Supreme Court rules in favor of Wisconsin Catholic agency over religious exemption

WASHINGTON (OSV News) — The U.S. Supreme Court on June 5 unanimously ruled in favor of the Catholic Charities Bureau of the Diocese of Superior, Wisc., which had asked the high court to overturn a decision by the Wisconsin Supreme Court the agency argued discounted its religious identity.

The group previously appealed a ruling by the Wisconsin Supreme Court that Catholic Charities is not exempt from paying into the state’s unemployment insurance system because its operations aren’t primarily religious under the definition in the statute requiring certain employers to do so.

Wisconsin law states religious employers in the Badger State are eligible for an exemption from paying into its unemployment benefit program if they operate primarily for religious purposes. The state argued, however, that the Catholic Charities Bureau does not meet that standard since it employs non-Catholics and does not make its service to the less fortunate contingent on Catholic religious practice, and the Wisconsin Supreme Court previously sided with the state, drawing a distinction between its mission or purpose and its “activities.”

However, in an opinion written by Justice Sonia Sotomayor, the U.S. Supreme Court unanimously found the Wisconsin Supreme Court’s ruling violated the First Amendment by creating a preference for some religious practices over others.

“It is fundamental to our constitutional order that the government maintain ‘neutrality between religion and religion,'” Sotomayor wrote, quoting previous Supreme Court precedent in Epperson v. Arkansas. “There may be hard calls to make in policing that rule, but this is not one.”

At oral arguments in the case in March, the justices appeared to note that the Wisconsin Supreme Court’s interpretation of the law would appear to favor religions that would limit their hiring or services to co-religionists.

Justice Elena Kagan said at that time that it might be a “matter of religious doctrine” that some religions “don’t require people to say the Lord’s Prayer with us before we give them soup.”

“I thought it was pretty fundamental that we don’t treat some religions better than other religions, and we certainly don’t do it based on the content of the religious doctrine that those religions preach,” she said.

Bishop James P. Powers of Superior celebrated the ruling in a statement.

“At the heart of Catholic Charities’ ministry is Christ’s call to care for the least of our brothers and sisters, without condition and without exception,” Bishop Powers said. “We’re grateful the Court unanimously recognized that improving the human condition by serving the poor is part of our religious exercise and has allowed us to continue serving those in need throughout our diocese and beyond.”

Eric Rassbach, vice president and senior counsel at Becket, a religious liberty law firm that represented the Catholic Charities bureau, said, “Wisconsin shouldn’t have picked this fight in the first place.”

“It was always absurd to claim that Catholic Charities wasn’t religious because it helps everyone, no matter their religion,” Rassbach said. “Today, the Court resoundingly reaffirmed a fundamental truth of our constitutional order: the First Amendment protects all religious beliefs, not just those the government favors.”

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