States that Work: A New Report Outlining Labor Policy Across America

In a recent Breakdown from the American Legislative Exchange Council, Lars Dalseide sat down with ALEC Commerce, Insurance, and Economic Development (CIED) Task Force manager Alan Jernigan to discuss States That Work: A Labor Policy Roadmap Across America. The report, spearheaded by Jernigan, evaluates each state’s labor policies based on ten model reforms developed by the CIED Task Force.

“We examine 10 CIED model policies that are key for the labor reforms across the states,” explained Jernigan “It takes a number of different approaches, from the public sector reform to private sector workers to occupational licensing, to give a full overall shot of what each state has for the labor policy. And it will serve as a resource for both legislators, businesses and workers to figure out what’s the best environment for them.”

At the top of this year’s rankings is Arizona, which earned five and a half out of ten possible stars. In addition to being the only state to ban Union release time, Arizona earned high marks for its right-to-work protections and its limits on government union influence. “It protects taxpayer dollars and makes sure that the workers are getting paid for the work they’re doing,” Jernigan said.

Utah and Georgia came next – Utah earning high marks for its ban on public sector collective bargaining – a move designed to ensure government employees answer to taxpayers rather than negotiating with the very officials who approve their contracts. Georgia followed in third after adopting the Taxpayer Dollars Protect Workers Act, which requires companies receiving state economic incentives to hold secret ballot union elections and safeguard workers’ personal information, protecting employees from potential intimidation during unionization efforts.

At the bottom of the rankings is Alaska, based largely on the absence of any recommended reforms, along with the second-highest reliance on government jobs

“They don’t have as many private sector opportunities as other states, and are really reliant on the government to employ their citizens,” Jernigan explained.

Massachusetts and New York followed close behind – Massachusetts in 49th after failing to adopt any of the ten model reforms and New York, long a mainstay near the bottom of any worker freedom rankings, continues to weigh down its workforce with heavy regulations.

“They just haven’t given their workers that freedom and flexibility to find their version of the American dream,” he lamented.

Despite strong showings at the top, Jernigan emphasized that even the best-performing states still have significant room to improve. Universal recognition of occupational licenses remains one of the most impactful reforms, allowing workers to carry their skills and credentials across state lines without unnecessary delays or duplicative requirements. By embracing the right reforms, states could unlock new levels of prosperity and growth.

“With so much opportunity, that’s kind of what makes this report so exciting. There are so many ways for even the top states to continue to get better and better,” Jernigan concluded.