Braidwood Management, Inc. v. Equal Employment Opportunity Commission

Braidwood Management, Inc. (Braidwood) (plaintiff) was a Texas company owned by Steven Hotze. Hotze, a Christian, ran Braidwood as a Christian business, refusing to employ persons engaged in conduct he believed was sexually immoral or gender nonconforming, including homosexuality and crossdressing. Braidwood had a sex-specific dress code and required employees to use bathrooms corresponding to biological sex. Bear Creek Bible Church (Bear Creek) (plaintiff) was a nondenominational church that refused to hire practicing homosexuals, bisexuals, crossdressers, or persons who were transgender or gender nonconforming. In 2020, the United States Supreme Court held, in Bostock v. Clayton County, that Title VII of the Civil Rights Act of 1964 (Title VII) prohibits employers from discriminating against homosexual and transgender persons. The Court noted that religious exceptions might be needed but punted full consideration. In response to Bostock, Braidwood and Bear Creek sued the Equal Employment Opportunity Commission (EEOC) (defendant), seeking a declaratory judgment that, among other things, the Religious Freedom Restoration Act (RFRA) compelled a religious exemption to post-Bostock Title VII. The EEOC moved for summary judgment, arguing in part that Braidwood and Bear Creek (1) lacked standing because the EEOC had not initiated any enforcement proceedings against them and (2) RFRA did not compel a religious exemption because post-Bostock Title VII did not impose a substantial burden on religious beliefs. The district court granted summary judgment against Bear Creek, concluding that it was a religious organization already statutorily exempt from Title VII’s post-Bostock prohibitions. However, the court granted summary judgment in Braidwood’s favor, holding that RFRA compelled a religious exemption to post-Bostock Title VII. Both sides appealed.