How does freedom of religion affect business practice?

Businesses are subject to employment discrimination laws. That is, pursuant to Title VII, businesses cannot discriminate against employees for their religious beliefs or practices - with certain exceptions. 

Notably, businesses may also hold the religious protections of their owners.

What is the Effect of Title VII on Businesses?

Generally, for-profit businesses covered by Title VII of the Civil Rights Act of 1964 may not discriminate against employees on the basis of religion. 

There is an exception for religious organizations whose primary purpose necessitates religious practice or affiliation among its employees. 

Do Businesses hold Religious Rights?

Aside from the prohibitions on employment practices, common law holds that closely-held corporations may have religious protections similar to those of citizens.

This issue came to the forefront of consideration in the case, Burwell v. Hobby Lobby Stores, Inc., The Court found that the religious beliefs of owners of the closely-held entity were sufficiently tied to the religious beliefs of the owners to be susceptible to protection under the 1st Amendment. 

The courts holding exempts closely-held businesses from laws that mandate or prohibit certain conduct conflicting with that belief.

• Example: ABC, LLC is a small restaurant with 25 employees. ABC is solely owned by a family of devout Christians. ABC refuses to hire any employees who are not Christian. Further, ABC refuses to offer a health insurance plan than covers subscriptions for birth control. ABCs failure to hire non-Christians may constitute illegal discrimination. The common law, however, allows a closely-held business entity to adopt the religious beliefs of its owners. As such, refusing to sponsor a health insurance plan that contains provisions conflicting with the owners religious beliefs is likely legal. This example demonstrates the fine line between business practices that discriminate against others based upon religious belief with practices that cause a business to violate its own beliefs.

Related Concepts

• What is the 1st Amendment?
• What are the Establishment Clause and Free Exercise Clause
• What is the protection of Freedom of Speech?
• Speech with Limited or No Protection
• What is Obscene Speech?
• What are Fighting Words?
• What is Commercial Speech?
• What is Defamation?
• What is Political Speech?
• Overbreadth and Overly Broad Laws
• Freedom of the Press
• Freedom of Assembly