Transcripts For CSPAN3 Acting 20240703

[background noises] [background noises] is nick any on education and workforce will come to order. I note the quorum is present. That objection the chairs authorized to call recess at any time. Good morning everyone and welcome to todays hearing. Acting secretary at soup, i like to start by saying you have been a hard witness to schedule. The committee began working with the department to secure your in person testimony beginning in march. You would not appear in may, we honored your request to appear in june. Using the day, june 7, that was offered by your staff into which you agreed. More than a commenting to establish a mutual date for this meeting, this hearing. Why is it that late friday evening following the committees public posting of the hearing a week ago, your staff told us you were quote no longer to make june 7 work . What was so important that you are willing to stop the work of a Congressional Committee come up in the schedule 45 members of congress and leave the American Peoples concerns and answer . The hearing is not about you or your pending nomination. It is about assessing the Budget Proposal for the department of labor and the departments performance and adherence to statutory mandates. However, your effort to evade transparency at the 11th hour calls into question your ability to fulfill your duty as a potential secretary of labor. I think secretary sue, you are sitting here today only because i informed you i would issue a subpoena to compel your attendance this previously agreed to hearing. To reconsider trip cancellation. I am glad to consider that lapse in judgment. Im unaware of this committee ever meeting consider such action for Department Annual hearing until now. You cannot run from this responsibility. Congress and the American People have questions about how do you have been running the department. Overall bidens fy 2024 budget calls for 1. 5 billion more in Discretionary Spending for the department of labor than it received last year. Considering your continued unwillingness to provide fully responsive answers to Committee Oversight requests, this budget increase can only be seen as a tacit nod of approval by the president that the department can continued skirting accountability to taxpayers. If enacted the budget would add 2000 federal bureaucrats at the current 17000 cannot sufficiently respond to a single committee request i do not think adding 2000 more will help the departments bureaucratic sclerosis. If anything more bureaucrats is more mounds of paperwork and more red tape under which to bury our oversight requests. Worse, this paperwork and red tape will berate workers and businesses trying to make a living. We should be shrinking, not expanding the size of the federal government. Nevertheless after years of conducting oversight i have found no amount of bureaucratic red tape can obfuscate an objectively poor record. When the record speaks for itself, its inherent contradictions, its complications and its confusions will naturally resolve to clarity. We are here to talk about your departments record, acting secretary su and it does not hold up well. The rap sheet is long. It includes over 100 plan rulemakings and longterm actions from his first day in office invited reverse Many Trump Administration policies that would have promoted hiring and Employment Opportunities and he began pursuing a radical policies that would expand the size and scope of government and payback big labor. The Biden Administration has amassed a troubling record of big labor bias at the expense of American Workers. This culture of union favoritism undermines workers rights. Washington should not be in the business of picking winners and losers in our economy. But that is exactly what the biden ministration is whether it be through attempting to overturn every right to work law in the country, eliminating independent contracting, jeopardizing franchise businesses, over rewarding union bosses with unchecked power by acquiescing to every item on their wish list. Proactive is one example of the administrations of union favoritism. It is championed by the aflcio, big labor groups, socialist Bernie Sanders and now the department of labor. Due to legislative gridlock the department is trying to bypass Congressional Authority by implementing the key features in pieces through regulation. If enacted it would destroy the Life Insurance of workers. Including independent contractors overwhelmingly for further current worker status. Present invited anti woke agendas hurting our economy. Wed watch its impact on their workforce during covid. Acting secretary su when your deputy secretary of the department imposed facial radical illegal Vaccine Mandates on employers. The rule applied 84 million in our workforce. Was it not only wrong on the science of coveted compromise or economic supply chain because of its sweeping dictates. America needs a department of labor aligned with its priorities. Like feeling more than 10 million open jobs in the United States. In every action the Department Takes is one of two things. At best it pushes a misguided union agenda. At worst it subverts or economic stability and prosperity to desales hoods as i review the 2024 budget request, i saw more of the same. And if the administration requested 81 million more for the wage and Hour Division. Whd. Business currently at 310 million federal office responsible for enforcing several workforce laws and the American People would be incensed they knew just how badly it is run. Under your supervision the number of workers receiving back wages is the lowest on record. Down by more than 51 from four years ago. Over those four years the whd has received a 10 bump in funding yet it has achieved half results. The taxpayers are not giving a blank check with the department ineptitude whd does not deserve a dollar more per acting secretary su aiken spent all day going to live by lane this budget there places where we agree like expanding Apprenticeship Programs. But even here i think the department comes up short. Consider making the workforce system more responsive to Employer Needs the Biden Administration is doubled down on burdensome registered apprenticeships while shuttering the industry recognized is hard to think of a worse response or worker shortage. At the park for disagreement Guiding Principles and how we envision the governments role in our workforce. The government itself is on a job creator the administration in the near 100 plan workforce rules not to enforced universal unionization. Whether we should promote job creation by removing the government is much as possible from the equator. Yes, that means subtracting from not adding billions to your budget. With that other torch of the hearing to the day yield to the Ranking Member for an opening statement. Thank you doctor fox. In acting secretary su good morning thank you for being with us. You are here with us now we have had problems getting Previous Administration officials to the committee. But thank you for being with us today. We have an opportunity to discuss the work of President Biden acting secretary su what theyve done for workers, businesses in our economy as well as investments we must continue to make. Democrats and i strongly support mrs. Nomination for secretary of labor because she represents the best of america. She is the daughter of immigrants who owned a small laundromat in a franchise pizza restaurant in first family to attend law school. We support secretaries sues nomination not just because of who she is but for what she has done. Throughout her Service California labor commissioner secretary of the California Labor Workforce Development agencies deputy secretary of labor. She has a committed Public Service is dedicated her career to supporting workers and families. Thanks to her and President Bidens leadership responsible action figure by democrats in the last congress Unemployment Rates remain near historic lows for the job market is continuing to grow workers are seeing higher wages. Since taking office invited ministration has created more than 13 million jobs. Thats more jobs created in 28 months than any previous president has created in a single 48 month term. According the white house last time at a long stretch of low unemployment was in the 1960s. Working age americans in the workforce is at its highest level in 16 years. That is the record. Want to remind my colleagues every Democratic Administration since the Kennedy Administration has left the republican successors a better deficit situation than the when they inherited. In every republican Administration Since nixon has left for the democratic successors a worse deficit situation than the one they inherited without exception. President biden is continuing this trend as he creates Record Numbers of jobs. Evidence is clear President Bidens economic agenda is working. This means my republican colleagues have had to resort to baseless claims desperate attacks to oppose sues nomination. Theres an old saying amongst lawyers if you have the law on your side with not be of the facts that your side pound of the of if you have neither the law nor the facts, pound the table. Secretary su is impeccably qualified to serve a secretary of labor shes been an integral to assisting economic recovery so get ready for people to be pounding the table. Republicans may talk about Unemployment Insurance fraud in california, this is not mrs. Doing under her leadership california implemented additional safeguards to help prepare for fraud stockton estimated tens of billions of dollars in fraudulent payments. They may attack independent contractors the labor departments proposed rules. Do not be confused by republicans attempts to conflate california state law with federal regulation. Proposed regulation does not implement californias ab five which adopts whats known as the abc tests were infected by demonstration clearly noted it is legally constrained from adopting the abc tests to this line of attack on secretary to suit does not hold of either robin and sok about child labor. Secretary says not among the republican state legislators who are working to roll back labor protections. Unfortunately we can expect republicans on the committee to pound the table this morning since they have no substantive criticism of secretary susie record in the department of labor. In contrast Committee Democrats remain focused on concrete solutions to put money back into workers pockets. Keep workers healthy and safe on the job ensure all workers can enjoy dignified retirement. I hope my republican colleagues will put politics aside and work with us to deliver on these priorities. So thank you secretary see if your leadership joining us today for help remain focused on what is most important, improving the lives of workers and their families. Thank you madam chair in the back. Next thank you mr. Scotts. Pursuant to Committee Role all Member Service to insert written statements into the record may do so by submitting to the Committee Clerk electronically microsoft word format by 5 00 p. M. 14 days after the date of this hearing which is june 21, 2023. Without objection hearing record remain open for 14 days to allow such statements and other extraneous material referenced during the hearing to be submitted for the official hearing record. I now turn to the introduction of our distinguished witness thank you for being here. We have the force of the honorable acting secretary u. S. Department of labor. Thank you chairman fox, Ranking Member scott and members of the committee. Thank you for the invitation to testify today. I am pleased to appear before this committee to highlight the department of labor fiscal year 2024 budget request. An investment in the department of labor is an investment in our workers in the future of our country. Through this budget we can build an economy from the bottom up in the middle out. I recognize Congress Working under statutory budget caps for fy 2024 i look forward to working with you to ensure these priorities are reflected in the final bill. American dream that if you work hard you can make it has always been premised on having a good job. That is why it is just a budget is fundamentally about investments in people. About what a good job does for individual, a family, and a community. No wonder she be injured or killed at work. The budget request will allow the Occupational Safety and Health Administration to improve Workplace Safety and health and be better able to help employers comply with the law. The budget request includes an increase to enable to strengthen its efforts to reduce accidents, injuries, illnesses, fatalities. The department requesting funding for the Training Administration to build on the progress restoring enduring economy following the pandemic. These resources will create pathways into the highquality jobs created by the landmark bar partisan infrastructure law chips in science act and Inflation Reduction Act and other historic investments in our nations infrastructure, Energy Sectors in manufacturing. Investments in evidencebased Workforce Development models will help state and local areas with the Workforce Needs of their communities and the needs of industry across the country. Specifically the budget continue support for the program in line with the president s goal to serve at least 1 million apprentices annually within 10 years. The budget request proposes an employment through Career Training for occupational Readiness Program to support the development and expansion of partnerships between employers, education and workforce evolvement providers and communitybased groups. The department proposes Additional Resources for the veterans employment and Training Service to support a legislative proposal that expands antidiscrimination and reemployment protections to military spouses. Military spouses sacrifice daily to support their families in our country. The administration is proposing we do more to ensure they are able to enjoy the Economic Security they deserve. Protecting workers hard earned pension and Health Benefit is a priority for the department the budget request for the Employee Benefits Security Administration includes increase to continue its important work expanding access to care for Mental Health and Substance Abuse disorders at a time when so Many Americans are living with these conditions. Agencies request an increase for the missing Participant Program as well as establishment of a Retirement Savings lost and found required by the recently enacted to secure 2. 0 to reconnect retirees with the benefits they have earned. These investments will make a real difference retired and elderly people. Working together we can create an economy built surrounding dignity and value of all work and workers. I thank you for the opportunity to testify. Look forward to discussing the fy 2024 budget request with you and all members of the committee. I am happy to respond to any questions you may have. Thank you very much secretary su peller recognized myself for five minutes. I take my duty to conduct oversight. Seriously. Unfortunate secretary walsh did not take his obligation to respond to oversight seriously. During your short tenure track record appears to be about the same as his. At least until you attempted to cancel your appearance at the last minute and are here today only because my threat to issue a subpoena cause you to reconsider appearing. Both cases you have responded to inquiries with a vague letter providing none of the requested documents thereby technically responding to the inquiry but not in fact coming close. When you commit to providing fully responsive answers to the committees request, yes or no . Thank you chairman fox. Im very happy to be here today to testify. I understand our teams Work Together to find the dates. Quick site just a yes or no answer i appreciate your being here. You do not have to thank you very much for the question that just takes of time. I appreciate that. I want to say i take the oversight role of this committee and of congress. Seriously. Then it will be saying yes to my question, yes you will answer our requests completely is that right . Works german fox understands its our job and my request we respond to oversight request and work with you. Do you understand failure to provide complete responses can result in the committee taking compulsory measures . Yes. Its good you know the word. In march my staff requested performance of summation dol Workforce Branch programs the department has had over two months at the informations been provided to date is incomplete and lacks employment and earnings outcomes for significant number of grantees. How can your department effectively manage discretionary Grant Programs if you are not tracking grantee performances . Thank you german fox its very important as you say to track outcomes to make sure we are good stewards of federal monies. Then my request should be very simple. Just hit click and send what you have got. Can you commit to providing performance information on all of etas discretionary grants by the end of the week . Works german fox it is my understanding we have been responsive to requests from you and from this committee if thats not the case for. Let me tell you directly your department has not been responsive. So please review our request and respond appropriately. Going forward will you commit to posting the employment and earnings outcomes for Grant Programs on the departments website . German fox im not clear specifically on the details of what you request. We have work to be transparent about our grandson also about outcomes. I agree with you its very important. The letters are not clear think i read those letters very, very carefully as to our Staff Members to make sure they are clear. If you would simply send a response back and tell us what is not clear we will certainly clarify. We do think the letters are very clear and the information we need is very specific. Let me switch to our division briefly. Despite the wage and Hours Division nearly 10 increase in funding over the last four years it collected the least amount of back wages worker sensed fy 2010 down by nearly 33 from four years ago. The number of workers receiving back wages is the lowest on record for whd. As i have said down by more than 51 from four years ago. These results are not due to a resource issue in covid is no longer a legitimate excuse. These failures reflect a management problem. What are you doing as a manager to fix this poor performance . Thank you very much german fox present deputy secretary of labor over the last two years i had responsibility for management of the department and work closely with the wage and Hour Division to make sure protect. Yes we arty know that. So what is the solution . Ask when we came in in january 2021 Department Enforcement resources and cut dramatically in the Prior Administration about 14 . We have next time we have been here work to rebuild the division, to train staff to make sure we are investigating not all workplaces it makes sense to be targeted and to be smart and to identify which employers are active in violations and which are not the vast majorities. You have effectively taken up a lot of my time without answering questions. I will now yield back my time. I not recognize mr. Courtney for five minutes. Thank you madame chairwoman. Thank you secretary su for your diligent work to have to address as you were just alluding, really the wreckage that took place the Prior Administration. We have seen this on this Committee Enforcement not just the department of labor but also the department of education. I would like to begin my five minutes but noting the fact the biting economy defied all predictions of pundits and economists on both the right and the left last friday when the u. S. Economy added three and 39000 jobs. Again the Unemployment Rate stays before 4 . Even more significantly the report indicated the number of job openings also increase by three and 58000. We are now at a moment 10. 