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HOBBY LOBBY CASE. Autumn Moore & Lisa Meadows. MGMT 6680 – HR Management. introduction. Part 1 Facts about Sebelius vs. Hobby Lobby Part 2 Implications if Hobby Lobby Wins Part 3 Implications if Hobby Lobby Loses. part 1 Facts about Sebelius vs. Hobby Lobby. Case participants.
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HOBBY LOBBY CASE Autumn Moore & Lisa Meadows MGMT 6680 – HR Management
introduction • Part 1 • Facts about Sebelius vs. Hobby Lobby • Part 2 • Implications if Hobby Lobby Wins • Part 3 • Implications if Hobby Lobby Loses
Case participants • 9 Supreme Court Justices • 3 females and 6 males • Hobby Lobby • Owned by the Green family – belong to Southern Baptist church • Roughly 13,000 employees • Kathleen Sebelius • Health & Human Services Secretary • Oral arguments were March 25, 2014; ruling expected late June 2014
Hobby lobby’s stance • Opposed to 4 out of the 20 types of contraceptives • IUD made out of copper • IUD that includes progestin • Plan B (emergency contraceptive) • Ella (emergency contraceptive) • Opposed to related education and counseling • Believe the 4 forms cause abortions • Requirement to cover the 4 forms violates religious beliefs
Why people care • There are 2 main sides to this case • Hobby Lobby Supporters • Believe it is an infringement against 1st Amendment rights • Government Supporters • Believe a company should not be able to pick and choose what benefits the insurance policy covers
Questions before court • Does the Religious Freedom Restoration Act (1993) allow a for-profit corporation to deny contraceptive coverage based on the religious views of the owner • Are the 1st Amendment rights of non-profit owners more important than the rights of a corporation owner
Medical information • National Institute of Health, Mayo Clinic, and International Federation of OB/GYN all agree: • “the morning-after pill does not prevent implantation, the medical beginning of pregnancy” • It prevents fertilization the same way the 16 types of contraception Hobby Lobby approves of do • RU-486/Mifeprex (abortion pill) is not considered a contraceptive; therefore, is not covered under Affordable Care Act
Hr implications • Sotomayer regarding United States vs. Lee (1982) • Slippery slope effect regarding other healthcare related issues • Sets a precedent that companies could impose religious beliefs on employees • Decreases the pool of willing employees to work for Hobby Lobby • A lawsuit regarding sex discrimination would likely be filed • Opens the flood gates for other discrimination cases
implications cont. • Public backlash • Decrease in competitive advantage • Stance is hypocritical based on where their suppliers are located
Hr implications • Companies might eventually be forced to recognize same-sex marriage in regard to including domestic partners on health insurance coverage • Hobby Lobby will choose to pay the fine vs. provide coverage • Religious liberty loses meaningfulness • Opens up doors to government requiring other religious to go against their beliefs (Quaker example)
implications cont. • Maintains initialprecedent set for how corporations are viewed in future cases (would upholdDomino’s Pizza vs. McDonald) • Protects the religious rights of employees • Hobby Lobby could potentially have access to health records since it is self-insured (HIPAA loophole) • Potential to set precedent for limiting other 1st Amendment rights
Final thoughts • A company’s right to do something does not mean the company should do something…
recommendations • Provide an insurance policy that covers all forms of contraception • OR • Replace healthcare coverage with higher wages and a calibrated tax
references • http://www.scotusblog.com/case-files/cases/sebelius-v-hobby-lobby-stores-inc/ • http://mediamatters.org/research/2014/03/24/what-media-should-know-about-hobby-lobby-and-th/198591 • http://www.motherjones.com/politics/2014/03/hobby-lobby-supreme-court-obamacare • http://www.cnn.com/2014/03/25/politics/scotus-obamacare-contraception-mandate/ • http://ronpaulinstitute.org/archives/featured-articles/2013/december/08/hobby-lobby-case-is-about-rights,-not-contraceptives.aspx • http://en.wikipedia.org/wiki/Sebelius_v._Hobby_Lobby#Implications