Court: District Court of Appeal of Florida; November 20, 1997; Florida; State Appellate Court
Campus Crusade for Christ, Inc. appealed a final order from the Unemployment Appeals Commission (UAC) affirming the appeals referee's finding that claimant Daniel Hill was employed in insured employment and that the organization did not qualify for any exemption from unemployment compensation liability. Hill, who was employed as a payroll clerk and discharged on August 11, 1995, filed for unemployment benefits.
The employer argued it was recognized as a church by California law, seeking a similar exemption under Florida Statutes section 443.036(19)(d), which excludes certain religious organizations from unemployment coverage. The Division of Unemployment Compensation initially agreed that the employer operates primarily for religious purposes, thus excluding it from coverage. However, upon appeal, the Bureau of Tax reaffirmed a prior ruling that the employer was not a liable employer under the same statute.
An appeals referee conducted a hearing to review the Bureau's decision, examining evidence that established the organization's religious mission as a non-profit missionary order founded in 1951, with a focus on college campus ministry. The organization, headquartered in Orlando since 1991, has a staff of 13,000 and operates internationally, holding regular meetings for worship and Bible study, with attendance averaging 200-300 people at its headquarters. These activities serve not only internal staff but also the broader public, fulfilling a significant role in the religious lives of students and community members.
The claimant, as an employee, was mandated to attend weekly meetings organized by the employer, which has expanded its outreach from college students to high school and younger children through programs like "Student Venture." These programs offer instruction akin to Sunday school, including singing and Bible stories, and are led by commissioned members trained in the organization's evangelical Protestant beliefs. The employer produces literature outlining its doctrines and emphasizes the importance of fellowship with other Christians, requiring staff to join local denominational churches.
The organization, identified as Campus Crusade, operates as a non-profit religious entity with approximately 1,300 full-time staff across 150 countries, headquartered in Orlando, Florida. It is exempt from the Federal Unemployment Tax Act and holds a 501(c)(3) tax exemption. The employer does not claim to be a traditional church and does not receive funding from a specific church or denomination. Instead, it receives support from various individuals and denominations, functioning independently of any church convention.
The appeals referee excluded the employer's claims of misconduct from consideration during the hearing. Findings revealed that the employer had employed at least four individuals in 20 different weeks during 1995 and held mandatory weekly meetings at its headquarters, primarily for its employees but open to the public. The referee concluded that for a claimant to be eligible for wage credits, the remuneration must qualify as wages for insured work during the claim's base period.
The claimant was employed by the employer and received wages during the base period, qualifying as insured work. Employment includes service for organizations exempt from the Federal Unemployment Tax Act if they have at least four employees for a portion of 20 weeks in the year, which the employer satisfies. However, Florida’s Unemployment Compensation Statute excludes employment with churches or organizations primarily operated for religious purposes. The statute differentiates between a church and other religious organizations. A church is defined as more than just a physical structure; it embodies a religious idea in action. The employer, despite its religious nature, does not present itself publicly as a church and does not qualify for the statutory exemption, as it is not supervised by a church or group of churches. Evidence indicates the claimant worked in insured employment, and the employer does not meet any exemptions under Florida Statutes. Consequently, the claimant is entitled to credit for insured work. The appeal examines whether the referee's decision aligns with substantial evidence and legislative intent regarding church exemptions. The agency's legal conclusions are given deference in judicial review, and the exclusion of church employment is to be narrowly construed to support the purposes of unemployment compensation. Not all religious organizations are exempt; they must qualify as a "church" or be operated by one to receive exempt status. The employer claims to be a "church" based on dictionary definitions and Florida Administrative Code definitions related to sales tax, but this argument is presented for consideration.
The interpretation of the term "church" is analyzed through the Internal Revenue Service's viewpoint, relevant case law, and the presumption that undefined statutory terms are to be understood in their ordinary meaning. Notably, the Florida courts assert that common words should be interpreted in their natural sense unless indicated otherwise. The legislature is presumed to be aware of the meanings of words, and the courts aim to uphold legislative intent. Various definitions of "church" highlight the necessity of a community or organization that practices a shared faith and conducts regular worship services. In this context, Campus Crusade is characterized as an interdenominational missionary organization rather than a church, supported by testimony from its human resource manager. The organization promotes local church membership among its staff. Comparisons are drawn to the case of Young Life Campaign, where the court ruled Young Life as a "church" under unemployment insurance law due to its structured religious activities and involvement of ordained ministers. Key differences between Young Life and Campus Crusade are noted, particularly regarding the administration of sacraments and the presence of ordained ministers within the organization, with the current case reversing the fact-finder's decision regarding Campus Crusade's classification.
The excerpt addresses the determination of whether Campus Crusade qualifies as a "church" for exemption from sales tax and unemployment compensation liability under the Internal Revenue Code. The term "church" lacks a statutory definition, leading to reliance on generally accepted meanings and 14 criteria established by the IRS to assess church status. These criteria include aspects such as legal existence, recognized creed, organized ministry, and regular religious services, among others.
Campus Crusade asserts that its extensive statement of faith qualifies as a recognized creed, while the opposing party argues it merely reflects common fundamentalist beliefs. The organization’s meetings, claimed to be worship services, lack key elements like ordained ministers and established liturgy, which are typically present in traditional church services. Additionally, Campus Crusade does not maintain an organization of ordained ministers and encourages members to associate with local churches, complicating its claim to ecclesiastical governance.
The court concludes that the definition of "church" regarding unemployment compensation exemption remains ambiguous. It emphasizes the necessity of regular worship services led by ordained ministers and an established liturgy to distinguish a church from other religious gatherings. The hearing officer’s interpretation of the exemption is deemed not clearly erroneous, particularly given evidence that Campus Crusade does not present itself as a church. The court affirms the lower decision and remands the case to determine if the claimant engaged in misconduct, noting that the employer had previously raised this issue.