1 million job openings in the economy at the same time we have again record low unemployment. This is a moment for the department of labor to shine. The oa system is a dual customer approach the two customers are jobseekers and employers really can help close the skills gap that we know from talking to employers and frankly every member on the republican side and democratic said if you put them on a trickster would say that is the number one concern were hearing from players out there is trying to find qualified workers. In my district again the Employer Engagement has worked very successfully for manufacturing spike taking place and maybe shipbuilding sector. Again we developed the curriculum back in 2015 under prior secretary of labor tom perez. That is generated 3000 job placements using qualified instructors with the right curriculum on an accelerated basis. Transforming peoples lives can you talk about your own thoughts about engaging with employers in that fashion and really sizing success across the nation . Perhaps thank you so much congressman. Thank you for highlighting an example when Workforce Development programs work at their best. They help meet the needs of employers for a skilled workforce. They help meet the desire for individuals for good jobs for they help to build local, regional and national economy. So, its true that in this moment think the work of the department of labor really takes out an outside importance. We have, due to the really good work of this vardy in partnership with the present historic levels of investments in manufacturing, and infrastructure, in clean energy. In bringing jobs back to the United States. And so the ability to align the needs of employers with the desire of workers in jobseekers through effective Training Programs has never been more important. And that of course starts with employers who starts with understanding Employer Needs. Song the where, when, and how of the jobs they are creating. Making sure the rest of the system we have partners at the Table Community colleges, fouryear colleges in k12 educational system, workforce training Boards Community based organizations, unions, all of the players in the economy working together to set up effective Training Programs registered apprenticeships are very, very important part of that chairwoman mentioned that as well. As the department of labors laser focused on ensuring our investments, or Technical Assistance, our support, our programs are building on the needs and players having this moment. This week President Bidens going to chairwoman state North Carolina interrupted career connected program at the department of education secretary cardona was actively engaged with secretary walsh. This is an all hands on deck situation in terms of getting trade schools and comprehensive high schools. Working hard to close the skills gap. To address these job openings. Again can you talk about your willingness to make this a larger but also education initiative. One 100 . This is like you say all hands on deck. We talk about a whole of government approach. Ive spoken to secretary cardona. This is aligning the educational workforce system is critical to slimmer allow jobs are talking about a manufacturing going to be jobs or do not require for your degree. How to make sure young person from the time to think about what they are going to do after High School Open whether to go to Committee Scott college with a go to a trade school go to an Apprenticeship Program, making sure we align assistance so people dont have to figure that out. We can help them to do them is so, so important thats reflected in our budget requests. Thats reflected in the work of the department over the past two years. I certainly pledge to continue the work secretary walsh and i did together over the last two years and continued to meet need. Thank you madame. Thank you. Mr. Wahlberg your record extra five minutes for. Thank you madame chair and secretary su for being here also to take a note to express appreciation for my friend and colleague from connecticut highlighting continuing success of the tax cut and jobs act. Impacting the economy and the growth of jobs. On may 25 madam secretary along with a chairwoman fox and representative sent you a letter asking for specific information on Migrant Children who are being trafficked and working illegally in the United States from june 2 the department responded with a letter that was generally unresponsive and made no attempt to provide any of the documents or communications that requested. This lack of response and with all due respect without pounding the table i frankly went to ask for your continued help in working with your staff to make sure these issues re request are made. The issues raised in my letter are important in the committees understanding of how it is assisting hhs and dhs from keeping Migrant Children out of harms way. So i would ask you if you would commit to providing the committee with the documents we requested in that letter on may 25 within 48 hours of the conclusion of this hearing . Thank you very much congressman i will direct my staff to look at your staff for. Within 48 hours for. Yes. Thank you i appreciate that. Moving forward into the departments regulatory agenda i understand dol is preparing a proposed rulemaking on the overtime regulations under the fair labor standards act. However i am concerned changes at this time with recent significant increase in inflation, lingering supply chain problems, worker shortages across the country and a potential recession on the horizon may be devastating to economic recovery. Many industries are still trying to get back to prepandemic employment but are struggling. Considering the potential consequences of changing regulations and the fact the agency last updated the overtime regulations only three years ago, can you explain why dol is pursuing these changes . Thank you very much for the question congressman. We take a very deliberative approach to what we do with the department. You are correct, there isnt overtime rule on our agenda. One thing we have been doing since conducting listening sessions but we have conducted 27 virtual listening sessions that involved more than 2000 participants. It is important to understand exactly as you are seeing the impact of any rule that we would make on everyone who could be affected by it. At the same time the wage and Hour Division has conducted listening sessions in person for its Small Business stakeholders work with the Small Business administration to make sure anything we do we have been thoughtful we had listened. We understand all the impacts to get it right straight. Along that same light what about the fiduciary rule . Didnt answer on the fiduciary rule. It is on our agenda. We will be certain to be listening to all stakeholders, all parties. If we are not doing enough to do outreach to let people know that we are having listening sessions and we want to make sure your constituents, the people are hurt and committed to working on them. Thats a concern many people lose access to common sense financial counseling at a level they can afford and pay for. I thought we had achieved that so thats a concern were going back again into areas that frankly seem to be working. Let me move on because my time is about out here. Acting secretary, for decades michigan said the flexibility to to deliver Employment Services through local staffing models which has enhanced integration of Workforce Services at the local level. Last year proposed a rule that would strip michigan and other states of this flexibility in force workforce staff inservice reductions. With 10 million unfilled jobs why would we do this . Think you congressman. I can definitely have my staff get back to you with more detail about that particular issue. But as i said in as i commit we are committed too and anxious to work with you and with everybody in this body to make sure we are meeting those needs for the open jobs that are there. For the individuals who want those jobs include those who have been left out of the economy in the past. I appreciate that. Its working at the local level, state level getting people employed, getting them trained let it happen, that is my request for think you look forward to that for. Think you are much congressman. Lets thank you. You are recognized for five minutes for. Thank you madame chair good morning and welcome madam secretary. I want to first comment that many of the work of the bite administration to your Department Chairman of the Ranking Member noted the record breaking employment. That is to increase with real wages for workers. Those things are notable. Madam secretary, the jurisdiction in the United States that does not apply in my district i have been working on that for a a while trying to get joined by my colleagues. Hopefully we try to get up the sheep to welcome your department support. My other issues are related to the common work issues to the Northern Islands and so for that may i ask for some commitments we would have your office work with my office and getting some answers getting some of these issues resolved in some way . Yes congressman. Thank you so much i certainly believe every worker should retrieve dignity and respect employers should be assistance in meeting their Workforce Needs including those on the islands. Obviously the question of whether cnmi is covered under a specific federal program is with congress i am committed they receive the funding for which it is eligible to enter senior issue you do have my commitment to work with you to make sure we are doing everything we can there. And as you know we have federal investments and Apprenticeship Programs on the island. We have had funding from the rescue plan open to shore up the Unemployment Insurance system and they certainly commit to continuing to work with you and all this things. Think it madam secretary. Is there an issue you would like to bring up just to inform the community about some of the things the department is really trying to achieve . This is treating the next greatest generation of americans. Note degrees, no High School Diplomas and they ran communities well. Thank you so much. I agree with that i imagine this is something every one of us would agree on. The opportunity to create good jobs in every Single Community is one we simply cannot pass up. We are in a moment as an economy we have seen a record of job growth. As the Ranking Member mentioned historically low levels of unemployment. That president has talked about what is it look like to build industrial policy in which we really build a Strong Economy on good jobs by creating good roads, new bridges and make sure every home is clean drinking water. There is affordable reliable Broadband Access in every Single Community and rural communes, urban committees in small towns these are also opportunities to create good jobs in the very same committees the department of labors work is been very laser focused on meeting those needs on aligning those systems, working with employers, with unions with workers with Industry Associations to make sure we meet this moment and the president said it, we implement and finish the job that has been started. Thanks again, thank you for everything that you and your department and best of luck on your new assignment your new endeavor. Thank you. Think is a much congressman for. I yelled for. Thank you. Mr. Enforcement you are recognized for five minutes. Thank you. First question i have is there has been some publications talk about the huge number of people crossing our southern border. He could even say crossing our southern border falls asylum claims. These folks perhaps being taken advantage of. What is your office doing to prevent people who are not in this country illegally from a count may be taking away from American Workers indeed, making sure their employers are obeying all the laws and project liens regard to age . Thank you very much for the question congressman. One of the things you might be referring to is recently our wage and Hour Division found a large number of children working in exploitative labor working conditions. This was a company that had hired over 100 children ages 13 17 working doing sanitation work, cleaning work in the Meat Processing facility. Can i give you a followup question only a five minutes. How many of these children were living with their parents . I do not have a specific number on them. That many of these children were Migrant Children. In as a result. You look for that . I dont like that look for the parents . Approximately look for child labor violations. If someone is being taken advantage of i would assume one thing to do is call the parents, do you call the parents . You look into where the parents are . In this case again some of the kids were 13 years old they were working the night shift for. Right, rectify, 13 on work and night shift i want to call the parents pretty quickly. Do you look for the parents . What we did here is the white house start a task force of the labor of department does include some of our Sister Agency some the questions youre asking. The question is, if you find a 13yearold working the night shift illegally the first thing i would do is contact the parents and find out what is going on. Theres been some concern in this town in the last Administration Children being separated from their parents albeit relatively small compared to the seat of people apparently working illegally. You look for the parents, check offs if they havent parents . That involves the work of other agencies in the federal government we do Work Together this is not an answer for not paying attention bridging task force does include the department of security. Effects this intimate check and see for the kids are here with their parents or whether they were sent north by the drug cartels are whats going on . All important and relevant to the issue at hand. For the department of labor our work was to make sure progress we dont consider that a concern. A cap next question in 2005 you wrote we live in a society built on White Privilege and systemic racial subordination. When i look at the statistics, people coming from all around the globe. People are not of european dissent and quite frankly people to his ancestors lived in china, india, cuba, all doing better than the native born. When you look at all of these groups and doctrines ancestry we define doing well as financially well, it looks like again and again and again people coming to this country from all across the globe doing better than the native born prick you made that comment in 2005. We live in a society built on White Privilege and systemic racial. Given the successes of people in the end write down or have the most successful in this country india, china, philippines, cuba, the silk shirt secondgeneration from the caribbean. Do you still stand by this idea of running down america where society built on White Privilege . Think it congressman. Everything i said and said much more recently it is are a nation where the American Dream was available to certain my family for text serious threat saying that its kind of an inflammatory say about our country you still believe it labor camp that statement . I will certainly say all the talked about today the work that ive done my record last years as deputy secretary but also the decades before i do believe in equal opportunity for all communities. I know. You made an inflammatory statement saying our society is built on White Privilege. Well, people hear from all around the globe do financially better than people of european heritage. India, china, cuba, philippines wherever you look look for. Mr. Grossman i need to wrap up. Just try to get an answer. Could you comment on that or do you regret saying this . Think what youre noting is a nation of opportunity. And i believe that. I am a product of that i am grateful for that i also believe the work of the department of labor is to make sure their opportunities for everybody who is looking for a good job it does not matter where you live for. Thank you. X acting secretary say thank you for being here. Want to start by sending my gratitude to you for your capable and check us leadership at the department of labor. Your qualifications to serve in this role in your strong record as achieving for workers and for businesses those are clear and i share the sentiments of many of my colleagues on this committee in urging the senate to quickly move forward with your compilation. I went to say i find your personal story very inspiring. It is my understanding your parents on a Small Business. A pizza franchise. But that they were able to send you your Sister College look how far youve come its a very inspiring story. Ive been a long time of highquality Apprenticeship Programs. We know they work. I serve as cochair of the bipartisan congressional partnership caucus. I understand apprenticeships are effective in building a pipeline of diverse skilled workers with the pathway to a good paying job. They help businesses thrive and succeed. Im sad about the work happening in the district. Century high school in hillsboro oregon this is known as the Silicon Forest in oregon. Its a first industry supported youth of an hour say it is a twoyear program that provides a pathway for High School Students between the ages of 16 and 18 to get handson paid training that prepares them for current advanced manufacturing. So the Program Provides employers with skill Diverse Workforce to help our nations edge. Your leadership of maple programs programs like this available to more people across the country. Im also grateful for your work with the women. The pleasure of meeting with trades women, blazing organization. Prison construction, manufacturing mechanical. This supports the department of commerce and the department of energy. These historic investments that we have made to growth domestic manufacturing greatly appreciate your leadership in making these pathways available to more women getting more women in the workforce. As this Committee Considers reauthorizing the workforce innovation and opportunity act, i want to highlight sector strategies and partnership are particularly those that link employers with Community Colleges and other institutions of higher education. Ive another example from oregon the Oregon Manufacturing Innovation Center its a very Innovative Partnership between industries, universities, Portland Community college. University researchers and students work on industry developed research problems. Then they provide students with handson experience to get the skills they need to become skilled workers. Also Portland Community college as the willow creek campus and forge lasting relationships with oregon based and Semi Conductor companies. Theres lots of great work being done at the state level that we could replicate. We went to ask you madam acting secretary, the department of labor has the size sector strategies as an evidencebased approach to effective training grants of reasons they are effective as they encourage partnerships. Between Community Colleges, and other relevant stakeholders. Much like loosing in oregon. Another vital developing they could use assistance in creating a partnership. What are sector strategies, where they sell effective and what is the department of labor doing and continuing to do so by the evidencebased . Thank you so much. I dont think i could more effectively describe the benefits from Training Programs and Workforce Partnerships that really work then you have done for i really, really appreciate that. As you have said i think partnerships are critical to