ADKINS V CHILDREN'S HOSPITAL 261 U.S 525 1923 ADKINS V CHILDREN'S HOSPITAL U.S CONSTITUTION U.S GOV'T JUDICIAL BUSINESS/COMMERCE EMPLOYMENT U.S GOVERNMENT AND CONSTITUTION ECONOMY AND LABOR SIGNIFICANCE THIS RULING LIMITED THE ABILITY OF THE GOVERNMENT TO INTERFERE WITH THE FREEDOM OF CONTRACT GUARANTEED BY THE DUE PROCESS CLAUSE OF THE FIFTH AMENDMENT BACKGROUND IN 1918 CONGRESS ENACTED A LAW THAT AUTHORIZED A MINIMUM WAGE FOR WOMEN AND CHILDREN EMPLOYED IN THE DISTRICT OF COLUMBIA AND ESTABLISHED A WAGE BOARD FOR THE DISTRICT THE PURPOSE OF THE ACT WAS TO PROTECT THE HEALTH AND MORALS OF WOMEN FROM HARMFUL LIVING CONDITIONS CAUSED BY INSUFFICIENT WAGES CHILDREN'S HOSPITAL WHICH EMPLOYED A LARGE NUMBER OF WOMEN HAD ESTABLISHED ITS OWN WAGES THE HOSPITAL SUED TO KEEP FROM HAVING TO PAY ITS EMPLOYEES THE MINIMUM WAGE THE HOSPITAL ARGUED THAT THE ACT REPRESENTED A PRICE FIXING LAW THAT VIOLATED THE FREEDOM OF CONTRACT AS GUARANTEED BY THE DUE PROCESS CLAUSE OF THE FIFTH AMENDMENT DECISION THIS CASE WAS ARGUED ON MARCH 14 1923 AND DECIDED ON APRIL 9 1923 BY A VOTE OF 7 TO 2 JUSTICE GEORGE SUTHERLAND SPOKE FOR THE COURT WITH JUSTICES WILLIAM HOWARD TAFT AND OLIVER WENDELL HOMES DISSENTING THE COURT RULED THAT THE MINIMUM WAGE LAW WAS UNCONSTITUTIONAL BECAUSE IT VIOLATED THE FREEDOM OF CONTRACT THE COURT ALSO ARGUED THAT WAGE AND PRICE DETERMINATIONS WERE ESSENTIAL TO A FREE MARKET ECONOMY AND MUST BE PROTECTED FROM LEGISLATION THE COURT USED THE RULING IN THE 1920S AND EARLY 1930S TO OVERTURN SEVERAL STATE MINIMUM WAGE LAWS EXCERPT FROM THE OPINION OF THE COURT TO SUSTAIN THE INDIVIDUAL FREEDOM OF ACTION CONTEMPLATED BY THE CONSTITUTION IS NOT TO STRIKE DOWN THE COMMON GOOD BUT TO EXALT IT FOR SURELY THE GOOD OF SOCIETY AS A WHOLE CANNOT BE BETTER SERVED THAN BY THE PRESERVATION AGAINST ARBITRARY UNREASONED RESTRAINT OF THE LIBERTIES OF ITS CONSTITUENT PRINCIPAL MEMBERS
