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OPA News Release: [11/18/2003]
Contact Name: Ed
Frank
Phone Number: (202) 693-4676
New Data Show Record-Breaking Results from Strong
Enforcement, Compliance Assistance
WASHINGTON—U.S. Labor Secretary Elaine L. Chao today
released the Department of Labor’s annual enforcement statistics, showing
that the Department’s innovative and effective approach to protecting
workers is yielding record-breaking results. Chao noted that American workers
are safer and are receiving more back wages—including overtime
pay—than in the past.
Chao emphasized that the department was able to better protect workers
by targeting enforcement at bad actors and providing tools to employers that
help them better comply with the law. Total back wages including overtime that
were collected by the Department’s Wage and Hour division for workers in
FY 2003 increased by 21 percent over the previous year, representing an 11-year
high. The number of workers receiving back wages jumped from 263,593 workers to
342,358—a nearly 30 percent increase in one year.
Chao also said workers are safer at their work sites, thanks to the
strong enforcement and compliance assistance activities of the Occupational
Safety and Health Administration (OSHA) and the Mine Safety and Health
Administration (MSHA). In the last few years, OSHA and MSHA have placed
increased enforcement priority on repeat offenders and invested in compliance
assistance tools, programs and partnerships that enable well-intentioned
employers to better protect workers. Chao said the numbers show the clear
positive results of the Department’s new approach:
- OSHA cited employers for 83,760 violations in FY 03, a nearly 8
percent increase
- Nearly 60,000 of those violations were considered serious, an 11
percent increase over FY 02
- The most recent data available show the rates of workplace injuries
and fatalities fell to the lowest point ever in 2002
- Fatalities in all mines decreased by 14 percent in FY 03
- Total mining injuries fell by 15 percent in FY 03
“We never forget that behind every enforcement statistic and legal
action is a person who needs our help,” Chao said. “That’s why
I’m pleased to make these announcements today. They are an indication of
how seriously this Administration takes its commitment to protect the safety
and security of America’s workers.”
The data released today also show that workers’ benefits, such as
pension plans, 401(k)’s and health insurance, are more secure. The
Employee Benefits Security Administration (EBSA) reported that it had record
monetary results of more than $1.4 billion in civil and criminal cases, and
participant benefit recoveries in FY 03 saw a nearly 60 percent increase over
the previous year. In addition, EBSA’s Voluntary Fiduciary Correction
Program (VFCP), which encourages self-correction of benefit violations, saw a
300 percent increase in applications in FY 03 and more than $8 million in
restored assets to employee plans.
* * *
The U.S. Department of Labor
Protecting
America’s Workers
Innovative and Effective Worker Protection:
The Department of Labor has pursued an innovative and effective approach
to protecting America’s workers that has yielded record-breaking results.
This approach has focused on three priorities:
- Increasing the effectiveness of enforcement by targeting bad
actor
- Investing in compliance assistance tools and programs to help
employers protect workers
- Entering new partnerships with businesses, unions, trade associations
and professional organizations that recognize that safety adds value
OSHA Achievements:
- In 2002 (the most recent data available) the number of workplace
fatalities fell by 6.6% and the rate of fatal injuries in the workplace fell
from 4.3 to 4.0 per 100,000 workers, both of which are the lowest figures ever
recorded. Fatal work injuries among Hispanic workers, which had been rising
each year since 1995, were down by 6% in 2002. This improvement has resulted
from better enforcement, compliance assistance and an emphasis on
accountability and results.
- In 2001, (the most recent year for which data is available) the
occupational injury and illness rate dropped to 5.7 cases per 100
workers—the lowest level since the United States began collecting this
information. As recently as 2000, the rate was 6.1 per 100 workers.
- In FY 2003, the Occupational Safety and Health Administration
conducted 39,817 inspections—a nearly 6% increase over FY 2002.
- Because of improved inspection targeting, violations cited by OHSA
increased to 83,539 in 2003, a 7.6% increase over FY 2002. Nearly 60,000 of
these were considered serious violations, an increase of 11% over FY 2002.
EBSA Achievements:
- EBSA had record monetary results of more than $1.4 billion in FY
2003—a nearly 60% increase over the previous year.
- In FY 2003, EBSA closed 4,253 civil cases, 69% of which produced
monetary results for employee benefit plans or other corrective action.
- The percentage of civil investigations closed “with
results” in FY 2003 was up by 18% over FY 2002.
- In FY 2003, EBSA criminal investigations resulted in the indictment
of 137 plan officials, corporate officers, union representatives and service
providers for offenses related to employee health and pension plans.
- EBSA also conducted a record 2,079 outreach and education events in
FY 2003, including compliance assistance seminars, dislocated worker rapid
response sessions, congressional briefings, and other participant assistance
events.
- Promoting Corporate Responsibility: To help recover retirement plan
assets for the workers and retirees who lost their life savings from Enron, the
Department of Labor filed suit against Enron Corporation, the top two former
chief executive officers, the former board of directors, and the former
administrative committee for Enron’s retirement plans. The suit also
serves notice to corporate leaders that they must live up to their fiduciary
responsibilities.
MSHA Achievements:
- Fatalities in all mines decreased by 14% from FY 2002 to FY 2003, and
by 31% between FY 2000 and FY 2003.
- Total mining injuries, based on preliminary data, fell by 15.6% from
FY 2002 to FY 2003 and by 27% since FY 2000.
- From FY 2000 to FY 2003, total enforcement site events increased by
19%.
Wage and Hour Achievements:
- Total back wages collected for workers in FY 2003 increased by 21%
over FY 2002, from $175.6 million to $212.5 million—an 11-year
record.
- The number of workers who received back wages in FY 2003 increased by
nearly 30% over FY 2002, from 263,593 workers to 342,358.
OLMS Achievements:
- In FY 2003, OLMS investigations resulted in 152 convictions, an
average of 12.5 per month. Between FY 1999 and FY 2002, OLMS investigations
resulted in 660 convictions, an average of 11 per month.
- OLMS increased the number of convictions in FY 2003 by 69% over FY
2002
- OLMS conducted 30% more election investigations in FY 2003 than FY
2002.
OFCCP Achievements:
- In FY 2003, OFCCP completed 7,709 compliance evaluations covering
over 2.5 million workers—more reviews and more covered workers than any
year since 1991.
- OFCCP completed 52 Corporate Management Reviews during FY 2003, a
record number. Corporate Management Reviews ensure that workers have an equal
opportunity to rise to management and executive positions.
- OFCCP focused on systemic discrimination cases in FY 2003, obtaining
settlements which provided $26,220,356 in financial remedies to 14,361 minority
and female workers.
- In FY 2003, OFCCP referred 12 systemic discrimination cases to the
Office of the Solicitor for enforcement litigation, involving $27.3 million in
estimated liability and over 1,500 workers. The Solicitor’s Office filed
enforcement litigation in 5 OFCCP cases this year, with estimated liability of
more than $6.2 million and involving more than 2,400 workers.
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