RECENT DEVELOPMENTS
Employee Relations
By Richard R.
Hammar,
J.D., LL.M., CPA
© Copyright 1991, 1998 by Church Law & Tax Report.
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Matthews, NC 28106. Reference Code: m42 c0291
A Wisconsin appeals court ruled that a state
agency's investigation into a dismissed teacher's complaint of age
discrimination did not violate the constitutional rights of a
church-operated school. State law prohibits most employers,
including church schools, from discriminating in employment
decisions on the basis of age. A church school terminated a teacher
whom it had employed for 16 years. The school cited "problems with
the teacher's classroom management, her professionalism, and her
maintenance of a prayerful environment." The teacher felt that she
was fired on account of her age (56), and she filed a complaint
with the state equal rights agency. The agency investigated the
termination, and concluded that there was reason to believe that
the teacher had been a victim of age discrimination. This
conclusion was based primarily on the fact that the school had
given the teacher an excellent evaluation less than a year prior to
her dismissal. The agency ordered a hearing to resolve the matter,
but the school filed a lawsuit seeking to prevent any hearing on
the ground that a hearing into the basis for its dismissal of one
of its teachers would violate its constitutional right to religious
freedom. A trial court rejected the school's position, and the
school appealed. A state appeals court concluded that the school's
constitutional rights would not be violated by a hearing addressing
the charge of age discrimination. The court relied solely on a 1986
decision of the United States Supreme Court in a similar case. The
Supreme Court had ruled that an Ohio civil rights agency "violates
no constitutional rights by merely investigating the circumstances
of [the employee's] discharge in this case, if only to ascertain
whether the ascribed religious-based reason was in fact the reason
for the discharge." Based on this language, the Wisconsin court
concluded that "the state agency charged with enforcing the state's
employment laws can investigate discrimination complaints against
a religious institution without violating the first amendment." The
court emphasized that the school "is still free to discharge
employees for religious reasons," and that the school "will prevail
in the [agency] investigation if [the dismissed teacher] cannot
prove that the religious-based reason given for her discharge was
only a pretext for age discrimination." As a result, the agency
hearing into the former teacher's complaint of age discrimination
will proceed. If the school can establish that it dismissed the
teacher for "religious" reasons (e.g., failure to maintain a
"prayerful environment" in the classroom), then it will prevail.
This case also illustrates the problems associated with employee
evaluations. While periodic employee evaluations are an excellent
practice, they must be done objectively. Employers all too often
"inflate" such evaluations in order to avoid conflict. This case
illustrates the legal problems that can be associated with such a
practice. Sacred Heart School Board v. Labor & Industry Review
Commission, 460 N.W.2d 430 (Wis. App. 1990).