Court:Judges cannot get involved in church dispute

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In a groundbreaking case, the Supreme Court on Wednesday held for the first time that religious employees of a church cannot sue for employment discrimination.

But the court's unanimous decision in a case from Michigan did not specify the distinction between a secular employee, who can take advantage of the government's protection from discrimination and retaliation, and a religious employee, who can't.

It was, nevertheless, the first time the high court has acknowledged the existence of a "ministerial exception" to anti-discrimination laws — a doctrine developed in lower court rulings. This doctrine says the First Amendment's guarantee of freedom of religion shields churches and their operations from the reach of such protective laws when the issue involves employees of these institutions.

The case came before the court because the federal Equal Employment Opportunity Commission sued the Hosanna-Tabor Evangelical Lutheran Church and School of Redford, Mich., on behalf of employee Cheryl Perich, over her firing, which happened after she complained of discrimination under the Americans with Disabilities Act.

Writing the court's opinion, Chief Justice John Roberts said allowing anti-discrimination lawsuits against religious organizations could end up forcing churches to take religious leaders they no longer want.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.

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