Hy-Vee announces termination of employee discount due to fraud and abuse

Iowa’s largest private employer will pause employee deductions, and several people reached out to the KCCI newsroom after the West Des Moines-based grocery chain made the announcement. According to an internal video obtained by the Kuwait Chamber of Commerce and Industry, starting today, employees will no longer receive the 10% discount in store. In the video, Hy-Vee CEO Georgia Van Gundy explains that the change is a result of fraud and abuse occurring within the program, which launched in 2019. Company executives will spend the coming months evaluating the program and, hopefully, publicity, said Van Gundy. About the new employee discount program in the coming months. Van Gundy said more checks and balances were needed so the opponent could not be abused. In an email sent to the Kuwait Chamber of Commerce and Industry late Monday afternoon, Tina Botoff, senior vice president of communications for Hy-Vee, said the video was sent to employees on Friday. The program will be revamped and Hy-Vee aims to relaunch the feature for employees by mid-April. “We continue to offer one of the retail industry’s most competitive and comprehensive benefits packages,” Pothoff wrote. The company has made headlines over the past year for making several changes to its corporate structure, including laying off hundreds of employees. Hy-Vee is the largest private employer in Iowa, and according to its website, more than 93,000 people work at Hy-Vee across eight states. Benefits still in the package include 401k matches, free Hy-Vee membership, weekly pay, retail employee holiday pay with part time insurance with employer contribution based on eligibility, career development, tuition assistance and more.

Cynthia Motley

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