Transcripts For CSPAN Acting 20240703

All right, microphone on. The subcommittee on labor health and human services, education and related agencies, please come to order. Today, we are having a hearing on President Joe Bidens administration, 25 budget request for the department of labor. Im happy to welcome acting secretary, as we grow, we are looking at a bipartisan manner. This is passing into law by the president. Th a small minority is able to derail the appropriations processpolicy riders, looking at the cuts with the Workforce Development protection program. A small minority is able to derail the appropriations process. House republicans did that last year. Repeatedly threatening government shutdowns. It hurts the constituents, the communities, intended to be served by another federal program. Causing federal agencies to waste time and money, instead of making sure that every dollar is used effectively, as intended by the laws that we pass in congress. We need to do better. Acting secretary, this budget is a good step. Acting secretary, you are joining us today, to talk about the fiscal year 2025 budget for the department of labor. We have had 27 months in a row of unemployment below 4 . The longest stretch in 50 years. I know that we still have more work to do, to give americans the Economic Security that they need and deserve. Over the last few years, democrats and republicans came together to pass legislation, and invest in manufacturing. Helping us compete against china, and that growing infrastructure, and investing in our work lives. Home state of wisconsin, microsoft announced that they would be investing 3. 3 billion for an Artificial Intelligence data center conference. Creating thousands of paying jobs. We have Education Programs for the next generation. This budget built on this progress that we have made, will help to continue to build a Strong Economy that helps for workers. It poses investments necessary for training the workforce that we need today. And, the evolving needs of employers. The budget also requested resources to maintain critical investments in our nations core workforce training programs. These programs support workers and families, providing them with access to highquality training programs, as they seek to grow their careers. We are working to improve the nations public workforce system. Boosting the Community College system, help offenders land on their feet, and addressed the employment and Training Needs of native americans, migrant and seasonal workers, and other workers. Highquality workforce training programs, are a proven path to accessing a job that pays a good wage. It has good benefits. I am pleased that this budget continues to support these important programs. The budget also includes a request, a proposed increase in funding for the registered apprenticeship program. I have been proud to lead the effort to reauthorize the National Apprenticeship act. With my colleague senator, and im pleased that the department is proposing to expand apprenticeships, and increase opportunities, for individuals who have historically not had access to apprenticeship programs. Including women, people of color, and underrepresented groups. Apprenticeship programs, provide technical instruction, and onthejob learning experiences, to ensure that workers are well prepared for job. According to the Wisconsin Department of workforce element, employers in wisconsin, train around 10,000 registered partitions, looking at nearly 200 occupations every year. Supporting the federal register apprenticeship program, will help wisconsin and other states continue to strengthen and grow their apprenticeship programs. The budget includes funds for the department of veterans employment and training service. This provides Workforce Training Services for our nations veterans, and separating servicemembers. These resources help ensure that servicemembers can transfer the skills that they have learned, serving our country, to land a family supporting job. Helping them successfully transition into the workforce. The departments office, provides Critical Services to military spouses, as they make their transition to civilian life. I look forward to learning more about how the president s budget request, would support the workforce Training Needs of them and their families. Im pleased to see the increased investment in our division. The proposed 35 million increase, is needed to recover the hartford eight wages earned to workers stolen by their employers. Last years wage and hours, able to recover more than 156 million in federal minimum wage over time, ode to more than 135,000 workers. In wisconsin, wage in hours, identified 3 million in wages owed to 1400 workers. This front think is also critical to enforcing child labor laws. Ensuring that we are working there, doing safely and appropriately. There have been egregious instances of child labor violations. Appropriations can think that they can ignore federal child labor laws. Kids will continue to be put at risk. This is children working in slaughterhouses and meat packing industries. Historic lows included, i believe we must provide an increase for the agencys important word. The budget includes an additional 23 million for the vital work of the Arctic National Safety Health administration. We have just marked workers memorial day on april 28th. Remembering workers who have died or have been injured on the job. The latest statistics, indicate that there were 5400 fatal workplace injuries. This is up nearly 6 from the prior year. 5486 too many. We believe the proposed increase would move us in the right direction. This is part of the Employee Benefits security administration. They would help secure workplace benefits, looking at what their families are owed. Im pleased to see the increased investment of 46 million, for the bureau of International Labor this includes the labor commitments of the trading partners. This is including china. We can strengthen the Economic Security of these communities at home, working to work at these labor abuses abroad. Acting secretary, thank you for being here today, to talk about the department of labors important work. In a moment, im going to turn it over to a Ranking Member for her remarks, following, we will hear from you. After that, the senators will have a few questions. Thank you, chair baldwin. This is the first labor Budget Hearing that we have had since we took over the reins of the labor hhs acting secretary. Thank you for coming. Secretary walsh was leaving the department. Thank you for being here today, to describe fiscal year 2025 Budget Priorities for the department of labor. First of all, i will say that i have had some concerns with the department. There seems to be an agenda to push new regulations that propose layers of red tape. In some cases, workers choice. To be clear, not all regulations are bad. We have violations that the chair was talking about and keeping hardworking West Virginians, safe. Thank you for your efforts. This department of labor should be focused on workforce training, and creating new jobs. Not mandating the burdens that take away from the work responsibility. For example, the way they are changing the rules, governing who qualifies as the independent contractor, complicating a six factor task. Jeopardizing the ability for millions of americans to work at our needs and schedules. Freelance workers, and self employed workers, need to choose their own hours, to work around other life priorities. Taking care of children. In other regulations, creating more complexity. This is the socalled esd investment protocol. This is the inventor mental, environment, and social investment decisions. Involving more life savings. They need to optimize the returns to afford life in retirement. This is part of the Financial Experts to ship potential gains away from the american retirees. Into the white house, and the radical claimant agenda. Just last month, your department furthered its ability. Drastically, this is the threshold. Starting july 1st, West Virginia businesses of all sizes, looking how to absorb the mandate. If you hours, some cases, instead of doubling down on this agenda. One area, and the chair also talked about this. We are looking at the inquest and increase of 2020. Im concerned that your budget would use these. This is a green jobs agenda. Im looking at the opportunity, playing key role in that mission. I support the apprenticeship programs. Im concerned about the departments proposed release from late last year, to completely overhaul the regulations, looking at the apprenticeship program. These proposed changes, it would make an already complex system, more difficult for employers to navigate. It could reduce apprenticeship opportunities for workers across the country. They have a lot of were the apprenticeship opportunities. They dont fit the current registered apprenticeship model. Im glad to see the innovation, to expand those opportunities to the programs and fields. 