Dec. 13, 2013
Eden Foods Inc. and its chairman, president and sole shareholder, Michael Potter, asserted that the U.S. federal government forced them to offer Eden Foods employees coverage for contraception and abortifacients, which are substances that induce abortions, in violation of their rights under the First Amendment Free Exercise Clause and Religious Freedom Restoration Act.
They alleged that the mandates of the Affordable Care Act force them and other Roman Catholic business owners to choose between the secular corporation incurring substantial financial penalties for noncompliance and ignoring the shareholders’ sincerely held religious beliefs concerning the use of contraception.
Affirming the dismissal of the lawsuit, the U.S. Court of Appeals for the 6th Circuit held that claims under the Religious Freedom Restoration Act are “fundamentally personal” and may not be brought by for-profit secular corporations that are not “persons” covered by the act. A corporation cannot establish that it exercises religion and an individual cannot establish standing to challenge obligations placed solely on the corporation but not the individual. Eden Foods Inc. v. Sebelius, 6th Cir. No. 13-1677 (Oct. 24, 2013).
Impact: Eden Foods was unable to escape the Affordable Care Act’s mandated coverage for contraception and abortifacients, which the company previously excluded from its health insurance to its employees.
James E. Hall, Mark T. Kobata and Marty Denis are partners in the law firm Barlow, Kobata and Denis, which has offices in Los Angeles and Chicago. To comment, email firstname.lastname@example.org. FollowWorkforce on Twitter at @workforcenews.
We build robust scheduling & attendance software for businesses with 500+ frontline workers. With custom BI reporting and demand-driven scheduling, we help our customers reduce labor spend and increase profitability across their business. It's as simple as that.
ComplianceMinimum Wage by State in 2022 – All You Need to Know
Summary The federal minimum wage rate is $7.25, but the rate is higher in 30 states, along with Washing...
federal law, minimum wage, pay rates, state law, wage law compliance
LegalCalifornia’s push for a 32-hour workweek explained, and how to prepare
Summary: California is considering a 32-hour workweek bill for businesses with over 500 staff 4 day wee...
32 hour workweek, 4 day workweek, california, legislature, overtime
LegalA business owner’s guide to restaurant tipping law
Business owners in the restaurant industry are in a unique position when it comes to employee tips. As ...
restaurants, tip laws, tipping