When it comes to labor laws in the U.S., the U.S. Department of Labor (DOL) is the main federal agency making sure workers are treated fairly and employers follow the rules. Inside the DOL, the Wage and Hour Division (WHD) plays a central role—it’s the team responsible for enforcing pay and hour standards under laws like the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA).
For employers, understanding what the DOL and WHD do isn’t just about avoiding penalties—it’s about building a workplace that runs smoothly and stays out of costly legal trouble.
What the DOL does
The Department of Labor was created in 1913 to improve working conditions, protect workers’ rights, and promote fair pay. Today, it oversees a wide range of workplace issues, from unemployment insurance to retirement plans.
At a high level, the DOL’s responsibilities include:
- Setting and enforcing labor standards (like wage, overtime, and safety rules).
- Protecting workplace rights under laws like OSHA, FMLA, and ERISA.
- Collecting labor data through the Bureau of Labor Statistics (BLS).
- Providing training and resources to workers and employers.
- Overseeing employment programs like job training, apprenticeships, and workforce development.
In short, the DOL is both a watchdog and a resource.
What the WHD does
The Wage and Hour Division is a key enforcement arm of the DOL. Its focus is making sure employees are paid properly and that wage-and-hour rules are applied consistently.
The WHD enforces several major laws, including:
- Fair Labor Standards Act (FLSA): Minimum wage, overtime, child labor, recordkeeping.
- Family and Medical Leave Act (FMLA): Unpaid leave for family and medical reasons.
- Davis-Bacon Act: Prevailing wages on federal construction projects.
- Service Contract Act: Pay standards for federal service contracts.
- Migrant and Seasonal Agricultural Worker Protection Act (MSPA): Rights for farmworkers.
- Walsh-Healey Public Contracts Act: Standards for contractors providing goods to the government.
Together, these laws cover millions of workers across almost every industry.
Why the DOL and WHD matter to employers
For business owners, the DOL isn’t just a distant government agency—it has real authority that can directly impact your operations.
- Investigations and audits: The WHD can audit your payroll records without a complaint being filed.
- Back wages and penalties: Employers who violate the law may owe back pay, liquidated damages, and civil money penalties.
- Collective actions: Employees can file private lawsuits in addition to DOL enforcement.
- Reputation risks: Wage and hour violations can damage your brand, making it harder to recruit and retain staff.
On the flip side, compliance can be a competitive advantage. Businesses that stay on top of DOL rules are less likely to face lawsuits, build stronger trust with their teams, and create smoother operations overall.
Common employer mistakes that trigger WHD action
- Misclassifying employees as exempt or as independent contractors.
- Failing to track and pay for all hours worked (pre-shift prep, post-shift wrap-up, off-the-clock tasks).
- Misusing the tip credit or running illegal tip pools.
- Ignoring child labor restrictions in restaurants, construction, or retail.
- Mishandling FMLA leave requests or retaliating against employees who use them.
How to stay compliant with DOL and WHD rules
- Know the laws that apply to you – FLSA, FMLA, Davis-Bacon, etc.
- Keep accurate records – Time, pay, tips, overtime, and leave.
- Train your managers – Most violations happen on the ground, not in the office.
- Audit classifications and pay practices – Check regularly for misclassification or overtime errors.
- Stay updated on state laws – The DOL sets the federal floor, but many states go further.