\\server05\productn\F\FLC\10-4\FLC405.txt unknown HISTORICAL OVERVIEW OF THE Seq: 1 10-NOV-09 8:48 FAIR LABOR STANDARDS ACT Pamela N. Williams* I. INTRODUCTION “If each of us hires people who are smaller than we are, we shall become a company of dwarfs, but if each of us hires people who are bigger than we are, [we shall] . . . become a company of giants.”1 It was a similar sentiment that resulted in the passage of the Fair Labor Standards Act of 1938 (FLSA). The Act provided: (a) The Congress finds that the existence, in industries engaged in commerce or in the production of goods for commerce, of labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers (1) causes commerce and the channels and instrumentalities of commerce to be used to spread and perpetuates such labor conditions among the workers of the several States; (2) burdens commerce and the free flow of goods in commerce; (3) constitutes an unfair method of competition in commerce; (4) leads to labor disputes burdening and obstructing commerce and the free flow of goods in commerce; and (5) interferes with the orderly and fair marketing of goods in commerce. That Congress further finds that the employment of persons in domestic service in households affects commerce. (b) It is declared to be the policy of this chapter, through the exercise by Congress of its power to regulate commerce among the several States and with foreign nations, * Pamela N. Williams JD, LLM, is a legal writing professor at North Carolina Central University School of Law. She is a graduate of the University of North Carolina School of Law. Prof. Williams dedicates this article to her late father, Dr. McArthur Newell, for his vision, imagination and strength of character. 1 Peter Krass, Introduction to David Ogilvy, Managing Crown Princes, in THE BOOK OF MANAGEMENT WISDOM: CLASSIC WRITINGS BY LEGENDARY MANAGERS 130 (Peter Krass, ed., 2000) (quoting David Ogilvy). \\server05\productn\F\FLC\10-4\FLC405.txt 658 unknown Seq: 2 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 to correct and as rapidly as practicable to eliminate the conditions above referred to in such industries without substantially curtailing employment or earning power.2 II. BEFORE THE FLSA Following the Reconstruction Era, the United States entered a period of rapid industrial growth that proved beneficial to the United States, as well as the world economy; however, with the rapid growth, the necessity of increased productivity became a strain on workers.3 While certain conveniences (e.g., transportation, food processing, pasteurization, etc.) became more available, the conditions of factories and manufacturing centers that created them increasingly became more dangerous and conditions were squalid.4 III. THE GREAT DEPRESSION In October 1929 the United States’ stock market collapsed, producing worldwide economic instability, and by the 1930s, the Great Depression took hold of America.5 The depression was worldwide and resulted in a descent of output and prices, and increased unemployment.6 Labor activists called for a federal minimum wage for an “American standard of living.”7 This standard of living was to match that set by some states. Specifically, Massachusetts was the first state to enact a minimum wage, although it was only for women and minors.8 29 U.S.C. § 202 (1938) (emphasis added). Sukkoo Kim, Immigration, Industrial Revolution and Urban Growth in the United States, 1820-1920: Factor Endowments, Technology and Geography (Wash. Univ. in St. Louis and Nat’l Bureau of Econ. Research, Working Paper No. 12900, 2007), available at http://soks.wustl.edu/immigration.pdf. 4 Id. 5 CHAMBERS DICTIONARY OF WORLD HISTORY 361 (Bruce Lenman & Hilary Marsden eds., 3d ed., Chambers 2005) (1994). 6 Id. 7 Thomas A. Stapleford, Market Visions: Expenditure Surveys, Market Research, and Economic Planning in the New Deal, 94 J. AM. HIST. 418 (2007) (internal quotation marks omitted). 8 William P. Quigley, ‘A Fair Day’s Pay for a Fair Day’s Work’: Time to Raise and Index the Minimum Wage, 27 ST. MARY’S L.J. 513, 516 (1996). 2 3 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 3 10-NOV-09 Williams 8:48 659 Other states, such as California, Oregon, and Washington, also enacted minimum wage laws by 1920.9 IV. WORKING CONDITIONS In his famous work, The Jungle, Upton Sinclair described working conditions through the eyes of his protagonist, Jurgis Rudkus, who was initially optimistic about working in a Chicago meat packing factory, but was quite dismayed when he first began to find it out— that most of the men hated their work. It seemed strange, it was even terrible, when you came to find out the universality of the sentiment; but it was certainly the fact—they hated their work. They hated the bosses and they hated the owners; they hated the whole place, the whole neighborhood—even the whole city, with an allinclusive hatred, bitter and fierce. Women and little children would fall to cursing about it; it was rotten, rotten as hell—everything was rotten.10 Despite the working conditions, the mass industrialization of the United States produced an ample supply of consumer products, which were readily purchased by the citizenry.11 During this time, many of the necessities for funding and participation in World War I fueled the rise in the American economy.12 While in the war, the United States shifted more than twenty percent of its production to wartime needs.13 Much of the United States’ prosperity during this period can be tied directly to World War I, as well as the supply of jobs created by the invention of the automobile.14 Another benefit of the war was the creaId. UPTON SINCLAIR, THE JUNGLE 81-82 (Plain Label Books 1906) (1906). 11 P. EDWARDS, STRIKES IN THE UNITED STATES 1881-1974, at 154 (1981). 12 Id. 13 JOHN M. PETERSON & RALPH GRAY, ECONOMIC DEVELOPMENT OF THE UNITED STATES 357 (1969). 14 See generally JAMES H. MADISON, INDIANA THROUGH TRADITION AND CHANGE: A HISTORY OF THE HOOSIER STATE AND ITS PEOPLE, 1920-1945 (Indiana Historical Society 1982). 9 10 \\server05\productn\F\FLC\10-4\FLC405.txt 660 unknown Seq: 4 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 tion of the World War I National War Labor Board, which the President established “to settle industrial disputes, [and] became the model for a national system of labor-management relations in the 1930s. For the emergency period during the War, union representatives on that board won the right of workers to join unions and not be discharged for union activity.”15 Ultimately, the economic boom afforded by industrialization and the war ended with the stock market crash of 1929.16 Immediately thereafter, the United States suffered through the Great Depression, which stripped the country of the prosperity, as well as the jobs, afforded by the increased industrialization and the war effort.17 Employment conditions became increasingly worse, and Congress and the President took a number of measures to address labor issues.18 As referenced earlier, before the stock market crash, World War I resulted in the creation of the War Labor Board in 1918.19 The War Labor Board continued to improve labor-management relations. In addition, the Bureau of Labor Statistics received funding during the war to conduct wage surveys to address labor-related issues.20 The work of these bureaus formed the basis for the legislation that would ultimately become the FLSA.21 V. CHALLENGES TO STATE WAGE LAWS Nonetheless, the United States Supreme Court failed to uphold state statutes that interfered with employers’ employment and wage contracts with workers.22 In Adkins v. Children’s Hospital of the District of Columbia, the Supreme Court sought to determine whether the PETERSON & GRAY, supra note 13, at 358. Robert VanGiezen & Robert E. Schwenk, Compensation from Before World War I Through the Great Depression, COMPENSATION & WORKING CONDITIONS, Jan. 30, 2003, http://www.bls.gov/opub/cwc/cm20030124ar03p1.htm. 17 H.M. Douty, A Century of Wage Statistics: The BLS Contribution, MONTHLY LAB. REV., Nov. 1984, at 16, 20. 18 See id. 19 PHILIP SHELDON FONER, AMERICAN LABOR AND THE INDOCHINA WAR: THE GROWTH OF UNION OPPOSITION 174 (1987). 20 See Douty supra note 17, at 19-20. 21 See Quigley, supra note 8, at 520-29. 22 Id. at 518. 