Constitutional Law · Federalism
Privileges and Immunities: States Can't Punish Outsiders Trying to Earn a Living
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In 30 seconds
A state can't make it much harder for visiting Americans to work or own property there, without a very good reason.
The college version
⚡ 10-Second Rule
A state can't make it much harder for visiting Americans to work or own property there, without a very good reason.
🧒 ELI-10 Scene
Nadia lives in Elm Town but mows lawns in neighboring Oak Town. Oak Town charges its own kids five dollars for a mowing permit — and charges Elm kids two hundred dollars, just to protect Oak kids' lawn business. That is unfair to a neighbor trying to earn a living, and the towns promised to treat each other's people like their own. But the promise has edges. If Oak Town charges Elm kids extra to swim at the town pool for fun, that stands — fun is not a livelihood. If Oak Town's toy company complains, it loses too — the promise protects people, not companies. And Oak Town could still win by proving Elm kids specifically caused a real problem its fee actually fixes.
⚖️ Actual Rule
Article IV, Section 2, Clause 1 — the Comity Clause — provides: "The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several States." It bars state discrimination against out-of-state citizens with respect to fundamental rights and important economic activities: pursuit of a common calling or livelihood (Toomer v. Witsell, 334 U.S. 385 (1948), striking a commercial-fishing license fee one hundred times higher for nonresidents; Supreme Court of New Hampshire v. Piper, 470 U.S. 274 (1985), bar admission), ownership and transfer of property, and access to courts. Recreational pursuits are not protected (Baldwin v. Fish & Game Commission of Montana, 436 U.S. 371 (1978), elk-hunting licenses). Discrimination against nonresidents in a protected activity is invalid unless the state shows (1) a substantial reason for the difference — nonresidents are a peculiar source of the evil the law targets — and (2) the discrimination bears a substantial relationship to that objective, considering less restrictive alternatives (Toomer; United Building & Construction Trades Council v. Camden, 465 U.S. 208 (1984)). Corporations and aliens are not "Citizens" and cannot invoke the Clause. Distinguish the Fourteenth Amendment's Privileges or Immunities Clause: the Slaughter-House Cases, 83 U.S. 36 (1873), confined it to rights of national citizenship, and its main modern use is the right to travel — Saenz v. Roe, 526 U.S. 489 (1999), guarantees new residents treatment equal to long-term residents. Finally, the Comity Clause has no market-participant exception (Camden), so state hiring preferences that escape the Dormant Commerce Clause can still fall here.
ELI-10 translation: a state needs a real, outsider-specific problem before it may treat visiting Americans worse at working, owning, or suing.
🔍 Ask These Questions
- Is a state or city treating out-of-state citizens worse than its own residents? (Is the rule harder on people from other states?)
- Is the challenger a natural person and U.S. citizen — not a corporation or alien? (Only human citizens can use this clause.)
- Does the discrimination burden a fundamental right or livelihood — earning a living, owning property, court access? (Jobs count; elk hunting for fun does not.)
- Is there a substantial reason — are nonresidents a peculiar source of the targeted evil? (The state must prove outsiders actually cause the problem.)
- Does the discrimination substantially relate to that objective, with no less restrictive fix? (The unequal treatment must closely fit the problem, gently as possible.)
- If the clause is unavailable — corporation, recreation — check the Dormant Commerce Clause; if the state is a market participant, this clause still applies. (Different doors for different challengers, and the shopper exception opens only the commerce door.)
⚠️ Bar Trap
Exam language: Examiners scatter three look-alike clauses across the answer choices. The Fourteenth Amendment Privileges or Immunities choice is almost always wrong — Slaughter-House gutted it — unless the facts involve the right to travel or new residents' benefits under Saenz. The second trap: a state defending resident hiring preferences as a "market participant" — that exception belongs to the Dormant Commerce Clause and never defeats an Article IV claim.
ELI-10: Match the door to the person knocking. Human outsiders blocked from working use Article IV; companies use the commerce rule; new residents shorted on benefits use Saenz.
🧪 Question
The state of Cascadia issues commercial crabbing licenses for its coastal waters. Residents pay an annual fee of $75; nonresidents pay $4,000. Legislative findings state the fee differential "preserves crabbing income for Cascadians." There is no evidence that nonresident crabbers harvest differently, damage the fishery more, or impose greater enforcement costs than residents. Ray, a citizen and resident of a neighboring state who has crabbed commercially in Cascadia's waters for a decade, challenges the fee structure.
What is Ray's strongest argument?
(A) The fee violates the Privileges or Immunities Clause of the Fourteenth Amendment because it burdens the rights of national citizenship. (B) The fee violates the Privileges and Immunities Clause of Article IV because it discriminates against nonresidents pursuing a common calling without a substantial reason. (C) The fee violates the Dormant Commerce Clause, and Cascadia's market-participant status is no defense. (D) The fee violates the Equal Protection Clause because nonresidency is a suspect classification triggering strict scrutiny.
Answer: (B). Commercial crabbing is Ray's livelihood — a common calling squarely protected by the Comity Clause — and a fee more than fifty times higher, justified only by reserving income for residents, is naked economic protectionism with no showing that nonresidents are a peculiar source of any evil.
💡 Why the Wrong Answers Are Wrong
- (A) invokes the nearly dormant Fourteenth Amendment clause; nothing here involves rights of national citizenship or a new resident's right to travel.
- (C) misfires doctrinally — licensing private crabbers is regulation, so no market-participant issue even arises, and Article IV is the direct, stronger route for a human worker.
- (D) overstates equal protection; nonresidency is not a suspect class, so the fee would face only rational-basis review there.
- ELI-10: The misconception is grabbing the fanciest-sounding clause. When a real person from another state is blocked from working, Article IV is the door.
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