The Employee Retirement Income Security Act (ERISA) regulates employee-benefit plans to protect the interests of employees who participate in these plans. To avoid undue governmental intrusion in church affairs, the Act provides an exemption for plans established by churches. Some non-church entities have begun to claim this exemption.
For nearly a decade, the Elmbrook School District near Milwaukee, Wisconsin, held its high-school graduation ceremonies in the sanctuary of an evangelical Christian church. A cross towered over the dais -- upon which graduation speakers addressed the audience and graduating seniors received their diplomas.