If you employ people in the U.S., the U.S. Department of Labor (DOL) is one of the most important agencies you’ll interact with—even if you never hear from them directly. The DOL’s job is to make sure workers are treated fairly, paid properly, and kept safe on the job. For employers, understanding what the DOL does (and doesn’t do) can make the difference between smooth operations and unexpected fines.
What the DOL does
The DOL was created in 1913 with a mission to improve working conditions, advance opportunities for profitable employment, and protect workers’ rights. Today, it oversees a wide range of responsibilities that affect nearly every workplace.
Some of the DOL’s main functions include:
- Enforcing wage and hour laws through the Wage and Hour Division (WHD)
- Promoting workplace safety through the Occupational Safety and Health Administration (OSHA)
- Overseeing retirement and benefits plans through the Employee Benefits Security Administration (EBSA)
- Administering unemployment insurance and job training programs
- Collecting labor statistics through the Bureau of Labor Statistics (BLS)
In short, the DOL is both a watchdog and a support system—it enforces the law, but it also provides resources and data that help employers and employees alike.
Key agencies within the DOL
The DOL isn’t just one office; it’s made up of specialized divisions. A few that matter most to employers include:
- Wage and Hour Division (WHD): Enforces the Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and laws governing wages on federal contracts.
- Occupational Safety and Health Administration (OSHA): Sets and enforces workplace safety standards.
- Employee Benefits Security Administration (EBSA): Oversees pension, retirement, and health plans under ERISA.
- Office of Federal Contract Compliance Programs (OFCCP): Ensures federal contractors comply with nondiscrimination and affirmative action rules.
- Bureau of Labor Statistics (BLS): Provides the data employers use to track wages, employment, and economic trends.
Why the DOL matters to employers
Even if you’ve never had a DOL investigator knock on your door, the rules they enforce shape the way you pay and manage employees. Common areas where the DOL steps in include:
- Misclassification of employees as independent contractors or exempt when they shouldn’t be
- Wage and hour violations like unpaid overtime, off-the-clock work, or tip credit misuse
- Workplace safety issues such as hazards, missing training, or failure to provide protective equipment
- Benefit plan compliance under ERISA, including retirement plan reporting errors
- Leave violations under FMLA
The stakes are high. Noncompliance can result in back pay, penalties, civil lawsuits, and even criminal charges in extreme cases.
Common mistakes employers make
- Thinking federal law doesn’t apply to small businesses (many DOL rules do)
- Relying on job titles instead of actual duties for FLSA exemptions
- Skipping record-keeping requirements or keeping incomplete payroll files
- Ignoring state laws, assuming federal law is the only standard
- Overlooking safety obligations in lower-risk industries like retail or restaurants
How employers can stay ahead
- Know the basics: Understand which DOL laws apply to your business.
- Audit your practices: Regularly review payroll, timekeeping, benefits, and safety policies.
- Train your managers: Most violations happen day-to-day, not in HR.
- Stay updated: Labor laws change—salary thresholds, safety standards, and posting requirements are updated often.
- Document everything: Accurate, consistent records are your best defense in an audit.
How Kubera HR Solutions can help
At Kubera HR Solutions, we specialize in helping businesses navigate DOL compliance. From wage and hour audits to classification reviews and record-keeping checkups, we give you a clear picture of where you stand—and what needs to be fixed. Our goal is simple: help you avoid costly penalties and create a compliant, confident workplace.