WASHINGTON—The Supreme Court expanded religious schools’ exemption from civil-rights laws, the latest in a series of decisions elevating the role of religious exercise and sectarian institutions in American society.

The court ruled that the First Amendment’s religion clauses immunize the schools from discrimination claims filed by teachers alleging they were fired because of age or disability. As religious institutions, the court found, the schools cannot be second-guessed by judges or juries regarding dismissal of teachers…

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