Minimum Wage

Minimum Wage


Honest Exertions Requirements Act


The nationwide minimal salary was once created through Congress below the Honest Exertions Requirements Act (FLSA) in 1938. Congress enacted this law below its authority in Article I, Segment 8 of the U.S. Charter: “The Congress shall have energy to . . . control trade . . . a number of the a number of states.” FLSA was once a complete federal scheme which equipped for minimal wages, time beyond regulation pay, report retaining necessities, and kid exertions rules. The aim of the minimal salary was once to stabilize the post-depression economic system and offer protection to the employees within the exertions power. The minimal salary was once designed to create a minimal way of life to give protection to the well being and well-being of staff. Others have argued that the principle objective was once to assist the bottom paid of the country’s operating inhabitants, those that lacked enough bargaining energy to safe for themselves a minimal subsistence salary. FLSA in particular equipped for a minimal salary for complete time and section time, private and non-private sector staff. In particular, staff who’re “engaged in” or “within the manufacturing of products for” interstate (trade between the states) and overseas trade.


FLSA’s necessities handiest practice to “staff.” To resolve whether or not a person is an worker below the FLSA, courts in most cases center of attention at the financial fact of the connection. The necessary factor is whether or not the person is “economically dependent” at the trade to which the worker renders carrier. Courts additionally take a look at plenty of elements which are very similar to the ones used within the commonplace regulation tort context to tell apart staff from impartial contractors. As an example, courts will take a look at the level of keep watch over the alleged employer has over the best way wherein the paintings is carried out – generally an employer can have extra of some extent of keep watch over over an worker, in comparison to the level of keep watch over that an employer would have over an impartial contractor.

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Congress exempted positive staff from the minimal salary provisions, as an example: executives, directors, execs, and out of doors salespersons. It’s most likely that Congress believed that those staff had the next degree of bargaining energy and weren’t as liable to overreaching through their employers. Different exceptions practice below particular instances to staff with disabilities or full-time scholars.


FLSA authorizes the Secretary of Exertions to make use of a number of other how to evaluation an employer’s behavior and put into effect the minimal salary requirement. Congress created the Salary and Hour Department within the Exertions Division to permit the Salary-Hour Administrator and the Secretary to research and discover violations. The Salary and Hour Department can compel the attendance of witnesses at hearings. It might also require an employer to make information to be had to the Salary-Hour Administrator. Moreover, the Secretary can sue to restrain violations and to a point recuperate unpaid advantages on behalf of staff.

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For extra on minimal salary, see this College of Pennsylvania Regulation Assessment article, this Denver Regulation Assessment article, and this Harvard Regulation Assessment article.

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