ILNews

Circuit examines ministerial exception

Michael W. Hoskins
January 1, 2008
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Two former administrators of Salvation Army thrift stores in Indianapolis are appealing their lawsuit against the non-profit organization on grounds that they were wrongly denied overtime pay in violation of a federal labor law.

But at issue in their federal case is whether they're classified as "employees" and whether a religious freedom exception barring courts from getting involved in church management can be applied to their employment law claims.

The 7th Circuit Court of Appeals heard arguments Wednesday in Steve and Lorrie Schleicher v. Salvation Army, No. 07-1333, a case from U.S. District Judge Richard Young in Indianapolis. The husband and wife, who'd worked for the non-profit religious organization since 1995, sued on grounds that they weren't receiving compensation for their work in operating an adult rehabilitation center and five Indianapolis area thrift stores in 2003 - often entailing more than 40 hours of work each week.

The Salvation Army refused to pay them unpaid wages, contending that the ministerial exemption - barring civil courts from reviewing employment disputes between a minister and a church normally applied through Title VII of the Civil Rights Act of 1964 - applies and blocks the court's jurisdiction. Judge Young dismissed the case in January 2007, holding that the ministerial exemption applies to the Fair Labor Standards Act claims the Schleichers were making in regard to unpaid wages.

By allowing the case and applying Title VII employment laws, the court found this would result in an encroachment by the state into an area of religious freedom that's forbidden under the First Amendment.

But paving way for first impression at the Circuit level, Judge Young relied on opinions from other Circuit Courts and wrote in his decision, "Although the Seventh Circuit has not had occasion to apply the ministerial exception to FLSA suits, this court is persuaded that were the issue before the Seventh Circuit, it would find it applicable to such suits."

Appellate panel Judges Richard Cudahy, Richard Posner, and Terence Evans heard arguments Wednesday morning. Audio of the arguments wasn't available online through the court.

Indianapolis attorney Ronald E. Weldy contends that the court should reverse Judge Young's dismissal of the suit because it's contrary to controlling precedent of the 7th Circuit and Supreme Court of the United States.

"No ministerial exception to the FLSA exists when the work at issue concerns commercial activity," the brief states. "The fact that employees were ministers who performed ministerial duties for Employer does not alter the fact that Employees also managed and operated a commercial enterprise for Employer that was clearly governed by provisions of the FLSA."

Weldy cited caselaw that FLSA applies to any religious organization's activities if they are engaged in commerce and that those individuals claiming protection are classified as "employees" within the statute.

However, attorneys Edward Hollis and Scott Himsel with Baker & Daniels in Indianapolis counter that point in their 38-page brief, mentioning that the U.S. Department of Labor doesn't recognize ministers as "employees" within the coverage of the FLSA because of the ministerial exception.

The attorneys argue that the Schleichers were responsible for religious and spiritual guidance as part of their jobs, including the commercial aspects of selling clothes, furniture, and other items. Therefore, the ministerial exception applies.

"The First Amendment prohibits the government from determining who is a minister and how a church interacts with a minister," the brief states. "To avoid this problem, courts have consistently, indeed uniformly, not involved themselves in any aspect of the church-minister relationship. The First Amendment prohibits a court not just from deciding issues of religious doctrine but also from interfering in internal church government."
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  1. Too many attorneys take their position as a license to intimidate and threaten non attorneys in person and by mail. Did find it ironic that a reader moved to comment twice on this article could not complete a paragraph without resorting to insulting name calling (rethuglican) as a substitute for reasoned discussion. Some people will never get the point this action should have made.

  2. People have heard of Magna Carta, and not the Provisions of Oxford & Westminster. Not that anybody really cares. Today, it might be considered ethnic or racial bias to talk about the "Anglo Saxon common law." I don't even see the word English in the blurb above. Anyhow speaking of Edward I-- he was famously intolerant of diversity himself viz the Edict of Expulsion 1290. So all he did too like making parliament a permanent institution-- that all must be discredited. 100 years from now such commemorations will be in the dustbin of history.

  3. Oops, I meant discipline, not disciple. Interesting that those words share such a close relationship. We attorneys are to be disciples of the law, being disciplined to serve the law and its source, the constitutions. Do that, and the goals of Magna Carta are advanced. Do that not and Magna Carta is usurped. Do that not and you should be disciplined. Do that and you should be counted a good disciple. My experiences, once again, do not reveal a process that is adhering to the due process ideals of Magna Carta. Just the opposite, in fact. Braveheart's dying rebel (for a great cause) yell comes to mind.

  4. It is not a sign of the times that many Ind licensed attorneys (I am not) would fear writing what I wrote below, even if they had experiences to back it up. Let's take a minute to thank God for the brave Baron's who risked death by torture to tell the government that it was in the wrong. Today is a career ruination that whistleblowers risk. That is often brought on by denial of licenses or disciple for those who dare speak truth to power. Magna Carta says truth rules power, power too often claims that truth matters not, only Power. Fight such power for the good of our constitutional republics. If we lose them we have only bureaucratic tyranny to pass onto our children. Government attorneys, of all lawyers, should best realize this and work to see our patrimony preserved. I am now a government attorney (once again) in Kansas, and respecting the rule of law is my passion, first and foremost.

  5. I have dealt with more than a few I-465 moat-protected government attorneys and even judges who just cannot seem to wrap their heads around the core of this 800 year old document. I guess monarchial privileges and powers corrupt still ..... from an academic website on this fantastic "treaty" between the King and the people ... "Enduring Principles of Liberty Magna Carta was written by a group of 13th-century barons to protect their rights and property against a tyrannical king. There are two principles expressed in Magna Carta that resonate to this day: "No freeman shall be taken, imprisoned, disseised, outlawed, banished, or in any way destroyed, nor will We proceed against or prosecute him, except by the lawful judgment of his peers or by the law of the land." "To no one will We sell, to no one will We deny or delay, right or justice." Inspiration for Americans During the American Revolution, Magna Carta served to inspire and justify action in liberty’s defense. The colonists believed they were entitled to the same rights as Englishmen, rights guaranteed in Magna Carta. They embedded those rights into the laws of their states and later into the Constitution and Bill of Rights. The Fifth Amendment to the Constitution ("no person shall . . . be deprived of life, liberty, or property, without due process of law.") is a direct descendent of Magna Carta's guarantee of proceedings according to the "law of the land." http://www.archives.gov/exhibits/featured_documents/magna_carta/

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