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Law360 (May 20, 2020, 8:23 PM EDT) -- Kroger won't require workers to return coronavirus-related emergency pay they received that the company contended were overpayments, the United Food and Commercial Workers Local 770 said Wednesday.
In a press release, the UFCW Local 770 said that Kroger had sent certain employees letters demanding repayment, prompting backlash from the public. Dozens of workers in Southern California, where the local is based, were among those who received the communication, according to the union.
A Kroger spokesperson said in a statement Tuesday that the situation resulted from "an unfortunate payroll accounting error."
"We've since instructed our payroll department to directly inform the small number of associates affected by the recent overpayments of COVID-19 emergency leave pay that we will not seek repayment," the spokesperson said.
Kroger's reversal comes less than a week after it agreed to provide one-time bonuses for qualified full- and part-time associates of $400 and $200, respectively. The May 15 bonus announcement came after the company faced criticism for its decision not to extend a $2 per hour pay increase for front-line grocery store workers beyond May 17, the union said.
"Together with our members and workers across the country, we've continued to keep pressure on Kroger to treat workers fairly and protect their health and safety throughout the pandemic. This is another win," Kathy Finn, secretary-treasurer of UFCW Local 770, told Law360 in a statement Wednesday. "Kroger, a multibillion-dollar corporation, is making record profits off the hard work of their employees who've shown up every day on the front lines to keep stores open and safe in order to keep their communities fed."
Kroger CEO Rodney McMullen's salary has also come under fire from the union and others. On Tuesday, Sen. Bernie Sanders, I-Vt., tweeted that the executive "got paid $21.1 million a year as its workers struggle to get by on $26,000."
"Kroger got a 30% boost in sales in March, but is ending $2-an-hour hazard pay," Sanders said in the tweet. "Disgusting. It can damn well afford to pay grocery workers a dignified wage as they risk their lives."
The company, which owns Ralphs and Food 4 Less, started providing front-line associates with free COVID-19 testing based on their symptoms and medical needs earlier in May. The bonuses announced by Kroger last week will total $130 million, according to the company.
--Editing by Alanna Weissman.
Correction: A previous version of this story misidentified Sanders' party affiliation. The error has been fixed.
For a reprint of this article, please contact reprints@law360.com.