deliver an important need an opportunity we have to connect people including people been left out of good jobs in the past. You mention to the extent there are jobs in which women have been underrepresented but could do them. Ive met with women across the country that given a chance to lay pipe 30 feet underground work in the construction trades. Not only do an amazing job to find their own pathway to that middle class lift up their entire family. All these things need to happen in partnership. I do believe the department of labors role is to help solidify those partnerships to bring people together for this prior probably why are funding specifically are sector based funding is about that. Talk about apprenticeships. Apprenticeships are one key tool within those partnerships also. As you have said apprenticeships are a proven triedandtrue model of the average starting wage after completing a registered apprenticeship of 77000. People who think you should Apprenticeship Programs are an average of 300,000 more over their career compared to the peers who do not. This is not just a job its actually a lifechanging opportunity. I hope you get an opportunity if you have not already. Im sorry thank you. [inaudible] mr. Allen youre wrecking this for five minutes for. Think you madam chairman, thank you acting secretary for being here this morning. The first question you need to answer that in writing to the committee. We had chairman powell come and talk about the situation with the Interest Rates and the economy. Said their responsibility is full employment and obviously inflation below 2 . He said we are at full employment. When i send you know the current work Participation Rate is about 62 which is the lowest it has been in some twentysomething years. He said thats not my job at your job or as members of congress met the firm is going on the workforce out there. Right now we had a highend 2000 to almost 70 worker participation. And if you do the math thats about 10 Million People we cant figure out where they are. So could your department do a study to find out where these people are why theyre not working and given the opportunity to work so we can train those folks up and given the great dignity and respect they deserve and the good job so they can live the American Dream . Secondly, moving on to environmental social governance factors in making Investment Decisions your department you had a rule that is precisely why it congressman bar in our last congress to ensure retirement account managers consider only monetary factors may returns in making decisions on behalf of the clients. Unless otherwise authorized. We are currently in the process of reintroducing the version of that build this congress. Yes or no, should maximizing asset proof retirements via Pension Plans top priority . Do you agree . Quest congressman thank you very much i do agree after a worker has worked a lifetime and save for retirement this to be able to expect to maximize the savings. Okay can you deal with that rule . Before the department i was he finally rolled Employment Benefits Security Administration stated march 2021 the departments rationale undertaking a new rule was based on private meetings in which unnamed parties expressed confusion about the 2020 rules and how to interpret them. This in department basis decision to revise the rules behind closed doors. Wire these meetings held in private and on the public . Where were the attending names and dates of these meetings not disclosed . Thank you for the question congressman i am not actually a private meetings are undisclosed. Can get back with me on that . Can you investigate that would have someone in your Organization Look into it and get back to me on why exactly that happened . And for the benefit of the committee. Will you commit to revising the committee with a list of all attendee names and dates of all the meetings regarding the november 2022 esu rulemaking process within 30 days of this hearing . Yes or no. Will you do that . I will certainly. What he said earlier brickwork send me a letter on why you cant do that and then we will deal with it. We do not we all know keeping retirement costs most important part of ensuring his Many Americans as possible can achieve a secure retirement. Send both retirement accounts for americans recent proposed amendments and the longstanding exemption for qualified professional Asset Managers would impose significant new costs on our economy system and by extension American Workers and retirees. In fact savored many concerns and stakeholders the departments amendments to this for your policy will have negative impacts on workers retirees, Plan Sponsors unions, financial institutions. As the department done or will you commit to doing a detailed and realistic costbenefit analysis of these proposed amendments that reflect input from stakeholders . Will you do this . Congressman, our esg rule did not require to do anything in particular. But it did was give them the flexibility because you dont do costbenefit analysis . You know what costbenefit analysis is . I do. I guess im clarifying what the rule it was not a requirement as allowing Financial Advisors to take into account whatever it factors in order to do what you said which i agree with. Get back with me on that to an out of time. Managerial back. Think it mr. Allen. You are recognized for five minutes. Thank you manager thank you acting secretary say thank you so much you mean the time to be revisited today for your strong history of fighting to ensure every american has access to good paying jobs and to support themselves and their families. What things i hear most about but folks are coming up to d. C. I hear workforce shortages again, again, and again. Whether building a hospital trying to find nurses and support staff to take care of the patients who will be treated there there is a serious disconnect between the good careers that are available in todays economy in the skills that are needed to perform these jobs. The telecommunication construction electrician programs offered at the atlanta j atc Electrical Training center which is my district in georgia. They actually pay their students to learn instead of being forced to take out thousands of dollars in loans to better themselves through education, they are being paid a decent wage and given room to grow while they obtain the skills necessary to move their family and our country for secretary since it is clear need to be doing more to get americans into these careers so we can see the full benefit of our bipartisan investments to the infrastructure package the chips and the science act that was signed into law by President Biden. But has the dol done under your leadership to support and encourage Workforce Development programs . We spoken must candidly about that. Went to you more time to expand upon that. Their particular programs you would like to highlight for us at this time . Thank you very much congresswoman for that question and also for highlighting other examples of how the workforce system at its best does its work. Think 11 of things your example highlights to this relates to question asked from the other side which is how are we lifting up the idea is the innovation of local communities . Much of Workforce Development works best when its meeting specific needs in communities. We have seen our job the department of labor helping to support those innovations on the ground. Our sector based investments are very much about that. Its about supporting employers in coming together in their communities with other Workforce Partners to design Training Programs are going to meet their needs. Its about work with employees to signal and forecast what the jobs they are creating are going to be. Thats the best and most effective way to activate the rest of the system. To get Community Colleges, to make sure their curriculum and their offerings are responsive to actual jobs that people can get after they complete any kind of program. I think we build credibility in the system also when we say at the outset this program is going to lead to an actual job at the end of your training. So we have invested in sector based partnerships. Weve also been working to meet needs that are well documented in certain industries. Many of them were devastated by the pandemic. So nursing for example every community there is a need to build out nursing workforce they did heroic work and we need to invest back in them. The department of labor has an 80 million funding announcement for nurses. We also note this is where really understanding the problem is to address it is important. The issues not enough nurses having clinical instructors so nurses can get the clinical hours that they need before they got to work for our funding announcement is meant to incentivize both of those paths. Ask thank you and one more question to ask you though. Registered apprenticeships are a key component of Workforce Development and provided clear path to good paying jobs. We know that. We know it works. What has the department done to encourage registered apprenticeships and so we are clear registered apprenticeships are not just restricted to union jobs in my correct . Is one 100 correct congresswoman. In fact the majority of apprenticeships that we have supported the department of labor registered apprenticeships in the last year have not been with union employers. We have been doing his work and for that is a growing industry of good jobs. And we want on things we in the fourmonth. We were able to begin and support enough programs to about 16000 new apprentices cybersecurity industry again many of those in the private sector and many of them nonunion jobs. We also in tracking everyone is talked about the supply chain challenges and tracking is one of them. It is a three month. We work with over 700 employers and Industry Associations to set up trucking apprenticeships. What we have seen them doing that as we can solve. Thank you madam secretary think you can submit those things in writing. Mr. Banks you are recognized for five minutes per. Acting secretary New York Times story april 17, 2023 headline says as Migrant Children were put to work the u. S. Ignored warnings. The white house and federal agencies were reportedly alerted to signs of children at risk. The warnings were ignored or missed. It goes on and says thousands of children have ended up in punishing jobs across the country working overnight in slaughterhouses replacing grews, operating machineries and factories all in violation of child labor laws. A recent New York Times investigation showed. Think you know by now reportedly hundreds of thousands of illegal children have entered our workforce and dangerous jobs. This story says you in this administration have completely ignored what i believe is another example of the biggest mentoring crisis in american history. What dhec are you doing about it . Lets think you congressman for that. Our rights right. We are my children doing jobs that are highly dangerous. It is illegal for children to be working we are not talking the young person trying to get their First Experience working at the local Convenience Store learning how to shop on time click secretary the story says you ignored the issue. I know you just said i am right. Why is your department ignoring hundreds of thousands of children illegally in the workplace working in unsafe conditions . What are you doing about it question. Thank you congressman you are right. I dont believe this story said the department of labor was not doing what we need to do in fact ambling the story came out because the department of labor was doing our job. We investigate a case that involved over 100 young people as young as 13x the policies of this administration opening the border wide open has resulted in hundreds of thousands of Migrant Children entering the workforce in america in unsafe conditions. In fact one lawyer linda said their worst so many opportunities for the Biden Administration to connect these dots that no one ever did for the question is why didnt you do anything about it question if you come before the committee today and tell me you agree with me. But what are you doing about it . All hands on deck moment in your department to take on this issue . I agree children doing that work is terrific. It is also related to the budget request which is to make the sure the department of labor has the resources to invest in other cases. The Trump Administration was nights into a different on this in your administration. In fact since he biden ministration started we have seen a 69 increase in child labor violations because of the open border policies that have flooded this country. In this case with reportedly over 2,050,000 kids coming into our country entering unsafe conditions. Im glad youre here to tell she agree with me. The New York Times even says that you are ignoring it. In fact let me go on. This is really incredible. In april was asked before the Homeland Security committee and the senate about this catastrophe. You know what he said question ricky shifted the blame and said to her faults. He said this probably is your fault the department of labors pharmacy right about that . Sure i agree children shall be due this kind of jobs i agree we should do everything we can within our responsibility for the department of labor to correct on child labor by doing investigations and making sure employers to profit from the sliver held accountable that as we did in the case that psf i case is probably the one in that news article because that is the case that helped to bring this issue to lights. I think its a positive thing we are talking about regrets madam chair went into the New York Times or for the record. Thats the other thing congressman. Madam chair went into the nearest time sorry for the record. My last question to acting secretary how closely do you work with ice on issues like this . Plexus Interagency Task force has been create the department of labor because of our leadership in investigating these cases. It does not include the department of Homeland Security includes our partners at health and human services. As a role for ice work with the department of labor to enforce child labor laws question because im sorry . Plexus or role between your department and ice . Doctor adams you are recognized. Thank you for being here to discuss the budget. According to one study for every dollar spent these come from the participation in the job market that leads to sales tax revenue. Can you tell me a little bit about the work . Thank you for that. You are right that investments in individuals who have great promise and talent are important to make sure they can contribute that and fill the needs we have. Our administration has made this a priority under my leadership and that of the secretary of labor marty walsh, and we will continue to do so to ensure that when we talk about building this economy up and leave no one behind it includes communities that are reentering. Im sure you are as devastated as i am regarding exploiting child labor and the apparent drastic increase in child labor violations. Corporations shouldnt be making profits and children dont belong in factories where they should be studying. They provide critical protections to ensure they are working in safe appropriate environments. The case the department of labor brought against the services which resulted in the maximum fines available its a vivid illustration so can you describe the steps youve taken to combat child labor . We take this very seriously and all the cases we have we look to make sure there isnt an exploitive child labor happening. We are not talking about a young person getting their first summer job, to earn money and learn what it means to be in the workplace we are talking about working with toxic chemicals and heavy machinery and going to work at night after going to school during the day so we look for cases and site employers who engage in child labor. As you mentioned in that case that was the subject of other reports, we issued the maximum penalty set a law under the act by congress but we also appreciate the intention of this body to look at whether they need to be increased. We currently have over 500 investigations underway in addition to that one theres growing attention to it and im hopeful that between the work and budget request and at the public attention we might be able to make strides in stopping this scorch. Let me ask about Workforce Development and how we are funding and positively what has been the impact on people in this country . I think this is something that enjoys bipartisan support, the workforce innovation opportunity act does fund workforce programs and many of the programs we talked about our avenues for advancing equity for making sure every community has the opportunity to participate in Training Programs aimed to get the good jobs being created. Thank you madam chair, i yield back. You are recognized for five minutes. To make sure i have your background correct you were the secretary in california from 2020 to 2021 and the California Labor commissioner from 2011 to 2018 . Correct in the Senate Testimony in april, you touted President Bidens economic record you said the results speak for themselves into specifically cited the Unemployment Rate less than 4 for more than a year which is the lowest its been in close to 50 years. Do you know how your state is doing versus other states . I dont know what the current rate in california is. According to the bureau its currently the second highest in the nation does that sound right . I dont know. I trust that you have that correct. If it is a sign of good economic stewardship what does that tell us about california . Thank you for the question. You are correct that we share a home state and i was the labor secretary from 2019 to 2021 and prior to that the commissioner where my job was to enforce the law. The Unemployment Rate was similar in 2021, it was first, second or third highest. You yourself said what does that mean california has a high Unemployment Rate . There are lots of measures that make a Strong Economy and lots of ways to look at obviously it makes sense to try to address the unemployment because people who are looking for jobs to be able to do the jobs and be able to upscale unit of do the jobs is the goal i know we share. According to a recent report from the bureau of Economic Analysis where california ranks when it came to the net Earnings Growth this last year . I dont know that off the top of my head. 50th out of 50 so if the goal is to reduce unemployment and poverty and increase wages is california the best model given its the absolute worst by all of these measures . I think there are lots of measures for how well the economy is doing. My understanding and i havent worked in california now for two years but by some measures including recovery from the pandemic, including the decrease in poverty over the last two years recovering since the pandemic that california has these were the measures you cited in your testimony in the state of california where they are doing the worst in the country so lets move on to the law that you are charged with enforcing in california. Were you involved, i know you were not in the legislature but were you in the drafting including any conversations with the author really interest weret groups that helped draft it . Thank you, congressman. I was never part of the california legislature. Were you in any way involved in the drafting . No, sir. My job as labor secretary was to enforce the laws passed by the legislature. I understand that but do you express support . I expressed the need to enforce laws passed by the legislature. I know we are talking a lot about what i did in california. It may have. [inaudible] do i think it was a good law . Both my job now is the acting