In late December the Supreme Court granted certiorari in a case from the Wisconsin Supreme Court which held that Catholic Charities is not exempt from paying unemployment tax based on a claim that it is a religious institution.

The question presented to be argued is does a state violate the First Amendment’s religion clauses by denying a religious organization an otherwise-available tax exemption because the organization does not meet the state’s criteria for religious behavior?

While at one time there would have been no question that Catholic Charities should pay unemployment tax, ever since the decision in Burwell v. Hobby Lobby, 573 US 682 (2014), there is no certainty as to the result to be reached here.