Burwell v. Hobby Lobby held that applying the contraceptive-coverage mandate to closely held companies with religious objections violated RFRA. The Court did not decide a constitutional Free Exercise claim. It assumed the government had an important interest in access to contraception, but ruled that the mandate was not the least restrictive way to serve that interest for these employers.
Hobby Lobby Stores, Mardel, and Conestoga Wood Specialties were closely held companies whose owners objected on religious grounds to covering four contraceptive methods under federal health-plan rules. The companies challenged the mandate under RFRA and the Free Exercise Clause. The Tenth Circuit sided with Hobby Lobby, while the Third Circuit rejected Conestoga Wood's claim. The Supreme Court reviewed the consolidated disputes to decide whether RFRA protected the objecting companies from the mandate.
Does RFRA allow closely held for-profit corporations to obtain an exemption from the federal contraceptive-coverage mandate when the owners object on religious grounds?
As applied to closely held for-profit corporations, HHS regulations requiring employer health plans to cover the challenged contraceptive methods violated the Religious Freedom Restoration Act. The Court assumed without deciding that the government had a compelling interest, but held that the mandate was not the least restrictive means for these objecting employers.
How the justices lined up in this decision.
The ruling allowed some closely held for-profit employers to seek RFRA exemptions from the contraceptive-coverage mandate. Employees affected by objecting employers could face changes in how coverage was provided, while the government and insurers had to use accommodation systems to preserve access. The decision also made RFRA a more important tool for religious-exemption claims by some businesses, while the Court said it was addressing the contraceptive mandate rather than every religious objection to federal law.
5-4. Justice Samuel A. Alito, Jr. wrote the majority opinion, joined by Chief Justice John G. Roberts, Jr. and Justices Antonin Scalia, Anthony M. Kennedy, and Clarence Thomas. Justice Kennedy concurred. Justice Ruth Bader Ginsburg dissented, joined by Justice Sonia Sotomayor and joined in part by Justices Stephen G. Breyer and Elena Kagan; Justices Breyer and Kagan also filed a separate dissent.