A key concern of educational leaders in faith-based schools is their ability to hire faculty members who support institutional missions. Insofar as the American legal system protects the rights of leaders in faith-based schools to hire those who share in school goals, this article is divided into three substantive sections. The first section provides a brief historical-legal overview of faith-based schools in the United States. The next part highlights federal anti-discrimination statutes along with illustrations of litigation interpreting and applying these laws in disputes impacting on hiring practices in faith-based schools. The final substantive section offers five recommendations for educational leaders in faith-based schools who must walk the fine line between complying with their Church teachings and American civil law in making hiring decisions.