29 U.S.C. § 251 : US Code - Section 251: Congressional findings and declaration of policy

Search 29 U.S.C. § 251 : US Code - Section 251: Congressional findings and declaration of policy

(a) The Congress finds that the Fair Labor Standards Act of 1938,
as amended [29 U.S.C. 201 et seq.], has been interpreted judicially
in disregard of long-established customs, practices, and contracts
between employers and employees, thereby creating wholly unexpected
liabilities, immense in amount and retroactive in operation, upon
employers with the results that, if said Act as so interpreted or
claims arising under such interpretations were permitted to stand,
(1) the payment of such liabilities would bring about financial
ruin of many employers and seriously impair the capital resources
of many others, thereby resulting in the reduction of industrial
operations, halting of expansion and development, curtailing
employment, and the earning power of employees; (2) the credit of
many employers would be seriously impaired; (3) there would be
created both an extended and continuous uncertainty on the part of
industry, both employer and employee, as to the financial condition
of productive establishments and a gross inequality of competitive
conditions between employers and between industries; (4) employees
would receive windfall payments, including liquidated damages, of
sums for activities performed by them without any expectation of
reward beyond that included in their agreed rates of pay; (5) there
would occur the promotion of increasing demands for payment to
employees for engaging in activities no compensation for which had
been contemplated by either the employer or employee at the time
they were engaged in; (6) voluntary collective bargaining would be
interfered with and industrial disputes between employees and
employers and between employees and employees would be created; (7)
the courts of the country would be burdened with excessive and
needless litigation and champertous practices would be encouraged;
(8) the Public Treasury would be deprived of large sums of revenues
and public finances would be seriously deranged by claims against
the Public Treasury for refunds of taxes already paid; (9) the cost
to the Government of goods and services heretofore and hereafter
purchased by its various departments and agencies would be
unreasonably increased and the Public Treasury would be seriously
affected by consequent increased cost of war contracts; and (10)
serious and adverse effects upon the revenues of Federal, State,
and local governments would occur.
The Congress further finds that all of the foregoing constitutes
a substantial burden on commerce and a substantial obstruction to
the free flow of goods in commerce.
The Congress, therefore, further finds and declares that it is in
the national public interest and for the general welfare, essential
to national defense, and necessary to aid, protect, and foster
commerce, that this chapter be enacted.
The Congress further finds that the varying and extended periods
of time for which, under the laws of the several States, potential
retroactive liability may be imposed upon employers, have given and
will give rise to great difficulties in the sound and orderly
conduct of business and industry.
The Congress further finds and declares that all of the results
which have arisen or may arise under the Fair Labor Standards Act
of 1938, as amended, as aforesaid, may (except as to liability for
liquidated damages) arise with respect to the Walsh-Healey [41
U.S.C. 35 et seq.] and Bacon-Davis (!1) Acts and that it is,
therefore, in the national public interest and for the general
welfare, essential to national defense, and necessary to aid,
protect, and foster commerce, that this chapter shall apply to the
Walsh-Healey Act and the Bacon-Davis Act. (!1)
(b) It is declared to be the policy of the Congress in order to
meet the existing emergency and to correct existing evils (1) to
relieve and protect interstate commerce from practices which burden
and obstruct it; (2) to protect the right of collective bargaining;
and (3) to define and limit the jurisdiction of the courts.