The Department of Labor’s budget would receive slightly less funding than it did a year prior, $12 billion in discretionary funding. However, the proposed budget signals the administration’s acknowledgement that employers are facing expanded enforcement and regulatory activity by federal agencies. Changes to policy and funding within the DOL included:
- The Wage and Hour Division would receive an increase of $6 million for increased enforcement of the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA), particularly in the area of overtime violations. In addition, worker misclassification is once again a priority with $14 million being allocated to combat the issue, including $10 million for grants to states for identifying misclassification and $3.8 million for 35 new full-time employees for enforcement related specifically to misclassified workers.
- The Office of Federal Contract Compliance Programs (OFCCP) will increase its regulatory agenda, primarily the promulgation of new rules. The OFCCP is already working on new regulations for federal contractors and subcontractors in the construction industry dealing with women and minorities, as well as new regulations addressing veterans and individuals with disabilities.
- The Equal Employment Opportunity Commission (EEOC) would receive an increase. According to the commission’s budget request, the priority for agency resources continues to be litigating systemic cases and maintaining a manageable inventory of cases.
- The National Labor Relations Board (NLRB) would receive a slight boost in funding.
- Pensions: The budget proposes to give the Pensions Benefit Guaranty Corporation (PBGC) the authority to adjust premiums and direct the PBGC to take into account the risks that different sponsors pose to their retirees and to PBGC.
- Safety and Health Standards: OSHA is requesting $21,008,000 and 99 full-time employees (FTE) for this activity, an increase of $1,045,800 over the FY 2012 enacted level. This request includes a program increase of $1,000,000 to support the development of new standards. The agency will continue to develop its new Injury and Illness Prevention Program standard.
- Federal Enforcement: The Federal Enforcement budget activity request for FY 2013 is $207,075,000 and 1,580 FTE, a decrease of $677,604 and 3 FTE from the FY 2012 enacted level. This includes a decrease of $1,300,000 due to three regional consolidations.
- Whistleblower Programs: OSHA is requesting $20,739,000 and 156 FTE for this activity, an increase of $4,866,057 and 37 FTE over the FY 2012 enacted level. This request includes a program increase of $4,800,000 and 37 FTE for the improved administration of 21 whistleblower statutes, including Section 11(c) of the OSH Act. Whistleblower Programs was requested as a new budget activity in the FY 2012 president’s budget; resources for this program were previously included in the Federal Enforcement budget activity.
- Training Grants: In FY 2013, OSHA is requesting $10,709,000 for this activity, the same as in the FY 2012 Enacted Level, to enable Susan Harwood Training Grants to reduce injuries and illnesses through worker voice.
- Worksite Enforcement: the Department of Homeland Security will focus on worksite enforcement, promoting compliance with worksite-related laws through criminal prosecutions of egregious employer violators, Form I-9 inspections, civil fines, and debarment, as well as education and compliance tools.
- E-Verify: $112 million is provided to sustain funding for the E-Verify Program operations and enhancements. The FY 2013 Budget includes funding to support the expansion of the E-Verify Self Check program, a voluntary, free, fast, and secure online service that allows individuals in the United States to check their employment eligibility status before formally seeking employment. The Budget also extends E-Verify authorization for an additional year.