Recent decisions by the United State Supreme Court have strengthened the legal protections afforded to religious employers. However, these legal protections are not automatic – they can be waived if a religious employer adopts policies or engages in practices that are inconsistent with the new (and evolving) standards.

In the short term, Little Sisters of the Poor Saints Peter and Paul Home v. Pennsylvania protected religious organizations from being required to provide contraception under the Affordable Care Act (“ACA”) regulations. However, the decision left important questions unanswered, so litigation challenging the religious exemptions continue throughout the country.

In Our Lady of Guadalupe School v. Morrissey-Berru, the Court held that the First Amendment to the U.S. Constitution protects a religious organization’s freedom to hire and fire key personnel who play an essential role in the institution’s religious mission. The decision offers valuable guidance for faith-based employers seeking to understand the scope of the ministerial exception.

Prior IRS regulations required most exempt organizations to disclose the names and addresses of contributors who donated more than $5,000 (“substantial contributors”) on the Schedule B addendum to the organization’s IRS Form 990. Under new IRS regulations, only organizations exempt under Internal Revenue Code § 501(c)(3) or § 527 must include names and addresses of substantial contributors on Schedule B.

In the midst of the ongoing COVID-19 pandemic, Catholic schools face quite the task as they look to develop reopening plans for the fall that prioritize not only continuous education but, most importantly, the health and safety of school community members.