The president, during his first term, picked Mr. Perez to lead the Justice Department's Civil Rights Division, a position he has held since 2009. Mr. Obama had been known to be considering Mr. Perez to lead the Labor Department in the president's second term.
Hilda Solis, Mr. Obama's first labor secretary, resigned in January.
The White House official credited Mr. Perez with managing Justice Department efforts to reach fair-lending settlements with banks on behalf of alleged victims of unfair mortgage-lending practices. The official also said Mr. Perez had led efforts to enforce human-trafficking laws and stepped up efforts to protect the rights of veterans.
The nomination of Mr. Perez as labor secretary comes as some congressional Republicans have raised questions about his alleged involvement in the Justice Department's decision to stay out of two lawsuits against St. Paul, Minn., in which private plaintiffs alleged the city defrauded the U.S. in its use of housing funds.
Republicans have questioned whether the Justice Department stayed out of those cases in exchange for St. Paul dropping an appeal pending at the Supreme Court in a case that civil-rights advocates had feared would undercut enforcement of U.S. housing-discrimination law.
Mr. Perez's nomination also comes a week after the Justice Department's inspector general found continuing problems with unprofessional conduct in the voting section of the department's Civil Rights Division.
Investigators concluded that the voting section, which reviews reports of voter intimidation, among other things, is split into two ideologically opposed camps that have spent years undermining each other due to their politically differing views of election law. The report said the problems predated the Obama administration, but that they still exist.
In a written response to the inspector general, Mr. Perez said the voting section he inherited had "low morale and an unacceptable degree of staff conflict." He said the division has overhauled hiring procedures and improved management practices.
Mr. Perez, who is Latino, would help diversify a cabinet that some critics have said is disproportionately white and male.
Mr. Perez previously headed the state of Maryland's Department of Labor, Licensing and Regulation.
Source: Wall Street Journal (03/18/13) Brent Kendall
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educational and should not be considered legal advice on any specific matter.