The Supreme Court decided Thursday that a Catholic charity doesn’t have to pay Wisconsin unemployment taxes, one of a set of religious-rights cases the justices are considering this term.
The ruling comes in a case filed by the Catholic Charities Bureau, which says the state violated the First Amendment’s religious freedom guarantee when it required the organization to pay the tax while exempting other faith groups.
Wisconsin argues the organization has paid the tax for over 50 years and doesn’t qualify for an exemption because its day-to-day work doesn’t involve religious teachings. Much of the groups’ funding is from public money, and neither employees nor people receiving services have to belong to any faith, according to court papers.
Catholic Charities, though, says it qualifies because its disability services are motivated by religious beliefs and the state shouldn’t be making determinations about what work qualifies as religious. It appealed to the Supreme Court after Wisconsin’s highest court ruled against it. President Donald Trump‘s administration weighed in on behalf of Catholic Charites.
Wisconsin has said that a decision in favor of the charity could open the door to big employers like religiously affiliated hospitals pulling out of the state unemployment system as well.