In the case of Communist Party, U.S.A., et al. v. Catherwood, Industrial Commissioner in 1960, the Supreme Court ruled that New York State could deny unemployment benefits to members of the Communist Party because they were part of an organization advocating for violent overthrow of government and thus violated state law. The court upheld a decision by New York's highest court which had found that membership in such organizations disqualified individuals from receiving these benefits under state law. This ruling was based on evidence showing that the party engaged in activities aimed at violently overthrowing existing governments and replacing them with communist regimes - actions deemed illegal under federal laws as well as those of many states including New York.

In the dissenting opinion for Communist Party, U.S.A., et al. v. Catherwood, Industrial Commissioner (1960), Justice Hugo Black argued that the majority's decision to uphold a New York law denying unemployment benefits to members of subversive organizations was unconstitutional. He believed it violated both freedom of speech and association protected by the First Amendment and due process rights under the Fourteenth Amendment. According to him, this ruling allowed states to punish individuals merely for their political beliefs or affiliations without any proof that they had committed illegal acts or posed a clear danger to society. Furthermore, he contended that such laws could be used arbitrarily against unpopular groups and would have a chilling effect on free expression and political debate in America.