Not being a Lawyer but it seems to me and it should be noted that I believe Indiana is a "At Will" State.
" Indiana Employee Labor Laws
Employee Rights & Employer Responsibilities"
"Termination"
Indiana is an "at will" employment state. Termination
Indiana is an "at will" employment state. Employers may terminate employment for almost any reason or no reason at all. However, there are some reasons for termination that are legally prohibited. Employers may not terminate or otherwise discriminate against employees on the basis of race, gender, national origin, religion,
disability status or age. Further, employers may not terminate employees for refusing to comply with illegal orders or reporting illegal workplace practices. After termination, an employer must pay the terminated employee all of his outstanding vacation pay. A terminated employee must receive all outstanding wages before the next regularly scheduled payday.
*Read more: Employee Rights in Indiana | eHow.com
http://www.ehow.com/list_6636455_emp...#ixzz2735MP5Y8
This said if the reason for not renewal of the contract is the attempts to get pregnant then she has every right to pursue a case. This Diocese schools treceive funds now with the state allowing tax dollars under a voucher to be used to pay for private schools. Negating the separation of church and state it would seem.
Barney