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Which act of 1938 established the first federal minimum wage at 25 cents per hour?

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Fair Labor Standards Act - labor illustration
Fair Labor Standards Act — labor

The economic turmoil of the Great (Review) Depression in the 1930s highlighted the urgent need for federal intervention to protect workers from exploitation. Before this era, there were no nationwide standards for wages or working hours, leading to widespread poverty, long hours, and the pervasive use of child labor. President Franklin D. Roosevelt's New Deal sought to address these issues, culminating in a landmark piece of legislation that would fundamentally reshape American labor.

On June 25, 1938, President Roosevelt signed into law the Fair Labor Standards Act (FLSA), which established the first federal minimum wage in the United States at 25 cents per hour. This act was revolutionary for its time, setting a "floor under wages and a ceiling over hours" for a significant portion of the American workforce. Beyond the minimum wage, the FLSA also introduced a maximum 44-hour workweek, requiring overtime pay for hours worked beyond that limit, and banned "oppressive child labor."

The passage of the FLSA was not without its challenges, facing opposition from various industries and even some members of Congress, particularly from the South. However, public opinion largely supported the bill, recognizing the dire need for improved working conditions and a fairer standard of living. While 25 cents an hour might seem trivial by today's standards, it was a crucial first step in ensuring that workers received fair compensation and that exploitative labor practices, including the widespread employment of young children in dangerous jobs, were curtailed. The FLSA has since been amended numerous times to expand its coverage and adjust the minimum wage, but its core principles continue to form the backbone of labor law in the United States.