Factor One Source Pharmacy to Pay $515,000 in Disability and Genetic Information Discrimination Settlement

Background:

Factor One Source Pharmacy, LLC, a pharmacy specializing in complex medication services, has agreed to pay $515,000 and implement other measures to resolve a disability and genetic information discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

Allegations:

The EEOC's lawsuit alleged that Factor One Source Pharmacy violated the Americans with Disabilities Act (ADA) and the Genetic Information Nondiscrimination Act (GINA) by inquiring about employee disabilities and genetic information and pressuring employees to use its pharmacy services. The company reportedly asked job applicants about their own and their children's hemophilia conditions and medications to target individuals with hemophilia or those with family members affected by it. Factor One allegedly pressured employees to use its pharmacy for expensive hemophilia medications, threatening to fire or lay off those who refused, while retaining those who complied, even if their job performance was poorer compared to others.

Such practices were alleged to have occurred under the company's previous ownership and were in violation of the ADA and GINA, which prohibit discrimination based on disability and genetic information, including certain inquiries about these conditions.

Settlement:

The EEOC filed suit (EEOC v. Factor One Source Pharmacy, LLC, Case No. 1:24-cv-01572-RMR) in the U.S. District Court for the District of Colorado after unsuccessful attempts to reach a pre-litigation settlement through conciliation. The settlement includes $515,000 in monetary relief for affected employees. Additionally, the new owners of Factor One agreed not to employ or contract with the former CEO and owner, refrain from taking adverse actions against employees who do not use the company's pharmacy, provide training on ADA and GINA compliance, and survey employees about their workplace treatment.

Conclusion:

This settlement underscores the importance of compliance with federal laws prohibiting discrimination based on disability and genetic information. It also highlights the need for companies to ensure that employment practices do not exploit employees' medical conditions for profit. The resolution aims to provide meaningful compensation to affected employees and establish preventative measures to avoid future discriminatory practices in the specialty pharmacy industry.