[Senate Hearing 117-]
[From the U.S. Government Publishing Office]
DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND
RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 2023
----------
WEDNESDAY, JUNE 15, 2022
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 9:32 a.m. in room SD-138, Dirksen
Senate Office Building, Hon. Patty Murray (chairwoman)
presiding.
Present: Senators Murray, Schatz, Baldwin, Blunt, Capito,
Hyde-Smith, and Braun.
DEPARTMENT OF LABOR
STATEMENT OF HON. MARTIN J. WALSH, SECRETARY
opening statement of senator patty murray
Senator Murray. Good morning. The Senate Appropriations
Subcommittee on Labor, Health and Human Services, Education,
and Related Agencies will please come to order.
Today, we are having a hearing on the Biden
administration's fiscal year 2023 budget request for the
Department of Labor.
Senator Blunt and I will each have an opening statement.
Then I will introduce our witness. And after his testimony
Senators will each have 5 minutes for a round of questions.
We are not able to have this hearing fully open to the
public yet, or for media and for in-person attendance, but live
video is available on our committee website. If you are in need
of accommodations, including closed captioning, please reach
out to the Committee, or the Office of Congressional
Accessibility Services.
Well, this is the last hearings we have scheduled for this
subcommittee to discuss the President's budget for fiscal year
2023; and of course the last hearing with Senator Blunt on the
other side of the dais.
And after all of the issues that we have worked through
together, I can't think of a more fitting tribute to that
partnership than a bill that continues that legacy of making
meaningful bipartisan investments to help families in my Home
State of Washington, in Missouri, and across the country.
So I just want to say that my hope is, after today, we will
be able to come together quickly in a bipartisan way, as we
have so many times in the past, to turn to the hard work of
writing our fiscal year 2023 appropriations bills, and getting
in a good position to pass everything before the end of the
year. Families are counting on us to get that done.
I hope we can all agree it is critical to continue
strengthening our economy, building off the progress we made
thanks to the American Rescue Plan, and last year's
appropriations bills.
Under President Biden we have added around 8.7 million
jobs. That is an all-time high. And unemployment is near all-
time lows at 3.6 percent. Meanwhile, the Pension Relief we
passed has already given a lifeline to struggling businesses,
and saved the pensions of tens of thousands of workers and
retirees who were at risk of having their financial situation
turned upside down.
Now, that progress is good, but we still have a lot of work
ahead to build a stronger, fairer economy that truly works for
workers not just those at the very top and giant corporations.
And right now inflation is a serious challenge that we need
to get our arms around, so we need to bring down everyday costs
for the basics, like groceries, and gas, and more, that so many
families are struggling with today. That is why Democrats are
working to lower the cost of prescription drugs and health
coverage, and why I believe we need to lower the child care
costs for families, and fix our broken child care system that
is on the verge of collapse.
We have to get it done through reconciliation before it is
too late, because it is plain as day, the child care crisis is
holding our economy back. It is keeping so many parents,
especially moms, out of the workforce, and making it so much
harder for businesses to find the workers that they need.
I have put forward a plan that will lower child care costs
for families across the country by thousands of a year, reach
more than a million new children and their families, raise
wages for child care workers and stabilize the sector, keeping
providers' doors open, and making more options available to
families, and ultimately to strengthen our entire economy. I am
going to keep pushing with everything I have to get that done.
Now, Secretary Walsh, I am glad you were able to hear
directly from workers in my Home State of Washington about the
challenges that they are facing when you visited a few months
ago. And I am especially glad to see that President Biden's
budget takes to heart so much of what the people in my State
had to share with you.
We have important work ahead to protect workers' rights, to
raise wages, to make sure we have decent, safe, fair working
conditions, and deliver high quality workforce development
opportunities. And the increased funding for the Labor
Department in this budget will help us get it done with many
much needed investments.
First, it would provide resources to help fix and
strengthen our unemployment insurance systems, which so many
people rely on when they hit hard times and are looking for
their next job, and which this pandemic has shown, is broken in
far too many ways. This should be a reliable lifeline for
people so they can get back on their feet. But back in my State
and in several others, our unemployment programs have been
undermined by fraud, outdated technology, and massive data
hacks.
