Wagner-Peyser Act and the New Deal employment system (1933)
Congress created the Employment Service to coordinate job placement through state offices during the Depression. The law made merit-based staffing a condition of federal funding, a response to patronage abuses in earlier state employment systems.
States built a nationwide network of job centers under federal standards.
Merit staffing became a cornerstone of the program, surviving intact for 93 years until this rule change.
The current dispute turns on whether DOL can unilaterally undo a staffing standard that has been law since the New Deal.
