ShortTerm Disability and Leave of Absence Process 1

Short-Term Disability and Leave of Absence Process 1

Table of contents Salaried Associate STD and Parental and Family Care Pay Hourly Associate STD and Parental and Family Care Pay 3 Salaried and Hourly Associate LTD 10 Leave of Absence Process Associate’s Role Sedgwick’s Role People Partner Team’s Role 12 Return-to-Work Process 30 Tools and Resources 32 2 Short-Term Disability and Leave of Absence Process 7

Salaried Associate Short-Term Disability and Parental and Family Care Pay 3

How the salaried short-term disability plan works EXAMPLE FOR SALARIED ASSOCIATES An associate uses Flex. PTO for seven calendar day waiting period to cover 100 percent of their income. Flex. PTO begins on Feb. 1, 2018. They then receive 100 percent of their weekly salary for the next six weeks through shortterm disability. Associates then receive 75 percent of their salary for up to an additional 19 weeks through short-term disability. This means they are covered for up to a total of 25 weeks. Please note: Sedgwick, Walmart’s short-term disability administrator, will pay the first 20 days of disability while waiting to make a determination on the claim. When an associate contacts Sedgwick to make an STD claim, a request for leave of absence will also be filed. 4 Short-Term Disability and Leave of Absence Process

Short-term disability and workers’ compensation coordination SALARIED ASSOCIATES The goal of coordinating disability and workers’ comp is to ensure salaried associates don’t receive less compensation if they are injured at work, than they would if they were hurt at home. • Salaried associates qualifying for worker’s comp will receive 100 percent of their wages for the first seven weeks, with no waiting period. • From week eight through week 26, short-term disability makes up the difference between the state workers' comp payment and 75 percent of the associate's wages. – If workers’ comp is not yet approved, the STD top-off amount will be based on the anticipated state benefit. – If the workers’ comp benefit is more than 75 percent, an STD benefit will not be paid. – Premiums to continue benefits coverage will be deducted automatically from any STD payments. If the associate is not receiving STD, the associate must pay their premiums directly. 5 Short-Term Disability and Leave of Absence Process

Parental and Family Care Pay Policy SALARIED ASSOCIATES What this policy does: • Provides pay for 12 weeks per rolling 12 -month period for parental pay, of which two of those weeks can be used for family care pay. – Family care pay: to care for a seriously ill immediate family member, meaning a parent, child or spouse/partner – Parental pay: for the birth, adoption or foster-care event How to use this benefit: • Leave must be requested and approved through Sedgwick for an associate to receive pay through this policy. • Family care pay can’t be taken intermittently. • Parental pay must be taken in one-week increments. 6 Short-Term Disability and Leave of Absence Process The associate will also need to file for a leave of absence through Sedgwick to access parental and family care pay.

Hourly Associate Short-Term Disability and Parental and Family Care Pay 7

How the hourly short-term disability plan works EXAMPLE FOR FULL-TIME HOURLY ASSOCIATES An associate uses PTO for the first seven calendar days to cover 100 percent of their income their for scheduled days. If they do not have enough PTO to cover this period, they may take the time as unpaid. They then receive 50 or 60 percent of their average weekly wage, based on the coverage they selected, for up to 25 weeks. Please note: before payment, short-term disability claims must be approved by Sedgwick. In statutory states, Liberty must approve STD claims instead of Sedgwick. When an associate contacts Sedgwick to make an STD claim, a request for leave of absence will also be filed. 8 Short-Term Disability and Leave of Absence Process

Parental Pay Policy HOURLY ASSOCIATES (INCLUDING METRO PROFESSIONALS) What this policy does: • Provides pay for two weeks per rolling 12 -month period for the birth, adoption or foster-care event How to use this benefit: • Leave must be requested and approved through Sedgwick for an associate to receive pay through this policy. • Parental pay must be taken in one-week increments. HR’s role: • Sedgwick will send you a notification when an associate’s parental pay has been approved. • How to pay these associates is still TBD. We are currently working on a way to streamline this process. 9 Short-Term Disability and Leave of Absence Process The associate will also need to file for a leave of absence through Sedgwick to access parental pay.

