The History of the Fair Labor Standards Act
Abstract
After the great depression, unions were legalized in order to be the voice for the workers for whom they represented to their employers. Once this legalization became evident through federal statute, set the stage for what was to become the Fair Labor Standards Act. Having just survived a depression, the United States was hoping to avoid any future economic downturns, the government would accomplish this with paying higher wages that the employer could afford and employees could provide for their families.
The History of the Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) is administered by the United States Department of Labor Wage and Hour Division. The Act regulates child labor, wages, and hours, it also requires employers to keep proper records and which to maintain (Bennett Alexander, 2004). The Act, now law requires employers to pay employees at the lower end of the pay scale, a certain amount which maintains a minimum standard of living and out of poverty (Bennett Alexander, 2004). That is the law and theory, in actuality the law has caused poverty in certain areas of the employment theatre, keeping those who are at the low end of the pay scale; below the reach of higher paying jobs.
The FLSA began on a Saturday, June 25, 1938, President Franklin D. Roosevelt signed 121 bills, one of them being the landmark law in the Nation's social and economic development the Fair Labor Standards Act of 1938 ( Grossman, 1978). This law did not come easy, wage-hour and child-labor laws had made their way to the U.S. Supreme Court in 1918 in Hammer v. Dagenhart in which the Court by one vote held unconstitutional a Federal child-labor law. Similarly in Adkins v. Children's Hospital in 1923, the Court voided the District of Columbia law that set minimum wages for women, during the 1930's the Court's action on other social legislation was even more devastating (Grossman, 1978). Then came the New Deal Promise in 1933, President Roosevelt's idea of suspending antitrust laws so that industries could enforce fair-traded codes resulting in less competition and higher wages; It was known as the National Industrial Recovery Act (NRA) ( Grossman, 1978). The President set out "to raise wages, create employment, and thus restore business," the Nation's employers signed more than 2.
Even the president said, "Something has to be done about the elimination of child labor and long hours and starvation wages" (Roosevelt). People worked to their breaking points and then still not being able to provide for their families. People were paid “starvation wages”, which are wages that are not high enough to pay for necessities (“Merriam-Webster”). Hoovervilles, otherwise known as hobo-camps or squatter-camps, began to arise (“Hoovervilles”). Obviously, extreme poverty and famine were a huge problem. The government got involved. FDR stated, "Do not let any calamity-howling executive with an income of $1,000 a day, ...tell you...that a wage of $11 a week is going to have a disastrous effect on all American industry" (Roosevelt). As a result, the Fair Labor Standards Act went into effect. Moreover, the Fair Labor Standards Act established minimum wage to prevent starvation wages, record keeping to avoid long hours, and regulations on child labor to prevent the labor abuse of children (“Fair Labor Standards Act (FLSA) of 1938”). It also put standards on how much employers had to provide. For example, things such as vacation, sick days, or raises are not required underneath the Fair Labor Standards Act (“Fair Labor Standards Act (FLSA) of 1938”). Through placing regulations on labor practices, the Fair Labor Standards Act helped people begin to have rights in their jobs, therefore making work be little
"I pledge you, I pledge myself, to a new deal for the American people," said Franklin Roosevelt. With that he was elected President in November 1932, to the first of four terms. By March there were 13,000,000 unemployed, and almost every bank was closed. In his first "hundred days," he proposed, and Congress enacted, a sweeping program to bring recovery to business and agriculture, relief to the unemployed and to those in danger of losing farms and homes, and reform, especially through the establishment of the Tennessee Valley Authority.
U.S. Department of Labor-General Information on the Fair Labor Standards Act (FLSA). United States Department of Labor. Web. 9 May 2014.
They concentrated on higher wages, shorter hours, and personal issues of workers. The American Federation of Labor’s main weapon was walkouts and boycotts to get industries to succeed to better conditions and higher wages. By the early 1900’s, its membership was up to ½ million workers. Through the years since The Great Depression, labor unions were responsible for several benefits for employees. Workers have safer conditions, higher paying jobs to choose from, and better benefits negotiated for them by their collective bargaining unit.
Unlike any president before him, President Roosevelt faced the Great Depression and created the New Deal to try and ensure the economic and political wealth of the United States. In 1935, the federal government guaranteed unions the right to organize and bargain collectively, and the Fair Labor Standards Act of 1938 established minimum wage and maximum outs. Beginning in 1933, the government also helped rural and agricultural American with development programs and assume responsibility for the economy of the United States. Essentially, the New Deal sought to ensure that the benefits of American capitalism were spread equally amongst the many diverse peoples of the United States. Even though Roosevelt's New Deal failed to cure completely the economy of the Great Depression, his governmental policies during it established a new norm for succeeding governments to
President Franklin D. Roosevelt enacted the FLSA on June 25, 1938. It was signed in as a federal labor law to provide criteria for governing general labor practices such as overtime, minimum wages, child labor protections and equal pay. The Fair Labor Standards Act is a long and extensive document in and of itself. It defines many exceptions and exemptions. For purposes of this paper the portion of the FLSA that will be concentrated on is the difference between exempt and non-exempt employees.
