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Fourth Circuit affirms discrimination judgment against Catholic Relief Services in same-sex spousal-benefits case

The U.S. Court of Appeals for the Fourth Circuit affirmed a district-court judgment holding Catholic Relief Services liable under Title VII and Maryland employment law after it ended health coverage for an employee's same-sex spouse. The parties had stipulated to $60,000 in compensatory damages if liability was upheld. The appellate majority rejected Catholic Relief Services' statutory and constitutional defenses, including its argument that religious-employer protections shielded the benefits decision. The court dismissed the organization's Equal Pay Act appeal as moot because affirming the other claims left the damages unchanged.

Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.

Donor relevance

Why this matters

The ruling is a substantive appellate outcome rather than a new allegation. It confirms legal liability at the Fourth Circuit level and clarifies limits on religious-employer defenses for nonministerial employees, creating potential employment-policy and governance implications for Catholic Relief Services and other faith-based charities.

Attribution

Who reported or established this

The former employee brought the discrimination claims. The district court entered judgment for him, and a divided Fourth Circuit panel affirmed liability under Title VII and Maryland law.

Evidence limits

What remains unverified

No Halo has not independently reviewed the underlying employment and benefits records or established whether Catholic Relief Services will seek rehearing or U.S. Supreme Court review. The ruling addresses the claims and record in this case, not the organization's wider employment practices.

Right of reply

Organization response

Catholic Relief Services argued that religious-employer exemptions, the Religious Freedom Restoration Act and the First Amendment protected its decision. The appellate majority rejected those defenses; one judge dissented. No separate post-ruling statement from the organization was located in the consulted material.

Classification

How No Halo records this event

Event type: Judgment. Current state: Resolved. No Halo preserves the current procedural state rather than treating every mention as a finding.

Published October 16, 2026 · Last verified October 18, 2026. See an error or a later outcome? Submit a correction or right of reply.