The seven members of the Wisconsin Supreme Court hear oral arguments. (Henry Redman | Wisconsin Examiner)

I’ve studied the rulings of the Wisconsin Supreme Court for well over a decade, and for most of that time, the court tended to put corporations and employers over workers or consumers. That has changed in the last couple of years. And now that voters have elected a pro-worker majority, billionaires like Elon Musk are spending big to return a pro-corporate majority to power. 

In a 2023 report that I authored for People’s Parity Project Action, we found that the state Supreme Court had ruled for corporations or employers in most of the cases where individuals were on the other side. The report commented on the stakes of that year’s election: “Instead of the reactionary justices who’ve put corporations over workers, [Wisconsinites] could have a majority that gives everyone a fair shot.”

In the weeks after our report was released, around the time of the spring 2023 election, the high court ruled for workers or consumers in several cases. Later that year, Judge Janet Protaseiwicz was sworn in, forming a progressive, pro-democracy majority. 

Around a year ago, this new majority ruled along ideological lines in a case that impacted workers across the state. The appeal involved unemployment insurance for Catholic Charities and some affiliated charities that help the poor and people with disabilities find jobs. The nonprofit employers tried to argue that they were exempt from the unemployment insurance system under the “ministerial” exception, which applies to employers that are both controlled by a religious organization and “operated primarily for religious purposes.” 

The court ruled 4–3 that the organizations aren’t “operated primarily for religious purposes.” The justices examined the activities of the groups (job training, help with daily living activities, etc.) and concluded that they aren’t religious. As the court notes, the smaller charities weren’t even receiving funding from Catholic Charities and were primarily funded through government contracts. 

The majority emphasized that the unemployment statute has always been interpreted broadly to cover as many workers as possible, ever since the state became the first to set up such a system in 1932. The statute says that unemployment compensation addresses an “urgent public problem” by sharing the burdens of unemployment. 

This ruling meant that dozens of Catholic Charities workers and all of its sub-organizations’ employees — the people who help people in need find jobs — can get unemployment benefits if they lose their jobs through no fault of their own. The Freedom from Religion Foundation noted that a ruling in favor of Catholic Charities would have jeopardized unemployment insurance for thousands of workers at “religiously-affiliated hospitals and colleges.” 

Justice Rebecca Bradley, whose dissent was partially joined by the other conservatives, began with a Bible verse and an invocation of “Jesus Christ himself.” She argued for deferring to an employer’s stated motivations to determine if its workers are ministerial. 

Bradley also argued that the majority’s ruling violates the First Amendment right to the free exercise of religion. The case is now headed to the U.S. Supreme Court, which has expanded the First Amendment rights of religious employers at the expense of their workers. Though this case implicates the First Amendment, most cases involving workers only involve state law. This means that the Wisconsin Supreme Court gets the final say. 

Right now, billionaires and corporations are spending big to end the pro-worker majority and put the state Supreme Court’s power back in the hands of right-wing justices who will rule in their favor. With Musk-aligned groups pouring in at least $12 million, spending in the race is on track to break the record for spending in a U.S. judicial election — a record set in 2023 in Wisconsin, the election that changed control of the court. 

The pro-corporate majority that presided over the state for a decade-and-a-half first came to power in 2008. In that year’s election, corporate interests deliberately targeted a justice who had ruled against the manufacturers of dangerous lead paint. This majority was mired in conflicts of interest and bitter interpersonal conflicts. In 2010, they adopted an ethics rule that was literally written by a corporate-funded group that backed the conservative justices. A few years later, they shut down a campaign finance investigation into big business groups that had spent millions to get them elected. 

For billionaires and corporations, the stakes are clear in this year’s high court election. Wisconsin judges are ruling on cases affecting voters, workers, and people facing criminal charges. 

In one case, Musk’s Tesla car company is currently appealing a judge’s decision to deny it an exemption to a state law that prohibits car companies from owning car dealerships. Musk’s company wants to open four dealerships throughout the state — at a time when those dealerships are facing hundreds of protests in states around the country. If a Tesla customer sues the company, Musk would probably prefer that a pro-corporate judge hear the case. 

With the court’s current majority in power, workers and consumers actually have a shot at justice. The justices have made progress in protecting democracy. They finally struck down gerrymandered election districts and overturned a prior ruling that barred the use of ballot drop boxes. 

Musk and his wealthy friends want to take all of that away. But in Wisconsin, the voters decide who sits on their state’s highest court. 

The Supreme Court on Friday said it would take up a new religious rights case over whether a Catholic charitable organization must pay Wisconsin’s unemployment tax.

The justices will review a divided state Supreme Court ruling that refused to grant an exemption to the Catholic Charities Bureau, based in Superior, Wisconsin. The state court ruled that the work of Catholic Charities and four related organizations is primarily not religious, although it found that the motivation to help older, disabled and low-income people stems from Catholic teachings.

The case probably will be argued in the spring.

The Supreme Court in recent years has issued an unbroken string of decisions siding with churches and religious plaintiffs in disputes with states.

Lawyers for the Wisconsin groups argued to the court that the decision violates religious freedoms protected by the First Amendment. They also said the court should step in to resolve conflicting rulings by several top state courts on the same issue.

“Wisconsin is trying to make sure no good deed goes unpunished. Penalizing Catholic Charities for serving Catholics and non-Catholics alike is ridiculous and wrong,” Eric Rassbach, the lead lawyer for Catholic Charities at the Supreme Court, said in a statement.

Wisconsin Attorney General Joshua Kaul had urged the high court to stay out of the case, arguing that much of the groups’ funding comes from state and local governments, and the joint federal and state Medicaid program.

Employees don’t have to be Catholic and “people receiving services from these organizations receive no religious training or orientation,” Kaul wrote.

Catholic Charities has paid the unemployment tax since 1972, he wrote.

Wisconsin exempts church-controlled organizations from the tax if they are “operated primarily for religious purposes.” The state high court ruled that both the motivations and the activities have to be religious for organizations to avoid paying the tax.

A group of religious scholars, backing Catholic Charities, told the court that “the case involves governmental interference with religious liberty” that warrants the justices’ intervention.

Catholic, Islamic, Lutheran, Jewish and Mormon organizations also filed briefs in support of Catholic Charities.

At the state Supreme Court, the Freedom from Religion Foundation argued that a ruling for Catholic Charities would extend to religiously affiliated hospitals and some colleges across Wisconsin, potentially taking their employees out of the state unemployment insurance system.

Catholic Charities in Superior manages nonprofit organizations that run more than 60 programs designed to help older or disabled people, children with special needs, low-income families, and people suffering from disasters, regardless of their religion, according to court documents.

Wisconsin Watch is a nonprofit and nonpartisan newsroom. Subscribe to our newsletter to get our investigative stories and Friday news roundup. This story is published in partnership with The Associated Press.

U.S. Supreme Court to hear Catholic Charities plea to avoid Wisconsin unemployment tax is a post from Wisconsin Watch, a non-profit investigative news site covering Wisconsin since 2009. Please consider making a contribution to support our journalism.