Judge Rules Catholic Aid Group Discriminated Against Gay Employee by Denying Spouse Health Coverage

A Catholic aid organization in Baltimore has been ordered to pay $60,000 to a former employee after a federal judge ruled the group violated his rights by denying health coverage to his same-sex spouse.

The employee, known in court documents as "John Doe," began working as a program data analyst for Catholic Relief Services (CRS) in June 2016. At the time of his hiring, he was told his husband would be included in his employee health plan. But by November 2016, CRS backtracked, telling Doe that same-sex spouses weren’t eligible and his husband’s coverage would end by the close of the month.

Doe fought the decision for nearly a year, but in October 2017, his spouse was dropped from the plan. He alleges CRS even threatened to fire him for continuing to raise the issue. Talk about being between a rock and a hard place—either drop your spouse's coverage or risk losing your job entirely.

Doe sued, citing discrimination under the Maryland Fair Employment Practices Act (MFEPA), among other statutes. Catholic Relief Services argued they were exempt as a religious entity, since state law provides certain protections for faith-based organizations. But U.S. District Judge Julie Rubin determined Doe's roles at CRS were not religious in nature and did not directly further the organization's core mission, meaning the exemption didn’t apply.

The ruling marks the first time Maryland’s Supreme Court’s test for religious exemptions under MFEPA has been applied. Judge Rubin found CRS violated Doe’s rights and ordered them to pay $60,000 in damages.

In a statement, Doe said he was "very happy with Judge Rubin’s ruling and honored to be part of such a precedent-setting case that clarifies legal protections for LGBTQ+ workers in Maryland." He hopes CRS will use the ruling as a chance to treat employees in same-sex marriages with equal dignity.

Doe had previously won a related case in 2022, when a judge ruled in his favor under the Civil Rights Act and the Equal Pay Act.

CRS has not responded to requests for comment. The organization, the official international humanitarian arm of the U.S. Catholic community, has faced tough times recently, including program shutdowns and layoffs after significant cuts to U.S. Agency for International Development (USAID) funding. In 2023, USAID supported about half of the group’s $1.2 billion budget.

With government support dwindling and court rulings piling up, CRS is definitely facing more than the usual collection plate woes.