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The United States Department of Labor (DOL) is a Cabinet-level federal department that has three overall functions—protecting the rights of workers, job seekers and retirees, providing job training and supplying statistics related to employment, prices and income. If you are an employer, it is important to understand the DOL and its purpose concerning your business and employees.

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A brief history of the DOL

The US DOL was created on March 4, 1913, when departing President William Howard Taft signed the legislation that mandated the department to be headed by the Secretary of Labor. The DOL’s stated goal was to create a productive workforce for the US economy, to make sure workers were in steady supply and to keep the nation competitive by establishing fair labor practices.

When the DOL started operations, it initially consisted of five agencies:

  • The US Conciliation Service (USCS)
  • The Bureau of Labor Statistics (BLS)
  • The Bureau of Immigration
  • The Bureau of Naturalization
  • The Children’s Bureau

At the time, the USCS was a new agency, and its purpose was in mediating labor disputes. The four pre-existing bureaus had previously been part of other departments, so they operated under the DOL with little oversight from the Secretary of Labor. For a time, the department dedicated most of its resources to the USCS.

By World War I, much of the DOL’s focus was on immigration, but with the appointment of Frances Perkins as Secretary of Labor, there was a greater emphasis on protecting workers and helping the economy recover after the Great Depression. As part of her efforts, Perkins set up the Civilian Conservation Corps (CCC), which provided jobs on conservation projects for unemployed men. She pushed for a national pension system, which resulted in the creation of Social Security.

There were many significant pieces of legislation during the first 100 years of the DOL, including the following:

Agencies in the US DOL

Today, the US Department of Labor has several agencies, including:

US Department of Labor timeline

Here is a list of important events in the US Department of Labor’s history:

  • 1913: The DOL began operations.
  • 1931: The Davis-Bacon Act became law, giving the DOL the ability to fight against wage slashing on federal construction projects.
  • 1933: President Franklin Delano Roosevelt appointed Frances Perkins to serve as Labor Secretary. Perkins was the first woman to ever serve in the presidential Cabinet, and she oversaw reforms that strengthened the DOL’s role in supporting workers and retirees during the Great Depression era. Also, Congress passed the Wagner-Peyser Act of 1933, which revitalized the US Employment Service (USES) and established a national system of employment offices.
  • 1934: Perkins established the Bureau of Labor Standards, which served as an informational resource for state governments and other agencies in their efforts to improve work conditions.
  • 1935: Congress passed the Social Security Act.
  • 1936: Congress passed the Walsh-Healey Public Contracts Act of 1936.
  • 1938: The FLSA became law.
  • 1940: The Bureau of Immigration and Naturalization moved to the Department of Justice.
  • 1958: Congress authorized the DOL to enforce safety and health standards for workers in longshoring and harbor work.
  • 1961: President John F. Kennedy appointed Arthur J. Goldberg as Labor Secretary. 
  • 1964: Congress passed the Civil Rights Act of 1964, which created the Equal Opportunity Commission to fight against workplace discrimination.
  • 1965: Executive Order 11246 created the Office of Federal Contract Compliance Programs (OFCCP) within the DOL.
  • 1969: The Job Corps moved from the Office of Economic Opportunity to the DOL.
  • 1970: The DOL established OSHA.
  • 1974: Congress passed ERISA.
  • 1978: The Mine Safety and Health Administration was created.
  • 1993: Congress passed FMLA.

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Indeed’s Employer Guide helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.