Abandoning its long-standing freedom of contract doctrine, the Supreme Court allowed states great discretion in regulating working conditions and protecting the rights of employees.
In 1935 Elsie Parrish, a resident of the state of Washington, was discharged from her job with the West Coast Hotel Company. She was being paid twenty-five cents an hour, which was significantly less than the state’s minimum wage of $14.50 per week, set by a commission according to a 1913 law. Parrish sued the company for $216.19, which was the difference between the minimum wage and her actual wages during her employment. Although the Supreme Court had overturned a minimum-wage law for women as recently as Morehead v. New York ex rel. Tipaldo
Contemporary San Francisco Chronicle cartoon ridiculing President Franklin D. Roosevelt's court-packing plan.
Less than two months after President Franklin D. Roosevelt announced his court-packing plan, the Court formally upheld the Washington court’s ruling with a 5-4 vote. Justice Owen J. Roberts,
West Coast Hotel was one of the major decisions of the so-called constitutional revolution of 1937. In effect, the landmark decision meant that the Court would henceforth give greater deference to the judgment of legislatures, and that it would no longer strike down labor regulations based on a substantive due process
Contract, freedom of
Court-packing plan
Due process, substantive
Labor
Morehead v. New York ex rel. Tipaldo
Roberts, Owen J.