Circuit examines ministerial exception

Michael W. Hoskins
January 1, 2008
Back to TopCommentsE-mailPrintBookmark and Share
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."

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
Subscribe to Indiana Lawyer
  1. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.

  2. I had a hospital and dcs caseworker falsify reports that my child was born with drugs in her system. I filed a complaint with the Indiana department of health....and they found that the hospital falsified drug screens in their investigation. Then I filed a complaint with human health services in Washington DC...dcs drug Testing is unregulated and is indicating false positives...they are currently being investigated by human health services. Then I located an attorney and signed contracts one month ago to sue dcs and Anderson community hospital. Once the suit is filed I am taking out a loan against the suit and paying a law firm to file a writ of mandamus challenging the courts jurisdiction to invoke chins case against me. I also forwarded evidence to a u.s. senator who contacted hhs to push an investigation faster. Once the lawsuit is filed local news stations will be running coverage on the situation. Easy day....people will be losing their jobs soon...and judge pancol...who has attempted to cover up what has happened will also be in trouble. The drug testing is a kids for cash and federal funding situation.

  3. (A)ll (C)riminals (L)ove (U)s is up to their old, "If it's honorable and pro-American, we're against it," nonsense. I'm not a big Pence fan but at least he's showing his patriotism which is something the left won't do.

  4. While if true this auto dealer should be held liable, where was the BMV in all of this? How is it that the dealer was able to get "clean" titles to these vehicles in order to sell them to unsuspecting consumers?

  5. He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, He has erected a multitude of New Offices, and sent hither swarms of Officers to harrass our people, and eat out their substance. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For imposing Taxes on us without our Consent: He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.. He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless [ ] Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions. GOD BLESS THE GOVERNORS RESISTING! Count on the gutless judiciary to tie our children down and facilitate the swords being drawn across their throats. Wake Up America ...