2022, securing funding from the university, to establish an initiative through the works. Training rest virginians to compete for good paying, long term jobs across the state. We have been expanding and strengthening the Early Childhood education workforce, through apprenticeships. Giving the educators a clear path to successful careers, opening the doors of higher quality, better coverage of care. Hoping both families and childcare workers in our state. This should be focused on strengthening Workforce Development strategies, helping all americans get the skills they need to succeed. Acting secretary, i hope you will work with this congress on that goal, as we work through this process. Thank you again for being here. Thank you, senator. Our witness today, acting secretary of the department of labor. Acting secretary, thank you for joining us. You have five minutes for your opening remarks. You may begin. Thank you so much. Chairwoman baldwin, and members of the sub committee, thank you for the opportunity to testify in support of President Joe Bidens fiscal year 2025 budget west for the department of labor. As the acting secretary of labor, i get to travel the country to meet with workers. Workers like mariah, a single mom, who was living paycheck to paycheck, worried every day about how she would have enough to get by. She went to her local social services office, to apply for medicaid and snap benefits. That is where she noticed a flyer, for a Job Training Program in the pipe trades. Today, mariah is in a good union job. She has quadrupled her income. What struck me about mariah, was not just how much a good income meant to her, it was the pride that she felt, putting in a hard days work, and getting rewarded for it. And, the pride she saw in her childrens eyes. It is undeniable, good jobs change lives. This 13. 9 billion request will help more people like mariah get good jobs, that can support families, lift up communities, and bring dignity and pride that are core to the american dream. I want to frame the request under two priority areas. First, pathways to good jobs for all of americas workers. I have met with thousands of workers, working programs that work. Programs exist because we have invested in them. Thats why we are requesting investments to develop and expand approving models as this chairman said. Connecting workers to the good jobs that they want and need, and employers, to the workers that they want. For example, we are requesting 1 billion for the Career Training fund. That investment would help as many as 750,000 able, who do not see fouryear college, as that path. Evidencebased, high quality training programs, for actual jobs in their communities. Workers who complete high quality programs, dont end up with a job search. They end up with a good job. We seek 335 million for apprenticeship programs. Registered apprentices, apprenticeships, provide training for the employers. They allow workers to earn while they learn, and the increased job pathways, for underrepresented groups, including women, people of color, veterans, and individuals with disabilities. When i talk to business owners, many of them tell me that the top concern is maintaining workers. The investments in our budget request, is how congress and the department of labor can tap into the talents and skills of all of americas workers. Making sure that the supply of skilled workers, meets the demand. Right now, and well into the future. The second priority i would like to highlight, is the department of labors mission to protect workers. Including and especially, those most vulnerable to explication. Too often, employers who hire 13yearolds, working in hazardous conditions, failed to pay workers overtime for 60 hour work weeks. Or, whoever puts workers at risk of losing their limbs or lives on the job. They do it because they believe they will get away with it. No one will stop them. They can operate in blatant disregard of the laws that congress has passed. Not on our watch. Thats why we are requesting modest but important increases for the departments Worker Protection agencies. We can do this without dedicated public servants. Combating child labor. Ensuring workplaces are free from safety hazards. Benefits advisers who answer the phone, and in panic, patients have been looking at insurances by the Health Insurance company. 35 million for staff to combat wages for child labor. Additional 23 million for high hazard work leases. Protect whistleblowers, and give employers compliance assistance actions. This has been essentially flat funded for more than a decade. This is part of the equity addiction act. When Congress Passes laws, we should make it going. All the budget request, make sure that workers can come home safe at the end of the workday. This is truly changing lives. We are looking forward to these questions. Thank you, round of five questions. That is starting with myself. Acting secretary, i am deeply troubled by the industrials. Over 200 workers on the facility in wisconsin. This is within mexico. We have been made by workers in his home state for 175 years. This is the manufacturing circle of the powerhouse that it is today. Im being told that there is a longer welcome. Average worker at the plant, receives 52,000 annually. 62 million hundred dollars in stock last year. Four times more than the 150 Million Dollars more, reducing their workforce. Moving production to mexico, this is the workers that have been doing well. This is part of Institutional Knowledge that the plans workforce has developed over decades of building agricultural equipment. American workers are the best in the world. They have unfair advantages when it comes to competing against low road employers. Can you start by expanding on the budget . This is a fair mobile worker, and what they expect at home. Thank you so much. This is yesterday. The race to the bottom is looking at the right investments. Creating a race to the top. We are looking at the agencies. This is part of the idea. The interests of welfare working people, is intricately tied to the welfare of workers in united dates. Too often, i also hear what you have suggested. We are demanding that we take our work to another country. This is intended to create a more level playing field. They are looking at research and advocacy, to make sure that conditions like child labor and forced labor, have not been condoned. Made with these conditions, they tried to enter the United States. They do not allow that. We have also been engaged in helping to monitor and assist the country of mexico, with the implementation of the united dates, mexico, canada agreement. Workers in mexico also have their fair and free choice to joining in, and they are protecting their working conditions. Again, so that we can really end the race to the bottom. Thank you for that answer. We appreciate this important work to level the global playing field, and discouraged playing companies, we also want to recognize everything from them losing their jobs. I would like to followup on this act. This is an important law that followed the communities plan, providing Services Affected by massive layoffs. Unfortunately, in the case, not every Company Complies with it. The department of labors authority is going to enforce the law. They need to be strengthened. Congress is trying to strengthen the act for this congress. Yes, absolutely. Thank you. We have discussed the desire to increase Workplace Violence. Especially for our nations nurses. Unfortunately, they continued to suffer from rising levels of Workplace Violence. 