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Raley's grocery stores agreed to pay $580,000 in penalties to settle a civil case brought by Monterey and five other counties for the company's illegal handling of workers' compensation insurance claims. Raley's owns the Nob Hill Foods grocery chain on the Central Coast.
The case originated in 2007 in Amador County, where a Raley's employee complained that store managers tried to dissuade the worker from reporting an injury. The local and state investigation led to misdemeanor convictions for two managers. It also revealed a widespread practice within the company of managers encouraging workers to use their own health insurance to address injuries.
District attorneys in Monterey, Sacramento, Placerville, San Joaquin and Yolo counties joined in the investigation, interviewing more than 100 Raley's employees with the cooperation of the company's managers. Assistant District Attorney Annie Michaels said the prosecutors decided they could achieve a greater impact by taking civil action against the company for unfair business practices.