Kim, Fleming, Madsen release statement on Rite Aid ‘reversal’ of payment to laid-off workers

HARRISBURG, March 8 – State Reps. Patty Kim, Justin Fleming and David Madsen released the following statement today upon learning the Rite Aid Corporation chose to “reverse” severance payments to workers laid off as part of the company’s bankruptcy agreement, leading to some of those laid-off workers having already-paid money removed from their bank accounts.

“We are disappointed and angered to learn Rite Aid not only isn’t paying laid-off workers the severance pay they are contractually obligated to receive, but Rite Aid actually went so far as to take already-paid money out of workers’ bank accounts. Rite Aid owes a lot of money to a lot of creditors as they navigate bankruptcy proceedings, but the first people who should get paid should be the laid-off workers who need the money they are owed to buy food, medicine, and heat -- not the banks, hedge funds and venture capital firms with billions in cash on hand.

“We are calling on Rite Aid to immediately get this money back in the wallets of the people who are owed, to take responsibility for any and all overdraft or late payment fees incurred by those impacted, and to never do this again.

“We plan on convening legislative hearings to investigate and will also be consulting with the attorney general as to the legality of such decisions by any corporate entity.”