2023, reporting from National Nurses united, found that nearly one in five nurses have changed or left their jobs, two to Workplace Violence. With wisconsin facing a shortage of 20,000 nurses by the year 2040, we must do all that we can to protect, retain, and strengthen the nursing workforce. I know they have looked at some steps to issuing a proposed rule on Workplace Violence, healthcare, and social assistance. Can you update us on the actions that the department is taking now to provide all nurses with actions from work is violence . Is this what they deserve . Describe your efforts to accelerate the issuance of this proposed Workplace Violence standard. Thank you so much. As you know, Workplace Violence is too often the reality for many in our healthcare settings. Recently, i made a trip in a community, which there was a Home Healthcare nurse that had been killed on the job. I also meet with nurses, and look at the nursing programs, when they are passionate, and they want to do the job. They recognize that violence is a reality that they should face. This simply should not be the case. This points to something that we believe really deeply at the department of labor. Sometimes, labor shortages, or people not staying in jobs, taking from what they want to do, is a result of job quality issues. We need to make sure that every job is a good job. Our efforts include creating a workplace standard, that would work to help reduce and eliminate the incidences of Workplace Violence. We have gone through the initial Small Business review process. This is always something that our ocean is going to wire. We are going to do everything we can to issue a notice rule to do a weekend. Senator . Acting director, i wanted to ask about two of the rules that i brought up in my next statement. Over time, i want to start with that. Just two weeks ago, the new level of 59,000, im trying to ask you this question really quickly. Talking with someone whos going to be talking about this, deeply affected. The 59,000 goes upright to another figure shortly. Is that correct . Thank you very much. Can i just say one thing . I know that you mentioned some of the workforce investments in West Virginia. We also have a strength in Community Colleges grant for West Virginia, and the university partners. In connecting it. The thing is overtime. Basically, what will happen, in july, we will be using a current methodology, and a bump up in overtime. 65 increase. The new methodology, will not kick in until january 1st of next year. That is projected to be 75,000 . Is that correct . No. 15,506 five. This is an example. We are getting comments. We really Pay Attention to them. Several of the rules, we are giving employers a rampup of time. The july 1st ramp, is not new methodology. 58,000, based on the 35th percentile methodology. Going into effect january first. We have a lot of comments for this. Threatening to look at worker flexibility. Little or no effect of what actual employees are going to take home. This includes colleges and universities. We have tuition and profits abilities. How do you justify 65 increases . This is four years ago under Donald Trumps integration. Is that correct . One of the fundamental parts of labor, is looking at the wellbeing of workers. They have been overtime. Too many workers that basically were working over 40 hours a week. They could not be compensated for it. They are giving people titles, managers, and supervisors. They were actually doing frontline baseline work. Overtime, the law for the family standards act, remains beautiful. If you get a lot of pushback on this, you had your comments when you first roll it out. You had a lot of smaller businesses. I dont know you how you are going to keep track of them all. We had several sessions. 27 virtual listening sessions around the country. More than 2020 22. We conducted nine separate listening sessions, with Small Business stakeholders. It is important for us to engage and listen. We received this for 33,000. Again, we have two tiered implementations. We have Small Businesses. This is all tied into it. We have as much assistance as possible. We are incrementing the rules like this. We have different tools. We stand ready to assist in these players that needed in your state. Let me make sure that i get the process. It does go to the 58,000 on july 1st. This is part of the old methodology. It will close at the same level. That doesnt happen until january 1st, correct . Give me one second. This is slightly behind you. Is on july 1st, using the existing methodology, looking at the current use rates. They have responded right. I know it wont surprise you to hear that one of the issues are out here frequently. This is from Small Businesses in New Hampshire. They have difficulty finding seasonal workers. New hampshire has consistently for a response, looked at covid. 2. 6 . Is it below 2 . This is where we rely on tourism. We have seasonal workers. We need seasonal workers. One of the things we are hearing, we have more employers replying to the department of Homeland Security for that reason. They have to be approved by the department of labor, to certify that there are no u. S. Workers. They have had trouble getting that certification. Processing delays at the department of labor, what are you doing to address that . What do we need to do to address this budget to make sure that you have the funding you need to help make sure we can approve these workers running their businesses . Thank you very much, senator. I understand the importance of the program. Your statement, many others, and multiple reasons across the country. This is a program that has grown in demand. In fact, in the first four days of january of this year, we had an application for four times the number of visas than the maximum number. Maximize just how dire the need is. I have also focused, as i came in depth terry secretary, increasing what we can do the functioning of how we process. I have heard that they have different processing. I would love to talk to you further about those of you who struggle in your home state. Senator, one thing that i will say, the department of labor, the way it is funded to process these claims, has no relationship to the number of claims that we get. As the number has gone up, we have remained flat funded. That is why i am asking. You need in this budget, we have different approvals. This is a two part process. One of them is getting worker certified. The other, we dont have enough in the program. We are looking at the nationwide Unemployment Rate. This is a good problem to have. We are not producing enough workers to fill the jobs that we are creating. We have to figure out how to do that. That role, ensuring there are enough visas available to employers, is really critical. The budget request, does include 1. 