- Justices to weigh Wisconsin denial of tax carve-out for group
- Win for Catholic Charities may impact other religious entities
The
The justices will review a
The case could have a wide impact on state unemployment systems, which use taxes on employers to pay benefits to people out of work. Catholic Charities says 47 states have laws similar to Wisconsin’s. The group, which provides services to the poor and needy, says it wants to instead participate in the church’s own unemployment compensation system.
A ruling in favor of Catholic Charities potentially would let religiously affiliated hospitals and universities opt out of unemployment compensation systems as well.
Expansion of religious rights has been a theme for the Supreme Court under Chief Justice
Wisconsin law makes its exemption available only for organizations that are “operated primarily for religious purposes.” The Wisconsin Supreme Court said Catholic Charities didn’t meet that requirement because it serves and employs non-adherents, doesn’t attempt to imbue participants with the Catholic faith and provides services that could be offered by secular organizations.
Catholic Charities called the result “absurd.” The group said the ruling discriminates among religions in violation of the Constitution’s First Amendment.
The decision “wrongly disfavors those religious traditions that ask believers to care for the poor without strings attached,” Catholic Charities argued.
Wisconsin officials urged the Supreme Court not to hear the case, saying the state court reached the right result.
Catholic Charities “failed to show how ‘the payment of unemployment tax prevents them from fulfilling any religious function or engaging in any religious activities,’” Wisconsin Attorney General
The court will hear arguments next year, probably in March or April, with a ruling likely by July. The case is Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission, 24-154.
To contact the reporter on this story:
To contact the editors responsible for this story:
Steve Stroth
© 2024 Bloomberg L.P. All rights reserved. Used with permission.
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.