Labor Standards

    Over the course of the century, both state and federal governments have increasingly intervened in the relationship between employer and employee. This government regulation is aimed primarily at protecting workers from financial hardship and bodily harm, preventing abusive practices, and maximizing employment. Most of the legislation in force today grew out of President Roosevelt's efforts to cope with the devastation of the Great Depression of the 193Os. While some states recognized the existence of labor problems at an earlier date, the Depression effectively demonstrated just how outside forces could overwhelm even the best prepared and most responsible of families. Government intervention seemed an appropriate solution to many of the problems.

      The Fair Labor Standards Act established the basic labor standards that we take for granted today: the minimum wage, overtime pay for more than a 40-hour week, a minimum age for workers, and-in a later amendment-equal pay for the two sexes. This law has been supplemented by state minimum wage laws.

      The workers compensation system is a network of state statutes that pays for the medical expenses of workers injured on the job and partially replaces their lost wages. It is a no-fault system heavily influenced by insurance concepts that offers more universal and more efficient compensation than the common law tort system. The federal government's role has been limited to extending coverage to some special categories of workers and to exerting pressure on states to expand their benefits.

      Despite attempts to broaden its coverage, workers compensation has failed to cope adequately with occupational illness. There is as yet no effective system in place to help workers who develop illnesses after prolonged exposure to toxic substances on the job. The federal government has so far intervened only on behalf of coal miners suffering from black-lung disease, but the crisis with as bestos-related disease may prompt Congress to take more comprehensive action.

      A combined system of welfare, social security, and private pensions is designed to provide an adequate income to retirees and their dependents Federal programs and policies guarantee minimal subsistence for the elderly in need mandate individual contributions to social security retirement funds, and encourage both company pensions and individual savings for retirement. Social Security benefits, while nearly universal, are relatively low. The government's goal is not to provide full support for retired workers, but to supplement private sources of retirement income.

      Unemployment compensation is a joint state and federal program which partially replaces a worker's earnings during temporary periods of unemployment It provides a fallback for employees who lose their jobs involuntarily.

      The most recent legislation on labor standards is the Occupational Safety and Health Act. This program tries to prevent injuries and occupational illness by promulgating and enforcing health and safety standards for the workplace. Employers are policed by a regular inspection program, backed up with fines for violations. OSHA's aims, while laudable, have proven difficult to implement. Business has criticized both the costs and the effectiveness of the program.