secretary of labor and the job of that i had in california as the labor secretary and commissioner to enforce laws that are passed. That i asked if you think it is a good law. I dont know. To give me a little bit more of what you mean by that. Is it good for the state and good that it passed . When it was first signed, one of the things i did in my role as the labor secretary is create we reached out to employers. My time is running out. I want to give one last chance is it a good law, yes or no . I think its an Important Role of the government to help comply yes or no . Is important youre going to get to the witness to answer truthfully. Thank you madam chair. Acting secretary, welcome. Its great to see you again. Im proud to be among the members sent a letter to President Biden urging him to nominate you i ask unanimous consent to enter that into the record. Without objection. I would also like to highlight a letter sent this morning led by the cheers of the congressional caucus the Congressional Black Caucus in hispanic caucus and democratic womens caucus urging them to confirm. The letter ended up with 71 assignors. I asked consent to enter this into the record. At the Los Angeles Area chamber of commerce has voiced their support for the nomination as labor secretary. I ask unanimous consent for this letter to be entered into the record. Thank you. As you know we had a workforce protection subcommittee hearing that addressed the proposed rule on the misclassification of workers as independent contractors. No one objected much until it was in the proposed rule because it was reasonable. Many business groups now express opposition to your nomination issued a statement saying that your department was, the direction the department was taking was very reasonable. But first the proposed rule from the administration on the classification. Thank you for the question, congressman and for the support. No, the proposed independent contractor rule in the department does not include the test. The proposed rule even says, does it not come on page 6,230 on the notice that the department continues to believe that legal limitations prevent the department from adopting the abc rule or test. Is that correct . Its correct we were explicit that we could not at the department of labor apply the test. Am i correct the position of the department is that you cannot adopt the test unless Congress Passes a law enabling you to do that . That is correct. And a do you believe the Constitutional Order of separation of powers means the department may only implement rules consistent with the laws Congress Passes . Yes, sir. Is it true the proposed rule implements what is called the economic realities test . That is correct. This economic reality test is consistent with several president under both republican and Democratic Administrations is that right . Yes. As noted, the rule is not the test. Lift and the International Franchise association, two of the largest entitys most vocal in their opposition to the abc test even came out with their own statements when the rule was released. It stated that the rule did not reclassify the drivers as employees and that their Business Model would not be forced to change. The International Franchise Association Statement about the proposed rule applauded the proposal and expressed in expressedrecognition that tht applied. I ask unanimous consent for these statements to be entered into the record. Without objection. These companies that were most vocal against the test are expressing praise for the proposed rule. Democrats are not the only ones praising this rule. Ive heard a lot of fear mongering from my colleagues about your role in california after it was passed by the state legislature and signed by the governor so acting secretary, yes or no did you serve the California State Legislature . I did not. And was the legislature the branch of the State Government that passed 85 . Yes it was. And where were you when the state law was passed . I was serving as the California Labor secretary. Were you legally required to implement this as law once it was enacted . Yes, i was. Its outrageous and desperate that my colleagues are firing baseless attacks on you trying to get your opinion about the law and was it a good law or bad law. They are failing in their attempt to try to mischaracterize you. Acting secretary, you spend your whole life fighting to improve the lives of working people and as the daughter of immigrants, you represent the best of us into the story of your mother coming to the United States on a cargo ship because she couldnt diverted passenger to get to know her daughter is up for the Senate Confirmation represents the American Dream. Im so proud of you and appreciate you being with us today and look forward to you being confirmed. I will yield back. Thank you. I am proud of you for getting the secretary to be able to say the word yes again. You are recognized for five minutes mr. Smucker. Thank you madam chair and for holding the hearing today and acting secretary, thank you for being here today as well. We have 10 million unfilled jobs in our economy today. Every Business Owner i talked to its the number one issue im sure you are aware of that. And so i have supported and believe we should be doing everything we can to connect people not participating in the workforce with the Jobs Available today. One policy that i was particularly concerned by was the departments final rule in 2022 ending the Industry Recognized Apprenticeship Program which your department justified by saying it no longer believes the skills gap to be a major challenge facing the labor market. Why that comment . Why blood to the department to be undermining the seriousness of the skills gap and what employers have you spoken to that indicated the shortage is not a major challenge . Thank you very much for that question, congressman. We have been working very closely with all stakeholders and employers to as you say meet the need for skilled workers and the jobs are being created in every community and manufacturing and clean energy and infrastructure and more. We are also very committed to outside of these Big Investments that this body working with the president has made possible committed to helping rebuild the workforce for like teachers and healthcare workers and i already mentioned truckers and other jobs that historically have not had Apprenticeship Programs like cybersecurity so thats all work we have been laser focused on over the last two years when i served as the deputy secretary. Did you specifically address your opposition to the recognized Apprenticeship Programs . I think one of the things we need to do and have been doing is to make it easier for employers who want to have a registered program to do so and we have done that. I talked about trucking earlier but it used to take months for employers who wanted to do an apprenticeship to do one. Its now a matter of days. We have expanded the teacher apprenticeships that used to be in only two states in 2212 now 17 across the country. These are registered apprenticeships that means they have the quality, the wage progression, all the benefits that make Apprenticeship Programs so good for both employers and workers and we need to make it easier for employers who want to do that. We should make it as easy as possible and that was a model that could potentially have worked well with your support. I do want to get to another issue though, the president has said that he intends to be the most prounion president in history and has pursued policies that benefit Union Workers which is fine except to the detriment of all other workers in some cases, for example through regulations on federal procurement and provisions in federally assisted Grant Programs the administration promoted to project labor projer agreements on construction projects. Pla is limit pool of qualified bidders to the unionized contractors and union labor which increases cost anytime decreasing supply you will see higher cost but it also limits Job Opportunities for nonunion construction workers. You have an obligation to support all American Workers regardless of their labor affiliation. Will you commit to opposing these exclusionary policies that harm the 88. 3 of construction workers who choose not to join a union . I certainly commit to supporting and serving workers regardless of their union affiliation. Will you support not implementing project labor agreements on any federal projects . Some of those agreements are written into statute into the bipartisan infrastructure law that again was passed by congress. I see my job as having full fidelity to the law, the law as you and the body passes them, as the courts interpret them. I think theres also studies that demonstrate how can the labor agreements decrease cost over time because it assures the reliable workforce that is trained and the outcome, fewer disruptions, the outcomes are the study shows just the opposite. But unfortunately we are out of time. We would love to have your support to ensure that all workers whether theyve chosen to be part of the union or not can have access to these jobs that are available for federal projects. Its important and certainly in the area that i represent where ive seen workers excluded through these agreements. Thank you. You are recognized for five minutes. Thank you madam chair. Acting secretary, its delightful to see you and i just want to tell you how proud i am of you, your dignity and grace today reconfirms, if i can use that language my history with you, your intelligence and competency is on display here today and it would be a sad state for the country and the congress if you are not confirmed given your qualifications and presence today. Some talk about california, i wasnt in the legislature when 85 was passed but i was a former chair of the Senate Labor Committee when we did much of the groundwork when we were trying to work with the private sector and somebody from the area we wanted to work within the Tech Industry, and i understand what the proper classification was to not have people take advantage. I say this as a longtime Business Owner whos made hundreds of payrolls and always respected my employees that we were trying to get this right but i had to compete against people who didnt play by the rules including hiring people illegally and we did work about that holding employers who were flouting the walls and you are part of that discussion accountable for hiring people who should not have been hired who i had to compete with. So the numbers about unemployment tell one part of the story and the Unemployment Rate in california theres a big spike because the Tech Industry i would argue they were taking advantage under the guise of innovation right now and theres a correction but in the context of numbers, data from the bureau of Economic Analysis shows california has the highest gdp in the nation and around 3. 5 trillion. And apart from the inevitable decline during the early days of covid, californias economy grew during the time as secretary of labor and Workforce Development isnt that right . Im not familiar with exactly that, but i trust that you have your facts correct. Its right. We clearly didnt coordinate these questions. During your tenure as the secretary from 2008 through 2020 total growth outpaced national employment, total growth. Median Household Income that is particularly important given the inequality increased faster over nearly ten years than it did nationally. Gross domestic product ingross n california rose by 30 to 2. 7 billion nearly double the amount by which national gdp rose during the same time period which was 68. 5 nationally. And an analysis by bloomberg news, californias Gross Domestic Product increased 21 during the past five years. The working number two new york, 14 california 21 , new york at 14 and number three, texas at a 12 . Among the five largest economies california outperforms the u. S. , japan, germany with a growth rate exceeded only by china and california if it was a country would be the fourth largest in the world. We far exceed every other state in patents and innovation. This economic success followed you to the white house. Since youve been at the department of labor, the economy has added more jobs and during any other administration in recent memory and we are not even halfway through the first term. What policies and the Biden Administration have you led that have helped these levels of job creation and the national Unemployment Rate hitting the historic lows . Thank you very much, congressman for your question. So, as has been said, the last two years under the administration have seen record growth in multiple measures of the healthy economy and defied multiple expectations. At the department of labor, our role is incredibly important in the moment where we both have job growth and economic recovery on the one hand and needing to connect people to good jobs and employers to the work they need as well as to make sure every worker works in a healthy and safe environment and goes home safely at the end of the day and gets the wages they are earned. Those are the fundamental responsibilities of the department of labor and over the last two years the deputy secretary working alongside marty walsh we worked hard to do all those things to fulfill the mission to make sure we were helping rebuild Unemployment Insurance systems coming out of the ashes of the pandemic making sure that we were investing in innovative place sector specific Training Programs that are going to meet employers needs and workers needs, expanding apprenticeships that have already been mentioned and working handinhand with employers and workers to help to take advantage of these three historic investments that are being made to rebuild the economy. Thank you. Ms. Mclean, you are recognized for five minutes. Thank you madam chair and for being here today. I have some pretty easy questions i think. Simply, you are driving the bus, you are the acting secretary of labor. I think its important for everyone to understand your thought process. Simply put, do you support the United States freemarket economy . Yes. Do you believe in american entrepreneur should have the ability to pursue their dreams and ambitions . Wonderful. So far we are good. Do you believe its the responsibility of the department of labor to make it easier or more difficult for entrepreneurs to flourish . I think that it makes sense for the department of labor to help support entrepreneurs, people who want to use their innovation i will take that as a yes. Thank you. Now i want to highlight your record and try to understand then why President Biden thinks youre the best option is the next secretary of labor with yes and then my last three questions. As the secretary of labor you over saul the highly controversial ab five that reclassified every independent contractor, very entrepreneurial in spirit in the state and effectively killed off the economy in california. If you are confirmed as secretary of labor, will you demand that Congress Passed a similar bill to kill off the independent contractors . Thank you for that question, congresswoman. I would dispute that the economy has been killed off in california. Lets get back to the if you are confirmed as the secretary of labor, will you demand Congress Passed a similar bill to kill off independent contractors and the status . I will not do that. Wonderful. We are on a roll. Do you believe that the death of this industry and the economy as a positive or negative to the economy . And i think we might have a difference here. Thank you, congresswoman. I believe that we should support job growth, job creation, businesses who create jobs and make sure we are paving the road to the economy where Everyone Wants to work has a good job and has opportunity. I also believe it is probably my job to make sure we are enforcing labor laws so that everybody competes on a level Playing Field and that some of the things we talked about today. Thank you. Last week the Supreme Court ruled 81 that organized labor cannot damage Employer Property during work action. Do you agree Union Members or any employee for that matter have the right to damage the property of their employers . No, i dont think theres a right to damage. I do think in your written testimony to the Senate Committee in april, you highlighted the fact that you were heavily involved with the negotiations between the employers and unionized employees. Are you proud of the work that you did on that . I am, congresswoman. Because let me remind you congress had to step in to prevent a shutdown on the system. So in conclusion, i am concerned with your past actions and the rhetoric because we can say one thing but our actions have to follow our words and thats whats important for the American People. I can see why theres a Bipartisan Group of senators who are opposed to your nomination because your actions dont match your words. Youve shown a deep disdain for businesses and employers. And lets not forget that its the businesses and the employers that pay the taxes and its our economic systems that gives us our social programs that we all so desperately need. In my opinion if you cared about the workers you would be supportive of the policies that actually grow business. We have to incentivize businesses. A Small Businesses, we have to incentivize entrepreneurs to be able to work and do their jobs. And i want to talk about one other thing we continue to talk about the job creation and job growth but if we started and then we lose jobs and grow from two to five, we are still down so its the bottom line that counts provided we know how to count and thats what we need to focus on is we have to take a look at the total job growth in the economy because the people in my district are constantly talking about how regulations and the department of labor are stunting their growth and if you truly cared about workers you would be supportive of the policies that actually grow the business jobs in our economy and if i had to vote on your nomination ive got to be honest i would vote no. Thank you and i yield back. Thank you very much. Thank you madam chair. Ms. Su, its great to have you here today. Id like to talk a little bit about where weve been and where we are going. I proudly talk about i went from steel tips to wing tips having gone to that other fouryear school that is called an apprenticeship, the one that i went to was part of the system that is the most successful Job Training Program in the history of the United States its called the registered Apprenticeship Program. Im sure you are well aware of that. It taught me those necessary skills not only to be a successful electrician but also created an opportunity for a great career and the ability to feed my family, take care of them. The Construction Industry is a great example of the most Successful Program that takes little if any money for that Training Program. They take care of it themselves. So i heard a lot about the industry recognized apprenticeships. There is nothing to prevent any company from creating their own Apprenticeship Program, is there . They are allowed at any moment to create it. There is no stopping it. You can do it yourself unless you want the government to pay you to do it, and thats the big difference is we want your money but we dont want any kind of regulations on it even though registered Apprenticeship Programs have been seen and have been experience of the most Successful Program. I believe that private industry wants to create it they can go do it but if you want the government to pay you to do it, there are certain conditions and that is something called checks and balances and oversight. So, somebody thats been involved in that not only california but when you are approved by the senate for the seat that you use to as deputy