As a business owner or employer, just what the hell is supposed to be done here?

[Captain Shays]

I read a little more, here's a thumbnail:

Woman has paprika allergy.

Woman needs service dog to, I'm assuming, sniff out paprika, before it gets close enough to her that she turns into Violet Beauregarde or some damn thing.

Woman is denied permission to bring service dog to work, because another worker is allergic to dogs, thus opening up another can of regulatory worms.

Woman with paprika allergy sues.

Woman is city worker so taxpayers will end up paying.

Employer is faced with a regulatory Catch22.

Do I get sued by the paprika allergy woman or the dog allergy woman?

You do the only thing you can do. Shut the doors to your business and fire everybody. Next month start up in another section of town under a different name. You can use this method in the event your employees try to make your business a union shop