MT. OLIVE, NORTH CAROLINA — Butterball, LLC will pay $230,000 to settle a disability discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission. The settlement resolves allegations that the poultry processing company denied accommodation for cancer treatments and fired an employee because of her disability.

The case centers on a long-term employee at the company’s facility in Mt. Olive, North Carolina, who informed Butterball of her cancer diagnosis and need for intermittent leave to receive chemotherapy and recover from treatments. Butterball referred the employee to its third-party benefits administrator, but the leave was never granted.

The employee accrued attendance points for cancer-related absences and was fired for violating the company’s attendance policy. The alleged conduct violates the Americans with Disabilities Act, which requires employers to provide reasonable accommodations for qualified individuals with disabilities, absent undue hardship, and prohibits discrimination because of disability.

The EEOC attempted to reach a pre-litigation settlement through its administrative conciliation process before filing suit. After those efforts failed, the agency filed suit in the U.S. District Court for the Eastern District of North Carolina under case number 5:26-cv-00202-FL.

Under the two-year consent decree, Butterball will ensure effective policies and procedures are in place to govern the receipt and processing of requests for reasonable accommodations under the ADA. The agreement also requires the company to provide training on the ADA to human resources and benefits employees.

"Employers that hire third-party benefits administrators must ensure that effective policies and procedures are in place to meet the employer’s statutory obligations under federal workplace discrimination laws," said Melinda C. Dugas, Regional Attorney for the EEOC Charlotte District. "An employer cannot delegate its responsibility for complying with the ADA."

Samuel Williams, Trial Attorney for the EEOC Charlotte District, emphasized the broader legal principles at stake in the resolution. "Federal law guarantees qualified individuals with disabilities an equal opportunity to work," he said. "The EEOC is committed to holding employers accountable when they violate those rights and pursuing all appropriate relief for victims of discrimination."

Why It Matters

This settlement underscores the legal obligations of employers who use third-party administrators to manage employee benefits. The EEOC clarified that companies cannot delegate their statutory responsibilities under the Americans with Disabilities Act to external vendors. The consent decree mandates specific procedural changes at Butterball’s Mt. Olive facility, including multilingual policy distribution and dedicated liaison support for accommodation requests.

Timeline

The employee informed Butterball of her cancer diagnosis and requested intermittent leave for chemotherapy and recovery. Butterball referred the request to a third-party benefits administrator, but the leave was not granted. The employee subsequently accrued attendance points for cancer-related absences and was terminated for violating the attendance policy.

The EEOC attempted pre-litigation settlement through administrative conciliation. After those efforts failed, the agency filed suit in the U.S. District Court for the Eastern District of North Carolina. The case was resolved through a two-year consent decree requiring Butterball to pay $230,000 and implement new workplace policies.

What's New

Butterball, LLC has agreed to pay $230,000 and enter into a two-year consent decree to settle the disability discrimination lawsuit. The agreement includes mandatory training for human resources and benefits employees on ADA compliance. Butterball must provide leave policies in English, Spanish, and Haitian Creole. The company is required to identify a liaison to assist employees with accommodation requests and submit periodic reports to the EEOC.

How Sources Differ

The verified facts present a single account from the U.S. Equal Employment Opportunity Commission and the associated court docket. No conflicting accounts from Butterball, LLC or other parties were provided in the source material. The EEOC press release and consent decree form the basis for all reported details regarding the settlement terms and the allegations of misconduct.