*1100 Opinion
In this case, we consider whether a Catholic hospital exempt from the Fair Employment and Housing Act (the FEHA), Government Code section 12900 et seq.,
1
because it is “a religious corporation . . . not organized for private profit” (§ 12926, subd. (d)) and therefore not an “employer” within the meaning of the FEHA, may nonetheless be liable for terminating an employee in violation of public policy (see
Tameny v. Atlantic Richfield Co.
(1980)
I. Statement of Facts
Defendant CHW Medical Foundation (CHWMF) is organized for the delivery of health care services. It was formed as a nonprofit public benefit corporation by three “Sponsoring Congregations” of Roman Catholic religious communities of women: the Sisters of Mercy of Burlingame, the Sisters of Mercy of Auburn and the Sisters of St. Dominic of the Most Holy Rosary of Adrian, Michigan. Its “Sponsoring Congregations” are organized under the auspices of the Roman Catholic Church for the purpose of furthering the church’s teachings and faith. Its articles of incorporation require it to conduct its activities “in a manner which is consistent with and supportive of the Mission and Corporate Philosophy” of the Sponsoring Congregations, and “in a manner which conforms to the Ethical and Religious Directives for Catholic Health Facilities as may, from time to time, be approved by the National Conference for Catholic Bishops . . . .” Its bylaws provide that its activities “shall be carried on subject to the moral and *1101 ethical principles of the Roman Catholic Church.” Its board of directors, and its officers, must support the Sponsoring Congregations’ mission of healing and providing services to the sick and poor in the Catholic moral tradition and must support the Ethical and Religious Directives for Catholic Health Services. CHWMF is exempt from taxation by the State of California as a nonprofit religious or charitable institution (Rev. & Tax. Code, § 23701d), and is exempt from federal taxation as an entity operated by the Roman Catholic Church in the United States. However, CHWMF does not provide services only to patients of the Roman Catholic faith, does not have a chaplaincy or chapel, does not sponsor or conduct religious services, prayer groups or Bible studies on its premises and does not publicly place or display Bibles, crucifixes or any other religious symbols.
CHWMF hired plaintiff Terence Silo in July 1991 to be a file clerk in its Sacramento medical clinic’s medical records department. In November of 1992, he experienced a religious conversion in which, as he testified, “I gave my life to Christ, . . . my heart was filled with the Holy Spirit, and my life was changed.” After this conversion experience, he began to share his experience and his faith with others at his workplace. In January of 1993, Silo met with defendants Mary King, CHWMF’s human resources manager, and Ruth Ann Lewis, the manager of the medical records department. He was told of two complaints, one by a fellow employee who reported that he had asked her not to “use the name of God in vain” and the other from a patient who complained that Silo was “preaching” at him or her. He was counseled by King and Lewis that he should not use the word “God . . . unless it’s off the clock.”
Meanwhile Silo was given a less than satisfactory performance evaluation in December 1992. In February 1993 he was told his work was not getting done on time and he was placed on probation, with a warning that he would be discharged if there was no improvement. He was informed on April 23, 1993, that his work performance had improved but that he would continue on probation.
On April 30, 1993, Silo was summoned to another meeting with King and Lewis. They informed him that he was being terminated and gave him a “termination paper” that purported to explain the reasons for his discharge. According to that document, Silo “has been counseled three times previously . . . regarding Soul Saving [sic] on clinic premises. On the last occasion, he was told that if this continued he would be terminated.” In spite of this warning, the document stated that there were three known incidents in April of 1993 in which he continued to “preach” and “Soul Save.” On all three occasions, “he was asked to stop but continued preaching. Three of the *1102 employees involved have complained of harassment.” The document also recited that Silo was on “probationary status for poor work performance.” Silo, in his subsequent testimony, denied harassing the employees in question and insisted that he had not been asked to stop his religious discussions. He also claimed that the April 1993 incidents occurred during his lunch hour, i.e., off the clock.
Silo filed a timely complaint with the California Department of Fair Employment and Housing against his employer and, after receiving a right-to-sue letter, filed suit against CHWMF, King, and Lewis. Silo’s complaint alleged six causes of action: employment discrimination in violation of public policy, employment discrimination in violation of the FEHA (§ 12920, subd. (a)), breach of contract, breach of the implied covenant of good faith and fair dealing, intentional infliction of emotional distress, and malicious prosecution based on CHWMF’s appeal of Silo’s unemployment benefits. Defendants successfully demurred to the cause of action for intentional infliction of emotional distress. CHWMF moved for summary adjudication on all remaining causes of action except those based on contract. King and Lewis moved for summary judgment on the employment discrimination claim under the FEHA, the only remaining cause of action in which they were named as defendants. Defendants sought summary judgment on the FEHA cause of action, contending that CHWMF, as a nonprofit religious corporation, was exempt from the FEHA as a matter of law and therefore King and Lewis were not acting as agents of an entity subject to the FEHA. They argued the first cause of action must fail because there was no clear public policy against a religious employer engaging in religious discrimination.