15 16 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Williams Seq: 5 10-NOV-09 8:48 661 District of Columbia could set minimum wages for adult women and children without regard to their earning ability or the necessities of the employer.23 The Act at issue declared that its purpose was, “[t]o protect the women and minors of the District from conditions detrimental to their health and morals, resulting from wages which are inadequate to maintain decent standards of living; and the act in each of its provisions and in its entirety shall be interpreted to effectuate these purposes.”24 However, the Supreme Court held that the District of Columbia legislation conflicted with the Fifth Amendment and was therefore invalid.25 The Court rationalized the legislation interfered with the freedom to contract, which is “included within the guaranties of the due process clause of the Fifth Amendment. That the right to contract about one’s affairs is a part of the liberty of the individual protected by this clause is settled by the decisions of this court and is no longer open to question.”26 The Court noted that it upheld a Utah statute restricting the amount of time workers could spend in mines under the police power of the state,27 and cited other cases upholding legislation based on the same police power argument28—including Bunting v. Oregon 29 and Wilson v. New.30 The Court found rent-fixing cases comparable with the issue at hand in Adkins. 31 Adkins v. Children’s Hosp. of D.C., 261 U.S. 525, 539 (1923). Id. at 541-42 (internal quotation marks omitted). 25 Id. at 560-62. 26 Id. at 545 (citing Butchers’ Union v. Crescent City, 111 U.S. 746 (1884); Allgeyer v. Louisiana, 165 U.S. 578 (1897); Lochner v. New York, 198 U.S. 45 (1905); Adair v. United States, 208 U.S. 161 (1908); Muller v. Oregon, 208 U.S. 412, 421 (1908); Coppage v. Kansas, 236 U.S. 1, 10, 14 (1915); N.Y. Life Ins. Co. v. Dodge, 246 U.S. 357, 373-74 (1918) (citations omitted)). 27 Id. at 548-49 (citing Holden v. Hardy, 169 U.S. 366 (1898)). 28 Id. at 550-51. 29 Bunting v. Oregon, 243 U.S. 426, 439 (1917) (upholding an Oregon statute forbidding any manufacturing establishment to employ a person for more than ten hours per day). 30 Wilson v. New, 243 U.S. 332, 356-57 (1917) (sustaining a state law which established an eight hour workday for employees of interstate carriers). 31 Adkins, 261 U.S. at 552 (citing Block v. Hirsh, 256 U.S. 135 (1921); Marcus Brown Holding Co. v. Feldman, 256 U.S. 170 (1921)). 23 24 \\server05\productn\F\FLC\10-4\FLC405.txt 662 unknown Seq: 6 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 Several activists submitted presentations and statistics about how the minimum wage laws improved the status of women in the workplace.32 However, the Court replied: That the earnings of women are now greater than they were formerly, and that conditions affecting women have become better in other respects, may be conceded; but convincing indications of the logical relation of these desirable changes to the law in question are significantly lacking. They may be, and quite probably are, due to other causes. We cannot close our eyes to the notorious fact that earnings everywhere in all occupations have greatly increased-not alone in states where the minimum wage law obtains but in the country generally-quite as much or more among men as among women, and in occupations outside the reach of the law as in those governed by it. No real test of the economic value of the law can be had during periods of maximum employment, when general causes keep wages up to or above the minimum; that will come in periods of depression and struggle for employment, when the efficient will be employed at the minimum rate, while the less capable may not be employed at all.33 As to using police power to regulate wages, the Court stated: Finally, it may be said that if, in the interest of the public welfare, the police power may be invoked to justify the fixing of a minimum wage, it may, when the public welfare is thought to require it, be invoked to justify a maximum wage. The power to fix high wages connotes, by like course of reasoning, the power to fix low wages. If, in the face of the guaranties of the Fifth Amendment, this form of legislation shall be legally justified, the field for the operation of the police power will have been widened to a great and dangerous degree.34 32 33 34 Id. at 560. Id. Id. at 560-61. \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 7 10-NOV-09 Williams 8:48 663 Chief Justice William Howard Taft dissented, stating that, “[t]he right of the Legislature under the Fifth and Fourteenth Amendments to limit the hours of employment on the score of the health of the employee, it seems to me, has been firmly established.”35 He went on to state that Adkins should be controlled by Muller v. Oregon, which held that women could not work in a factory or laundry for more than ten hours per day because of their inferior strength and to preserve their health.36 The Supreme Court upheld both eight and ten hour restrictions in several other cases.37 Thirteen years after Adkins was decided, in Morehead v. New York ex rel. Tipaldo, the Supreme Court granted certiorari to hear a case involving restricting the minimum wage laws based on the Fourteenth Amendment.38 In Morehead, police arrested the manager of a laundry because he refused to pay the women who worked for him the New York legislative minimum wage.39 The manager argued that under Adkins, the New York statute violated the Fifth Amendment.40 The Court noted the following about the New York statute: The act extends to women and minors in any “occupation” which “shall mean an industry, trade or business or branch thereof or class of work therein in which women or minors are gainfully employed, but shall not include domestic service in the home of the employer or labor on a farm.” It is not an emergency law. It does not regulate hours or any conditions affecting safety or protection of 35 Id. at 563 (Taft, C.J., dissenting) (citing Bunting v. Oregon, 243 U.S. 426 (1917) (which limited all factory workers to ten hours); Muller v. Oregon, 208 U.S. 412 (1908) (which limited women’s hours); Holden v. Hardy, 169 U.S. 366 (1898) (where the police power was applied to miners)). 36 Id. at 566 (citing Muller, 208 U.S. at 422-23). 37 See Miller v. Wilson, 236 U.S. 373, 379 (1915) (hotels); Bosley v. McLaughlin, 236 U.S. 385, 388-89 (1915) (nurses); Riley v. Massachusetts, 232 U.S. 671, 679 (1914) (manufacturing or mechanical establishments). 38 Morehead v. New York ex rel. Tipaldo, 298 U.S. 587 (1936), abrogated by Olsen v. State of Nebraska ex rel. Western Reference & Bond Ass’n, 313 U.S. 236, 244 (1941). 39 Id. at 602. 40 Id. at 603. \\server05\productn\F\FLC\10-4\FLC405.txt 664 unknown Seq: 8 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 employees. It relates only to wages of adult women and minors.41 In Morehead, the Court distinguished Adkins based upon the purpose of the statute. In Adkins, the purpose of the statute was to “protect women from conditions detrimental to their health and morals, resulting from wages inadequate to maintain decent standards of living.”42 On the contrary, the New York statute in Morehead declares it to be against public policy for any employer to employ any woman at an oppressive and unreasonable wage defined as one which is “both less than the fair and reasonable value of the services rendered and less than sufficient to meet the minimum cost of living necessary for health.” “A fair wage” is one “fairly and reasonably commensurate with the value of the service or class of service rendered.” If the commissioner is of opinion that any substantial number of women in any occupation are receiving oppressive and unreasonable wages he shall appoint a wage board to report upon the establishment of minimum fair wage rates. After investigation, the board shall submit a report including its recommendations as to minimum fair wage standards.43 The Court noted the statute in Adkins provided for a determination of what wages were “inadequate to supply the necessary cost of living to any such women workers to maintain them in good health and to protect their morals.”44 On the other hand, the New York statute challenged in Morehead protected women against “an oppressive and unreasonable wage,” which the statute described in two elements: (1) “less than the fair and reasonable value of the services rendered,” and (2) “less than sufficient to meet the minimum cost of living necessary for health.”45 The Attorney General argued: 41 42 43 44 45 Id. at 603-04 (quoting N.Y. LABOR LAW § 551(6) (McKinney 1933)). Id. at 605. Id. (quoting N.Y. LABOR LAW §§ 552, 551(7), (8), 554, 555 (McKinney 1933)). Id. Id. \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 9 10-NOV-09 Williams 8:48 665 [t]he purpose of the statute in the Adkins