1 of 29

What You Need to Know About Employment Law

Key Issues to Watch

2 of 29

Lorrie Coffey, MJ-LEL, SHRM-SCP, SPHR

Find the slides and resources at

Horizonpointconsulting.com/whatsup

3 of 29

4 of 29

5 of 29

6 of 29

7 of 29

8 of 29

9 of 29

10 of 29

11 of 29

AMERICANS WITH DISABILITIES ACT

EEOC v. Butterball: Third-Party Admin Does Not Erase Employer Liability

Consent decree takeaway: vendor-managed leave and accommodation processes still need employer oversight.

1

What Happened

• Employee requested intermittent leave for cancer treatment and recovery.

• Request was routed to a third-party benefits administrator.

• Leave was not granted; absences counted under attendance policy.

2

What the Court Entered

• Case resolved through a signed two-year consent decree.

• $230,000 plus ADA process changes, liaison role, training, reports.

• Important note: not a litigated merits ruling.

3

Why Employers Should Care

• An employer cannot delegate its ADA compliance obligation.

• Same vendor-risk logic can arise with FMLA, PWFA, leave, and attendance administration.

• Audit handoffs before discipline or termination.

ACTION STEP

When a vendor handles leave or accommodation paperwork, keep an internal owner who confirms: request received, interactive process completed, protected absences coded correctly, and discipline paused until compliance review is complete.

KEY TAKEAWAY:

Vendor can administer the process. Employer owns the compliance decision.

12 of 29

13 of 29

PWFA in Action: What Recent Cases Mean

POLARIS INDUSTRIES

Pregnant employee alleged attendance points and overtime limits tied to pregnancy-related absences.

Attendance and productivity rules still need exceptions when a pregnancy-related limitation triggers the PWFA.

LAGO MAR BEACH RESORT

Employee alleged she was denied a six-week leave accommodation following a stillbirth and then terminated.

Pregnancy, childbirth and related medical conditions can require leave; do not treat the request as ordinary attendance.

PERMIACARE

Arbitrator found the employer failed to accommodate pregnancy-related limits involving travel and work location.

Consider temporary changes to travel, schedule or location when they are effective and do not create undue hardship.

FAMILY DOLLAR

EEOC alleges a pregnant employee was fired after requesting urgent medical leave and could not immediately provide a doctor’s note.

Avoid rigid documentation rules. Some PWFA requests require prompt action before paperwork is available.

AMAZON - NEW

Proposed nationwide class action alleges Amazon delayed or denied basic accommodations and penalized pregnancy-related breaks or absences.

Speed matters. Respond promptly, consider interim accommodations, and do not let attendance systems penalize protected needs while a request is pending.

CASE / ISSUE

WHAT IT INVOLVED

WHAT IT MEANS FOR EMPLOYERS

THE BOTTOM LINE:

Treat pregnancy-related accommodation requests as an active process - respond promptly, individualize the solution, and make sure attendance, leave and documentation systems do not undermine the accommodation.

14 of 29

15 of 29

FEDERAL

Wage & Hour Watch: Two FLSA Proposals to Track

Introduced in September 2026; neither is current law unless enacted.

1

Thirty-Two Hour Workweek Act

H.R. 10323 | Sept. 8, 2026

PROPOSAL - NOT CURRENT LAW

• Would reduce the FLSA overtime threshold for nonexempt employees from 40 to 32 hours/week.

• Phased in: 38, 36, 34, then 32 hours.

• Adds daily overtime: over 8 hours at 1.5x; over 12 hours at 2x.

• Reintroduced proposal; currently no bipartisan cosponsors.

2

Protecting Workers' Wages from Medical Debt Act

H.R. 10373 | Sept. 14, 2026

PROPOSAL - NOT CURRENT LAW

• Would amend the FLSA to prohibit wage garnishment for medical debt.

• Eliminates current federal allowance for garnishing wages for this debt type.

• Bars courts and states from making, executing, or enforcing conflicting orders.

• Effective date would be 6 months after enactment.

EMPLOYER TAKEAWAY:

No action required yet, but these proposals signal continued scrutiny of pay practices, schedules, and payroll deductions.

Sources:�- H.R. 10323, Thirty-Two Hour Workweek Act, introduced Sept. 8, 2026, GovInfo: https://www.govinfo.gov/app/details/BILLS-119hr10323ih�- Bill text for H.R. 10323 provides weekly overtime after 32 hours, daily overtime over 8 hours at 1.5x, daily overtime over 12 hours at double time, and phase-in thresholds of 38, 36, 34, and 32 hours.�- Rep. Mark Takano press release, Sept. 8, 2026, states the bill was reintroduced and first introduced by Rep. Takano in 2021: https://takano.house.gov/newsroom/press-releases/rep-takano-sen-sanders-reintroduce-32-hour-workweek-act�- H.R. 10373, Protecting Workers' Wages from Medical Debt Act, introduced Sept. 14, 2026, GovInfo: https://www.govinfo.gov/app/details/BILLS-119hr10373ih�- Bill text for H.R. 10373 would prohibit wage garnishment for medical debt, bar courts/states from enforcing contrary orders, repeal FLSA section 10, and take effect six months after enactment.�Note: Slide treats both items as pending proposals, not current law.

16 of 29

17 of 29

18 of 29

19 of 29

20 of 29

21 of 29

21

FEDERAL

N.C. Detective Agency: Religious Leave Is Not Just Scheduling Preference

Religious accommodation requests require an interactive process - not just ordinary PTO or scheduling review.

1

What Happened

• Employee requested to be excused from work for a Muslim religious holiday.

• Request was denied; employer was aware of the religious need.

• EEOC said the company did not engage in the required interactive process.

2

EEOC Resolution

• Conciliation agreement: $65,231 in back pay and compensatory damages.

• Requires written policies, procedures for accommodation requests, training, and workplace notice.

• Resolution was without admission of liability.

3

Standard to Remember

• Title VII requires reasonable religious accommodation unless undue hardship applies.

• After Groff, undue hardship means substantial increased costs in relation to the business.

• No longer rely on the old more-than-de-minimis shorthand.

ACTION STEP

Train supervisors not to deny religious holiday or Sabbath-related schedule requests as routine preference conflicts. Pause discipline until HR confirms the interactive process and undue-hardship analysis are complete.