The cotton industry is the first to enact such a code, which sets a minimum weekly wage of $13 in northern states and $12 in the south, in addition to abolishing child labor. Roosevelt also pushes employers to sign the “President’s Reemployment Agreement,” a pledge to offer a $12 to $15 weekly wage for 35 to 40 hours of labor. Employers who agree get to display a badge of honor, which depicts a blue eagle with the motto, “We Do Our Part.”
1935: In Schechter Poultry Corp. v. United States, the Supreme Court strikes down the industry codes that the NIRA had enabled, including their minimum wage provisions. As a result, the minimum wage becomes a big issue in the 1936 presidential election, with the incumbent, FDR, promising a renewed push.
Supreme Court Rules in Favor of Minimum Wage in 'Big Switch'
1937: In a turnaround, the Supreme Court narrowly upholds Washington state’s minimum wage law, when Justice Owen Roberts unexpectedly sides with the court’s four-member liberal minority. The case, West Coast Hotel Co. v. Parrish, involved a former chambermaid who sued a hotel for $216.19 in back wages that she said she was owed under the law. The “big switch,” as it’s called by historians, reverses the judicial trend and establishes that minimum wage laws don’t violate the Constitution.
1938: After a legislative struggle, Congress passes the Fair Labor Standards Act, which establishes a federal minimum wage of 25 cents per hour, and the bill is signed into law by President Roosevelt. Originally, the legislation had called for a 40-cent-per-hour wage, but it was scaled back to win the support of members of Congress from southern states.
Even in the law’s compromise form, it represented a major philosophical shift, according to John Revitte, a professor of Work, Leisure and Labor Studies at Michigan State University. “America had a long tradition in which issues between the employer and the employee were their concern,” he explains. “The New Deal was saying, these are also the concerns of the government.”
Federal Minimum Wage Is Increased, Expanded