50 State Map Project

STATE Rhode Island

Tier II - Fair
Potential New Jobs Created: 
2,358
Potential New Businesses Created Per Year: 
156

Factors contributing positively to the state's ranking

Strong at-will employment doctrine
Acceptance of independent-contractor status
Covenants not to compete are enforceable

Factors contributing negatively to the state's ranking

State wage and hour laws impose additional obligations beyond federal standards
State and local anti-discrimination laws in excess of federal standards
State protected leave laws more expansive than federal standards
Limitations on pre-hire requirements

STATE Maryland

Tier II - Fair
Potential New Jobs Created: 
14,365
Potential New Businesses Created Per Year: 
987

Factors contributing positively to the state's ranking

Many state employment laws follow federal requirements
Relatively strong protections for employers providing references
Low workers' compensation premiums
Low wage ceiling subject to unemployment insurance taxes

Factors contributing negatively to the state's ranking

Several restrictions on employer pre-hire inquiries into applicant history
Additional “living wage” requirements
Not a right-to-work state

STATE New Jersey

Tier III - Poor
Potential New Jobs Created: 
32,212
Potential New Businesses Created Per Year: 
2,146

Factors contributing negatively to the state's ranking

Among the highest rates of labor and employment-related lawsuits
Significant exceptions to at-will employment doctrine
Aggressive enforcement by commission on human rights and labor department
Heightened scrutiny of independent contractor relationship
Additional posting and recordkeeping requirements beyond federal law
Not a right-to-work state

STATE Alabama

Tier I - Good
Potential New Jobs Created: 
4,811
Potential New Businesses Created Per Year: 
355

Factors contributing positively to the state's ranking

State wage-hour requirements generally mirror federal law
Employers given latitude for pre-employment background checks
Follows federal law with regard to employment discrimination
Right-to-work state
State WARN-type law requires only notice to government officials; no advance notice or compensation in addition to federal standards requirements
Strong adherence to at-will employment doctrine
Covenants not to compete generally enforceable
Low threshold of wages subject to unemployment insurance taxes

STATE Alaska

Tier II - Fair
Potential New Jobs Created: 
1,819
Potential New Businesses Created Per Year: 
123

Factors contributing positively to the state's ranking

Federal law governs leave requirements
No state WARN-type laws beyond federal requirements
Most types of applicant screening and background checks permissible
“Use it or lose it” vacation policies permissible

Factors contributing negatively to the state's ranking

Daily overtime generally required, with broad exceptions
Several exceptions to at-will employment doctrine
State anti-discrimination laws extend beyond federal requirements
High wage base for unemployment insurance taxes

STATE Arizona

Tier II - Fair
Potential New Jobs Created: 
10,959
Potential New Businesses Created Per Year: 
860

Factors contributing positively to the state's ranking

State wage-hour requirements largely mirror federal law
State law prohibiting political subdivisions from enacting a minimum wage in excess of the federal minimum wage
Employers given wide latitude to screen applicants

Factors contributing negatively to the state's ranking

Additional state requirements to verify employment eligibility
Applicability of some discrimination prohibitions exceeds federal requirements
Additional state recordkeeping requirements in excess of federal standards

STATE Arkansas

Tier II - Fair
Potential New Jobs Created: 
5,574
Potential New Businesses Created Per Year: 
422

Factors contributing positively to the state's ranking

State wage-hour requirements largely follow federal law
No state WARN Act-type requirements beyond federal law
Right-to-work state
Workers’ compensation premiums among the lowest in the nation

Factors contributing negatively to the state's ranking

Relatively high number of labor and employment lawsuits
Restrictions on employers providing employment reference
Limitations on enforceability of covenants not to compete

STATE California

Tier III - Poor
Potential New Jobs Created: 
138,001
Potential New Businesses Created Per Year: 
10,087

Factors contributing negatively to the state's ranking

Hostility towards non-competition agreements
Complex wage and hour laws with elaborate overtime provisions that surpass federal requirements
State WARN-type requirements that differ from federal law
Anti-discrimination laws exceeding federal requirements and remedies
Privacy-based laws that impact applicant and employee screening
Privacy-based laws that impact applicant
Additional state-based leave requirements that exceed federal law

