Despite recent court decisions, questions remain for religious employers

The U.S. Supreme Court issued two decisions recently that were welcome news for religious organizations and other employers that rely on religious convictions as they conduct their business. One decision bolstered the "ministerial exception," a doctrine stemming from the First Amendment that prevents government interference in religious organizations' ability to hire and fire employees. The other decision says certain private employers with religious or moral objections to birth control can exclude contraception coverage in their employer-sponsored health plans even though the Affordable Care Act (ACA) mandates such coverage for most employers.

The two rulings, both 7-2 decisions issued on July 8, give employers new guidance, but more questions may yet surface.

Broadening of ministerial exception

The Supreme Court considered two cases involving teachers at Catholic schools—Our Lady of Guadalupe School v. Agnes Morrissey-Berru and St. James School v. Biel. Both teachers claimed discrimination, one age discrimination in violation of the Age Discrimination in Employment Act (ADEA) and the other disability discrimination in violation of the Americans with Disabilities Act (ADA).

Both schools were granted summary judgment (dismissal without a trial) because the lower court decided the schools qualified for the ministerial exception even though neither teacher held any credential as a minister or had any special religious training.