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.
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.
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