Supreme Court Sides With Catholic Charities In Wisconsin Unemployment Tax Exemption Case

The Supreme Court of the United States today delivered a unanimous decision in Catholic Charities Bureau, Inc., et al. v. Wisconsin Labor and Industry Review Commission et al. , ruling that Wisconsin’s application of its unemployment compensation tax exemption to religious organizations violates the First Amendment. The Court found that Wisconsin’s interpretation of the statute imposed an unconstitutional denominational preference by differentiating between religions based on their theological practices.

The case centered on Wisconsin Statute §108.02(15)(h)(2), which exempts certain religious nonprofit organizations “operated primarily for religious purposes” and “operated, supervised, controlled, or principally supported by a church or convention or association of churches” from paying