Last week, Kroger announced it was going to invest more in its workforce. However, it appears the grocery giant has an issue with money landing in the right spot.
Four lawsuits have been filed accusing Kroger of paying employees less than they were supposed to make or failing to deliver payment at all. The culprit behind the error seems to be a new payroll system called MyTime or MyInfo. The lawsuits note the problems arose between September and November of last year and happened in four states: Ohio, Oregon, Washington and Virginia. The lawsuits also accuse Kroger of violating several state and federal laws.
Kroger said many of the issues have been resolved and that it has taken the necessary steps to expedite payments to employees impacted by the error. Still, the lawsuits tell a story of despair. Some employees had to take second jobs or pull out high-interest loans due to the shortchanging and missed payments.
Sens. Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Ron Wyden (D-Ore.) wrote a letter to Kroger CEO Rodney McMullen about the issue. The lawmakers wanted to know the specifics behind the problem and what Kroger has done to resolve it.
On March 6, Kroger announced it was giving back $770 million to its employees in the form of increased wages and benefits, which include training and development opportunities. This is not a one-off move for the grocer giant. Kroger has invested $1.9 billion in its work force since 2018. The average hourly rate has gone up from $18 an hour to $23.50. Kroger also has set up an educational benefit program that provides $21,000 for continuing-education opportunities; affordable health care options that are easy to access, including free counseling via Well-Being Assistant; free financial coaching services; and an onboarding experience that leads to employee confidence.
“Our associates enable our success, and we are committed to investing in theirs,” said McMullen. “For so many, Kroger represents a first job, a new beginning or a change in career path. Continuing to raise wages and provide excellent benefits to our associates is one way we demonstrate how much we value and respect their contributions.”
