Gavin Howe
The Fair Labor Standards Act (FLSA) of 1938 established the minimum wage in the United States. The act was signed into law by President Franklin D. Roosevelt and set the minimum hourly wage at 25 cents, with a maximum workweek of 44 hours. The FLSA was a comprehensive federal scheme that provided for minimum wages, overtime pay, record-keeping requirements, and child labor regulations. The act was created to stabilize the post-depression economy, protect workers, and create a minimum standard of living to ensure the health and well-being of employees.
| Characteristics | Values |
|---|---|
| Name of the Act | Fair Labor Standards Act (FLSA) |
| Year | 1938 |
| Date of Signing | 25 June 1938 |
| Signatory | President Franklin D. Roosevelt |
| Minimum Hourly Wage | 25 cents |
| Maximum Workweek | 44 hours |
| Applicability | Industries with one-fifth of the labor force |
| Purpose | To stabilize the post-depression economy, protect workers, and create a minimum standard of living |
| Coverage | Full-time and part-time, public and private sector workers |
| Amendments | Portal-to-Portal Act (1947), Amendments in 1949, 1955, 1961, 1989, 1996, 2007, 2023 |
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What You'll Learn
The Fair Labor Standards Act of 1938
The FLSA's journey to becoming law was not without its challenges. It faced opposition from those who questioned its constitutionality and those who sought to block any attempts at labour reform. However, the Roosevelt administration, in its "New Deal" programme, was committed to improving labour standards and addressing the issues of low wages and unfair working conditions.
The FLSA set a federal minimum wage of 25 cents per hour and a maximum workweek of 44 hours. It applied to industries that represented about one-fifth of the total labour force at the time. The Act also banned oppressive child labour, ensuring that children were protected from prematurely entering the workforce.
The FLSA's impact extended beyond just wages and hours. It provided a right to overtime pay for working more than forty hours a week and established criminal and civil penalties for violations, including the recovery of unpaid minimum wages and other compensation. Additionally, the FLSA only applied to "employees", with independent contractors being excluded from its protections.
Since its enactment, the FLSA has undergone numerous amendments to address exclusions and expand its reach. Despite these changes, wage inequality and exploitative working conditions persist, particularly in certain industries and for marginalised communities. Nonetheless, the FLSA remains a cornerstone of labour law in the United States, continuing to shape the labour landscape over 80 years after its passage.
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Roosevelt-Perkins remedial initiative
The Roosevelt-Perkins remedial initiative, also known as the Public Contracts Act of 1936 or the Walsh-Healey Act, was a significant step towards establishing a minimum wage law in the United States. This initiative, resulting from the collaboration between President Franklin D. Roosevelt and his Secretary of Labor, Frances Perkins, laid the groundwork for ensuring fair wages and improved working conditions for government contractors' employees.
The Public Contracts Act of 1936 had several key provisions. Firstly, it mandated that most government contractors adopt an 8-hour workday and a 40-hour workweek, which was a significant improvement from the long work hours commonly associated with sweatshops and early industrialization. Secondly, the act set specific age requirements for employment, stipulating that only those over 16 years of age if they were boys or 18 years of age if they were girls could be employed under government contracts. This provision addressed the issue of child labor, which was a prevalent concern during that time.
However, the most notable aspect of the Roosevelt-Perkins remedial initiative was its focus on establishing a minimum wage. The act introduced the concept of a "prevailing minimum wage," which was to be determined by the Secretary of Labor. While the specific amount of this minimum wage was not explicitly stated in the act, leaving it to the discretion of the Secretary of Labor, it set a crucial precedent for recognizing the importance of fair wages. This initiative represented a token of good faith by the Federal Government, indicating its commitment to leading the way toward better pay and working conditions for all employees.
The Roosevelt-Perkins remedial initiative was a critical stepping stone in the journey toward a comprehensive minimum wage law in the United States. It paved the way for the Fair Labor Standards Act (FLSA) of 1938, which officially established the first federal minimum wage at 25 cents per hour. The FLSA built upon the foundation laid by the Roosevelt-Perkins remedial initiative, expanding its scope beyond government contractors to a broader range of industries and workers.
The Fair Labor Standards Act of 1938, also known as the "New Deal" policy, was a landmark achievement in the nation's social and economic development. It not only set a minimum wage but also addressed other labor-related issues, including overtime pay for working more than forty hours a week and further restrictions on child labor. This act faced significant opposition and underwent numerous amendments before being signed into law by President Franklin D. Roosevelt, demonstrating the challenging path toward ensuring fair wages and worker protections.
