1.3 New Deal labor legislation

New Deal labor laws, enacted during the Great Depression, aimed to protect workers' rights and improve working conditions. These laws, including the National Labor Relations Act and Fair Labor Standards Act, established minimum standards for wages and hours and promoted collective bargaining.

The legislation significantly impacted employer-employee relationships, laying the foundation for modern labor law. Key provisions included protecting workers' right to organize, establishing the National Labor Relations Board, setting minimum wage and overtime requirements, and creating social insurance programs like unemployment and Social Security.

New Deal labor laws

• Enacted during the Great Depression under President Franklin D. Roosevelt's administration to address labor issues and improve working conditions
• Aimed to protect workers' rights, establish minimum standards for wages and hours, and promote collective bargaining
• Significantly impacted the relationship between employers and employees and laid the foundation for modern labor law in the United States

National Labor Relations Act (NLRA)

• Also known as the Wagner Act, signed into law in 1935 to protect the rights of workers to organize and engage in collective bargaining
• Established the National Labor Relations Board (NLRB) to enforce the provisions of the act and investigate and remedy unfair labor practices
• Prohibited employers from interfering with, restraining, or coercing employees in the exercise of their rights to form, join, or assist labor organizations

Employee rights under NLRA

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• Guarantees employees the right to self-organization, to form, join, or assist labor organizations
• Protects employees' right to bargain collectively through representatives of their own choosing
• Allows employees to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection

Unfair labor practices

• Defines and prohibits unfair labor practices by employers, such as interfering with employees' rights to organize or discriminating against employees for engaging in union activities
• Prohibits unfair labor practices by unions, such as restraining or coercing employees in the exercise of their rights or causing an employer to discriminate against an employee
• Requires employers and unions to bargain in good faith with respect to wages, hours, and other terms and conditions of employment

Role of National Labor Relations Board (NLRB)

• Independent federal agency responsible for enforcing the NLRA and investigating and remedying unfair labor practices
• Conducts elections to determine whether employees want to be represented by a union and certifies unions as the exclusive bargaining representative of employees
• Issues decisions and orders in cases involving unfair labor practices and interprets the provisions of the NLRA

Fair Labor Standards Act (FLSA)

• Federal law enacted in 1938 that establishes minimum wage, overtime pay, and child labor standards for covered employees
• Applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce
• Administered and enforced by the Wage and Hour Division of the U.S. Department of Labor

Minimum wage provisions

• Establishes a federal minimum wage that employers must pay covered employees for each hour worked
• Allows for higher state or local minimum wages, in which case the higher standard applies
• Provides for periodic increases in the minimum wage to account for inflation and changes in the cost of living

Overtime pay requirements

• Requires employers to pay covered employees overtime pay at a rate of not less than one and one-half times their regular rate of pay for hours worked over 40 in a workweek
• Exempts certain employees, such as executive, administrative, professional, and outside sales employees, from overtime pay requirements
• Allows for alternative overtime arrangements in certain industries, such as healthcare and public safety

Child labor restrictions

• Prohibits the employment of minors under the age of 14 in most non-agricultural occupations
• Limits the hours and types of work that minors under the age of 16 can perform
• Requires employers to obtain proof of age for minors and maintain records of their employment

Social Security Act

• Landmark legislation enacted in 1935 that established a system of social insurance programs to provide financial security for the elderly, unemployed, and disabled
• Funded through payroll taxes paid by employees and employers and administered by the Social Security Administration
• Provides benefits to eligible individuals based on their work history and contributions to the system

Unemployment insurance

• Provides temporary financial assistance to eligible workers who become unemployed through no fault of their own
• Administered by individual states within guidelines established by federal law
• Funded through payroll taxes paid by employers and used to pay benefits to eligible claimants

Old-age benefits

• Provides monthly cash benefits to retired workers who have paid into the Social Security system during their working years
• Benefit amount is based on the worker's average earnings over their career and the age at which they retire
• Also provides benefits to the spouses, children, and survivors of retired, disabled, or deceased workers

