The country's largest supermarket chain issued a companywide memo announcing the changes, which go into effect on January 1. According to a company spokeswoman, the new policies are intended to encourage employees to get Covid vaccines, and the company will continue to offer a $100 incentive to all employees who become fully vaccinated.
"As we prepare for the next phase of the pandemic, we are changing policies to encourage safe behaviors, including vaccination," she said in a statement.
Salaried, nonunion employees who are unvaccinated and enrolled in the company's health insurance plan will be required to pay a monthly $50 surcharge beginning next year, according to a company spokeswoman. Employees who have been fully vaccinated, on the other hand, are eligible for paid Covid leave if a breakthrough case occurs.
The Wall Street Journal broke the Kroger story first.
The announcement comes as the spread of the omicron variant raises new concerns about how businesses should conduct themselves and when corporate employees will return to work. New York and California have reinstated mask mandates, regardless of vaccination status. That’s led to retailers posting entrance signs reminiscent of the earlier months of the pandemic, reminding customers they must put on masks before stepping inside. Some businesses, including Google, have postponed plans to require employees to return to work in January.
According to a regulatory filing, Kroger is one of the country's largest employers, employing approximately 465,000 people as of January 31.
Other companies have tightened their policies regarding Covid vaccinations or imposed penalties on employees who do not receive them. Unvaccinated Delta Air Lines employees will have to pay a $200 monthly surcharge for health insurance beginning in November.