An American lumber company based in Georgia was charged with violating the conditions set forth in the Fair Labor Standards Act of 1938 aiming to fix minimum wages and maximum hours for employees engaged in the production of goods for interstate commerce.

The company successfully appealed when an appellate judge ruled that the federal government is barred by the Tenth Amendment from interfering in matters that are strictly local and within state boundaries.

[2] The Darby case came about due to violations of the Fair Labor Standards Act of 1938 (FLSA), one of many initiatives enacted by President Franklin Roosevelt during the Great Depression and, to date, the most comprehensive to dictate the running of corporations.

The Court held that the purpose of the Act was to prevent states from using substandard labor practices to their own economic advantage by interstate commerce.

In the current case, the Court found that earlier argument facile and explained that Congress was aware that businesses produce their goods without thought to where they will go, and product is pulled and shipped to meet the orders of the day.