When I said the “state” I meant it as literally the state as in one of the 50....not the federal entity....
I wouldn't want Austin deciding whether I was "fair" to my employees, either.
Whether I compensated them properly (minimum wage, overtime, etc.), didn't expose them to unsafe working conditions fine -- the state can regulate those things.
But whether I was "fair"? No, they shouldn't be allowed to regulate that. If the boss wants to hire his nephew, that's HIS business.