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Ministerial Exception to Title VII

Client Alert

On July 8, 2020, the United States Supreme Court issued a 7–2 decision holding that religious institutions, such as churches and religion-based schools, are shielded from employment discrimination lawsuits — including claims brought under Title VII of the Civil Rights Act of 1964. In doing so, the Court decided in favor of two Catholic schools facing legal discrimination claims from former teachers who alleged wrongful termination from their employment for age and disability.

The cases, Our Lady of Guadalupe School v. Morrissey-Berru and St. James School v. Biel, concern the ministerial exception to employment discrimination laws which protect religious employers from certain lawsuits brought by employees. The exception, arising from protections under the First Amendment, bars the government from interfering with religious institutions’ hiring and firing of clergy.

The ruling ultimately broadens the ministerial exception to Title VII by holding that school teachers who perform a religious role in the course of their employment fall within a ministerial exception from civil rights protections afforded to other employees. To be under the exception, the individual does not need to be ordained and religion duties need only to make up a small portion of their overall responsibilities.

Here, the expanded ministerial exemption means that employees at religious institutions who perform any religious role will no longer be able to sue for sexual harassment, equal pay, and other civil rights protections under Title VII of the Civil Rights Act.

For more information, contact Bryan Meek at bmeek@bmdllc.com.


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.