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Complicated
Based on what you present, it is hard to answer.
Everything that I see so far is that the boss is an... well a synonym for the anal sphincter.
Although not cool, being an a--hole is not illegal unless it leads to an illegal act.
I don't see an ADA complaint unless there is evidence that she is singled out for a disability.
There may be some labor issues with the denial of benefits.
Is there a chain-of-command, or is the boss the top dog?
Is this Day Care privately or publicly funded?
Is it a a single proprietorship, franchise, or corporately owned?
Those questions may suggest the best course of action.
Legal action is one, but so is finding another job - an internal complaint - a license complaint - etc.
They all start with good documentation and evidence.
However, she needs to carefully consider unintended consequences.
http://askdreric-schoolpsychologist.blogspot.com/
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