We have to do better for families, and that starts with
providing the resources we need to actually update IT programs,
and fix the system.
This budget will also help people who are working to find
good, high-paying jobs by increasing support for registered
apprenticeships, and other high-quality workforce development
programs so they can provide quality opportunities in even more
industries and occupations. And reach more women, people of
color, formerly incarcerated individuals, people with
disabilities, and others who are too often left out, because
you shouldn't have to have a college degree to make a decent
living in this country.
Of course, the Department must do more than provide workers
new opportunities; we need to be bold in protecting their
rights as well. That is why it is so important this budget
invest in the worker protection agencies charged with ensuring
employers respect workers' rights and follow Federal laws.
Better enforcing these laws will help make sure workers are
paid the wages they have earned, not shortchanged on overtime,
or denied minimum wage, get the family and medical leave they
are eligible for, and go to work in a safe and healthy
workplace.
For too long the number of investigators in the Wage and
Hour Division has been declining. We actually just hit a 50-
year low. Too often, the division simply cannot investigate
wage theft at huge, very well resourced corporations. So I
think we need to level the playing field for workers to make
sure they are getting a fair shake. And these resources will
allow us to crack down on employers who don't pay employees the
overtime pay they are owed, pay workers less than prevailing
wages required under law and, otherwise, cheat employees out of
the pay they earned.
These investments will not just provide accountability to
businesses; they will put money directly back in workers'
pockets where it belongs.
Meanwhile, increased resources for the International Labor
Affairs Bureau will protect workers here at home from unfair
competition when foreign companies do not play by the rules,
ensuring our trading partners follow through on their
commitment to workers' rights and keep our Nation competitive
on the world stage.
And increased investments in the Office of Federal Contract
Compliance, will help ensure employers working for the
government follow the law, including protecting against
workplace discrimination and harassment. And when it comes to
enforcing labor laws, this pandemic has put a harsh spotlight
on how critical workplace health and safety laws are. We need
the occupational Safety and Health Administration to do more to
live up to its responsibility here.
workplace safety
In 2020, our country lost an average of 15 people to
workplace injuries every day. Everyday 15 loved ones never made
it home. And workplace deaths like these are disproportionately
workers of color. That is heartbreaking, we have to do better,
which is why it is critical this budget bolsters support for
OSHA's (Occupational Safety and Health Administration) mission
to keep workers safe on the job, and protected from retaliation
for calling out safety and health issues in the workplace.
permanent covid safety standard
It is also why I am continuing to push OSHA to move quickly
to finally issue a permanent COVID-19 standard for healthcare
workers, and work on a permanent infectious disease standard as
well. Healthcare workers have been on the frontline of this
pandemic. They have worked tirelessly to save the lives of
countless patients, but they have faced grave danger during
this pandemic just trying to do their jobs.
COVID-19 has killed over 5,000 nurses and healthcare
professionals. We owe it to each, and every one of our
healthcare heroes to keep them safe.
So Mr. Secretary, I expect to see the Permanent COVID
Safety Standard from the Department soon. We should have had
one already. Workers cannot keep waiting. It is clear to me,
and I think it is clear to everyone listening, that we have
more work to do to support our workers and their families. So I
am going to keep pushing to make sure families have a little
less stress on their shoulders; and a little more money in
their pockets.
That means bringing down costs across the board on things
like groceries, and gas, and healthcare, and child care, and
everyday essentials. It means ensuring workers get paid a fair
living wage, and are not cheated out of it, and go to work
confident they will be coming home safely. It means making sure
they can choose to care for themselves and their loved ones
without losing the paycheck they need, and can learn new skills
if they want to pursue a new career in a higher paying field.
And it absolutely means ensuring we protect workers'
rights, especially the right to join, or form, aunion, to
collectively bargain for better benefits, better healthcare,
better retirement plans, and higher wages.
budget priorities impacting workers
I am glad to say this budget makes clear the Biden
administration is also committed to these goals, and President
Biden understands, as well as anyone, that working families are
the heart of our country and the backbone of our economy.