Throughout the history of the United States of America the continuation of misfortunes for the workforce has aggravated people to their apex, eventually leading to the development of labor unions.
In the 1930s, the economy was in turmoil due to the stock market crash in 1929. The United States unemployment rate was at its high of twenty-five percent between 1932 and 1933. It was very hard for Pete to find a job.1 More than ten million citizens were out of work. In verse after verse, ”Talking Union” described how to start a union: pass out leaflets, call meetings, resist the attempts of the boss to derail those efforts, for “he’s a bastard-unfair-slave driver-Bet he beats his own wife.”2 March of 1933, Franklin D. Roosevelt took power and he pledged to save the economy from danger using a plan called the New Deal. The New Deal was a plan to boost the economy back up to its normal state. He pledged to use federal power to ensure a more equitable distribution of income and promised “bold experimentation” in pursuit of what he called a “New Deal” for Americans.3 Roosevelt later stated, “when Americans suffered, h...
Beginning in the late 1700’s and growing rapidly even today, labor unions form the backbone for the American workforce and continue to fight for the common interests of workers around the country. As we look at the history of these unions, we see powerful individuals such as Terrence Powderly, Samuel Gompers, and Eugene Debs rise up as leaders in a newfound movement that protected the rights of the common worker and ensured better wages, more reasonable hours, and safer working conditions for those people (History). The rise of these labor unions also warranted new legislation that would protect against child labor in factories and give health benefits to workers who were either retired or injured, but everyone was not on board with the idea of foundations working to protect the interests of the common worker. Conflict with their industries lead to many strikes across the country in the coal, steel, and railroad industries, and several of these would ultimately end up leading to bloodshed. However, the existence of labor unions in the United States and their influence on their respective industries still resonates today, and many of our modern ideals that we have today carry over from what these labor unions fought for during through the Industrial Revolution.
A common trend was always that wages were not keeping up with the cost of living. Many could not make ends meet and were struggling to simply survive. They started to question the effectiveness of the National Recovery Administration (N.R.A.). It was unfair to them that businesses were still making enormous profits while its employees were forced into poverty. Pushing for a unionization was disowned by factories where they threatened to close their doors if a worker’s union formed. Some thought businesses were crooked and angled themselves to take advantage of the economy to increase their
The Fair Labor Standards Act (FLSA) was originally enacted in 1938. The law is enforced by the Wage and Hour Division of the U.S. Department of Labor, and includes 5 major provisions that protect employees. (TEXT) The five provisions include: coverage, minimum wage, overtime pay, youth employment, and record keeping. Coverage refers to the types of workers whom are protected by the FLSA. The FLSA also handles compensation issues like minimum wage, commissions, bonuses, expenses like room and board and other various deductions. To ensure that employees receive adequate compensation for working additional hours the FLSA has developed rules governing overtime pay. The Act also created and implemented rules governing youth
The Fair Labor Standards Act The Fair Labor Standards Act (FLSA) was passed by Congress on June 25th, 1938. The main objective of the act was to eliminate “labor conditions detrimental to the maintenance of the minimum standards of living necessary for health, efficiency and well-being of workers,”[1] who engaged directly or indirectly in interstate commerce, including those involved in production of goods bound for such commerce. A major provision of the act established a maximum work week and minimum wage. Initially, the minimum wage was $0.25 per hour, along with a maximum workweek of 44 hours for the first year, 42 for the second year and 40 thereafter. Minimum wages of $0.25 per hour were established for the first year, $0.30 for the second year, and $0.40 over a period of the next six years.
Throughout American history, labor unions have served to facilitate mediation between workers and employers. Workers seek to negotiate with employers for more control over their labor and its fruits. “A labor union can best be defined as an organization that exists for the purpose of representing its members to their employers regarding wages and terms and conditions of employment” (Hunter). Labor unions’ principal objectives are to increase wages, shorten work days, achieve greater benefits, and improve working conditions. Despite these goals, the early years of union formation were characterized by difficulties (Hunter).
The (FLSA) was created in 1938 when Theodore Roosevelt decided to sign the bill which banned oppressive child labor and set the minimum wage standard to twenty-five cents an hour. The bill also increased the maximum workweek to 44 hours. Industrial and Labor Relations Review. With Mr. Roosevelt signing the act, American society changed for the better. Youth were no longer employed at the early ages.
Franklin Delano Roosevelt defeated Herbert Hoover in a landslide in the 1932 election and began to work on his “New Deal”. In the New Deal four key regulatory bodies were established: The National Labor Relations Board, Civil Aeronautics Authority, Federal Communications Commission, and the Securities and Exchange Commission.