Whether denying unemployment benefits to a claimant who refuses Saturday work for religious reasons burdens the Free Exercise Clause.
Holding
Yes. South Carolina imposed an unconstitutional burden on Sherbert's free exercise of religion by making her choose between observing her Sabbath and receiving unemployment benefits.
Reasoning
The Free Exercise Clause absolutely protects religious belief, but religiously motivated conduct may sometimes be regulated. The Court explained that prior cases sustaining regulation of religiously motivated conduct involved substantial threats to public safety, peace, or order. Sherbert's refusal to work on her Sabbath posed no comparable threat.
The burden was constitutionally significant even though South Carolina did not criminally compel Sherbert to work on Saturday. Denying benefits put unmistakable economic pressure on her to abandon a central religious practice: she had to choose either to follow her faith and forfeit benefits or to work on Saturday and violate her faith. That pressure was equivalent in constitutional substance to a fine imposed for Saturday worship.
The fact that unemployment compensation was characterized as a public benefit rather than an entitlement did not alter the analysis. The government may not condition even a discretionary benefit on surrendering a First Amendment freedom, because doing so achieves indirectly what it could not command directly.
South Carolina's broader statutory scheme reinforced the constitutional concern. State law protected employees who conscientiously objected to Sunday work during certain emergencies, while its unemployment rules were applied to deny protection to a Saturday Sabbath observer. The resulting disparity underscored the burden on a minority faith.