Case was to guarantee a wage based solely upon the necessities of the workers. The statute did not provide for the wages to have any relationship to earning power; was applicable to all vocations and not to the character of the work.46 The New York statute in Morehead sought to place a floor below which employers could not descend and was not necessarily interested in a living wage; it was interested in paying fair wages or reasonable value for the types of work that women provided.47 The Court explained the New York statute did not extend to men, and only affected the rights of adult women and all minors under the age of twenty-one.48 Specifically, the Morehead Court stated: [p]hysical differences between men and women must be recognized in proper cases and legislation fixing hours or conditions of work may properly take them into account,49 but “we cannot accept the doctrine that women of mature age, sui juris, require or may be subjected to restrictions upon their liberty of contract which could not lawfully be imposed in the case of men under similar circumstances. To do so would be to ignore all the implications to be drawn from the present day trend of legislation, as well as that of common thought and usage, by which woman is accorded emancipation from the old doctrine that she must be given special protection or be subjected to special restraint in her contractual and civil relationships.”50 The Court again noted that the New York statute is not an answer to an emergency; it is a broad permanent policy for women laborers, who seem to be taking over increasing numbers of jobs that would 46 47 48 49 50 Id. Id. Id. Id. Id. at at at at 607. 607-08. 610. 611 (citing Adkins v. Children’s Hosp. of D.C., 261 U.S. 525, 553 (1923). \\server05\productn\F\FLC\10-4\FLC405.txt 666 unknown Seq: 10 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 ordinarily belong to men.51 Considering the competition for work between men and women, the Court rationalized: [m]en in need of work are as likely as women to accept the low wages offered by unscrupulous employers. Men in greater number than women support themselves and dependents and because of need will work for whatever wages they can get and that without regard to the value of the service and even though the pay is less than minima prescribed in accordance with this act. It is plain that, under circumstances such as those portrayed in the “factual background,” prescribing of minimum wages for women alone would unreasonably restrain them in competition with men and tend arbitrarily to deprive them of employment and a fair chance to find work.52 Consequently, the Court held minimum wages violated the Fourteenth Amendment.53 VI. THE NEW DEAL Regardless of the Court’s decision, the pessimistic view of employment still loomed in America. There seemed to be no end to the Depression until the thirty-second presidential election. Following the election of Franklin Delano Roosevelt, the federal government implemented the New Deal or more specifically, legislation that gave the federal government essentially limitless power over economic and social issues.54 This legislation quickly passed in the first one hundred days of Roosevelt’s presidency.55 The legislation affecting those in labor industries was of great significance.56 During the 1930s tensions between workers and emId. at 615. Id. at 616-17. 53 Id. at 618. 54 Michal R. Belknap, The New Deal and the Emergency Powers Doctrine, 62 TEX. L. REV. 67 (1983). 55 CHAMBERS DICTIONARY OF WORLD HISTORY, supra note 5, at 714. 56 Michael D. Yates, Should We Return to the Policy of the Wagner Act?, 4 U. PA. J. LAB. & EMP. L. 559 (2002). 51 52 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 11 10-NOV-09 Williams 8:48 667 ployers were very high.57 Workers tried to form unions to push for better working conditions, but business owners responded to their actions harshly, blacklisting organizers and using force to prevent strikes.58 VII. THE NATIONAL INDUSTRIAL RECOVERY ACT Reacting to the employment struggles, President Roosevelt enacted the National Industrial Recovery Act (NIRA) in 1933.59 This Act authorized the President to “approve codes of fair competition” and “[to] impose such conditions . . . for the protection of consumers, competitors, employees, and others, and in furtherance of the public interest . . . .”60 However, in A.L.A. Schechter Poultry Corp. v. United States, the Supreme Court held that the NIRA was an unconstitutional delegation of legislative power to the President because there was no statutory standard to guide him.61 In 1935 Congress enacted the National Labor Relations Act— also called the Wagner Act—which “guaranteed the rights of workers to join labor unions and to bargain collectively with their employers.”62 The Wagner Act benefited employees across the board, in that “[t]he impact of unionization on the wages and benefits of blue-collar workers in important manufacturing industries also spilled over into non-union workplaces and industries.”63 The Wagner Act guaranteed that non-supervised employees would have the right to organize themselves, decide on representatives, and bargain collectively or elect not to do any of these things.64 It provided: SEC. 157. Employees shall have the right to self-organization, to form, join, or assist labor organizations, to barSee id. at 561. Id. 59 15 U.S.C. § 703 (1933). 60 A.L.A. Schechter Poultry Corp. v. United States, 295 U.S. 495, 521-23 (1935). 61 Id. at 549-51; Belknap, supra note 54, at 96-97; see U.S.CONST. art. I, § 8, cl. 3. 62 VanGiezen & Schwenk, supra note 16. 63 Id. 64 Brian Bain, The NLRB: The Wagner Act of 1935, http://www.stfrancis.edu/ba/ ghkickul/stuwebs/btopics/works/wagner.htm (last visited Aug. 25, 2009). 57 58 \\server05\productn\F\FLC\10-4\FLC405.txt 668 unknown Seq: 12 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 gain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection . . . .65 SEC. 158. It shall be an unfair labor practice for an employer— (1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 157 of this title; (2) to dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it: Provided, That . . . an employer shall not be prohibited from permitting employees to confer with him during working hours without loss of time or pay; (3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization: Provided, That nothing in this subchapter or in any other statute of the United States, shall preclude an employer from making an agreement with a labor organization (not established, maintained, or assisted by any action defined in this subsection as an unfair labor practice) to require as a condition of employment membership therein . . . if such labor organization is the representative of the employees . . . in the appropriate collective-bargaining unit covered by such agreement when made . . . ; (4) to discharge or otherwise discriminate against an employee because he has filed charges or given testimony under this subchapter; (5) to refuse to bargain collectively with the representatives of his employees . . . .66 Upon signing the Act into law, President Roosevelt made the following statement: 65 66 National Labor Relations Act of 1935 § 7, 29 U.S.C. § 157 (2009). National Labor Relations Act of 1935 § 8, 29 U.S.C. § 158(a) (2009). \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 13 10-NOV-09 Williams This Act defines, as a part of our substantive law, the right of self-organization of employees in industry for the purpose of collective bargaining, and provides methods by which the Government can safeguard that legal right. It establishes a National Labor Relations Board to hear and determine cases in which it is charged that this legal right is abridged or denied, and to hold fair elections to ascertain who are the chosen representatives of employees. A better relationship between labor and management is the high purpose of this Act. By assuring the employees the right of collective bargaining it fosters the development of the employment contract on a sound and equitable basis. By providing an orderly procedure for determining who is entitled to represent the employees, it aims to remove one of the chief causes of wasteful economic strife. By preventing practices which tend to destroy the independence of labor, it seeks, for every worker within its scope, that freedom of choice and action which is justly his. The National Labor Relations Board will be an independent quasi-judicial body. It should be clearly understood that it will not act as mediator or conciliator in