8 million for the staffing processing. Keep in mind, the overall budget request, comes in from the fiscal responsibility act. Im very happy to explore with you, other options. Something we have floated in the past, looking at the flavoring of some fees that have been submitted, again, leveling up with that increase. Im happy for the other ideas that we can process. In New Hampshire, we have a federal action. Really struggling to recruit corrections officers, and other employees that they need. Part of the problem, there is a lack of parenting and salaries that have been offered by local agencies. They compete in front of companies in the region. This is the rest of the locality pay program. This is local salaries in the area. This is from a statistical area. The bureau of labor statistics, said that the current wage survey model, is not capable of producing reliable salary estimates for micropolitics, to statistical areas of rural counts. How can we encourage the bureau of labor statistics, to explore ways to address this . We have so many rural areas in New Hampshire, and across the country. This is a huge problem. People are competing with an area like that. We get thrown in with boston. Theres a big difference between what is happening in hampshire with pay, and what is happening in the boston area. What can you tell us that the bureau of labor statistics can do to help us deal with this problem . Thank you, senator. This is definitely the issue that we are seeing. This is a moment where we have a tight labor market. This is resulting in workers with more choice. Employers have been needing to recruit, retain, and competing on wages. This has had some positive impacts, in terms of workers, and their wages. Especially one thing we have seen since President Joe Biden came into office. Real wages rise. Especially for low income americans. More money in the pockets of work families. Im working with you. We want workers to do better. The federal government has to keep up with that pay scale. Thank you. Thank you. In december, the apartment of labor, proposed significant and controversial changes to the National Apprenticeship system. Learning other issues and proposed rules, knowing that they would eliminate apprenticeship programs, that face Program Completion on the mastery of skills, rather than an explicit time requirement. Competencybased apprenticeship programs, is a very important part. This is particularly in the areas of healthcare, information technology, and education. We file competencybased programs, often have a higher success rate than timebased hybrid programs. Over the past four years, the percentage of apprentices, that failed to complete hybrid or timebased timebased apprenticeship programs, we have doubles of competency programs. I dont understand why the administration, made the decision to remove competency based approaches. This is to the apprenticeships. Could you explain what the rationale was . Thank you, full Ranking Committee member. Good to see you. Wide agreement, apprenticeships have been proving the ineffective model, helping them get the skilled and incompetent employees that they need. Creating opportunities for people who might not otherwise have seen themselves in jobs, or be able to stop what they are doing. Getting the training they needed for another job. The earned and learned models for that. We have expanded those apprenticeship programs in numerous industries. Healthcare, i. T. , education. We have printer ships in over 30 states. We continue to expand that. If that is part of the request. I think if you are referring to the proposed rule about this, our goal is not to limit the options for expanding apprenticeships. It is to make sure that those programs continue to have the standards that have made them everything. This is them also keeping themselves. This is going to measure the confidence. This is not going to be the arbitrary amount. Let me switch to a different issue. This is absolutely the plan. I hope that you are recommending it. We have an additional 64,716 thesis action for this fiscal year. I want to switch to another issue that i am hearing a lot about. In the state of maine, from our proprietors and first responders. They had aspects of the new Emergency Response standard. This includes february. They have huge concerns about compliance costs. We have training requirements for this proposed standard. Indeed, they have estimated nationwide compliance costs. They are looking at 100 million per year, for volunteer fire departments. When im talking to the larger cities, they have fewer problems with complying with the standards. You can agree with working with small volunteer fire department. This would hurt public safety, rather than help them. Going back to the caps, in the simplest ration, we have the use discretion. This is the department of Homeland Security, partnering with us, making sure that we are within the discretion. Congress, ultimately has the authority. I will definitely commit to you with all stakeholders. First responder forces, they are so vital. Both, making sure that we hear them. We are producing a standard that keeps them safe as well. Thank you. Thank you, vice chair. Thank you, acting secretary, for coming here and joining us today. They have a really crucial charge. It protecting workers who are truly the back of our economy. It should not be controversial to say that we have all workers with good benefits and wages, with fair treatment from their employer, and the safe workplaces. The department does crucial work on those issues. Cracking down theft, ensuring work lay safety, and in some cases, fighting discrimination. Im pleased that you are here today, to talk about what resources that you need to support our workers. Let me start with a topic that i have been particularly concerned about. This is the rise in child labor. Number of children employed in violation of federal law, 80 since 2019. Record number of businesses have been fined for violation i actually helped to combat child labor, and strength of the law. I know the d. O. L. Is already doing a lot to enforce the existing child labor protections. Can you talk with us about what the funding levels in your budget request would mean in real terms for child labor attributions, and commitment . It is very good to see you. Thank you for raising this very important issue. As everybody knows, we have seen a rise in child labor. Part of the reason, is because the department of labor is doing our job. We are exposing these practices, putting a stop to them. Issuing penalties, using the full authority that we have. Not just penalties, but using hot goods, and other ways to ensure that goods that are touched by child labor, companies are not able to profit from it. The budget request, we have the budget increase of 35 an hour for the division, with 7. 5 million of that for child labor. We have to keep in mind that the solicitors office, and the attorneys that advise on cases, include litigation to drive home the seriousness of enforcements. They have also been funded. Both of those are part of the funding request. We simply cannot stop this gorge of what we see, which has already been matched by 13year olds working on the kill floor of a meatpacking plant, on the night shift, with dangerous chemicals. A 60yearold who recently died in a sawmill. It is unconscionable that this is happening. The department of labor often stands as the most important work against those kinds of practices. The budget request is meant to stay within the bounds of the fiscal responsibility act, but also using our capacity to invest. You are asking for the Witching Hour division, and the solicitors that are working together for the more compact list . Thank you, that is so important. Another issue that we are focusing on, combating wage theft. Workers of the full wages. Some companies in the country, denying workers tens of billions of dollars, in a hard earned pay each year. This is going to include the wage recovery act. Putting them back into workers pockets, protecting their right to fair and timely pay. Strengthening account ability for the accreditations. I want to ask you today, what is the department of labor doing right now to fight wage theft . We are making sure that they get a just days pay for a hard days work. We see the violations and the failure to pay the minimum wage. The majority when it comes to wage theft, are overtime. They are working over 40 hours. Our investigators, are in the field every single day. They are uncovering these types of violations. It should be obvious for employers that choose to violate basic labor laws, they will go to great lengths, to prevent those practices from being found. It is very important for the department to be able to gain the trust of workers, to learn about what is going on. Specific sections of the workplace, they are able to see that these records are being kept. What exactly is going on in the workplace . This is for those employers that decided it is cheaper to break the law. Chances of getting caught are slim. Consequently, if they do the minimal, we need to tell them that that is not the proper way. We are not