The Wisconsin Supreme Court has rejected an effort by the state’s Democratic attorney general, Josh Kaul, to flout the U.S. Supreme Court and prevent Catholic Charities from receiving a religious exemption to Wisconsin’s unemployment compensation law. 

The Catholic Charities Bureau sought a religious exemption to paying into Wisconsin’s unemployment compensation program. The state denied the exemption, saying the charity’s operations “are not religious, per se” since the organization does not engage in “typical religious activities” like worship services and is also incorporated separately from the Catholic Church.

In June, the U.S. Supreme Court ruled unanimously in Catholic Charities’ favor after the charity sued the state. The justices found that Wisconsin violated the Constitution by making decisions on whether to grant religious exemptions “based on religious differences” about whether charitable organizations should proselytize. The case was remanded to the Wisconsin Supreme Court. 

This week, the Wisconsin Supreme Court rejected Mr. Kaul’s effort to block Catholic Charities from receiving a religious exemption, declaring that the organization is “eligible for the religious purposes exemption to unemployment taxation.”

Rather than simply accept the Supreme Court’s June ruling, Mr. Kaul renewed his effort to block Catholic Charities from receiving an exemption. He argued in a brief filed in October that the way to ensure organizations received “equal treatment” was to eliminate the religious exemption altogether.

“Discrimination is cured by restoring equal treatment, which can be accomplished here in one of two ways: either by expanding the statutory exemption to groups like Catholic Charities or else by eliminating it altogether,” Mr. Kaul said. “By striking the exemption, this Court can avoid collateral damage to Wisconsin workers while still curing the discrimination the U.S. Supreme Court identified.”

The law firm representing Catholic Charities, Becket, said in a statement that the Wisconsin Supreme Court’s decision should end the state’s “crusade” against its client. The group’s vice president, Eric Rassbach, said, “You’d think Wisconsin would take a 9-0 Supreme Court loss as a hint to stop digging.”

“But apparently Attorney General Kaul and his staff are gluttons for punishment. Thankfully, the Wisconsin Supreme Court put an end to the state’s tomfoolery and confirmed that Catholic Charities is entitled to the exemption it already won,” he added. “Wisconsin should have taken the L … The Wisconsin Supreme Court’s order today protects not just Catholic Charities, but every faith-based organization that relies on this exemption to serve the public.”