Ed Peters the canon lawyer discusses the case today. You can read the whole thing here, but this excerpt is noteworthy here in the USA.
...Rome decides that employing, as teachers of children in Catholic schools, persons who choose to live in open contradiction to fundamental Church teaching on marriage (here, in a ‘same-sex marriage’, but it could be a civil marriage following divorce), is consistent with the Church’s understanding of “true education” as the “complete formation of the human person that looks to his or her final end” (1984 CIC 795), that persons choosing so to live are “outstanding in doctrine and integrity of life” (1983 CIC 803 § 3), that they ably assist parents in seeing to “the physical, social, cultural, moral, and religious education of their offspring” (1983 CIC 1136), and that they are suited to assisting parents in “the Christian education of their children according to the doctrine handed on by the Church” (1983 CIC 226 § 2), among other norms, and thus a bishop is wrong to say otherwise....
...Rome decides that BJPS does not use the name “Catholic” in its name and therefore it has not run afoul of Canon 803 § 3, leaving its claim to Catholic identity technically intact according to Canon 803 § 1. Of course, in that case, one wonders how the hundreds, likely thousands, of other Catholic schools around the world not using the word “Catholic” in their name (however much they might claim the label Catholic in their public relations, fund-raising, etc.), would be subject to Church authority....
If "Rome" (read: Francis) goes that way, it will be the end of ANY 'faith-based' employment restrictions/covenants/morals clauses for individuals working in Catholic schools, hospitals, parishes, or charitable enterprises in the US.
SCOTUS is not blind.
How much damage can Francis do to the Church? Lots more than anyone ever thought.