Department of Labor Eliminates Employment Standards Administration

In a memorandum to Employment Standards Administration (ESA) employees dated July 8, 2009, Acting Assistant Secretary Shelby Hallmark advised that the Department of Labor will abolish ESA effective November 8, 2009. The component parts of the ESA, the Office of Labor Management Standards, the office of Workers' Compensation Programs, the Wage and Hour Administration and the Office of Federal Contract Compliance Programs (OFCCP) will be stand-alone programs reporting directly to the Office of the Secretary of Labor. The memorandum suggests that the reorganization will enhance efficiency and cost savings and improve policy decision making.

Reporting directly to the Secretary of Labor's office, the agencies will immediately enjoy increased visibility and will gain the Secretary's enhanced attention -- and control. It may also suggest that the worker protection agencies, including OFCCP, are a higher priority for this Administration. Whether the reorganization will enhance efficiency and cost savings remains to be seen. It is also unclear if the heads of the agencies will attain Assistant Secretary status or will, like the Women's Bureau, be given the title "Director". During the Clinton Administration, the OFCCP head's title was changed from Director to "Deputy Assistant Secretary."