which you are provided the senate, correct . Correct. Tell me about the programs you asked for 38 million for these programs. Why are they successful and what are you going to do with that money if it is approved . Thank you very much congressman i think they are successful because they are built in partnership. As you mentioned many of them are in construction. Electricians we are facing a growth and the need for electricians for lots of the investments being made right now and having programs that are tried and true based on skills that are needed for the job and have the ability to recruit participants so that we can meet the actual in demand need employers have is baked into how Apprenticeship Programs work and thats why they are so successful because they are built from in demand jobs on skills that are needed. Theres the guarantee of a job at the end of a Training Program. Thats why we spend so much time talking about it here and why the department of labor is so invested in helping to expand them to meet the needs that we do hear that employers have and workers have for good jobs and workers. So the idea of the program for example in a electrician, the electrons in new jersey work the same thing they do in california and the registered programs create the standards. Why is that so important . And storms hit North Carolina, South Carolina and ripped down the power poles there is something called storm break where the line person from all over the country comes together to put it back together. The idea of having separate programs not only leads to problems in the construction or the highest incidence of death on the job years ago before the programs were brought together. This is something we as a country do each and every day. To do so otherwise would be risking peoples lives. But the idea of a program for a unique and new program that they might be doing, i dont think ive heard of that thats a bad idea in fact its a very high rate. Can you talk about what it takes to get a registered program . We hear how hard it is but quite frankly when i talked to the employers its not a big deal. Im so happy to hear that because one of the things weve been focused on is working with employers to meet their needs so we are not only continuing to scale Apprenticeship Programs that we know already work but help build new ones for employers which cut the amount of time and red tape it takes to do that. The electric car wasnt around when i started my apprenticeship and the idea of what its going to take to assemble the new batteries and chemicals is something everybody is open to. The way we are going to do this is working together with employers and they are in an equal part of what we call employment and we need to be ready as a country and we appreciate what youre doing for the next generation of the workforce. You are way over time. A lot of people were. Dont pick on me. Just treat me there. You are recognized for five minutes. Acting secretary, do you think the department of labor has the power to impose a Vaccine Mandate on 84 million American Workers . Thank you for that question, congresswoman. Certainly when this administration began we were still battling the pandemic and i think youre talking about a proposed rule the department of labor did. This was work to try to make sure that workplaces were safe. You were an architect and signed off on. I want to know if you believe the department of labor has the power and if you believe it was constitutional at the time to enforce this unprecedented unheard of action on American Workers. I appreciate that. As i said here today i believe in the law is passed by congress and interpreted by the courts and the courts did strike down that rule and as a result we have not so biden was wrong and the department of labor was wrong in imposing this emergency use Vaccine Mandate on 84 million workers . I think that during the height of the pandemic everyone especially those of us in government were trying to figure out the best we could do to keep workers safe in a situation. We want to know today do you believe that the department of labor has the power to impose a Vaccine Mandate on workers . I again reiterate my full fidelity to the law and what the courts have said about that mandate. Thankfully the Supreme Court stepped in to stop you but i want to know what was your plan if millions of workers were forced to be vaccinated and turn in their medical records if they refused, what was your plan for all these millions of workers that were going to quit . I think one thing just looking back to that period i think this administration is proud of the recovery weve made since 2021 by a whole host of measures. We are concerned about where you are on this issue because you want to be acting secretary here and we want to know what you think is within your power the department of labors power to impose on American Workers because this was unprecedented you were an architect and signed off on it and this was damaging to American Workers. I think what my record demonstrates is that i am focused on making sure the department of labor fulfills its mission including all the things we talked about today to get workers into jobs. It would have cost millions to be fired from their jobs and i just want to say if senator manchin boots to confirm acting secretary su he is voting in support of the biden covid Vaccine Mandate acting secretary su was one of the architects of the Vaccine Mandate which the Supreme Court ruled was illegal and unconstitutional. Acting secretary su tried to force 84 million americans out of work with and illegally and unconstitutional Vaccine Mandate. She cannot be the secretary of labor. She believes the federal government in washington, d. C. Should have massive power over the lives of the American People and it took the Supreme Court to stop her. Thank you and i yield back my time. Acting secretary su, weve heard the most successful Job Creation Program in the country is the registered Apprenticeship Program, but isnt it true that only 43 of people graduate from the registered Apprenticeship Programs . Yes or no . Its 43 . I would never grade anything on a 43 Graduation Rate as a successful. During your hearing for the committee you confirmed the department is not currently working on changes to the employee standard. Will you commit to us today that they will not pursue such changes during your tenure in the agency or the current acting capacity or if confirmed as secretary . Yes or no . Thank you, chairwoman. We dont have anything about a joint employee rule on the agenda. The department. Im going to take that as a yes you will not pursue such changes and yield back. You are recognized for five minutes. Thank you madam chair. It is an absolute delight to see you here as the nominee for the labor secretary as well and i say that also as an Asian American woman looking at somebody who is so skilled, so experienced, so qualified, such a record of success in your tenure and a deep lived experience of people who do the work every day that this country desperately needs making sure that you are standing up for all the things that america is great because of our commitment to our workers. I also want to particularly thank you for your leadership on apprenticeships and making sure workers have the skills they need to fill the jobs created with the 2 trillion in Infrastructure Investments that we were able to pass in the 117th congress. And to just give the statistics. Since january of 2021 when you came in, 584,000 new apprenticeships created. In 2023 so far, 90,698 new apprenticeships created. We know that under this president under democratic control of the house and senate and the 117, there were 13 million new jobs created since the president took office and the share of working americans is at its highest level in 16 years, so congratulations on a tremendous record of accomplishments. To promote broadbased Economic Prosperity would you agree that they are Key Stakeholders to build an economy that works for everyone . I think my record demonstrates that. You have some history with your own families experience running a franchise business. I wonder if you want to share that. For me the idea that a Small Businesses are the engines of the economy and that they are important for us to support is not an abstract thing. I know my parents owned a laundromat and dry cleaning business and i have memories of being a small child sitting on the dryer while my parents worked. Then when i was in high school they owned a pizza franchise. I remember because my sister and i often we got the pizzas customers rejected. What it means is what Small Businesses have to do. I learned about the struggles to hire and train and maintain a payroll. My dad worked alongside workers and the ovens but when he was needed to take orders he did that and when he needed to wipe tables. So i have Great Respect for the hard work, the investments, the risks, the challenges and the joy of what Small Business owners do because it is the reason i was able to go to college is that my parents had a Small Business. In my time as deputy secretary and in my time as acting secretary and if confirmed as secretary, i understand personally the importance of our role in supporting those Small Businesses. My colleagues across the aisle tried to portray you as someone that doesnt care about a business or employers but isnt it true and number of associations have endorsed your nomination to be the labor secretary including the society for Human Resource management, the la chamber of commerce, the u. S. Hispanic chamber of commerce, Business Leaders and a Small Business majority . Yes, thank you so much for that. I do think that for businesses and associations who worked with me, ive earned their respect and im grateful for it. Your collaborative approach is evident in your experience facilitating several contract negotiations. I find it remarkable that youve been endorsed by both the International Warehouse union and support of los angeles. How would you respond to critics who say you are not capable of being a neutral arbiter . Thank you for that. My record demonstrates that that would be false. Right now there are a number of highstakes negotiations going on and i have the experience into the track record to ensure the parties stay at the table that understand the complexities and understand how important it is for parties to stay at the table is something that i bring to the job. All my colleagues need to do is look at the facts and they will see that you are the best candidate to be the next secretary of labor and i look forward to that. Thank you for your dedication and commitment to the country and to this work. Ms. Steele, you are recognized. Thank you, chair for hosting this important hearing. Ms. Su they are the gateway into the labor negotiations for the west coast ports have gone now for almost a year in an agreement. West coast ports and terminals were shut down after Union Employees walked off the job. Disruptions in the supply chain will damage our economy and its been done because ive saw a lot of shifts during the covid times that its lined up on the shore of my district at that time. The secretary of labor walls or acknowledged this when he successfully intervened in a strike that threatened the entire country. So the question is what is the bureau of labor statistics telling you about the potential damage the portal shutdown might have on economies and the labor market . Thank you so much, congresswoman. I was very proud to work alongside then secretary of labor marty walsh on that negotiation where we brought the parties in for 20 hours in our office and had a tentative agreement. These negotiations can be complicated and prolonged and there will be ups and downs. When it comes to the port we are talking 29 on the west coast involving about 22,000 workers, iao w members and the parties have been in conversation since i got involved a couple of months ago they did reach a tentative about some of the complicated issues but they are not finished yet. They are still bargaining at the table. What you noted about those that were lined up, we also all that. That is not the case today. That is no longer happening and i think part of that is the reflection of workers showing up every day doing the hard work that they did throughout the pandemic to keep our cargo moving and keep the economy running and its a tribute to the employers who are also working very hard to make sure that critical lifeline as you say to trade and goods stays operational. That has been true in the last few months since i have been here sitting in my seat as acting secretary, and i am committed to supporting the parties as they work through the issues on the table and i understand they are continuing to do that. Its sounds like the negotiation will be done hopefully soon but my question is west coast port shutdown might have an economy and the labor market. What is the potential damages my question here. Thank you, congresswoman. I will have to get back on the exact figures but in general you are correct the west coast ports play a critical role. I believe it was like 40 of all cargo moves through some of the west coast ports but i can certainly see if we have more data. The general point that a resolution is important because of so much of the economy relies on what happens on the west coast ports is well taken. Its under negotiations right now and its very much hurting our economy so what are you doing to prevent the strike and work stops because its completely shut down after Union Employees walked off the job. Thats not really acceptable here so what are you doing to prevent that in the future . So, the parties are definitely at the table, they are working through some difficult issues. There are lots of things for them to be talking about. Ive heard there are negotiations but how about the shutdown . Im not aware of a shutdown. So, whats really going on is there been media reports that are not accurate. There is not a shutdown, cargo continues to move and the ports. There been may be a decadelong trend of some decrease in cargo coming to the west coast that isnt as a result of the talks that are going on but i do agree with your general point that coming to the resolution and providing some certainty and clarity is good for everybody. Lets go back to what kind of deal how are you going to resolve this dispute what kind of negotiations going on is that theres a lot of complications and a lot of things on the table right now. How are we going to do it its been what, almost a year and the negotiation was done. That hurts the economy ive been talking about so whats on the table and how are you going to solve it . Thank you, congresswoman. I do want to state cargo resumes to move and we will show up even during negotiations. The parties, the leadership of both parties is very hard at work trying to resolve the issues they have. If you wouldnt mind submitting and writing so the congresswoman the rest of your answer. Theres this idea that these negotiations are complicated if not unique to this particular issue but we see time and time again that the process does work and unions and employers reach agreements. You are a minute over. You are recognized for five minutes. Thank you madam chair. Madam secretary, i would like to apologize for the insulting way that you are welcome to this hearing. The opening comments were appalling, unnecessary and meanspirited and they were an attempt to cover up the extraordinarily great work the 117th congress and the Biden Administration did to bring our country through the worst Global Pandemic in a century. Thanks to the American Rescue plan, the infrastructure law, the chips and science act and the Inflation Reduction Act, we have the most robust economic recovery of any country in the world. We have the lowest Unemployment Rates in decades, and we have seen wage increases for workers who cannot participated in the Economic Growth that benefited. Large corporations into wealthy during the Prior Administration. So i want to thank you for your service to the country and the American People you work to help every day. As you and i have discussed previously i represent North Carolinas sixth Congressional District where we are enjoying the growth of advanced manufacturing particularly in the clean Energy Automotive and aerospace industries. We welcome this growth but i hear from employers in my district that they are struggling to find skilled workers to fill these good paying jobs. So, can you tell us more about the department of labors work to expand training opportunities to help workers gain the skills they need and also how congress can help with these efforts . Thank you for the question, congresswoman. So, we are really laser focused on this exact issue of meeting the need for skilled workers in the specific jobs and industries that are growing as a result of the important work of this body in partnership with the president to make historic investments. What we are also seeing into this is a tribute to good policy and how important it is when the federal government engages in policy that helps expand the economy and build jobs the private sector also contributes and so we are seeing hundreds of billions being invested in the same industries especially advanced manufacturing in ways that i think are going to have historic impacts on the economy Going Forward, building a strong resilient economy so our role at the department of labors to help make sure Training Programs are meeting their needs and recruiting from workers who and its important to say because its been suggested otherwise that workers have come back into the labor market to pre pandemic levels especially in the prime age workforce of like 25 to 54 so we are seeing again historic Economic Growth. What we need to do is finish that job and make sure that those impacts are felt in every Single Community and every worker that wants a good job can find the opportunities to get them and the employers who ive also talked to many who say they need to skilled workers its our job to help support them and not do it for them. The whole idea is that communities working together have solved lots of problems before but our job is to help support that and bring all the players in the system in line to help do this so one of the things ive not yet talked about his and 80 million grant that is specific to these particular sectors, infrastructure, advanced manufacturing, clean energy to help build proven models for training and also to help scale them. Not enough now because of the growth and jobs created and the point thats been made that there are lots of jobs out there right now that need workers. We need to be able to scale and move quickly to finish the job and thats something i look forward to doing and continue to do with you and this body. My district is also home to extreme universities and colleges such as North Carolina that recently got a 23. 7 million grant to build a Training Program for workers and the technical Community College that just received a 1. 