States That Work: A Labor Policy Roadmap Across America – 4th Edition cover
Labor Policy Series

States That Work: A Labor Policy Roadmap Across America – 4th Edition

Alan Jernigan, Jonathan Williams, Lee Schalk & Christian Whittle • September 9, 2026

Introduction

The American Dream is a defining quality of this nation, and it is a promise worth protecting. Central to that promise is the freedom to pursue a work arrangement that best serves individuals and their families. States play a critical role in honoring that promise by expanding flexible options and removing unnecessary barriers to work. When states get labor policy right, the American Dream becomes an American reality.

Introductory chapters of this report discuss key labor policy events from recent months and explain the 10 labor policies promoted and highlighted throughout the publication. Each state then receives its own page that provides an overview of key labor facts, including unionization rates for both the private and public sectors and private sector job growth rates.

To rank the 50 states on how they prioritize labor freedom, this publication provides a snapshot and ranking of each state’s labor policies and landscape. Using this information, workers, businesses, and lawmakers can identify if a state’s policies are hindering or protecting workers’ freedom and flexibility. The publication also includes trusted policy solutions developed by ALEC’s Commerce, Insurance and Economic Development Task Force to expand worker and workplace freedom.

For the second consecutive year, Arizona earned the first-place ranking in this publication. Not only has Arizona been a leader in passing gold standard universal recognition of occupational licensing reform, but it also passed a first-in-the-nation reform banning union release time. The percentage of government jobs is the eighth lowest in the nation, meaning the private sector provides noticeably more employment and opportunity to Arizonans than the government.

Alaska placed last, as the legislature has not passed any recommended reforms. The policy it came closest to earning a star for is the Public Employee Rights and Authorization Act. However, the Alaska Supreme Court overturned the Administrative Order.

This publication reflects data and policies that were effective as of July 2026. State minimum wage information reflects rates effective as of July 1, 2026. All changes after this date will be reflected in the next edition of this publication.

As Americans consider options for pursuing their goals, they can use this publication to determine if a specific state is the best choice for them. Businesses can use this resource for determining which states prioritize policies that welcome skilled workers. And, for American lawmakers, the rankings can assist in identifying existing protections for labor choice and areas for improvement.

Increasing labor freedom not only increases flexibility and opportunity, but it also increases economic competitiveness and makes states more desirable locations for those looking to grow in their careers.