Organic Act of the Department of Labor

Definition of 'Organic Act of the Department of Labor'


An act of law reluctantly signed by former U.S. president William Howard Taft in 1913 that created the Department of Labor and the Department of Commerce, dividing the former Department of Commerce and Labor.

Investopedia explains 'Organic Act of the Department of Labor'


Taft was reluctant to sign the Organic Act of the Department of Labor into law because he felt that leaving the Department of Commerce and Labor as one entity would be a more efficient way of running the two departments. Taft believed that the two departments had very similar goals, but he signed it into law on his last day in office because he was certain that his successor, Woodrow Wilson, would sign the act into law anyway.



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