A U.S. appeals court has ruled in favor of the Union of Orthodox Jewish Congregations of America (OU), shielding the organization from a job-related lawsuit filed by a former kosher inspector. The ruling, made by the 9th U.S. Circuit Court of Appeals, determined that the employee, Yaakov Markel, whose work ensured compliance with Jewish dietary law, cannot pursue claims of wage theft and fraud due to the religious nature of his role within the nonprofit.
In a unanimous decision on Monday, the three-judge panel affirmed a lower court ruling that applied the legal doctrine known as the “ministerial exception.” This exception protects religious organizations from lawsuits by employees whose duties are integral to their religious mission. Markel’s role as a kosher inspector, or mashgiach, was deemed central to the OU’s religious activities, which includes overseeing the largest kosher food certification program in the U.S.
Markel had filed a lawsuit accusing the OU and his former supervisor of failing to pay overtime and of fraudulently reneging on a promised promotion and raise. He served as a mashgiach, a position responsible for ensuring that food products met the strict standards of Jewish dietary law.
However, the court ruled that, as a religious position within a religious nonprofit, Markel’s claims were barred by the ministerial exception. U.S. Circuit Judge Ryan Nelson, writing for the court, emphasized that the exception applies in cases where the employee’s duties are closely tied to the religious mission of the organization. “Failure to apply the ministerial exception to a mashgiach would denigrate the importance of keeping kosher to Orthodox Judaism,” he said in his opinion.
The decision aligns with a prior ruling by the 4th U.S. Circuit Court of Appeals, which also upheld the application of the ministerial exception in a case involving a mashgiach at an elder care facility. The ruling builds on a series of U.S. Supreme Court decisions that have broadened the scope of the exception, particularly in cases involving religious school employees.
The OU, which certifies kosher products and uses revenue from its certification program to fund various religious, advocacy, and community initiatives, requires that its mashgiachs be observant Orthodox Jews. These inspectors interpret and apply Jewish dietary law, often consulting with rabbis and other religious authorities.
Judge Nelson noted that Markel’s role was essential to the religious mission of the OU, underscoring the significance of keeping kosher within Orthodox Judaism. The court found that the religious nature of Markel’s duties protected the organization from facing legal claims related to his employment.
In a brief concurring opinion, U.S. Circuit Judge Gabriel Sanchez expressed agreement with the judgment but raised concerns about the broad application of the ministerial exception. He pointed out that while the Supreme Court had never fully endorsed an all-encompassing approach, it had outlined a “flexible” method for determining which employees qualify for the exception. This leaves room for future legal challenges on the scope of the exception in cases involving religious organizations.
The ruling sets an important precedent for religious organizations facing similar lawsuits. It reinforces the principle that employees whose roles directly support the religious mission of an organization may be barred from pursuing job-related claims, even if those claims concern wage issues or contract disputes.
As religious groups face increasing legal scrutiny regarding employment practices, the court’s decision highlights the unique intersection of religious rights and employment law, particularly for nonprofit organizations engaged in religious activities.
The case is Markel v. Union of Orthodox Jewish Congregations of America, 9th U.S. Circuit Court of Appeals, No. 23-55088. Attorneys for Markel include Michael Friedman of Friedman Law, and attorneys for the OU are Leonora Schloss of Jackson Lewis.
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