Democrats are focused on the economy, Mr. Secretary. We are
focused on tackling inflation, lowering costs, and making sure
working people get a fair shake and their fair share. So I look
forward to working with you and the President to keep building
an economy that puts those working people first.
With that, I will turn it over to Senator Blunt for his
remarks.
statement of senator roy blunt
Senator Blunt. Well, Thank you, Chair Murray. And good
morning to everybody participating in the hearing; and welcome
Secretary Walsh. I look forward to your testimony on the
Department of Labor's fiscal year 2023 budget request.
Last year when you testified before the subcommittee a
principal topic, and certainly a topic I raised, was how the
COVID-19 pandemic had put an unprecedented strain on our
economy and on our workforce. At the time, I had serious
concerns that our country would not return to our pre-pandemic
unemployment levels, which had been the lowest since the late
1960s.
And while I am pleased that we are making real progress in
lowering the unemployment rate, I am concerned about the very
real economic and labor shifts that have occurred since the
last time we had a hearing, and you were before this committee.
I am talking of course about the economic impact of inflation,
an invisible tax that takes its toll on every American, but it
is particularly burdensome for those who can least afford it.
Many of the increases in paychecks have been more than
offset by increases in what you have to pay for, and it only
takes a trip to the gas station or the grocery store to know,
for most families, exactly what that means. In recent months
that inflation number has been above 8 percent, the highest
rate in over 40 years, and the Treasury Secretary recently
testified before the Senate Finance Committee that inflation
was here to stay for any foreseeable future.
This administration's inflation forecast has already showed
prices rising this year at nearly twice the pre-pandemic rate.
And while we might disagree on the root causes of this historic
inflation, that is really reversing those economic gains made
in the past, I do believe we can agree that every American is
feeling the impact.
History has told us that we can't spend our way out of
inflation. Instead we have to exercise fiscal responsibility
and be prudent about determining what is truly needed to right
the ship, and begin to head things in a different direction.
Additionally, we are seeing major labor shifts that I think
will impact the labor market for years to come, dubbed by some
the ``Great Resignation'', we have watched record numbers of
employees resign following the COVID-19 pandemic, and that was
particularly apparent and evident in the young adult
population.
Simultaneously help-wanted signs are still visible almost
everywhere across the country as businesses and employers
continue to search for workers to fill the vacancies they have.
There is no question that this is a turbulent moment in our
country's history, particularly our economic history. But often
during times like this, of economic and market uncertainty, we
have the opportunity to rethink the way we have been doing
things, and prioritize programs that provide the most benefit--
in the case of the Department of Labor--to workers and
employers alike.
This is why I was surprised to see the fiscal year 2023
budget doubling down on new programs, and funding levels
rejected just 3 months ago in the fiscal year 2022 bill.
The fiscal year 2023 proposed budget for the Department of
Labor totals $14.9 billion, an increase of almost $2 billion,
and nearly 13 percent over the appropriations bill that we just
passed. That is nearly triple the increase that was provided in
that bill. I wouldn't expect to see that if I were you. And we
want to be talking about what those priorities really are,
funding such as $100 million for the POWER Plus initiative
which will transition workers away from jobs in the fossil fuel
industry, to what would be considered generally green jobs, is
not included in the fiscal year 2022 final bill, and here it is
that $100 million is right back in this budget request.
Similarly, a Career Pathways for Youth Grants, a program
that I began as Chairman in 2020, to ensure that young adults
in this country have adequate knowledge, before they get there,
of all the post-secondary options that they need to know about,
to be informed about what their pathway really is.
I agree with the Chairman's view that there are a lot of
ways to get to a successful career, and a successful life that
allows you to do the things that are best suited for the kind
of life you want to lead, and we need to be sure that we are
not just looking at one pathway. I think so much of education,
secondary education has been focused on only one way forward
for a long time, and that is why we try to fund, I think the
funding was about $15 million, to look at career pathways early
in the education process so that people in junior high school,
middle school, and high school begin to get a sense of what
kinds of jobs that are out there.
