Caseflicks

Supreme Court of the United States • 1937

West Coast Hotel Co. v. Parrish

300 U.S. 379 | 57 S. Ct. 578 | 81 L. Ed. 703 | 1937 U.S. LEXIS 1119 | 8 Ohio Op. 89 | 108 A.L.R. 1330

Full access

Unlock the video and quiz

The written brief is free to read below. Subscribe to watch the video explainer and take the quiz.

Takeaway

In short, this case ended the Lochner-era constitutional protection for freedom of contract by holding that states may set reasonable minimum wages to protect workers and the public welfare.

Background

Washington’s minimum-wage law authorized a state commission to set mandatory minimum wages for women and minors. The statute declared that wages inadequate for women’s maintenance harmed their health and morals, and it directed the commission to establish wages sufficient for their decent maintenance. After investigation, public hearings, and a conference involving employers, employees, and public representatives, the commission set a minimum of $14.50 for a 48-hour week. It also allowed subminimum licenses for apprentices and workers unable to provide full service.

Elsie Parrish worked as a chambermaid for the West Coast Hotel Company. She and her husband sued to recover the difference between the wages she had received and the statutory minimum. The trial court ruled against the Parrishes, but the Washington Supreme Court reversed, upheld the statute as a reasonable use of the State’s police power, and ordered judgment for them. The hotel appealed, relying principally on Adkins v. Children’s Hospital, which had invalidated a comparable minimum-wage law under the Due Process Clause.

Issues

Issue #1

Whether the Court should reconsider and overrule Adkins v. Children’s Hospital, which had held a comparable minimum-wage law unconstitutional.

Holding

Yes. Adkins was wrongly decided and is overruled.

Reasoning

The Court concluded that Adkins was squarely implicated because the Washington law, like the District of Columbia law in Adkins, regulated the minimum wages of adult women. The case could not honestly be resolved through a distinction based on the hotel setting, because Adkins itself involved a woman employed by a hotel.

Reconsideration was proper even though Morehead v. New York ex rel. Tipaldo had recently followed Adkins. In Morehead, the petitioner had sought only to distinguish Adkins and had not asked the Court to reconsider its constitutional rule. Here, by contrast, the Washington Supreme Court had sustained the statute and rejected Adkins as controlling, directly presenting the validity of Adkins for reexamination.

The Court regarded fresh consideration as imperative because Adkins had been decided by a closely divided Court, many states had enacted similar protective laws, and severe economic conditions had highlighted the practical effects of inadequate wages. The Court found that Adkins departed from the established principles permitting reasonable state regulation of the employment relationship.

Issue #2

Whether Washington’s minimum wage for women violates the liberty protected by the Due Process Clause of the Fourteenth Amendment.

Holding

No. The minimum-wage law is a reasonable exercise of Washington’s police power and does not deprive employers or employees of liberty without due process of law.

Reasoning

The Constitution protects liberty, not an absolute and unregulated “freedom of contract.” Liberty exists within a social order and remains subject to reasonable restraints adopted to protect the health, safety, morals, and welfare of the community. Due process is satisfied when regulation reasonably relates to a proper public purpose and is not arbitrary or discriminatory.

The Court’s precedents had long permitted substantial regulation of employment contracts, including limits on working hours, restrictions on unsafe work, wage-payment rules, and workers’ compensation systems. These cases recognized that employers and workers often do not bargain on equal terms and that the State may protect workers from oppression even when they are legally competent adults.

The distinction drawn in Adkins between maximum-hours laws and minimum-wage laws was unpersuasive. Both types of laws alter the terms of an employment bargain: hours and wages are equally central parts of the exchange. The Court accepted the earlier dissents’ view that regulation of either term is the same kind of interference with contractual liberty.

Washington’s law was reasonably designed to protect women against the effects of substandard wages. The wage-setting process considered particular occupations and included employers, employees, and public representatives; moreover, special licenses permitted lower wages for workers unable to perform full service. The statute did not compel an employer to hire anyone or require payment for services that did not support the business; it simply prohibited employment below a lawful minimum.

The legislature could find that women workers often had relatively weak bargaining power and were especially vulnerable to employers who exploited economic necessity. A living-wage requirement addressed the harmful “sweating system,” in which workers accepted wages too low to maintain health and basic well-being. Courts could not invalidate that legislative judgment merely because the policy’s wisdom or effects were debatable.

The Court also stressed the public consequences of substandard wages. When employers pay workers less than the cost of basic subsistence, the resulting shortfall may be borne by the public through relief and other community support. The State was therefore entitled to prevent the community from effectively subsidizing employers who paid unconscionably low wages.

Issue #3

Whether the statute is an arbitrary discrimination because it protects women but does not establish minimum wages for men.

Holding

No. Washington could confine the law to women because the legislature could reasonably conclude that women had a particularly urgent need for protection from inadequate wages.

Reasoning

A legislature need not regulate every instance of an evil at once. It may recognize degrees of harm and direct its restrictions where the need appears greatest, so long as its classification is not arbitrary. The fact that men might also suffer from low wages did not itself invalidate a law aimed at women workers.

The Court had repeatedly sustained protective labor laws that applied to women or to particular classes of women. In light of women’s relatively weak bargaining position and their susceptibility to the harms of exploitation addressed by the statute, Washington could reasonably treat their situation as demanding specific legislative protection.

Dissents

Justice Sutherland

Reasoning

Justice Sutherland, joined by Justices Van Devanter, McReynolds, and Butler, maintained that Adkins and Morehead already supplied the controlling answer: the Washington law was materially indistinguishable from the minimum-wage law invalidated in Adkins. In the dissenters’ view, the Court should therefore reverse rather than discard a settled constitutional rule.

The dissent rejected the majority’s reliance on changed economic conditions. A written Constitution remains binding unless changed through the amendment process; economic events, public opinion, or perceived need for legislation cannot alter the Constitution’s original meaning. For the dissent, judicial interpretation does not include a power to amend constitutional limitations by calling them adaptable to new circumstances.

The dissent accepted that liberty under the Fourteenth Amendment includes freedom of contract, including the right to contract over wages. Although that freedom is not absolute, restraint is the exception and requires a special justification. Minimum-wage regulation, in the dissenters’ view, did not fit the previously recognized categories for regulation because it neither governed a business affected with a public interest nor merely regulated working conditions, payment methods, or hours.

Unlike a maximum-hours law, the dissent argued, a minimum-wage law fixes an essential contractual term without regard to the value of the employee’s services or the employer’s ability to pay. It can require an employer to pay a worker more than the worker can earn, make continued employment impossible for less efficient workers, and shift to a particular employer the general social burden of supporting persons in need.

The dissent also considered the women-only classification arbitrary. Adult women, it reasoned, possessed the same legal and political capacity to contract as men, while men too could suffer from low wages and economic necessity. Excluding men therefore restricted women’s ability to compete for work without a constitutionally sufficient basis.