going to allow those kinds of violations. It is also very important. We hear this often from other employers in that industry, who are complying with the law. They need to know that the department of labor will help them issue a level playing field. Thank you very much. This has been chosen, despite many positions offering significantly above average wages. We have a huge shortage in our state. Plumbers, electricians, mechanics, utility alignment, precision manufacturing, and many skilled jobs. Without more people pursuing these jobs, the workforce participation rate, will continue to decline. Everything from these increases will stall. The economic struggles will be part of the potential. Training providers, state officials, and employers, this shortage is not the result of a lack of opportunity within the training resources. It is largely initiated with awareness and exception of these jobs. Many people explore their career options. They are not aware of high wages, good benefits, and the longterm stability that these occupations provide. It is a little bit of astigmatism. If they are aware, there is a misguided view that these occupations are less desirable. That is really sad. Another stands on the importance of funding, we have supporting efforts to increase awareness of these jobs. We have benefits. We are decreasing any negative perceptions that they serve. Thank you so much. I understand tomorrow is your birthday. Happy early birthday. Thank you very much. I could not agree more with what you were saying. I see more from the company. We have to overcome a certain perception, both of the quality of the jobs, and in this moment, we have such historic investments in infrastructure, manufacturing, clean energy. Good jobs in every community. I think the reality, is that these are good quality jobs. The other part of this, one of the things that i hear, we need to do a better job of aligning the educational system, with this message. Too many young people here, the only right path is to go to a four year college. I meet with people across the country that say that that is not what i want to do. I want to work with my hands, and gain a trade. Making sure that overall, those of us who are trusted messengers to young people, are also saying that there is another path read this is a viable path. It is very important. I hear from people who are finishing an apprenticeship program. They are in a career trade. If i had known that this was available to me years ago, i could have started on this secure path of a good job, benefits, good retirement, a long time ago. We have work to do right there. Just working with you on that, it is something we are working on crossing administration. Something that the secretary and i talk about as well. Everywhere i go, i try to raise awareness about that issue. I think added investments in the actual training programs, reach communities that have been left out in the past. They also help to create a climate, in which people understand that these are real options for them. We have great training centers. We are not liking that at all. We are getting the students in there with the pride of being in there. That is kind of hard to buy. In addition to getting the word out about the potential careers, it is also important to properly train. I am pleased that the department is seeking the increase in strengthening Community College Training Grant programs. This is for fiscal year 2025. We have some great Community College systems. They did some outstanding jobs targeting specific needs for our state. Many of the Community Colleges are continuing to work with companies, to fill the training gaps, and the technical jobs, so that we can continue to produce a world trained workforce. Do you commit to make sure that these grants continue to go to the deserving Community Colleges in the rural states, so that they continue to build the workforce gaps across all sectors . Absolutely. Budget request does include the modest increase in the strength in college grants. 100 , they are qt the overall workforce system, and one way that young people, and midcareer people, hear about opportunities that they might not have had. They will have the ability to gain the skills in the classroom that match the skills they are needed in the workplace. 100 . Thank you. Senator shots . Thank you, chair. Thank you, secretary, for being here. Thank you for the way that you engage with congress. Members disagree with you. It is always respectful. I just wanted to observe that it is not easy to do. Good job on that. I just want to quickly agree with senator murray about the office of the solicitor. Especially as it relates to child labor. We can disagree about a lot. The law artie exists. It is not sufficiently enforced. We have 100 cases that we are unable to prosecute for a month. There is a solution to that. We dont need a new statute. I want to talk to you about an area where we do need a new statute. We have a child labor bill that does something a fair amount more narrow than senator murray and senator casey. Simply, cranking up those penalties. As you know, 68,801 maximum penalty for a child labor violation that results in the death of a child. 68 grams. This is what we have in federal statute. Not only have Companies Made the judgment, the between the office of the solicitor, and overall resources for the department, that they may not get caught. If they get caught, it is not that expensive. It can be booked as a cost of doing business. If a child dies on a factory floor, 68 grand, capped. Im sorry to take such a long time to wind up. I would like to talk about the practical impact, of those penalties, and what would happen if those penalties were turned up to a point, where they have a financial hit. Thank you so much, senator. I cant say it any better than you have artie said it. Employers, they feel like breaking the law. We will see the cost of doing business. Even when those businesses have been caught, we have the consensus to reply. We do everything we can at the department of labor through the investigating resources, to expose legal practices, and to hold all of the companies that are responsible and accountable. We do appreciate the efforts of congress, in light of all the attention to child labor, and the cases that we continue to see. I need you to do everything in your power to make it more costly for those who break the law. Thank you very much. I just want to reiterate this point, it is labor. We have a difference of opinion. This is on a lot of things. Independent contractors, union organizing, regulatory questions. I think that we can all agree that there is no justification for a violation of federal law. Being so inexpensive, as to not be a disincentive. This is something that we ought to fix. We can pass by consent. Some of them must pass legislation. This is not the kind of thing that ought to get caught up in our prefundamental idea logic disagreements. Speaking of fundamental ideological disagreements, im moving on to the womens bureau. Continually, i am impressed. I talked to my staff. Im always suspicious about bureaus. This is to identify a problem. This is what we want to see fixed. They had to persuade me that this bureau is not just sucking people into a bunch of cubicles. They had done the important work. I would like to spend a little bit of time talking about what the womens bureau has done for the workforce, and women in the workforce. Thank you very much, senator. I think it is important to say that in many ways, women helped power the economic recovery that we have seen in this country. Last month, the Labor Participation rate for the primate working women, reached an alltime high. This is a high since we started collecting this data in 1948. Harry truman was elected president. In this economy, it cannot be overstated. At the same time, we have much more to do to tap into the full potential of women in the economy. One of the studies that the womens bureau put out, that is so important to note here, is that if our country invested in care, and the care infrastructure, and policies that support care, Like National paid