labor disputes. The function of mediation remains, under this Act, the duty of the Secretary of Labor and of the Conciliation Service of the Department of Labor. It is important that the judicial function and the mediation function should not be confused. Compromise, the essence of mediation, has no place in the interpretation and enforcement of the law. This Act, defining rights, the enforcement of which is recognized by the Congress to be necessary as an act of both common justice and economic advance, must not be misinterpreted. It may eventually eliminate one major cause of labor disputes, but it will not stop all labor disputes. It does not cover all industry and labor, but is applicable only when violation of the legal right of independent self-organization would burden or obstruct interstate commerce. Accepted by management, labor and 8:48 669 \\server05\productn\F\FLC\10-4\FLC405.txt 670 unknown Seq: 14 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 the public with a sense of sober responsibility and of willing cooperation, however, it should serve as an important step toward the achievement of just and peaceful labor relations in industry.67 The Act applied “to all employers involved in interstate commerce other than airlines, railroads, agriculture, and government.”68 Most importantly, the Wagner Act, employed by the National Labor Relations Board to improve labor-management relations, made it illegal for employers and labor unions to infringe upon employees’ rights.69 The board held hearings and determined whether an employer or union violated labor or union laws.70 VIII. THE FAIR LABOR STANDARDS ACT In 1938, following the Wagner Act, the federal government enacted the Fair Labor Standards Act (FLSA), in an effort to provide for the establishment of fair labor standards in employments affecting interstate commerce, and for other purposes. At the time of enactment, the [United States] Congress found that in many industries, the labor conditions in existence were detrimental to workers maintaining the minimum standard of living necessary for health, efficiency, and general well-being. Congress believed these issues burdened the free flow of goods in commerce; created unfair competition in commerce; and lead [sic] to labor disputes. These labor disputes, Congress believed also burdened and obstructed commerce and fair marketing of goods in commerce. More importantly, the FLSA was adopted in an attempt to stimulate economic recovery from the Great Depression. Congress wanted the FLSA to ensure jobs that paid Franklin D. Roosevelt, President of the United States of America, Statement on the National Labor Relations Act (The Wagner Act) (July 5, 1935), available at http:// www.fdrlibrary.marist.edu/odnlrast.html (last visited Aug. 25, 2009). 68 Bain, supra note 64. 69 Id.; see Roosevelt, supra note 67. 70 Roosevelt, supra note 67; Bain, supra note 64. 67 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 15 10-NOV-09 Williams 8:48 671 a minimum livable wage. Additionally, Congress required overtime pay under the FLSA. To encourage compliance, the FLSA subjected employers to a monetary penalty for not spreading their existing work among the entirety of their workforce.71 Prior to the enactment of the FLSA, Congress passed the DavisBacon Act of 1931, which established the requirement for paying workers prevailing wages in public works projects.72 The Secretary of Labor, pursuant to the Act, determined what those minimum wages would be.73 Meanwhile, the National Labor Relations Board was created to prevent unfair labor practices.74 Procedures were put into place for hearings on these matters.75 Although a primary purpose of the Act was to provide for the safety and well-being of workers, Congress also designed it to protect interstate commerce.76 Ostensibly, commerce was of central concern to the federal government based on fluctuation in the economy over the decades preceding the enactment of the FLSA. Before enactment of the FLSA, the prior two decades saw the strong economy fall overnight after the stock market crash. Consequently, the FLSA put a strong value on interstate commerce and the worker.77 IX. THE WOMEN’S BUREAU Although the average worker suffered amid squalid conditions, minorities and women bore heavier burdens.78 In 1920 Congress estabE. Fredrick Preis, Jr. & Reginald C. Johnson, Coverage Under the FLSA and the New Regulations, EMP. REL. L.J., Sept. 22, 2004, available at http://www.accessmy library.com/coms2/summary_0286-14368866_ITM. 72 U.S. Chamber of Commerce, Davis-Bacon Act, http://www.uschamber.com/issues/ index/labor/davisbacon.htm (last visited Aug. 25, 2009). 73 29 C.F.R. § 1.1 (2009). 74 Bain, supra note 64. 75 29 C.F.R. § 101.10 (2009). 76 See United States v. Darby, 312 U.S. 100, 109-10 (1941). 77 Id. at 109. 78 See WOMEN’S BUREAU, U.S. DEP’T OF LABOR, LEAFLET NO. 25, WOMEN IN THE CANDY INDUSTRY IN CHICAGO AND ST. LOUIS: A STUDY OF HOURS, WAGES, AND WORKING CONDITIONS IN 1920-1921, at 42-46 (1923), available at http://pds.lib. harvard.edu/pds/view/2586392?n=1&s=4. 71 \\server05\productn\F\FLC\10-4\FLC405.txt 672 unknown Seq: 16 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 lished the Women’s Bureau of the United States Department of Labor.79 Since its inception, it “is the only federal agency mandated to represent the needs of wage-earning women in the public policy process.”80 In 1928 Eleanor Roosevelt wrote an article in which she pressed the notion that women should be politically equal with men.81 She noted that in meetings of significant political importance, either women are not asked their opinion or women do not volunteer it.82 She also stated that “[p]olitically, as a sex, women are generally ‘frozen out’ from any intrinsic share of influence in their parties.”83 Mrs. Roosevelt concluded that the only way to forward women’s objectives was to “elect, accept and back women political bosses.”84 She then criticized women, stating: The trouble with many women is that they won’t work. They won’t take up their jobs as men do and put in seven or eight real working hours a day. They lack knowledge, and at that many won’t take the pains to study history, economics, political methods or get out among human beings. If they take a volunteer political job, it is a thing of constant interruptions, with no sense of application, concentration, business efficiency or order. One of the reasons why men leaders so often do not consider as important what a woman says is that they do not feel sure she has been active among the mass of women voters and has learned what they want. In fact, many women do make the mistake of ‘talking out of a blue sky’ instead of going about, mixing with women, and getting their point of view from close personal contact and practical experience. When a man leader says his following want certain things, the men higher up realize that he United States Department of Labor, Women’s Bureau, An Overview 1920–2009, http://www.dol.gov/wb/info_about_wb/interwb.htm (last visited Aug. 25, 2009). 80 Id. 81 Eleanor Roosevelt, Women Must Learn to Play the Game as Men Do, THE RED BOOK MAG., Apr. 1928, at 78, available at http://newdeal.feri.org/er/er10.htm. 82 Id. 83 Id. 84 Id. 79 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 17 10-NOV-09 Williams 8:48 673 knows what he is talking about, and that he has gone through his district.85 As she called for women to band together for their rights, she concluded: I should not want the average woman, or the exceptional woman for that matter, who for one reason or another could not do a public job well, to take one at present. For just now a woman must do better than a man, for whatever she does in the public eye reflects on the whole cause of women. There are women in the United States I would gladly see run for any office. But if we cannot have the best I should prefer to wait and prepare a little longer until women are more ready to make a fine contribution to public life in any office they might hold . . . . .... . . . Certain women profess to be horrified at the thought of women bosses bartering and dickering in the hard game of politics with men. But many more women realize that we are living in a material world, and that politics cannot be played from the clouds. To sum up, women must learn to play the game as men do. If they go into politics, they must stick to their jobs, respect the time and work of others, master a knowledge of history and human nature, learn diplomacy, subordinate their likes and dislikes of the moment and choose leaders to act