The Biden administration has agreed to pay $210,000 in legal fees after being sued for trying to compel Christian employers to provide or pay for health plans covering gender transition surgeries and other related services.
The Christian Employers Alliance reached a settlement with the administration after winning a judgment earlier this year against the Equal Employment Opportunity Commission and the U.S. Department of Health and Human Services.
CEA was represented by the Alliance Defending Freedom, a conservative legal group that has successfully argued religious freedom cases before the U.S. Supreme Court.
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ADF confirmed the $210,000 settlement in an announcement Wednesday, seeing the successful conclusion of the litigation as a victory for First Amendment rights.
“All employers and health care providers, including those in the Christian Employers Alliance, have the constitutionally protected freedom to conduct their business and render treatment in a manner consistent with their deeply held religious beliefs,” said ADF Senior Counsel Matt Bowman.
“We’re pleased to favorably conclude this lawsuit on behalf of our clients and hold the administration accountable for trying to force unlawful mandates that disrespect people of faith.”
In 2016, the Obama administration enacted a final rule that interpreted Section 1557 of the Affordable Care Act, which is centered on banning discrimination in healthcare based on sex, to include sexual orientation and gender identity.
The final rule was challenged in court by several states and various religious groups and was eventually repealed by the Trump administration in 2018.
In June 2021, under the Biden administration, the EEOC and HHS returned to the Obama-era interpretation, citing as justification the 2020 Supreme Court decision Bostock v. Clayton County, in which the high court concluded that Title VII civil rights protections protect against employment discrimination based sexual orientation and gender identity.
“The Supreme Court in Bostock recognized that to discriminate against a person based on sexual orientation or transgender status is to discriminate against that individual based on sex,” stated the EEOC in 2021.
“Therefore, the Supreme Court held that Title VII makes it unlawful for a covered employer to take an employee’s sexual orientation or transgender status into account in making employment-related decisions.”
In October 2021, CEA filed a complaint against the administration, arguing the mandate forced religious groups to perform and support actions contrary to their beliefs.
In March, the U.S. District Court of the District of North Dakota granted partial summary judgment in favor of CEA, concluding that “if CEA had to comply with these mandates, its members would have to violate their sincerely held religious beliefs which is an impermissible exercise under the First Amendment and [the Religious Freedom Restoration Act].”
“CEA’s sincerely held religious belief is that male and female are immutable realities defined by biological sex and that gender reassignment is contrary to Christian Values,” read the order.
“As a result, performing or providing health care coverage for gender transition services under the EEOC and HHS coverage mandates impinges upon CEA’s beliefs. CEA must either comply with the EEOC and HHS mandates by violating their sincerely held religious beliefs or else face harsh consequences like paying fines and facing civil liability.”