The U.S. Supreme Court will consider whether the Constitution permits a state to deny an ostensibly sectarian organization a tax exemption for religious groups because the group fails to meet the state's standard for religious behavior.

On Friday, the justices agreed to hear Catholic Charities' appeal of a Wisconsin Supreme Court decision that the state may order it to pay an unemployment tax because the organization was not operating "primarily for religious purposes." The state high court said the group conducted secular charitable activities without attempting to "imbue" individuals with the Catholic faith and hired employees without regard for their religion.