for them and to whom they will be loyal. They can keep their ideals; but they must face facts and deal with them practically.86 In 1932 Mrs. Roosevelt asked the nation why there could not be a female head of the Department of Labor or the Department of Educa- 85 86 Id. Id. \\server05\productn\F\FLC\10-4\FLC405.txt 674 unknown Seq: 18 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 tion.87 She concluded that “[t]he only danger that women will not get what they want lies in the fact that there are still a goodly number who do not know how to use their influence and how to make known their ideas.”88 Mrs. Roosevelt continued to rally women to increase and use their political rights throughout the 1930s.89 During World War II, twelve thousand women served as overseas nurses.90 This spurred a surge in domestic nurses, both professional and in training.91 In addition, 2.3 million women worked in war industries.92 Of that number, 1.9 million regularly worked in factories.93 After the war, the issue of whether women would be able to keep their jobs arose.94 Mrs. Roosevelt emphasized: There is one point, however, upon which I think labor leaders have a right to insist: women should not come into any labor group and allow themselves to be used at present or in the future as a body for keeping down the wages of men, either because they can live on less or because they, being unorganized, have never understood the need to stand together with any group in order to help the group.95 87 See Eleanor Roosevelt, What Ten Million Women Want, THE HOME MAG., Mar. 1932, at 19, available at http://newdeal.feri.org/search_details.cfm?link=http://new deal.feri.org/er/er11.htm. 88 Id. 89 See Eleanor Roosevelt, Women in Politics, GOOD HOUSEKEEPING, Jan. 1940, at 8, available at http://newdeal.feri.org/er/er13.htm; Eleanor Roosevelt, Women and the Vote, IT’S UP TO THE WOMEN (1933), at 189, available at http://newdeal.feri.org/er/ er12.htm. 90 Eleanor Roosevelt, American Women in the War, THE READER’S DIG., Jan. 1944, at 42, available at http://newdeal.feri.org/er/er14.htm. 91 Id. 92 Id. 93 Id. 94 Eleanor Roosevelt, Woman’s Place After the War, CLICK, Aug. 1944, at 17, available at http://newdeal.feri.org/er/er15.htm. 95 Id. \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 19 10-NOV-09 Williams 8:48 675 Mrs. Roosevelt concluded “whether women remain in the labor market or not will be, as it always has been, mainly a question of economic necessity.”96 The National Women’s Trade Union League advocated for female workers in the early 1900s through the 1930s, and attempted to organize women into labor unions.97 However, male labor unions disapproved of the attempt and offered limited support.98 It seemed that many women did not plan to continue working after the depression.99 They expected to be saved by a profitable marriage rather than contemplate a career.100 The Works Progress Administration (WPA)—established by President Roosevelt—contained a Women’s Division.101 In her speech, Ellen S. Woodward, a prominent Assistant Administrator inside the WPA, noted that the nation’s largest problem was unemployment.102 “According to the conservative estimate of the Committee on Economic Security, in March 1933, at the end of four years of an economic toboggan slide, there were 15,071,000 workers in this country cut off from their jobs.”103 Woodward then praised President Roosevelt’s WPA and gave an account of seeing, while traveling, eight hundred women newly employed in one city and in another city, some one thousand women in line for their first paychecks.104 Woodward continued to praise the administration and even gave certain statistics: Over 12,000,000 garments were made in our 6,000 women’s sewing rooms, all of which were distributed to unId. Seth D. Harris, Conceptions of Fairness and the Fair Labor Standards Act, 18 HOFSTRA LAB. & EMP. L.J. 19, 49 (2000). 98 Id. 99 See id. 100 See id. 101 See Ellen S. Woodward, Assistant Administrator in Charge of Women’s Activities, Address Before the Democratic Women’s Regional Conference for Southeastern States (Mar. 19, 1936), available at http://newdeal.feri.org/works/ wpa03htm; see Exec. Order No. 6252, (1933), available at http://www.presidency. ucsb.edu/ws/index.php?pid=14505. 102 Woodward, supra note 101, at 4. 103 Id. at 5. 104 Id. at 19. 96 97 \\server05\productn\F\FLC\10-4\FLC405.txt 676 unknown Seq: 20 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 employable on relief rolls. These sewing rooms gave employment to more than 150,000 women. More than 4,000,000 public library books were repaired last year and put back into use, giving employment to over 12,300 women and services to hundreds of thousands. Our library extension project carried on last year served over 1,000,000 persons and reached into the farthest rural sections of this country. Over 10,882 hot lunch projects in 41 states served warm food daily to 1,93C,945 [sic] undernourished, needy children, which gave employment to 10,078 women from relief rolls. Other health projects in 45 states gave employment to 6,351 nurses who visited 3,532,841 homes and examined 2,015,993 children. A total of 89,410 physical defects were corrected for children.105 Woodward concluded her speech with a portion titled “Functions of the Women’s Division.”106 The two main functions of the Women’s Division were: (1) “to develop and carry on . . . work projects for eligible women on relief rolls—projects which are useful to the community and to the individual as well”, and (2), “to see that employable women on relief rolls who are eligible for work receive equal consideration with men in this program.”107 Woodward noted the problem of the unskilled woman, who was difficult to employ, but added that some vocational guidance was available in different states.108 X. FLSA: DEFINITION OF EMPLOYEE Nonetheless, one of the main concerns of the FLSA affecting women then and now, is the definition of employee.109 Congress passed the FLSA to govern four major areas: minimum wages, overtime pay, Id. at 33. Id. at 35. 107 Id. at 35, 37. 108 See id. at 41-44. 109 See Quigley supra note 8, at 533 (“The FLSA’s definition of ‘employee’ resulted in primarily traditional male jobs, such as those of production-line workers in steel plants, being covered by the FLSA, while exemptions left traditional female jobs . . . open to argument.”). 105 106 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Williams Seq: 21 10-NOV-09 8:48 677 equal pay, and child labor.110 Although it was a broadly based act, the FLSA applied only to (1) employees engaged in interstate commerce; (2) employees who produced goods for interstate commerce; and, (3) employees engaged in an enterprise business relating to interstate commerce.111 State laws provided coverage to all other employees.112 Those exempt from the FLSA as enacted, included apprentices, housekeepers, chauffeurs, babysitters, message deliverers, seasonal workers, and movie employees.113 Privately paid household work is a large industry exempted by the Act.114 As of 2000, there were approximately one million domestic workers in America.115 These jobs have no benefits.116 Further, many domestic workers are not documented, so it was easy to deny them the protection of the FLSA during the New Deal.117 Recently however, courts have consistently held that undocumented workers are covered by the FLSA.118 Domestic workers—a high percentage of them being women— have categorically been denied protection under several federal laws, 110 Suzanne M. Crampton, John W. Hodge & Jitendra M. Mishra, The FLSA and Overtime Pay, PUB. PERSONNEL MGMT., Fall 2003, http://www.entrepreneur.com/ tradejournals/article/160714654_1.html. 111 Id.; Donald J. Spero, Coverage of the Fair Labor Standards Act: What Connection with Commerce Brings an Employee Within the Coverage of the Fair Labor Standards Act?, Part I, FLA. B.J., May 2007, at 45. 112 Crampton, Hodge & Mishra, supra note 110, at 1 (“Employers and employees who are not covered by the FLSA are generally required to comply with, or are protected by, state laws that regulate maximum hours and minimum wages.”). 113 Id. 114 Peggie R. Smith, Organizing the Unorganizable: Private Paid Household Workers and Approaches to Employee Representation, 79 N.C. L. REV. 45, 46 (2000) (“Yet while the demand for private domestic service workers appears on the upswing, the conditions that prevail in the job remain stagnate. Low wages, a lack of benefits, and a lack of standardization are enduring traits of the domestic service industry.”). 115 Id. at 52. 