Fort Worth judge rules religious businesses can be shielded from LGBTQ discrimination claims

A Fort Worth federal judge has ruled that for-profit businesses with sincere religious beliefs can be protected from LGBTQ discrimination claims, including exceptions to sexual orientation and gender identity protection previously granted by the US Supreme Court.

US District Judge Reed O’Connor’s ruling on Sunday found that Braidwood Management Inc., a Christian healthcare operator in Katy, can avoid LGBTQ anti-bias protections under the Religious Freedom Restoration Act and the First Amendment. The anti-bias protection arises from Title VII of the Civil Rights Act of 1964.

O’Connor also said religious nonprofits like basement-based Bear Creek Bible Church can refuse to hire and fire LGBTQ workers under Title VII religious exemptions. Under Title VII, an employer can apply for a religious exemption if he can demonstrate that it is a “religious body, association, educational institution or society”.

Braidwood and Bear Creek are suing the U.S. Equal Employment Opportunity Commission following the landmark 2020 Boston Supreme Court ruling against Clayton County, Georgia, finding Title VII applies to LGBTQ workers.

What the Bostock decision did not define was whether and how religious corporations could be exempted from such provisions. Braidwood and Bear Creek sought to consolidate Title VII religious exemptions for themselves and “those in a similar position” so that they could make employment decisions based on religious beliefs.

“The Supreme Court has not decided to what extent companies owned by people with strong religious beliefs might be exempt from this general rule,” said Scott McElhaney, an attorney in the Dallas office of Jackson Walker LLP. “This statement from Judge O’Connor is the first decision on the matter.”

Braidwood employs around 70 people who work for one of three healthcare companies owned by Stephen Hotze, a doctor and conservative activist. Hotze does not allow employees to engage in “homosexual behavior or gender-contrary behavior of any kind,” according to the court records.

In addition, Braidwood does not recognize same-sex marriage or grant any benefit to an employee’s same-sex partner because Hotze believes that doing so would “make him complicit in sin and violate his or her righteous religious beliefs.”

Bear Creek, a non-denominational church, required its staff to live according to the Bible on questions of sexuality and gender. The Church also does not recognize same-sex marriage and denies benefits to same-sex partners of an employee.

O’Connor’s decision means both companies can continue these employment practices without fear of liability for LGBTQ discrimination.

The judge also ruled that guidelines regarding sexual behavior, dress code and toilets in the workplace do not violate Title VII, but federal law does cover guidelines regarding “bisexual behavior” and hormone therapy.

Churches have long been exempt from Title VII, McElhaney said, which means O’Connor’s decision is not a landmark in that regard.

“The part that will have a broader impact is ruling on religious corporations owned by people with strong, sincere religious beliefs,” McElhaney said.

The litigation on this issue is likely to be far from over. O’Connor’s judgment is open to appeal in a federal appeals court, a process that can take months or years.

Mitchell Law and Fillmore Law Firm represented Braidwood and Bear Creek. The Ministry of Justice represented the EEOC.

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