An unmarried teacher at a Catholic school was terminated after she revealed she was pregnant by artificial insemination. The teacher, who is not Catholic herself, taught computer science. She did not receive any religious instruction as part of her job and did not provide any religious instruction to her students.

The woman signed an employment contract with a morals clause that stated she would "comply with and act consistently in accordance with the stated philosophy and teachings of the Catholic Church." Artificial insemination is considered immoral by the Catholic Church.

The teacher sued for pregnancy discrimination. What should the courts decide and why?