The Supreme Court just heard oral arguments in a case about whether the state of Wisconsin can deny a religious organization an exemption to its unemployment scheme because its serves people who do not share the Catholic faith.

The Catholic Charities Bureau has been the official social ministry arm of the Diocese of Superior since 1917. Its goal is to “carry on the redeeming work of our Lord by reflecting gospel values and the moral teachings of the church,” and it provides numerous services to poor and vulnerable populations, including educational and life skills training for disabled individuals, housing for children and mentally disabled individuals, and daycare for working parents.

The organization wants an exemption from Wisconsin’s unemployment insurance system so it can join the Wisconsin Bishops’ Church Unemployment Pay Program, a church-funded unemployment program for lay employees.

Wisconsin’s unemployment insurance system is funded by taxing employers, but nonprofits can opt out of this program if they operate for primarily religious purposes. The Catholic Charities Bureau believes it meets Wisconsin’s criteria to opt out. It tried withdrawing from the state program. The Wisconsin Supreme Court

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