Teachers Don't Surrender Their Rights When They Enter Public Education
In general, public school teachers may not encourage, discourage or participate in prayer with students. The courts have held that public school teachers are state actors when acting in their official capacity as classroom teachers. However, that does not mean that teachers unconditionally surrender their constitutional rights once they enter public education.
Teachers have the right to academic freedom. As such, teachers may take part in religious activities as long as it is clear that they are not participating in an official capacity, but rather as an individual, and as such not representing the government. Teachers can also meet with other teachers for prayer to the same extent that they may engage in other conversation or nonreligious activities.
It is unsettled in the law whether or not teachers, when acting in an official capacity, may show deference and respect to students who have initiated religious activity. For example, high school football coach Marcus Borden has asked the courts to affirm his constitutional right to silently bow his head and bend his knee while members of the football team engage in the time-honored practice of student-initiated pre-game prayer.

I just came across this article:
http://www.cnn.com/2009/CRIME/09/17/florida.school . prayer /index.html
A non-jury trial will have to actually consider jail time. Harsh to say the least. From my atheistic standpoint, this is too much I think. Yes, I know they violated an agreement that was put into place. Should they lose their jobs , or be strongly reprimanded. Sure they should. They violated policy. Should they be jailed for it? No, no, no.
Considering jail time does not mean that they have to mandate jail time. The jail time is the maximum possible punishment that they could receive.
There should not be an issue having teachers partake in religious activities unless it disrupts the teaching of the class. In public schools teachers teach their students without and bias. They share the same rights as students.
Teachers are not surrendering their rights when they enter public education. In some perspectives, they are stepping into a new world, and in turn setting an example. That dosen't mean that they should over-emphasize prayer more than something else, but it does mean that if they choose to pray, they should be able to on account of the Freedom of Speech. As long as teachers don't make a scene about prayer, they have the same rights as students do.
If teachers can engage in prayer and religious activities freely with other teachers, then why can't they do the same with students? I believe that is unfair.
teachers don't lose any basic rights at all, but they should respect their students. If a teacher wants to pray, then they can, and if they're close to a few of their students, then why not pray together?.. but as far as requiring the whole class to participate, that's wrong. As a christian and a student who is close to a few teachers, i would personally love to pray with my leaders, but it seems like people are against that and anything having to do with religion in public schools, no matter if it's Christianity or Islam or no religion at all..
Because teachers step into the field of teaching does not mean that they must surrender their rights. They still have the same freedom of speech and religion as the students have. It may not be good for a teacher to lead a group prayer because they may offend some students, but they should be able to have the same freedom to pray during their day. Also, they can lead voluntary prayer groups and meetings for any students who chose to participate in these prayer groups. As far as the coaches praying with their team, I believe that is fine as long as the team agrees that they should. Ever since I can remember, my team has prayed before every game. If someone disagreed, they wouldn't have to participate or we would stop.
I can't imagine taxpayers would approve of paying government employees to practice their beliefs during work time*. A teacher privately praying with a willing coworker during a break would seem to fall within the government's responsibility to protect the employee's constitutional rights. However, a government employee conducting religious practices during their duties could appear that the government is endorsing the religious practice.
In the coaching the example, the coach is presumably a public employee acting as a government representative. A coach, who is in an especially authoritative position often making subjective judgments, would certainly appear to favor and have a bias toward fellow believers by making a noticeable gesture. (BTW, US Appeals Court ruled that Borden did more than merely bow his head and bend his knee, but actually organized, participated and led prayers.)
It's not clear to me how academic freedom relates to this issue. Teachers are not free to teach any curriculum. Not sure what academic principle was being taught during an athletic event.
* Hired hospital or military chaplains are exceptions.
As an employee of the government, you surrender some rights while on the job. For example, in some positions you can't help someone campaign for public office or vocally support some policy or change in policy, because it would compromise your impartiality in doing your job. Of course you don't surrender every right, but you do give up some.
Tamara's comment shows exactly what the problem is with prayer in schools. Those who do it have the attitude that "it might [be] a good place to here [sic] about God." School is not there to give everyone "a peace of mind," and it is certainly not there to decide what will or won't afford someone that peace. It should be left up to students to decide their own religious beliefs, not have them thrust upon them by a teacher, who holds a position of authority as well as the threat of bad grades for disobedience, not to mention the responsibility of representing the state.
Christianity is allowed to be displayed in American schools. If you want to wear a cross necklace, you can, just as if you want to wear a yarmulke or a hijab you generally can. That is all that is afforded to other religions, and there is no unfair treatment. If a student, on his own, decides to pray or meditate on his own time, no one would stop him -- the problem occurs when teachers lead the prayer. There is no attack on Christianity. It just seems that way because many Christians want to push their religion in people's faces, and eventually other people push back in order to return to fairness.
Prayers should be in schools because for a lot of people it gives them a peace of mind. Schools nowadays are dangerous and volatile. Remember Columbine and Virginia Tech. Besides for some people it might a good place to here about God. For the most part this is mainly an attack on Christianity every other religion is allowed to be displayed in school one way or the other except Christianity.
Removing prayers from school is a way of taking away someone else's rights.