The court denied the motion for summary judgment on the ground that CHWMF was organized under California law as a nonprofit public benefit corporation, not a nonprofit religious corporation and it was therefore unclear whether the FEHA exemption found in section 12926, subdivision (d) applied, leaving a material issue of fact as to whether CHWMF’s purposes and functions were essentially religious.
The case was tried before a jury. By special verdict, the jury found that defendants unlawfully discriminated against Silo based on his religious beliefs and practices in violation of the FEHA and that they terminated his employment in violation of public policy. The jury found no breach of contract and no breach of the implied covenant of good faith and fair dealing. The jury awarded Silo $6,305 in economic damages and $1 in noneconomic damages. The court subsequently awarded Silo $155,245.75 in attorney fees pursuant to Code of Civil Procedure section 1021.5.
The Court of Appeal originally affirmed the judgment, holding that CHWMF was in fact an “employer” under the FEHA. We granted review
*1103
and eventually retransferred the case to the Court of Appeal with directions to vacate its prior decision and to reconsider the cause in light of
Kelly v. Methodist Hospital of So. California
(2000)
In
Kelly,
we rejected the argument that a nonprofit religious organization cannot qualify for a religious exemption if it is engaged in the secular business of running a hospital rather than “religious indoctrination or propagation.” (Ke
lly, supra,
On remand, the Court of Appeal held that CHWMF was a religious employer exempt from the FEHA, agreeing that the undisputed evidence established that CHWMF was a religious corporation not organized for private profit. But the Court of Appeal further concluded that there was no bar to Silo’s claim of termination in violation of public policy. The court reasoned that, notwithstanding the FEHA exemption, there was a policy against religious discrimination in employment delineated in article I, section 8 of the California Constitution. The court found this policy sufficiently fundamental and beneficial to support a wrongful termination claim and therefore affirmed the verdict against CHWMF.
We granted review to decide whether, as a matter of law, CHWMF may be held liable in tort for wrongfully terminating an employee, in violation of the public policy against religious discrimination, for engaging in religious speech in the workplace.
*1104 II. Discussion
“[W]hile an at-will employee may be terminated for no reason, or for an arbitrary or irrational reason, there can be no right to terminate for an unlawful reason or a purpose that contravenes fundamental public policy.”
(Gantt
v.
Sentry Insurance
(1992)
We note at the outset that CHWMF’s exemption from FEHA liability does not necessarily mean that it is without tort liability for terminating Silo in violation of public policy. In
Rojo
v.
Kliger
(1990)
*1105
In the present case, although CHWMF is a religious organization exempt from the FEHA and Silo therefore has no basis in the FEHA for a public policy claim, he argues that a fundamental policy against religious discrimination may be found in article I, section 8 of the California Constitution, which states that “[a] person may not be disqualified from entering or pursuing a business, profession, vocation, or employment because of sex, race,
creed,
color, or national or ethnic origin.” (Italics added.) We have held that this constitutional provision articulates a fundamental public policy against sex discrimination sufficient to sustain a wrongful discharge action. (See
Rojo v. Kliger, supra,
While Silo acknowledges that such prohibition of religious discrimination does not compel an employer to acquiesce to any and all of an employee’s religious practices, he asserts that the employer must reasonably accommodate such practices. As this court explained in
Rankins
v.
Commission on Professional Competence
(1979)
Silo argues that CHWMF did not reasonably accommodate his religious practices. He concedes that CHWMF had the right to terminate him for proselytizing in a manner that interfered with the proper performance of his employment duties (see
Knight v. Connecticut Dept, of Public Health
(2d Cir. 2001)
CHWMF argues that it has a countervailing right as an essentially religious organization to choose employees who will further its religious mission free from government interference. It locates that right in the free exercise and establishment clauses of the First Amendment to the United States Constitution and article I, section 4 of the California Constitution.
