Fair Labor Standards Act of 1938

Fair Labor Standards Act of 1938 is a foundational piece of New Deal legislation that established critical federal labor standards in the United States. Enacted during the presidency of Franklin D. Roosevelt, it aimed to eliminate labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers. The law's core mandates created a federal floor for wages, hours, and child labor, profoundly reshaping the American workplace.

Background and legislative history

The push for federal labor standards gained urgency during the Great Depression, as widespread unemployment and exploitative working conditions prompted calls for reform. Earlier New Deal efforts, like the National Industrial Recovery Act and its National Recovery Administration, had attempted to set industry codes but were invalidated by the Supreme Court of the United States in Schechter Poultry Corp. v. United States. Following his landslide victory in the 1936 United States presidential election, Roosevelt directed Secretary of Labor Frances Perkins, the first woman to hold a Cabinet position, to draft legislation. The bill faced fierce opposition from business groups and conservative Democrats, particularly from the South, leading to significant compromises in its scope. After a protracted legislative battle, it was passed by the 75th United States Congress and signed into law on June 25, 1938.

Major provisions

The act established several landmark requirements for covered employees. It created a federal minimum wage, initially set at 25 cents per hour, to be raised in subsequent steps. It mandated payment of overtime at a rate of one and one-half times the regular rate for hours worked beyond 40 in a workweek. The law also placed strict limitations on child labor, prohibiting the employment of minors in oppressive labor and setting age limits for certain types of work. Importantly, the act asserted federal authority under the Commerce Clause of the United States Constitution, applying to workers engaged in interstate commerce or in the production of goods for interstate commerce.

Impact and effects

The act immediately raised wages and reduced work hours for millions of Americans, setting a national baseline that reduced competition based on substandard labor conditions. It effectively abolished oppressive child labor in interstate industries, redirecting youth toward education. The law also had significant effects on the American South, where low-wage industries were prevalent, and helped to reduce wage disparities based on geography. By establishing the Wage and Hour Division within the United States Department of Labor, it created a permanent federal enforcement mechanism. Economists have debated its long-term effects on employment, but it is widely credited with helping to create the modern expectation of a standardized workweek and a living wage.

Amendments and subsequent legislation

The FLSA has been amended numerous times to expand its coverage and increase its standards. Key amendments include the Fair Labor Standards Amendments of 1949, which increased the minimum wage, and the Fair Labor Standards Amendments of 1966, which extended coverage to additional sectors like schools, hospitals, and nursing homes. The Equal Pay Act of 1963, signed by President John F. Kennedy, amended the FLSA to prohibit wage discrimination based on sex. The Fair Labor Standards Amendments of 1974 further extended coverage to most federal, state, and local government employees. Later increases to the federal minimum wage, such as those under President George W. Bush, have also been enacted as amendments to this foundational law.

Legal challenges and court rulings

The constitutionality of the FLSA was swiftly challenged and upheld by the Supreme Court in the 1941 case United States v. Darby Lumber Co., which unanimously affirmed Congress's power under the Commerce Clause to regulate labor conditions. This decision explicitly overruled the earlier precedent of Hammer v. Dagenhart. Subsequent major rulings have interpreted the act's provisions, such as A.H. Phillips, Inc. v. Walling, which affirmed broad coverage. More recent cases, like Christensen v. Harris County and Encino Motorcars, LLC v. Navarro, have dealt with issues of compensatory time and exemptions for certain employees. These rulings continue to shape the application and enforcement of the law's complex requirements.

Category:1938 in American law Category:United States federal labor legislation Category:New Deal