leave, about 5 million more women can enter the workplace. This is worth 75 million of Economic Activity per year. Research, working in the space, working to tell us, not just what impact policies are happening. This is what impact of the policies and also what happens when we do not invest. The other thing that they put out are the grants called women in nontraditional occupation. And that is meant to make sure that women see themselves in the good jobs that they have been underrepresented in. It is almost mothers day. I want to think other working mothers who do this work. Our womens bureau is very much about continuing to lift up their stories and opportunities for them. Thank you, senator brian schatz. Senator kennedy . Welcome. Part of your job, madam, acting secretary, is to protect and support employees, is it not . Yes, sir. And do you believe that we should protect, do you believe passionately, that we should protect and support our employees . I am passionate about that, sir. Do you believe that we should passionately protect and support our employees at the fdic . I do believe that all employees should be entitled to fair pay. Including the fdic . Yes. Have you read the reason outside report, 244 pages, about the creepy old men at the fdic . I have not seen that, senator. Have you heard about it . I have not. Are you curious about it . Yes, i am, sure. Well, the report, the people who conducted the report, madam acting secretary, and i am surprised you have not followed it. They asked employees at the agency to phone in complaints. They have 6000 employees. 500, almost one out of 10 employees phoned in complaints. Many of them were sexual complaints. Sexual discrimination complaints. What one young woman said, my supervisor continuously sends me Text Messages with photographs of his , is that a labor violation . It is horrible. Another employee said that my supervisor required me to require recite the pledge of allegiance, because i needed to prove that i am an american. Is that a labor violation . Everything that you are saying is not acceptable in the workplace. The questions fall under various statutes. One young woman said, my supervisor sent me a text message saying, quote, get naked. I think that is unacceptable workplace behavior. One one young woman regularly commented about her breast. Another said that they commented on his sex life. Is that a labor violation . I think it is unacceptable. One young woman said in the complaint saying that a supervisor asked the following question, quote, does your husband eat you, close quote. Is that a violation . It is unacceptable. It is disgusting. What do you plan on doing with that. Do you think that all the Senior Management at the fdic should be prosecuted . I dont know if the complaint was made to the eeoc. You are the labor secretary. I know, from your behavior, you believe in protecting the employees. And yet, this, this is as egregious as i have ever seen and as i suspect you have seen. And i thought we already decided this was no country for creepy old man. Are you going to call for gruenberg, to resign . Only one or two things are going on. He was condoning this behavior. For the Biden Administration, does me too apply, except for the fdic . No, we have seen some people forced to work in unconscionable conditions. What are you going to do about the fdic . How will you protect them . They definitely deserve protection. This is the Sexual Harassment claims, they fall under a different federal agency. So you are planning to just ignore it . No. But i think it is important for agencies to operate under the authority that they have been given by congress. Wouldnt you want to ask mr. Martin gruenberg to resign . To quit . I think, senator, you said that the complaints have been made to the proper federal agencies. Not yet, but they are coming. I am asking you, what are you planning on doing, if anything, because it does not sound like you are planning to do anything to help these young female employees. I am happy to make sure that the eeoc is aware. You will not do anything about it as labor secretary. Let me say this, mr. Senator, i know that the people need a very Strong Department of labor. Our authority to investigate, and to end bad labor practices are bound by the authority that is given by you. These investigations occur at another agency. You are not going to do anything, are you . I will. You are not going to do everything within your power to help them. Thank you, senator kennedy. We are going to begin a second round of questions. I do understand that some people are trying to return to their opportunity to do their first round. For far too long, Many Americans were denied Health Coverage for lifesaving Mental Health services. I was proud to support Bipartisan Legislation that requires private Health Insurance companies to cover Mental Health and Substance Use disorders, just like they cover physical health. The department of labor plays a critical oversight role in securing parity compliance in employeebased health plans cover covering the plan participants. Supplemental appropriations that congress provided to implement this legislation will be exhausted by the end of the year. These funds have helped the Department Address parity violations, hold Companies Accountable and facilitate access to treatment. Acting secretary julie su, how will Additional Resources requested in this budget help the Employee Benefits Security Association help secure Substance Use treatments that wisconsinites and those across the United States help overcome the crisis that has claimed more than 100,000 american lives in the year 2022 . Thank you so much for your leadership. Today is National Childrens Mental Health awareness day. And this month is national Health Awareness month. At the department of labor, we play a very Important Role in making sure that individuals who need Substance Use Disorder Treatment actually get the coverage from the Insurance Company that they are supposed to get. At our administration, that is an increase of 14. 6 million, again, to stay under the cap that was there. And in order to continue to do enforcement, as you mentioned, in a field that is so important, the funding was about to sunset. I just want to give you a few examples of the kind of enforcement that we do here. I have spoken to several parents whose children needed some kind of Mental Health treatment and they were denied coverage for it. So, sometimes that means the family will simply forgo the treatment, often with devastating results. Sometimes, families will do everything they can, including taking a second mortgage on their home, going into great debt, to pay what is needed. We had a case in which a child needed inpatient Mental Health care. The family took out a second mortgage and ended up paying 200,000 out of pocket, because of the intervention of the department of labor, we got that amount covered by insurance. You know, which the families would tell us, that is basically lifesaving work. We have benefits advisers who answer the phone when someone is being denied coverage. Sometimes that intervention will result in immediate change. This is lifesaving work. And oftentimes, the impact of one Enforcement Effort has ripple effects, because once the Insurance Company recognizes what they are supposed to do in that instance in which we got involved, they will change the way that they approach future requests for coverage and each of our investigations is amplified. I cannot overstate the work of what they are doing as 1 and 5 Mental Health reports are being filed each year. I dont know if the data is even available. I cannot overstate the importance of the work. Thank you. We will give her a moment to get adjusted. I will then recognize the senator. I just got finished and i am heading down. Acting secretary julie su , thank you for being here. I wanted to express my concern about the department of labor operating without a Senate Confirmed secretary at the helm. Your nomination is opposed in a bipartisan majority of the senate and you will not be confirmed during this congress, despite the repeated requests to the