Human Resources
Butterball settles EEOC allegation it was liable for vendor’s failure to process ADA leave request
HR DiveOctober 18, 20263 min read
Executive Take
Outsourcing leave administration does not outsource legal liability. If your vendor drops an ADA request, your company still owns the lawsuit.
Executive Summary
The EEOC alleged Butterball was liable when its third-party vendor failed to process an employee's ADA leave request. Butterball settled the case. An EEOC attorney said employers cannot delegate legal compliance responsibility to a third-party administrator.
Why It Matters
HR leaders who outsource leave management to third-party administrators need to audit those vendors now, not after a complaint. This case shows the EEOC will hold the employer responsible for a vendor's mistake.
Bizquad Perspective
Most HR leaders treat vendor contracts as risk transfer, but this case proves the EEOC sees the employer as the only party that matters.