Kennedy v. St. Joseph's Ministries, Inc., 657 F.3d 189

St. Catherine is a tax-exempt religious organization operating a Catholic-affiliated nursing facility in Maryland and follows Catholic practices in its operations.
Kennedy, a Church of the Brethren member, worked as a geriatric nursing assistant from 1994 to 2007 and wore modest religious attire including long dresses and a hair cover.
Kennedy was informed her attire was inappropriate for a Catholic facility and was terminated on May 17, 2007 after she refused to modify it.
Kennedy sued under Title VII for religious harassment, retaliatory discharge, and discriminatory discharge based on religion; the district court granted summary judgment only on the discriminatory-discharge claim due to the religious-exemption and denied as to harassment and retaliation.
St. Catherine sought interlocutory review under § 1292(b), arguing the exemption bars harassment and retaliation claims against religious organizations.
The Fourth Circuit reversed, holding that § 2000e-1(a) exempts the entire subchapter on employment from Title VII for individuals of a particular religion, thereby barring Kennedy's harassment and retaliation claims.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 2000e-1(a) exempts harassment and retaliation claims against religious organizations.	Kennedy argues exemption applies only to hiring/discharging decisions.	St. Catherine contends exemption covers all employment actions by religious organizations.	Yes; exemption covers the entire employment subchapter.
Whether Kennedy's harassment claim is plausibly pled under a hostile-work-environment theory.	Harassment based on religious garb created an abusive environment.	Record insufficient to show severe/pervasive conduct; statements were not extreme.	Hostile environment claim inadequately pled at this stage; likelihood of severity/pervasiveness is uncertain.
Whether Kennedy's retaliation claim can survive given the exemption.	Opposing harassment constitutes protected activity; retaliation occurred as a result.	Retaliation claim is barred by the exemption as arising from employment.	Retaliation claim barred by the exemption.

Bishop of the Church of Jesus Christ of Latter-day Saints v. Amos, 483 U.S. 327 (1987) (interprets religious exemption breadth under § 2000e-1(a))
Hall v. Baptist Mem'l Health Care Corp., 215 F.3d 618 (6th Cir. 2000) (exemption to include organization’s activities, not just religious functions)
Little v. Wuerl, 929 F.2d 944 (3d Cir. 1991) (emphasizes broad scope of 'employment' exemption for religious organizations)
Saeemodarae v. Mercy Health Serv., 456 F. Supp. 2d 1021 (N.D. Iowa 2006) (retaliation within the exemption scope)
Lown v. Salvation Army, Inc., 393 F. Supp. 2d 223 (S.D.N.Y. 2005) (retaliation within religious-organization exemption)