The proposal finally passed the House on June 1938 with a vote of 291 to 91. After the proposal passed the House, the Congress sent the bill to the President Franklin Roosevelt. On June 1938, President Franklin D. Roosevelt officially signed the Fair Labor Standards Act and it became effective on October 1938. The Fair Labor Standards Act set the minimum wage at twenty-five cents per hour, and the maximum workweek at forty-four hours. It was $0.25 which is worth $4.19 in 2015 dollars (Grossman). Therefore, the federal minimum wage first became a law in the United States in 1938. In today's society, The United States Department of Labor has a control over wage and hour standards.The Department of Wage and Hour Division decides how much the federal minimum wage law is ("Wages").
There are several reasons why workers believe a low minimum wage hurts workers and the society. According to economist James Galbraith, the low minimum wage is not good for the families. Galbraith states that an increase in the minimum wage would affect 28 million people's lives in a positive way (Room). They will have more income to support their families. Another reason why workers believe that a raise in the minimum wage is that it would be helpful to get people out of debt. Market analyst and commentator Auerback states that a few dollars of a raise in the minimum wage could be helpful for families and working class people to start paying for their debts (Auerback). I could relate this reason to myself; I am a student and I have a student loan that I have to pay back after I graduate college. Of course, my family is helping me out with my financial situation at the moment, but a few dollars of a raise in the minimum wage could be helpful to me to save up more money to exit my debt. According to a report from the Pew Charitable Trusts, 8 out of 10 American citizens are in debt. The debts include student loans, house loans, and credit card debts (DiGangi).