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

Chapter 2: Understanding the State Pages

Labor Policy Rank

For this report, 10 state-level labor policies were selected as consequential reforms that promote worker and workplace freedom. These are listed on each state page. States that have passed substantial versions of the reforms receive a full gold star, increasing their overall Labor Policy Rank. States that have passed similar reforms in need of improvement receive half stars. States that have not passed the reforms or that have repealed them receive no stars.

The states were then ranked according to these stars, with the higher number of stars earning a better rank on a 1-50 scale. The state ranked in 1st place earned the most stars and the state in 50th place earned the least. Ties were broken using state employment data comparing the number of government jobs with the total number of jobs in a state. Preference went to the states in which government jobs constituted a lower percentage of total jobs in the state.

Labor Policy Checklist

Each state page features a list of 10 labor model policies vetted and recommended by ALEC’s Commerce, Insurance, and Economic Development Task Force and featured in ALEC’s Essential Policy Solutions. Each policy is explained in detail on subsequent pages and can also be found at ALEC.org.

States receive one gold star for each law passed containing one of these reforms. Half stars indicate partial reforms that may include significant exemptions or non-recommended standards. Empty stars indicate that the reform is not active in a state.

1. Right-to-Work Act

The Right to Work Act provides that no employee must join or pay dues to a union, or refrain from joining a union, as a condition of employment. It establishes penalties and remedies for violations of the Act’s provisions.

Employment in Right to Work states has increased by 16.4% since 2014. States without this reform experienced half of the growth.

2. Taxpayer Dollars Protect Workers Act

The Taxpayer Dollars Protect Workers Act requires employers receiving taxpayer-funded economic incentives to agree to safeguard the personal information of their employees and use the secret ballot in unionization elections as a condition of receiving those incentives.

Secret ballots ensure voters can cast votes in private and away from interested parties. This protection from coercion and intimidation is among the many reasons federal, state, and local elections use secret ballots to protect voters’ rights and ensure election integrity. While efforts to protect election integrity usually focus on such governmental elections, states are expanding the effort to protect workers’ votes and voices

3. Open Contracting Act

The Open Contracting Act prohibits public agencies from imposing labor requirements as a condition of performing public works.

Government-mandated PLAs typically drive-up costs by 12% to 20% due to reduced competition. By prohibiting these agreements, the Open Contracting Act encourages more competitive bidding processes, potentially lowering project costs and ensuring that taxpayer money is spent efficiently. This helps in delivering better value and quality in public infrastructure projects without unnecessary financial burdens.

4. Uniform Worker Classification Act

The Uniform Worker Classification Act simplifies the criteria used to define independent contractors with respect to employment and imposes objective standards on the differentiation of independent contractors from employees. This Act also provides for uniformity of a state’s laws where the distinction between employees and independent contractors is relevant.

5. Model Interstate-Mobility and Universal-Recognition Occupational Licensing Act

The Model Interstate-Mobility and Universal-Recognition Occupational Licensing Act establishes a process for providing occupational licenses to qualified applicants from other states.

Obtaining an occupational license to work in a new state often requires workers to reapply for a license for the same profession they are already working in a different state. Many times, individuals must pursue additional training, education, and testing, even if they already have a license or years of work experience practicing the profession. This extra time, energy, and money impose great financial and personal burdens on professionals and often deters them from moving to or conducting business in new states. A universal recognition policy prevents the duplicative licensing process and allows individuals to get to work quicker in their experienced profession and contribute to the overall state economy.

*A full star is awarded if a state’s policy includes three or more of the most crucial elements: “scope of practice” language, recognition of private certifications and/or work experience, no residency requirement, minimal occupation exceptions, and a defined time period for determining parity.

6. Occupational Licensing Review Act

The Occupational Licensing Review Act establishes a sunrise and sunset review process for reviewing occupational licensing regulations. Often, occupation license regulations sit on books for years without proper review.

Sunrise review requires the state to evaluate whether proposed licensing regulations are necessary to protect public health and safety or if it adds unnecessary burdens to the applicants. Sunset reviews require reauthorization to make sure regulations are up to date with innovations.

