On May 27, 1935, the US Supreme Court decided A. L. A. Schechter Poultry Corp. v. United States, holding that the National Industrial Recovery Act was unconstitutional. The Court held the Act unconstitutional in part because Congress violated the separation of powers by bestowing the president with the legislative authority to pass codes "he thinks may be needed or advisable for the rehabilitation and expansion of trade or industry." In addition, the Court found that the act violated the Commerce Clause of the US Constitution because it regulated the hours and wages of employees engaged in intrastate commerce. The Court rejected the government's argument that remedying the financial crisis caused by the Great Depression called for an unconstitutional expansion of power.
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