Rite Aid (NYSE: RAD) is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill.[3][4] It operates more than 4,780 stores in 31 states and the District of Columbia, features a strong presence on both the East and West Coasts, and employs approximately 109,000 associates. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S.
Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008. In 2008, its market capitalization dropped to under $500 million. As of 25 February 2010, the market capitalization of Rite Aid was about $1.3 billion.
Equal Opportunity Employer
Rite Aid is an equal opportunity employer and is committed to cultivating a diverse work environment where individual differences are appreciated and respected. It is the Company's policy, through responsible management, to recruit, hire, train, and promote associates regardless of their race, color, national origin, religion, sex, sexual orientation, disability, age, or any other basis protected by state or federal law. The objective of this policy is to ensure conformity with the principles of equal opportunity employment when making employment decisions and administering compensation, benefits, transfer and social recreational programs. Rite Aid prohibits unlawful retaliation against any person who reports harassment or discrimination.
On July 27th, the Department of Health and Human Services (HHS) and the Federal Trade Commission (FTC) announced settlements with Rite Aid Corporation for the improper disposal of personal information -- including prescriptions and labeled pill bottles containing identifiable information about Rite Aid customers, and employment applications -- in publicly accessible dumpsters behind Rite Aid stores in a number of cities across the country. In addition to improperly disposing of personal information, HHS and the FTC also claimed that Rite Aid failed to:
implement policies and procedures to dispose securely of such information, including, but not limited to, policies and procedures to render the information unreadable in the course of disposal;
adequately train employees to dispose securely of such information;
use reasonable measures to assess compliance with its established policies and procedures for disposing such information; and
employ a reasonable process for discovering and remedying risks to such information.
Under the HHS resolution agreement, Rite Aid agreed to pay $1 million to settle potential violations of the Health Insurance Portability and Accountability Act Privacy Rule. Rite Aid also agreed to distribute policies and procedures for protecting protected health information (such as the patient information improperly disposed in this case), train employees on the policies and procedures, monitor for violations, sanction employees who commit violations, and hire a third-party auditor to conduct periodic compliance reviews. The HHS resolution agreement applies for three years.
In its consent order, the FTC accused Rite Aid of committing both unfair and deceptive trade practices in violation of Section 5 of the FTC Act. Specifically, the FTC claimed that Rite Aid committed unfair trade practices when it failed to employ reasonable and appropriate measures to prevent unauthorized access to the personal information, and committed deceptive trade practices when it recklessly disposed of customers' health information despite making claims it would responsibly protect such information.
In addition to the penalties imposed by HHS, the FTC ordered Rite Aid to cease misrepresenting its information security practices to consumers, establish a comprehensive information security program reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers and employees, and obtain biannual audits of its information security program for the next 20 years.
These settlements were similar to those imposed on CVS Caremark in February of 2009, which also stemmed from a joint investigation of the HHS and the FTC into reports of improperly disposed patient and employee information into publicly accessible dumpsters. While many of the procedural requirements of the settlements are similar, in that case HHS required CVS Caremark to pay $2.25 million to settle the charges.
These cases reaffirm the agencies' commitment to investigating and punishing improper data disposal practices, especially in light of high-profile media reports discovering sensitive consumer information in dumpsters and boxes left by the side of the road. In order to avoid these types of high-profile investigations, organizations should implement and enforce data retention policies and always destroy sensitive customer and employee data prior to disposal.
The company decided to base its culture on values such as integrity, mutual respect, work-family balance, fun and work ethic.
"This is the Rite Aid culture of the future," Orahood said.
And that's just not pie-in-the-sky optimism. The training program is to be duplicated at a soon-to-be-constructed Rite Aid customer center in Lancaster, Calif., and the program will be implemented at a third center planned for the Midwest.
"When you look at what's happening in the work force, retention is one of the biggest issues," said Mary Leavens, director of corporate training at Harford Community College. "So much time and energy go into finding the right people. Losing any of them always causes problems."
Retention could be a serious issue in Harford County, where there are about 50 distribution centers.
The training includes one week at the Rite Aid center, three weeks at Harford Community College, then two weeks of on-the-job-training back at the center.
The training takes place five days a week, eight hours a day. The program began at the center in April, though it did not open for warehouse operations until September, and is mandatory for managers and "hourly partners," as workers are called.
The first week is for orientation, and workers learn the value of team-building, communication and leadership.
During sessions at HCC, workers receive training in the logistics of distribution systems in a curriculum developed by the company and HCC. They study warehouse management systems, receiving and storing operations, merchandise shipping and OSHA safety requirements. The workers are tested every day.
Retention
Due to the strength of our business and the return of our customers to shop in our stores, we are able to provide our associates with an excellent benefits package. Once you satisfy specific eligibility requirements, you have the opportunity to participate in a variety of Rite Aid benefits that feature:
Health Plan
Dental Plan
Vision Discount Plan
Prescription Plan
Basic Life Insurance
Supplemental Life and AD&D Insurance
Dependent life insurance
Flexible Spending Accounts
Vacation
Paid Holidays
Bereavement Leave
Disability Program
Employee Assistance Program
401(k) Plan with Company Match
Stock Purchase Plan
Associate Discount
Credit Union
Direct Deposit
Jury Duty Compensation
Work Life Initiatives
Rite Aid began in 1962 as a single store opened in Scranton, Pennsylvania called Thrif D Discount Center. After several years of growth, Rite Aid adopted its current name and debuted as a public company in 1968. Today, Rite Aid is publicly traded on the New York Stock Exchange under the ticker RAD. Rite Aid reported total sales of USD $24.3 billion in fiscal year 2008. In 2008, its market capitalization dropped to under $500 million. As of 25 February 2010, the market capitalization of Rite Aid was about $1.3 billion.
