The U.S. Supreme Court has agreed to hear a case from Wisconsin that could redefine the scope of religious exemptions from state unemployment taxes. Catholic Charities of the Diocese of Superior, in the case of Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission, is seeking an exemption, arguing that its charitable services to the poor, elderly, and disabled are part of its religious mission. The case challenges a 4-3 decision by the Wisconsin Supreme Court, which ruled that Catholic Charities' activities were not 'typical' religious activities because they serve and employ non-adherents and do not attempt to convert participants to the Catholic faith. The Supreme Court's decision could impact how religious organizations are treated under state unemployment compensation systems across the country, potentially allowing religious hospitals, schools, and other institutions to opt out of such programs.
