Religiously affiliated hospitals win Supreme Court case on employee pensions

The Supreme Court ruled that federal pension rules don’t apply to religiously affiliated hospitals, a decision that could also affect similar institutions and their employees.

The 8-0 ruling handed down in June in favor of the hospitals—two with Catholic ties and one with Lutheran ties—reverses lower court decisions that sided with hospital workers who argued that the exemption from pension laws should not extend to hospitals affiliated with churches. Justice Neil Gorsuch did not participate in the decision because he was not on the court when the case was argued in March.

Advocate Health Care Network v. Stapleton revolved around the Employee Retirement Income Security Act, passed by Congress to ensure that companies invest and manage employee pension funds responsibly. Religiously affiliated hospitals have been allowed to take an exemption from ERISA afforded to churches and other houses of worship.