*Half stars are awarded if a state has either a sunset or sunrise review process but not both.

7. Collateral Consequences Reduction Act

The Collateral Consequences Reduction Act presents a process for occupational licensing boards to revoke, suspend or limit an occupational license for a current licensee who has been convicted of a crime. It also allows an ex-offender who aspires to obtain an occupational license to petition a licensing board for review of their criminal record at any time for a determination of whether the individual’s criminal record will prevent them from obtaining a license. It also outlines the circumstances for which a licensing board can deny an ex-offender from obtaining a license.

The recidivism rate among non-violent offenders who are employed shortly after release and maintain employment after a year is only 16%. By creating an easier barrier of entry into the workforce for ex-offenders, communities are safer and more Americans are employed.

*A full star is awarded if a state’s policy includes three crucial elements: elimination of blanket bans, creation of a petition process, and requirement that a person’s committed crimes and the scope of a licensed occupation be “substantially” or “directly” related. Half stars are awarded if any of these sections are missing or if all three sections are included but contain significant inferior standards or significant exclusions.

8. Public Employee Rights and Authorization Act

The Public Employee Rights and Authorization Act requires notices to avoid public employees being misled into forfeiting freespeech rights and suffering financial losses.

*Half stars are awarded if the reform applies to only specific types of public employees or if types of employees are exempt.

9. Fair and Accountable Public Sector Authority Act

To better ensure government accountability to all residents and that third party employee associations do not have preferential powers beyond what other individuals and groups in the state have, the Fair and Accountable Public Sector Authority Act bans government sector collective bargaining. Nothing in this Act interferes with the freedom of public employees to voluntary support and join employee associations or employee associations and government employers from meeting with one another to discuss government workforce policies.

This model policy seeks to protect tax-payer dollars because of the high costs incurred by governments via collective bargaining. In the 2024 fiscal year, the U.S. Office of Personnel Management reported that the U.S. Government spent approximately $181.6 million dollars on collective-bargaining costs.

*Half stars are awarded if the reform applies to only specific types of public employees or if types of employees are exempt.

10. Prohibition on Paid Union Activity (Release Time) by Public Employees Act

The Prohibition on Paid Union Activity (Release Time) by Public Employees Act prohibits “release time”—the practice of paying a public employee a public salary for time spent in union recruiting and representation activities. Egregious examples of paid union activity are present all over the country. The city of Phoenix, AZ, for example, covered 67,511 hours of paid union release time in 2019, which cost taxpayers $3.7 million.

Jobs Overview

State Government Job Prevalence

Using data from the Bureau of Labor Statistics, we calculated the percentage of jobs that are government jobs in state. These percentages were then ranked, with the state with the lowest percentage of government jobs in April 2026 and 50th ranked 1st place being the state with the highest percentage of government jobs in April 2026 ranked 50th.

A chart listing these rankings can be found in Chapter 3.

Average 10-Year Private Employment Growth (2016-2026)

Using data from the Bureau of Labor Statistics, we calculated the average private sector employment growth in each state from 2016 to 2026. The state with the highest growth rate ranks 1st, and the state with the lowest growth rate ranks 50th.

A chart listing these rankings can be found in Chapter 3.

State Minimum Wage

Lists each state’s hourly minimum wage (as of July 1, 2026) as provided by the U.S. Department of Labor. Employers subject to the Fair Labor Standards Act (FLSA) must pay at least the Federal minimum wage of $7.25. Some states may have different minimum wages depending on the size of the businesses or type of employment, and many states also allow localities to pass minimum wages higher than the state minimum wage.

A graph comparing state minimum wages can be found in Chapter 3.

Union Membership

Lists current state public and private sector employment and union membership information. It also lists notable public sector unions and their membership numbers. Data comes from unionstats.com.

States’ union membership percentages were compared and ranked against each other, with 1st place indicating the lowest membership rate and 50th place indicating the highest membership rate.

Chart listing these rankings can be found in Chapter 3.

Political Landscape

Lists which political party holds control of the governorship and the chambers of the state legislature.