STATE Colorado

Tier II - Fair
Potential New Jobs Created: 
12,669
Potential New Businesses Created Per Year: 
853

Factors contributing positively to the state's ranking

Low ratio of labor and employment lawsuits per capita
Low workers’ compensation insurance premiums
No additional WARN Act-type requirements beyond federal law

Factors contributing negatively to the state's ranking

Presumption of employee status and aggressive fine structure for misclassifications
State discrimination laws go beyond federal requirements
Covenants-not-to-compete generally disfavored
Daily overtime requirement
Restrictions on pre-hiring background checks

STATE Connecticut

Tier III - Poor
Potential New Jobs Created: 
12,265
Potential New Businesses Created Per Year: 
779

Factors contributing negatively to the state's ranking

Restrictions to the at-will employment doctrine
Detailed wage and hour laws that differ from federal standards
Multiple state leave protections beyond federal requirements
Significant restrictions on independent-contractor relationships
State WARN-type law exceeds federal standards
Restrictions on employer inquiries to applicant history

STATE Delaware

Tier II - Fair
Potential New Jobs Created: 
1,823
Potential New Businesses Created Per Year: 
117

Factors contributing positively to the state's ranking

Follows federal standards with regard to overtime law
State anti-discrimination laws mirror federal standards, including damages caps
No state WARN-type law beyond federal requirements
Protected leave laws mirror federal standards

Factors contributing negatively to the state's ranking

Heightened scrutiny of independent contractor relationships
Some restrictions on screening employees
Additional wage and hour requirements over and above federal law

STATE Florida

Tier I - Good
Potential New Jobs Created: 
28,095
Potential New Businesses Created Per Year: 
2,056

Factors contributing positively to the state's ranking

Strong recognition of the at-will employment doctrine
Minimum wage set by federal law
No state prevailing wage provisions
No state WARN-type law beyond federal requirements
Strong right-to-work guarentees
General acceptance of independent-contractor relationship
State law protective of employer references

STATE Georgia

Tier I - Good
Potential New Jobs Created: 
12,695
Potential New Businesses Created Per Year: 
941

Factors contributing positively to the state's ranking

Strong at-will employment doctrine
Overtime requirement set by federal law
No state prevailing wage provisions
Prohibition on local governments affecting the wages and benefits provided by contractors
Strong right-to-work guarentees
State law protective of employer references
Acceptance of independent contractor relationship

STATE Hawaii

Tier III - Poor
Potential New Jobs Created: 
3,707
Potential New Businesses Created Per Year: 
247

Factors contributing negatively to the state's ranking

State WARN-type law that exceeds federal requirements
Extensive state leave requirements beyond federal law
Detailed state wage and hour laws that exceed federal requirements
State anti-discrimination laws above and beyond federal requirements

STATE Idaho

Tier I - Good
Potential New Jobs Created: 
2,099
Potential New Businesses Created Per Year: 
158

Factors contributing positively to the state's ranking

Minimum wage requirement set by federal law
No state prevailing wage provisions
No state WARN-type requirements beyond federal standards
Overtime requirements follow federal standards
Strong right-to-work guarentees
State law protective of employer references
Acceptance of independent contractor relationship
Low number of labor and employment lawsuits

STATE Illinois

Tier III - Poor
Potential New Jobs Created: 
43,488
Potential New Businesses Created Per Year: 
2,873

Factors contributing negatively to the state's ranking

Wide-ranging state employment discrimination laws beyond federal requirements
Significant restrictions on employer inquiries into applicant or employee history
Not a right-to-work state
Mini-WARN Act that differs significantly from federal law
Very high ratio of labor and employment lawsuits per 10,000 employees
Presumption against independent contractor status in construction industry
Recent changes in state law making it easier to bring class action lawsuits relating to wage payments

STATE Indiana

Tier II - Fair
Potential New Jobs Created: 
11,688
Potential New Businesses Created Per Year: 
786

