After doing some troubleshooting, we found that this issue only occurred when users had access to the Project Accounting alternate form for Employee Maintenance. If we granted access to the standard Microsoft Dynamics GP Employee Maintenance window instead, we did not have the problem (Administration Page-Setup-System-Alternate/Modified Forms and Reports ID).
The good news in all of this is that the bug is apparently resolved in GP 2010 Service Pack 4 which was recently released.
Christina Phillips is a Microsoft Certified Trainer and Dynamics GP Certified Professional. She is a supervising consultant with BKD Technologies, providing training, support, and project management services to new and existing Microsoft Dynamics customers. This blog represents her views only, not those of her employer.