Eleanor Finch
The minimum wage is a highly debated topic in the United States, with some arguing that it is an effective tool for fighting poverty and improving the economic security of low-wage workers. The minimum wage was first introduced in 1938 under the Fair Labor Standards Act (FLSA), which provided a minimum standard of living for employees and aimed to protect workers in the labour force. While the federal minimum wage is currently set at $7.25 per hour, states have the power to set their own minimum wages, which may be higher or lower than the federal level. This has led to ongoing debates about the constitutionality of the federal minimum wage, with some arguing that it violates the Tenth Amendment and usurps the rights of states to regulate commerce within their borders. Despite these arguments, the federal minimum wage has survived constitutional challenges for over 70 years, and it remains a popular piece of legislation among both Republicans and Democrats.
| Characteristics | Values |
|---|---|
| Constitutional basis for minimum wage | Article I, Section 8 of the U.S. Constitution grants Congress the power to "regulate commerce...among the several states" |
| Federal minimum wage | $7.25 per hour |
| State minimum wage | Varies; some states have higher, some have lower, and some have no minimum wage statute |
| Constitutional challenges | Arguments against federal minimum wage based on the Tenth Amendment and states' rights |
| Political debate | Tea Party and limited government ideology question the role of the federal government in setting a minimum wage |
| Purpose of minimum wage | To stabilize the economy, protect workers, and ensure a minimum standard of living |
| Exemptions | Executives, administrators, professionals, outside salespersons, and certain workers with disabilities or full-time students |
| Enforcement | Wage and Hour Division in the Labor Department investigates and detects violations |
| Effectiveness | Minimum wage has not kept up with inflation, resulting in a "poverty wage" for many workers |
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What You'll Learn
The Fair Labor Standards Act (FLSA) of 1938
The FLSA was enacted by Congress under its authority in Article I, Section 8 of the U.S. Constitution, which states that "The Congress shall have power to... regulate commerce... among the several states." The purpose of the minimum wage was to stabilise the post-depression economy and protect workers, creating a minimum standard of living to safeguard employees' health and well-being. It was also intended to aid the lowest-paid workers in the nation, who lacked the bargaining power to secure a minimum subsistence wage.
The FLSA specifically provided for a minimum wage for full-time and part-time workers in both the public and private sectors, as long as they were engaged in interstate or foreign commerce. It did not cover independent contractors, and Congress exempted certain employees from the minimum wage provisions, including executives, administrators, professionals, and outside salespersons. These employees were likely exempted because they had a higher level of bargaining power and were less vulnerable to overreaching by their employers.
The FLSA also authorised the Secretary of Labor to use various methods to enforce the minimum wage requirement, and a Wage and Hour Division was created within the Department of Labor to investigate and detect violations.
While the FLSA has been challenged on constitutional grounds, with arguments that it violates the Tenth Amendment and usurps states' rights, these challenges have been rejected by the Supreme Court, which upheld the constitutionality of the federal minimum wage.
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Article I, Section 8 of the US Constitution
One of the critical aspects of Article I, Section 8, is Clause 18, often referred to as the "Necessary and Proper" or "Elastic" Clause. This clause grants Congress the power to "make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof." This clause has been interpreted as providing Congress with implied powers to create laws that may not be explicitly mentioned in the Constitution but are deemed necessary and proper for the welfare of the nation and its people.
The establishment of a federal minimum wage is one example of how Article I, Section 8, and specifically Clause 18, come into play. While the Constitution does not explicitly mention minimum wage, Congress has used its implied powers under Clause 18 to enact legislation establishing a minimum wage. This interpretation was solidified in the landmark Supreme Court case McCulloch vs. Maryland in 1819, where the Court upheld Congress's authority to create laws that are "necessary and proper" for the country's welfare.
The federal minimum wage is currently set at $7.25 per hour for covered nonexempt employees, although some states have their own minimum wages that may be higher than the federal level. The Fair Labor Standards Act (FLSA) governs minimum wage provisions and provides civil and criminal remedies for violations. The FLSA also authorizes the Secretary of Labor to enforce the minimum wage requirement and investigate potential violations through the Wage and Hour Division.
In conclusion, Article I, Section 8 of the US Constitution grants Congress significant powers, including the ability to establish a federal minimum wage through its implied powers under Clause 18. This section has been pivotal in shaping labour standards and ensuring fair compensation for employees across the country.
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State statutes and constitutions
In the United States, the minimum wage is set by U.S. labor law and a range of state and local laws. While the federal minimum wage is currently $7.25 per hour, many states have their own minimum wage laws, which employers must comply with. These state-level laws can provide greater employee protections than the federal minimum.
The first federal minimum wage was instituted in the National Industrial Recovery Act of 1933, but it was later deemed unconstitutional. The Fair Labor Standards Act (FLSA) of 1938 established a new federal minimum wage of 25 cents per hour (equivalent to $5.58 in 2024). Congress enacted this legislation under its authority in Article I, Section 8 of the U.S. Constitution, which grants Congress the power to "regulate commerce... among the several states."
