Hy-Vee has suspended its employee discount program and plans to revamp it by mid-April after the company found cases of fraud and misuse.
The program was originally launched in 2019 and allowed a Hy-Vee employee and one member of their household to buy store merchandise at a 10% discount. The program was suspended Monday following allegations of fraud and abuse.
In a press release Monday, Hy-Vee officials said there was a significant uptick with people using the discount, even though they did not live in the same household, or even the same city, as the employee. The employee-owned company based in West Des Moines, Iowa, added that there were 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,” the release stated.
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As reported by TV station KAAL in Rochester, Minnesota, Hy-Vee executive vice president Georgia Van Gundy noted some instances of fraud in a video sent to employees last Friday. Those include an employee having their Fuel Saver account used in five different states in one hour and another employee using their discount to make large purchases with the intention of reselling the items at a profit.
While the discount program is getting revamped, Hy-Vee noted that employees enjoy many other benefits, including free Hy-Vee Plus premium memberships, weekly pay and annual tuition assistance through Bellevue University.
There are 14 Hy-Vee locations in the Omaha-Council Bluffs metropolitan area.
Our best Omaha staff photos & videos of February 2023

Swimmers take off in the boys 400 yard freestyle relay in the NSAA state swimming championship finals in Lincoln on Saturday.

Snow still covers fields as the sun starts to set near Wynot, Nebraska on Thursday.

Sutherland's Grady Dempcy is introduced before he takes on David City Aquinas's Grady Romshek for the Class D during the state final 106 pound match on Saturday.

Millard South's Miles Anderson, left, walks away after pinning Lincoln East's Joshua Shaner during the Class A state final 126 pound match on Saturday.

Omaha's Ty Mueller gets a first-half shot past Colorado College goalie Kaidan Mbereko's left hand in the first period to put UNO up 1-0 on Friday. Also on the play is Colorado College's Noah Laba, top right, and Nicklas Andrews, bottom left.

Maria Sosa teaches a Folklórico class at the Hispanic Arts Center inside the former Center Theater located at 3504 Center Street on Tuesday.

A pedestrian crosses east on 13th Street at Harney Street during a winter storm on Thursday.

Wisner-Pilger fans cheer on a wrestler in the NSAA State Wrestling championships in Omaha on Thursday.

A pedestrian crosses west on 17th Street at Douglas Street in the rain on Tuesday.

Haley Quall, right, and Lisa Mueller prepare flower arrangements for Valentine's Day in the greenhouse at Janousek Florist in Omaha on Monday. The family-owned florist expects to have about 700 orders for the holiday.

Creighton's Shereef Mitchell (4) walks off the court with head coach Greg McDermott following the UConn vs. Creighton men's basketball game in Omaha on Saturday. Creighton won the game 56-53.

Victor Benjamin shapes clay in his hand as he works on a sculpture of Chief Big Elk at the KANEKO on Wednesday.

People watch as Victor Benjamin works on a sculpture of Chief Big Elk at the KANEKO on Wednesday. It will eventually be placed at the newly renovated Lewis & Clark Landing at The RiverFront.

Victor Benjamin works on a sculpture of Chief Big Elk at the KANEKO on Wednesday. It will eventually be placed at the newly renovated Lewis & Clark Landing at The RiverFront.

Creighton's Lauren Jensen dribbles the ball in the first half against St. John's on Saturday.

Creighton's Morgan Maly and her team celebrate a second-half three-point basket against St. John's on Saturday.

Employees and customers retrieve their belongings a day after they fled a Target at 17810 West Center Road after someone walked in and started firing an assault rifle. Omaha police shot and killed the suspect.

Omaha Zoo CEO Luis Padilla announces an update to the Hubbard Orangutan Forrest on Friday.

Sarah Nocita hugs her son, Michael Baker, as they move into a new place in northwest Omaha on Thursday. They were tenants of the Legacy Crossing Apartments before being forced to move after the City of Omaha shut down the complex in December.