Abstract

State universities have grown to become monumental enterprises generating revenues of more than $124 billion a year in the sale and delivery of education and other services. They compete in a marketplace composed of private secular, nonsecular and for-profit higher education institutions. In addition, state universities in their own right engage in a number of traditionally for-profit "business" enterprises competing with the private sector. However, as the enterprise aspect of state universities grows; so too does the impact of a unique competitive advantage enjoyed solely by state universities--that is, the ability of state universities to immune themselves from lawsuit in federal court under the guise of "sovereign immunity" for disputes arising under federal employment laws. Indeed, as a consequence of recent Supreme Court rulings, state agencies, including universities, are the only entities in the United States that are effectively exempt from the enforcement of federal employment laws in federal or state courts. This article reviews the condition of the "two faces" of the state university regarding federal employment law and the apparent new barriers to federal court access of employees to judicial review of employment disputes.