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Blog » Finance » Department of Labor division recovers $1 billion in back wages

Department of Labor division recovers $1 billion in back wages

A construction worker's helmet on a sunny worksite

Department of Labor’s Wage and Hour division has recovered over $1 billion in back wages and damages since 2021.

The Department of Labor announced the news as part of a wider release centered on the federal branch’s effort to enforce the legal statutes for United States workers.

“The Wage and Hour Division has recovered more than $1 billion in back wages and damages—achieving both justice and economic relief for more than 615,000 workers,” said Acting Secretary of Labor Julie Su.

Department of Labor department recovers more than $1 billion

The Wage and Hour division centers around the core laws protecting workers’ rights nationwide. The Fair Labor Standards Act is most frequently mentioned in correspondence involving action or enforcement by the division.

This is the bedrock of the blue-collar workforce, ensuring that employers pay the federal minimum wage and overtime wages and comply with laws requiring prevailing wages for federally funded and assisted contracts. The agency prioritizes helping workers in low-wage, high-violation industries, including healthcare, agriculture, construction, and many others.

As we reported, the Wage and Hour division has redoubled its efforts to crack down on companies and employers across the U.S. for the past half-decade alongside the Occupational Safety and Health Administration (OSHA).

Recently, a Florida boatmaker was hit with $300k in labor penalties after failing to address workplace risks. The Department of Labor had previously visited Blacktip Boatworks LLC, based in Pinellas Park, Florida, but the shipwright failed to heed their many concerns about the workplace standards in place.

The Department of Labor and the Wage and Hour Division also investigated a Jacksonville Beach water park, forcing the employer to pay $151,606 in penalties in a serious child labor case.

Wage and Hour Administrator Jessica Looman said, “The money we recover from employers helps workers pay for housing, childcare, and other necessities. While we are proud to have recovered $1 billion in workers’ owed wages and damages, we remain concerned by the wage theft we have uncovered and the harm it causes to hard-working people nationwide. We will continue using all our tools to protect workers nationwide.”

Image: BD Morgan Pixlr.

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