What did the FLSA and the New Deal do for workers?

Learn how the Fair Labor Standards Act (FLSA) and the New Deal transformed American labor protections by establishing minimum wage laws, regulating work hours, and banning child labor, leaving a lasting impact on the modern workforce.

Author

Luna Rose
May 07, 2025

Introduction

The Fair Labor Standards Act (FLSA) and the broader New Deal policies were among the most transformative labor reforms in American history. These legislative efforts fundamentally changed the workplace by establishing critical worker protections, including minimum wages, maximum work hours, and child labor restrictions. This post explores the historical context, major provisions, and lasting impact of these reforms on American workers.

The Great Depression and the Need for Labor Reforms

The early 20th century saw rapid industrialization, but it came at a steep cost: harsh working conditions, long hours, and meager wages were widespread. The Great Depression, beginning in 1929, exacerbated these problems, leading to mass unemployment and deepening economic inequality.

As unemployment soared and wages plummeted, labor strikes and social unrest became increasingly common. President Franklin D. Roosevelt (FDR) recognized that economic recovery required sweeping financial reforms and labor protections to secure fair wages and job stability. This recognition led to the introduction of the New Deal—a series of programs, public works projects, and regulations designed to stabilize the economy and protect workers' rights.

The New Deal's Impact on Workers

The New Deal (1933–1939) introduced a comprehensive economic recovery strategy that dramatically reshaped labor rights in America. Key programs and legislation included:

1. National Industrial Recovery Act (NIRA) – 1933

The National Industrial Recovery Act sought to stabilize industries by allowing businesses to create codes of fair competition. These codes set minimum wages, maximum work hours, and encouraged collective bargaining. However, the Supreme Court declared NIRA unconstitutional in 1935 (Schechter Poultry Corp. v. United States), which paved the way for more enduring labor laws.

2. The Wagner Act (National Labor Relations Act) – 1935

The Wagner Act guaranteed workers' rights to unionize and collectively bargain. It also established the National Labor Relations Board (NLRB) to mediate disputes and prevent unfair labor practices by employers. The law significantly strengthened organized labor and expanded workers’ bargaining power.

3. Social Security Act – 1935

The Social Security Act created unemployment insurance, disability benefits, and retirement pensions, providing a critical safety net for American workers. It marked a major shift toward government-supported economic security.

4. Fair Labor Standards Act (FLSA) – 1938

Perhaps the most enduring labor protection from the New Deal era, the Fair Labor Standards Act (FLSA) introduced landmark worker protections that remain influential today, including:

  • Minimum Wage: Established a federal wage floor to ensure fair compensation.

  • Maximum Work Hours: Set the standard 40-hour workweek with overtime pay protections.

  • Child Labor Restrictions: Prohibited exploitative child labor practices.

The Fair Labor Standards Act: A Game Changer for Workers

Signed into law by FDR on June 25, 1938, the FLSA revolutionized the American workplace. Here’s how it transformed labor protections:

Establishing the Minimum Wage

Before the FLSA, many workers earned wages insufficient for basic living standards. The initial federal minimum wage was set at $0.25 per hour—equivalent to about $5.00 today when adjusted for inflation. The minimum wage has been periodically increased to help keep up with cost-of-living changes.

The 40-Hour Workweek and Overtime Pay

Prior to the FLSA, many employees endured punishing 60- to 80-hour workweeks. The FLSA established a standard 40-hour workweek and mandated overtime pay (1.5 times the hourly rate) for additional hours worked, improving work-life balance and creating more employment opportunities.

Eradicating Child Labor

Child labor was widespread in industries like textiles and mining, where children worked long hours in dangerous environments. The FLSA set minimum age requirements for employment and prohibited hazardous work for minors, helping to shift children from factories to classrooms.

The Long-Term Effects of the New Deal and FLSA

Strengthening Workers' Rights

The New Deal reforms and the FLSA created a legal framework for workers to demand fair pay, reasonable hours, and safe conditions, laying the foundation for modern labor unions and collective bargaining.

Reducing Economic Inequality

Minimum wage standards and fair labor practices helped reduce income inequality and improved living standards for millions of Americans. The idea of a livable wage became central to future labor policy discussions.

Boosting Economic Growth

By increasing workers' purchasing power, the New Deal reforms stimulated demand for goods and services. Consumer spending became a vital engine for pulling the U.S. out of the Great Depression.

Influencing Future Labor Laws

The success of the New Deal and the FLSA inspired major future labor protections, including:

  • Equal Pay Act (1963): Mandated equal pay for equal work, regardless of gender.

  • Occupational Safety and Health Act (OSHA) (1970): Established workplace safety standards.

  • Family and Medical Leave Act (FMLA) (1993): Provided unpaid leave for family and medical reasons.

Challenges and Criticisms of the FLSA and New Deal Labor Policies

Despite their successes, these reforms faced criticism and limitations:

  • Business Resistance: Many businesses initially opposed wage and hour regulations, claiming they would increase operational costs and harm growth.

  • Worker Exclusions: Agricultural and domestic workers were originally excluded from FLSA protections, disproportionately affecting Black and immigrant laborers.

  • Minimum Wage Stagnation: Although groundbreaking, the minimum wage has not always kept pace with inflation, sparking ongoing debates over wage increases.

Conclusion: A Lasting Legacy

The Fair Labor Standards Act and New Deal labor policies fundamentally reshaped American work life by securing fair wages, humane working hours, and protecting children from exploitative labor. These reforms improved the lives of millions and laid the foundation for the modern workers' rights movement.

As today’s economy evolves—through gig work, remote employment, and automation—the principles behind the New Deal and the FLSA remain as important as ever. Modern labor discussions, from raising the minimum wage to expanding protections for gig workers, continue to draw on the legacy of these landmark reforms.
The New Deal and the FLSA proved that government intervention can play a critical role in creating a fairer and more equitable labor market.

Works Cited