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35. Must this dry cleaning store comply with the statute imposing the federal minimum wage requirements on all dry cleaning stores?
A small dry cleaning store operates exclusively within a community in the center of a geographically large state. It has no customers from outside the state. It employs three workers, each of whom is paid less than the federal minimum wage.
A federal statute extends federal minimum wage requirements to all dry cleaning stores. The statute contains express findings that, when combined, the wages received by dry cleaning workers have a substantial impact on the national economy and on the flow of goods and services in interstate commerce. These findings are supported by information presented to Congress during committee hearings on the legislation.
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A is incorrect. Although the store does no business in interstate commerce, the facts indicate that wages made by dry cleaning employees have a substantial effect upon interstate commerce. The Supreme Court has held that Congress may regulate any activity that in itself or in a combination with other activities has a substantial economic effect upon interstate commerce.
B is incorrect. The wages of the store's three workers may not have a substantial impact on interstate commerce, but the wages combined by all dry cleaning workers have a substantial impact on the national economy. Therefore, Congress may regulate federal minimum wage requirements.
C is incorrect. The Commerce Clause does not vest Congress with plenary legislative authority over labor relations. As stated above, the Commerce Clause regulates activities that have a substantial effect on interstate commerce.