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During the late 19th and early 20th centuries, labor's growing political power and the increasing number of wage earners in the electorate led to the passage of many laws protecting workers. These included statutes outlawing 'yellow dog' contracts (under which employees agreed not to join or remain a union member), minimum wage and maximum hour's legislation, laws regulating the employment of women and children, factory safety measures, and worker's compensation.

Although federal labor law regulates several aspects of labor-management relations, it still permits many terms of employment to be determined by private bargaining. Nonetheless, sometimes the law directly regulates such key terms of employment as wages and hours worked.

The Fair Labor Standards Act regulates wages and hours by entitling covered employees to: 1) a specified minimum wage whose amount changes over time, and 2) a time-and-half rate for work exceeding 40 hours per week. These provisions basically apply to employees who are engaged in interstate commerce or the production of goods for such commerce, or who are employed by an enterprise that does the same and that has annual and gross sales of sufficient size. State and local employees are also covered.

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