Factors contributing positively to the state's ranking

State employment laws that largely track federal requirements
Only narrow exceptions to at-will employment doctrine
Strong protections for employers providing employment references
No additional state WARN-type law
Relatively low wage ceiling subject to unemployment tax
Punitive damages not generally available in employment discrimination cases

Factors contributing negatively to the state's ranking

Not a right-to-work state
High amount of labor and employment related legislation

STATE Iowa

Tier II - Fair
Potential New Jobs Created: 
7,340
Potential New Businesses Created Per Year: 
458

Factors contributing positively to the state's ranking

Relatively low number of labor and employment lawsuits
Wage and hour laws largely consistent with federal law
Right-to-work state
Low workers' compensation premiums

Factors contributing negatively to the state's ranking

Restrictions on using employee history in employment decisions
Potential liability in providing references
Heightened scrutiny of employers’ use of independent contractors
Mini-WARN Act requirements that are more expansive than federal standards
Relatively high wage ceiling subject to unemployment tax

STATE Kansas

Tier I - Good
Potential New Jobs Created: 
5,169
Potential New Businesses Created Per Year: 
327

Factors contributing positively to the state's ranking

State employment laws that largely track federal requirements
Relatively few restrictions on employer inquiries into applicant's history
Strong protections for employers providing employment references
Right to work state
Low workers' compensation premiums

STATE Kentucky

Tier II - Fair
Potential New Jobs Created: 
10,680
Potential New Businesses Created Per Year: 
766

Factors contributing positively to the state's ranking

Strong acceptance of at-will employment doctrine
No state WARN-type law beyond federal standards
Relatively low amount of labor and employment litigation
Few restrictions on employer pre-hire inquiries into applicant's history

Factors contributing negatively to the state's ranking

Additional overtime requirements beyond federal standards
High workers’ compensation premiums
Not a right-to-work state

STATE Louisiana

Tier II - Fair
Potential New Jobs Created: 
8,025
Potential New Businesses Created Per Year: 
582

Factors contributing positively to the state's ranking

Strong at-will doctrine
Minimum wage requirement mirrors federal law
No state prevailing wage provisions
State law prohibiting the establishment of local minimum wages
No state WARN-type requirements beyond federal law
Overtime requirements follow federal law
Strong right-to-work guarantees
Protection for former employers who provide references

Factors contributing negatively to the state's ranking

Very high ratio of labor and employment-related lawsuits
High workers’ compensation premium rates
Significant posting requirements beyond federal requirements

STATE Maine

Tier III - Poor
Potential New Jobs Created: 
3,747
Potential New Businesses Created Per Year: 
250

Factors contributing negatively to the state's ranking

Significant additional leave requirements beyond federal law
Higher minimum wage than required by federal law
High workers’ compensation premiums and benefits
Not a right-to-work state
Significant additional posting and notice requirements beyond federal requirements

STATE Massachusetts

Tier III - Poor
Potential New Jobs Created: 
26,772
Potential New Businesses Created Per Year: 
1,655

Factors contributing negatively to the state's ranking

Extensive restrictions on pre-hire background checks
Wide-ranging state employment discrimination laws beyond federal requirements
Extensive wage-hour regulation beyond federal requirements
Presumption against independent contractor status and aggressive enforcement
Three-hour reporting pay requirement
Prevailing and living wage laws
Notice payment law that can require severance for change in control

STATE Michigan

Tier III - Poor
Potential New Jobs Created: 
25,881
Potential New Businesses Created Per Year: 
1,858

Factors contributing negatively to the state's ranking

Wide-ranging state employment discrimination laws that exceed federal requirements
Not a right-to-work state
Uncapped damages available in employment discrimination claims
State-wide task force to pursue independent contractor misclassifications
State WARN-type law in excess of federal standards

STATE Minnesota

Tier II - Fair
Potential New Jobs Created: 
15,904
Potential New Businesses Created Per Year: 
952

Factors contributing positively to the state's ranking

Many state employment laws mirror federal requirements
Relatively low number of labor and employment litigation
Overtime requirements follow federal standards