I was surprised you didn't ask for the continuation of that
program. Why is the funding for workers to transition out of
their current stable career for jobs and industries that the
administration prefers being prioritized, and looking at how
the future labor force gets ready for the work that they would
want to do, isn't?
We need to ensure that our labor programs are nimble, and
quite adequately and appropriately address unexpected workforce
challenges. For example, while I supported funding for
registered apprenticeships, the registered apprenticeship model
is underutilized by industries that need it the most, such as
healthcare, and IT, and cybersecurity, because it has just not
been a very flexible model.
And I hope we can work with you to find more flexibility in
that whole concept of apprenticeships. I have said it before,
and I will say it again, we need to create an environment for
Americans to thrive, and we need to target our Federal
resources to cultivating the workforce of the future.
It is wrong for the Federal Government to dictate what that
workforce should look like, and for bureaucrats in Washington
to determine the speed in which we get there, that should be
left up to States, and communities, and local economies. I
believe we can work together to find consensus on the
Department's budget.
I look forward to working with you, Mr. Secretary, as well
as Chair Murray, and our colleagues on the subcommittee, to
once again, come up with a bill that prioritizes bipartisan
initiatives, and innovation in the workforce system.
As the Chair mentioned, this is my last likely hearing on
the Labor Appropriations part of this budget, but we have had
good success working together, finding ways to find a path
forward. I certainly hope we can do that.
I want to thank all my colleagues for their support over
the time I have been on this committee, and particularly Chair
Murray for the great working relationship we have had.
Again, thank you for your time here today, Secretary Walsh.
I look forward to working with you to strengthen our Nation's
workforce, and create a more prosperous economy for all
Americans.
Thank you, Chairman.
Prepared Statement of Senator Roy Blunt
Thank you, Chair Murray. Good morning and welcome, Secretary Walsh.
I look forward to your testimony on the Department of Labor's fiscal
year 2023 budget request.
Last year, when you testified before this Subcommittee, I spoke a
great deal about how the COVID-19 pandemic put an unprecedented strain
on our economy and its workforce.
At the time, I had serious concerns that our nation wouldn't return
to our pre-pandemic unemployment levels, which were the lowest since
the late 1960s. While I am pleased that we are making progress in
lowering the unemployment rate, I am concerned about the very real
economic and labor shifts that have occurred since the last time you
came before this Subcommittee.
I'm talking about inflation, of course, which is an invisible tax
that takes its toll on every American, but is particularly burdensome
to those who truly can't afford it.
In recent months, consumer inflation in the United States has
trended above 8 percent, the highest rate in over 40 years, and the
Treasury Secretary recently testified before the Senate Finance
Committee that inflation was here to stay.
This Administration's inflation forecast has already showed prices
rising this year at nearly twice the pre-pandemic rate.
While we may disagree on the root causes of this historic inflation
that's reversing the economic gains made under the previous
Administration, I do think we can agree that every American is feeling
the impact.
And history has told us that we cannot spend our way out of
inflation; instead, we must exercise fiscal responsibility and be
prudent about determining what is truly needed to right the ship.
Additionally, we are seeing major labor shifts that I think will
impact the labor market for years to come. Dubbed the ``Great
Resignation,'' we've watched record numbers of employees resign
following the COVID-19 pandemic, particularly amongst the young adult
population.
Simultaneously, ``help wanted'' signs are still visible across the
country, as businesses and employers continue to search for workers to
fill the vacancies.
There's no question that this is a turbulent moment in our Nation's
history--but often during economic and market uncertainty, we have an
opportunity to rethink the status quo and prioritize programs that
provide the most benefit to workers and employers alike.
This is why I was surprised to see the fiscal year 2023 budget
doubling down on new activities and funding levels that were rejected
just 3 months ago in the fiscal year 2022 bill.
The fiscal year 2023 budget for the Department of Labor totals
$14.9 billion, an increase of $1.7 billion and nearly 13 percent over
fiscal year 2022, which is nearly triple the increase that was provided
in fiscal year 2022.
Funding, such as $100 million for the POWER+ Initiative, which will
transition workers away from jobs in the fossil fuel industry to what
some consider ``green jobs'' was not included in our fiscal year 2022
final bill, and yet it appears again in your budget request.