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National Industrial Recovery Act of 1933
The National Industrial Recovery Act (NIRA) was enacted by Congress in June 1933. It was one of the measures by which President Franklin D. Roosevelt sought to assist the nation's economic recovery during the Great Depression. The Act established the National Recovery Administration (NRA), which supervised fair trade codes and guaranteed laborers the right to collective bargaining.
The NIRA is widely considered a policy failure, both in the 1930s and by historians today. Suggested causes include the promotion of economically harmful monopolies, a lack of critical support from the business community, and poor administration. The Act was also a major force behind a significant modification of the law criminalizing making false statements.
The NIRA sanctioned, supported, and in some cases, enforced an alliance of industries. Under the NIRA, companies were required to write industry-wide codes of fair competition that effectively fixed wages and prices, established production quotas, and placed restrictions on the entry of other companies into the alliances. These codes were a form of industry self-regulation and represented an attempt to regulate and plan the entire economy to promote stable growth and prevent another depression.
Employees were given the right to organize unions and could not be forced, as a condition of employment, to join or refrain from joining a labor organization. The NRA was chiefly engaged in drawing up these industrial codes for companies to adopt and was empowered to make voluntary agreements with companies regarding hours of work, rates of pay, and prices to charge for their products.
The NIRA was declared unconstitutional in May 1935, with the Supreme Court invalidating both State and Federal labor laws.
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Public Contracts Act of 1936
The Public Contracts Act of 1936, also known as the Walsh-Healey Act, was enacted by Congress as part of a series of important federal labour laws during the mid-1930s. The Act was based on Executive Order 6246, issued by President Franklin D. Roosevelt in 1933, which required government contractors to comply with codes of fair competition under the National Industrial Recovery Act (NIRA).
The Public Contracts Act of 1936 required vendors supplying goods or services to the US government to treat their employees "fairly and decently". This included paying prevailing minimum wages as determined by the Secretary of Labor, including overtime pay; not employing children or prison inmates; providing safe and sanitary working conditions; and adhering to an 8-hour day and a 40-hour work week. The Act also prohibited the government from dealing with vendors who were not manufacturers or regular dealers of the items supplied.
The Walsh-Healey Public Contracts Act was hailed as a token of good faith by the Federal Government, signalling their intention to lead the way to better pay and working conditions. However, the Act was limited in scope, applying only to government supply contracts, and was weakened by amendments and court interpretations.
While the Public Contracts Act of 1936 did not directly establish a national minimum wage, it set a precedent and paved the way for broader labour legislation, including the Fair Labour Standards Act (FLSA) of 1938, which established a minimum hourly wage of 25 cents and a 44-hour work week.
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Amendments to the FLSA
The Fair Labor Standards Act (FLSA) of 1938 created the minimum wage law. The act was signed by President Franklin D. Roosevelt and set the minimum hourly wage at 25 cents, with a maximum workweek of 44 hours. It also banned oppressive child labour.
Since its inception, the FLSA has been amended multiple times, with added exemptions and expansions. Some of the most notable changes to the FLSA include:
- The Portal-to-Portal Act of 1947, which addressed certain employee activities and clarified what constitutes "hours worked" under the FLSA.
- The Fair Labor Standards Act Amendments of 1949, which updated the landmark Federal Fair Labor Standards Act of 1938. This amendment provided for a 40-hour workweek, outlawed child labour, and increased the minimum wage to 40 cents over a seven-year period.
- The 1963 Equal Pay Act, which addressed equal pay for equal work regardless of gender.
- The 1974 amendment extending the FLSA to domestic service or household employees.
- A series of amendments in the 1970s that applied the FLSA to public sector employees of state and local governments and other public entities.
- The 2000 amendment to exclude stock options and appreciation rights from an employee’s regular rate.
- The Fair Labor Standards Amendments of 1961, which addressed a range of issues, including the minimum wage.
The FLSA has had a significant impact on the workplace, ensuring that employees are entitled to at least a minimum wage for all hours worked and overtime premium pay for hours worked in excess of 40 hours in a workweek. However, there are ongoing discussions and efforts to amend the FLSA further to address changing economic conditions and improve worker protections.
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Frequently asked questions
The Fair Labor Standards Act of 1938 (FLSA) established the minimum wage in the US.
The minimum wage rate was set at 25 cents per hour.
The purpose of the FLSA was to stabilize the post-depression economy, protect workers, and create a minimum standard of living to protect the health and well-being of employees.
