In a unanimous decision, the Supreme Court ruled that Catholic Charities in Wisconsin is exempt from paying unemployment taxes, affirming the organization's claim of religious discrimination. The court found that the state's requirement for the charity to pay taxes while exempting other religious groups violated the First Amendment's guarantee of religious freedom. Wisconsin argued that the charity's work was primarily secular, but the court emphasized that the state cannot discriminate based on theological choices. This ruling could have broader implications for religious organizations nationwide, as it challenges the state's ability to define religious purpose.