Hy-Vee Suddenly Suspends Employee Rebate Program Alleging Abuse

OMAHA, Nebraska (Nebraska). On Monday, Hy-Vee employees were told they would no longer receive a 10% discount on in-store purchases; but the company says it’s working on “processing the program.”

Acknowledging the abrupt end of the employee discount on Monday, a senior Hy-Vee official said in an email that the program was stopped because some employees were abusing the benefits. The grocery store chain is the largest private employer in Iowa, with 93,000 employees across eight states.

The discount, which has been in place at West Des Moines-based Hy-Vee since 2019, has allowed employees — plus one member of their family — to receive a 10% employee discount at the grocery store.

“Over the past few months, in addition to other fraudulent activities and loopholes that have taken place under the program, there has been a significant surge in the number of users using the discount for employees who did not live in the same household or lived in other cities. said Tina Potthoff, senior vice president of communications for Hy-Vee. “The inconsistencies found were significant enough to signal a much broader problem that needed to be addressed immediately.”

Company officials said the revamped employee benefits program will be rolled out by mid-April.

At the same time, employees are not without benefits, the spokesman said. According to the email, the regional grocery chain is proud to offer its employees “one of the most competitive and comprehensive benefits packages in retail,” including:

• For free Hy-Vee Plus Premium Membershipwhich includes perks such as free shipping, exclusive discounts and free gifts.
• Benefits for employees which include a 401(k) plan with a qualifying contribution, accelerated payroll services, vacation pay, and health insurance for eligible part-time employees that include an employer contribution, and free telehealth visits in some plans.
• Discounts on orders at RedBoxRx.com pharmacies, access to Care.com to connect with providers, and other benefits through PerkSpot.com, including discounts on childcare, electronics, mobile phone plans, and entertainment.
• Career Development Opportunities include up to $10,500 per year to study at Bellevue University. In addition, immediate family members of Hy-Vee employees can receive up to $2,500 per year in tuition fees.

Read Hi-V’s full statement

On Friday, February 17th, Hy-Vee informed its employees that its employee discount program will be on hold as of today, February 20th, so it is subject to change in the coming weeks. This program was originally launched in 2019 with specific guidelines that will allow employees and one member of their family to use a 10% daily employee discount. Over the past few months, in addition to other fraudulent activities and loopholes that have taken place under the program, there has been a significant increase in the number of users using the discount for employees who did not live in the same house or in other cities. The discrepancies found were large enough to signal a much broader problem that needs to be addressed immediately. We are currently reviewing the program with the goal of restarting our employee benefits by mid-April. We continue to offer one of the most competitive and comprehensive retail benefit packages. These benefits include some of the following:

• Free Hy-Vee Plus Premium Membership which includes free shipping and Hy-Vee Aisles Online express delivery plus other free monthly items, exclusive discounts and other perks.

• Weekly pay as a faster and more convenient way to get paid.

• 401(k) plan with the corresponding premium

• Vacation pay for retail workers.

• Part-time insurance with employer contribution based on eligibility.

• Career opportunities at Hi-Vee University.

• Up to $10,500 per year tuition at Bellevue University, plus next of kin of Hy-Vee employees can receive up to $2,500 per year tuition from Hy-Vee.

• Free on-demand telemedicine visits with select insurance plans.

• 10% employee discount on orders at RedBoxRx.com pharmacies.

• Access Care.com to connect with family care providers, pet care providers, and more.

• Exclusive perks through PerkSpot.com, including discounts on childcare, electronics, mobile phone plans, entertainment and more.

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