Factors contributing negatively to the state's ranking

Very high wage ceiling subject to unemployment insurance taxes
Numerous additional state leave requirements beyond federal law
Not a right-to-work state
Employee handbook can be converted to binding contract
Broad anti-discrimination requirements beyond federal standards

STATE Mississippi

Tier I - Good
Potential New Jobs Created: 
1,758
Potential New Businesses Created Per Year: 
139

Factors contributing positively to the state's ranking

Leave requirements set by federal law
Wage-hour requirements follow federal law
No state WARN-type law
Employment discrimination protections follow federal law
Employers given latitude to screen applicants
Right-to-work state

STATE Missouri

Tier II - Fair
Potential New Jobs Created: 
12,884
Potential New Businesses Created Per Year: 
851

Factors contributing positively to the state's ranking

Most employment laws follow federal standards
State statute that prohibits municipalities from enacting minimum wage requirements that differ from the state minimum
Relatively strong protection for employer references

Factors contributing negatively to the state's ranking

Immediate pay requirement for discharged employees
No right-to-work protections
Relatively high labor and employment litigation rate

STATE Montana

Tier III - Poor
Potential New Jobs Created: 
2,773
Potential New Businesses Created Per Year: 
190

Factors contributing negatively to the state's ranking

Tough restrictions on independent contractors in certain industries
Weak protections for employer references
Not a right-to-work state
High workers’ compensation premiums and benefits
Weak adherence to the at-will employment doctrine

STATE Nebraska

Tier II - Fair
Potential New Jobs Created: 
3,706
Potential New Businesses Created Per Year: 
225

Factors contributing positively to the state's ranking

Relatively few employment-related lawsuits
Strong recognition of the at-will employment doctrine
Minimum wage set by federal law
No state prevailing wage provisions
No state WARN-type law beyond federal requirements
Overtime requirements track federal law
Strong right-to-work guarantees
Acceptance of independent contractor relationship

Factors contributing negatively to the state's ranking

No state statute protecting former employers who provide reference
Relatively high workers’ compensation benefits

STATE Nevada

Tier III - Poor
Potential New Jobs Created: 
8,285
Potential New Businesses Created Per Year: 
531

Factors contributing negatively to the state's ranking

Overtime requirements beyond federal law
State minimum wage that exceeds federal law
Exceptions to at-will employment doctrine
Employee handbooks convertible to contract
State anti-discrimination laws go above and beyond federal laws
Restrictions on applicant screening and obtaining references

STATE New Hampshire

Tier II - Fair
Potential New Jobs Created: 
3,662
Potential New Businesses Created Per Year: 
238

Factors contributing positively to the state's ranking

Few restrictions on employer inquiries into applicant history
Low ratio of labor and employment lawsuits per capita
Relatively low wage ceiling for unemployment insurance taxes

Factors contributing negatively to the state's ranking

Relatively wide-ranging state employment discrimination laws beyond federal requirements
Reporting pay requirement and strict final paycheck rules within 72 hours of termination
WARN-type notification requirements trigger for temporary or permanent layoffs of 25 or more employees, exceeding federal requirements

STATE New Mexico

Tier II - Fair
Potential New Jobs Created: 
3,619
Potential New Businesses Created Per Year: 
274

Factors contributing positively to the state's ranking

Overtime set by federal law
WARN-type requirements set by federal law
Covenants not to compete are enforceable

Factors contributing negatively to the state's ranking

Exceptions to at-will employment doctrine not limited to statutory reasons; for-cause standard will be implied by courts
State minimum wage exceeds federal law
Some restrictions on employer’s ability to conduct background screening of applicants
Detailed discrimination laws above and beyond federal standards

STATE New York

Tier III - Poor
Potential New Jobs Created: 
58,373
Potential New Businesses Created Per Year: 
3,996

Factors contributing negatively to the state's ranking

Very high ratio of labor and employment-related lawsuits
Differing state minimum wage requirements by industry
Extensive prevailing wage and overtime requirements for public contractors
Significant additional WARN-type notification requirements beyond federal law
Targeted enforcement of independent contractor relationship
Aggressive division of human rights and labor department
Not a right-to-work state

