Nations across the globe strive to eradicate child labor and to improve the working conditions of contemporary workplaces to accommodate the needs of employees. However, these issues are still prevalent in most communities and have adversely affected children, employees, and economies in several unprecedented ways. Child labor has abated the quality of life among youngsters, decreased their academic achievement, and deterred them from acquiring the knowledge and skills they require to contribute to their nations, meaningfully. Conversely, the provision of relatively low wages has inhibited low-income families from breaking free from the vicious cycle of poverty and hampered economic growth. Even though the Fair Labor Standards Act (FLSA) has proven productive in combat child labor and ensuring employees receive minimum wages, scholars have raised significant concerns regarding its contribution to the increased rate of unemployment among the youth and the decline in people’s income.
President Franklin D. Roosevelt executed the Fair Labor Standards Act in 1938 to protect employees and independent constructors from unduly low wages. Before its implementation, employees, particularly those with a poor educational background, received $1 or less for a day’s work ( Hill & Romich, 2018 ). After the law’s enactment on 25 th June 1938, the U.S employment culture changed, and the working conditions in different industries improved significantly ( Hill & Romich, 2018 ). Hill and Romich (2018 ) suggest that employees started to receive a minimum wage of $ 7.25 per hour, which was relatively higher than their initial pays. Aside from this, FLSA also led to a dramatic increase in people’s disposable income, upgrading the statuses of most families from low-income to middle-income ( Hill & Romich, 2018 ). FLSA was, therefore, enforced to ensure workers received fair wages for their labor.
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Another core reason for the implementation of this act was to prevent and combat child labor. Thévenon and Edmonds (2019) suggest that before 1938, this was a national concern because a significant share of youngsters, some as young as five-years-old, worked in plantation firms and coal mines for more than 12 hours a day. The increase in the number of underage children working for different sectors resulted in a dramatic decline in school attendance ( Thévenon & Edmonds, 2019 ). The rates of unemployment also rose due to massive numbers of illiterate older youths without the discipline, knowledge, and skills required to work in emerging industries ( Thévenon & Edmonds, 2019 ). Furthermore, there was a significant surge in the rates in injuries and deaths of children due to harsh working conditions that considerably abated the quality of life among this population segment ( Thévenon & Edmonds, 2019 ). According to Thévenon and Edmonds (2019 ), the U.S congress implemented FLSA to combat child labor that exposed youngsters to precarious working conditions and deterred them from attending school. The new law allowed children, regardless of their ages, to work in organizations owned by their parents and caregivers ( Thévenon & Edmonds, 2019 ). It also prohibited those under 16 years old to work in mining and manufacturing companies or sites and allowed individuals aged 17 years old to work for a specified number of hours in occupations deemed safe by the secretary of labor ( Thévenon & Edmonds, 2019 ). Thus, Congress, under the leadership of President Roosevelt, enforced FLSA to stop child labor.
Pay inequalities would be more pronounced and pervasive in the U.S. society, and children’s quality of life would depreciate considerably in the absence of FLSA. Without such a law, malicious individuals who prioritize wealth more than the well-being of youngsters would employ underage children and expose them to inhumane working conditions and strenuous activities that can adversely affect their physical and psychological health ( Thévenon & Edmonds, 2019 ). Children would become the primary source of cheap labor because they have fewer needs compared to adults, and can therefore be exploited and convinced to perform a range of tasks at a significantly lower price compared to other employees ( Thévenon & Edmonds, 2019 ). T hévenon and Edmonds (2019 ) also argue that without this law, children would also be exposed to harsh environments and various traumatic events that would increase their chances of contracting various psychological disorders such as PTSD, depression, and anxiety that impair cognitive function. Additionally, employees would still offer their services at a throw-away price to employers if Congress failed to implement FLSA. Individuals struggling to cater to the basic needs of their families would work tirelessly for more than 40 hours weekly without additional pay ( Hill & Romich, 2018 ). Hill and Romich (2018 ) also suggest that people would receive varied wages depending on their relationships with employers. Hence, child labor would become more prevalent, and employees would receive unduly low wages inconsistent with the tasks assigned in the absence of FLSA.
The current federal minimum wage rate is unacceptable due to its adverse impacts on youth employment. Kalenkoski (2016) suggest that even though individuals perceive the minimum wage as an effective strategy of breaking the vicious cycle of poverty, the effects of this policy are highly contradictory because they diminish employment opportunities and exacerbate the issue of unemployment, especially among highly skilled youth. Kalenkoski (2016) argues that a slight increase of even 10% in the minimum wage rate results in more than a 1.5% drop in the rates of youth employment. Kalenkoski (2016) suggests that since the implementation of FLSA, many employers have become less inclined to employ the youth who account for the largest share of the unemployed. Instead, they prefer to automate and outsource tasks because these approaches are less costly than hiring workers for a minimum wage rate. According to Kalenkoski (2016), the imposition of the minimum wage policy has also compelled organizations to increase the costs of products and services to maximize their profits. The situation has abated the annual revenue obtained by firms and deterred them from hiring new employees due to the reimbursement challenges that would arise (Kalenkoski, 2016). The minimum wage rate is, therefore, unacceptable because it has surged the rates of unemployment among the youth.
Another primary reason for the ineffectiveness and unacceptability of the minimum wage rate is its adverse effect on income. The policy has decreased on-the-job training opportunities that equip individuals with advanced knowledge and skills needed to perform exceptionally and obtain higher payments. Kalenkoski (2016) suggests that during the initial stages of employment, workers receive regular on-the-job-training and meager salaries because they handle fewer tasks and are less productive due to the time they spend in training. However, employers often increase the incomes of their staff after training, as a reward for improved performance and productivity. Kalenkoski (2016) argues that the minimum wage rate directly impacts people’s income because it makes employers less inclined to invest in employee training, denying the latter an opportunity to access higher wages later in life. Thus, the minimum wage policy is highly unacceptable because it diminishes people’s chances of receiving higher incomes in the future.
FLSA has played a pivotal role in curbing child labor and improving the U.S employment culture despite the concerns raised regarding its impact on unemployment and income. FLSA has led to safer working environments and more effective working conditions. It has also helped in combating child labor and safeguarding children from malicious employers and hazardous environments that can inflict physical and mental harm on them. The situation would be worse in the absence of the policy. However, there is a need for further research to determine the harmful effects of this policy on employment and income.
References
Hill, H. D., & Romich, J. (2018). How will higher minimum wages affect family life and children's well‐being? Child Development Perspectives , 12 (2), 109-114.
Kalenkoski, C. M. (2016). The effects of minimum wages on youth employment and income. IZA World of Labor .
Thévenon, O., & Edmonds, E. (2019). Child labor: Causes, consequences, and policies to tackle it. OECD Social, Employment, and Migration Working Papers .
