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Employment ComplianceNov 11, 202614:22 (PT)

Fourth Circuit rules 2–1 that Catholic nonprofit violated Title VII by ending same-sex spouse's coverage

Key points

  • On October 16, 2026, the Fourth Circuit ruled 2–1 that ending same-sex spouse coverage violated Title VII and Maryland law
  • The majority held the Section 702 exemption covers only religious discrimination and religious accommodation claims
  • RFRA cannot be raised as a defense in private litigation; the ruling covers five states

According to Ogletree, on October 16, 2026, a divided Fourth Circuit panel ruled 2–1 in Doe v. Catholic Relief Services that a Catholic humanitarian nonprofit violated Title VII and Maryland's fair employment law by ending health coverage for the same-sex spouses of nonministerial employees. The majority held that the Section 702 religious employer exemption covers only religious discrimination claims and requests for religious accommodation, and cannot shield against sex, race or national origin discrimination claims; RFRA cannot be raised as a defense in private litigation. The ruling covers Maryland, Virginia, North Carolina, South Carolina and West Virginia. For reference only, not legal advice.

What employers should do

  1. If you have employees in the Fourth Circuit, check whether health benefits treat same-sex and opposite-sex spouses equally
  2. Religious employers should assess how this ruling narrows the scope of the Section 702 exemption

Policy details

Jurisdiction
US Fourth Circuit
Status
Court ruling
Effective date
—
Employers covered
Religious employers in the Fourth Circuit (Maryland, Virginia, North Carolina, South Carolina, West Virginia)
Official source
View official source ↗
Original report: Ogletree ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.