Department of Labor Issues Orders in Response to the Dissolution of the Employment Standards Administration

Secretary of Labor Hilda Solis has issued four orders detailing the authority of the four sub-agencies within the Department of Labor’s (DOL) Employment Standards Administration (ESA) that are now standalone agencies as a result of the ESA’s November 8 dissolution.  The four orders (Secretary’s Order 7-2009, 8-2009, 9-2009, and 10-2009) describe the delegation of authority and assignment of responsibilities to the directors of the Office of Federal Contract Compliance Programs (OFCCP), Office of Labor-Management Standards (OLMS), Wage and Hour Division (WHD), and the Office of Workers’ Compensation Programs (OWCP), respectively. Prior to November 8, these four entities had been under the ESA’s organizational umbrella. The directors of these agencies now report directly to the Secretary of Labor.

All four orders, published in today’s Federal Register and effective as of November 8, cancel the Secretary’s Order 1-2008 regarding the ESA. All existing DOL orders, directives, policies and guidance that reference this earlier Order are now amended to refer to one of the four new standalone entities, as appropriate.

Tammy McCutchen, Former Administrator of the Wage and Hour Division and Littler Shareholder, Comments on the Abolishment of the Employment Standards Administration at the U.S. Department of Labor

The Employment Standards Administration (or “ESA” in DOL-speak) is not well-known outside the Beltway and the community of wage and hour practitioners. ESA is an umbrella organization responsible for management and oversight of four subordinate agencies:

  • The Wage and Hour Division (“WHD”)
  • The Office of Federal Contract Compliance Programs (“OFCCP”)
  • The Office of Labor-Management Standards (“OLMS”), and
  • The Office of Workers' Compensation Programs (“OWCP”)

The Assistant Secretary of ESA and the Administrator of the Wage and Hour Division are both positions whose incumbents must be nominated by the President and confirmed by the Senate. The Directors of the OFCCP, OLMS and OWCP are appointed by the Secretary of Labor.

On July 8, 2009, Acting Assistant Secretary of ESA, Shelby Hallmark, announced that the ESA will be abolished in November, with the leaders of the four agencies – WHD, OFCCP, OLMS and OWCP reporting directly to the Secretary of Labor.  Continue reading at Littler's Wage & Hour Counsel blog.