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An undue hardship occurs when making accommodations for individuals with disabilities imposes a significant difficulty or expense on an employer. An employer is required to determine whether specific reasonable accommodation would result in an undue hardship on a case-by-case basis.

"Undue hardship," which focuses on the resources and circumstances of specific employer in relation to expense or difficulty of providing a specific accommodation, refers to a significant difficulty or expenditure. In addition to financial hardship, "undue hardship" also refers to appropriate concessions that are excessively extensive, significant, or disruptive, or those that fundamentally change the nature or way organization operates.

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