Contemporary Business and Online Commerce Law 7th Edition by Henry R Cheeseman

Exercise 5

Privileges and Immunities Clause During a period of a booming economy in Alaska, many residents of other states moved there in search of work. Construction work on the Trans-Alaska Pipeline was a major source of employment. The Alaska legislature enacted an act called the Local Hire Statute. This act required employers to hire Alaska residents in preference to nonresidents. Is this statute constitutional? Hicklin v. Orbeck, Commissioner of the Department of Labor of Alaska, 437 U.S. 518, 98 S.Ct. 2482, 57 L.Ed.2d 397, Web 1978 U.S. Lexis 36 (Supreme Court of the United States)

Step 1 of 3

Facts of the Case

• Due to economic growth, many people moved to Alaska for work.

• Trans-Alaska pipeline was the major source of construction work for people.

• To reduce unemployment in the state, legislature formed a statute “The Alaska Hire”.

• It mandates qualified Alaska residents to be hired over non-residents in gas and other gas related companies within this area.

Plaintiffs sued the Commissioner of Labor in the state court stating that mandated preference as unconstitutional.