# Labor Laws & Protections Part of the American Business Merit Badge Digital Resource Guide: [Introduction & Overview](https://merit-badge.university/merit-badges/american-business/guide/index.md) *4. Labor & Government* > **4.** Describe the role of the U.S. Department of Labor. Discuss TWO of the following topics with your counselor: ## The U.S. Department of Labor The **U.S. Department of Labor (DOL)** is a federal agency whose mission is to protect the rights and welfare of American workers. It was created in 1913, and its work touches the lives of nearly every working person in the country. The Department of Labor: - **Enforces labor laws** that protect workers' wages, safety, health, and rights - **Collects and publishes data** about employment, wages, and working conditions through the Bureau of Labor Statistics (BLS) - **Administers programs** like unemployment insurance, job training, and veterans' employment services - **Sets standards** for workplace safety, overtime pay, and child labor protections - **Investigates complaints** from workers who believe their rights have been violated The DOL is led by the **Secretary of Labor**, a member of the president's cabinet. It employs thousands of inspectors, analysts, and staff across the country. > **Did You Know?** > > Frances Perkins, who served as Secretary of Labor from 1933 to 1945, was the first woman to hold a U.S. cabinet position. She played a major role in creating Social Security, establishing the minimum wage, and banning child labor. Many of the worker protections we take for granted today exist because of her work. [U.S. Department of Labor — About Us](https://www.dol.gov/general/aboutdol): Learn about the Department of Labor's mission, history, and the programs it administers. --- **Choose TWO of the following four topics to discuss with your counselor.** Read about all four to decide which two interest you most. --- ## Option 1: Fair Labor Standards Act (FLSA) The **Fair Labor Standards Act**, passed in 1938, is one of the most important labor laws in American history. It established three fundamental protections that still shape the workplace today: ### Minimum Wage The FLSA set the first federal minimum wage — 25 cents per hour in 1938. Today the federal minimum wage is $7.25 per hour, though many states and cities have set their own higher minimums. The minimum wage ensures that workers receive at least a baseline level of pay for their labor. ### Overtime Pay The FLSA requires that most workers who work more than 40 hours in a week receive **overtime pay** — at least 1.5 times their regular hourly rate. This rule prevents employers from demanding unlimited hours without additional compensation. ### Child Labor Protections The FLSA set limits on when and how many hours minors can work, and it banned children from working in dangerous occupations. Before this law, it was common for children as young as ten to work long hours in factories, mines, and mills. > **Tip** > > The FLSA affects you directly. If you have a part-time job, the hours you are allowed to work and the minimum you are paid are determined by this law. If you are under 16, there are strict limits on how many hours you can work during the school year. --- ## Option 2: Occupational Safety and Health Act (OSHA) The **Occupational Safety and Health Act** of 1970 created the **Occupational Safety and Health Administration** — also known as OSHA. Its purpose is simple but critical: to make sure American workplaces are safe and healthy. ### What OSHA Does - **Sets safety standards** for workplaces — rules about protective equipment, chemical handling, machine guards, ventilation, noise levels, and more - **Conducts inspections** — OSHA inspectors can visit workplaces to check for hazards, often without advance notice - **Investigates accidents** — when a serious injury or death occurs at work, OSHA investigates to determine the cause and prevent future incidents - **Issues fines** — businesses that violate safety standards can be fined thousands of dollars ### Why OSHA Matters Before OSHA, workplace safety was largely up to individual employers. The results were often tragic — thousands of workers died on the job each year, and many more were seriously injured. Since OSHA was created, workplace fatalities have dropped by more than 60%, even as the workforce has grown significantly. > **Safety First!** > > Every worker has the right to a safe workplace. If you ever feel unsafe at a job — whether it is a summer position, a part-time retail job, or volunteer work — you have the right to speak up. OSHA protects workers who report safety concerns from being punished by their employers. --- ## Option 3: Family and Medical Leave Act (FMLA) The **Family and Medical Leave Act**, passed in 1993, gives eligible workers the right to take unpaid time off from work for important family and medical reasons — without losing their job. ### What FMLA Covers Under FMLA, eligible employees can take up to **12 weeks of unpaid leave** per year for: - The birth or adoption of a child - Caring for a spouse, child, or parent with a serious health condition - The employee's own serious health condition that prevents them from working - Certain situations related to a family member's military service ### Key Rules - The law applies to employers with 50 or more employees. - The employee must have worked for the employer for at least 12 months. - The employer must hold the employee's job (or an equivalent one) while they are on leave. - The leave is **unpaid** — the law does not require employers to pay wages during leave, though some employers choose to. ### Why FMLA Matters Before FMLA, workers could be fired for taking time off to care for a sick child or recover from surgery. FMLA recognizes that life events — births, illnesses, family emergencies — are part of being human, and workers should not have to choose between their job and their family. --- ## Option 4: Employee Retirement Income Security Act (ERISA) The **Employee Retirement Income Security Act**, passed in 1974, protects workers' retirement savings and benefits. It sets standards for pension plans and other benefit programs offered by private employers. ### What ERISA Does - **Sets minimum standards** for how employers manage retirement plans — including rules about funding, reporting, and fiduciary responsibility - **Requires transparency** — employers must provide participants with information about their plan, including fees and investment options - **Protects benefits** — if a company goes bankrupt or a pension plan fails, the **Pension Benefit Guaranty Corporation (PBGC)** — created by ERISA — can step in to pay some benefits - **Gives workers rights** — employees can sue if their plan is mismanaged or if they are denied benefits they earned ### Why ERISA Matters Before ERISA, workers sometimes lost their entire retirement savings when companies went bankrupt or pension funds were mismanaged. ERISA ensures that the money workers set aside for retirement is handled responsibly and is there when they need it. > **Tip** > > When choosing your two topics, pick the ones you find most interesting or that you can relate to. If you have a part-time job, the FLSA and OSHA are directly relevant to you. If you have family members who have used medical leave or have retirement plans, FMLA and ERISA might be more relatable. ![A collage of four workplace scenes: a teenager checking their pay stub, a construction worker wearing safety equipment, a parent holding a newborn at home, and a retiree reviewing financial documents](https://ik.imagekit.io/doulacoop/tr:w-800/mbu-assets/merit-badges/american-business/guide/worker-protections-collage?v=724e9619) **Discussion Prep** — For each topic you choose, be ready to explain - [ ] What the law is called and when it was passed - [ ] What problem it was created to solve - [ ] What protections it provides to workers - [ ] Why it matters to the American business system [Major Laws Administered by the DOL](https://www.dol.gov/general/aboutdol/majorlaws): The Department of Labor's official summary of the major laws it enforces, including FLSA, OSHA, FMLA, and ERISA. --- You have explored the government's role in protecting workers. Now it is time to put everything together by researching a real business. --- - Previous: [Brick-and-Mortar vs. Online](https://merit-badge.university/merit-badges/american-business/guide/req3d/index.md) - Next: [Researching a Business](https://merit-badge.university/merit-badges/american-business/guide/req5/index.md)