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Supreme Court Rules that Employers Must Show Substantial Increased Costs to Legally Decline Employees’ Religious Accommodation Requests

Client Alert

On June 29, 2023, the Supreme Court ruled in Groff v. DeJoy that under Title VII of the Civil Rights Act of 1964 (“Title VII”) employers must show, in order to decline religious accommodations, that the burden of granting religious accommodations to employees will result in substantial increased costs in relation to the conduct of an employer’s particular business, thus amending the prior, simple standard of a “de minimis” undue hardship.

Title VII requires employers to accommodate employees’ religious practices unless doing so would impose undue hardship on the conduct of the employer’s business. Prior to this recent decision, in interpreting what undue hardship means, courts have repeatedly applied a “de minimis cost” standard. Under that standard, employers merely needed to demonstrate that honoring an employee’s religious accommodation would result in essentially any additional cost or hardship. Specifically, the Supreme Court noted that the de minimis cost standard could be satisfied in nearly any circumstance. The Supreme Court is now holding that employers must show an excessive or unjustifiable burden to legally decline religious accommodations.  

In navigating this tough new standard, it’s imperative for employers to understand the risks of declining or failing to honor employees’ religious accommodation requests. To demonstrate what does not count as “substantial increased costs” for employers, the Supreme Court explained that no undue hardship is imposed on employers by temporary costs, voluntary shift swapping, occasional shift swapping, or administrative costs. Consequently, employers who plan to deny an employee’s religious accommodation request must be prepared to meet the tough burden of proving the business would face substantial increased costs due to such accommodations.

In its decision, the Supreme Court emphasized that employers may not reject a religious accommodation due to hardship attributed to animosity towards a particular religion. Further, Title VII requires employers to reasonably accommodate an employee’s religious practice, and not merely show that it assessed the “reasonableness” of a possible accommodation.

In all, employers must carefully assess and examine religious accommodation requests and note that substantial increased costs must be present to legally decline religious accommodations under Title VII. This analysis should be conducted alongside the employer’s employment attorney.

Should you have any questions concerning religious accommodation requests, please contact BMD Labor & Employment Partner and Co-Chair of its Labor & Employment Division, Bryan Meek, at bmeek@bmdllc.com. Thanks to Mercedes Sieg for her research and efforts with this Client Alert.


Latest Batch of Ohio Chemical Dependency Professionals Board Rules: What Providers Should Know

The Ohio Chemical Dependency Professionals Board recently released several new rules and proposed amendments to existing rules over the past few months. A hearing for the new rules was held on February 16, 2024, but the Board has not yet finalized them.

Now in Effect: DOL Final Rule on Classification of Independent Contractors

Effective March 11, 2024, the U.S. Department of Labor (DOL) has adopted a new standard for the classification of employees versus independent contractors — a much anticipated update since the DOL issued its Final Rule on January 9, 2024, as previously discussed by BMD.  In brief, the Fair Labor Standards Act (FLSA) creates significant protections for workers related to minimum wage, overtime pay, and record-keeping requirements. That said, such protection only exists for employees. This can incentivize entities to classify workers as independent contractors; however, misclassification is risky and can be costly.

Florida's Recent Ruling on Arbitration Clauses

Florida’s recent ruling on arbitration clauses provides a crucial distinction in determining whether such clauses are void as against public policy and providers may have the opportunity to include arbitration clauses in their patient consent forms. On March 6, 2024, Florida’s Fourth District Court of Appeals reversed and remanded Florida’s Fifteenth Circuit Court ruling of Piero Palacios v. Sharnice Lawson. The Court of Appeals ruled that the parties’ arbitration agreement did not contradict the Legislature’s intent of Florida’s Medical Malpractice Act (the “MMA”), but rather reflects the parties’ choice to arbitrate claims entirely outside of the MMA’s framework. Therefore, the Court found that the agreement was not void as against public policy.

Corporate Transparency Act Update 3/14/24

On March 1, 2024, a federal district court in the Northern District of Alabama concluded that the Corporate Transparency Act (“CTA”) exceeded Congressional powers and enjoined the Department of the Treasury from enforcing the CTA against the plaintiffs. National Small Business United v. Yellen, No. 5:22-cv-01448 (N.D. Ala.). On March 11, 2024, the U.S. Department of Justice appealed the district court’s decision to the Eleventh Circuit Court of Appeals.

The Ohio State University Launches Its Accelerated Bachelor of Science in Nursing Program

In response to Ohio’s nursing shortage, The Ohio State University College of Nursing is accepting applications for its new Accelerated Bachelor of Science in Nursing program (aBSN). Created for students with a bachelor’s degree in non-nursing fields, the aBSN allows such students to obtain their nursing degree within 18 months. All aBSN students will participate in high-quality coursework and gain valuable clinical experience. Upon completion of the program, graduates will be eligible to take the State Board, National Council of Licensure Exam for Registered Nursing (NCLEX-RN).