LABOR LAW I CASE DIGEST /ADKINS VS. CHILDREN'S HOSPITAL/ (261 U. S., 525)

LABOR LAW I CASE DIGEST

ADKINS VS. CHILDREN'S HOSPITAL OF COLUMBIA

(261 U. S., 525)

FACTS

            A children's hospital employed a number of women at various rates of wages, which were entirely satisfactory to both the hospital and the employees. A hotel company employed a woman as elevator operator at P35 per month and two meals a day under healthy and satisfactory conditions, and she did not risk to lose her position as she could not earn so much anywhere else. Her wages were less than the minimum fixed by a board created under a law for the purpose of fixing a minimum wage for women and children, with a penalty providing a punishment for a failure or refusal to pay the minimum wage fixed. The wage paid by the hotel company of P35 per month and two meals a day was less than the minimum wage fixed by said board. By reason of the order of said board, the hotel company, was about to discharge her, as it was unwilling to pay her more and could not give her employment at that salary without risking the penalty of a fine and imprisonment under the law. She brought action to enjoin the hotel company from discharging her upon the ground that the enforcement of the "Minimum Wage Act" would deprive her of her employment and wages without due process of law, and that she could not get as good a position anywhere else. The constitutionality of the Act was squarely presented to the Supreme Court of the United States for decision.

ISSUE

Whether or not the Act is unconstitutional.

RULING

            The court ruled in the affirmative.

            The court held that the right to contract about one's affairs is a part of the liberty of the individual protected by this clause is settled by the decision of this court, and is no longer open to question. Within this liberty are contracts of employment of labor. In making such contracts, generally speaking, the parties have an equal right to obtain from each other the best terms they can as the result of private bargaining.

            Here, the court held that said Act was void on the ground that the right to contract about one's own affairs was a part of the liberty of the individual under the constitution, and that while there was no such thing as absolute freedom of contract, and it was necessary subject to a great variety of restraints, yet none of the exceptional circumstances, which at times justify a limitation upon one's right to contract for his own services, applied in the particular case.

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