116 Id. at 53-54. 117 See id. at 55-57 (“The failure to conceptualize domestic service as a legitimate occupation has profound implications for the treatment of paid household workers within the law of employment relationships.”). 118 Katherine E. Seitz, Enter at Your Own Risk: The Impact of Hoffman Plastic Compounds v. National Labor Relations Board on the Undocumented Worker, 82 N.C. L. REV. 366, 398 (2003). \\server05\productn\F\FLC\10-4\FLC405.txt 678 unknown Seq: 22 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 including the NIRA and the Social Security Act.119 Since the employer must classify the employment, many domestic workers are excluded because domestic employers do not consider themselves employers.120 The National Labor Relations Act excluded domestic workers because they lacked a common employer and a common work site.121 In addition, domestic service did not clearly affect interstate commerce.122 Thus, domestic workers could not unionize and make demands.123 In 1936 most domestic service workers were African AmeriNow, there is still a disproportionate number of minorities who can. work in domestic jobs,125 but there are more people of other cultures, including people of Central American, Caribbean, and Mexican descent.126 However, illegal aliens have been protected under the FLSA.127 124 In fact, in North Whittier Heights Citrus Ass’n v. NLRB, the Ninth Circuit Court of Appeals indicated that domestic workers did not need legal protections because they would not suffer in negotiating with employers and would not need to unionize.128 Because of the extensive Smith, supra note 114, at 57. Id. at 57-58 (“Many household employers fail to regard themselves as employers or to perceive their homes as workplaces . . . .”). 121 See id. at 59-60 (“[D]omestic service employees are one of the few groups that the Act expressly excludes by its terms.”). 122 See id. at 63-64 (“The domestic service exemption may also have reflected congressional concern regarding the constitutionality of its commerce power.”). 123 See id. at 59-63. 124 Id. at 65. 125 Id. at 71. 126 ENCYCLOPEDIA OF RACE, ETHNICITY, AND SOCIETY 407 (Richard T. Schaefer ed., Vol. 3, 2008). 127 Seitz, supra note 118, at 398; see also 29 U.S.C. § 203(e)(1) (2008); Flores v. Albertsons, Inc., No. CV0100515AHM(SHX), 2002 WL 1163623, at *5 (C.D. Cal. Apr. 9, 2002) (“Federal courts are clear that the protections of the FLSA are available to citizens and undocumented workers alike.” (citing Patel v. Quality Inn S., 846 F.2d 700, 706 (11th Cir. 1988))); Liu v. Donna Karan Int’l, Inc., 207 F. Supp. 2d 191, 192 (S.D.N.Y. 2002) (“[U]ndocumented workers were entitled to maintain an action for unpaid wages and damages under the FLSA.” (citing Patel, 846 F.2d 700)). 128 N. Whittier Heights Citrus Ass’n v. NLRB, 109 F.2d 76, 80 (9th Cir. 1940). 119 120 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Williams Seq: 23 10-NOV-09 8:48 679 exemptions, the beneficiaries of the FLSA were mostly white males working in industrial labor.129 Perhaps it should not be surprising that women in the workforce suffer more than men, even in light of the FLSA protections. “Despite women’s presence in the paid labor force in overwhelming numbers, we still tend to see women as inauthentic workers.”130 The mainstream does not see domestic work out of the home as real employment.131 Thus, women are paid less for jobs compared to men and frequently are relegated to lower-paying and lower-status jobs.132 The problem is the way the FLSA differentiates between exempt and nonexempt employees. The definition of employee is “any individual employed by an employer.”133 However, the following are not considered employees: (1) federal government workers, (2) postal service workers, (3) state government staff, (4) any worker employed by an interstate governmental agency, (5) individuals employed by a family member in the agricultural field, (6) volunteers for state agencies, and (7) humanitarian volunteers.134 In 1992 Congress amended the FLSA to exempt high-tech employees, such as computer programmers.135 Also, note that an employer may hire a minor under age fourteen, if it is in a family-owned business.136 Nonexempt employees are employees who do not fit into an exempt classification.137 For example, nonexempt employees include blue-collar workers, truck drivers, and assembly line workers.138 The Quigley, supra note 8, at 531-33. Vicki Schultz, Life’s Work, 100 COLUM. L. REV. 1881, 1892 (2000). 131 See id. at 1892-93. 132 Id. at 1893-95. 133 29 U.S.C. § 203(e)(1) (2008). 134 29 U.S.C. § 203(e)(2)-(5) (2008). 135 Crampton, Hodge & Mishra, supra note 110, at 3. 136 Joan Leotta, Fair Labor Standards Act of 1938, in ENCYCLOPEDIA OF BUSINESS (2d ed. 2007), http://www.referenceforbusiness.com/encyclopedia/Fa-For/Fair-LaborStandards-Act-of-1938-FLSA.html (last visited Aug. 25, 2009). 137 Crampton, Hodge & Mishra, supra note 110. 138 Id. at 2. 129 130 \\server05\productn\F\FLC\10-4\FLC405.txt 680 unknown Seq: 24 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 minimum wage and overtime provisions of the FLSA apply only to nonexempt employees.139 XI. EXEMPT EMPLOYEES Exempt employees are even more difficult to define.140 They are separated into four groups: executives, administrators, professionals, and outside salesmen.141 An executive employee manages and has authority over subordinate employees.142 This classification includes managers, workers who supervise at least two other employees, workers who have decision-making power to hire and fire employees, and those who mostly use independent judgment in their job duties.143 An administrative worker is a staff member who engages in administrative work, such as an office manager.144 This classification includes employees who work in offices, but do not work in manual labor.145 It also includes administrative workers in education and executive assistants.146 To be considered a professional, an employee must obtain specialized education to learn a profession.147 This classification includes original and creative artists, varied intellectual workers, computer systems workers, and teachers.148 Many computer workers do not have a higher education or have only a technical college education.149 After Congress amended the FLSA, this classification now includes computer systems analysts, computer programmers, and computer software workers.150 139 140 141 142 143 144 145 146 147 148 149 150 Id. Id. Id.; Quigley, supra note 8, at 536. Crampton, Hodge & Mishra, supra note 110, at 2. Id. Id. Id. Id. Id. Id. See id. Id. \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Williams Seq: 25 10-NOV-09 8:48 681 Outside salespeople sell goods or services at the purchasers’ place of business, not their employer’s.151 In addition, an exempt employee must be salaried and earn more than $13,000 per year, or more than $250 per week.152 Accordingly, while most white-collar employees are considered exempt, they may be deemed to be unexempt if their employer fails to show that the employee was paid on a salary basis.153 Unfortunately, the FLSA does not cover low-wage employees, such as babysitters, seasonal workers, and casual sales and retail workers.154 At the time of its enactment, the FLSA overtime pay policy mandated employers pay workers time-and-a-half for any hours worked in excess of forty-four in a given week.155 In 1939 that number changed to forty-two hours, and in 1940 it changed to forty hours.156 Employers were not allowed to average hours over more than one week when determining whether an employee is entitled to overtime compensation.157 The Act defined a week as seven consecutive twenty-four hour days.158 Employees who make more than $100,000 per year do not qualify for overtime, no matter their job duties.159 The FLSA exempted several classifications of employees from minimum-wage protection: retail, intrastate commerce salesmen, seamen, airplane employees, fishermen, agricultural workers, some journalists, transportation workers, apprentices, and handicapped employees.160 Even today, over thirteen million employees are exempt from the minimum wage requirement.161 Over two million earn less than the 151 152 153 154 Id. Id. See id. at 2-3. Quigley, supra note 8, at 536; see Crampton, Hodge & Mishra, supra note 110, at 1. Crampton, Hodge & Mishra, supra note 110, at 1. Id. 157 Id. 158 Id. 159 Resource4 FLSA Law, Executive Exceptions and FLSA Law, http://www.resource 4flsalaw.com/fairlaborstandardsactemployeeclassifications.html (last visited Aug. 25, 2009). 160 Quigley, supra note 8, at 531. 