Simultaneously, ``Career Pathways for Youth'' grants, a program
that I began as Chairman in fiscal year 2020 to ensure the young adults
in this country have adequate knowledge of all post-secondary options
to make an informed decision about their career trajectory, was
excluded from the budget request.
Which begs the question: why is funding for workers to transition
out of their current, stable careers for jobs in industries this
Administration prefers prioritized over funding for informing the
future of our workforce about all of their options?
We need to ensure that our labor programs are nimble and can
adequately and appropriately address unexpected workforce challenges.
For example, while I supported funding for registered
apprenticeships, the registered apprenticeship model is underutilized
by industries that need it the most, such as healthcare, IT, and
cybersecurity, due to its lack of flexibility.
I've said it before and I'll say it again: we need to create an
environment for Americans to thrive, and we need to target our Federal
resources to cultivating the workforce of the future.
It's wrong for the Federal Government to dictate what that
workforce should look like, and for bureaucrats in Washington, DC to
determine the speed at which we get there. That should be left up to
states, to communities, and to local economies.
I believe we can work toward consensus on the Department's budget.
I'm looking forward to working with you, Mr. Secretary, as well as
Chair Murray our colleagues on the Subcommittee to once again put forth
a bill that prioritizes bipartisan initiatives and innovation in the
workforce system for fiscal year 2023.
Finally, I'd like to thank all of my colleagues for their support
over the years on this Committee, especially Chair Murray.
This is likely my last Labor/HHS hearing, and I'd like to take the
opportunity to say that it has been a tremendous honor to serve with
you on this Subcommittee on behalf of the great State of Missouri.
Again, thank you for your time here today, Mr. Secretary. I look
forward to working with you to strengthen our nation's workforce and
create a more prosperous economy for all Americans.
Thank you.
Senator Murray. Thank you, Senator Blunt.
With that, our witness today is Marty Walsh, Secretary of
the Department of Labor. Secretary Walsh, thank you for joining
us today. I look forward to your testimony. You may begin.
SUMMARY STATEMENT OF HON. MARTIN J. WALSH
Secretary Walsh. Thank you very much, Chairwoman Murray;
and Ranking Member Blunt, thank you as well; members of the
committee that are here today, and that will be coming in and
out, I want to thank you for the opportunity to testify in
front of you today.
STRENGTHENING THE AMERICAN WORKFORCE
I am certainly pleased to outline the Biden-Harris
administration's priority for the Department of Labor's fiscal
year 2023 budget. My mission as Secretary, quite honestly, of
Labor, is to empower all workers morning, noon, and night.
Frontline workers who carried us through the worst days of the
pandemic, the marginalized workers who face barriers to
employment opportunities, the veterans who serve our Nation,
the rural workers who we serve through targeted workforce
grants. The Department of Labor, quite honestly, stands with
all workers in every community to build stronger, more
resilient, and a more inclusive economy.
I am certainly proud of all that the Department has
accomplished in the past year, and the folks that work with me
every single day. We implemented key provisions of the
President's American Rescue Plan, supporting healthcare, and
pensions, and unemployment insurance. We protected workers from
COVID-19 and heat exposure. We strengthened retirement
security, and access to mental health services. We expanded
career-training programs to connect more Americans to
opportunities that they, quite honestly, need.
Ranking Member Blunt talked a little bit about, you know,
people resigning, putting those people back into better paying
jobs, connecting more industry as well to skilled workers. We
implemented the President's $15 an hour minimum wage for
Federal contracts, legislation to stop surprise billing,
medical billing, protections for Tip workers, we advanced
government-wide initiatives to support workers organizing
rights, climate action, and infrastructure implementation.
In all of our work, we are committed to equity for the most
vulnerable workers in communities all across America. And we
have in this moment a unique opportunity to help all workers
thrive. The President's plan has produced historic job recovery
and Congress has made major investments in workers through the
Bipartisan Infrastructure Law.