7 million federal grant to expand its truck driver Training Programs. Should we be working more with our colleges and Community Colleges to create Workforce Development programs . I see that my time is about to expire. Thank you for your testimony and all of your hard work. Thank you. You are recognized for five minutes. Good afternoon to you and the committee i would like to yield to the gentleman from california. Thank you. Weve heard some comments from the other side as well to the effect of what is californias have to do with any of this but President Biden has himself said, and this is a quote, that he wants a federal standard modeled on californias abc test for all labor and employment and tax laws. So youre the acting secretary of labor, President Bidens chosen nominee to be secretary of labor and its fair to ask do you agree or disagree that its a good model for the nation . Congressman, thank you. Let me be as clear as i can about this. Its not federal law. It would only be federal law of congress decides that it should be. Ive not called for that in the federal level in fact ive explicitly during my time as the deputy secretary of labor when we created the proposed rule about independent contractor explicitly said that we do not adopt the test and in fact we cannot. I understand that however theres quite a bit of leeway in that rule and it says it is clearly designed to mimic the test in many respects of the disposition of the enforcer is important. I didnt get an answer, yes or no agree or disagree with the president s statement that the test is a good model for the nation, yes or no . I have to say again because the question seems to ignore that it is strictly in the purview of congress to decide whether the abc test would become the test for independent contractors on the federal level. Earlier you said you might have expressed support. To refresh your recollection shortly after was signed you were on the record and said not only were you going to be at adjudicating claims that came to you but we will be doing investigations and audits so those who want to comply with the need can do so and those who dont will understand and these are your words thats not the kind of economy we want in california. You celebrated its passage. Will you at least please recognize the people in california have lost their careers and livelihoods and ability to work . I want to also say that ive heard from people who said that and i think its important to acknowledge them. Ive had conversations as recently as a few weeks ago where we dont want, i dont want every policy to result in people losing their livelihoods or having to did it do that, did it because people to lose their livelihoods . Ive heard people whove said that and Something Different also. Youve heard people say theyve lost their livelihoods . Ive had people tell me that. Or did you not believe them . Even to the quote that you just read it feels like that quote is exactly what in my role as the enforcement of laws i would say which is we are going to enforce the law as it is written and we want to make sure we have an economy in which everybody plays by the rules. This is a book of stories. People who said, as you put it, that they lost their livelihoods. A couple examples. I worked years of gaining my skills as an American Sign Language interpreter it was my goal since i was 9yearsold. I lost all three of my agencies and i cant provide for my family and thousands wont be serviced. Is your message thats not the kind of economy that we want in california . My message to her would be a lot of independent contractors will always have a place in the economy. But not ours is an independent contractor. I havent had a conversation with her but i do think that its very important to reiterate that the policies at the Unitedd States are the policies that at the federal level or the policies that would be within the purview of the labor department. While you are California Labor secretary did you meet with any of the folks that lost their livelihoods . I did. I heard from many people on all sides about the impact after it was passed and as i said earlier i spent a lot of time talking to employers about how implementation could support them. Sometimes people had an idea about what it would do. California voters also weighed in on prop 22 that said we dont want it to apply. How did you vote on that . I dont remember how i voted on that. You dont remember . The one for huber, lyft, saying it isnt going to apply to them . I will give you a second to think about it. I want to say very clearly here that i pledge and i think my record demonstrates absolute fidelity to the laws as passed by this body is interpreted by the courts and delegated i appreciate that but do you remember how you voted . Your time is up. You are recognized for five minutes. Thank you madam chair and acting secretary su for joining us today. Its clear from your long outstanding record and testimony and answers here today you are committed to our country, our workers and economy and thank you for your love of the country and for your service to this country. My background is in education. I spent two decades working on schools before coming to congress so i believe that effective partnerships between schools both both secondary and higher education, local businesses, Workforce Development agencies are key to creating successful pathways to good paying jobs. Ive seen how important these partnerships can be up close. I want to follow up on the representatives previous question. Can you discuss the steps the department is taking to encourage that collaboration especially to support pathways like the stem workforce becoming increasingly critical to the economy, can you talk about that . Thank you for that question, congressman. In many of the programs that we are supporting and for which we are providing Technical Assistance, Community Colleges play a very Important Role. We have an opportunity now for millions of people throughout the United States who dont have College Degrees to actually get good paying jobs in advanced manufacturing and clean energy, and infrastructure and a whole host of industries that are going to allow them to build their way to the middle class and so having multiple pathways to that is very important. Working at the High School Level so young people can think about what opportunities are going to be available for them not saying theres only one path to colleges play such an Important Role and that is the space which the department of labor has done more work because of the role they play in workforce systems so in pre Apprenticeship Programs, for a young person to go to a Community College and gain the skills to learn math that will help them get a job in construction is key for them to then connect to the Apprenticeship Program in construction that then puts them into a job, a good paying secure job. We have a Community College Grant Program that i think is now in its third round in which weve invested 135 million in Community Colleges to this end. And so, i think the partnerships, our job is to align the various parts of the system so that they work as seamlessly as possible for employers and job seekers and workers. All of these are important and ive also since ive been in this position spoken to the secretary about the collaboration between the agencies to make sure that this happens. Thank you for that answer, and youve mentioned interagency collaboration and that is important to the work you do and we should all be doing here. How are your agencies working to gather . Can you dive a little bit deeper into that . I have a concrete example to share on that which is teacher apprenticeships recognizing that teachers work throughout the pandemic. I have two children that relied on their teachers in times where they had to adjust and find new ways of teaching and they were doing hybrid teaching so we have now in this country the need to build the teaching workforce and its our turn to reinvest in that workforce that has given so much. We worked with the department of education to expand teacher apprenticeships from in january 2021 there were two states that had them and now there are 17. We are not finished with that work so that is one concrete way but another is what we talked about, looking out how to better align and move systems, how to get the local workforce, how to get state workforce systems. The department of labor spends a lot of time. We have a conference over 400 workforce leaders came to hear about our vision for how we made meetthe Workforce Needs of the s created. Committed to making sure the educational system fulfills the role so we are talking about all kinds of other collaborations that would help to make this system work for the kind of things weve been talking about here today. Thank you and i yield back. You are recognized for five minutes. Thank you madam chairwoman and ms. Su for testifying as the committee begins the consideration of the reauthorization im grateful we are able to process some of the progress that has been made or the lack thereof over the last two years. 40 of ablebodied adults are not engaged in the workforce. Every time im in the district i hear more and more from employers that they are we looking for workers and employees. You put a frog proceed in the administration to meet that potential so im going to need you to answer some of those problems for me and my constituents back home there are provisions that have not been implemented as congress intended. Under the regulations the state commits by 50 and still considered a success. To put this in context with of the agreedupon level of performance its just 39 of participants employed in the Second Quarter after exiting the program they would consider that performance a success. What grade would 39 to be in school . Thank you for that question. I do believe that we have to support Training Programs but also hold them accountable. Make sure that, for example, they are actually providing training what grade is 39 . The letter grade for 39 with bmf. Arent we setting the bar too low when we say 39 performance is considered a success . Yes or no is that setting the bar too low . Im not familiar with the exact metric that youre talking about or how its set. For example if youre telling me that we are not, in our implementation complying with what Congress Says thats thatsomething i would take very seriously. In october of 2022, they published a notice of the proposed rulemaking rescinding and replacing the independent contractor rule weve heard some about that today. In its place they proposed the six factors economic reality test to determine whether a worker is, quote, economically dependent on a company under the totality of the circumstances. And in essence saying if they are economically dependent they have to be employees and not under a 1099. Shouldnt the American People have the freedom and opportunity to decide what Work Environment is best for them . Thank you for that question, congresswoman. So the proposed rule by the department of labor does adopt a multifactor test. I dont have much time. I understand its a multifactor test but let me give you a reallife example. So, i was a stayathome mom for five years and during that time i was an independent contractor under a 1099 and i was only operating under a 1099 model with one entity so under these definitions i would have been qualified as economically dependent and under the rule proposed unable to participate in the workforce under that model. That doesnt seem very american to me under the terms of freedom to decide for ourselves what is best for us and our families and in fact if the rule had been in place when i was a stayathome mom i would have chosen not to engage in the workforce as an employee. Will you commit to protecting the independent contractor rule for people like me . Congresswoman, i certainly want to restate that independent contractors will always have a place in our economy, should have a place in our economy and play a very Important Role. Will you turn away from the proposed rule . It isnt the factor that we invented, its factors based on decades of we rescinded that rule is inconsistent. I would encourage you to continue to turn away from efforts to undermine the independent contractor opportunities for american citizens. One other thing i want to ask in the limited time i have now youve said repeatedly as passed by this body, you want to do only what this body intends you to do but we havent ever passed a bill yet taking away opportunities for independent contractors yet your agency is implementing such a provision by rule is that correct . It isnt to destroy livelihoods. Our job is to enforce the fair labor standards act and the rules weve proposed it is a rule that in the states was consistent with federal law. I would ask that you answer the question in writing. Thank you very much. Thank you, madam chair. First, i would like to introduce some letters of support from businesses referred to by my colleague. Id like to apologize for the tone and tenor of this hearing. I worry that we lose many great candidates for Public Office who simply see this kind of thing on television and are not willing to put their name up for this kind of questioning. I truly believe americans want to see more civility and decency from their elected officials but unfortunately i dont think weve seen a whole lot of that here today but i do want to step back a moment and talk a little bit about this joint employer or independent contractor rule. Theres been a lot of questioning without a lot of opportunity for you to complete an answer. Am i correct, first of all, that much of the case law that you referred to arose from the fact the independent contractor classification was often being abused by employers either to avoid payroll taxes, benefits or other things . Thank you for that question, congresswoman and also for reminding us that the reason there is a rule is that the misclassification, now this is not about ending the modified independent contracting but its about making sure everybody plays by the same set of rules and when someone should be an employee and enjoys a centurys worth of labor law protections basic minimum wage, overtime, unemployment safety net, Workers Compensation that they do get that so thats a long way of saying yes there has been litigation about this and that has created a body of case law. When there is abuse of the independent contractor classification its actually to the detriment of American Workers, employees or people who should be treated as employees entitled to the benefits of that classification, correct . That is absolutely correct. There was reference made to the fact your family owned a franchise business when you were growing up, so i assume from that that you have respect for the franchise model as a way for people to get started in business. This is not an abstract issue for me and ive heard directly from the franchises about this that it is a way that individuals, immigrant communities get into the middle class and that is the story of my family. Thank you. So, with regard to the joint employment related issues there seems to be some confusion among the questioners today about who created that rule that is being objected to. There is another separate set of laws and rules. And its from the department of labor is that correct . Absolutely yes. So, this joint employer rule isnt something on the department of labors regulatory agenda and as such wouldnt be something that falls under your jurisdiction is the secretary of labor. That is correct. Is it true the only reason the department of labor handed o take action to rescind the rule is because the higher court instructed it to do so . Thank you very much, congresswoman so theres two different things. One conversation we noticed a rule on that the other thing youre talking about is there was a joint employer rule of the administration that we had to rescind because the court found that was out of step with the law. When you say the Prior Administration you mean the Trump Administration. Created a rule that the court determined wasnt a valid rule and instructed the department of labor to rescind that. I dont remember those specific instructions but we were not keeping a rule in place that wasnt in compliance with federal law. Thank you very much and with that i will yield back. You in the gold prize for today. Mr. Wilson you are recognized for five minutes earlier you said you had no hand in writing the california rule, correct . Correct. No input, no advice . I dont remember specifically about that particular rule but i will say that in my rule in the State Government and executive branch we would sometimes be asked for Technical Assistance on implementation how would this be implemented. You said also and i found it remarkable to hear that because where i come from in the state of missouri, our directors, our Department Heads every agency head is actively involved so do not provide counsel and input would be negligent. Youre referring to Technical Assistance. The question asked is whether i helped write the law. You said that you would not endorse or support taking that long nationwide is that correct . Would you support the rules of 85 to go from california to nationwide . When putting together a rule about independent contractor versus employee status the department of labor undermine leadership into the former secretary we were explicit governed by what the law allows. People in my state want to know as well, we have a very wellfunctioning system for Workers Compensation on the state level. There is credible fear that there will be rules changed from your department that might impact the states thank you for the opportunity to talk a little bit about. We have under the department a program that administers federal Workers Compensation programs. We do collaborate with the states at various times. One of the things i said when i came in his instant of individuals who both would be covered by the state or federal to navigate the system we should do our best to work with state systems to make its my hope that you leave the states alone and let them do what they do better. It was disastrous for the state of california and i say that as someone in the state of missouri we received a lot of employers and workers as a result of that and i want to. 1 out to you. Her name is [inaudible] she owns and operates a trucking company, had her own benefits, everything was her decision and according to the rule she wasnt smart enough to know whats good for her. But she had a choice give up her company or work for somebody else. She chose to leave california and moved to gods country, missouri. Im glad to have her as a citizen. I will turn the remainder of my time to the gentleman of california. I wanted to give a chance to revisit your testimony from the exchange about prop 22 that was passed by 60 of california voters that we want drivers, door dash and at the base drivers to be independent workers. You were secretary of labor when this passed in 2020 and your testimony was you do not remember how you voted. Theres a lot of important issues in california. I am no longer in the government there but certainly as the acting secretary of labor it is my job to work with all states. So you stand by your statement if you do not remember how you voted on that proposition . Im eager to work with you [inaudible] thank you. Ms. Hayes you are recognized for five minutes. Thank you. Thank you, acting secretary for your testimony before the committee today. I hear from constituents in every sector of the economy about the workforce shortages. We need more teachers, farmworkers, nurses and engineers. I also want to thank you for your comments were earlier about the department of education and teacher apprenticeship and the teaching workforce. There is a dire need in that area. In the 117th Congress Democrats invested in Infrastructure Energy and manufacturing to address supply chain issues but we still need to train workers to perform critical jobs in these sectors. To train workers post jobs and higher every year however there is more work to be done to close the workforce gap. It is estimate the u. S. Spends about 500 million a year and individual training accounts serving about 220,000 dislocated workers nationwide through partnering with employers is a key strategies to ensure that workforce training initiatives and American Job Centers match the needs of the region. Acting secretary su how can congress scale of our programs such as career counseling American Job Centers another employer programs and additionally