Salaried and Hourly Associate Long-Term Disability 10

Long-term disability (Liberty) SALARIED, METRO PROFESSIONALS AND FULL-TIME HOURLY ASSOCIATES • After short-term disability is exhausted, the associate can transition from Sedgwick to Liberty, if they are unable to return to work due to their disabling medical condition. • This process begins at week 18 of their short-term disability claim. • Long-term disability coverage, if the associate has enrolled, picks up where that associate’s short-term disability coverage ends. • Depending on which Plan the associate has chosen, longterm disability provides up to 50 percent or 60 percent of their average monthly wage, up to a $15, 000 monthly maximum. • Other benefits or income may reduce long-term disability payments. 11 Short-Term Disability and Leave of Absence Process

Leave of Absence Process 12

Associate’s Role Leave of absence requests and short-term disability claim process 13

Associate’s role: filing for leave and short-term disability ALL ASSOCIATES Associates must submit any new requests for leave of absence, including short-term disability claims, to Sedgwick. Here's what an associate needs to submit a request: • Walmart Identification Number (WIN) • Facility number • First day absent from work and estimated return-to-work date • Work schedule for the last three-week period (salaried) or for the last two weeks (hourly) • Type of leave requested (medical, family care, parental, personal, etc. ) • Type of leave duration (continuous, intermittent or reduced schedule) • Name and fax number of the appropriate medical provider for Sedgwick to contact • Salaried associates only: – For the month of January 2018: Whether the associate chooses to use their PTO during the short-term seven-day waiting period – Beginning Feb. 1, 2018: Sedgwick will automatically pay the associate’s scheduled days during the waiting period 14 Short-Term Disability and Leave of Absence Process

Associate’s role: after submitting leave request and STD claim ALL ASSOCIATES • Complete the medical release to help Sedgwick quickly approve the request and claim. • Follow up with their medical provider to make sure the required documentation is submitted as soon as possible – no later than 20 days, or the leave will be denied. • Inform Sedgwick as soon as possible of any delays in providing documentation, or if there is a change in the initial leave date. 15 Short-Term Disability and Leave of Absence Process

Sedgwick’s Role Leave of absence requests short-term disability claim process 16

Sedgwick’s role and what to expect Sedgwick is Walmart's leave of absence, short-term disability, and parental and family care pay administrator for all associates. • Sedgwick will send the appropriate notices and communications directly to the associate, the associate’s manager and to HR. • Their leave/disability specialists will: – Maintain documentation and track the leave/STD/parental and family care claim – Provide notification when the associate has exhausted their job protection time under FMLA and/or state leave – Process leave extension requests when needed – Monitor for patterns regarding intermittent leaves – Serve as a resource to managers and HR representatives, and – Notify an associate if they are nearing 11 months of leave, and additional time may be needed beyond 12 months. 17 Short-Term Disability and Leave of Absence Process For questions about an associate’s leave or STD claim, HR can call Sedgwick at 800 -492 -5678 and choose Option 7.

Sedgwick’s role: the leave process Leave/disability specialists will review the documentation provided by the associate, medical providers and HR representatives, and will: • Make leave and short-term disability determinations Determine if the associate is eligible for leave based on their length of service and time worked, and approve or deny all medical and military leaves, non-discretionary personal leaves and short-term disability claims • Review medical documentation Determine if the medical documentation provided supports a disability claim • Process discretionary leave requests Send discretionary leave requests to the associate’s manager and HR representative for approval or denial • Process military leave requests Review military differential pay, when eligible, for military leaves 18 Short-Term Disability and Leave of Absence Process

Sedgwick’s role: intermittent leave • Beginning Jan. 1, 2018, associates will report absences related to an intermittent leave to Sedgwick through via. One® Express or by calling 800 -492 -5678 within two days of the absence. • Beginning Feb. 1, 2018, salaried associates will have 14 PTO days available to receive pay for an intermittent absence, unless the intermittent leave is associated with an STD claim. Hourly associates will need to request PTO from their HR representative if they wish to be paid. • Associates must also report the absence under the guidelines they follow today, such as to their manager or HR representative. • Sedgwick will send an intermittent leave report to the associate’s manager and HR representative the day following the reported absence. • Intermittent leave is not available for personal leaves. However, an intermittent leave may be granted as an accommodation by the Accommodation Service Center when the leave is for the associate’s own health condition. • HR action: – If a salaried associate has no remaining PTO during an intermittent leave, HR will need to submit a negative retro so the associate is not paid during that time. (See handout. ) – If an associate was previously approved for an intermittent leave, Sedgwick will need documentation of this leave and HR is to send it to Sedgwick. 19 Short-Term Disability and Leave of Absence Process

