In April, 2011, an Indiana woman's teaching contract was not renewed by the Catholic school where she had taught for eight years. The reason allegedly given to her was that she had undergone in vitro fertility treatments, which is against the doctrine of the Catholic Church, and that as a teacher at the school she was required to abide by that doctrine. She filed a lawsuit against the diocese claiming gender and disability discrimination.
This case is similar to one filed in Missouri. In that case, a woman claimed she was discriminated against because of her disability when she was wrongfully terminated by a Lutheran school. The school said the lawsuit should be dismissed because of ministerial exception, which is meant to keep the separation of church and state by allowing religious institutions to make employment decisions without regard to federal discrimination laws. In some situations, this separation makes sense. For instance, a Catholic church shouldn't be required to consider a Jewish rabbi as a potential leader so that they are not guilty of religious discrimination. But who this exception pertains to outside of direct ministry is still unclear, despite a Supreme Court's ruling in January 2013. The ruling agreed with the lower court's decision in the Missouri case that allowed the Lutheran church to terminate the teacher, but it basically said every case of this kind should be considered individually.
Based on the Supreme Court's decision in the Missouri case, the Catholic diocese in Indiana filed a motion to dismiss the case against them, stating that Title VII of the Civil Rights Act and the Americans with Disabilities Act did not apply in this situation because the school is a religious institution, and therefore is exempt. The district court judge hearing the case denied their motion, allowing the case to go forward.