Pet-Friendly Perks for Employees Come With Liability Risks

Companies are adopting a wide variety of pet-friendly policies to boost morale and attract top talent, a growing shift in workplace culture that carries some litigation risks if not implemented properly.

The prominence of employee pet benefits increased in the wake of the Covid-19 pandemic, when pet ownership soared as people turned to animal companions for emotional support and to alleviate loneliness and anxiety. Companies like Amazon.com Inc., Google, and Uber Technologies Inc. allow the occasional “bring your pet to work” days, while others like Workday Inc. subsidize shelter pet adoption fees.

Leave to care for a pet is one emerging job perk, with New York City last month proposing guaranteed paid time off for workers to care for pets or service animals. Veterinary insurance and pet bereavement leave are also springing up.

There’s no one-size-fits-all approach to adopting pet benefits, and some pose potential legal pitfalls, employment attorneys said. Those liability risks can range from liability for pet-related injuries to compliance with health and safety regulations, and employers should carefully assess the legal implications of their policies and plans, they said.

For example, allowing dogs in the workplace requires careful consideration, as some employees may have allergies or phobias that could lead to discomfort or health issues, said Amy Epstein Gluck, a partner at Pierson Ferdinand LLP. These policies can also create liability risks for companies if incidents result in lawsuits or workers’ compensation claims.

“The first factor employers have to consider is the actual workplace” structure because certain policies might be unworkable for those in public-facing settings, such as retailers, she said.

Recruitment Impact

Pet-friendly workplace culture influences job seekers and employees, especially younger workers, in their decisions to accept or stay at a company, as they view pets as integral family members, according to recent reports. Millennials and Gen Zs represent the largest demographic of pet owners, several studies have found.

In a June 2024 study, 82% of over one thousand HR professionals from the US and Canada surveyed reported that being pet-friendly aids in recruiting and retaining top talent. They also noted experiencing firsthand the mental health benefits of pet ownership for employees, according to the report by pet insurance provider OnePack by PetPartners and the Human Animal Bond Research Institute.

But the “relationship between pet-friendly policies and workplace outcomes is complex” because most available data make it “difficult to establish direct cause-and-effect relationships,” said Shawn Quan, a University of Washington PhD candidate and member of a research team focused on animals in the workplace. “Much of the existing research focuses on the general effects of being a pet owner rather than the specific impact of company pet policies.”

Pet Leave

The New York City Council’s recently proposed pet leave measure marked a significant shift in employment law.

The legislation (Int. 1089-2024), if enacted, would make New York City one of the few local jurisdictions in the US with such paid time off mandates covering care for animals. A local sick leave ordinance the Emeryville City Council in California passed in 2015 covers time off to care for an employee’s service or guide dog.

New York City’s current paid sick leave law requires companies with 100 or more employees to let workers earn up to 56 hours per year of paid sick time. Smaller employers must allow 40 hours per year.

The recent proposal goes further by covering both a service animal and “an animal kept primarily for companionship in compliance with all applicable laws,” according to the bill’s text. The measure is still in the early stages, and its fate remains unclear. Legal observers said it could influence legislation in other cities if passed.

In the private sector, pet leave is rare, but some companies like Mars Petcare, Mparticle, and Rover offer paid time off for pet-related responsibilities.

Animals at Work

Liability issues about animals in the workplace often arise in the employee accommodation context. Under the Americans with Disabilities Act, employers must accommodate disabled workers who require service dogs to help them perform their essential job functions, and engage in an interactive process when assessing such requests.

Courts have ruled that disabled workers may lack valid claims of discrimination if their service dog poses a direct threat to the health and safety of others. The US Court of Appeals for the Sixth Circuit upheld this view last year when it ruled against a University of Michigan-Flint nursing student, who sued a hospital under the ADA because it revoked permission for her service dog, Pistol, to accompany her during her clinical rotations. Pistol, she said, helped with her panic disorder.

But the US Equal Employment Opportunity Commission recently said—in an ADA discrimination settlement with Hobby Lobby Stores Inc.—that employers cannot reject service animals or any other reasonable accommodation based on unfounded assumptions regarding safety.

Pilot a Good Start

Starting with a pilot program is a good first for companies considering a pet-friendly workplace policy as it allows them to assess the real impact of having pets in the office, including any unexpected challenges or risks, said Peter Wozniak, a partner at King & Spalding LLP.

A small-scale trial run also allows employers to gather feedback from workers and observe how pets affect productivity, safety, and overall morale, he said.

Companies must develop clear and thorough written policies from the outset that lay out pet owners’ responsibilities and guidelines for handling any incidents, such as pet-related injuries or disruptions, Wozniak added.

Gluck suggested that the policy should require that pets be vaccinated and toilet trained, and “there should be standards of conduct allowing the employer to revoke the right to have the pet in the workplace if it’s disruptive.”

“Employers need to be careful, because bringing your dog to work because you want to versus bringing the dog to work as an accommodation are two different things,” Gluck said.