News Notes: Court Affirms Religious Employers Are Exempt From Bias Laws

The California Supreme Court has clarified that nonprofit, religious entities may be exempt from state anti-discrimination laws regardless of how they are incorporated. A nurse at Mercy Healthcare Sacramento sued the hospital for sex and race bias after she was passed up for a promotion. Mercy asked to have the case thrown out, relying on a provision in the state Fair Employment and Housing Act exempting any employer that is “a religious association or corporation not organized for private profit.” The Supreme Court agreed with Mercy that it was irrelevant whether the hospital was organized under California’s special Nonprofit Religious Corporation Law as long as the entity has a sufficient religious character. Another pending case, however, could limit this exemption to religious bias claims. This would bring California in line with existing federal law, which allows religious organizations to discriminate on the basis of religion, but not race, sex, national origin, etc.