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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.


NLRB Issues Final Rule on Joint-Employer Status

On October 26, 2023, the National Labor Relations Board (NLRB) issued its final rule on determining joint-employer status, departing from its prior 2020 standard. The final rule provides that two or more entities may be considered “joint employers” if each entity has an employment relationship with employees and if the entities share or codetermine one or more employees’ essential terms and conditions of employment. The final rule goes into effect on December 26, 2023, and will only be applied to cases filed after the effective date.

WEBINAR SERIES RECAP | Employment & Labor

BMD Partner and Co-Chair of the Employment & Labor Law Group, Bryan Meek, presented this four-part webinar series on trending topics in employment law.

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Proposed changes to the No Surprises Act’s independent dispute resolution (IDR) process were recently issued by the Department of Health and Human Services, Department of Labor, Department of Treasury, and the Office of Personnel Management. The October 27, 2023, proposed rule overhauls the current Federal IDR process in an effort to create efficiencies and reduce delays relating to eligibility determinations and address feedback from interested parties and certified IDR entities.

What Inpatient Behavioral Health Providers Need to Know About ODM's New Draft Rule for Reimbursements

Ohio Department of Medicaid (ODM) recently released a draft rule that will transform how inpatient behavioral health services are reimbursed for some hospitals. ODM will migrate inpatient payments for behavioral health and substance use disorder services (BH/SUD) provided by freestanding psychiatric hospitals (FSPs) from the APR-DRG payment methodology to a per diem payment methodology derived from the APR-DRG system.