March 31 (UPI) -- The Supreme Court is to hear arguments Monday to determine whether Wisconsin-based Catholic-affiliated charitable groups should pay unemployment tax to cover their employees.
The Wisconsin Supreme Court upheld in March of 2024 a decision by the state's Labor and Industry Review Commission, which said a particular set of groups that operate under the umbrella of the Catholic Charities Bureau of the Diocese of Superior "are not operated primarily for religious purposes" under state law and should not be eligible for an exemption in regard to the tax under Wisconsin's Unemployment Compensation Act.
The groups' argument is that their rights have been violated under the free exercise clause of the Constitution's First Amendment, which they interpret to exempt religious institutions from taxation.
The Wisconsin unemployment compensation system was created to offer a safety net for residents who have lost their jobs, and both similar programs in other states and the Federal Unemployment Tax Act do include religious exemptions.
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