The Labor Standards Act Of 1938

As the United States endured the hardships of the Great Depression, the struggles of the working class grew and employers were able to take advantage of desperate workers by overloading hours and shrinking wages. In 1938, President Franklin Roosevelt, in his New Deal legislation, saw the opportunity to attend to the issues concerning workers involved in interstate commerce. The Fair Labor Standards Act was passed, and the President described it in the following way “Except for the Social Security Act, it (the FLSA) is the most far-reaching, far-sighted program for the benefit of workers ever adopted here or in any other country.” (Nordlund). The FLSA, as it is known, set a maximum number of

For centuries, there has been a common relationship between employers and employees. Over the course of that time, the workplace and the jobs within it have evolved as new jobs were created, ways to execute tasks became more advanced and laws were enacted to put into place fair employment for those in the workforce. In 1938, congress would pass and President Roosevelt would sign the Wages and Hours Bill, more commonly known as the Fair Labor Standards Act of 1938 (FLSA). This federal statute introduced a 44 hour, seven day work week, established the national minimum wage, guaranteed overtime pay in specific types of jobs at a rate of “time and a half”, and it defines oppressive child labor, which prohibits most employment of minors. The FLSA applies to those employees engaged in interstate commerce or in the production of goods for commerce, unless the employer can claim an exemption from coverage.

One of the most talked about subjects in the U.S economy is the topic of minimum wage. With president Obama’s increase in the minimum wage to 10.10$ per hour people, both economists and politicians alike, have been debating whether raising the bar is a smart idea. At a time when the country the country’s inflation continues to rise at a steady pace and Americans are constantly working to feed their families, some economists know that a raise in the minimum wage would help elevate some of the difficulty. The last time the federal minimum wage was raised was in July of 2009, where rose from 6.55$ to 7.25$. However, there are plenty of reasons as to why the wage should be raised. Some may not think it, but raising the

Although America is known as the richest country in the world, 43 million of its citizens are in poverty. Unfortunately, some of them work full time, yet are still in poverty due to the low minimum wage (“Should We Raise”). In 1928, the first federal minimum wage of 25 cents per hour was set by President Franklin D. Roosevelt to prevent workers from being underpaid. Since 2009, the federal minimum wage has been $7.25 (Smith). The age old debate of whether or not to raise it is still going on in the US. The federal minimum wage should be increased to keep up with inflation, help support the poor, and stimulate the economy.

The controversy over what to establish as the official minimum wage in the United States has been debated and argued over for many years. Due to inflation, the gradual increase of pricings due to a saturation of printed currency, the minimum wage for workers has to be increased in order to compensate for the ever-fluctuating value of the U.S. Dollar. Many today are rising to the conclusion that a minimum wage of fifteen dollars an hour is necessary. This motion is designed to keep those who have minimum wage income out of poverty and to increase the amount of money in the consumer’s pocket overall. However, this particular increase in minimum wage will lead to the inevitable downfall of the United States’ economy and be a catastrophe for the working class.

On Saturday, June 25, 1938, President Franklin D. Roosevelt signed 121 bills. Among these bills was a landmark law in the United States’ social and economic development—Fair Labor Standards Act of 1938 (FLSA) or otherwise known as the Wages and Hours Bill. This new law created a maximum forty-four hour workweek, guaranteed “time-and-a-half” for overtime hours in certain jobs, banned oppressive child labor, and established the nation’s first minimum wage. By definition, a minimum wage is the lowest wage permitted by law or by a special agreement (such as one with a labor union). Throughout the years, the minimum wage has been a central debate topic for the socioeconomic world and now in 2014, the debate has broken through the surface once

Presently, the citizens of the United States of America are involved in an impassioned debate over the federal minimum wage. As of October 5, 2016, the federal minimum wage is set at seven dollars and twenty-five cents an hour. There are numerous amounts of stakeholders when it comes to minimum wage. The three stakeholders mentioned in this essay will be Companies, Employees, and the Economy. In addition to the stakeholders, this essay will also dig into the history of the United States Federal Minimum Wage and see how it has progressed over the years and if it kept up with inflation over the years. With this information, society will see what an increase to the federal minimum wage will have on the United States economy and labor force.

