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McKeon v. Mercy Healthcare Sacramento5/31/1996
PUGLIA, P.J.:
Plaintiff June McKeon appeals from a judgment of dismissal entered following the granting of summary judgment in favor of defendant Mercy Healthcare Sacramento. Plaintiff claims defendant discriminated against her in her employment on the basis of her race and sex. The trial court ruled her employment discrimination claim, based solely on the provisions of the Fair Employment and Housing Act ("FEHA" or "the Act"), fails as a matter of law because defendant is not an employer subject to the Act. We shall reverse.
The Act prohibits an employer from discriminating in employment with regard to certain protected classifications, including race and sex. (Gov. Code, § 12940, subd. (a); hereafter statutory references to sections of an undesignated code are to the Government Code.) The Act excludes from the definition of employer and thereby exempts from its provisions employers who are religious corporations not organized for private profit. ( § 12926, subd. (d)(1).)
As we explain, the Act's religious exemption applies only to nonprofit religious corporations organized primarily or exclusively for religious purposes under the Nonprofit Religious Corporation Law. (Corp. Code, § 9110 et seq.) Defendant Mercy Healthcare Sacramento is organized for public and charitable purposes under the Nonprofit Public Benefit Corporation Law. (Corp. Code, § 5110 et seq.) Accordingly, defendant is not exempt from the anti-discrimination provisions of the Act.
Plaintiff, a black female, is a registered nurse (RN). She was hired by defendant in November 1990 to work in that capacity at Mercy General Hospital. Mercy General Hospital is one of four hospitals owned and operated by defendant Mercy Healthcare Sacramento. Defendant and its parent company, Catholic Healthcare West, which is also organized as a nonprofit public benefit corporation, are sponsored by various Religious Orders (Sponsoring Congregations) of the Roman Catholic Church. The Sponsoring Congregations are organized under the auspices, and as an integral part, of the Roman Catholic Church for the purpose of furthering its teachings and faith. The corporate bylaws of defendant provide there shall be one voting member of the corporation -- Catholic Healthcare West.
It is defendant's precept to support and conduct corporate activities in a manner consistent with the philosophy of the Sponsoring Congregations, subject to the moral and ethical principles of the Roman Catholic Church, and with full adherence to the Ethical and Religious Directives for Catholic Health Facilities.
Despite its significant religious affiliations, defendant is not incorporated under California law as a nonprofit religious corporation. Defendant's articles of incorporation state its purposes are public and charitable. Defendant offers medical services to the entire community, regardless of age, nationality, sex or creed. Like any secular hospital, defendant's principal functions are to provide medical care and healing. Profession of Catholic faith is not required of patients nor of employees, although defendant will not permit any medical service or procedure to be performed in any of its facilities which is contrary to the teachings of the Roman Catholic Church.
In March 1993, defendant established the new job category of RN III which offered a promotional opportunity for plaintiff. Plaintiff applied for the promotion, but alleges her application was deliberately stalled in order to allow defendant to hire two Caucasian males for the two RN III positions then open.
Plaintiff filed a charge of employment discrimination with the California Department of Fair Employment and Housing. In Ja
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