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Wife's boss is on a power trip. Is this legal?
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Sure, but that assumes this manager would be happy with generic "medical stuff" as an answer...
Worst comes to worst, they could ask for a doctor's note. And doctors notes are always pretty generic and basically say "yup, they can't work." But if the manager does ask for Dr's notes, they need to apply the policy equally to all employees.
It's usually a HIPAA violation if an employer asks for specifics about a medical issue.
Source: I'm a people manager who has had to go through a bunch of trainings about these laws.