Founded and privately held by CEO David Green and his family, Hobby Lobby is one of the nation's leading arts and crafts chains, operating over 500 stores in forty- one states with more than 13,000 full-time employees who are eligible for health insurance coverage. 4 Despite its tremendous success, Hobby Lobby is currently in the midst of a battle to preserve its religious liberty. 5
In September 2012, Hobby Lobby and a Christian bookstore chain, Mardel, filed a lawsuit in the Western District of Oklahoma, challenging on various religious grounds the Patient Protection and Affordable Care Act's (PPACA) 6 requirement that insurance provided by employers include coverage for women's preventive screenings and health care, including contraception, at no additional cost to employees. 7 Green has spoken about his family's dilemma, explaining that, "(b)y being required to make a choice between sacrificing our faith [and] paying millions of dollars in fines, we essentially must choose which poison pill to swallow." 8 Indeed, with 13,000 employees and a proposed fine of $ 100 per employee per day, Hobby Lobby's failure to comply with the mandate would equate to $ 1.3 million in daily fines. 9 Following
the U.S. Supreme Court's denial of a preliminary injunction to prevent enforcement of the contraception-coverage requirement on December 26, 2012, 10 the Green family released a statement disclosing its intent to defy the law despite the significant fines. 11
Hobby Lobby is representative of the numerous religious employers across the United States who have filed lawsuits challenging the PPACA's contraceptive mandate. Although the majority of these cases have been dismissed in the district courts for various procedural reasons, a few have made their way to the federal courts of appeals. 12 Regarding the Hobby Lobby lawsuit, Pastor Rick Warren commented:
I predict that the battle to preserve religious liberty for all . . . will likely become the civil rights movement of this decade. If it takes a popular movement to reign in overreaching government, then Hobby Lobby's courageous stand, in the face of enormous pressure and fines, will likely be considered the Birmingham bus boycott . . . . Regardless of your faith, you should pay attention to this landmark case, and pray for a clear victory for freedom of conscience. 13
...
Part I of this Note traces the background and development of section 2713 of the
PPACA. Part II discusses the popular variations of exemptions to state-mandated prescription contraceptive coverage in comparison to the exemption adopted by the Department of Health and Human Services (HHS). 16 As part of this discussion, Part II briefly outlines the only two state high court decisions that have dealt with the issue of contraceptive mandates and identifies various weak points in the opinions that undermine their value as "precedent" for the U.S. Supreme Court. For example, in
Catholic Charities of Sacramento v. Superior Court, the California Supreme Court merely skimmed the surface of eight constitutional challenges asserted by a nonprofit organization in order to avoid an undoubtedly lengthy, but adequate and fair assessment of the claims. 17 Similarly, in
Catholic Charities of the Diocese of Albany v. Serio, the New York Court of Appeals was sharply dismissive of the plaintiff's claims. 18 Part II describes the nationwide discontent with the current exemption and identifies the potential economic and regulatory consequences of limiting it to such a narrow scope.
Finally, Part III justifies the need for a broader exemption. First, it advocates for passage of the "Notice of Proposed Rulemaking" (NPRM) announced February 1, 2013, by the Department of Health and Human Services intended to moderately broaden the scope of the religious employer exemption to the PPACA to reach certain nonprofit organizations. 19 Part III also argues for further expansion of those proposed rules to ensure that Christian for-profit organizations like Hobby Lobby are not forced to comply with a law that goes against their religious beliefs.