In 2012 and 2013, three closely held for-profit corporations—Hobby Lobby Stores, Inc., Mardel, Inc., and Conestoga Wood Specialties Corp.—along with their owners, the Green and Hahn families, filed suits against the Secretary of Health and Human Services and other federal officials.
Hobby Lobby operates over 500 stores with more than 13,000 employees. Mardel runs 35 Christian bookstores with nearly 400 employees. Conestoga employs about 950 people in its woodworking business. The Green family owns and operates Hobby Lobby and Mardel. The Hahn family owns and operates Conestoga.
Both families hold sincere Christian religious beliefs that life begins at conception. Under the Patient Protection and Affordable Care Act of 2010, employers with 50 or more full-time employees must provide group health insurance covering certain preventive services for women, including 20 FDA-approved contraceptive methods, without cost sharing. The Department of Health and Human Services issued regulations requiring coverage of all 20 methods. The Greens and Hahns object specifically to four methods because they believe these may prevent implantation of a fertilized egg, which they view as destroying an embryo in violation of their faith.
If the companies fail to provide the required coverage, they face penalties of $100 per day per affected employee, potentially reaching $475 million annually for Hobby Lobby, $33 million for Conestoga, and $15 million for Mardel. Alternatively, dropping coverage entirely could trigger penalties of $2,000 per employee per year. The companies and owners sued under the Religious Freedom Restoration Act of 1993, seeking to enjoin the mandate as applied to the four objected-to methods.
The District Court for the Western District of Oklahoma denied a preliminary injunction to the Greens and their companies. The Tenth Circuit reversed, holding that the corporations could assert RFRA claims. In the Eastern District of Pennsylvania, the District Court denied a preliminary injunction to the Hahns and Conestoga. The Third Circuit affirmed, concluding that for-profit corporations cannot exercise religion under RFRA. The Supreme Court granted certiorari and consolidated the cases.
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