Disability insurance

• Provides monthly cash benefits to workers who become disabled and unable to work before reaching retirement age
• Eligibility is based on the worker's disability status and work history
• Provides benefits to the worker and their eligible family members

National Industrial Recovery Act (NIRA)

• Enacted in 1933 as part of the New Deal to promote economic recovery and reform during the Great Depression
• Established codes of fair competition for industries, including minimum wages, maximum hours, and the right of workers to organize and bargain collectively
• Created the National Recovery Administration (NRA) to oversee the implementation and enforcement of the codes

Impact on collective bargaining

• Encouraged the formation of unions and collective bargaining by protecting workers' right to organize and prohibiting unfair labor practices by employers
• Led to a significant increase in union membership and the negotiation of collective bargaining agreements in various industries
• Contributed to the growth of the labor movement and the establishment of industry-wide labor standards

Supreme Court ruling on NIRA

• In 1935, the Supreme Court ruled in Schechter Poultry Corp. v. United States that the NIRA was unconstitutional
• The Court found that the NIRA violated the separation of powers by delegating legislative authority to the executive branch and exceeded the federal government's power to regulate interstate commerce
• The decision led to the invalidation of the NIRA and the codes of fair competition, but other New Deal labor laws, such as the NLRA and the FLSA, remained in effect

Wagner Act vs Taft-Hartley Act

• The Wagner Act (NLRA) and the Taft-Hartley Act represent two significant pieces of labor legislation with differing impacts on the rights of workers and unions
• The Wagner Act, passed in 1935, expanded labor rights and protected workers' right to organize and bargain collectively, while the Taft-Hartley Act, passed in 1947, placed limitations on unions and amended some provisions of the NLRA

Expansion of labor rights under Wagner Act

• Protected workers' right to organize and engage in collective bargaining without interference or discrimination from employers
• Established the National Labor Relations Board (NLRB) to enforce the provisions of the act and investigate and remedy unfair labor practices
• Prohibited employers from engaging in unfair labor practices, such as interfering with employees' rights to organize or discriminating against employees for engaging in union activities

Limitations on unions under Taft-Hartley Act

• Prohibited unions from engaging in certain unfair labor practices, such as secondary boycotts and jurisdictional strikes
• Allowed states to pass "right-to-work" laws, which prohibit agreements that require employees to join a union or pay union dues as a condition of employment
• Required union officers to file affidavits stating that they were not members of the Communist Party and imposed other restrictions on union activities

Legacy of New Deal labor legislation

• The New Deal labor laws, such as the NLRA, FLSA, and Social Security Act, have had a lasting impact on labor relations and workers' rights in the United States
• These laws established minimum standards for wages, hours, and working conditions, protected workers' right to organize and bargain collectively, and provided a social safety net for the elderly, unemployed, and disabled

Influence on modern labor law

• Many of the core provisions of the New Deal labor laws remain in effect today and continue to shape labor relations and employment practices
• Subsequent legislation, such as the Civil Rights Act of 1964 and the Occupational Safety and Health Act of 1970, built upon the foundation of the New Deal labor laws to provide additional protections for workers
• The NLRB continues to enforce the provisions of the NLRA and investigate and remedy unfair labor practices

Criticisms and controversies

• Critics argue that some New Deal labor laws, such as the FLSA, have not kept pace with inflation and changes in the cost of living, leading to a decline in the real value of the minimum wage
• The Taft-Hartley Act's limitations on unions and the rise of "right-to-work" laws in some states have been criticized by labor advocates as weakening the power of unions and collective bargaining
• Debates continue over the appropriate balance between workers' rights and the interests of businesses and the economy

Amendments and updates to New Deal laws

• The FLSA has been amended several times to increase the minimum wage, expand coverage to additional employees, and address other issues related to wages and working conditions
• The Social Security Act has been amended to expand benefits, adjust financing, and make other changes to ensure the long-term solvency and sustainability of the program
• Efforts to amend or reform the NLRA and other New Deal labor laws continue to be a topic of debate among policymakers, labor advocates, and business groups