Rite Aid resolves severance pay issue for laid-off workers after meeting with local lawmakers

HARRISBURG, March 13 – Following a meeting with Rite Aid Corporation, state Reps. Justin Fleming, David Madsen and Patty Kim are pleased to confirm that Rite Aid has taken action to address the recent dispute in severance payments to laid-off workers.

In response to concerns raised by the community and state representatives, Rite Aid worked to meet its contractual obligations to provide these payments to affected employees. The lawmakers said Rite Aid has also agreed to implement measures to prevent similar occurrences from happening in the future to ensure that all laid-off employees receive the compensation they are rightfully owed.

“I am glad that Rite Aid has agreed to pay laid-off workers the severance pay they are contractually obligated to receive,” Fleming said. “Rite Aid’s first obligation should have been to the people who served them faithfully for years and who now—due to the company’s bankruptcy—are out of work and may be struggling to make ends meet. I’m glad that the company rectified this issue and more importantly are taking steps to ensure that they have the funds to pay employees the severance they’re owed moving forward.”

"While I’m pleased to see Rite Aid take responsibility for its actions and fulfill its commitments to its former employees, we can’t allow companies to wait until they face public backlash before doing what they are expected to do,” Madsen said. "The resolution of this issue demonstrates the Democrats’ commitment to supporting our workforce and the community at large. Wherever PA workers are facing injustice, we’ll be in numbers.”

“Corporations need to show an emphasis on treating workers like they are more important than a bottom line, even when the company is troubled,” Kim said. “Rite Aid has recognized that, and I’m happy to report a positive development when there could have been more anguish in the process.

“Founded in Scranton, Rite Aid is a Pennsylvania business, and we hope the best for them as they continue to navigate bankruptcy proceedings,” she said.

Moving forward, the state representatives said they will continue to monitor the situation closely to ensure ongoing compliance with labor laws and corporate responsibility. They also extended their gratitude to all parties involved for their cooperation in resolving the matter swiftly and effectively.