In Powerback Rehabilitation, LLC v. Kansas Department of Labor, (KS Sup. Ct., Sept. 26, 2025), the Kansas Supreme Court in a 4-2 decision, upheld a Kansas statute (K.S.A. 2023 Supp. 44-663) that requires employers to grant religious exemptions from any Covid vaccine mandate without inquiring into the sincerity of an employee's asserted religious belief. Powerback was subject to federal Medicaid rules that required it to impose a Covid vaccine mandate on its employees. Medicaid incorporated into its rules federal Title VII standards which allow employers to question the sincerity of an employee's religious belief. The Supreme Court rejected the trial court's holding that the Kansas statute was pre-empted by federal law. The Kansas Supreme Court said in part:
Powerback's argument is simple and alluring at first blush. It simply points out that "federal law contemplates an inquiry into the sincerity of an employee's purported religious beliefs. [K.S.A. 2023 Supp. 44-663] specifically disallows this same inquiry. The Vaccine Act thus forces Powerback to make an impossible decision between compliance with Kansas law or compliance with federal law." But this framing of the problem incorporates a deft sleight-of-hand. Because federal "contemplation" is not a mandate. That is, nowhere in the federal regulations ... is an employer subject to the Vaccine Mandate required to inquire into the sincerity of an employee's religious beliefs. At most, the employer is permitted to make this inquiry....
Thus, Powerback could have granted a religious exemption to Keeran that was consistent with both Title VII (as incorporated into the Vaccine Mandate) and with K.S.A. 2023 Supp. 44-663 by simply not inquiring into Keeran's religious sincerity.
The dissent rejects this conclusion on the grounds that Title VII's allowance of what the dissent characterizes as a "meaningful interactive process with the employee" is actually a "federally granted right" which state law cannot "nullify" or "forbid" an employer from exercising.... If this were true, the dissent would be correct. But it is not true. Indeed, the dissent has dramatically misunderstood—and in fact inverted— Title VII. The statutory framework adopted by Congress in Title VII does not define or create any genuine "rights" in employers. It is instead entirely about protecting and preserving the rights of employees not to be discriminated against....
Justice Stanridge, joined by Justice Rosen, filed a dissenting opinion, saying in part:
Under longstanding Supremacy Clause doctrine, state law must yield where compliance with both state and federal law is impossible, or where state law frustrates Congress' objectives. K.S.A. 2023 Supp. 44-663 fails on both counts....
Title VII embodies a carefully calibrated framework, one that protects religious exercise while preserving the ability of employers to safeguard legitimate operational and safety interests. K.S.A. 2023 Supp. 44-663 is incompatible with that framework in two respects. It makes compliance with both state and federal law impossible, and it obstructs the objectives of Congress by replacing a balanced system with one of absolute deference. Either defect alone is sufficient for preemption; together, they leave no room for doubt. Because Kansas has attempted to supplant federal law with a contradictory regime, I would hold K.S.A. 2023 Supp. 44-663 is preempted by the Supremacy Clause.
Kansas City Star reports on the decision.