The clearest cases of judicial recognition of this constitutional right of religious organizations to choose their own employees have been in the employment of clergy. For example, in
Schmoll v. Chapman University
(1999)
The court also concluded that judicial intervention would violate the free exercise clause, which “ ‘is guaranteed not only to individuals but also to churches in their collective capacities, which must have “power to decide for themselves, free from state interference, matters of church government as well as those of faith and doctrine.” ’ ”
(Schmoll
v.
Chapman University, supra,
Other courts, both state and federal, have likewise concluded that selection and termination of clergy or ecclesiastical leadership should be essentially off-limits to courts. (See, e.g.,
Young v. N. Ill. Conf. of United Methodist Church
(7th Cir. 1994)
The right or capacity of religious employers to engage in religious discrimination against employees not performing obviously religious functions has also been upheld. In
Corporation of Presiding Bishop v. Amos
(1987)
The court unanimously rejected his contention. Applying the three-part test set out in
Lemon
v.
Kurtzman, supra,
*1108 The court also found that the exemption passed muster under the other two prongs of the Lemon test: it did not have the effect of promoting government sponsorship of religion, but merely allowed religious organizations to advance their own religious objectives. It also did not lead to excessive government entanglement in religion but rather further separated government and religion. (Amos, supra, 483 U.S. at pp. 337-339 [107 S.Ct. at pp. 2869-2870].)
Against this background, we return to the question before us: Is a nonprofit religious organization’s termination of an employee for what it considered objectionable religious speech contrary to a fundamental public policy of the state “tethered to” a constitutional or statutory provision?
(Gantt, supra,
Although article I, section 8 of the California Constitution expresses a fundamental policy against religious discrimination in employment and requires reasonable accommodation of employees’ religious practices, the state and federal free exercise and establishment clauses give religious organizations some degree of latitude to choose their employees in order to define their religious mission. The FEHA, in section 12926, subdivision (d), expressly exempts nonprofit religious organizations from liability for religious and other forms of discrimination in order to further that goal.
2
As
Amos, supra,
Silo’s argument that he was merely a low-level employee who did not help to shape CHWMF’s religious message does not assist him. CHWMF’s problem was not that Silo failed to properly perform a religious function that had been assigned to him, but rather that he was engaging in religious communications—proselytizing and other forms of religious speech—that the employer neither authorized nor considered appropriate. Nor does the
*1109
fact that a religious organization engages in the secular task of running a medical clinic negate its religious character. As we stated in
Kelly, supra,
Thus, even assuming that Silo engaged in such speech only during his work breaks, we can discern no fundamental public policy that places limits on a religious employer’s right to control such speech. In other words, in reading the California Constitution, article I, section 8’s prohibition against religious discrimination in employment together with the free exercise and establishment clauses of the state and federal Constitutions, and with the FEHA’s explicit exemption of religious organizations from liability for such discrimination, we cannot say there is a fundamental and substantial public policy that prohibits a religious employer from terminating an employee because of his or her objectionable religious speech in the workplace.
In support of his position, Silo cites
E.E.O.C. v. Pacific Press Pub. Ass’n
(9th Cir. 1982)
We do not consider in this case whether a religious employer would be liable in tort for terminating an employee in violation of a public policy against sexual discrimination found in article I, section 8 of the California Constitution, despite the FEHA exemption. But it is evident that restricting a
*1110
religious employer’s ability to control religious speech in the workplace raises different constitutional issues than does a prohibition of sexual discrimination, particularly when, as in the case of
E. E. O. C. v. Pacific Press Pub. Ass’n, supra,
Silo points to the 1999 addition of section 12926.2, which states, in subdivision (c), that except as otherwise provided, “‘employer’, includes a religious corporation or association with respect to persons employed by the religious association or corporation to perform duties, other than religious duties, at a health care facility operated by the religious association or corporation for the provision of health care that is not restricted to adherents of the religion that established the association or corporation.” Although Silo claims the amendment is merely clarifying existing law, it plainly contradicts and overrules our interpretation of the FEHA religious employer exemption in
McKeon, supra,
III. Disposition
The judgment of the Court of Appeal is reversed and the cause is remanded for proceedings consistent with this opinion.
*1111 George, C. J., Kennard, J., Baxter, J., Werdegar, J., Chin, J., and Brown, J., concurred.
Notes
All statutory references are to the Government Code unless otherwise indicated.
Although the EEHA’s exemption of religious organizations is broader than title VII’s, inasmuch as it insulates qualifying religious employers from not merely religious discrimination liability but all forms of FEHA liability, all we consider in this case is the exemption from religious discrimination.