GOOD JOBS INITIATIVE
In the Department of Labor the Good Jobs Initiative we are
partnering across government to make sure these investments
create good jobs and access to all. And I am committed to
supporting the congressional efforts to invest in the workforce
training, child care support, education, healthcare, and work
things that, quite honestly, families depend upon.
WORKFORCE DEVELOPMENT INITIATIVES
The fiscal 2023 budget submission builds on these
investments and renews our pledge to serve workers, job
seekers, and retirees all across America. Workforce development
is a vitally important area of opportunity, high quality job
training lifts workers into the middle class, and increases
equity in our economy, and these programs meet the talent needs
of employers, and strengthens our supply chain. That is why the
President's budget requests $303 million, we are looking to
expand registered apprenticeships.
I agree with you Senator Blunt, about creating
opportunities into other industries, and we have been working
on that, and that is really, what we need to do in America
more. We have $100 million for career training and growing
industry sectors, $100 million for community college
partnerships with employers.
I have visited community colleges in dozens of States
across this country. I visited dozens of Job Corps centers
around this country. And I see innovative programs designed in
collaboration with employers working for students of all
backgrounds. We need to invest in these partnerships and reach
out to more employers, and we need to provide more workers with
better opportunities for their future.
This budget also increased funding for veterans through our
Veterans Employment and Training Service Agency. It increases
funding for our Women's Bureau to expand access for women's
careers where they are under representative--represented,
excuse me.
INVESTING IN WORKER PROTECTION
This budget invests $2.2 billion in the Department's worker
protection agencies. This work is more essential now than ever
to rebuild our staffing levels, as you said Madam Chair, in
your very first line. That includes OSHA's efforts to double
the number of inspectors by the end of the President's first
term. It will restore MSHA's (Mine Safety and Health
Administration) capacity for enforcement in mine plant
equipment reviews. It would restore staffing for unemployment
benefit, and security administration to protect workers'
health, retirements, and disabilities.
It would increase funding for Wage and Hour to safeguard
our wages for the most vulnerable workers. It would fund the
Office of Federal Contract Compliance to ensure Federal
contracting advances America's promise of fairness for all
workers.
This budget increases funding to the Office of Labor
Solicitor to rebuild the entire Department's capacity to
enforce the laws that are on the books; we also have requested
the resources for the Bureau Of International Labor Affairs,
ILAB, to ensure our training partners uphold their labor
commitments so America's workers can compete on a level playing
field.
UNEMPLOYMENT INSURANCE REFORM
The budget fully funds and updates the State funding
formula for unemployment insurance that will be the first
comprehensive update in decades. It allows States to serve
claimants more effectively. And our request includes $150
million to strengthen the integrity of the system.
Finally, the budget requests nearly $4 million to support
the Good Jobs Initiative. This will enable us to advance the
President's priorities of good jobs, and free and fair choice
to join a union.
CONFRONTING INFLATIONARY PRESSURES
And I just want to touch briefly, before I end my remarks,
on inflation. Certainly, the President has talked to all the
Cabinet. It is an all-of-government approach to bring down
those pressures at the kitchen table, to bring down those
pressures at the gas pump, to bring down those pressures at the
grocery store.
The President, his administration did not cause inflation,
but we certainly are not running away from inflation because it
impacts every single American person, and we need to do
everything in our power to bring those pressures down. This is
a worldwide challenge that is happening in other countries
around the globe, but we need to focus on what we are doing
here in America. So I look forward to talking about that a
little later.
I see all of what we do everywhere I travel, workers are
showing up each and every day to move our communities and our
Nation forward, and in return we must do everything we can to
ensure the well-being and empower them with opportunity.
I want to thank you, both, and all the committee members
once again for the opportunity to testify today. I look forward
to discussing our budget requests here with the committee and
certainly any time that anyone needs to reach out to the
Department of Labor, do feel free to call me. Thank you.
[The statement follows:]
Prepared Statement of Martin J. Walsh
Chair Murray, Ranking Member Blunt, and members of the
Subcommittee, thank you for the invitation to testify today. I am
pleased to appear before this Subcommittee and to outline the Biden
Administration's vision and priorities for the Department of Labor in
fiscal year (FY) 2023. I am honored and humbled to lead the Department
in its critical work.
