Catholic Charities Bureau v. Wisconsin Labor & Industry Review Commission

Fulfilling the Catholic Church’s religious mission 

Catholic dioceses across the country organize their efforts to meet the needs of the disadvantaged within the local community through Catholic charities and other similar entities. Since 1917, Catholic Charities has fulfilled this mission for the Diocese of Superior in northern Wisconsin, providing a wide range of services to help the disabled, the elderly, and the poor throughout the Diocese. Catholic Charities’ mission, consistent with their Catholic faith, is to serve all those in need, regardless of their religious beliefs. Accordingly, each year Catholic Charities ministers to thousands of individuals and families in need by offering in-home healthcare, housing for the elderly and disabled, childcare services, employment opportunities, and other vital resources.  

Wisconsin court of appeals denies Catholic Charities’ religious mission 

Wisconsin’s unemployment insurance program provides financial assistance to those who have lost their job through no fault of their own. Under state law, certain nonprofit organizations in Wisconsin can opt out of the program, including those operated primarily for religious purposes.  

Catholic Charities requested an exemption from the state’s unemployment program so that they could enroll in the Wisconsin Bishops’ Church Unemployment Pay Program (CUPP), a more efficient unemployment compensation program that provides the same level of benefits as the State’s program. 

In ruling that Catholic Charities did not qualify for a religious exemption from the State’s unemployment compensation program, the Wisconsin court of appeals both misinterpreted state law and violated the First Amendment. The court of appeals’ decision essentially cuts Catholic Charities off from the Diocese of Superior, concluding that the clear religious purpose of the Catholic Church and the Diocese in setting up and running Catholic Charities is irrelevant. Instead, the court of appeals concluded that Catholic Charities—looked at in isolation—was engaged in merely “charitable” (not religious) activities. The court thus denied Catholic Charities the exemption, forcing them to remain in the state’s less efficient unemployment compensation program.  

State law and the U.S. Constitution confirm that Catholic Charities’ mission is religious 

The Wisconsin court of appeals’ decision is deeply problematic. By separating Catholic Charities from the Diocese, the court ignored the Catholic Church’s determination regarding how to structure their own religious ministry. By concluding that Catholic Charities’ activities are not religious because Catholic Charities serves all those in need and doesn’t proselytize, the court penalized faiths that make caring for those in need—regardless of their religious background—a religious obligation. And, by engaging in a standardless inquiry to determine “how religious” Catholic Charities and their subsidiary ministries are, the court of appeals entangled secular courts in deeply religious questions, violating the separation of church and state.  

This outcome was wholly avoidable. Wisconsin’s unemployment compensation statute, Wisconsin’s Constitution, and the U.S. Constitution all require that courts look to the undisputed religious purpose of the Diocese of Superior when determining whether Catholic Charities qualifies for a religious exemption from the State’s unemployment compensation program.   

On April 18, 2023, the Wisconsin Supreme Court agreed to review the lower court’s decision. Oral argument took place in Madison on September 11, 2023. On March 14, 2024, the Justices affirmed the lower court and held that Catholic Charities’ ministry to the poor and needy was not religious. Catholic Charities plans to appeal the decision to the U.S. Supreme Court. 

Importance to Religious Liberty: 

Religious Communities: Religious communities have a right to serve those in need according to the dictates of their faith. Unfortunately, religious institutions are often targeted if not in alliance with societal standards.