Sedgwick’s role: short-term disability claims Once a short-term disability claim has been approved, Sedgwick will: • Update GAIN with the associate’s status (salaried associates); • Notify payroll of the associate’s appropriate payment; • Determine the length of the benefit, based on the medical guidelines and diagnosis, and • Determine the length of the associate’s leave, based on what the medical provider has indicated. Please note: this means the associate’s leave may be approved for a longer period of time than the short-term disability benefits are paid. 20 Short-Term Disability and Leave of Absence Process

Sedgwick’s role: short-term disability claims CONTINUED Sedgwick also approves any extension of a short-term disability claim: • If the associate’s additional medical information is not received, the associate’s pay will be stopped on the date the initial approval expires. • The associate will remain unpaid until the additional medical information is received. • Once this information is received, Sedgwick will determine approval of the request for extension of benefits. Once the extension is approved, pay will resume and the associate will receive back pay. • Seven days before the end of leave/short-term disability claim, Sedgwick will send a letter or call to notify the associate their pay is about to be stopped. 21 Short-Term Disability and Leave of Absence Process

Technology interface files from Sedgwick also creates key files for the LOA and short-term disability claim process: Job Row (standard Sedgwick interface) • This file lets Walmart know when a leave begins, when a leave is extended, when a pay status changes and when a leave ends, so that HR and Payroll systems can be updated. Note: hourly associates are currently not on the job row file. ATP – Advice To Pay (standard Sedgwick interface) • This file indicates the correct amount of disability benefits to be processed by Walmart payroll when an associate is on a disability leave. Military Differential File (custom interface Sedgwick created for Walmart) • This file indicates the correct amount of military differential to be processed by Walmart payroll when an associate is on qualifying military leave. Work Schedule (new custom interface Sedgwick created for Walmart) • This file provides additional information about a salaried associate’s scheduled work days during the pay period a leave begins, ends or goes to unpaid, to ensure that the associate is not over- or underpaid. It also indicates any PTO the associate needs to have paid out. Note: hourly associates are not on the work schedule file. 22 Short-Term Disability and Leave of Absence Process

People Partner Team’s role Leave of absence requests and short-term disability claim process 23

People Partner’s role: leave requests and the short-term disability claim process Our People Partner team plays a critical role in supporting our associates when they need help the most – when taking time away from work. A few reminders: • Direct associates to leave-related resources. – If the associate is in the facility, have them apply online immediately through via. One® express. – If the associate fails to request a leave and has been out for more than three days, send the Leave Request Letter. • Stress the importance of applying for leave as quickly as possible. – Delays in applying for a leave can delay the entire process. – Associates have 20 days to submit medical documentation once they contact Sedgwick. • If the associate is unable to report a claim themselves, a family member or HR may do so. 24 Short-Term Disability and Leave of Absence Process

People Partner’s role: after a leave request and short-term disability claim are submitted • Stay informed: – Check via. One® Express to review the status of the leave and any updates or notifications. See the via. One® Express quick reference to learn more about the information you can find on via. One® Express. – Review the weekly leave status report that is sent every Wednesday. – Review the intermittent leave report to ensure time was reported accurately. – Read all email notifications sent by Sedgwick. • Review the approval or denial notification: – For an approval • Make a note of the estimated return to work date for future reference. • An HR action is needed for hourly associates, as the GAIN process is not automated. Please place hourly associates on leave in GAIN. For salaried associates, no action is needed. – For a denial • Read all email notifications and complete any action items sent by Sedgwick. • As directed by Sedgwick, send the associate the Leave Denial Letter and attempt to reach the associate by phone. This letter instructs the associate to contact the facility and speak to a manager and/or HR Representative within three days of receipt. • Do not take any disciplinary action until all action items listed on the email from Sedgwick have been completed. Then, partner with next-level HR and legal counsel prior to considering termination. • An HR action is needed for hourly associates, as the GAIN process is not automated. Please place hourly associates on leave in GAIN. For salaried associates, no action is needed. 25 Short-Term Disability and Leave of Absence Process

People Partner’s role: after a leave request and short-term disability claim are submitted CONTINUED • Support the associate: – Use your resources to assist them: • Check via. One® express to review information about the leave, payment information and more. • If you still have questions or concerns about a leave request, contact Sedgwick at 800 -492 -5678 and choose option 7. • You’ll find resources on the WIRE > LOA Toolkit. • If your questions or concerns are still unresolved, contact the leave and disability team by emailing LOAQOD@wal-mart. com 26 Short-Term Disability and Leave of Absence Process

