Wage and Hour Division

Scope

Today, about 110 million full and part-time workers in the private sector and in federal, state, and local governments are protected by the WHD law.

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Background. The Wage and Hour Division was established in 1938 to administer the landmark Fair Labor Standards Act provisions. In 1938, about 12 million workers were covered by the then-minimum wage of 25 cents an hour.

Since 1938 the Wage and Hour Division’s responsibilities have grown to include other laws and regulations which protect workers against unfair employment practices. The Division’s enforcement activities are carried out by WHD investigators in district and regional offices across the nation.

The ESA. The Wage and Hour Division is one of four components that make up the Employment Standards Administration (ESA), the largest agency within the U.S. Department of Labor. ESA enforces and administers laws governing legally-mandated wages and working conditions, including:

• Child labor, minimum wages, overtime, and family and medical leave;
• Equal employment opportunity in businesses with federal contracts and subcontracts;
• Workers’ compensation for certain employees injured on their jobs;
• Internal union democracy and financial integrity, and union elections, which protect the rights of union members; and
• Other laws and regulations governing employment standards and practices.

Responsibilities of the WHD. The Wage and Hour Division (WHD) is responsible for administering and enforcing some of the most comprehensive labor laws in the U.S. including:

• Fair Labor Standards Act’s (FLSA) provisions for minimum wage, overtime, and child labor.
• Family and Medical Leave Act (FMLA) which became effective August 5, 1993. FMLA requires private sector employers of 50 or more employees and public agencies to provide eligible employees up to 12 weeks of unpaid leave each year for the birth of a child, placement of an adopted or foster child; to care for a child, spouse or parent with a serious health condition; and, for the employee’s own serious health condition. It also requires covered employers to continue health benefits coverage during the leave, and restoration of the employee upon completion of leave, to the same or an equivalent job.
• Migrant and Seasonal Agricultural Worker Protection Act (MSPA) sets standards for migrant and seasonal farmworkers regarding wages, housing, and transportation. MSPA requires that contractors of migrant farmworkers register with the federal government and notify prospective workers of the wages and working conditions before they are hired. MSPA also requires that housing provided for the workers meet certain minimum standards for health and safety, and that workers be transported in vehicles that meet certain safety standards.
• Davis-Bacon Act (DBA), Service Contract Act (SCA), and the Walsh-Healey Public Contracts Act which set prevailing wage and hour standards for federal contractors. The Davis-Bacon and Related Acts cover workers on Federal construction contracts, and on construction contracts that are federally-financed in whole or in part. The McNamara-O’Hara Service Contract Act applies to workers on federal service contracts, and the Walsh-Healey Public Contracts Act applies to workers on federal supply contracts.
• Wage and Hour also has certain responsibilities under the Immigration and Nationality Act. The Immigration Reform and Control Act responsibilities include: (1) enforcement of the labor standards protections for temporary nonimmigrant agricultural workers admitted to the U.S. under various programs; and (2) inspection for compliance with the recordkeeping requirements of the employer sanctions provisions.
• Employee Polygraph Protection Act prohibits most private employers (federal, state and local government employers are exempted from the Act) from using any lie detector tests either for pre-employment screening or during the course of employment. Polygraph tests, but no other types of lie detector tests, are permitted under limited circumstances subject to certain restrictions.
• The wage garnishment provisions of the Consumer Credit Protection Act (CCPA) protect employees from discharge by their employers because their wages have been garnished for any one debt, and it limits the amount of an employee’s earnings that may be garnished in any one week. CCPA also applies to all employers and individuals who receive earnings for personal services (including wages, salaries, commissions, bonuses and income from a pension or retirement program, but ordinarily not including tips).