EMPLOYMENT AGREEMENT AUTHORITY

Does the pastor, minister, evangelist, priest, rabbi or imam have the authority to enter into an employment contract that will bind future church leaders?  However, in order to answer such a question judicially may require that a secular court develop a full understanding of the ecclesiastical structure of a denomination or church.

In Napolitano v St. Joseph Catholic Church, Slip Op. (FL. App. 2020), the plaintiff was for twelve years employed as the office manager of the church.  When the pastor learned that he was to be replaced by the hierarchy of the denomination, a written employment contract was for the first time entered into between the church and Plaintiff.  The contract had a term of four years and required termination only for cause.  It also automatically renewed for another term if there was no written notice of intent to terminate six months before the end of the term.  The new pastor terminated the Plaintiff without notice.  The Plaintiff allege breach of contract and that the former pastor had apparent authority to enter into the employment agreement and bind the denomination.  The case was dismissed by the trial court and the appellate court affirmed dismissal.  The appellate court held that the actual authority of the former pastor to enter into the employment agreement and bind the denomination was a question of ecclesiastical doctrine into which the court could not intrude.  The court held that the question of apparent authority was likewise an ecclesiastical inquiry.

Denominations should consider including in their governance documents clauses that preclude or require the prior written approval of written employment agreements.  Several different approaches could be taken.  These might include requiring written approval only if the written employment agreement has a tenure greater than one or two years, or if it permits termination only for cause, or require an automatic termination clause in the event a new minister is appointed or licensed by the denomination for the church.  Local churches without denominational affiliation or oversight should in their governance documents spell out whether a single church leader can enter into an employment agreement without approval of a governing board.

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