Written by attorneys · grounded in primary & secondary sources — see below
A distinct segment of the economy or industry. Congressional authorization for state restrictions or discriminatory treatment within a particular economic sector permits otherwise impermissible state laws under the Dormant Commerce Clause.
Sources & Authorities
How it applies
Common Examples
6
Banking Sector Authorization
Stella Shapiro's state-chartered bank faced a new state tax that applied only to out-of-state banks operating in the banking sector. Congress had enacted a statute expressly permitting states to impose such taxes on banking activities. The court upheld the tax because the congressional authorization for the banking sector removed any Dormant Commerce Clause obstacle.
Credit Reporting Sector Speech
Skylar Sullivan's construction firm received a false credit report from Dun & Bradstreet that damaged its reputation in the private sector. The report was distributed only to a limited group of subscribers rather than the general public. The court treated the speech as involving matters of purely private concern within the credit reporting sector and applied a lower constitutional threshold for liability.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Restatements
Dictionaries
Dun & Bradstreet, Inc. v. Greenmoss Builders, Inc.472 U.S. 749 (1985)
Public Employment Sector Amendment
Sebastian Santos, a state employee in the public sector, challenged a state constitutional amendment that repealed all protections against sexual-orientation discrimination in government employment. The amendment barred future protections across the entire governmental sector. The court struck down the amendment because it singled out one group for disfavored treatment without a rational basis.
Romer v. Evans517 U.S. 620 (1996)
Trucking Sector Hiring Practices
Sofia Stern's trucking company was sued by the United States for a pattern of refusing to hire minority drivers in the interstate trucking sector. Statistical evidence showed a significant disparity between the company's workforce and the available labor pool in that sector. The court used the disparity to infer discriminatory intent under Title VII.
International Brotherhood of Teamsters v. United States431 U.S. 324, 335 n.15 (1977)
Education Sector Gun Ban
Spencer Silver brought a handgun to a local high school in the education sector. Congress had criminalized possession of firearms in school zones as part of a broader regulatory scheme. The court invalidated the statute because the noneconomic activity lacked a substantial effect on interstate commerce.
United States v. Lopez514 U.S. 549 (1995)
Media Sector Privacy Claim
Stephen Shaw sued a magazine publisher after it dramatized a hostage incident involving his family for a television program in the entertainment sector. The publisher had obtained the story from public court records. The court held that the First Amendment barred the privacy claim because the broadcast involved a matter of public interest.
Times, Inc. v. Hill385 U.S. 374 (1967)
Common questions
Frequently Asked
3
What does sector mean when Congress authorizes state laws affecting a particular economic sector?+
Sector refers to a distinct segment of the economy such as banking. When Congress clearly authorizes state restrictions or discriminatory treatment within that sector, state laws that would otherwise violate the Dormant Commerce Clause are upheld.
Supporting sources
How does the term sector appear in professional responsibility questions about lawyer advertising?+
Sector identifies a targeted industry audience such as the energy sector. Lawyers may direct paid advertising to users with specific job titles in that sector provided the content is truthful and identifies the responsible firm.
Supporting sources
Does sector affect how conflicts rules apply to former government lawyers?+
Sector distinguishes public-sector government service from private practice. Former government lawyers are subject to special screening rules rather than ordinary firmwide imputation when moving to private practice.
Supporting sources
576 U.S. 644 (2015)Legislation and Regulation
…establish families. This development was followed by a quite extensive discussion of the issue in both governmental and private sectors and by a shift in public attitudes toward greater tolerance. As a result, questions about the rights of gays and lesbians soon reached the courts, where the issue could be discussed in the…