Maryland’s highest court has ruled that the state’s employment protection laws do not prohibit discrimination based on sexual orientation.

The ruling Monday is the latest in a lawsuit by a gay employee of Catholic Relief Services. Identified in legal filings as “John Doe,” the employee sued the humanitarian aid organization in 2020, after he was denied health benefits for his husband.

In a 4-3 decision, the Supreme Court of Maryland ruled that the Maryland Equal Pay for Equal Work Act does not prohibit discrimination on the basis of sexual orientation, and that the Maryland Fair Employment Practices Act permits religious organizations to discriminate “with respect to the employment of individuals of a particular religion, sexual orientation, or gender identity to perform work connected with the activities of the religious entity.”

“It's disappointing that he's not being protected under Maryland law, especially since Maryland law has been ahead of federal law in coverage of LGBTQ+ people,” said Eve Hill, a lawyer with the firm Brown, Goldstein & Levy who represents Doe.

Last August, a federal judge ruled that the employee is protected from discrimination under Title VII of the Civil Rights Act and the federal Equal Pay Act. Monday’s ruling doesn’t change that, though CRS could still appeal the federal decision.

In a statement, Maryland Attorney General Anthony Brown called the state court’s ruling a “disheartening setback.”

“I'm calling on the Maryland General Assembly to rectify this setback during the next legislative session, and I will stand by them every step of the way,” Brown said.