How did Burwell v. Hobby Lobby Stores, Inc. change the ability of closely held corporations to challenge federal regulations on religious grounds?

In Burwell v. Hobby Lobby Stores, Inc. (2014), the U.S. Supreme Court significantly expanded the scope of religious freedom protections for businesses. The Court ruled that closely held, for-profit corporations qualify as legal "persons" under the Religious Freedom Restoration Act (RFRA) of 1993.1

This decision established that such corporations are capable of exercising religion and, consequently, may challenge federal regulations that impose a substantial burden on their religious practices. Specifically, the ruling allowed these entities to refuse to provide health insurance coverage for certain contraceptive methods mandated by the Patient Protection and Affordable Care Act if those requirements conflict with the owners' sincerely held religious beliefs. By recognizing the religious rights of the corporation itself, the Court provided a legal pathway for family-owned businesses to seek exemptions from federal mandates that they argue violate their religious conscience.12