Fair Labor Standards Act

Definition

The Fair Labor Standards Act (FLSA) is a U.S. law enacted in 1938 that established minimum wage, overtime pay eligibility, recordkeeping, and youth employment standards. This legislation was a critical component of the New Deal, aimed at alleviating the economic struggles faced during the Great Depression by ensuring fair labor practices and improving working conditions for American workers.

5 Must Know Facts For Your Next Test

1. The FLSA initially set the minimum wage at $0.25 per hour, which was a significant step towards ensuring fair pay for workers during a time of economic hardship.
2. Overtime pay under the FLSA mandates that eligible employees must be paid one and a half times their regular hourly wage for hours worked beyond 40 in a week.
3. The Act helped reduce child labor by restricting the types of work children could perform and establishing age limits for employment.
4. Enforcement of the FLSA is managed by the Wage and Hour Division of the U.S. Department of Labor, which investigates complaints and ensures compliance.
5. The Fair Labor Standards Act has undergone several amendments since its inception, including adjustments to the minimum wage and expansions to coverage, reflecting changes in labor markets and social needs.

Review Questions

• How did the Fair Labor Standards Act reflect the goals of the New Deal during the Great Depression?
  • The Fair Labor Standards Act was aligned with New Deal objectives as it sought to provide economic security to workers during the challenging times of the Great Depression. By establishing minimum wage and overtime standards, the FLSA aimed to boost consumer spending power and create fair labor conditions that would help stimulate economic recovery. This legislation was essential in addressing widespread unemployment and poor working conditions, which were rampant during that era.
• Discuss the impact of the Fair Labor Standards Act on child labor practices in the United States.
  • The Fair Labor Standards Act had a significant impact on child labor practices by instituting strict regulations that limited the types of work children could engage in and set minimum age requirements for employment. By restricting child labor, the FLSA aimed to protect young workers from exploitation and ensure that they had access to education rather than being forced into low-wage jobs. This marked a crucial shift in societal attitudes towards child labor, emphasizing the importance of childhood education and welfare.
• Evaluate how the Fair Labor Standards Act has evolved since its passage in 1938 and its relevance to contemporary labor issues.
  • Since its passage in 1938, the Fair Labor Standards Act has evolved through numerous amendments that have adjusted minimum wage rates and expanded its coverage to include more employees. The ongoing debates surrounding living wages, overtime pay, and gig economy workers highlight the FLSA's continued relevance in addressing modern labor issues. As economic conditions change, there is an increasing need for reforms that reflect current workforce dynamics, ensuring that workers are adequately protected against exploitation while adapting to new job markets.

Related terms

New Deal: A series of programs and policies introduced by President Franklin D. Roosevelt in response to the Great Depression aimed at economic recovery and reform.

Minimum Wage: The lowest remuneration that employers can legally pay their workers, established to protect workers' rights and ensure a basic standard of living.

Child Labor: The practice of employing children in industries and businesses, which the FLSA sought to regulate by setting age restrictions and working hour limits.