Hy-Vee suspends employee discount after it says it found fraud

Iowa’s largest private employer will temporarily stop its employee discount.


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Several people have reached out to the KCCI newsroom after the West Des Moines-based grocery chain made the announcement.


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According to an internal video obtained by KCCI, effective today, employees will no longer receive a 10% discount at the store.

In the video, Hy-Vee executive Georgia Van Gundy explains the change is due to fraud and abuse happening within the program, which was launched in 2019.

Van Gundy said company executives will spend the coming months evaluating the program, and hope to announce a new employee discount program this summer.

Van Gundy said there is a need for more checks and balances so the discount can’t be abused.

In an email sent to KCCI late Monday afternoon, Hy-Vee Senior Vice President of Communications, Tina Potoff said the video was sent to employees on Friday. The program will be revamped and Hy-Vee has a goal to relaunch the benefit to employees by mid-April.

“We still offer one of the most competitive and comprehensive benefit packages in the retail industry,” Pothoff wrote.

The company has been in the headlines over the past year for several changes to its corporate structure, including laying off hundreds of employees.

Hy-Vee is the largest private employer in Iowa.

According to its website, more than 93,000 people work for Hy-Vee across eight states.

The benefits in the package still include 401k match, a free Hy-Vee premium membership, weekly pay, holiday pay for retail employees part-time insurance with an employer contribution based on eligibility, career development, tuition assistance and more.


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