The Fair Labor Standards Act: Who Did It Cover?

The Fair Labor Standards Act of 1938 established a minimum wage for workers in the United States. The Act was signed into law by President Franklin D. Roosevelt and applied to employees engaged in interstate commerce or the production of goods for interstate commerce. It also prohibited oppressive child labour and set a maximum workweek of 44 hours. The Act was a major shift in labour policy, giving the federal government the power to regulate wages and working conditions. The minimum wage set by the Act was 25 cents per hour, though it originally called for 40 cents.

Interstate commerce employees

The Fair Labor Standards Act (FLSA) of 1938 was a landmark law in the United States' social and economic development. It applied to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce. This included workers in industries such as manufacturing, mining, and transportation, as well as those in service industries like restaurants and laundries.

The Act set a minimum hourly wage of 25 cents and a maximum workweek of 44 hours for these employees. It also banned oppressive child labor, protecting children under 16 from working in manufacturing or mining or during school hours, and ensuring that children under 18 could not perform certain dangerous jobs.

The FLSA was designed to create a minimum standard of living for employees, protecting their health, efficiency, and general well-being. It aimed to stabilise the post-depression economy and aid the lowest-paid workers, who lacked sufficient bargaining power to secure a minimum subsistence wage.

To be subject to the FLSA, companies must gross at least $500,000 in annual sales and engage in interstate commerce. The Act also provided exemptions for certain employees, such as executives, administrators, professionals, and outside salespersons, who were believed to have a higher level of bargaining power.

The FLSA has been amended multiple times since its inception, with the latest proposed changes in 2023 suggesting an increase in the federal minimum wage to $17 per hour.

Employees in the production of goods for commerce

The Fair Labor Standards Act of 1938 (FLSA) was enacted by the 75th United States Congress and signed into law by President Franklin D. Roosevelt. The Act created the right to a minimum wage and "time-and-a-half" overtime pay for people working over 40 hours a week. It also prohibited oppressive child labour.

The Act applied to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer could claim an exemption from coverage. This included employees in the production of goods for commerce, who were subject to the Fair Labor Standards Act's protections if no other exemption applied.

The Act's protections applied to employees of an enterprise with at least $500,000 of business or gross sales in a year. However, several exemptions existed that relieved employers from meeting the statutory minimum wage, overtime, and record-keeping requirements. These exemptions included the white-collar" exemptions for professional, administrative, and executive employees, as well as exemptions for jobs such as movie theater workers.

The Fair Labor Standards Act did not apply to independent contractors or volunteers, as they were not considered "employees" under the Act. Employers could not simply exempt workers from the Act by classifying them as independent contractors or volunteers. Courts determined the "economic reality" of the relationship between the employer and worker to decide if the worker was an independent contractor.

Child labour laws

The Fair Labor Standards Act of 1938 was a landmark law in the United States' social and economic development. The Act banned oppressive child labour and set the minimum hourly wage at 25 cents, with a maximum workweek of 44 hours. The law applied to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer could claim an exemption from coverage.

The Act was a significant step forward in protecting children from exploitative labour practices and ensuring they received a fair wage for their work. It also set a precedent for future legislation aimed at improving labour standards and protecting the rights of workers, including children.

The Act's passage was not without its challenges, as it faced opposition from some Southern congressmen who argued that it would harm Southern industry. However, the Act ultimately passed with strong support from President Franklin D. Roosevelt, who called it the most important piece of New Deal legislation since the Social Security Act of 1935.

Since its enactment, the Fair Labor Standards Act has been amended multiple times to expand its coverage and increase the minimum wage. These amendments have helped to ensure that the Act remains relevant and effective in protecting the rights and well-being of workers, including children, across the United States.

Exemptions for specific worker categories

The Fair Labor Standards Act (FLSA) of 1938 provided several exemptions for specific worker categories. These included:

• Executives
• Administrators
• Professionals
• Outside sales employees
• Agricultural workers
• Domestic workers
• Other service-sector employees

The largest exceptions applied to the so-called "white-collar" exemptions, which were applicable to professional, administrative, and executive employees. Exemptions also existed for jobs such as movie theater workers.

The FLSA also did not cover executives, seasonal employees, and some other groups.

The exemptions for agricultural, domestic, and service-sector employees had significant implications for workers earning low wages, particularly those in marginalized communities. Excluded workers were left vulnerable to exploitation and unable to access basic labor rights under the law, such as a fair minimum wage and overtime pay. The exemptions deepened economic disparities and perpetuated a two-tiered system where some workers were entitled to protections and benefits, while others were left unprotected, exacerbating a cycle of poverty and wage inequality.

Minimum wage and overtime pay

The Fair Labor Standards Act of 1938 (FLSA) established the right to a minimum wage and "time-and-a-half" overtime pay for people working over 40 hours a week. It also banned oppressive child labour. The act applied to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer could claim an exemption.

The FLSA was signed into law by President Franklin D. Roosevelt on June 25, 1938, and became effective on October 24, 1938. It was the culmination of years of legislative efforts to protect workers' rights, which had been hampered by opposition from the Supreme Court.

The minimum wage was set at 25 cents an hour, with a maximum workweek of 44 hours. The act also allowed workers to earn wages for an extra four hours of overtime. The legislation gave raises to 700,000 workers, and Roosevelt considered it the most important piece of New Deal legislation since the Social Security Act of 1935.

Since its inception, the FLSA has been amended multiple times, with added exemptions and expansions specifying which groups of workers are covered under different aspects of the law. The latest significant change to the minimum wage was in July 2009, when it was raised to $7.25 an hour.

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