Hy-Vee suspends employee discount after it says it found fraud

COMING UP LATER IN THIS NEWSCAST. BIG FIRE HY-VEE ANNOUNCES IT IS REVAMP ITS EMPLOYEE DISCOUNT IN VIDEO, A VIDEO SENT TO EMPLOYEES IS IOWA’S LARGEST PRIVATE EMPLOYER SAID IT HAS FOUND THAT SOME WORKERS ARE ABUSING THE PROGRAM. A LOT OF EMPLOYEES HAVE CONTACTED US WITH THEIR CONCERN AND SO WE LOOKED INTO IT. KCCI CHIEF INVESTIGATIVE REPORTER JAMES STRATTON IS HERE WITH WHY HY-VEE SAYS IT IS DITCHING THE DISCOUNT FOR NOW. AND STEVE AND STACY, THAT VIDEO SENT TO HY-VEE EMPLOYEES SAID BECAUSE OF FRAUD, THE COMPANY STOPPED THE PROGRAM STARTING TODAY, BUT WILL BE REEVALUATING THAT DISCOUNT PROGRAM. PLANS TO HAVE A NEW ONE UP BY MID-APRIL. I JUST WANT TO BE CLEAR. ON MONDAY, FEBRUARY 20TH, WE ARE STOPPING THE EMPLOYEE DISCOUNT PROGRAM. THAT WAS THE MESSAGE SENT TO HY-VEE EMPLOYEES IN A THREE MINUTE 32ND VIDEO. THE STATE’S LARGEST PRIVATE EMPLOYER STOPS ITS 10% EMPLOYEE DISCOUNT TODAY AFTER IT SAYS IT FOUND EMPLOYEES WERE ABUSING IT. WE ALSO HAVE EVIDENCE OF MULTIPLE EMPLOYEES HAVING MULTIPLE FAMILIES OR HOUSEHOLDS IN VARIOUS CITIES AND VARIOUS STATES USING THE DISCOUNT WHEN AGAIN, IT WAS DESIGNED TO BE USED BY THE EMPLOYEE AND ONE OTHER FAMILY MEMBER WHO LIVES IN THE SAME HOUSEHOLD. GEORGE VAN GUNDY, HIVE’S EXECUTIVE VICE PRESIDENT, CHIEF OF STAFF AND CHIEF CUSTOMER OFFICER, DELIVERED THE NEWS, SAYING IN ONE CASE THAT EMPLOYEES FEEL SAVE HER ACCOUNT WAS USED IN FIVE DIFFERENT STATES IN AN HOUR AND ANOTHER THEY ARE, QUOTE, FAIRLY CERTAIN WAS BUYING DISCOUNTED ITEMS TO RESELL. SO THE COMPANY WILL STOP THE BENEFIT FOR ALL EMPLOYEES. IT’S UNFORTUNATE AND VERY DISAPPOINTING THAT WE’VE HAD TO STOP OUR EMPLOYEE DISCOUNT PROGRAM DUE TO THE FRAUDULENT ACTIVITY WE’VE SEEN IN THE VIDEO. VAN GUNDY SAYS. HY-VEE STILL HAS THE BEST EMPLOYEE BENEFIT PROGRAM FOR RETAIL EMPLOYEES, WHICH INCLUDES A SIX MONTH FREE HY-VEE PLUS PROGRAM. DISCOUNTS ON CHILD AND ELDERLY CARE AND FREE MEALS ON WEEKENDS. IN AN EMAIL SENT LATE MONDAY AFTERNOON, A HY-VEE SPOKESPERSON SAYS THE COMPANY IS NOT ELIMINATING THE DISCOUNT, BUT RATHER REVAMPING IT. THE COMPANY HAS A GOAL TO RELAUNCH THE DISCOUNT PROGRAM BY MID APRIL. VAN GUNDY SAID IN THE VIDEO, HY-VEE NEEDS A STRONGER PROGRAM WITH MORE CHECKS AND BALANCES. AN EMPLOYEE DISCOUNT PROGRAM HAD BEEN IN PLACE SINCE 2019. HY-VEE SAID IT WILL STILL OFFER ONE OF THE MOST COMPETITIVE AND COMPREHENSIVE BENEFIT PACKAGES IN RETAIL. FOR

Iowa's largest private employer will temporarily stop its employee discount.Several people have reached out to the KCCI newsroom after the West Des Moines-based grocery chain made the announcement. According to an internal video obtained by KCCI, effective today, employees will no longer receive a 10% discount at the store. In the video, Hy-Vee executive Georgia Van Gundy explains the change is due to fraud and abuse happening within the program, which was launched in 2019. Van Gundy said company executives will spend the coming months evaluating the program, and hope to announce a new employee discount program in the coming months. Van Gundy said there is a need for more checks and balances so the discount can't be abused. In an email sent to KCCI late Monday afternoon, Hy-Vee Senior Vice President of Communications, Tina Potoff said the video was sent to employees on Friday. The program will be revamped and Hy-Vee has a goal to relaunch the benefit to employees by mid-April. "We still offer one of the most competitive and comprehensive benefit packages in the retail industry," Pothoff wrote. The company has been in the headlines over the past year for several changes to its corporate structure, including laying off hundreds of employees.Hy-Vee is the largest private employer in Iowa.According to its website, more than 93,000 people work for Hy-Vee across eight states. The benefits in the package still include 401k match, a free Hy-Vee premium membership, weekly pay, holiday pay for retail employees part-time insurance with an employer contribution based on eligibility, career development, tuition assistance and more.

WEST DES MOINES, Iowa —

Iowa's largest private employer will temporarily stop its employee discount.

Several people have reached out to the KCCI newsroom after the West Des Moines-based grocery chain made the announcement.

According to an internal video obtained by KCCI, effective today, employees will no longer receive a 10% discount at the store.

In the video, Hy-Vee executive Georgia Van Gundy explains the change is due to fraud and abuse happening within the program, which was launched in 2019.

Van Gundy said company executives will spend the coming months evaluating the program, and hope to announce a new employee discount program in the coming months.

Van Gundy said there is a need for more checks and balances so the discount can't be abused.

In an email sent to KCCI late Monday afternoon, Hy-Vee Senior Vice President of Communications, Tina Potoff said the video was sent to employees on Friday. The program will be revamped and Hy-Vee has a goal to relaunch the benefit to employees by mid-April.

"We still offer one of the most competitive and comprehensive benefit packages in the retail industry," Pothoff wrote.

The company has been in the headlines over the past year for several changes to its corporate structure, including laying off hundreds of employees.

Hy-Vee is the largest private employer in Iowa.

According to its website, more than 93,000 people work for Hy-Vee across eight states.

The benefits in the package still include 401k match, a free Hy-Vee premium membership, weekly pay, holiday pay for retail employees part-time insurance with an employer contribution based on eligibility, career development, tuition assistance and more.

Hy-Vee suspends employee discount after it says it found fraud

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