Wisconsin high court ends state’s crusade against Catholic Charities
WASHINGTON – The Wisconsin Supreme Court today blocked the state’s recent effort to defy the U.S. Supreme Court’s unanimous ruling in Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission. In June, all nine Justices rejected Wisconsin Attorney General Josh Kaul’s argument that Catholic Charities’ care for the poor and needy wasn’t religious enough to qualify for a religious exemption from the state’s unemployment tax law. (Watch this video to learn more). But instead of complying with that decision, state officials asked the state’s high court to eliminate the exemption entirely. In its ruling today, the Wisconsin Supreme Court denied this request and ruled that Catholic Charities is entitled to the exemption.
In the Supreme Court’s 9-0 ruling this past summer, Justice Sonia Sotomayor explained that Wisconsin had violated federal law by “impos[ing] a denominational preference by differentiating between religions based on theological lines.” The Court further recognized that “whether to express and inculcate religious doctrine through worship, proselytization, or religious education when performing charitable work are, again, fundamentally theological choices driven by the content of different religious doctrines.”
“You’d think Wisconsin would take a 9-0 Supreme Court loss as a hint to stop digging,” said Eric Rassbach, vice president and senior counsel at Becket. “But apparently Attorney General Kaul and his staff are gluttons for punishment. Thankfully, the Wisconsin Supreme Court put an end to the state’s tomfoolery and confirmed that Catholic Charities is entitled to the exemption it already won.”
Rather than following the Supreme Court’s ruling, Wisconsin officials tried to avoid it by attacking the religious exemption itself. Not long after losing at the U.S. Supreme Court, Attorney General Kaul asked Wisconsin’s high court to consider axing the exemption entirely—undermining a key religious exemption relied on by faith-based organizations across the state. The Wisconsin Supreme Court ordered further briefing on the question. Becket asked the court to stop this maneuver in its tracks.
In today’s order, the Wisconsin Supreme Court definitively held that Catholic Charities “is eligible for the religious purposes exemption.”
Recent polling shows broad support for organizations like Catholic Charities. Becket’s 2024 Religious Freedom Index found that 73% of Americans agree that religious organizations that provide services to help in the community should be just as eligible to receive government funds as non-religious organizations.
“Wisconsin should have taken the L,” said Rassbach. “Attorney General Kaul never should have doubled down on punishing churches. The Wisconsin Supreme Court’s order today protects not just Catholic Charities, but every faith-based organization that relies on this exemption to serve the public. It turns out that penalizing charities is not a winning legal strategy.”
Catholic Charities Bureau is also represented by Kyle H. Torvinen of Torvinen, Jones & Saunders, S.C., in Superior, Wisconsin.
For more information or to arrange an interview with a Becket attorney, contact Ryan Colby at [email protected] or 202-349-7219.
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