- State discriminated against Catholic Charities, court says
- State court said the group wasn’t primarily religious
The US Supreme Court said the Wisconsin Supreme Court wrongly denied Catholic-affiliated charities a religious exemption from having to pay into the state’s unemployment tax program.
In a unanimous decision Thursday, the court ruled that it’s unconstitutional to impose a denominational preference by differentiating between religions based on theological lines under the First Amendment.
“A law that differentiates between religions along theological lines is textbook denominational discrimination,” Justice Sonia Sotomayor wrote for the court.
Catholic Charities Bureau serves people who are elderly, disabled, poor, and in need of disaster relief. Its sub-entities—Headwaters, Barron County Developmental Services, Diversified Services, and Black River—provide services primarily to people with developmental disabilities.
The Wisconsin Supreme Court, however, agreed with the state’s argument that they didn’t qualify for an exemption from the state’s unemployment tax program. The state high court said they’re not operated primarily for religious purposes within the meaning of the state law because they neither proselytized nor limited their services to Catholics.
“There may be hard calls to make in policing that rule, but this is not one,” the court said.
Justices Clarence Thomas and Ketanji Brown Jackson joined the court’s ruling, but wrote separately to address issues not discussed in the court’s decision.
The case is Catholic Charities Bureau, Inc. v. Wisconsin Labor & Indus. Review Comm’n, U.S., No. 24-154, 6/5/25.
(Updated with additional details from opinion.)
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