The U.S. Supreme Court is being asked to decide whether a religious nonprofit offering services that are arguably secular should be exempt from paying into a state unemployment system.
At first glance, it sounds niche. But the court’s ruling could redefine how religious exemptions apply in the workplace.
At issue in Catholic Charities Bureau Inc. v. Wisconsin Labor & Industry Review Commission is whether a Catholic Charities chapter that operates under the Diocese of Superior qualifies for a religious exemption under Wisconsin law. The Wisconsin Supreme Court said no.
While the organization is affiliated with the Catholic Church, its social services — supporting adults with disabilities, for example — arguably aren’t inherently religious. Catholic Charities disagrees, saying that its mission is rooted in faith and that the government shouldn’t be in the business of deciding what counts as “religious enough.”
The Supreme Court heard arguments in the case on March 31. If it rules in favor of Catholic Charities, the decision could change how religious exemptions are applied across the country.
“If the court finds in favor of Catholic Charities,” said New Orleans attorney Frank Lamothe III, “it has the potential to have far-reaching consequences since it would create the opportunity for bottom-line employers to take advantage of the decision to affiliate with religious organizations to avoid paying unemployment benefits for their workers.”
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