The History of Minimum Wage Law

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The Fair Labor Standards Act of 1938 authorized the first federal minimum wage.

The federal minimum wage is backed by the Fair Labor Standards Act passed by Congress and signed into law by President Franklin D. Roosevelt in 1938. Roosevelt pushed hard to get a minimum wage, along with other labor laws, passed as part of the New Deal. After several re-workings, laws were passed giving American workers a $0.40 minimum wage and a 40-hour workweek. Since then, Congress has voted to increase the wage several times throughout the years and increased the amount of workers included.

  1. 1912: Massachusetts

    • Before the federal minimum wage was passed, Massachusetts was the first U.S. state to require a minimum wage for workers. Although it did not include all workers, mainly women and miners, the law paved the way for other states and, finally, for a federal minimum wage in the U.S. By the time the federal minimum wage law was passed, several states already had their own laws, including New York and Washington.

    1936: Walsh-Healey

    • During the 1936 presidential campaign, and as a continuation of The New Deal, President Roosevelt promised labor changes, including a minimum wage for workers. He was able to get Congress to pass the Public Contracts Act of 1936, or Walsh-Healey bill, which imposed fair labor practices on government contractors. A minimum wage was to be set for the employees of these contractors, as determined by the Secretary of Labor.

    1937: Black-Connery

    • This bill initially included child labor laws, a 40-hour workweek, a $0.40 federal minimum wage for all workers, and a "five-man wage board." The wage board would have the authority to raise the minimum wage after reviewing cost-of-living numbers and specific labor cases. Roosevelt pushed hard to pass the bill through Congress, reworking and bringing back the bill several times. It did not help that the labor unions were in disagreement over the bill. It did not pass.

    1938: Fair Labor Standards Act

    • Finally, after several revisions and many battles with Congress, the Fair Labor Standards Act was signed into law by Roosevelt on Oct. 24, 1938. A federal minimum wage was set at $0.25 per hour, the 40-hour workweek set, and the proposed five-man panel, gone.

    Amendments

    • Since its initial passing, several amendments have been added to the FLSA to increase the minimum wage and those covered by it. The following are some highlights, but not all of the changes.

      1961: The minimum wage was raised to $1.15 and many retail workers were included for the first time.
      1966: Newly entitled employees included those in nursing homes, public schools, laundries, construction and some farms.
      1974: Non-supervisory government workers were included.
      1977: The minimum wage for non-exempt agricultural workers must be the the same as for other workers.
      1989: Small retail companies must also pay their employees at least the minimum wage.
      1996: A lower minimum wage can be applied to younger workers for a 90-day period.
      2008: The minimum wage was set to $7.25 an hour.

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