161 Id. at 535. 155 156 \\server05\productn\F\FLC\10-4\FLC405.txt 682 unknown Seq: 26 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 minimum wage.162 Minimum wage employees are not only teenagers— over seventy percent are adults, mostly women and minorities.163 The statistics are surprising: The congressionally created Minimum Wage Study Commission profiled minimum-wage workers in the early 1980s and found minimum-wage workers in all segments of the population, but disproportionately concentrated among those groups who are traditionally poor. The Commission found that eighteen percent of all working women earned minimum wages or less versus eight percent of all working men; forty-four percent of those between the ages of sixteen and nineteen earned minimum wages or less, as did thirty-eight percent of those over age sixty-five; and although whites accounted for over three-quarters of those who earned minimum wages, eighteen percent of all black workers earned minimum wages or less, while only eleven percent of all white workers did. Surprisingly, seventy percent of all minimum-wage workers were adults twenty or older, and over fifty percent were twenty-five or older. Recent studies suggest that there may be many more people earning minimum wages than official government figures suggest. The majority of these minimum-wage workers is concentrated in the retail trade and restaurant industries. Additionally, commentators have noted that the largest proportion of minimum-wage workers live in the South.164 These full-time working poor are mostly African American or Latino families.165 The prevalence of these groups working minimumwage jobs can be traced back to discrimination in education and available opportunities.166 Additionally, a higher percentage of women are Id. Id. at 537. 164 Id. at 538-39. 165 Id. at 541-42. 166 Id. at 542-43; see Jennifer M. Gardner & Diane E. Herz, Working and Poor in 1990, MONTHLY LAB. REV., Dec. 1992, at 21-22. 162 163 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 27 10-NOV-09 Williams 8:48 683 full-time employees and below the poverty level because “(1) women were more likely to head single-parent families; and (2) women supported their families on lower wages.”167 The FLSA has been amended over twenty times.168 This was mostly to amend the minimum wage, not to change the exemptions.169 The minimum wage standard has changed throughout the years: 1938$0.25, 1939-$0.30, 1945-$0.40, 1956-$1.00, 1968-$1.60, 1974-$2.00, 1979-$2.90, 1981-$3.35, 1993-$4.25, 1995-$4.75, 1997-$5.15, and 2007-$5.85.170 In raising the minimum wage to $5.85 in 2007, the federal government made provisions to raise it to $6.55 in 2008 and to $7.25 in 2009.171 However, this is not enough to guarantee a living wage for workers covered by the FLSA. The provisions regarding $250 per week and $13,000 as a salary cap should be revised to reflect inflation.172 In addition, the terms describing exempt employees (executive, administrative, professional, and outside salesmen) should be redefined.173 Now that employees are given more discretion in their job duties, they are losing FLSA benefits because they are more likely to fall into an exemption.174 XII. RECENT CHALLENGES TO THE FLSA A majority of the recent cases involving the FLSA are contentions of FLSA coverage for overtime pay. In Thorne v. All Restoration Services, Inc., an employee sued for overtime compensation.175 Under the FLSA, “an employer is required to pay overtime compensation if the Quigley, supra note 8, at 541 n.130 (citing SAR A. LEVITAN ET AL., WORKING BUT POOR: AMERICA’S CONTRADICTION 19, 21 (2d ed. 1993); Gardner & Herz, supra note 166, at 20-21). 168 Leotta, supra note 136. 169 See id. 170 Crampton, Hodge & Mishra, supra note 110; Quigley, supra note 8, at 544-46. 171 U.S. Dept. of Labor, Compliance Assistance - Fair Labor Standards Act (FLSA), http://www.dol.gov/esa/whd/flsa/index.htm (last visited Aug. 25, 2009). 172 Crampton, Hodge & Mishra, supra note 110. 173 Id. 174 See id. 175 Thorne v. All Restoration Servs., Inc., 448 F.3d 1264, 1265 (11th Cir. 2006). 167 \\server05\productn\F\FLC\10-4\FLC405.txt 684 unknown Seq: 28 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 employee can establish enterprise coverage or individual coverage.”176 For individual coverage, the employee must show “that he was: (1) engaged in commerce or (2) engaged in the production of goods for commerce.”177 The employee testified that he was eligible for individual coverage because he regularly engaged in interstate commerce by using the employer’s credit card to order supplies from other states.178 The court held that the use of the card was not sufficient to prove FLSA coverage.179 In Vaughn v. Watkins Motor Lines, Inc., two truck drivers sued their employer for denying them overtime compensation when the employer required them to work fifty hours per week.180 The court noted that “the FLSA establishes a general rule that requires an employer to compensate any employee ‘at a rate not less than one and one-half times the regular rate at which he is employed’ ” for the time worked in excess of forty hours per week.181 However, truck drivers are considered loaders who are exempt from the FLSA because the Secretary of Transportation has the power to establish qualifications and maximum hours of service for loaders.182 Thus, truck drivers who travel beyond one state are exempt from the FLSA.183 Id. at 1265-66. Id. at 1266 (“[N]o employer shall employ any of his employees who . . . is engaged in commerce or in the production of goods for commerce . . . for a workweek longer than forty hours unless such employee received compensation . . . at a rate not less than one and one-half times the regular rate . . . .” (quoting 29 U.S.C. § 207(a)(1) (2005))). 178 Id. at 1267. 179 Id. at 1267, 1269. 180 Vaughn v. Watkins Motor Lines, Inc., 291 F.3d 900, 903 (6th Cir. 2002). 181 Id. at 903-04 (citing 29 U.S.C. § 207(a)(1) (2001)). 182 Id. (explaining that the Secretary of Transportation has the authority to establish maximum hours for employees who work for private motor carriers in interstate commerce, and a loader is defined as “an employee of a private motor carrier” (citing 29 C.F.R. § 782.5(a) (2009); Troutt v. Stavola Bros., Inc., 107 F.3d 1104, 1106-07 (4th Cir. 1997); Benson v. Universal Ambulance Serv., Inc., 675 F.2d 783, 785 (6th Cir. 1982) (noting that the MCA grants this authority to the Secretary of Transportation, thereby exempting the specified employees from the FLSA’s overtime-wage provisions))). 183 See id. 176 177 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 29 10-NOV-09 Williams 8:48 685 In Alden v. Maine, employees of the State of Maine sued on the basis that their employer violated the FLSA by not paying employees extra for overtime.184 The issue before the United States Supreme Court was “the constitutionality of the provisions of the FLSA purporting to authorize private actions against States in their own courts without regard for consent.”185 The Court held: the powers delegated to Congress under Article I of the United States Constitution do not include the power to subject nonconsenting States to private suits for damages in state courts. We decide as well that the State of Maine has not consented to suits for overtime pay and liquidated damages under the FLSA. On these premises we affirm the judgment sustaining dismissal of the suit.186 In making its decision, the Court looked at the Eleventh Amendment, which provides state immunity.187 The question then, is how can a state employee receive the benefits of the FLSA? The answer is they cannot. State and federal employees are exempt from FLSA protections.188 In Freeman v. NBC, Inc., television news writers, editors, producers, and field producers sued for overtime compensation.189 The employer argued the employees were artistic professionals, and thus exempt from the overtime provisions of the FLSA.190 The court explained an employee is an artistic professional if the employee meets the following requirements: (1) the employee’s primary duty consists of the performance of work that is original and creative in character in a recognized field of artistic endeavor (as opposed to work which can be produced by a person endowed with general manual or intellectual ability and training), and 184 185 186 187 188 189 190 Alden v. Maine, 527 U.S. 706, 711 (1999). Id. at 712. Id. See id. 29 U.S.C. § 203(e)(2)(A)-(C) (2008). Freeman v. Nat’l Broad. Co., 80 F.3d 78, 80 (2d Cir. 1996). Id. \\server05\productn\F\FLC\10-4\FLC405.txt 686 unknown