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29 CFR 541 - May 24, 1937 to June 25, 1938: Evolution of the exemption during passage of the FLSA

VLibrary.info Logo   May 24, 1937: The Fair Labor Standards Act of 1937 was introduced in the Senate as S. 2475, and in the House of Represntatives as H. R 7200

As introduced, the bill did not include an exemption for executive, administrtive, and professional employees. Instead, in Section 2 - "Definitions" - it was specified that "(7) "Employee" includes any individual employed and any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute or because of any unlawful discharge, and who has not obtained any other regular and substantially equivalent employment, but shall not include any person employed in an executive, administrative, supervisory, or professional capacity or as an agricultural laborer as such terms are defined and delimited by regulations of the Board." (NOTE: Underline added) (See page 4 of S. 2475 and H. R 7200).

VLibrary.info Logo   June 14, 1938: The House of Representatives approved the Fair Labor Standards Act of 1938 by a vote of 291 to 89, [CR, Volume 83, Part 8, page 9266], and the Senate approved the bill on a voice vote. [CR, Volume 83, Part 8, page 9266]

The language of the exemption read: "Sec. 13. (a) The provisions of sections 6 and 7 shall not apply with respect to (1) any employee employed in a bona fide executive, administrative, professional, or local retailing capacity, or in the capacity of outside salesman (as such terms are defined and delimited by regulations of the Administrator);" (NOTE: Underline added)

VLibrary.info Logo   July 29, 1937: Senator Sytles Bridge (R-NH), introduced an amendment that included the langauge SEC. 6. (a) This act shall not apply to agricultural laborers as defined by the Department of Agriculture, nor to executive, administrative, and professional employees. [See Congressional Record, Volume 81, Part 7, page 7791] [NOTE: Underlining added.]

VLibrary.info Logo   July 31, 1937: Senator Francis Maloney (D-CT), offered an amendment which provided that officers, executives, and superintendents, and their personal and immediate clerical assistants were exempt from the minimum wage and maximum hours provisions. [See Congressional Record, Volume 81, Part 7, page 7802]

VLibrary.info Logo   July 31, 1937: The Senate aproved the Fair Labor Standards Act of 1937 by a vote of 56 to 28. [See CR 75, Volume 81, Part 7, page 7957]

VLibrary.info Logo   December 14, 1937: Representative Mary Norton (D-NJ), introduced an amendment that included the language SEC. 2. (7) 'Employee' includes any individual employed or suffered or permitted to work by an employer, but shall not include any person employed in a bona fide executive, administrative, professional, or local retailing capacity, or any person employed in the capacity of outside salesman (as such terms are defined and delimited by regulations of the Administrator). [See Congressional Record, Volume 82, Part 2, page 1511] [NOTE: Underlining added.]

VLibrary.info Logo   Late January, 1938: "Reworking the bill: In the meantime, Department of Labor lawyers worked on a new bill. Privately, Roosevelt had told Perkins that the length and complexity of the bill caused some of its difficulties. "Can't it be boiled down to two pages?" he asked. Lawyers trying to simplify the bill faced the problem that, although legal language makes legislation difficult to understand, bills written in simple English are often difficult for the courts to enforce. And because the wage-hour, child-labor bill had been drafted with the Supreme Court in mind, Solicitor of Labor Gerard Reilly could not meet the President's two-page goal; however, he succeeded in cutting the bill from 40 to 10 pages. In late January 1938, Reilly and Perkins brought the revision to President Roosevelt. He approved it, and the new bill went to Congress.34" (FOOTNOTE 34: The Roosevelt I knew, by Frances Perkins. New York : Penguin Books, 2011. Page 261.)

(Fair Labor Standards Act of 1938: Maximum Struggle for a Minimum Wage, By Jonathan Grossman.)

VLibrary.info Logo The AF of L finally stated the form of a bill it would stand for. Congressman Griswold of Indiana drafted a bill which was said to have originated in the AF of L Council. This simply established a forty-hour work-week and a forty-cent minimum wage in all industries. It omitted provisions for administrative investigation. The only method of enforcement was a section which made violations a criminal offense and left action to the courts.]

(The Roosevelt I knew, Frances Perkins ; introduction by Adam Cohen. New York : Penguin Books, 2011. Page 250. )

VLibrary.info Logo March 1, 1938: On March 1, 1938, Mrs. Norton appointed a subcommittee of the House Labor Committee, composed of seven members, with Representative Robert Ramspeck of Georgia as chairman. Numerous people conferred with him, and he made heroic efforts to formulate a practical piece of legislation. Some modifications were made in the abbreviated draft which the President had approved. This draft contemplated the establishment of wage boards empowered to fix wages and hours so that gradually an ultimate goal of forty cents an hour and a forty-hour week could be reached. It contained provisions for studies of particular industries with opportunities for hearing and appeal. It seemed to me that the bill contained the bare essentials the administration could support.