STATE North Carolina

Tier I - Good
Potential New Jobs Created: 
13,634
Potential New Businesses Created Per Year: 
952

Factors contributing positively to the state's ranking

State overtime and minimum wage set by federal law
Acceptance of independent-contractor status
Relatively few restrictions on an employer’s ability to screen job applicants
Right-to-work state
No state WARN-type law differing from federal requirements

STATE North Dakota

Tier I - Good
Potential New Jobs Created: 
1,380
Potential New Businesses Created Per Year: 
78

Factors contributing positively to the state's ranking

Minimum wage and overtime generally track federal requirements
Right-to-work state
Minimal restrictions on pre-employment screening
Voluntary verification process for independent contractors
Remedies under state discrimination laws are capped

STATE Ohio

Tier II - Fair
Potential New Jobs Created: 
28,031
Potential New Businesses Created Per Year: 
1,851

Factors contributing positively to the state's ranking

State wage and hours laws generally follow federal standards
“Use it or lose it” vacation policies permissible if policy is clear
Employers given latitude to conduct applicant screening

Factors contributing negatively to the state's ranking

State protected leave laws beyond federal requirements
Separate WARN-type law in addition to federal requirements
Unusual laws protecting unions
State discrimination law coverage exceeds federal standards

STATE Oklahoma

Tier I - Good
Potential New Jobs Created: 
5,776
Potential New Businesses Created Per Year: 
424

Factors contributing positively to the state's ranking

Acceptance of independent contractor relationship
Minimum wage set by federal law
No state WARN-type requirements in excess of federal law
Overtime set by federal law
Strong right-to-work guarantees
Protection for employers providing employee references

STATE Oregon

Tier III - Poor
Potential New Jobs Created: 
11,578
Potential New Businesses Created Per Year: 
787

Factors contributing negatively to the state's ranking

Many state-imposed categories of protected leave beyond federal law
Some of the toughest restrictions in the nation on employee screening
Limitations to at-will employment doctrine
Wage and hour laws that exceed federal requirements
Discrimination laws exceed federal standards

STATE Pennsylvania

Tier III - Poor
Potential New Jobs Created: 
36,210
Potential New Businesses Created Per Year: 
2,442

Factors contributing negatively to the state's ranking

State wage and hour laws exceed federal standards
State leave laws that differ from federal standards
State WARN-type law and severance mandates for control-share acquisitions
Significant limitations on at-will employment doctrine
State and local anti-discrimination laws more expansive than federal laws

STATE South Carolina

Tier I - Good
Potential New Jobs Created: 
7,349
Potential New Businesses Created Per Year: 
533

Factors contributing positively to the state's ranking

Minimum wage and overtime requirements set by federal law
Prohibition on establishing higher prevailing wages
Strong enforceability of employment at-will doctrine and covenants not to compete
State right-to-work law
No state WARN-type law beyond federal requirements
Few restrictions on employee screening
Employment discrimination laws generally track federal standards

STATE South Dakota

Tier I - Good
Potential New Jobs Created: 
1,028
Potential New Businesses Created Per Year: 
66

Factors contributing positively to the state's ranking

Leave requirements follow federal law
No state WARN-type law beyond federal standards
Minimum wage set by federal law
Overtime requirements set by federal law
Few restrictions on employer inquiries into employee history
Strong recognition of at-will employment doctrine
Right-to-work law

STATE Tennessee

Tier I - Good
Potential New Jobs Created: 
10,015
Potential New Businesses Created Per Year: 
698

Factors contributing positively to the state's ranking

Relatively strong at-will employment doctrine
Minimum wage set by federal law
Overtime requirements set by federal law
Strong right-to-work guarantees
State law protective of employer references
Acceptance of independent contractor relationship
No additional recordkeeping requirements beyond federal law

STATE Utah

Tier I - Good
Potential New Jobs Created: 
4,305
Potential New Businesses Created Per Year: 
306

Factors contributing positively to the state's ranking

Exceptions to at-will employment are narrow
Right-to-work state
Wage and hour requirements largely mirror federal standards
Few state restrictions on employer inquiries into applicant and employee history

STATE Vermont

 

