This month’s key employment law cases address the religious organization exemption under Title VII of the Civil Rights Act and arbitration agreements.
Garcia v. Salvation Army, 918 F.3d 997 (9th Cir. 2019)
Summary: Defendant, a religious nonprofit organization, fell within the religious organization exemption of Title VII because although a portion of its annual income comes from the exchange of goods and services, it gives goods and services away or charges nominal fees.
Facts: Plaintiff was hired by defendant Salvation Army as an assistant to the pastor. A new pastor took over and reassigned plaintiff to a social services coordinator position. Plaintiff and her husband stopped attending the Salvation Army’s religious services, but she continued her work as social services coordinator. Two years later, a client filed a complaint against plaintiff. The pastor refused to share the complaint with plaintiff, claiming it was confidential. Plaintiff filed an internal grievance against the pastor, claiming she was discriminated against, excluded, and isolated at work since leaving the church. Plaintiff filed complaints with the Equal Employment Opportunity Commission (“EEOC”) and Arizona state authorities for religious discrimination and retaliation. Following a lengthy period of medical leave, defendant terminated plaintiff after she failed to report to work despite being cleared by her doctor without restrictions. Plaintiff filed a second complaint with the EEOC and state authorities alleging that, by declining to disclose the client complaint, defendant failed to accommodate her disability. Plaintiff then filed two lawsuits against defendant for violation of Title VII of the Civil Rights Act of 1964 (“Title VII”), and violation of the Americans with Disabilities Act (“ADA”), which were consolidated. Plaintiff alleged that defendant subjected her to a hostile work environment because she stopped attending religious services, and retaliated against her for filing a grievance complaining of religious-based mistreatment. Plaintiff further alleged that the stress from the hostile work environment caused her to suffer health problems, which defendant failed to accommodate. The federal district court granted summary judgment in favor of defendant, holding that Title VII’s religious organization exemption protected defendant from suit, even if it failed to timely assert the defense, because the defense is jurisdictional and cannot be forfeited. The court...
