Administrative law is created by administrative agencies of the government through powers granted by the legislature. When the legislature feels the need to control or monitor a particular problem or industry, the solution is often to contact an administrative agency. Because the legislature often lacks the time, staff, and expertise to oversee all of the legislation it enacts, these duties are delegated to an administrative agency.

An administrative agency embodies the powers of all three branches of government. It serves an executive branch function by investigating and enforcing the rules of the agency. Many administrative agencies have the authority to adjudicate disputes over violation of agency rules. Some administrative agencies employ special judges to hear these cases.

An administrative agency also has the power to create rules and regulations that further the legislative purpose. The scope of the powers given to an administrative agency is found in a statute known as an enabling act. Through the enabling act the legislature defines the purpose of the administrative agency and the limits of its authority.

Administrative agencies appear in all areas of the law. Typical agency regulations are found in the areas of pollution, housing, health, employment discrimination, criminal corrections, and workplace safety. The regulations promulgated by these agencies have the force of law and are treated as statutory enactments. Most states have a compilation of agency regulations separate from the state's enacted statutes. The federal compilation of agency regulations is known as the Code of Federal Regulations (CFR).

Lawyers who work in the area of regulatory compliance often employ paralegals. A lawyer who practices in the area of housing development may have frequent dealings with the federal and state housing agencies. A lawyer representing clients who buy and sell securities must be familiar with the regulations of the Securities and Exchange Commission. Paralegals can be of great assistance in researching and interpreting agency regulations in both these fields.