Seq: 30 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 the result of which depends primarily on the invention, imagination, or talent of the employee; (2) the work requires the consistent exercise of discretion and judgment in its performance; (3) the work is predominantly intellectual and varied in character (as opposed to routine mental, manual, mechanical, or physical work) and is of such a character that the output produced or the result accomplished cannot be standardized in relation to a given period of time; and (4) the employee not devote more than 20 percent of his hours worked in the workweek to activities which are not an essential part of and necessarily incident to the work described in paragraphs (a) through (c) of this section.191 In making its decision, the court noted that “the FLSA was intended, inter alia, to prohibit substandard labor conditions.”192 Accordingly, the court stated that the employees’ “relatively high salaries suggest that they are the type of employees Congress intended to exempt from FLSA coverage.”193 The court held that the employees were artistic professionals, and therefore, were exempt from the FLSA’s overtime provisions.194 XIII. MOVING TOWARD A LIVING MINIMUM WAGE The federal government has often been criticized for failing to establish a minimum wage on which someone can live under the FLSA. The term working poor refers to employees who work full-time, but still cannot afford to support themselves or a family.195 An analysis of the minimum wage shows that it is no longer sufficient. The value of the minimum wage, in real dollars, peaked in the late 1960s. That means workers today who earn Id. at 83. Id. at 86. 193 Id. at 87. 194 Id. 195 Stephanie Armour, What Recovery? Working Poor Struggle to Pay Bills, USA TODAY, June 9, 2004, at 1B, available at 2004 WLNR 6655878. 191 192 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 31 10-NOV-09 Williams 8:48 687 minimum wage have less buying power than in years before. The inflation-adjusted value of the $5.15-anhour minimum wage is at least [twenty-four percent] lower today than it was in 1979, according to the Economic Policy Institute, a non-profit Washington-based think tank. A full-time worker earning minimum wage would earn $10,712 a year, below the 2002 federal poverty line of $11,756 for a family of two.196 Most poor workers, including working welfare recipients and workers who recently left welfare, are not able to take paid leave from their jobs because their employers do not offer it.197 Feeding America is a national food bank network, consisting of more than two hundred food banks.198 The network acquires and distributes more than two billion pounds of food products every year,199 shipping the food to food pantries, soup kitchens, emergency shelters, and after-school programs.200 Feeding America assists an estimated twenty-five million low-income people annually,201 an eight percent increase from twenty-three million in 2001.202 The network provides assistance to approximately 4.5 million people in any given week.203 Food pantries have reported an increase in the number of clients who visit their emergency food program sites since 2001.204 Id. Id. 198 Feeding America, About Us, http://feedingamerica.org/about-us.aspx (last visited Aug. 25, 2009). Feeding America was formerly named America’s Second Harvest. Id. 199 Id. 200 Id. 201 RHODA COHEN ET AL., MATHEMATICA POLICY RESEARCH, INC., HUNGER IN AMERICA 2006: NATIONAL REPORT PREPARED FOR AMERICA’S SECOND HARVEST 1 (2006), available at http://www.hungerinamerica.org/export/sites/hungerinamerica/ about_the_study/A2HNationalReport.pdf. 202 MYOUNG KIM ET AL., MATHEMATICA POLICY RESEARCH, INC., HUNGER IN AMERICA 2001: NATIONAL REPORT PREPARED FOR AMERICA’S SECOND HARVEST 1 (2001), available at http://www.mathematica-mpr.com/pdfs/hunger2001.pdf. 203 COHEN ET AL., supra note 201. 204 Id. at 4. 196 197 \\server05\productn\F\FLC\10-4\FLC405.txt 688 unknown Seq: 32 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 Thirty-seven percent of all adults served by the Feeding America network have completed high school or an equivalent degree, with no education beyond high school.205 Almost thirty-two percent have to choose between paying for food and paying for medicine or medical care.206 There are some startling statistics regarding the working poor: • • • • • • • 66% of all Feeding America client households have annual household incomes at or beneath the poverty line.207 17.5% of all client households have annual incomes between 100% and 185% of the federal poverty level.208 6.2% have annual incomes of 186% of poverty or more.209 The number of people below the poverty threshold numbered 36.5 million in 2006, or 12.3% of all Americans.210 The average annual income in 2004 among client households served by the Feeding America Network was $11,210.211 36% of client households served by the Feeding America Network include at least one employed adult.212 The average monthly income of client households in 2005 was $860, or 75% of the federal poverty level. Overall, clients indicated that a job was the main Id. at 82. Id. at 134. 207 Id. at 101. 208 Id. 209 Id. at 102. 210 CARMEN DENAVAS-WALT, ET AL., U.S. CENSUS BUREAU, INCOME, POVERTY, AND HEALTH INSURANCE COVERAGE IN THE UNITED STATES: 2006, at 11 (2007), available at http://www.census.gov/prod/2007pubs/p60-233.pdf. 211 COHEN ET AL., supra note 201, at 102. 212 Id. at 86. 205 206 \\server05\productn\F\FLC\10-4\FLC405.txt 2009] unknown Seq: 33 10-NOV-09 Williams 8:48 689 source of income for their households for the previous month.213 • 46% of clients’ households do not have access to a working car.214 • Nearly half of all nonelderly, low-income families that used a food pantry in 2001 consisted of working families with children.215 Additionally, working poor families have the dilemma of choosing between food, heat, and electricity. • • • • • An estimated 35.5 million Americans are food insecure, meaning their access to enough food is limited by a lack of money and other resources.216 41.5% of all client households served by the Feeding America Network reported having to choose between buying food and paying for utilities or heat within the previous twelve months.217 35% of client households reported having to choose between paying for food and paying their rent or mortgage.218 31.6% of client households reported having to choose between paying for food and paying for medicine or medical care.219 6% of households with seniors (1.59 million households) were food insecure.220 Id. at 93, 96. Id. at 109. 215 Sheila R. Zedlewski & Sandi Nelson, Snapshots of American Families III: Many Families Turn to Food Pantries for Help, URBAN INSTITUTE, Nov. 25, 2003, available at http://www.urban.org/UploadedPDF/310895_snapshots3_no17.pdf. 216 MARK NORD, ET AL., U.S. DEP’T OF AGRIC., HOUSEHOLD FOOD SECURITY IN THE UNITED STATES, 2006 5-6 (2007), available at http://www.ers.usda.gov/publications/ err49/err49b.pdf. 217 COHEN ET AL., supra note 201, at 134. 218 Id. 219 Id. 220 NORD ET AL., supra note 216, at 10. 213 214 \\server05\productn\F\FLC\10-4\FLC405.txt 690 unknown Seq: 34 Florida Coastal Law Review 10-NOV-09 8:48 [Vol. X:657 A very high number of families have to turn to food banks to help support their need for food.221 Approximately half of food-insecure households in 2007 participated in at least one of the three major federal food assistance programs: (1) the Food Stamp Program; (2) the National School Lunch Program; and (3) the Special Supplemental Nutrition Program for Women, Infants, and Children.222 It is amazing that a nation as wealthy as the United States still has problems feedings its citizens. This is particularly disturbing when hungry families are employed and still cannot put adequate food on the table. XIV. CONCLUSION Thus, although Congress passed and amended the FLSA with the purpose of providing certain financial protections to some employees, many are slipping through the cracks. Recent case law has focused on overtime compensation; however, the above statistics show that there is a greater problem with the working poor and minimum wage in the United States. Perhaps after the minimum wage increases in 2008 and 2009, Congress and the courts will revisit the issue and more favorable statistics will be available. Id. at 27. MARK NORD, ET AL., U.S. DEP’T OF AGRIC., HOUSEHOLD FOOD SECURITY IN THE UNITED STATES, 2007, at 31 (2008), available at http://www.ers.usda.gov/ Publications/ERR66/ERR66.pdf. 221 222
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