🗞️ DOL Reports Record Back Wage Recovery Amid Enforcement Transition
The Department of Labor recovered $259 million in back wages for 177,000 workers in fiscal year 2025—the highest recovery since 2019—while implementing significant changes to enforcement priorities and staffing levels.
The U.S. Department of Labor's Wage and Hour Division announced recovery of over $259 million in back wages for nearly 177,000 workers in fiscal year 2025, averaging $1,465 per worker. This represents the highest back wage recovery since 2019 and a 28% increase from the $202 million recovered in fiscal year 2024. The announcement came from WHD Administrator Andrew Rogers under Labor Secretary Lori Chavez-DeRemer.
Analysis of WHD data by Bloomberg Law reveals that only 18% of the back wages and penalties originated from violations found in fiscal year 2025, with many high-value cases involving violations that occurred between 2016 and 2024. The oldest cases in the recovery total date back to 2008, indicating that the figures reflect completion of investigations initiated across multiple administrations.
The Department has undergone significant organizational changes since January 2025, with approximately 20% of the workforce departing through retirements and voluntary separation programs. The fiscal year 2026 budget proposal includes a 35% reduction in DOL funding. Labor and employment attorneys have reported decreased investigative activity during this transition period.
The Division has shifted enforcement priorities toward employer compliance assistance and voluntary programs. In July 2025, WHD relaunched the Payroll Audit Independent Determination (PAID) program, which allows employers to voluntarily disclose wage violations and pay back wages without facing civil penalties or liquidated damages. The program was previously operational from 2018 to 2021. In June 2025, the Division announced it would no longer seek liquidated damages in administrative settlements, limiting enforcement actions to recovery of actual back wages.
Additional policy changes include new guidance on worker classification, modifications to child labor regulations, and adjustments to tip credit rules. The Division has expanded compliance assistance resources, including updated videos, a YouTube series on the Family and Medical Leave Act, and relaunched opinion letter services.
Key Points
- Record Recovery: $259 million recovered for 177,000 workers, averaging $1,465 per worker—highest since 2019
- 28% Increase: Recovery increased from $202 million in FY 2024 to $259 million in FY 2025
- Case Timing: Only 18% of recovered wages stem from FY2025 violations; many cases span multiple years back to 2008
- Organizational Changes: Approximately 20% of DOL workforce departed since January 2025 through voluntary programs
- PAID Program Revival: Voluntary self-audit program relaunched July 2025, expanded to include FMLA violations
- Settlement Policy Change: WHD stopped seeking liquidated damages in administrative settlements as of June 2025
- Enforcement Approach: Shift from traditional prosecution toward employer compliance assistance and self-reporting
Primary Source Author: Andrew Rogers, Wage and Hour Division Administrator
Primary Source: U.S. Department of Labor News Release
Primary Source Link: https://www.dol.gov/newsroom/releases/whd/whd20260108