My vision as the Secretary of Labor is to empower workers morning,
noon, and night. This includes centering our work on the most
vulnerable workers, those facing barriers to employment, misclassified
workers, and workers in temporary jobs or other jobs that heighten
their economic insecurity and vulnerability. The Department honors the
nurses, doctors, first responders, farm workers, construction workers,
communication workers, warehouse workers, grocery store workers,
servers, teachers, childcare providers, and government workers who have
carried us this far through the COVID-19 pandemic. The Department also
acknowledges that many of the workers and families on the frontlines of
the COVID-19 pandemic are among the lowest paid, and most marginalized.
As Labor Secretary, I am focused on advancing equity, creating good
jobs, and empowering workers to organize and successfully bargain with
their employers. The Department stands shoulder to shoulder with all
workers to build a better and brighter future.
dol accomplishments
When I testified before this Committee last year, I was new to the
Department of Labor. A little more than year later--I am proud of
everything the Department has accomplished. We have issued standards
and guidance and pursued strong enforcement strategies to keep workers
in healthcare and other key industries safe and fight the spread of
COVID-19. We extended and expanded unemployment relief for workers
during the pandemic.
During this past year, the Department has worked tirelessly to
address acute and long-term supply chain issues, and issues affecting
retirement, wages, tipped workers, workers' rights, and collective
bargaining. In collaboration with the Department of Transportation, the
Department recently announced a Trucking Action Plan to expand
Registered Apprenticeship and to improve job quality in the industry
overall through the ``Driving Good Jobs'' Initiative. The American
Rescue Plan (ARP) authorized special financial assistance (SFA) through
the Pension Benefit Guaranty Corporation (PBGC) to help save severely
underfunded multiemployer plans and enabled over three million
participants and beneficiaries to continue to receive their pension
benefits now and in the future. PBGC estimates that ARP will provide an
estimated $94 billion in assistance to eligible plans that apply for
SFA.
The Department continued to strengthen enforcement by using every
tool available in order to keep workers in America safe and healthy on
the job and ensure that they receive the wages that they have earned.
The Department's Wage and Hour Division (WHD) has recovered over $230
million in back wages for more than 190,000 workers, averaging $1,200
in back wages per employee. The Department also issued final rules to
restore protections for tipped workers, including protections that
Chair Murray and Chair DeLauro were integral to enacting in 2018.
The Employee Benefits Security Administration (EBSA) worked with
the Departments of Health and Human Services and Treasury to implement
the provisions of the No Surprises Act, preventing patients in need of
care from being saddled with large, unexpected out-of-network medical
bills. In 2021, EBSA recovered over $2.5 billion in retirement savings
and healthcare benefits owed to workers. This is real money--money
people earned and were owed--and the Department's staff returned it
into people's pockets and retirement accounts.
Additionally, despite unions' long history of fighting for higher
wages and lifting up workers' voices, only 10.3 percent of the U.S.
workforce is unionized, even as a full 52 percent of non-union workers
say they want to join a union. The Biden-Harris Administration took
action and established the White House Task Force on Worker Organizing
and Empowerment. This first-of- its-kind government-wide effort is
promoting policies, programs, and practices to help more workers
organize and successfully bargain with their employers, and to lift up
as models cooperative labor-management relations where unions and
employers jointly solve problems advancing both workers and employers'
interests, though we continue to urge Congress to pass the Protecting
the Right to Organize (PRO) Act. The Department also continues to
support efforts to raise the minimum wage for workers in America. One
significant step and progress is implementing President Biden's
Executive Order raising the minimum wage to $15 an hour for 300,000
workers on Federal contracts.
