Christian After-School Program Is Exempt From Illinois Unemployment Taxes

In By the Hand Club for Kids, NFP, Inc. v. Illinois Department of Employment Security, (IL Cir. Ct., July 18, 2018), an Illinois state trial court held that an evangelical after-school program for impoverished Chicago school children is exempt from the requirement to pay unemployment taxes to cover its employees.  The  court held that the group falls under the exemption for organizations operated primarily for religious purposes. The state argued that the organization is merely an after-school program that primarily furnishes homework help, tutoring, hot meals and medical attention.  The court however emphasized that the group sees these charitable acts a a religious practice, and also that the organization proselytizes the children participating in their program.  ADF issued a press release announcing the decision.