Court of Appeals Rules in Favor of Texas Business Owned by Christians, Shields it from LGBTQ Bias Claims

A federal appeals court in New Orleans, the 5th U.S. Circuit Court of Appeals, has ruled that a Christian-owned wellness center is exempt from the federal law that prohibits employers from discriminating based on sexual orientation and gender identity.

The three-judge panel unanimously determined that Braidwood Management, the operator of an alternative health center in Texas, cannot be sued by the U.S. Equal Employment Opportunity Commission (EEOC) regarding its policy to terminate employees who engage in homosexual or gender non-conforming behavior.

Circuit Judge Jerry Smith, writing for the majority, stated that without this exemption, the company would be compelled to “comply wholeheartedly” with a policy it views as morally wrong or “sinful”. This decision upholds the ruling made by U.S. District Judge Reed O’Connor in Fort Worth.

However, the court overturned Judge O’Connor’s ruling that would have allowed Braidwood to pursue the case as a class action representing other religious businesses. As a result, the exemption granted by the court now exclusively applies to Braidwood.

Circuit Judges Edith Clement and Cory Wilson joined Judge Smith in the decision, and all three judges were appointed by Republican presidents.

The U.S. Equal Employment Opportunity Commission (EEOC) and the plaintiffs’ attorney did not immediately respond to requests for comment.

Braidwood initiated the lawsuit against the EEOC following the agency’s updated enforcement guidance in 2021, which aligned with the U.S. Supreme Court’s ruling in Bostock v. Clayton County. The Supreme Court ruling determined that discrimination against gay and transgender workers constitutes unlawful sex discrimination under Title VII of the Civil Rights Act of 1964.

The company argued that its operations were guided by Christian principles, which included opposition to homosexuality and adherence to specific gender roles. It sought legal protection from the EEOC’s enforcement actions under the Religious Freedom Restoration Act, a federal law enacted in 1993 that limits the government’s ability to impose restrictions on religious freedom.

Additionally, the company has filed a separate lawsuit against the Biden administration concerning the Affordable Care Act’s requirement for health insurance plans, including those provided by employers, to cover preventive care services, such as HIV-preventing drugs. Braidwood contends that this requirement also violates its religious beliefs. In that case, Judge O’Connor ruled in favor of the company, although the order is partially suspended at the moment.