Hy-Vee abruptly suspends employee discount program, alleging abuse

OMAHA, Neb. (WOWT) - Employees at Hy-Vee were informed Monday that they will no longer get a 10% discount on store purchases; but the company says it’s working on “revamping 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 halted because some employees were abusing the benefit. The grocery store chain is Iowa’s largest private employer, with 93,000 employees across eight states.

The discount in place at Hy-Vee, based in West Des Moines, since 2019 allowed employees — plus one member of their household — to get a 10% employee discount at the grocery chain.

“Over the past several months, a significant uptick in the amount of users utilizing the employee discount who were not living in the same household or living in other cities was identified, in addition to other fraudulent practices and loopholes that were occurring within the program,” Tina Potthoff, senior vice president of communications for Hy-Vee said in the email. “The discrepancies found were significant enough to signal a much broader issue that needed to be addressed immediately.”

Company officials said the updated employee perks program would roll out by mid-April.

In the meantime, employees are not without benefits, the spokesperson said. According to the email, the regional grocery chain prides itself on offering its employees “one of the most competitive and comprehensive benefit packages in the retail industry,” including:

• Free Hy-Vee Plus premium membership, which includes perks like free delivery, exclusive discounts, and freebies.
• Worker benefits that include a 401(k) plan with a matching contribution, expedited paycheck services, holiday pay, and health insurance for eligible part-time employees that includes an employer contribution as well as free telehealth visits on some plans.
• Discounts on RedBoxRx.com pharmacy orders, access to Care.com to connect with service providers, and other benefits through PerkSpot.com, including discounts on childcare, electronics, cell phone plans, and entertainment.
• Career development opportunities include up to $10,500 in annual tuition assistance with Bellevue University. Additionally, immediate family members of Hy-Vee employees can get up to $2,500 annually for tuition assistance.

Read Hy-Vee’s full statement

On Friday, Feb. 17, Hy-Vee issued communication to its employees that its Employee Discount Program would be suspended starting today, Feb. 20, so it could be revamped over the upcoming weeks. This program was originally launched in 2019 with specific guidelines that would allow employees and one member of their household to utilize a 10% everyday employee discount. Over the past several months, a significant uptick in the amount of users utilizing the Employee Discount who were not living in the same household or living in other cities was identified, in addition to other fraudulent practices and loopholes that were occurring within the program. The discrepancies found were significant enough to signal a much broader issue that needed to be addressed immediately. We are currently in the process of revamping the program with the goal to relaunch the benefit to our employees by mid-April. We still offer one of the most competitive and comprehensive benefit packages in the retail industry. Those benefits include some of the following:

• A free Hy-Vee Plus premium membership, which includes free delivery and Express Hy-Vee Aisles Online pickup as well as other free monthly items, exclusive discounts and other perks.

• Weekly pay as a faster, more convenient way to receive a paycheck.

• A 401(k) plan with a matching contribution

• Holiday pay for retail employees.

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

• Career development opportunities through Hy-Vee University.

• Up to $10,500 in annual tuition assistance with Bellevue University, plus immediate family members of Hy-Vee employees can receive up to $2,500 in annual tuition assistance from Hy-Vee.

• Free Doctor on Demand telehealth visits with select insurance plans.

• A 10% employee discount on RedBoxRx.com pharmacy orders.

• Access to Care.com to connect with service providers to care for families, pets and more.

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

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