Tier II - Fair
Potential New Jobs Created: 
1,743
Potential New Businesses Created Per Year: 
111

Factors contributing positively to the state's ranking

Many labor and employment laws follow federal standards
Low number of labor and employment lawsuits per 10,000 employees
Relatively low wage ceiling applicable to unemployment insurance tax

Factors contributing negatively to the state's ranking

State minimum wage in excess of federal minimum wage
High workers’ compensation premium rates
Relatively low adherence to at-will doctrine
Numerous restrictions on employer background checks for applicants

STATE Virginia

Tier I - Good
Potential New Jobs Created: 
11,592
Potential New Businesses Created Per Year: 
771

Factors contributing positively to the state's ranking

Labor and employment laws that generally follow federal requirements
Overtime requirements set by federal law
No additional WARN Act-type requirements in addition to federal law
Low workers’ compensation premiums
Strong adherence to at-will employment doctrine
Relatively low number of labor and employment lawsuits
Right-to-work state
Relatively strong protections for employers providing references

STATE Washington

Tier III - Poor
Potential New Jobs Created: 
17,847
Potential New Businesses Created Per Year: 
1,261

Factors contributing negatively to the state's ranking

Numerous labor and employment mandates that exceed federal standards
Daily overtime rate on public construction contracts
Very high wage ceiling for income subject to unemployment insurance tax
Very high workers’ compensation benefits
State minimum wage in excess of federal minimum wage
Relatively high number of restrictions on employer inquiries into applicant and employee history
No right-to-work protections

STATE West Virginia

Tier II - Fair
Potential New Jobs Created: 
3,647
Potential New Businesses Created Per Year: 
281

Factors contributing positively to the state's ranking

Many labor and employment laws track federal requirements
Low workers’ compensation benefits premiums
No WARN Act-type law in addition to federal law

Factors contributing negatively to the state's ranking

One-year limitations period for filing claims of employment discrimination
No right-to-work protections
High workers’ compensation benefits
High ratio of labor and employment lawsuits

STATE Wisconsin

Tier III - Poor
Potential New Jobs Created: 
17,294
Potential New Businesses Created Per Year: 
1,080

Factors contributing negatively to the state's ranking

State WARN-type law broader than federal standard
Employment-related debarment provisions
Significant additional posting and notice requirements
Significant restrictions related to independent-contractor relationships
State discrimination laws in excess of federal requirements
Aggressive enforcement by state employment-related agencies

STATE Wyoming

Tier II - Fair
Potential New Jobs Created: 
1,213
Potential New Businesses Created Per Year: 
71

Factors contributing positively to the state's ranking

Overtime requirements follow federal law
Minimum wage based on federal law
No additional state limitations on inquiries into an applicant’s or employee’s background
Leave laws follow federal requirements
No state WARN-type law beyond federal requirements
Strong right-to-work protections

Factors contributing negatively to the state's ranking

Some restrictions on at-will termination
Relatively high wage ceiling subject to unemployment taxes
Vacation pay-out required unless otherwise agreed

STATE Texas

Tier I - Good
Potential New Jobs Created: 
36,612
Potential New Businesses Created Per Year: 
2,643

Factors contributing positively to the state's ranking

Strong right-to-work protections
State law prohibiting political subdivisions from enacting higher minimum wage
Overtime requirements set by federal law
Strong support for at-will employment doctrine
No additional WARN Act-type requirements beyond federal standards

Publications & Studies

8/5/11

Click here to read the full survey.

Executive Summary


The intersection of traditional...

7/22/08

Every proxy season, companies receive proposals from shareholders representing a variety of demands. In recent years, researchers have documented increased involvement by institutional investors (e.g., public pension funds) in company affairs. When negotiations between companies and such activist shareholders fail, the result is often a shareholder proxy proposal, an action that causes both parties...

7/22/08

Every proxy season, companies receive proposals from shareholders representing a variety of demands. In recent years, researchers have documented increased involvement by institutional investors (e.g., public pension funds) in company affairs. When negotiations between companies and such activist shareholders fail, the result is often a shareholder proxy proposal, an action that causes both parties...