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Hy-Vee suspends employee discount. Company says it should be revamped by mid-April

File image of Hy-Vee (WLUK)
File image of Hy-Vee (WLUK)
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Hy-Vee claims "fraudulent practices" and "loopholes" are the main reasons it decided to suspend its 10% employee discount on Monday.

The perk was launched a few years ago and allows employees and one member of their household to use it.

Hy-Vee says 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."

In a video posted to Reddit, Georgia Van Gundy, Executive Vice President of Hy-Vee, said one employee's Fuel Saver account was used in five different states in only one hour. In another case, they said one employee bought an item in bulk, worth more than their entire paycheck, and believe that person planned to resell them at a profit.

People commenting on the post criticized the company for how it was being handled.

"WOW. So they can identify the exact fraudsters, who they are and where there Fuelsavers were used, but all of us are being punished. The 20% off weekend really feels like a "gotcha" now. So will Hy-Vee be raising it's pay to offer what employees are losing out on? Imagine working at a grocery store and not getting any discount at all," one Redditor said.

"This is just so insane to me. I’ve never heard of a company taking away employees discount company wide because of a few taking advantage of it. They go after the individual, but to remove it for everyone?" Another one wrote.

A company spokesperson says they plan to relaunch the benefit by mid-April.

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In a release, Hy-Vee says its just one of several benefits it gives to workers which are listed below.

  • 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 pharmacy orders.
  • Access to to connect with service providers to care for families, pets and more.
  • Exclusive perks through, including discounts on childcare, electronics, cell phone plans, entertainment and more.
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