Kroger Co. KR -0.69% is eliminating some Covid-19 benefits for unvaccinated employees, a move to encourage inoculations as the Biden administration’s vaccine mandate faces legal challenges.
The Cincinnati-based grocery chain told employees last week that it will no longer provide two weeks of paid emergency leave for unvaccinated employees who contract Covid-19, unless local jurisdictions require otherwise. Kroger will also add a $50 monthly surcharge to company health plans for unvaccinated managers and other nonunion employees, according to a memo viewed by The Wall Street Journal. Both policies are effective Jan. 1, the memo said.
Kroger, one of the biggest employers in the U.S. with almost half a million full-time and part-time employees, is tightening pandemic-related policies for workers as U.S. businesses face continued uncertainty over federal vaccination mandates. Rules issued by the Occupational Safety and Health Administration in November require employers with 100 or more workers to ensure employees are vaccinated or take weekly Covid-19 tests by Jan. 4.