what has the department done to foster more corporation between employers and Training Programs . Thank you so much for that question congresswoman. As you know we have federal investment in creating a high functioning reliable Workforce Development system that trains people in their communities for the jobs that are there because this Biden Administration working with the Biden Administration jobs are coming and we take that obligation very seriously to work with states and cities and some of the most effective Training Programs are local and developed by employers and their partners. They are cant be unions or trade centers or financial cetaceans so people can get jobs in the communities and they dont have to leave their committees to find good work. We have made investments specifically in industries where we see challenges of recruiting and training the workforce and also in industries that are growing as a result of a bipartisan infrastructure law at those kinds of investments. It thank you. Im pleased to say the departments budget includes robust funding for strengthening Community College programs to build capacity in the workforce. People often overlook Community Colleges as part of Workforce Development. In my district were in the graduate partners with north or read investment to train qualified adults and dislocated workers in various programs including manufacturing childcare or Legal Services horticulture. Can you talk about how the department and congress has partnered to boost and strengthening Community College programs as part of the Workforce Development pipeline . They play an incredibly Important Role. They are partners in training partnerships and one of the partners that helps to provide whether a pre Apprenticeship Program to help them prepare someone for the workforce in the community and whether its somebody whos been in the workforce. Wants to upscale and changed jobs and improve their salary or Wages College is one way to do that and thats why we do have to strengthen the strength and committed to colleges grant where we put out 135 million to allow them to play that role in ensuring that their programs are tied to jobs in the communities where they are our friends are from. It thank you and i so appreciate that because we all know its different for everyone. For some people is hired to qishan and furthers its Workforce Development. Thank you for your commitment and connecting people to work in doing that safely appreciate your testimony today and i yield back. It thank you. You are recognized for five minutes. Act during secretary burlison to accept responsibility for the 32 billion in unemployment fraud that was under watching california. It thank you very much for that congressman. I certainly know i in many of my colleagues and others who have said in the same position that i did when the pandemic hit wish we had the system that was capable of meeting the needs. That is why in the time that i have been deputy secretary i focused on helping im sorry. Lets focus on the question was asked. Do you accept any responsibility for the unemployment fraud in california, yes or no . The insurance system that delivers in a time of prices should be the goal of everybody in california system do you accept responsibility for the unemployment fraud . Let me answer this we congressman so we are clear about what happened. Over 95 of the fraud that appears in california and across the country occurred in a program called pandemic i nestande all of that and i speculate that they are things beyond your control but do you accept any responsibility for the unemployment fraud . Like the state auditor said the reason for the fraud that occurred in the program were two things. One is the completely unprecedented spike in claims and the second was the Pandemic Assistance Program in its design did not have the same bylaws that insurance has. They were designed by a group of individuals i happen to have it right here the report. Despite repeated warnings the cdc did not bolster its fraud detection orders. You and your testimony in the senate, you said as soon as we knew that there was fraud happenings i shut the front door to that fraud. That was your testimony. As soon as we knew there was fraud happenings i shut the front door to that fraud. And the independent Auditor Report that you just cited does exactly the opposite so how do you reconcile those two things to . Im not sure, there were two reports. What you said or what you put in the essay i was talking about one of the things that was builtin to the program was im aware you make changes but is this at report wrong despite warnings . What i said when i said i shut the front door we stop the automatic backdating that meant that somebody i understand that im not asked ask about that. We are the statement from a democrat to share the Assembly Accountability review committee and she said there were simple and obvious steps submitted across the country and she said that you in particular have not done a good job running the Employment Development program and bullets as a result have millions of dollars in cause heartaches to millions of californians. Assemblywoman wrong about that . To be clear congressmen i did not run it. It. I it was labor secretary california. Several agencies billed to my priddy took responsibility for our needs. There were desperate californians were hard hit by closures in loss of a job and relied on unemployment. It so you do take some responsibility for their fraud. Say that i do. We did not delivers in the way way we hope to the delivered. The fraud the editors found was a result of spiking claims in the design of the program. Im not criticizing. The fraud and abuse theres no place for any of that. It led to steps that we had to take to shut down fraud which caused delays in claims. Is anything that you may have done differently that would have prevented the fraud . Thats why in the time ive been in office had been focused on trying to help. System that will work in the next crisis. That looking back, 32 billion issued some of money we are still paying the price for that. There anything you would have done differently a secretary . Again the system needed to work with the people who needed it and people got the benefits they needed to help them keep food on the table and help to support the economic recovery that we see now. Madam chair him out time but i would yield back in just no we have a nominee here to 32 billion in fraud in the state auditor found it was because of the performance of her department and still hesitates on the one thing she would have done differently. Mr. Stevens you are recognized for five minutes. Ms. Su is so great to see you and i want to clarify a couple of things briefly. Under your tenure at the department of labor deputy secretary im aware that 4600 new registered Apprenticeship Programs with 11,000 new employers partnering and apprenticeships have occurred you worked with the former labor secretary margaret was to help President Biden the fastest job recovering nearly 40 years a record 14. 1 million jobs since President Biden took office including 800,000 manufacturing jobs and this is something in my home state of michigan we are feeling in our home. We have record low unemployment so madam would like to salute you and thank you for your readership of a very Critical Agency during an unbelievable, unprecedented time in our nations history. Thinking about this unemployment issue, Insurance Fraud issue in california the first is this the pandemic era fraud was widespread across a multitude of states from rhode island to new york tennessee South Carolina massachusetts. California is a huge state and multiple states west of the mississippi when this country was created. Thank you for that congresswoman. We had one in five claims in the entire country and even having that their fraud rate in our system was less than that of a dozen states so thats because of measures we took to stop the fraud when we saw that it was happenings and isnt it true that 95 to 90 of fraud in california was not from the regular insurance program. Actually from a specifically creative pandemic unemployment Assistance Program and subsequent audits have proven this to be the case. That is absolute true. Is it true that the california state auditor did not find any directives or decisions you make are to californias unemployment system . That is true too. To be to be clear congress created that program and it was bipartisan to the country was dealing with an unprecedented virus and it was put forward by president who is currently under indictment by believers into the and so was created by the cares act. He signed it and acting secretary su isnt a true california actually giving benefits to people who needed them and should have received them in study by the Century Foundation found california was second in the nation in doing this . Yes thank you congress when its true. Just to clarify for the record because we lived her lot with covid 19 and what happened under President Biden and Inflation Reduction Act was signed into law and an infrastructure law we spend some money and we have seen 400 billion in capital contributions coming as a result. We are training and im from a state with the largest number of first robotic teams and i cant wait to bring you when you get confirmed to see this robotic teams. As a founder of the bipartisan bipartisan bipartisan readership at the top matters. Its going to matter a lot to my district in Oakland County that is inundated with manufacturing and leading the way for multiple multiple multitude of transformations in our auto matter automobile sector. I want to thank you for it you have accomplished at the department of labor and i cant wait free to see whats next. Thank you and i yield back. Mr. Morants recognize. Under secretary su youve heard one of my colleagues say that Leadership Matters and accountability and transparency is a large part of that and is a leader youve had to meet with your subordinates and those that you oversee and supervise and you are asked tough questions at some time. When you asked direct hard questions of those who you oversee to expect to get clear and precise answers in return . Yes, sir. And theres a benefit to that. You need to hear the answers whether they are tough or not is that true . Yes would you believe this committee has oversight responsibility over the function to perform and we ask those tough questions sometimes. So im curious why have you work so hard today to avoid giving direct answers to the tough questions of this committee . The thank you congressman. Im not trying to avoid answering questions. When i ask questions of my staff and u. S. May here expect people to give me context so i can understand the accuracy and what the answer is. Are you saying mr. Talleys questions were out of context or were not clear to you . Ive heard a lot of my colleagues asked a number of questions and you avoided most of them. Congressman im sorry you see it that way. I think youre oversight role is important in answering questions as importing and doing my very best to do that. I dont think every answer gives rise to a yes or no answer. Can you commit for the range of this hearing to give good direct answers to the questions. It ive been trying to do that the whole time ive been sitting here. Was with that commitment i will turn over the balance of my time to mr. Talley of california. Thank you. Now that we have that commitment maybe i will try again did you vote for prop 22 in california a yes or no . Congressman im sitting before you today to talk about the department of labor and i work for the department of labor and youre asking me about a vote i took at a time where we have secret ballot votes in this country and im trying to say one way or the other. I offered a little while ago to say im happy and eager to work with you on the many issues that you raise that californians face. This is an oversight hearing so i believe its relevant to our Oversight Commission and you refused a clear yes or no question that you could possibly give an answer to. It mr. Chairman it mr. Chairman a point of order. Youve asked that question several times. I want to clarify because im a person of my word. I said explicitly not every question is a yes or no question. I would give you the most Accurate Answer that i can and ive been willing to do that for as long as we have been sitting here. Back to your employer roles thats not on your agenda right now so are you not planning on doing changes under your tenure as secretary of labor . I pledge to follow all of the rules of the department of labor of this body and oversight. We will not do a rule that we havent followed the rules to do. I said from the beginning we are delivered if when it comes to his rulemaking. I didnt ask about engaging stakeholders stakeholders what a are are you planning to do any changes yes or no . We dont have a plan to do that and its not on our agenda. Say can you commit to not making any changes as secretary of labor . This is why what im saying is i commit to following all of the rules of rulemaking and everything we are required to do and i pledge that we will do it under by leadership in my tenure at the department of labor. I cant sit here at this moment to tell this moment until he withstood everything is going to happen. You were also asked by mr. Banks about the child labor crisis where he sang in your confirmation hearing a senator asked to was that communicated to the white house prior to this year . This is a major problem in your answer was i dont know the answer to that question. He said he didnt know whether that has been communicated to the white house would have problem is child labor crisis was. Do you remember now what you communicated to the white house prior to this year . That prior to this year . I will say that we have, there is an Interagency Task force that the white house put together and put labor in charge of. Im proud to play that role and its Important Role with conversations about how to address the scourge of child labor in this country. Its very important that you might have wanted to let the white house know about. Congressman fernandez is recognized. Thank you so much and i really do want to emphasize the manner in which President Biden in the Democratic Caucus and even going back to the cares act that you pointed out in a bipartisan manner has worked so hard to create so many jobs and we are so proud of it. In new mexico we have some of the lowest unemployment in history and thats the case across the country. The other important piece of it is not just have we created jobs but have we stood with workers . Its also the quality of those jobs and whether the workers are going to be able to receive the benefits, the overtime and those things that are key so that they can also prosper. There is a difference when you stand with a Corporation Versus are you standing with the worker and in many ways it sounds to me like when you are looking the independent contractor issue is about who you are going to stand with, the workers are the corporations . In a situation where a worker, a single worker is trying to make sure that their rights are protected who has the power in that situation secretary su . Thank you very much for that question congresswoman. I view my role as acting secretary of labor in the Department Secretary role that we have to, that we investigate cases and we make sure that workers feel safe reporting violations to us so we can learn about those violations and where we find them we will enforce the law including issuing citations and penalties to employers where appropriate. In some sense the department of labor is there to serve as a backstop because individual workers who might be with their overtime in an independent contractor position they need somebody to be on their side in it that sense the department of labor should be on their side. There are a lot of questions around the acting secretary su yes or no does the proposed rule implement californias law and acted . We cannot and will not and is not the loveland. We are happy to have you as secretary United States department of labor. Hardly anyone had much criticism about it even though concerns in the past. Acting secretary su is it to the department of labor has stated it not have the authority under the flsa to implement the test apps in an act of congress . That is to congressman and yesterday believe in the separation of powers and the department of labor does not have laws and instead only implements loss of the Congress Passes . Yes congresswoman. And this fearmongering about what you do and how you voted around ad five what we are talking about here is the United States department of labor. You did live in california. Acting secretary su did you serve in the California State Legislature . I did not. And who passed 85 in california . It was the california legislature. And where were you when the state law was passed . I was the secretary of labor. As secretary of labor what was your job and your requirement to do once the Legislature Passed that law . Thank you very much congresswoman. Diver saw those includes with enforcing laws passed by the legislature so our job both as labor secretary in california and the agency that oversaw to enforce the law. What we should be asking you you now in which i think you a party said it similarly the manner in which you honored your application to the constitution in california to carry out the laws. Are you committed to carry out the laws and honor an application and an oath to the constitution to carry out the United States was regarding labor . 