FWIW, a post on these questions:

http://balkin.blogspot.com/2014/07/why-law-does-not-and-should-not-allow.html


On Wed, Jul 23, 2014 at 5:41 PM, Marty Lederman <lederman.ma...@gmail.com>
wrote:

> The section 702 exemption, and the virtually identical section 204 of the
> EO, allows employers to prefer employees "of a particular religion."  There
> is a serious question, I think, whether an employee's noncompliance with
> particular tenets, or conduct rules, renders an employee not "of a
> particular religion," as *Little v. Wuerl* held.  Many might accuse me of
> being a less-than-perfectly-observant Jew, and a Hassidic employer could
> certainly say:  "I won't hire Lederman, since he's not Hassidic, and we
> hire only Hassids."  But it would sure take some gall -- and be legally
> quite dubious -- for an employer that hires "Jews only" to refuse to hire
> me on the ground that I am not "of the Jewish religion."
>
> But be that as it may, let's assume *Little* is correct, and that a
> qualifying employer -- which, btw, most certainly does *not *include most
> government contractors who happen to be religiously motivated -- can
> generally insist upon tenets and conduct compliance by its coreligionist
> employees.  Even so -- and this is the critical point --* it cannot do so
> when that tenets or conduct rule itself violates another of Title VII's
> prohibitions, other than the ban on religious discrimination*.  If the
> religion teaches that women can't work out of the home, or that men should
> receive higher wages because they are heads of households, or that
> adherents should not sue their employers for discrimination, or that it
> sinful for women but not men to have sex before marriage, or that it is
> sinful to marry people of a different race or religion, etc., the
> qualifying employer *cannot *invoke the 702/204 exemptions to justify
> penalizing its employees for violating such rules.  (And all the cases
> confirmed this conclusion, at least as of the time I worked on that 2000
> OLC opinion -- I haven't checked lately to see whether there have been any
> contrary holdings, but I've never seen one cited.)
>
> *Boyd *is consistent with this:  The court there held that an employer --
> and this is true not only of qualifying religious employers! -- can fire
> employees for engaging in adultery (if memory serves), because "adultery"
> is *not a protected title VII characteristic*.  But the court there noted
> (again, if my memory is accurate) that if the employer's religion made it
> sinful for only one sex to engage in adultery, then acting to enforce that
> tenet would be a form of prohibited sex discrimination to which the 702
> exemption did not apply.
>
> Similarly, employers today arguably can, as far as federal law is
> concerned, "exclude employees . . . based on conduct that . . . expresses
> one’s sexual orientation and gender identity," but that is because such
> characteristics have not yet been added to the prohibited grounds of
> employment action) race, sex, retaliation, etc., listed in title VII.
>  (Actually, the EEOC has recently opined that sexual orientation
> discrimination *is *a form of sex discrimination prohibited by T7 -- but
> that's a subject for a whole 'nother thread.)  *Any* employer can
> discriminate against gays and lesbians (assuming the EEOC view does not
> prevail and Congress does not enact ENDA) -- they don't need the 702
> exemption, because there's nothing from which they need exempting.
>
> But if T7 were amended to include "sexual orientation," as the E.O. now
> has been, then the coreligionist exemption would not offer any
> justification for discrimination against gays and lesbians, even if the
> employer's religion forbids their conduct and/or orientation.
>
>
>
> On Wed, Jul 23, 2014 at 4:48 PM, Kniffin, Eric N. <eknif...@lrrlaw.com>
> wrote:
>
>>  Marty is correct: Monday’s executive order leaves Section 204—the
>> religious exemption Bush added in 2002—as is. The tweaks to the existing
>> order are minor:  in the only four places where the phrase “sex or national
>> origin” appears (three times in 202 and once in 203), that phrase is
>> amended to read “sex, sexual orientation, gender identity, or national
>> origin.” That’s it.
>>
>>
>>
>> However, I take issue with Marty’s statement that Title VII and the
>> executive order do not “give the organization the right, even on religious
>> grounds, to discriminate on the basis of sex, or race, or sexual
>> orientation. . . .”  That’s not the law.  Marty’s linked text (p.32) cites 
>> *Boyd
>> v. Harding Acad. of Memphis, Inc.*, 88 F.3d 410 (6th Cir. 1996), where a
>> court upheld a religious school’s decision to fire an unmarried pregnant
>> teacher.
>>
>>
>>
>> The school won because the term “religion” in the Title VII is
>> interpreted broadly, to include “all aspects of religious observance and
>> practice, as well as belief.” 42 U.S.C. § 2000e(j). This allows a
>> qualifying religious entity to evaluate employees based not only on what
>> they believe, but also whether they act in conformity with those beliefs. 
>> *See
>> Hall v. Baptist Mem’l Health Care Corp*., 215 F.3d 618, 624 (6th Cir.
>> 2000); *Little v. Wuerl*, 929 F.2d 944, 951 (3d Cir. 1991). Thus, the
>> “religion” exemption protects a religious organization’s right to exclude
>> employees based on conduct that both (1) expresses one’s sexual orientation
>> and gender identity and (2) violates the church’s moral teachings.
>>
>>
>>
>> Practically speaking, such organizations have to answer plaintiffs’
>> charges that the adverse decision was not based on “religion” but on
>> prohibited bases. That is why religious employers should be prepared to
>> demonstrate that they have applied behavioral standards evenhandedly.  For
>> example, the court in *Boyd* might well have upheld the pregnant
>> teacher’s sex and pregnancy discrimination if the school had not been able
>> to show that it had previously fired male and female employees for
>> premarital sex, even when no pregnancy resulted. 88 F.3d at 412, 414.
>>
>>
>>
>> Eric
>>
>>
>>
>
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