Health Law Daily Wrap Up, HEALTH CARE EMPLOYMENT ISSUES—D. Md.: Religious discrimination claims brought by nurse against Adventist hospital dismissed, (Mar 11, 2021)

By Brian Craig, J.D.

A hospital owned and controlled by leaders of the Seventh-day Adventist Church is exempt from Title VII religious discrimination claims.

In an employment discrimination suit brought by a nurse against a hospital owned and controlled by leaders of the Seventh-day Adventist Church, the federal district court in Maryland has dismissed the religious discrimination claims. The court concluded that the mission of the hospital is marked by clear or obvious religious characteristics to qualify for a religious organization exemption under Title VII of the Civil Rights Act of 1964. While the court dismissed the religious discrimination claims, the court allowed the nurse to amend the complaint to clarify and expand on race and age discrimination claims asserted against the hospital (Manley v. Washington Adventist Hospital, March 9, 2021, Grimm, P.).

After being terminated by her employer, a registered nurse who worked at Washington Adventist Hospital sued the hospital and various individual defendants for employment discrimination claims. The nurse alleges that she was treated less favorably and fired from her position because she openly spoke of her religious faith as a "White Christian Woman" and member of the Traditional Holy Roman Catholic Faith and not a member of the Seventh Day Adventist Church. The nurse alleges that she felt humiliated and denigrated because of her faith, which caused her mental anguish and emotional distress. The court dismissed the claims against the individual defendants but allowed the other claims to proceed. Specifically, the nurse brought claims for racial and religious discrimination claims under Title VII of the Civil Rights Act of 1964 ("Title VII"), and a claim for age-based discrimination under the Age Discrimination in Employment Act (ADEA). The hospital filed a motion for partial summary judgment seeking to bar the religious discrimination claims. In response, the nurse requested leave to file an amended complaint.

Religious discrimination claims. The court first concluded that the hospital qualifies is exempt under Title VII as a religious organization for religious discrimination claims. Title VII has long included an exemption for religious organizations in certain circumstances. Specifically, 42 U.S.C. § 2000e-1(a) provides an exemption to "a religious corporation, association, educational institution, or society" with respect to the employment of individuals of a particular religion to perform work connected with the carrying on by such corporation, association, educational institution, or society of its activities. The court determined that if the hospital is a religious organization, it is exempt from the claims based on religious discrimination.

Here, the court found that the Washington Adventist Hospital is an operating division of Adventist HealthCare, Inc., which is organized as a non-profit, tax exempt religious corporation. The bylaws further support that the organization’s purposes are related to the ministry of the Church. Additionally, Adventist HealthCare, Inc. is effectively owned and controlled by leaders of the Seventh-day Adventist Church. The court found that the hospital’s mission is marked by clear or obvious religious characteristics, such that it is a religious organization for purposes of the religious organization exemption to Title VII. Because the hospital is exempt from the religious discrimination claims, the court granted partial summary judgment in favor of the hospital.

Amendment of complaint. The court granted leave for the nurse to amend her complaint to clarify and expand on the race and age discrimination claims but denied leave to amend the complaint to raise new claims for retaliation and a hostile work environment. The allegations based on religious discrimination do not demonstrate an exercise of protected activity and do not qualify for a retaliation claim. Because the hospital is exempt from claims based on religious discrimination, the nurse fails to present a viable hostile work environment claim. The court concluded that raising new claims for retaliation and a hostile work environment would be futile. Accordingly, the court granted, in part, the motion to amend the complaint.

The case is No. PWG-18-0053.

Attorneys: Terrance Jay Wikberg (Perkins Coie LLP) for Susan M. Manley. Jeffrey Jules Pargament (Pargament and Hallowell PLLC) for Adventist Healthcare, Inc.

Companies: Adventist Healthcare, Inc.

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