Taking a closer look at the Fair Labor Standards Act of 1938, American workers were struggling to find jobs following World War 1 due to the number of immigrants. Yet, still today, American workers are struggling to find high paying jobs which are still partly due to the number of immigrants and refugees coming into this country daily. Relatively speaking, the minimum hourly wage over the past 70 years has not increased greatly, MacLury (1998) in 1938 it was of .25 cents and upon reaching the latest of 7.25 dollars in 2009. Over the years, lawmakers continue to change the verbiage of the FLSA, with former President Obama, Lee (2015) mad a challenge to congress, which is to live on 15,000 dollars a year. Additionally, in order

Before discussing the potential implications of raising the federal minimum wage, it is important to understand why such action is necessary. By historical standards, the current federal minimum wage of $7.25 is fairly low (Weissmann 1). Adjusted for inflation, the minimum wage today is over three dollars less than when its real value peaked in 1968 (ibid). Although many state and local governments have passed laws setting the minimum wage above that of the federal level, the majority of states have not, despite rising levels of GDP, productivity and cost of living. Since 1968, the average American, at all levels of income and in almost all occupations, has worked 163 more hours per year, the equivalent of a month (Schor 26). Additionally, worker productivity has doubled since that time, as indicated by Real GDP per hour worked in the United States (“Real GDP”). So although the average worker is twice as productive now as he was in 1968, his real wage earned is

Minimum wage affects many people and by understanding its evolvement throughout the years we can better understand how our government can better provide for those working minimum wage jobs today. Inequality is an inevitable factor in a capitalist market, people need proper incentives to work hard and be productive, and the incentive of more money or more opportunity is the driving force of capitalism and even the American dream. However there are several current complications that even those who are actively employed are living under the poverty line, like stated previously minimum wage from when it was first implemented raised along with inflation but then began to lose momentum in the 1970s and since then it began to stagnate and then drop along with increased inflation; if minimum wage were to be raise to $10.10 to become congruent with inflation it would bring 4 million people above the poverty line. Congress instituted the minimum wage in 1938 as part of the Fair Labor Standards Act (FLSA). The first minimum wage stood at 25 cents an hour. The last minimum wage increase occurred in 2007, when Congress raised the rate in steps from $5.15 an hour that year to $7.25 an hour in July 2009. The District of Columbia and 19 states have also established local minimum wages higher than the federal rate. The highest state minimum wage in the country occurs in Washington State at $9.32 an hour, however

U.S. Democratic Presidential candidate Bernie Sanders has said, “It is a national disgrace that millions of full-time workers are living in poverty and millions more are forced to work two or three jobs just to pay their bills” (Wolf 1). Sanders has said this frequently and is referring to the drastic amount of Americans who are currently struggling, despite already having a job. The issue of whether or not to raise the minimum wage in America has been a widely discussed topic for years. Minimum wage refers to the smallest amount of money a worker can legally be paid in the U.S. It was first signed into law in 1938 by President Franklin Roosevelt in order to keep workers out of poverty and as it stands, the current federal minimum wage in

Almost 3.3 out of 76 million workers in the US receive minimum wage (Source: BLS reports). Activists for raising the minimum wage claim that the federal minimum wage of $7.25 is the reason they are living in poverty, and that the wage must be raised for a better standard of living. Many people who take on minimum wage jobs are young and work in companies that don’t carry much prestige; however, they still take pride in their work and demand higher pay (BLS reports). On the other side of the issue, there are claims that raising the minimum wage will actually have more drawbacks than benefits such as hurting the economy (Opposing Viewpoints). The

According to dol.gov, The Fair Labor Standards Act of 1938, passed by President Roosevelt, placed restraints on how many hours an individual can work per week, child labor, and overtime. To be considered full-time, a person must work 40 hours per week. If an individual works any less, they are considered part-time. The law also introduced minimum wage, a flat line rate that all employees must get paid. Currently in the United States, minimum wage is set at $7.25. Each state can have the option to pass a law to increase it. For instance, the state of New York passed a law that will increase minimum wage in the state to $15. As if this moment, Florida’s minimum wage is $8.05. With all of the

President Franklin D. Roosevelt signed 121 bills on Saturday, June 25, 1938 to avoid pocket vetoes 9 days after Congress adjournment. A landmark law in the nation’s social and economic development was among those 121 bills. This bill was titled Fair Labor Standards Act of 1938. The minimum hourly wage was set at $0.25, and the maximum work week at 44 hours. President Roosevelt also warned the day before the signing to not let any executives with a $1000.00 a day income cry catastrophe; that an $11.00 a week wage will have a disastrous effect on the American industry (1938). Oddly, a well-known news commentator made almost the exact response forty years later as President Roosevelt. That same emotion can be felt today when it comes

The following employment classifications are used throughout this Handbook for purposes of salary administration and eligibility for various employee benefits. Exempt Employee-An employee who is exempt from the overtime provisions of the Fair Labor Standards Act of 1939, as amended. Non-Exempt Employee-An employee whose work is subject to the overtime provisions of the Fair Labor Standards Act of 1939, as amended. Temporary Employee-An employee who is hired either on a full-time or part-time basis to work for a definite, specified period of time. Contractor- An individual who performs services for another person or entity under a contract between them.