However, the Tenth Amendment states that "powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." As the Constitution does not explicitly grant Congress the power to set a minimum wage, some argue that this power is reserved for the states. This argument was presented by Senate candidates Joe Miller of Alaska and John Raese of West Virginia in 2010, reflecting the limited government ideology of the Tea Party. Nevertheless, the United States Supreme Court rejected this Tenth Amendment argument in 1940, upholding the constitutionality of the federal minimum wage.
States can be categorized into four groups based on their minimum wage laws:
- States with minimum wages higher than the federal government's
- States with statutes that match the federal minimum wage
- States without any minimum wage statute, resulting in the adoption of the federal minimum wage
- States that set a minimum wage lower than the federal government's for specific jobs, while the remaining jobs adhere to the federal minimum wage
As of January 1, 2023, 23 states increased their state minimum wage, including New York, Connecticut, Nevada, Oregon, and Washington, D.C. Some states, like Connecticut, have passed legislation to raise their minimum wage incrementally over time, aiming to reach a specific target, such as $10.10 per hour by 2017. This movement towards a higher minimum wage has been advocated by the "Fight for $15" campaign, which emerged from fast-food worker strikes.
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Exempt employees
In the United States, the Fair Labor Standards Act (FLSA) sets out the minimum wage and overtime requirements for employees. The FLSA also defines two types of employees: exempt and non-exempt. Non-exempt employees are entitled to minimum wage and overtime pay when they work more than 40 hours per week. In contrast, exempt employees are those who are exempt from minimum wage and overtime pay requirements.
To meet the criteria for exemption, an employee's specific job duties and salary must meet all the requirements of the Department of Labor's regulations. For example, an executive employee must have managing the enterprise or a department within the enterprise as their primary duty, regularly direct the work of at least two full-time employees, and have the authority to hire or fire other employees.
It is important for employers to correctly classify their employees as exempt or non-exempt to avoid costly compliance violations. Misclassification can adversely affect businesses and result in liabilities for unpaid wages and damages.
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Constitutional challenges
The national minimum wage was established by the Fair Labor Standards Act (FLSA) in 1938. Congress enacted this legislation under its authority in Article I, Section 8 of the U.S. Constitution, which states: "The Congress shall have power to... regulate commerce... among the several states." The FLSA was a comprehensive federal scheme that provided for minimum wages, overtime pay, record-keeping requirements, and child labor regulations.
Despite its longevity, the federal minimum wage has faced constitutional challenges, particularly from those advocating for limited government and states' rights. Opponents argue that the Tenth Amendment of the Constitution does not explicitly grant Congress the power to set a minimum wage and that this power should be reserved for the states. This argument was rejected by the United States Supreme Court in United States v. Darby (1940), which upheld the constitutionality of the federal minimum wage. The Court found that Congress had the power to regulate interstate commerce and could enact legislation to exclude goods produced under substandard labor conditions from interstate commerce.
However, the debate was revived during the 2010 Election, with Senate candidates Joe Miller of Alaska and John Raese of West Virginia questioning the constitutionality of the federal minimum wage. They argued that it violated the Tenth Amendment and usurped rights granted exclusively to the states. While both candidates lost the general election, the popularity of the Tea Party and its limited government ideology may lead to future challenges.
The minimum wage is a popular piece of legislation among Republicans and Democrats, and it is unlikely that Congress will repeal it. Most states have enacted their own minimum wages, which equal or exceed the federal minimum. The future of the debate depends on the continued growth of the strict construction and limited federal government movement. If more candidates supported by the Tea Party are elected, there could be a more lively debate on this issue in Congress.
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Frequently asked questions
Minimum wage laws establish a base level of pay that employers are required to pay certain employees. The current federal minimum wage in the US is $7.25 per hour.
The first attempt at establishing a national minimum wage was made in 1933 with the National Industrial Recovery Act, but this was later found to be unconstitutional. In 1938, the Fair Labor Standards Act (FLSA) established a minimum wage of 25 cents an hour.
The minimum wage was designed to create a minimum standard of living to protect the health and well-being of employees, particularly the lowest-paid workers who lacked bargaining power.
The national minimum wage was created by Congress under Article I, Section 8 of the US Constitution, which grants Congress the power to "regulate commerce... among the several states". However, the Constitution does not explicitly authorise Congress to set a minimum wage, so some argue that this power is reserved for the states.
Yes, the constitutionality of the minimum wage has been challenged by supporters of limited government, such as the Tea Party. In the 2010 Election, Senate candidates Joe Miller and John Raese argued that the federal minimum wage violates the Tenth Amendment. However, the Supreme Court unanimously rejected this argument in 1940 and upheld the constitutionality of the federal minimum wage.
