Hy-Vee suspends employee discounts citing 'significant' discrepancies, plans to revamp program

Hy-Vee suspended its employee discount program and plans to revamp it by mid-April after the company uncovered instances of fraud and abuse.

The program was originally launched in 2019 and allowed a Hy-Vee employee and a member of their household to purchase in-store merchandise at a 10% discount. The program was suspended on Monday following allegations of fraud and abuse.

In a press release on Monday, Hy-Vee officials said there was a significant increase in the number of people using the discount, even if they did not live in the same household, or even in the same city, that the employee. The employee-owned company based in West Des Moines, Iowa, added that there were other fraudulent practices and loopholes occurring in the program.

“The discrepancies found were significant enough to signal a much broader issue that needed to be addressed immediately,” the statement said.

As reported by the KAAL television station in Rochester, Minnesota, Hy-Vee executive vice president Georgia Van Gundy noted some instances of fraud in a video sent to employees last Friday. These include an employee whose Fuel Saver account is used in five different states in one hour and another employee who uses their discount to make large purchases with the intent of reselling the items for a profit.

While the discount program is being overhauled, Hy-Vee noted that employees receive many other benefits, including free premium subscriptions to Hy-Vee Plus, a weekly salary and annual tuition assistance through the Bellevue University.

There are 14 Hy-Vee locations in the Omaha-Council Bluffs metro area.