A federal appeals court today reversed a lower court’s decision against Oklahoma-based Hobby Lobby Stores Inc. which had denied the company’s claim for an injunction against the Affordable Care Act. A portion of the Obamacare law requires that the company pay for emergency contraceptives for some employees.

The 10th Circuit Court of Appeals in Denver decided the Oklahoma City-based arts and crafts chain can proceed with its case and won’t be subject to fines in the meantime.
The reprieve gives Hobby Lobby Stores Inc. more time to argue in a lower court that for-profit businesses — not just currently exempted religious groups — should be allowed to seek an exception if the law violates their religious beliefs. The company had sued to overturn the mandate on grounds that it violates the faith of founder and CEO David Green and his family.
The appeals court remanded the case for more argument, but the judges indicated Hobby Lobby had a reasonable chance of success.

The decision (pdf) is seen as weakening the Obama administration’s argument that corporations which operate for-profit cannot claim that constitutionally protected religious freedom is violated by the health care measure.