Jeremy Thorpe

The Fair Labor Standards Act of 1938

American History
12/ 12/ 2017

One could argue that the implementation of the Fair Labor Standards Act of 1938 (FLSA) was
one of the most significant events in the history of business economics. The FLSA marked the beginning
of modern business practices. By establishing the FLSA, the Federal Government was able to recover
from the Stock Market Crash of 1929. Without this act, the United States could never have reached its
current economic status.
Before the FLSA was implemented, businesses had few limitations to what they could force their
employees to do. Employees could be forced to work 60 hours a week, just to get an empty envelope for a
paycheck- after the store fees were withdrawn. In other words, employers could pay their workers as little
as they wanted. The Fair Labor Standards Act of 1938 changed this system by revolutionizing the
relationship between workers and employers.
The Fair Labor Standards Act of 1938 introduced five, new, national standards regarding
employment. One of the most significant was the establishment of the first national minimum wage.
Many businesses hated the prospect of paying employees for the work that they had done. Employers
were concerned about the long-term effects of the FLSA. By forcing businesses to pay 40 cents per hour
of work, the Federal Government claimed to be able to increase the national standard of living. It was
assumed that with more money, the American population would spend more, thus boosting the economy.
In addition to a minimum wage, new employment laws were also implemented. Laws were
enacted that would affect workers’ pay and fair work environment. New standards regarding record
keeping were also established. By enforcing a fair working environment, it was believed that workers
would not only be more efficient, but they would also be less likely to protest decisions. One way
businesses achieved this goal was through the concept of overtime pay.
Overtime was the idea that there was a maximum number of hours an employee could work per
day, as well as per week. The FLSA mandated a maximum of a 44-hour work week as well as a 10-hour
work day, in which employees could not exceed without overtime pay. Those who worked overtime
earned one-and-a-half times their hourly wage for any extra hours they worked that week/day. This
provided an opportunity for workers to earn extra money.
Another national standard was that of oppressive childhood labor. Many laws were established
regarding the work hours, safety, and age of employees. Through the FLSA, a minimum age of 14 years
was established for childhood labor. The only exceptions to this policy were agriculture, some theatrical
employments, and any family-owned businesses. Even then, children under the age of 18 were banned
from any work that was deemed hazardous, such as mining and certain factory jobs. Before FLSA,
children were the cheapest form of employment. Businesses were greatly affected by this policy. Not only
was there a minimum wage, but employing young children was no longer an option.
The last national standard that was established, was that of equal pay. This standard prohibited
gender based pay. Regardless of skill, sex, working conditions, or efficiency, all employees were
guaranteed the same minimum wage of 40 cents per hour, thus improving previous regulations.
It’s hard to deny that FLSA was instrumental to our modern society. This legislation gave a voice
to millions of Americans in our workforce. In addition, this act boosted the American economy by raising
the standard of living nationwide. To this day, the Fair Labor Standards Act of 1938 is not only being
used, but it is also constantly being revised and debated. (Heard of the new $15 minimum wage in
Seattle?). Without this system, the United States’ could never have reached its current economic status.
Without the FLSA, the United States may never have recovered from the Great Depression.
 References

Yearley, Clifton K. "Fair Labor Standards Act." Salem Press Encyclopedia, 2013. EBSCOhost,
search.ebscohost.com/login.aspx?direct=true&db=t6o&AN=89314528&site=src_ic-live.

“Can History Save Us From A Depression?” AMERICAN HERITAGE, Feb. 1988,

www.americanheritage.com/content/can-history-save-us-depression.

“Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage.” U.S. Department
of Labor -- History -- Fair Labor Standards Act of 1938:
www.dol.gov/oasam/programs/history/flsa1938.htm.

Note: The Great Depression was being run as a time period, therefore, I did not include FDR’s New Deal in this argument.