The Wisconsin Catholic Charities case has implications for other religiously connected nonprofits, including hospitals, and for state unemployment systems.

A chapter of Catholic Charities in Wisconsin contends it should be exempted from the state's unemployment compensation system because it's a charitable organization with a religious mission.

The U.S. Supreme Court appeared sympathetic on Monday toward a bid by an arm of a Catholic diocese in Wisconsin for a religious exemption from the state's unemployment insurance tax in the latest religious rights case to reach the justices.