Salem College & Academy, Inc. v. Employment Division

Petitioner seeks judicial review of the Employment Division referee’s decision affirming the Division’s tax assessment for reimbursement of unemployment compensation paid to four of its former employes. It contends that it is statutorily exempt from the Unemployment Compensation Act (ORS 657.005 to 657.990) or, if not exempt, that the application of the Act to it is forbidden by the First Amendment to the United States Constitution. We conclude that petitioner is not exempt by statute, but that applying it to petitioner and not to church-related schools violates the Establishment Clause of…