Employment Laws: Church Compliance And Legal Considerations

Churches are unique from for-profit companies and not-for-profit organizations, and as such, there are different steps they should take when hiring employees, doing payroll, and managing volunteers. While churches are often granted exemptions from legal standards that apply to other corporate entities, they must still follow legal standards in many areas. For example, churches are subject to the Civil Rights Act of 1964, which prohibits discrimination on several bases, including age, race, gender, and national origin. In addition, there are several federal employment laws that apply to churches, such as the Occupational Safety and Health Administration Act of 1970 (OSHA), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act of 1993 (FMLA), and the Fair Labor Standards Act (FLSA).

Discrimination and harassment

Churches are subject to the Civil Rights Act of 1964, which prohibits discrimination based on age, race, gender, and national origin. Title VII of this Act specifically protects workers from religious discrimination, but there are two exceptions for religious organizations. Firstly, the religious exception allows churches to employ only workers who are members of their faith, and secondly, the ministerial exception grants religious organizations immunity from all Title VII claims by employees who perform religious functions. However, it is important to note that courts have interpreted these exceptions differently, and their application can vary on a case-by-case basis.

Additionally, churches are subject to federal nondiscrimination laws if they engage in interstate commerce. This includes compliance with the Fair Labor Standards Act (FLSA), which guarantees minimum wage and overtime pay for employees. While churches are generally considered exempt from FLSA as they are not deemed to be "enterprises", individual employees may still be covered by the law under Individual Coverage if they engage in interstate commerce regularly and recurrently.

To ensure compliance with labor laws, churches must adopt clear policies and guidelines. This includes having procedures for handling employees from pre-hiring to post-termination, adequate screening of employees, and providing employee handbooks with up-to-date information on relevant laws and policies.

Furthermore, churches have the right to discriminate in hiring based on religion. However, they cannot discriminate on other bases, such as race, color, sex, national origin, or disability. Harassment in the workplace, whether by managers, co-workers, or clients, is also prohibited.

Churches should be mindful that failure to comply with employment laws can result in investigations, enforcement actions, and lawsuits. It is recommended that churches seek legal counsel to ensure they are meeting all applicable federal and state requirements.

Health and safety

Churches, like any other employer, are responsible for ensuring the health and safety of their employees. In the US, the Occupational Safety and Health Administration Act of 1970 (OSHA) sets out an employer's duty of care in this regard.

OSHA applies to churches with 15 or more employees. It requires employers to provide safe and healthy working conditions for their employees. This includes ensuring that employees are not exposed to excessive noise levels, as in the case of a musician in a church band or orchestra.

However, it's important to note that OSHA treats churches as a special case. While churches are considered employers under the Act when they engage in secular activities, the performance of or participation in religious services is not considered employment under OSHA. This means that any person performing or participating in religious services is not regarded as an employer or employee under the Act, even if they receive remuneration for their involvement.

Despite this partial exemption, churches are still subject to OSHA with regard to certain situations. For example, a private hospital, school, or orphanage owned or operated by a religious organization would be covered by OSHA. The same is true for commercial establishments of religious organizations, such as those producing or selling products.

In addition to OSHA, churches are also subject to other federal and state employment laws that pertain to health and safety. These include:

• The Fair Labor Standards Act (FLSA), which establishes minimum wage, overtime pay, and other labor standards for both full-time and part-time workers.
• The Americans with Disabilities Act (ADA), which prohibits discrimination based on disability and requires employers to provide reasonable accommodations for qualified individuals with disabilities.
• The Family and Medical Leave Act of 1993 (FMLA), which provides eligible employees with unpaid, job-protected leave for specific family and medical reasons.

To ensure compliance with health and safety regulations, churches should conduct regular Human Resources Compliance Audits (HR audits). These audits help to identify legal risks, establish best practices, and reduce the risk of employment-related litigation.

By taking these steps, churches can create a safe and healthy work environment for their employees while also reducing their legal liabilities.

Disability rights

Religious entities, including churches, are exempt from Title III of the Americans with Disabilities Act (ADA). Title III covers private businesses that own, lease, lease to, or operate places of public accommodation. However, Title I of the ADA, which pertains to employment, does apply to churches with 15 or more employees.

Additionally, while not legally mandated, many churches voluntarily adopt accessibility features such as handicap parking spots, automatic doors, and accessible bathrooms to create a welcoming and inclusive environment for people with disabilities.

It is important to note that members of the clergy and other employees who perform religious duties are generally excluded from the protections of the ADA and other employment discrimination laws due to the "ministerial exception" based on the First Amendment to the Constitution. This exception ensures the free exercise of religion and prevents government interference in religious matters.

Family and medical leave

The Family and Medical Leave Act of 1993 (FMLA) applies to churches with 50 or more employees. The FMLA provides certain employees with up to 12 weeks of unpaid, job-protected leave per year. It also requires that their group health benefits be maintained during the leave.

FMLA is designed to help employees balance their work and family responsibilities by allowing them to take reasonable unpaid leave for certain family and medical reasons. It also seeks to accommodate the legitimate interests of employers and promote equal employment opportunities for men and women.

FMLA applies to all public agencies, all public and private elementary and secondary schools, and companies with 50 or more employees. These employers must provide an eligible employee with up to 12 weeks of unpaid leave each year for any of the following reasons:

• For the birth and care of the newborn child of an employee
• For placement with the employee of a child for adoption or foster care
• To care for an immediate family member (i.e., spouse, child, or parent) with a serious health condition
• To take medical leave when the employee is unable to work because of a serious health condition

Employees are eligible for leave if they have worked for their employer for at least 12 months, at least 1,250 hours over the past 12 months, and work at a location where the company employs 50 or more employees within 75 miles.

It is important to note that time taken off work due to pregnancy complications can be counted against the 12 weeks of family and medical leave. Additionally, military family leave provisions afford FMLA protections specific to the needs of military families.

Age discrimination

Churches are not lawless zones and must adhere to legal standards in many areas, including employment law. In the US, employers, including churches, are subject to the Civil Rights Act of 1964, which prohibits discrimination on several protected bases, including age. The Age Discrimination in Employment Act (ADEA) specifically prohibits discrimination based on age against people over the age of 40 and applies to churches with 20 or more employees.

The ADEA is a federal law that protects workers aged 40 and over from discrimination in hiring, firing, promotions, wages, benefits, and other terms and conditions of employment. It applies to both private and government employers, including religious organisations, with 20 or more employees.

The ADEA makes it unlawful for an employer to refuse to hire, fire, or otherwise discriminate against an individual with respect to compensation, terms, conditions, or privileges of employment because of their age. It also prohibits limiting, segregating, or classifying employees in a way that would deprive them of employment opportunities or otherwise adversely affect their employment status because of their age.

In addition to federal law, many states have their own age discrimination laws that may apply to churches and other employers. These laws often mirror the ADEA but may provide additional protections or cover a broader range of employers.

Churches and other religious organisations do have some exemptions from employment laws. For example, the ministerial exception exempts churches from certain federal employment laws as they relate to employees who perform religious functions, such as ministers, nuns, and monks. However, this exception does not extend to non-ministerial employees, and courts have ruled that it does not provide blanket immunity from age discrimination claims.

To ensure compliance with labour laws, churches must adopt clear policies and guidelines. While there is no one-stop resource for churches to find answers to employment law questions, several resources are available to help churches understand their legal obligations, including consulting with legal professionals experienced in this area.

Frequently asked questions