As covered by Bloomberg Law, the U.S. Court of Appeals for the Fourth Circuit has affirmed a landmark ruling in favor of a gay employee, John Doe, who was denied equal compensation after his employer, Catholic Relief Services (CRS), terminated health insurance benefits for his husband. In a published opinion issued October 16, the court rejected CRS’s arguments that its religious beliefs exempted it from liability under federal and Maryland employment discrimination laws. Mr. Doe is represented by attorneys Brown, Goldstein & Levy Eve L. Hill and Lauren A. DiMartino, along with co-counsel from Nusinov Smith and Gilbert Employment Law.
John Doe worked in various IT-analyst roles at CRS from 2016 until his resignation in 2024. When Doe joined the organization, he was assured that his husband would be eligible for dependent health benefits. Five months later, CRS informed Doe that his husband’s enrollment had been a mistake, because providing the benefits conflicted with the organization’s religious beliefs. CRS subsequently terminated the benefits.
Doe sued in 2020, alleging discrimination under Title VII of the Civil Rights Act of 1964, the Equal Protection Act, and Maryland’s Fair Employment Practices Act (MFEPA), among other claims. The U.S. District Court for the District of Maryland ruled in Doe’s favor, and CRS appealed. The United States Department of Justice intervened on behalf of CRS. The state of Maryland intervened to defend the constitutionality of the Maryland anti-discrimination laws.
In a 2-1 ruling, the Fourth Circuit affirmed the district court’s judgment in Doe’s favor under Title VII and MFEPA, rejecting CRS’s attempt to expand the legal protections available to religious employers. The court held that Title VII’s religious-employer exemption does not shield an organization from liability for discrimination, even when the employment decision is motivated by religious beliefs.
The court also upheld the application of MFEPA’s religious-employer exemption, concluding that Doe’s job responsibilities did not directly further CRS’s core mission as required to qualify for exemption under Maryland law. The decision reinforces that an employee’s position, compensation, and educational background do not determine whether the exemption is applicable.
In addressing CRS’s constitutional defenses, the court declined to recognize broad immunity from employment discrimination laws based solely on an employer’s religious motivation. The opinion makes clear that religious liberty protections do not automatically excuse otherwise unlawful discrimination in the workplace.
“No employee should have to choose between their job and equal treatment for their family,” said Eve Hill, partner at Brown, Goldstein & Levy. “This decision reinforces that religious beliefs, even when sincerely held, do not give employers a blanket exemption from laws prohibiting discrimination, and that LGBTQ+ employees are entitled to the same protections and benefits as their colleagues.”
Amici supporting Mr. Doe include the Metropolitan Washington Employment Lawyers Association (MWELA); the National Employment Lawyers Association (NELA); the National Women’s Law Center and 14 additional organizations; Lambda Legal Defense and Education Fund, Inc.; the Public Justice Center, FreeState Justice; Equality California, Justice in Aging; Legal Aid at Work; the National Employment Law Project; the National LGBTQ+ Bar Association; Services and Advocacy for Gay, Lesbian, Bisexual, and Transgender Elders, Inc.; Silver Spring United Methodist Church; and current and former CRS employees.
Read the Fourth Circuit’s opinion here.
ABOUT EVE HILL
Eve Hill is one of the nation’s leading civil rights lawyers, known especially for her work with clients with disabilities and LGBTQ+ clients. She has been recognized by Law360 as one of just 12 “Titans of the Plaintiffs’ Bar” for 2023, as well as by Lawdragon as one of the 500 Leading Lawyers in America (2022-2026). Her wide-ranging experience complements Brown, Goldstein & Levy’s decades of dedication to high-impact disability rights cases and its advocacy on behalf of individuals with disabilities and their families. Eve also leads Inclusivity, BGL’s Strategic Consulting Group, which works with organizations to promote the education, engagement, and employment of people with disabilities. Learn more about Eve here.
ABOUT LAUREN DIMARTINO
Lauren DiMartino represents clients across various areas of civil rights law, including fair housing, education and disability rights, LGBTQ rights, government misconduct, and workplace discrimination. Her practice also includes appeals and commercial litigation. Much of Lauren’s legal experience has centered on education equity, constitutional law, anti-discrimination, and government misconduct. Learn more about Lauren here.
ABOUT BROWN, GOLDSTEIN & LEVY
Founded in 1982, Brown, Goldstein & Levy is a law firm based in Baltimore, Maryland, with an office in Washington, DC. The firm is nationally recognized in a wide variety of practice areas, including complex civil and commercial litigation, civil rights, health care, family law, criminal defense, and appellate advocacy. Above all else, Brown, Goldstein & Levy is a client-centered law firm that brings decades of experience and passionate, effective advocacy to its clients’ fight for justice.
PLEASE FIND MEDIA COVERAGE BELOW
Baltimore Catholic charity wrong to cut gay couple’s benefits, 4th Circuit rules | The Daily Record (October 19, 2026)
Religious Group Loses Same-Sex Benefits Case in Fourth Cir. (1) | Bloomberg Law (October 16, 2026)
Court ruling narrows religious employer shield in benefits discrimination | Insurance Business (October 16, 2026)