Employment Liability and the Church
Read on to discover the myths and misconceptions about employment liability.Brotherhood Mutual Insurance Company | posted 5/14/2008

Lawsuits alleging wrongful employment practices are the fastest-growing area of civil litigation today. Unfortunately, many churches and ministries are unaware of the legal risks they face as employers.
Mistaken assumptions about employment law can add to the risks. Protect your organization by asking an employment law attorney to review your ministry's practices. And take the following steps to avoid serious consequences from eight common misconceptions.
1. "We are a religious organization and are protected by the First Amendment."
An organization operating as a religious institution may have limited protection under the First Amendment in a few employment situations, e.g., terminating clergy, discussing concerns in a board meeting, or requiring certain employees to be of a specific faith. Even in these cases, you may be vulnerable to legal action.
Do it right: Consult local counsel before making employment decisions to determine whether you are complying with federal and state laws.
2. "Our employees are like family. Even if they were terminated, they would not sue us."
Discrimination lawsuits have increased exponentially in the past 20 years. The fact is most employers do not anticipate problems during the hiring process; issues surface after the employment relationship begins.
Do it right:
- Conduct annual performance reviews.
- Document all disciplinary actions.
- Maintain accurate records.
- Avoid emotional confrontations.
3. "We only have a few employees, so the laws do not apply to our organization."
While many federal statutes (such as the Americans with Disabilities Act, Title VII of the Civil Rights Act and the Family and Medical Leave Act) require a minimum number of employees in order to apply, state statutes and case law generally do not. Legislation in many states broadens the scope and damages of federal statutes.
Do it right: Know the federal and state laws affecting your organization.
4. "We have a right to tell our staff/congregation the reasons for disciplining or terminating an employee."
Confidentiality relating to discipline or termination is extremely important. While many states provide some protection for statements made to a limited number of people with a "need to know," this protection may be overcome if:
- False information is provided.
- Information is given to individuals deemed not to have a "need to know."
- Private information about an employee is shared without the employee's prior permission.
Do it right: Provide factual information on a strict "need to know" basis. Never reveal information to people other than your staff or congregation.



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