The Fair Labor Standards Act of 1938 was the first major piece of US legislation to establish standards for minimum wage, overtime pay, recordkeeping, and child labor. It aimed to protect workers from harsh working conditions during economic hardship. The act has been amended and broadened over time to provide additional rights based on race, gender and age. It has played a pivotal role in improving labor conditions and remains an important champion of worker rights.

1. The Fa ir La bo r Sta nda rds Ac t o f 1 9 3 8
In a historical moment of economic hardship, the Fair Labor Standards Act of 1938 (FLSA) was
the first major piece of legislation that protected workers against harsh work environments and
established standards against child labor. Over the years, it has broadened in scope to provide
additional rights for workers based on race, gender and age. This act, born from a fire of
legislative and court battles, has become one of the champions of the working person.
His torica l B ackground
At the outset of the industrial revolution, companies knew that it was necessary to have sufficient
workers to help keep up with the skyrocketing demand for factory products. In order to meet
these demands, unskilled and child laborers were often hired in order to keep production costs
low. In addition, many of these workers were employed 12 to 14 hours a day, 7 days a week.
Factory conditions were harsh, and many didn’t have access to standard break times, bathroom
facilities or time off.
In the United States, these conditions were further exacerbated by the stock market crash of
1929. Company’s that were allowing time off or sufficient pay suddenly felt as though they
could not compete unless they were overworking and underpaying their employees. This resulted
in a significant increase in injury, especially among child workers, many of which were working
well over 100 hours per week.
The resulting outrage became a din of confusion for workers, employers and legislative bodies.
Under the National Industrial Recovery Act of 1933(NRA), one of the New Deal bills passed in
the first 100 days of Franklin D. Roosevelt’s presidency, workers were finally given the right to
form unions. Many encouraged strikes and sit-ins as methods for getting companies to change
their unreasonable demands. The Congress of Industrial Organizations was one of these unions,
championed by John L. Lewis. In his desire to raise the standard of working conditions, he
supported a number of factory workers’ demonstrations that ended in violence and death.
Although he led workers somewhat peacefully against companies like United States Steel and
General Motors, 10 people were killed as police defended property for Goodyear Tire.
Major factories and industries retaliated through legal action, and the Supreme Court upheld
many cases in favor of the industrial complex. Time after time, the court upheld decisions that
invalidated standard minimum wages, eliminated caps on working hours and supported child
labor. Notable decisions included Hammer v. Dagenhart in which a federal child labor law was
found to be unconstitutional. Other important verdicts, like Adkins v. Children’s Hospital and
Schecter Corp. v. United States, eliminated a federal and state minimum wage, as well as
standards for working conditions. In addition, the Supreme Court also found FDR’s labor law,
the NRA, to be unconstitutional and the law was revoked.

2. Franklin D. Roosevelt vowed to change the system regardless of what it took to do it. After the
NRA was struck down and the Supreme Court upheld a verdict that allowed employers to pay
less than the state minimum wage, FDR promised that he would “pack” the Supreme Court in
order to pass a law to protect workers’ rights. The newly appointed second-term president
promised that he would appoint up to 6 extra judges in order to begin passing fair decisions on
wage and labor cases.
Fortunately, the big “switch” came from one of the already appointed judges, Justice Owen
Roberts. In the 1937 case West Coast Hotel Company v. Parrish, Elsie Parrish sued her former
employer for paying less than the minimum wage. In an unexpected switch, Judge Roberts sided
with the 4 liberal minority judges in upholder her suit. In light of this Supreme Court ruling,
along with other similar decisions to uphold workers’ rights, FDR discontinued his “pack the
court” campaign. Thus the common expression was born: “A switch in time saved 9.”
FDR had been trying since his first term to pass a law that would protect workers. By appointing
labor reform advocated Frances Perkins as Secretary of Labor, he hoped that she would be able
to help form laws that would be approved by congress. The Walsh-Healy Act had been a
successful attempt to start the process by banning governmental purchases of goods made with
child labor. Unfortunately, the NRA, has not been as successful and a replacement bill was
necessary. The Fair Labor Standards Act, drafted by Senator Hugo Black, was the solution.
In the FLSA of 1938, certain provisions were listed for both adult and child workers. It specified
a minimum wage of 25 cents per hour, with regular increases up to 40 cents per hour by 1945.
The law also limited the work week to 44 hours, and provided a “time-and-a-half” payment
provision for any additional hours worked. The bill was especially important in regulating the
child work force, as it made any work by children under 16 illegal, and made dangerous
occupations inaccessible to children under the age of 18.
FLSA Today
Over the last 70 years, the bill has undergone changes, usually to enhance the original scope and
update for modern wages. Wage increases were main purposes for the 1948, 1955, 1977, 1989,
1996 and 2007 amendments, and set up regular schedule increases in minimum wages. In the
1961 amendments, the bill was broadened to include not just industrial workers, but also
interstate and federal employees. This amendment also paved the way for inclusion of
construction workers in 1962. Additional groups that were specifically included were domestic
workers (1974), tipped workers (1977) and migrant workers (1983).
The FLSA also helped to bridge the race, gender and age discrimination that had previously been
found in the workforce. The Equal Pay Act of 1963 was an amendment of the FLSA that forced
employers to pay female employees as much as their male counterparts. This was an historic
addition, as companies had assumed that women were not heads of households and so deserved

3. less pay. The decision to equalize also extended to benefits and paved the way for the Age
Discrimination in Employment Act of 1967, which allowed older employees to continue to
receive health benefits.
Recent changes to the bill have changed the tax exemption status of many employees. In 2004,
many low-level managers were given executive status under the FSLA law, which eliminated
from receiving overtime and put them on salaries. This law also states that actual job duties, not
job title, dictate whether an employee is exempt.
Addit io nal R e s ource s
The History of the Fair Labor Standards Act is an invaluable resource provided by the United
States Department of Labor. This expansive reference gives details of the historical background
and legislative journey of this law.
The Fair Labor Standards Act of 1938, As Amended is the full text of the law as it is read today,
provided by the US Department of Labor. This is an excellent reference for seeing the changes to
the law over history.
George Mason University provides a downloadable PowerPoint presentation about the history
and practical uses of the FLSA in the workplace as part of their human resources department.
They also provide an update for the 2004 amendments and current FLSA regulations.
Cornell University offers access through their digital campus to an excellent reference for
overtime pay requirements. The Fair Labor Standards Act: A Historical Overview of the
Overtime Pay Requirements of Section 13(a)(1) gives an in depth look at this subsection of the
FLSA law and its relevance to current overtime laws.
Duke University gives additional insight into the legislative process of passing this law through a
graduate paper by John S. Forsythe entitled Legislative History of the Fair Labor Standards Act.
The paper details the congressional hearings associated with this legislation, its different drafting
periods and the vital elements that survived to become law.
The University of Alabama offers a very comprehensible FAQ guide about the FLSA. This easy-to-
read document answers questions about breaks, work hours and other common issues that are
covered by the law. Although it is geared for employees of the college, it is an excellent quick
reference.