Koolau Baptist Church v. Department of Labor & Industrial Relations

OPINION OF THE COURT BY

NAKAMURA, J.

The Circuit Court of the First Circuit held the exaction of unemployment insurance taxes from the Koolau Baptist Church contravenes the Federal Unemployment Tax Act (FUTA) and the First Amendment. But we agree with the Department of Labor and Industrial Relations (the department) that the circuit court erred on both counts and reverse the ruling.

I

The Hawaii Employment Security Law, Hawaii Revised Statutes (HRS) Chapter 383, provides a measure of protection against wage loss resulting from temporary unemployment for Hawaii’s workers. Benefits paid to…