(The Roosevelt I knew, Frances Perkins ; introduction by Adam Cohen. New York : Penguin Books, 2011. Page 250. )

VLibrary.info Logo This proposal, however, was opposed by the AF of L. The National Association of Manufaturers also opposed the bill, and for the first time in years Congress was treated to the spectacle of the AF of L and the NAM fighting cordially on the same side. The CIO came out in favor of the Ramspeck bill, but its support tended to alienate Southern Democrats, as they were afraid of further CIO organizing campaigns in the South. A canvass of the House reveled that there were not enough votes to carry the Ramspeck bill.

(The Roosevelt I knew, Frances Perkins ; introduction by Adam Cohen. New York : Penguin Books, 2011. Pages 250-251. )

VLibrary.info Logo   April 21, 1938: Representtive Norton reported to the House of Representatives that "…your Committee on Labor has favorably reported Senate 2475, with an amendment. The bill and report will be available in the document room tomorrow morning for the Members who care to see them." [CR75 Vol. 83, Part 5, page 5676]

VLibrary.info Logo   "Norton appointed Representative Robert Ramspeck of Georgia to head a subcommittee to bridge the gap between various proposals. The subcommittee's efforts resulted in the Ramspeck compromise which Perkins felt "contained the bare essentials she could support.35" (FOOTNOTE 35: The Public Papers and Addresses of Franklin D. Roosevelt, VII (Aug. 16, 1938), pp. 488-89; Perkins, Roosevelt, pp. 262-63.)

VLibrary.info Logo May 24, 1938:  The rewritten bill still did not include an exemption from minimum wage and maximum hours for executive, administrative, and professional employees. Instead, it specified in Section 2 - "Definitions" - that "(7) "Employee" includes any individual employed or suffered or permitted to work by an employer, but shall not include any person employed in a bona fide executive, administrative, professional, or local retailing capacity as outside salesman (as such terms are defined and delimited by regulations of the Board)…" (NOTE: Underline added) [CR 75, Volume 83, Part 7, page 7374]

VLibrary.info Logo May 24, 1938: The House of Representatives debated an amended version of S. 2475 which included the following language under Definitions, Section 2(a)(7) "Employee includes any individual employed or suffered or permitted to work by an employer, but shall not include any person employed in a bona fide executive, administrative, professional, or local retailing capacity as outside salesman (as such terms are defined and delimited by regulations of the Board)" (NOTE: Underlining added.) [CR 75,Volume 83, Part 7, page 7374]

Mrs. Norton decided to present a bill along the lines of the one offered by the AF of L. Her bill set an absolute floor to wages with virtually no procedure for investigation or adjustment of the needs of particular industries. It provided that pay for the first year would be not less than twenty-five cents an hour, with an increase of five cents an hour every year thereafter until a rate of forty cents an hour was reached. It set a maximum work-week of forty-four hours for the first year, with a reduction of two hours each subsequent year until a forty-hour work-week was achieved. This bill was reported favorably by a vote of 14 to 4, while the recommendations of the Ramspeck subcommittee were rejected, 10 to 8. It was reported to the House on April 21. The Rules Committee, by a vote of 8 to 6, again refused to report a resolution enabling the House to consider the measure. This again necessitated resort to a discharge petition

VLibrary.info Logo June 13, 1938: When the House of Representatives approved the Fair Labor Standards Act by a vote of 291 to 89, it included "Sec. 13. (a) The provisions of sections 6 and 7 shall not apply with respect to (1) any employee employed in a bona fide executive, administrative, professional, or local retailing capacity, or in the capacity of outside salesman (as such terms are defined and delimited by regulations of the Administrator);" (NOTE: Underlining added.) [Volume 83, Part 7, page 7374]

VLibrary.info Logo June 25, 1938: President Roosevelt signed the Fair Labor Standards Act.

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VLibrary.info Logo       RESOURCES

The Fair Labor Standards Act: A Historical Sketch of the Overtime Pay Requirements of Section 13(a)(1). By William G. Whittaker, Specialist in Labor Economics. Domestic Social Policy Division, Congressional Research Service. RL32088. August 28, 2007. This report is available through the Congressional Research Service site at: "Search CRSReports" at https://crsreports.congress.gov/.

The Fair Labor Standards Act: Exemption of “Executive, Administrative and Professional” Employees Under Section 13(a)(1), July 17, 2003. RL31995. This report is available through the Congressional Research Service site at: "Search CRS Reports" at https://crsreports.congress.gov/.