Catholic Charities Bureau, Inc., et al., v. Wisconsin Labor & Industry Review Commission, et al.
Issues
Does Wisconsin violate the First Amendment’s religion clauses by denying a religious organization a tax exemption available under the state’s unemployment compensation system to organizations that are church-controlled and operated for primarily religious purposes?
This case asks the Court to determine whether Wisconsin violates the Constitution’s First Amendment by denying a particular religious organization a tax exemption under Wisconsin’s unemployment compensation system. Catholic Charities argues that the Wisconsin Supreme Court’s interpretation and application of the statute to deny the organization an exemption violates the First Amendment’s Establishment and Free Exercise Clauses. Specifically, Catholic Charities argues that the court’s decision violates the church’s autonomy, entangles the state in religious matters, and discriminates among religions for their church organizational structure and their distinct religious beliefs and practices. Wisconsin, on the other hand, maintains that the exemption and its interpretation effectuate no constitutional violations. Wisconsin argues that the exemption and the court’s interpretation do not infringe on the church’s autonomy, do not cause the state to become excessively entangled in religion, and do not discriminate among religions. This case directly calls for a balancing of church and state interests while also having implications for both charities and unemployment insurance on a large scale.
Questions as Framed for the Court by the Parties
Whether a state violates the First Amendment’s religion clauses by denying a religious organization an otherwise-available tax exemption because the organization does not meet the state’s criteria for religious behavior.
In 1932, Wisconsin passed the nation’s first unemployment compensation statute, Wisconsin Statute § 108.02(15). Catholic Charities Bureau, Inc. v. State at 16. The statute implemented unemployment compensation coverage for unemployed workers.
Additional Resources
- Mark Sherman, Supreme Court will hear Catholic charitable group’s plea to be free from Wisconsin unemployment tax, The Associate Press (Dec. 13, 2024).
- Marcia Coyle, A trio of religion cases marks Spring on the Supreme Court’s argument docket, National Constitution Center (Feb. 25, 2025).
- Walter M. Weber, After State Supreme Court Rules Christian Charity Isn’t Religious Because They Serve the Poor, ACLJ Urges US Supreme Court To Overrule “Smith” Test, Restore Vigor to Freedom of Religion, American Center for Law and Justice (Feb. 4, 2025).
- Ian Millhiser, A new Supreme Court case about religion has a hidden trap for workers, Vox (Dec. 17, 2024).