Wednesday, June 21, 2023

RFRA Requires Title VII Exemption for Business Operating on Christian Gender Beliefs

In Braidwood Management, Inc. v. EEOC, (5th Cir., June 20, 2023), the U.S. 5th Circuit Court of Appeals held that RFRA requires an exemption from the sex discrimination provisions of Title VII for a company that operates three related health and wellness businesses on the basis of Christian beliefs regarding sexual orientation and gender identity.  The court said in part: 

RFRA requires that Braidwood ... be exempted from Title VII because compliance with Title VII post-Bostock would substantially burden its ability to operate per its religious beliefs about homosexual and transgender conduct. Moreover, the EEOC wholly fails to carry its burden to show that it has a compelling interest in refusing Braidwood an exemption, even post-Bostock....

Although the Supreme Court may some day determine that preventing commercial businesses from discriminating on factors specific to sexual orientation or gender identity is such a compelling government interest that it overrides religious liberty in all cases, it has never so far held that....

Under RFRA, the government cannot rely on generalized interests but, instead, must demonstrate a compelling interest in applying its challenged rule to “the particular claimant whose sincere exercise of religion is being substantially burdened.”...

[T]he EEOC fails to carry its burden. It does not show a compelling interest in denying Braidwood, individually, an exemption. The agency does not even attempt to argue the point outside of gesturing to a generalized interest in prohibiting all forms of sex discrimination in every potential case. Moreover, even if we accepted the EEOC’s formulation of its compelling interest, refusing to exempt Braidwood, and forcing it to hire and endorse the views of employees with opposing religious and moral views is not the least restrictive means of promoting that interest.

Reuters reports on the decision.