Continuing the trend of legislation in response to headline news, California passed SB 362 prohibiting the use of quotas at chain community pharmacies. This bill modifies California’s Pharmacy Law, which regulates all pharmacy licensees.

SB 362 applies to chain community pharmacies, which are defined as chains of 75 or more stores in California under the same ownership. Chain community pharmacies are distinct from independent community pharmacies (four pharmacies or less under the same ownership).

The bill adds Section 4113.7 to the Business and Professions Code. That statute states that a chain community pharmacy “shall not establish a quota related to the duties for which a pharmacist or pharmacy technician license is required.” 

Quotas are defined as “a fixed number or formula related to the duties for which a pharmacist or pharmacy technician license is required, against which the chain community pharmacy or its agent measures or evaluates the number of times either an individual pharmacist or pharmacy technician performs tasks or provides services while on duty.”  Quotas may be related to prescriptions filed, services rendered to patients, programs offered to patients, and revenue obtained.

SB 362 enables the California State Board of Pharmacy to “take an enforcement action against a chain community pharmacy…that violates Section 4113.7 unless, by clear and convincing evidence, the chain community pharmacy demonstrates that the violation was contrary to its policy.”

SB 362 is one of several laws passed in 2021 to regulate various industries, including AB 701 curbing the use of quotas in fulfillment warehouses and SB 62 banning piece rate pay for garment workers.