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Appeals panel said IDES wrongly forced Christian afterschool program to pay unemployment insurance

COOK COUNTY RECORD

Thursday, November 21, 2024

Appeals panel said IDES wrongly forced Christian afterschool program to pay unemployment insurance

State Court
Moody bible

Moody Bible Institute, Chicago | By Son of thunder at English Wikipedia - Transferred from en.wikipedia to Commons by Hippopotamus using CommonsHelper., Public Domain, https://commons.wikimedia.org/w/index.php?curid=4319561

CHICAGO — An Illinois state agency wrongly determined a Christian afterschool child care organization, which is affiliated with Moody Church in Chicago, wasn't religious enough to qualify for an exemption from paying into the state's unemployment insurance system, a split Illinois state appeals panel has ruled.

The Illinois Department of Employment Security’s Board of Review determined By The Hand Club for Kids, a nonprofit organization, isn’t “operated primarily for religious purposes” and therefore must provide unemployment insurance to employees, as would be required under Illinois' Unemployment Insurance Act. 

The issue arose when By The Hand’s former human resources director filed for unemployment compensation after voluntarily leaving her job in 2016.


Illinois Appellate Justice Margaret McBride | Facebook

By The Hand challenged the ruling of an IDES local office and subsequent hearing, leading Cook County Judge James McGing to reverse the ruling. 

IDES took the matter to the First District Appellate Court, which issued an opinion Dec. 30. Justice Margaret McBride wrote the majority decision, with concurrence from Justice David Ellis. Justice Cynthia Cobbs dissented.

According to McBride, the state’s Unemployment Insurance Act has three requirements for exemption, of which two were not in question: By The Hand is neither a higher education institution nor “operated, supervised, controlled or principally supported by a church.”

However, the IDES Board of Review determined By The Hand isn’t “operated primarily for religious purposes” - the third exemption requirement - because the organization is incorporated separately from Moody.

McBride said the agency, formed in 2005 and renamed in 2007, has articles of incorporation stipulating it was “organized and operated exclusively for religious and charitable purposes.” McBride founder Donnita Travis, a longtime Moody Church member, cited John 10:10 in describing By The Hand’s corporate purpose, and adding the Bible verse is posted in the classrooms and lobbies of all five locations. Staff members must be Christian, and each year sign off on the program’s faith statement and pledge to live up to defined biblical standards.

The IDES, however, argued program participants spend most of their time in secular activities, such as eating, homework and reading enrichment. By The Hand pointed to its daily Bible lessons, prayers and chapel services.

McBride said a 2014 Illinois Third District Appellate Court opinion in Unity Christian School v. Rowell is factually similar because the Fulton school’s purpose, methodology and constitution overtly addressed the primary goal to “incorporate faith into the everyday life and education of its students.” Although IDES said the Fulton school had a primarily secular curriculum, the Third District panel attributed that to state laws requiring education in secular subjects and noted the school’s primary purpose was “to teach those secular subjects in a faith-based environment.”

The Unity decision predated By The Hand's former HR director's employment, and that works in By The Hand’s favor, McBride noted. McBride said it was inexplicable for IDES to not address the precedent in its initial decision and “even more perplexing” that it contended on appeal the Unity outcome somehow proved its point. She further wrote several other state and federal courts have considered similar religious exemption arguments and come to the same conclusion as Judge McGing.

In her dissent, Cobbs said By The Hand targets students with reading deficiencies and its academic focus on homework, vocabulary and literacy shouldn't rendered secondary by the infusion of evangelism.

“It is clear that Christian ideals are promoted throughout the program,” Cobb wrote. “It is equally clear that a good many of the program’s activities are secular in nature and are specifically geared towards education assistance with a focus on literacy. However, it is not necessary for By The Hand to operate an afterschool program focused on reading proficiency to achieve its religious purposes.”

Cobb further noted By The Hand has an $8 million annual budget, some of which comes from donations solicited by promoting the program’s academic aspects. Chicago Public Schools provides $200,000 for meals through a reimbursement grant and CPS teachers occasionally recommend students for participation.

“Accepting By The Hand’s characterization of the program as ‘primarily for religious purposes,’ means that CPS’ student referrals and its investment of public funds support a program whose primary purpose is to win souls," Cobb wrote.

By The Hand has been represented by attorneys Sally R. Wagenmaker, Paul Z. Winters and Jonathan S. Hwang, of Wagenmaker & Oberly LLC, of Chicago, and Erik Stanley, Jeremiah Galus and David A. Cortman, of Alliance Defending Freedom, of Scottsdale, Az., and Lawrenceville, Ga.

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