The Hobby Lobby craft store chain has won a major legal victory in its battle to avoid compliance with the federal contraceptive and abortion drug mandate when the Tenth U.S. Circuit Court of Appeals ordered a U.S. District Court to re-examine Hobby Lobby’s petition for a temporary injunction blocking enforcement of the mandate against the firm. 

The full panel of the Tenth Circuit ruled that Hobby Lobby had “established a likelihood of success that their rights…are substantially burdened by the contraceptive-coverage requirement, and have established an irreparable harm.” 

The Court concluded that Hobby Lobby had legitimate claims under the Religious Freedom Restoration Act.  The judges ruled that the right to free exercise of religion includes corporations.    

“The protections of the Religion Clauses extend beyond the walls of a church, synagogue, or mosque to religiously motivated conduct, as well as religious belief,” the judges wrote.  “Religious conduct includes religious expression, which can be communicated by individuals and for-profit corporations alike.” 

“We are encouraged by this decision,” said David Green, founder of Hobby Lobby Stores.  “We believe that business owners should not have to choose between following their faith and following the law.”  

“My family and I believe very strongly in our conviction that life begins at conception,” Green explains.  “The emergency contraceptives that we would be forced to provide under this mandate are contrary to that conviction.” 

Hobby Lobby faced fines of $1.3 million per day for failing to comply with the contraceptive and abortion drug mandate.  That mandate, issued by Health and Human Services Secretary Kathleen Sebelius, took effect on January 1st.    

The mandate requires all health insurance plans issued in the United States to provide “free” coverage of all contraceptives approved by the Food and Drug Administration.  The FDA definition of “contraceptives” includes abortifacient drugs and devices.   

The Department of HHS just announced “revisions” to the rules governing how the mandate applies to religious organizations.  While organized churches and their “integrated auxiliaries” are exempt from the mandate, other religious institutions are not. 

Under the latest rules, groups who are operated as non-profit entities, hold themselves out as religious organizations, and oppose contraceptive coverage based on religious objections, will not have to “pay” for such coverage in their health insurance plans. 

However, such groups will still be required to cooperate with their insurers or third-party administrators to ensure that the “free” coverage of contraceptives is provided to their employees. 

Obama Administration officials have painted the latest religious exemption rules as a compromise.  Catholic and Southern Baptist religious leaders have derided the “accomodation” as a sham.   

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