president to put forth a nominee who can be confirmed. The Biden Administration has instead let you in place as acting secretary on an indefinite basis with no plans to put forth another nominee for secretary of labor. You have been listed on the white house website as a member of the cabinet, quote, in order of succession to the presidency despite having never been elected to any office nor confirmed by the senate to any cabinetlevel position, the white house believes that you are eligible to assume the presidency, pursuant to the residential succession act of 1974. I wrote a letter to president biden, along with 29 of our colleagues, urging that the white house clarify its position on this issue. I have not received a response to that issue. Do you believe that, if the need were to arise, that you are currently eligible to assume the presidency under the president ial succession act of 1974 . Senator, it is the honor of a lifetime to be nominated by the president to serve in his cabinet. Absolutely. Do you believe you are in the line of president ial succession . Prior to be being nominated i was the secretary of labor in 2021. When my predecessor left, i became the acting secretary i am aware. My question is, do you believe that you should be in the president ial line of succession . Yes or no . I appreciate the confidence of the president in me. We have talked about the work of the department. My question is specifically about the president ial line of succession. Do you believe, yes or no, do you believe you should be in that line, having not been confirmed for this position. Yes, you do believe that you should be in the line of succession, if that were to ever happen . Or no, you do not believe that. I need to say two things about that. Senator, the first is i have a lot of questions, but i thought that would be a really easy yes or no. To me it is no. You have not been confirmed and you should not be in the line of succession. That is a big deal. That is a simple answer and unfortunately, i have not gotten that from you. I have been concerned about a number of the roles that have been issued in the department of labor, starting with the new overtime rule. And i know that we have discussed that the increases the minimum salary threshold for the executive, administrative, or professional overtime executive by 25 65 . It increases the threshold for a highlycompensated employee by 41 , from the 2019 goal. I have heard from numerous stakeholders in alabama about these huge, detrimental impacts that the rule will have on them. Many of the small colleges in alabama, which include hbcus, as we have more than any other place in the nation, as i hear from them about dealing with this, it is going to have significant ramifications. My office has spoken to schools that do not have large budgets or endowments but are facing hundreds of thousands of dollars for the upcoming academic year, having to implement and reevaluate salaries across the board, due to the permissions. At the same time, those schools are unable to lockdown their Incoming Freshman classes or fully informed decisions or budgetary choices about the upcoming academic year. You look at that, you know, this role is obviously having a huge impact, in addition to all of those things, and Small Businesses in alabama. To me, the Small Businesses are the heartbeat of the country. They are what allow people to achieve the american dream. Given these realities, do you, at the very least, have respect to the timing of this rules implementation across the country . So, senator, i agree with what you said about the importance of Small Businesses on the economy. There is no question. We engage with Small Businesses and also in our overtime rule. In terms of the timing you are supportive of that . We have 33 comments, i believe that is the comment for that overtime rule. And we do hear from Small Businesses that do rely on the department of labor, especially in moments where they need to recruit and retain, and keep workers, by making sure that their conditions are competitive. Let me address the timing. That is one thing, i have already talked about this, we have heard comments about the need for some time to come into compliance. So, the overtime rule goes into effect in two phases, the first is on july 1st. It is a bump, based on the current methodology, not the new methodology, but the current rule, multiplied by current wage levels. And the other bump, the 35th percentile, in the new rule, is going to go into effect on january 1st, 2025. I hope you will take these things into consideration. I am out of time. I heard my colleague from New Hampshire mentioned, there is a big costofliving difference, as you mentioned, from New Hampshire, boston, when you look at the lower cost of living in alabama, there is a detrimental effect that occurs. I hope that you will take all of those things into account. Thank you very much for your time. I just want to say, our formula takes all of that into account. I can follow up with more if you want to hear more about that. Thank you, senator katie britt. I wanted to mention, from my opening statement, in 2022, the Employee Benefits security ministration issued a final rule that allowed fiduciaries to consider environmental and social factors when making decisions. What brought that decision forward . And was that a requirement, from the president , to have that all throughout every department, considerations of Climate Change . Because, as we look at the Social Security trust fund, which a lot of people are relying on for retirement, and also their retirement plans, in my view, the best way to keep our retirees, as they move into their senior years, in the best possible position, is to have the maximum financial benefit accrue to their plans, regardless. I could see if things were illegal. But if you are talking about a National Natural gas Company Oracle company that is really maximizing profits. This rule, if this takes it under consideration, that would eliminate it as a possibility. I very much appreciate the question and the way in which you asked it. Because i agree, i agree, of course, it is best for retirees. For their investments, to give them the best financial benefit. All of our enforcement work is about that. This role is consistent, it does not mandate, but it does allow investors to take into account these factors, especially, i was just in a meeting with many investors who actually make these decisions. Sometimes, when those factors, labor principles, environmental outcomes, those factors actually make the investment more profitable. And so what our rule did, the Prior Administration took away the ability to consider those factors so that you cannot look at them. Our rule restores the ability for someone making those decisions to look at what will be best for the actual situation. In my opinion, this politicizes a very important part of our Financial Fabric in this country. And i think, the pressure, because you did not answer the question as to whether the pressure to move forward with this rule came from the white house or from the financial institutions, are you aware that there are lot of bsg funds that have shuttered, or close down, because they are not generating profits . Who made the decision to move forward . Was this a decision that you made or the former head of labor , or the white house . I need to say, again, the politicization occurred in the Prior Administration when they said, you cannot consider this. The point about being able to consider all factors is something that we heard, from those people, those financial advisers, those making the decisions, that they wanted that. But because of the role, they were afraid to do that, even when it would have been in the best interest of the accounts, it would result in the maximum investment return. Our rule was about more flex ability. In terms of who made the decision, we went through the process for rulemaking that we always go through. We are thoughtful, judicious, we take comments, we listen to them, and then we produce something, you know, that we believe is in the best interests, not just of the account holders, but also those who have asked for more electability in their decision making. Thank you. Senator joe manchin . Take to you, for being here. Recently, the president vetoed the legislation overturning the National Labour Relations Board rule. The rule will put the franchise model at risk. I think that you know how i feel about this. Small businesses are part of the economy and our communities, especially in West Virginia, which we love dearly. We are more than 98 Small Businesses. One out of every three franchise owners say they would not own it a Small Business without the model. Number one, that is tremendous. 