Wisconsin Supreme Court rules Catholic Charities exempt from unemployment insurance contributions

CBS 58

MADISON, Wis. (CBS 58) -- The Wisconsin Supreme Court ruled Monday, Dec. 15 that Catholic Charities Bureau and four of its sub-entities are exempt from contributing to the state unemployment insurance system because they operate primarily for religious purposes.

The decision follows a U.S. Supreme Court ruling in June that found Wisconsin's interpretation of the religious exemption violated the First Amendment. The U.S. Supreme Court determined that Wisconsin's approach made eligibility for the exemption depend on religious choices, such as whether organizations proselytize or serve only members of their own faith.

The U.S. Supreme Court ruled that method did not correctly differentiate between religions based on theological choices and sent the case back to Wisconsin for further consideration.

The Wisconsin Supreme Court has now sent the case back to circuit court with instructions to declare Catholic Charities Bureau and its sub-entities eligible for the religious purposes exemption to unemployment taxation.

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