Don’t Cook Your Turkey! Butterball Case Puts Employers on Notice Regarding Leave Vendors

By Kayla E. Snider - Skoler Abbott P.C.

May 27, 2026

Many employers outsource various aspects of their HR functions, which sometimes include administration of their leave policies and leave tracking.  If you outsource your leave administration to a third-party vendor, did you know you could still be on the hook for compliance missteps?  While leave vendors can streamline processes and improve consistency, they do not replace an employer’s ultimate legal responsibility for compliance.  From FMLA and ADA requirements to state and local leave laws, employers remain accountable for ensuring policies are applied correctly, deadlines are met, and employee rights are protected. Missteps—even those by the third-party vendor—can expose the employer to liability.  

The EEOC’s recent lawsuit against Butterball, LLC serves as a clear reminder to employers that failure to properly manage employee leave and accommodation requests can result in significant legal exposure.  In today’s complex and evolving leave landscape, partnering with a third-party vendor is not a “set it and forget it” solution—it’s just one part of a broader compliance strategy that still requires active employer involvement.

What Happened with Butterball? 

According to the EEOC’s April press release, a long-term employee informed Butterball of her breast cancer diagnosis and requested intermittent leave to undergo chemotherapy treatments.  Butterball referred her to its third-party benefits administrator. This is where, for lack of a better phrase, Butterball’s turkey got cooked. 

The EEOC alleges that the third-party administrator never opened a leave request.  Instead, the employee was shuffled between the Supplemental Health Benefits department and the Leave Management department, all the while accruing attendance points for every single treatment-related absence, even after submitting doctor’s notes.  When the employee returned to work on September 5, 2023, she was given a final attendance warning.  She worked the next day but then missed several more shifts for treatment.  On September 11, the employee was removed from the schedule.  Butterball terminated her employment, for attendance reasons, on September 13 but, according to the EEOC, no one told the employee and she only found out when she reported to work on September 18 and learned her badge would not scan.  At that point, an HR representative confirmed the employee had been terminated and rejected yet another doctor’s note the employee attempted to present. 

Employer Responsibility Cannot Be Delegated

One of the most important takeaways for employers is this: even if you outsource leave administration, you cannot outsource compliance.  In the words of EEOC Regional Attorney Melinda C. Dugas, “Even when an employer hires a third-party benefits administrator, the employer remains responsible for complying with anti-discrimination law.”  If a third-party administrator fails to process or approve a leave request correctly, employers cannot shift the blame and will remain fully liable. 

Practical Steps for Employers

To mitigate risk, employers should take a proactive, system-wide approach.  Ensure the employer’s HR department and the third-party administrator coordinate regarding approved leave, return dates, and work schedules under all leave programs.  Regularly review third-party administrator’s processes and make sure to follow-up and check in with them regarding unresolved or delayed requests.  Review and revise attendance and leave policies to allow for exceptions, as required by law.  For any termination decision where an employee has requested and/or received job-protected leave, make sure you have strong documentation for the termination decision and that you consult with counsel. 

If you or your organization have any questions about handbook policies, FMLA, PFML, ADA, or any other form of job-protected leave, consider contacting experienced employment counsel.

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