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Federal Contracting Laws: Religious Exemptions



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This article explores the legal issues surrounding Religious exemptions in federal contracting laws. It also discusses Executive Order 11246, Section 702 (a) of Title VII of Civil Rights Act of 1963. In addition, we examine the special requirements for religiously exempt products. We conclude with important advice for employers.

Executive Order 11246

The Office of Federal Contract Compliance Programs has issued proposed rulemaking to clarify the religious exemption. The new rule, which builds upon precedents from Supreme Court cases, will define what constitutes religious organizations. The rule offers examples and guidelines to applicants. Additionally, the OFCCP published FAQs regarding the religious exemption.

Executive Order 11246 protects employers who are organized and held accountable for religious purposes. They can make employment conditions based upon religious tenets without violating any other workplace laws. However, this exemption does not apply to organizations that discriminate on the basis of race, national origin, or gender.


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Section 702(a), Title VII of Civil Rights Act of 1965

In a concurring opinion, Justice Brennan noted that SS 702 is more palatable when applied to nonprofits than for-profit entities. Because the statute language is more flexible for activities of non-profit religious organizations, this is why it is easier to use. On the other side, a religious organisation that conducts religious activities for profit might be unable to use the language in SS 702 as it would be unconstitutional.


To be exempted under Section 702(a) Civil Rights Act liability, the activity must not have been "prejudiced". SS 702(a) allows for government activity to advance religion, but must not inhibit it. The court cited cases that have addressed this question.

Federal contracting legislation allows for religious exemptions

Under federal contracting laws, religious organizations are afforded protection from discrimination. These protections extend to businesses as well. Religious organizations can hire members of their faith and conduct religious activities. This could help them qualify for federal contracts. Religious organizations have to be aware of some restrictions. First, they must comply with the law.

Recently, the Office of Federal Contract Compliance Programs at the Department of Labor proposed regulations to clarify and add new definitions to the definition of religious exemption. The purpose of the rules is to encourage more religious organizations to participate in federal contracts, while ensuring they receive appropriate protections. The rules will be effective from January 8, 2021.


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Employee credibility is affected

Religious exemptions can sometimes have a negative impact upon employee credibility. An employee may not be in a position to prove that her religion is compatible with the policies and values of her employer. Employers may be suspicious if she can't prove her sincerity.

Other examples may involve employees who display religious symbols at work or use religious phrases when greeting co-workers. Some employees feel they have a moral obligation to share their faith or preach the gospel. These employees should inform their employer and explain why it is they believe in the religion.



 



Federal Contracting Laws: Religious Exemptions