State universities have grown to become monumental enterprises generating r
evenues of more than $124 billion a year in the sale and delivery of educat
ion and other services. They compete in a marketplace composed of private s
ecular, nonsecular and for-profit higher education institutions. In additio
n, state universities in their own right engage in a number of traditionall
y for-profit "business" enterprises competing with the private sector. Howe
ver, as the enterprise aspect of state universities grows; so tao does the
impact of a unique competitive advantage enjoyed solely by state universiti
es-that is, the ability of state universities to immune themselves from law
suit in federal court under the guise of "sovereign immunity" for disputes
arising under federal employment laws. Indeed, as a consequence of recent S
upreme Court rulings, state agencies, including universities, are the only
entities in the United States that are effectively exempt from the enforcem
ent of federal employment laws in federal or state courts. This article rev
iews the condition of the "two faces" of the state university regarding fed
eral employment law and the apparent new barriers to federal court access o
f employees to judicial review of employment disputes.