Bethany Christian Services v. Corbin

Case Description

For the first time since Bethany Christian Services began serving refugees in 1962 and became a contractor of the state of Michigan in 1981, the organization was denied refugee-resettlement services contracts because of their religious employment practices, even though federal law has long supported this civil right.

For more than 50 years, the United States government has provided safe harbor for international refugees escaping violence or cultural and religious persecution in their countries. Since 1981, Bethany has provided refugee-resettlement services in Michigan and by 1984 was the largest unaccompanied refugee minor service provider in Michigan.

In late 2023, state of Michigan officials in its Office of Global Michigan (OGM) took issue with Bethany’s practice of requiring its employees to affirm the organization’s statement of faith. The OGM then denied grant funding to Bethany in 2024.

After repeated, unsuccessful efforts to discuss the situation with the OGM, Bethany filed a lawsuit against the state of Michigan for discriminating against the organization because of its religious hiring practices. Bethany is asking the federal court to intervene and enjoin the OGM from ending the existing contracts pending a final resolution of its religious discrimination claims. Bethany Christian Services filed the lawsuit in the federal district court in Grand Rapids against the directors of the state agencies responsible for administering federal grant for refugee-resettlement services: the Michigan Department of Labor and Economic Opportunity and the OGM.

The lawsuit states the government’s actions violate Bethany’s right to the free exercise of religion guaranteed by the First Amendment of the United States Constitution and the Civil Rights Act of 1871. By denying funding for Bethany’s refugee-resettlement services, Michigan officials are blocking critical social services to vulnerable children and families, and jeopardizing jobs at Bethany.

“Federal law is clear, and the courts have repeatedly affirmed that faith-based 501(c)3 nonprofit organizations, like ours, can hire staff and select leaders who share the organization’s faith mission. Federal law affirms that Muslim nonprofits can hire Muslims; Jewish nonprofits can hire people of Jewish faith; and Christian nonprofits can hire Christians. For 50 years, this has been a long-standing American civil right that has never been controversial. We are disappointed that the state of Michigan would engage in religious discrimination, but we are confident that the courts will intervene and correct this injustice so we can continue serving men, women, and children across the state. Bethany remains deeply committed to serving vulnerable children and families, ensuring they have the support they need to thrive, even as we work to protect our legal rights,” said Nhung Hurst, General Counsel for Bethany Christian Services.

Bethany also filed for a preliminary injunction, asking the court to order the state to “preserve the status quo regarding Bethany Christian’s provision of refugee-related services in [Michigan] under the contracts in effect on September 9, 2024, and [to] not transition services to other providers from Bethany Christian pending final judgment” by the district court. On the eve of the court hearing in late September 2024, the state of Michigan agreed to an injunction, restoring temporarily most of the grants Bethany had already won.

The state has twice filed a motion to dismiss the lawsuit—first on the original complaint and then on Bethany’s amended complaint—claiming Bethany has not stated a First Amendment claim against it upon which relief can be granted. Bethany defeated the first and awaits a ruling on the second after filing extensive legal arguments.