intermittent leave, transfer to different job

WE have a supervisor that will need intermittent leave to care for a sick child possibly for the entire year according to her Doctor's cert. WE have decided to transfer her to another position where her absences won't be such a hardship for the company and to those she supervises that need someone at the job consistently. I know we are permitted to do this as long as we don't decrease her pay, benefits or require her to work a different schedule. THis employee is threatening to sue us as she feels she's being demoted. According to all my information she can be changed to a lower level job; again as long as we don't change her pay, benefits, schedule and or from a white collar to blue collar job. Please confirm this for me. If she refuses to do the new job may we terminate her? HELP!!

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