Institutions of Impact: Understanding the role of the Department of Labor
Editor’s note: This is the third in a series of articles exploring the history, mission and essential services provided by key government agencies. President-elect Donald Trump's proposed funding cuts and potential changes to the way agencies operate could significantly weaken these agencies and disrupt essential services that millions rely on daily.
It’s unclear exactly how the second Donald Trump administration could affect the U.S. Department of Labor and the employment law landscape. Trump’s plans for mass deportations of immigrants could significantly disrupt businesses and lead to higher prices for consumers and “immense social costs.” The Brookings Institution recently reported on the labor market impact of deportations, including that studies indicate increased deportations are associated with poorer economic outcomes for U.S.-born workers. Experts say it’s possible that regulation of the labor market will slow when Trump takes office, and further limitations could be placed on diversity, equity and inclusion initiatives.
History
The Department of Labor was established in 1913, following decades of campaigning by labor organizers for an agency dedicated to improving working conditions, advancing employment opportunities and protecting workers’ rights. Labor unions and reformers had called for federal oversight during the industrial revolution to improve workplace standards. The department originated from earlier efforts like establishing the Bureau of Labor Statistics in 1884, which collected and analyzed data on employment and working conditions. Since its founding, the department has implemented policies and programs to address workplace safety, wage equity and employment training. It has played a significant role during economic crises and in creating landmark labor legislation, including the Fair Labor Standards Act of 1938, which established minimum wage and overtime protections.
Key functions and services
The Department of Labor is responsible for enforcing federal labor laws and administering programs focused on four primary areas: worker protection, income support, workforce training and development and labor statistics and research. Key agencies within the department include the Occupational Safety and Health Administration, which enforces workplace safety standards, and the Wage and Hour Division, which oversees compliance with wage laws, overtime rules and family leave regulations.
The department administers unemployment insurance programs in collaboration with states that provide temporary assistance to workers who lose their jobs. The Employee Benefits Security Administration seeks to protect employee benefits, including private retirement and health plans, by ensuring compliance with federal regulations. The department’s Employment and Training Administration focuses on workforce development through job training programs, apprenticeships and career services.
Image at top by the SPLC.
