State Law vs. Federal Law

One reason the law is so confusing for people is that no matter where you are in the United States, there are multiple legal systems in effect. A second reason is that laws can change dramatically just from crossing a state line. To understand how American law works, it’s important to understand the difference between state and federal law and how they interact.

Quick Guide: What is the difference between state and federal law? | What happens if state and federal laws conflict? | State courts vs. federal courts

What is the difference between state and federal law?

When the United States was founded, the original 13 states already existed for years. They each had their own laws as former British colonies. But, for them all to work together as a single country, there needed to be a way to pass laws that would apply everywhere. The basic difference between state and federal law is that federal law applies everywhere in the United States. State law applies only in one state. A second difference is that some areas of law, like family law or corporate law, are typically left to the states. Other topics, like patents, are addressed solely by the federal government.

Who makes federal laws?

Federal laws are written by either the House of Representatives or the Senate. These two organizations together are known as the United States Congress. For a proposed law to be passed, a majority of both the House and the Senate must agree. Usually, the President of the United States must also agree. However, if two-thirds of the Senate and House vote to approve a law, they can pass it without the President’s approval.

In some areas of the law, Congress has delegated its law-making authority to an agency. For example, Congress passed the Federal Food, Drug, and Cosmetic Act in 1938. This law gives the Food and Drug Administration (FDA) the power to create rules about food and drug safety.

Who makes state laws?

Every state has its own constitution. The constitution of each state sets out the rules for how laws are created in that state. Each state has a legislature, like Congress, that writes laws. The governor of each state, like the President, can veto laws. States also create agencies that regulate specific areas of the law.

State laws also differ from one another due to state judicial decisions. This process of legal development through court decisions is known as common law.

Federal law examples

Federal law is exclusive in some areas of the law, like patent law. States cannot create laws to offer patents. Most areas of the law are controlled by a hybrid of federal and state laws.

Often, federal law sets a minimum standard that states can expand on. Two examples are health care and employment law. HIPAA is a federal law that protects the privacy of healthcare patients. Some states offer even greater protection, however, so HIPAA does not take precedence over more robust state laws. The federal government also protects against employment discrimination based on certain personal characteristics, like race or sex. Many states expand this protection to include health status or political affiliation. In this case, federal law serves as a minimum standard that applies throughout the country.

State law examples

Some areas where states traditionally have more control include family law, business and corporate law, and real estate law.

What happens if state laws and federal laws conflict?

The U.S. Constitution states that when federal and state laws conflict, federal law “preempts” or overrules state law. This is called the supremacy clause. However, the federal government does not enforce this clause with every contradictory state law.

Examples

- Marijuana legalization – Marijuana legalization is a prime example of the federal government allowing states to keep contradictory laws. While marijuana is now legal in many states, it is still illegal under federal law. This means it is still illegal everywhere in the country. If the federal government chose to enforce its law, it could force the marijuana industry to shut down. Technically, state laws that only establish regulations for marijuana use do not conflict with federal laws. Growing and selling marijuana is illegal, though, so anyone who grows or sells marijuana remains at risk.

- Immigration – Immigration is a clear-cut example of an area where federal law preempts state laws. In 1941, Pennsylvania passed a law that required non-U.S. citizens to pay a fee and register with the state. The law was overturned based on the principle of preemption. The Supreme Court held this law stood in the way of the federal government exercising control over immigration.

State Courts vs. Federal Courts

A major decision for anyone considering a lawsuit is whether to file in federal or state courts. Defendants sometimes have the option to influence which court a case is heard in, as well. Federal courts are limited on which cases they can hear, so a majority of cases are heard in state courts. There are roughly 300,000 civil cases filed in federal courts each year. A comparable number of civil cases are filed in each of the 50 states systems. In California alone, there are more than double this amount filed each year.

Which system is better for plaintiffs? Defendants?

Many lawyers believe state courts are better for plaintiffs. Some studies suggest that this is true. Plaintiffs win about a third of cases filed in federal court. In state courts, plaintiffs win just under half.