100 yes. Thank you so very much for your dedication and your service. Service is really an act of love big is it require so much and you have taken a lot have been so gracious and diplomatic in answering the questions today. I think thank you and i yield back. Mr. Good you are recognized for five minutes. Thank you madam chairwoman and thank you acting secretary. Acting secretary said employers should be able to exercise their religious freedoms that were . I do believe them religious freedoms yes congressman. So what limits would you place on their First Amendment right as employers . Congressman youre asking me something that is outside my area of expertise but i do believe in religious freedom. You would not place any limits on employees . Congressman i dont know if youre asking about something specific to the department of labor has done. I would like to know if you are putting limits on employees about religious freedom at work . Thank you cards women. If youre referring to a rule of our agency under the office of federal Contractor Compliance program but we did there do you think religious or faithbased organization to be able to operate let me answer it this way. The department is committed to her protecting religious freedom on behalf of all americans and no one should have to choose between earning a living and practicing their religious beliefs. Good to hear that so what limits would you place on the faithbased to practice their religious freedom . I think you are asking about zero ccp. Since you reference that the department the new world they came out the weekend the Trump Administrations rules on protecting organizations right to hiring and specific is what we are referencing is your where of citibank employers First Amendment rights thank you congressman to the religious exemption is still in place. What we did in rescinding a rule of the biden mr. Shin was to restore the longstanding practice which is related to the test for religious exemptions. Excuse me there is a long place that prohibits discrimination obviously, legally prohibits discrimination or whatever they are faithbased organizations does have the right to practice in their sincerely held religious beliefs but what your role has done is try to make it easier for them to be sued on the basis of hiring if the hiring would compromise their deeply held religious belief so do you think employers have the free exercise right to hire . The religious exemption is in place and her agency is charged with enforcing authorities to protect workers from discrimination and we will faithfully apply the law on both of those. Those areas. I would say dl egregiously to participate in federal contracts unless they are willing to violate those deeply held religious beliefs so what assurances can you give that you will protect religious freedom including the First Amendment right of religious organizations dealing with federal contractors. The religious exemption is still in place and i want to be very clear about that. Lets move on you wrote an article in the seattle journal in which he said the very definition of a corporation is an entity created to permit maximum income and designed to insulate individuals that promote and perpetuate economic injustice so youre saying the companies for which you have Enforcement Authority are instruments of thank you very much mr. Congressman. I think that was from a speech maybe and without broader context i will say i have and will continue to and have for many decades worked with corporations of all sizes. Do you believe that companies are inherently unjust . No. How would you characterize your viewable corporation today based on what you said or wrote . Corporations play an Important Role and i think corporations talking about what the department of labor does they can be job creators and they can be Small Businesses and they can be large businesses. Im talking about something you said but he said latino workers view asians generally not as friends or strangers that his enemies the very source of their daily subjugation. What did you mean by that . Limited again latino workers view asians not as friendly. Enemies the source of their daily do you think latino workers view asians as enemies and the source said there im going to do my best with that. Thank to believe that asians generally quote the latino workers view asians generally not as friends or even strangers that his enemies in the daily source of subjugation. You believe asians are subjugating latino workers . I believe what i was talking about when i came to government when i worked at a Nonprofit Organization representing workers i was describing so you dont believe that . I dont believe it is a general manner. Thank you madam chairman i yield back. I would encourage you to answer mr. Goods question in writing. Thank you very much. Mr. Scott. Sorry mr. Mrvan you are recognized for five minutes. Thank you chairwoman and secretary su how are you doing . I want to thank you for coming to my district in that experience was where we were able to join the first lady and joe biden at Community Colleges because of the investment from the ministry should specifically the Renewable Energy where students were able to participate in creative future were themselves but i want to give an opportunity to talk about how the department of labor and Admission Administration is investing in jobs and thank you for joining us if you could share that with mayorga per se. Congressman thank you for your hospitality on that trip. We were there with the first lady visiting ivy tech Community College which is an example of how ineffective workforce system combines the resources who painted the two present employers with jobs and the need for skilled workers and union jobs to a Training Program that pulls from the community including in an intentional with people who are normally left out of good jobs if we dont think about about who we are for crude and who we train. That is a model for what we have been doing since ive been at the department of labor and something the department of labor would be committed to if im confirmed as secretary which is to align all the pieces of the system to meet Employer Needs and to meet the desire of job seekers and people who are in the labor market seeking to upscale for these jobs. It was a fantastic demonstration of how jobs and advanced manufacturing like some of the new Clean Energy Work thats being developed thats creating multiple opportunities not just for semiconductors and not just for things that are created that actual people to find their way into the middle class. I just want to take a minute and talk a little bit about in the very beginning of the meeting it was mentioned about the administration in unions. This is the strongest administration for union labor in the middle class uplifting the middle class and history and thats probably why its being attacked. When we go forward i think its important for us to realize that union jobs and union wages with all wages throughout every community in my district in northwest indiana its vitally important. When the frustration in the chips inside sacking components that include union labor thats lifting up america in the middle class and thats why im here in congress and hopefully thats why the administration keeps fighting for those middleclass jobs and keeps fighting to make sure we are providing a pathway for good wages, safe Work Environments Health Insurance and good pensions. If we can change it that america will be better for you. I know my district will be so i ask you to keep fighting for those and all workers and to keep in mind union labor lists all wages and lift all boats and i truly believe that an i thank you for your commitment. Thank you. Back thank you very much. I now recognize mr. James for five minutes. Thank you madam chairwoman. Madam secretary thank you for being here today. Im sure these hearings are very exhausting and i was a pilot in the army and i remember in my examination and died burchett you being here but i have important questions from my district. Franchising is one of the surest ways for americans to achieve the American Dream. As a walking recipient an result of the dream my father came up in the jim crowe south with a truck and trailer to achieve something he didnt think was possible and was able to pass a profitable business to his family. Many folks in my district around the country are able to achieve a Better Future for themselves and for their families but there is a growing concern among one of my new neighbors in Shelby Township of Franchise Owner basically shearing and appears the policies, from the deal and the Biden Administration who disrupts not just her Business Model but the franchise Business Model. The pathway for so Many Americans would be distracted. And she asked me tell you in relate to the bite mr. Chavez chavez she has a right to fully own and run her business that she sacrificed for and she need your help in protecting that American Dream. Those policies run contrary to that. If these policies are enacted specific to clear policies she fears her business will be shut down and she will cede her operational control to the federal government. We all understand exactly what seating is this to the federal government means. I would like to know so i can tell her why does it seem so often that the administrations adversarial in particular policies that cast entrepreneurs aside. Congressman thank you so much for that question. I think you can tell her that from me my family also under franchisee business. My parents went from my dads flipping than ever grant. He exchanged coins at a casino when that was still a job to do. My mom worked temporary jobs. My parents own a franchisee business doing just as you described it help them to move from insecurity to security. It was the reason why my parents were able to pay for both of my sister and me to go to college. And given your background and your personal Family Experience do you agree to Franchise Owners are Small Businesses . Absolutely. Many of them are, yes. And so given your personal experience can you commit to know more additional rulemaking . Thank you congressman. Appreciate the opportunity to have discussion the discussion about these issues because sometimes i think the top pass each other about things. There is no rule about the department of labors agenda at all. That means a commitment to no additional rulemaking on an agenda. Can i have your commitment given your familys background and your personal experience and the fact that smallBusiness Owners are the pathway to the American Dream can i have your commitment today . You have my commitment to work closely with Small Businesses to make sure that what we are doing honors their struggles and honors their work. Im not asking that question directly because whatever we do its inappropriate for me to say with certainty. There are lots of things i think a commitment to the American Dream dream is worthy of a direct answer given your families experience and additional rulemaking. If i can take that back to her further commitment and youve said its not on the agenda. If you can do that Going Forward that would be great for entrepreneurs and franchises depending on this Business Model. I congressman let me put it this way i do not have plans to do that and if i did i would put on the agenda. Theres nothing on her agenda was suggest we are going to do a joint employer role. What may be causing confusion maybe i can clarify here their agencies that are not affiliated went to a confirmed there has been very little the federal government has done to engender trust among the oregon people and im looking for confirmation that you would leave that one alone so we can have have stability is folks to reduce restored the American Dream ended up like we dont have commitment. Thank you mr. James. Ms. Letlow you are recognized for five minutes. Saying thank you chairman and acting secretary for taking time to come before the committee and support in Congress Administration continue to invest in room activities such as my district. And create opportunities to help these poor simpler. We have been to benefiting like since 2001 north shore technical Community College has hosted a highly successful Youth Build Program in the rule rural improper sharing this program has an impressive degree in a certificate rated 96 of thats above date average placement rate with many students choosing to go on to attend north shore Community College to further their education. Unfortunately the department did not award the program in the latest grant competition and its my understanding this department has been awarding grants a number of new applicants while many longstanding Successful Programs were shut out. Im extremely disappointed with this outcome as are my constituents in some of the feedback the Department Department provided on north shores application said it did not do enough to promote green jobs and share post Program Employment to give students the opportunity to collectively bargain or form or join a guinea and increased equity in apprenticeships for people of color and women. This is an conclusion because im told it that least half of the Program Participants are minorities and women. Acting secretary why did the apartment start picking its own agenda items over the original intent of the program which is providing education and Workforce Development and life and leaderships skills for a school youth and why did department not hurt ties performance metrics a successful longstanding Program Just Like the one in okaloosa . Thank you very much congresswoman. I will say in general the things that you said are consistent with how i view the need that we should support programs that prepare people and communities including Rural Communities where they may not always enjoy the investment or understand that the government is there to support them. We should use datadriven proven models and i dont have specifics on the issue that you are asking about. I do know that we have a workforce opportunity and Rural Communities grant different than the spills the specifically to invest in Rural Communities recognizing there are in different needs and some of those needs have not always been met and we be happy to make sure that you and your constituents are aware of other Grant Programs that we have. I dont have details on exactly what the program is that you are talking about. That was the feedback they received that was it was about not being able to join a union or a Green Initiative and a program has been incredibly beneficial for my district since 2001 so its devastating that they were denied this year. I want to switch gears to the change in h2 a. Effects of wage rates methodologist while increasing the wage rate for its qa workers in certain job classifications. I believe this is probably the most detrimental role that is hit louisiana agriculture in years and has created throughout u. S. Agriculture. And we see agriculture. In louisiana h2a workers who drive sugarcane trucks from the fields to the sugar mill will have their weights raised to 22. 6060 broward has almost a nine hour increase in one year. The impact of the sugar harvest drivers on what caused costs sugar farmers 37 million in original wages. The impact is the severe to many commodities in my district and across the nation and i must insist the estimated impact of the h2a wage rule of 100 million has been underestimated and will cause severe hardship for the agriculture industry. Acting secretary connectome if the department solicited meaningful incidents prior to promulgating the rules . Thank you so much for that question congressman. You are referring to the h2a program on one of its components is to make sure this isnt an adverse effect on u. S. Workers by using the program and thats what you were talking about referred to. As i sit here as a department we are very deliberative in the creation of many rules and we do engage with stakeholders to fully understand the impact of our rules to make sure we are taking account of the multiple perspectives and impacts and to make sure that we get it right. Senator claimed to have industry ever indications that there was low participation in the survey and if you asked my constituency would have known about these enormous increases in operating operating costs and putting farmers of business from louisiana. How many Agricultural Producers and it answered this survey are provided feedback. We will have to have a acting secretary some better answers to u. N. Writing. All of us would like to know the answer to that question. Thank you. I recognize Ranking Member prescott for five minutes. Thank you madam chair and ms. Su your life story is an inspiration and the announcement of your nomination it was mentioned your mother came from china on a cargo ship that she couldnt afford the fare and later in her life she talked to the president of the United States said that her daughter was going to be nominated as the secretary of the United States department of labor and a career in between is an inspiration. Now you have maintained your composure but at its core and while many try to explain what they would do the senators which they are not her challenge you on what you have done to her job production even after the administration that you belong to create more jobs than any president ial administration has been able to do in a fouryear term. They attacked your credit and they attacked your character but not the Record Number of jobs you have created and let me just say a word about the independent contractor. A lot of them said how it hurts independent contractors and i think you mentioned if you are misclassified as an independent contractor or a resident employee you arent allowed employment compensation Workers Compensation in ms. Donald trump overtime and employer contributions for Social Security and you missed out on health and pension benefits that other employees get so the employee has a lot of disadvantages being misled by their employer that benefits the classification because they dont have to pay the social Social Security tax and they save a lot of money on the other making it an unfair competition to get those classified people fairly. He talked about the joint employment rule. The only thing the franchisee the franchisees are not hurt by any joint appointment rules. They may be held responsible for what they have done by the state who employment rules although thats not on the agenda. I think it should be clarified. Could use a word about why you need more money for osha inspections . Thank you very much for that question Ranking Member scott. Our osha works to ensure that some places are safe and healthy and every worker who goes to work at the beginning begin of the day returned home. In 2021 there were over 5000 working people who lost their lives on the job and a have leased 2 million who had workrelated nonfatal injuries. These are entirely preventable and we should be doing everything we can to make sure that workers dont have to work under unsafe conditions. If you get the allocation you have requested he would be able to investigate and visit each business once in every 100 years . If you get the increased allocation can you say a word about what you are doing for your employment particularly disconnected youth . Thank you so much for that question. As we have talked about here today young people have tremendous potential to benefit from the robust economic recovery that we have had in the fact that a large number of jobs that we created will not require a College Degree so we have investments in youth across our workforce everything from apprentice programs and pre Apprenticeship Programs to use programs that will make sure young people understand we want them to succeed. Some employers want to be able to discriminate in a policy of not hiring people of a certain religion and still get a federal contract. I would hope you would do a thing you could to avoid that and could you say just a word about why its important to increase sanctions . Thank you so much for that question too. We have talked about child labor here today. What we are seeing in situations where you have really exploitation of young people and the penalties we were able to assess in that particular case had over 100 young people was about 1. 5 million. Its now widely considered not to have been enough to deter those violations so we are happy to be responding responded to requests for Technical Assistance from congress about what it might look like. And unfair labor practices and organizing . That is within the purview of the National Labor Relations Board which is a separate body from the department of labor. We dont have rules about that particular issue. Thank you madam chair and thank you so much. Testimony. And madam chair could i enter into the record several comments have been made about the child labor and as you know we sent a letter to you a few days ago to schedule a hearing on child labor abuses and i was delighted to see a colleague from indiana mention this as an issue so maybe we can Work Together and get a hearing on that. You wish to enter the letter into the record . Yes. Without objection we will do that. [inaudible conversations] [inaudible conversations] i would like to again thank our witness for taking the time to testify before the committee today. I made several, was asking the respond to questions from people at ran out of time and went overtime. And i think your staff is taking notes and our staff is taking notes so i would appreciate it very much if we could get timely responses to those questions that have been asked so that we we will try to compile something and we appreciate the commitment made today which we will certainly follow up on craig without objection there being no further business the committee stands adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations] honoring john lewis was unveiled for the ceremony in the u. S. Capital. Speakers included postmaster general lewis to joy, kevin mccarthy