On Friday, the Vermont Supreme Court decided Mid Vermont Christian School v. Department of Employment and Training, rejecting the claim of an independent Christian school that it should be exempt from the state’s unemployment compensation law. The Court affirmed the determination of the state’s Employment Security Board that Mid Vermont Christian School fit neither of the statutory exemptions (21 VSA 1301(6)(C)(vii)(I)) —(1) a church or association of churches, or (2) an organization operated primarily for religious purposes which is operated, supervised, controlled, or principally supported by a church or association of churches.
The school claimed that requiring it to pay unemployment compensation violated the First Amendment and the Equal Protection Clause of the Federal Constitution, and the Common Benefits Clause of the Vermont Constitution. However the court disagreed, saying that all of the school’s constitutional arguments were based on its claim that the Vermont distinguishes between religious schools owned or operated by churches and those run independently. However, church-run schools are also subject to the tax, since they are operated for educational, not religious, purposes.
