A federal appeals court revived a legal challenge to a New York law Thursday that prohibits retaliation or consideration against retaining employees over their “reproductive health” decisions, a term that includes having an abortion.
The case, CompassCare v. Hochul, brought by faith-based organizations, implicates unresolved First Amendment questions about the balance between antidiscrimination laws and protections for religious employers.
The U.S. Court of Appeals for the 2nd Circuit ruled in a 43-page decision that a lower court must reconsider an earlier dismissal of claims by CompassCare, a Rochester-based pregnancy crisis center, along with First Bible Baptist Church and the National Institute of Family and Life Advocates.
The groups argue that the 2019 law, known as SB 660, forces them to associate with employees whose beliefs and actions conflict with their religious missions, violating their constitutional rights.
The law under challenge
SB 660 prohibits employers from discriminating or retaliating against employees for their “reproductive health decision-making” and mandates that employers inform workers of these rights in employee handbooks. The plaintiffs say the law burdens their religious freedom by compelling them to hire individuals whose actions may undermine their mission to promote anti-abortion values and abstain from abortion.
U.S. District Judge Thomas McAvoy previously blocked the enforcement of the handbook notice requirement, finding it amounted to compelled speech, but dismissed the broader claims about associational rights, deeming any effect on First Amendment protections “incidental.”
However, the 2nd Circuit’s unanimous three-judge panel cited a precedent it set in 2023 when it revived a similar challenge to the same law by another pregnancy crisis center operator. In that case, the court found that the First Amendment’s right to freedom of association shields organizations from being forced to employ individuals if doing so undermines their core mission.
Constitutional questions and religious freedom
The appeals court directed McAvoy to reevaluate whether CompassCare and the other plaintiffs could demonstrate that the law burdens their associational rights. Kevin Theriot, senior counsel with Alliance Defending Freedom, which represents the plaintiffs, applauded the ruling as a significant step in protecting religious organizations’ autonomy.
“Religious employers are free to hire individuals who share their core beliefs, and no government can force faith-based organizations to contradict those convictions,” Theriot said.
Notably, the appeals court’s ruling also reversed McAvoy’s earlier decision to block the handbook requirement, saying it simply requires employers to disclose the law’s existence and does not compel them to endorse its principles.
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The New York Attorney General’s Office, led by Democrat Letitia James, defended the law, though it declined to comment on the recent ruling.
The appeals court’s decision is the latest development in a series of legal battles over SB 660. A similar case challenging the law is also pending after the 2nd Circuit revived it last year.