The Karnataka government recently introduced a bill mandating substantial reservations for domiciled residents in private-sector jobs, which was swiftly put on hold amid widespread criticism. This blog explores the complex constitutional, legal, and economic ramifications of such domicile-based reservations. By examining judicial precedents and constitutional provisions, the Author highlights the tension between promoting local employment and upholding the principles of meritocracy and laissez-faire that govern private enterprises. Drawing comparisons with similar initiatives in Haryana and Andhra Pradesh, which faced judicial pushback, this analysis underscores the potential risks to Karnataka's economic landscape if the bill were to be implemented. The Author argues that while the intention to support local employment is commendable, it must be balanced with the need to maintain a business-friendly environment and respect for constitutional guarantees of free movement and equality across states.