People Partner’s role: associate pay after a leave request and short-term disability claim are submitted • If the leave request and short-term disability claim are approved, the short-term disability benefit will begin and the associate should not see a disruption in their pay schedule. • If the leave request or short-term disability claim are denied because the associate failed to submit the requested medical information, their pay will be stopped back to the beginning of the relevant pay period. • If short-term disability claim is denied, but the leave is approved, the associate will receive 14 days of Flex. PTO (salaried only) paid by Sedgwick, and will then go to an unpaid leave, beginning Feb. 1, 2018. • If the associates submits the requested medical information and the short-term disability claim is approved, the associate will receive retroactive shortterm disability benefits to cover the unpaid period of time. 27 Short-Term Disability and Leave of Absence Process

People Partner’s role: GAIN process To support this process, a file called Job Row will be sent from Sedgwick to Walmart each day, including weekends and holidays. This file will update GAIN to list the associate on a leave of absence, and to indicate if the leave is paid or unpaid, along with the begin date and estimated end date. For salaried associates, People Partner representatives will not be responsible for entering and approving leave information in GAIN for any leaves submitted to Sedgwick. How will HR representatives know when the Job Row file transfer occurs? • Sedgwick will send an email notification to the associate’s manager and HR representatives when a leave has been requested. • An email notification will also be sent when the leave has been approved, after the Job Row file transfer has updated GAIN with the associate’s leave information. This could take up to 24 hours. • This information is also available through via. One® Express, and the Leave Status Report that HR Representatives will receive each Wednesday from Sedgwick. 28 Short-Term Disability and Leave of Absence Process

People partner’s role: “unapproved absence” reason code If a salaried associate fails to request a leave of absence, fails to contact their HR representative about their immediate return to work or reports their return to Sedgwick but does not actually return, please place the associate in an “unapproved absence” status in GAIN. This stops the associate’s pay until the associate either returns to work or submits a leave request. As with other leave actions entered into GAIN, HR representatives will need to enter the begin date of when the unapproved time began and an estimate of when this action should end. We recommend two weeks. If the associate returns to work, HR representatives should enter the return-to-work action for the associate with the effective date of that return. 29 Short-Term Disability and Leave of Absence Process

Return-to-Work Process 30

Return-to-work process Sedgwick will contact the associate seven days prior to their expected return-to-work date, and send a text message two days before the end of their leave. IMPORTANT – The associate must: • Provide their manager, HR representative and Sedgwick with a Return-to-Work Certification completed by their doctor prior to returning to work, when returning from their own medical leave/short-term disability claim. • Contact Sedgwick on the date they return to work by calling or by entering their return-to-work date in via. One® Express, or replying to Sedgwick’s text message. This ensures the associate will receive accurate and timely pay when they return. Once the associate has returned, Sedgwick will close the leave/claim. NOTE: If the associate fails to return to work, the People Partner should call the associate and send the End-of-Leave letter, which explains the options available to them including RTW, extension, accommodation and voluntary termination. 31 Short-Term Disability and Leave of Absence Process Remember: The associate’s Walmart leave may run concurrently with FMLA and/or State-Protected Leave with job protection. In these cases, the associate’s position should not be replaced while they are out.

Tools and Resources 32

Tools and resources Leave of Absence Toolkit – Updated on Jan. 1, 2018 • Contains FAQs, leave process information and links to related resources such as policy documents and training guides for via. One® Express Leave of Absence policies and management guidelines • Updated policy and management guidelines are available on the WIRE via. One® Express • Sedgwick’s online tool for submitting leave/short-term disability claims, checking claim status, submitting returnto-work dates, submitting intermittent absences and sending messages to Sedgwick 33 Short-Term Disability and Leave of Absence Process

Associate short-term disability feedback: open-door process review Associates who have questions or concerns about their leave of absence or short-term disability claim should first contact their leave/disability specialist at Sedgwick. If concerns remain after discussing with Sedgwick, People Partners should: • Forward the request/concern to the Integrated Absence Management (IAM) team at LOAQOD@wal-mart. com. Complete the appropriate web form for the concern. • The IAM team will investigate the concern and provide the resolution to Sedgwick and the associate’s People Partner. • Remind the associate that Sedgwick is the fiduciary of the short-term disability plan, and that decisions made in accordance with Plan guidelines can’t be overturned. 34 Short-Term Disability and Leave of Absence Process

Thank you! “We’re all working together; that’s the secret. ” SAM WALTON Please do not hesitate to send us any questions or suggestions 35 you may have to LOAquestionsand. Open. Door@wal-mart. com.
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