Gemsco, Inc. v. Walling, Administrator of the Wage and Hour Division, US Department of Labor, 324 U.S. 244 (1945) (the “homework” case)
Facts: Embroidery company petitioned court to have a wage order prohibiting home piece work set aside.
Case History: Administrator imposed ban on “homework” because he could not otherwise enforce the minimum wage rate effectively.
Holding and Disposition: Held, Administrator has the authority to ban “homework” where sufficient reason may be demonstrated for the need. Court affirmed the decision of the Administrator
Reasoning: Court found that to do other than affirm the judgment of the Administrator in this context would “nullify…[his] power to establish or maintain minimum wages.”
Significance and Key Points: ”Homework” may be prohibited on the grounds that Administrator may make decisions needed to maintain effective control over the minimum wage provisions and to prevent “hidden child labor at substandard wages.”
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