U.S. Supreme Court

Case #1: National Implications

Catholic Charities Bureau, Inc. v. Wisconsin Labor & Industry Review Commission

Who gets to decide if your ministry is religious enough?

Catholic Charities Bureau, a diocesan nonprofit in Wisconsin, has faithfully served disadvantaged populations, including the disabled, elderly, and indigent, without proselytizing or restricting services to Christians. Yet the state of Wisconsin denied the nonprofit’s request for a religious exemption from its unemployment insurance program, asserting that its work isn’t “religious enough.” The state’s rationale is that the organization serves people of all faiths and doesn’t actively evangelize, thereby failing to meet government-imposed standards of religiosity. In this case, the lower courts upheld the state’s decision, agreeing that the organization did not meet the statutory criteria for a religious exemption because its services are broadly inclusive rather than expressly religious. The U.S. Supreme Court will now determine whether such a narrow definition of religiosity is constitutional. This decision could either affirm or erode the autonomy of faith-based organizations in defining their own religious mission and impact the scope of religious exemptions nationwide.

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Ministry Impact

A ruling in favor of Catholic Charities could reaffirm the independence of religious organizations, allowing them to remain faithful to their mission without governmental interference.

Conversely, a ruling against Catholic Charities could establish a dangerous precedent: Ministries might need to adjust their operations—potentially engaging in more overt evangelism or limiting their services to members of their faith—to meet legal standards. This could alienate those they seek to serve and create divisive barriers. Worse, it could open the door to broader governmental scrutiny of religious practices, risking the loss of tax exemptions and other critical protections.

What Your Ministry Can Do

1. Review and Update Religious Exemptions

  • Assess your ministry’s operational practices to ensure that they align with your faith-based mission. This includes reviewing service provisions, hiring practices, and employee expectations to ensure they are explicitly religious in nature.
  • Clarify your ministry’s religious mission in governing documents and policies, ensuring that your bylaws and mission statements reflect your faith-based purpose.
  • Consult with legal counsel to determine how your ministry qualifies for religious exemptions under both state and federal laws. Legal experts can help you align your operations with religious exemption criteria.

2. Ensure Clear Documentation of Religious Activities

  • Establish clear documentation showing the religious nature of your ministry’s work, including outreach efforts and mission-driven activities. This will be vital in defending your organization’s right to religious exemptions in the event of legal scrutiny.

Brotherhood Mutual is pleased to provide Legal Assist as a complimentary resource. Services through Legal Assist aim to provide general risk management guidance to our current and prospective policyholders.

While the information provided in this resource is intended to be helpful, it does not constitute legal advice and should not be used as a substitute for advice from a licensed attorney in your area. Please note that no attorney/client relationship is established through this process, and no legal advice will be provided. We strongly recommend regular consultations with a licensed local attorney as part of your risk management program.

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