Trump FY2018 Budget Slashes DOL, Merges OFCCP with EEOC, and Offers Paid Family Leave

The Trump Administration’s FY2018 budget proposes reducing the Labor
Department’s appropriation by $2.4 billion for FY2018 from $12.1 billion to
$9.7 billion-a 20 percent reduction with cuts coming mostly from workforce
training programs.


Budget would
merge OFCCP into EEOC

After months of speculation, the FY2018 budget
confirms that the Administration proposes to merge OFCCP into the EEOC by the
end of FY2018:

The 2018 Budget proposes merging OFCCP into the Equal Employment Opportunity Commission (EEOC), creating one agency to combat employment
discrimination. OFCCP and EEOC will work collaboratively to coordinate this transition to the EEOC by the end of FY 2018. This builds on the existing
tradition of operational coordination between the two agencies. The transition
of OFCCP and integration of these two agencies will reduce operational
redundancies, promote efficiencies, improve services to citizens, and strengthen
civil rights enforcement.

In addition, the budget would reduce OFCCP’s budget
by 16 percent–from $105 million in FY2017 to $88 million in FY2018.

Budget’s impact on other
enforcement agencies

As to other enforcement
agencies, the Equal Employment Opportunity Commission (EEOC) would receive
$363.8 million FY2018 under the budget, representing a modest reduction of $700,000
from FY2017. Although
the target of strong criticism, the National Labor Relations Board (NLRB) received
a budget cut of only about 6 percent from $274 million to $258 million.  The Wage and Hour Division’s spending will
remain basically unchanged, which may
indicate an intent to shelve the
still-pending overtime rules.

Budget
proposes paid family leave

Finally,
the proposed FY2018 budget provides over $18 billion in additional funding to the
Labor Department’s unemployment insurance program for paid parental leave.  The proposal envisions a federal-and-state paid
parental leave program beginning in 2020.  The program would provide six weeks of paid
leave to new birth and adoptive parents.
Like the Administration’s Medicaid proposal, states would be given
significant discretion in determining the final structure of the leave program.

Takeaways

The
budget is the most tangible expression of the effort to reduce the size and
reach of the federal government.
However, Congressional leaders’ response to President Trump’s budget is
that it is “dead on arrival.”  It is also
important to note that both employer groups and civil rights advocates have
raised serious objections the budget’s merger of OFCCP and EEOC.  In fact, The
Institute for Workplace Equality (The Institute), of which David Fortney is a co-chair, submitted a letter to Secretary Acosta and OMB Director Mulvaney strongly objecting to the proposal.  If
you have additional questions about the impact of President Trump’s budget,
please contact your FortneyScott counsel.