1 and 3. The study found that the policy led to 376,000 fewer jobs and 33 billion in lost output across the economy. A federal judge has currently blocked this rule from taking effect. I am concerned if it does take effect. So, my question would be, there continues to be bipartisan concern with what they are proposing, what does your Department Plan to do to curb the economic output loss if this were to go in effect and are you still pushing for it to go into effect . Senator, it is nice to see you. I will say this, that is a separate entity from the department of labor. The joint employer role, is not something that the department of labor has pursued, or that we have put on our agenda, i will say the president , he vetoed it. We tried to get rid of it. He must believe, and the Administration Must believe in the way the rules have been. That is not a rule that the department of labor pursued or put into effect. Can you acknowledge the job losses that came, when they implemented it . Senator, i dont have any data about that. I will acknowledge the Important Role that franchisees play. My own parents had a franchisee business. I understand, and i have lived, the benefits that such a business if you would do me a favor, can they check and find out if that is accurate . The amount of jobs that have been lost before, that the statistics show, and the amount of lost revenue for the economy . Maybe that will cause the president and his administration to take a different look at this. Since the president came into office, 15. 4 million jobs have been added to the economy. At the same time, the Unemployment Rate remains very low. It has been under 4 for 27 months straight, and i know that has already been said, as well. We are in a moment of tremendous job creation, in no small part, because of the president s investment in the american agenda. This body was very critical in that. The bills have all been passed in a bipartisan way. But the way that we wrote it, that is different than the way they are being implemented. They are overstepping the boundaries, in the way they are implementing it. You are trying to implement a bill that you did not pass. We all wrote the bills. We know what art in them. They are expanding the positions. That will exasperate the position that we have taken. Bring manufacturing back to america. You cannot bring manufacturing back if you relaxed the rules. And if you dont try, all you are doing is promoting the chinese dominance in the market. Final question, the department of labor was addressing by streamlining the process of hiring vetted International Workers in high demand industries, science, technology, engineering, and math. This is an important tool that helps workers in understaffed industries. Despite having the authority to schedule a list, the department has not updated it to include professional nurses and physical therapist, since 2005, and they have not updated the list in 20 years. I was please see how to schedule and modernize the list, including s. T. E. M. Operations, for the designated labor shortages. What is the timeline to schedule a list . I am glad you are taking this seriously. We did do an rfi on this to find out exactly what we need to do. I can get back to you more with the timeline. I thought something that you are going to ask me about was a rule that we wanted to get done, that we did get over the line. We have our silica rule that will save thousands of lives and prevent injuries. I do want to thank you for that. Im so sorry, i want to thank you for that. Because it did help. Thank you, senator joe mentioned. That will joe manchin. That will end our hearing. I want my second round. Senator kennedy wr recognize. Again, madam secretary, i am a little confused by your answers. I think that we have established, number one, that many supervisors and some members of the Senior Leadership at the fdic are pigs. They are sexual predators. They are bigots. Number two, this issue has been out there for some time, since the wall street journal broke the story. At least six months. And so far, the department of labor has said nothing. Zero. Zilch. Not a thing. Like you said, you have not even read the reports and you are unfamiliar with the issue. Maybe i am overstating it. If i am, directly. Number three, madam secretary, you have a long history, of passionate activism on behalf of employees. So, here is my question. Are you or are you not going to use your Legal Authority and moral authority to open an investigation of the fdic and help those young women over there . And help those young people of color over there . Senator, i am deeply concerned, any time a working person goes to work and does not get the dignity and respect that they deserve. I am charged with enforcing certain laws, based on the powers that congress has given to the department of labor. I appreciate that you are raising an issue involving working people who have experienced, clearly, horrific Sexual Harassment and other kinds of abuse. And what it demonstrates is, too often, workers may feel like they have to endure things that no one should have to endure because of a power imbalance. Excuse me for interrupting, but i only have five minutes. Are you going to do anything about it . That is all i am asking. If you are not, just tell me. I mean, i answered the question about what, you know, there is an agency in the federal government who presumably, if the complaint has been made you are not going to do anything about it . I mean, this is a gut check time for you, madam acting secretary. If you believe in protecting workers, i cannot believe we can debate how many martyrs can advance on the head of a pin. I know but i am honestly surprised. I thought that you would bounce on this like a ninja. Like a what . Speak . Like a ninja. I have had that expression before, i have heard it in movies. But you are now waffling on me. Let me ask you my last question , because i am going to run out of time. Are you or are you not going to call upon martin gruenberg, who runs the fdic, and who has been there since god was a corporal, and the Senior Leadership over there, to resign. So, senator, i care about working people. That is why i am here. The department of labor, there is a budget to do what we do, to stop child labor, to make sure that every worker goes home safely, to expand apprenticeship programs. In fact, we have a Youth Apprenticeship Program happening right now for the first time ever. Opportunities are being built. It is Teacher Appreciation week. We are expanding access for teachers. We are hard at work to deliver for the workers of america within the job that the department of labor is supposed to do, enforcing Mental Health parity, and making sure that workers who have saved their whole lives for retirement, received the benefits that they have been saving for. Madam, you are flip flopping. Thank you, senator kennedy. Are you not going to answer my question . Are you going to call for them to resign or not . Thank you, senator kennedy. The related agencies will adjourn shortly. And i do want to thank my fellow Committee Members for a thoughtful conversation. I want to thank you, acting secretary julie su. For any senators who wish to ask additional questions, questions, for the record, will be due by may 16. The hearing record will also remain open until then for members who wish to submit additional materials for the record. And now, the subcommittee will stand in recess. 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