Three senators wrote to The Kroger Company Chairman and CEO Rodney McMullen on Feb. 15, accusing the company of wage theft after the installation of a new payroll system last year. We've gathered articles on the news from SHRM Online and other outlets.
'Alarming New Reports'
Senators Elizabeth Warren, D-Mass., Bernie Sanders, I-Vt., and Ron Wyden, D-Ore., wrote of "alarming new reports" indicating that "systemic and widespread errors" by Kroger resulted in thousands of employees experiencing delays and missing wages in their paychecks in late 2022. "We are writing to request a full explanation of how your workers will be compensated for any lost or delayed wages, and how you will prevent future wage theft," the senators wrote.
Class Action Lawsuits Filed
Kroger employees in five states have filed four class action lawsuits. The lawsuits alleged that technical problems caused missing or late paychecks and mistakes in hours worked, wages paid and statements of deductions and withholdings.
Kroger has responded to these cases with arguments that it acted in good faith to identify and correct payroll mistakes and that employees failed to pursue grievance, arbitration and other remedies before suing. The company also objects to the use of class actions to settle the controversy.
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