Leave Program: Standard Plan Confidential and Proprietary 13

Examples of how does your PSL provide job protected time away from work? Logistics & e. Commerce Attendance Occurrence Missed Shift After Protected PTO Excuse or Unexcused? Absence 8 hours missed – 8 hours protected PTO = 0 hours missed Excuse Absence 8 hours missed – 5 hours protected PTO = 3 hours missed Absence Not Excused Tardy 30 minutes missed – 15 minutes Protected PTO = 15 minutes missed Tardy Not Excused Missed Shift 8 Hours Protected PTO Used 8 Hours Missed Shift 8 Hours Protected PTO Used 5 Hours Missed Shift 30 Minutes Protected PTO Used 15 Minutes • Associates Use Protected PTO by Submitting a PTO Request for PTO – Sick or PTO – Family Care. The request must then be approved by management Paid Sick Leave Program: Standard Plan Confidential and Proprietary 14

How to determine if an associate used enough Protected PTO • Example: Sam is a Walmart associate who received an occurrence for missing his 9 hour shift because he was sick. Sam submits a time off request for PTO – Sick in order to have his occurrence excused by protected PTO. • Following the steps below, Sam only has 5: 00 hours of Protected PTO to cover his absence. That is not enough to cover his 8 hour missed shift since 3 hours of his shift remains as absent. Sam would receive an attendance occurrence. 1. 2. 3. Find the associate in GTA Timesheet Look at day of absence where Protected PTO is being applied The PSL amount in the Time Code Summary details how much 2 available protected PTO was applied to the request Paid Sick Leave Program: Standard Plan 3 1 Confidential and Proprietary 15

Paid Sick Leave and FMLA Work Together! • Paid Sick Leave and FMLA (the federal and state family and medical leave laws) work together! • FMLA provides protection while on leave • Paid Sick leave and FMLA are independent laws and may overlap • Protected PTO will be deducted first when PTO is used for reasons listed under your locations Paid Sick Leave policy • Please ensure that your associates choose the appropriate reason code corresponding to their reason for being absent Paid Sick Leave Program: Standard Plan Confidential and Proprietary 16

Notification to All Associates Required Notification • All balance notifications can be found on an associate’s GTA portal • Associates can also view their balance information on their paystub • New Protected PTO policy will notify associates of the purposes under which they can use protected time and their protected PTO accrual rate Paid Sick Leave Program: Standard Plan Associate Notices • A notification poster may be required by your locations law • An individual notice may also be required to be provided to all current and new associates • Replacement PSL posters can be requested from Gov. Docs on the following WIRE page: Knowledge Center > People Support > HR Services > Employment Compliance > Standard > Employment Posters > State Required Employment Posters> [Your Location] • PSL notices for your location can be found and can be printed from the WIRE: Knowledge Center > People Support > HR Services > Employment Compliance > Standard > State Specific Employment Standards > [ Your Location] Paid Sick Leave Notice Confidential and Proprietary 17

Resources and Additional Information New Paid Time Off (PTO) and Protected PTO Policies • Knowledge Center > Policies/Policies by Category> Human Resources Policies > Paid Time Off (PTO) Policies Attendance and Punctuality Policy • Knowledge Center > Policies/Policies by Category> Human Resources Policies > Attendance and Punctuality Policy For additional information on protected sick leave for associates or to locate this training guide, please review the following documents on Walmartone. com Paid Sick Leave Associate Resource • Walmartone. com/leadershipguide > Training > Paid Sick Leave > PSL Associate Guide Paid Sick Leave Management Resource • Walmartone. com/leadershipguide > Training > Paid Sick Leave > [Your Location] Paid Sick Leave Program: Standard Plan Confidential and Proprietary 18

Contact Us! For additional questions please contact the People Services – PTO Team ptoadjst@wal-mart. com 800 -421 -1362 Paid Sick Leave Program: Standard Plan Confidential and Proprietary 19

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