Her employment contract required following a "biblical chain of command"[3][4] in lieu of using the state legal system and a signed statement of faith.

After informing the principal, her contract to teach was not renewed as organizational leaders believed that mothers should stay home with their pre-school-aged children.

She then filed a complaint with the Ohio Civil Rights Commission, claiming that the non-renewal of the contract was sexual discrimination under ORC 4112.02A,[8] and that the termination was in violation of 4112.02I.

[8] The commission determined that there was sufficient probable cause to believe that the school had discriminated against Hoskinson based on her sex, and retaliated against her for asserting her rights.

The school claimed that the First Amendment prevented the commission from having jurisdiction, that the civil rights statutes were unconstitutionally overreaching and appealed to the US District Court seeking a permanent injunction against the state.