Equal Opportunity Employer
Rite Aid is an equal opportunity employer and is committed to cultivating a diverse work environment where individual differences are appreciated and respected. It is the Company's policy, through responsible management, to recruit, hire, train, and promote associates regardless of their race, color, national origin, religion, sex, sexual orientation, disability, age, or any other basis protected by state or federal law. The objective of this policy is to ensure conformity with the principles of equal opportunity employment when making employment decisions and administering compensation, benefits, transfer and social recreational programs. Rite Aid prohibits unlawful retaliation against any person who reports harassment or discrimination.
On July 27th, the Department of Health and Human Services (HHS) and the Federal Trade Commission (FTC) announced settlements with Rite Aid Corporation for the improper disposal of personal information -- including prescriptions and labeled pill bottles containing identifiable information about Rite Aid customers, and employment applications -- in publicly accessible dumpsters behind Rite Aid stores in a number of cities across the country. In addition to improperly disposing of personal information, HHS and the FTC also claimed that Rite Aid failed to:
implement policies and procedures to dispose securely of such information, including, but not limited to, policies and procedures to render the information unreadable in the course of disposal;
adequately train employees to dispose securely of such information;
use reasonable measures to assess compliance with its established policies and procedures for disposing such information; and
employ a reasonable process for discovering and remedying risks to such information.
Under the HHS resolution agreement, Rite Aid agreed to pay $1 million to settle potential violations of the Health Insurance Portability and Accountability Act Privacy Rule. Rite Aid also agreed to distribute policies and procedures for protecting protected health information (such as the patient information improperly disposed in this case), train employees on the policies and procedures, monitor for violations, sanction employees who commit violations, and hire a third-party auditor to conduct periodic compliance reviews. The HHS resolution agreement applies for three years.
In its consent order, the FTC accused Rite Aid of committing both unfair and deceptive trade practices in violation of Section 5 of the FTC Act. Specifically, the FTC claimed that Rite Aid committed unfair trade practices when it failed to employ reasonable and appropriate measures to prevent unauthorized access to the personal information, and committed deceptive trade practices when it recklessly disposed of customers' health information despite making claims it would responsibly protect such information.
In addition to the penalties imposed by HHS, the FTC ordered Rite Aid to cease misrepresenting its information security practices to consumers, establish a comprehensive information security program reasonably designed to protect the security, confidentiality, and integrity of personal information collected from or about consumers and employees, and obtain biannual audits of its information security program for the next 20 years.
These settlements were similar to those imposed on CVS Caremark in February of 2009, which also stemmed from a joint investigation of the HHS and the FTC into reports of improperly disposed patient and employee information into publicly accessible dumpsters. While many of the procedural requirements of the settlements are similar, in that case HHS required CVS Caremark to pay $2.25 million to settle the charges.
These cases reaffirm the agencies' commitment to investigating and punishing improper data disposal practices, especially in light of high-profile media reports discovering sensitive consumer information in dumpsters and boxes left by the side of the road. In order to avoid these types of high-profile investigations, organizations should implement and enforce data retention policies and always destroy sensitive customer and employee data prior to disposal.
The company decided to base its culture on values such as integrity, mutual respect, work-family balance, fun and work ethic.
"This is the Rite Aid culture of the future," Orahood said.
And that's just not pie-in-the-sky optimism. The training program is to be duplicated at a soon-to-be-constructed Rite Aid customer center in Lancaster, Calif., and the program will be implemented at a third center planned for the Midwest.
"When you look at what's happening in the work force, retention is one of the biggest issues," said Mary Leavens, director of corporate training at Harford Community College. "So much time and energy go into finding the right people. Losing any of them always causes problems."
Retention could be a serious issue in Harford County, where there are about 50 distribution centers.
The training includes one week at the Rite Aid center, three weeks at Harford Community College, then two weeks of on-the-job-training back at the center.
The training takes place five days a week, eight hours a day. The program began at the center in April, though it did not open for warehouse operations until September, and is mandatory for managers and "hourly partners," as workers are called.
The first week is for orientation, and workers learn the value of team-building, communication and leadership.
During sessions at HCC, workers receive training in the logistics of distribution systems in a curriculum developed by the company and HCC. They study warehouse management systems, receiving and storing operations, merchandise shipping and OSHA safety requirements. The workers are tested every day.
Retention
Due to the strength of our business and the return of our customers to shop in our stores, we are able to provide our associates with an excellent benefits package. Once you satisfy specific eligibility requirements, you have the opportunity to participate in a variety of Rite Aid benefits that feature:
Health Plan
Dental Plan
Vision Discount Plan
Prescription Plan
Basic Life Insurance
Supplemental Life and AD&D Insurance
Dependent life insurance
Flexible Spending Accounts
Vacation
Paid Holidays
Bereavement Leave
Disability Program
Employee Assistance Program
401(k) Plan with Company Match
Stock Purchase Plan
Associate Discount
Credit Union
Direct Deposit
Jury Duty Compensation
Work Life Initiatives
Last edited: