Factor One Source Pharmacy Pressured Employees and Applicants to Fill Expensive Hemophilia Prescriptions with the Company
Factor One Source Pharmacy, LLC has agreed to pay $515,000 and provide other relief to resolve a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) for disability and genetic information discrimination. The lawsuit alleged that the pharmacy violated the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA) by pressuring employees and applicants to use its pharmacy services for expensive hemophilia prescriptions. The company unlawfully inquired about employee disabilities and genetic information and targeted individuals with hemophilia or family members with hemophilia for recruitment.
Employees who refused to use the company’s pharmacy services for hemophilia medications were reportedly fired or laid off, while those who complied retained their jobs, even if they had poorer performance reviews. This alleged conduct violated the ADA and GINA, which prohibit discrimination based on disability and genetic information.
The EEOC filed the suit in the U.S. District Court for the District of Colorado, and the settlement requires the new owners of Factor One to pay $515,000 in monetary relief, among other provisions. The company is also prohibited from employing or contracting with its prior CEO and owner, taking adverse employment actions against employees based on their non-use of the company’s pharmacy, and must provide ADA and GINA training to employees and conduct a survey on their treatment in the workplace.
EEOC officials emphasized the importance of preventing unlawful discrimination in the specialty pharmacy industry and highlighted that federal laws prohibit discrimination based on familial connections, such as family medical history under GINA and discrimination based on an employee’s relationship or association with an individual with a disability under the ADA.