We will continue to take steps to unleash the full power of the
Department to continue addressing wage theft, keeping workers safe and
healthy, and expanding access to good jobs for all.
commitment to equity
Shortly after being sworn in, President Biden issued several
groundbreaking executive orders to dismantle entrenched disparities in
our laws and public policies: E.O. 13985 calls for the Federal
Government to advance racial equity and support underserved communities
through immediate and sustained action and E.O. 14035 charges Federal
agencies with cultivating a workforce that draws from the full
diversity of the Nation. The Department has been hard at work
delivering on both of these mandates. The Department continues to
strive to be a model workplace and make the Federal government a model
employer. Indeed, our Chief Evaluation Office is leading efforts to
evaluate how we can improve diversity, equity, inclusion, and
accessibility across the Federal workforce. In addition, we are focused
on understanding how well our programs, protections, and contracting
opportunities reach different communities and what barriers to access
they face, as well as what data we have or need to understand how the
Department is serving different communities. We have taken a number of
important steps across our rulemaking, grantmaking, and enforcement
programs to better reach the most underserved and disadvantaged
populations.
Both with the funding already appropriated to us, and as outlined
in our fiscal year 2023 budget request, these questions guide our
efforts. For example, we recently announced the availability of $260
million in American Rescue Plan funding available to states to promote
equitable access to unemployment compensation programs. The fiscal year
2023 Budget also includes $15.4 million in the Office of Disability
Employment Policy to plan and implement Equitable Transition Model
projects to develop the strategies we need to ensure youth with
disabilities can get good jobs. These resources will help the
Department tackle the inequities facing youth with disabilities,
including youth who are experiencing homelessness, leaving foster care,
or involved in the justice system.
We have accomplished a lot over the past year, but we have a lot
more we need to do. We see that even as the economy recovers from the
pandemic, most of the job gains have gone to men. In the May jobs
report, there are still 812,000 (1.1 percent) fewer employed adult
women than there were pre-pandemic, whereas the number of employed
adult men, at 81.4 million, has returned to the pre-pandemic level.
Black women's unemployment rate (5.9 percent) is the highest among
women by race and ethnicity. The intersection of racism and sexism
means that Black women are experiencing a different, and more
difficult, recovery not just because of the types of jobs they are
likely to hold, but also because they are often treated differently
within those jobs.
We must embed equity into how we recruit, hire, and retain all
workers, including leave and scheduling policies that support families.
An economy that works only for some in our country means that economy
is fundamentally broken. I welcome all of you to join me in these
efforts.
investment in workers is long overdue
Over the past year, Congress has made historic investments in
workers--in the Unemployment Insurance (UI) system, in resources to
better protect workers, and in the bipartisan infrastructure
investments. The UI system, in particular the emergency unemployment
compensation programs extended by the American Rescue Plan, provided
life-saving benefits to American families throughout the COVID-19
pandemic. During the pandemic, UI benefits helped over 53 million
workers who lost their jobs through no fault of their own and put some
$870 billion back into the economy. These benefits helped Americans
across the country stay in their homes and support their families and
protected the economy from even more devastating consequences. Studies
have shown that every $1 paid in UI benefits translates into $2 to
boost the economy.
However, the pandemic also highlighted that more can be done to
ensure that workers have timely and equitable access to UI benefits and
that fraudsters, particularly sophisticated international criminal
rings, do not flood the UI system with false claims to wrongly acquire
taxpayer funds while creating further delays and barriers for genuine
claimants in need. With the $2 billion provided in the American Rescue
Plan, the Department is making progress to modernize the UI system to
be more timely, equitable, and safe. The Department has already
provided significant funding to states to strengthen their UI identity
verification systems, enhance their fraud detection and prevention
strategies, and increase cybersecurity. We have made additional funds
available to help workers learn about, apply for, and better navigate
the UI system and to provide states with a comprehensive, multi-
disciplinary assessment of their UI systems and the resources to
implement improvements identified in the assessment.
The American Rescue Plan also provided $200 million for the
Department's worker protection activities. The Department continues to
provide outreach to essential COVID-19 frontline workers most
vulnerable to violations of worker protection laws as well as
compliance assistance to employers delivering essential services.
Through your coordination and cooperation, Congress delivered a $1
trillion Bipartisan Infrastructure Law (BIL) to build a better America.
This represents an investment in well-paid, union and middle-class jobs
for every single community in America. Our goal is to ensure these
Federal resources are leveraged to create economic opportunities for
workers in the communities in which they live. In support of this goal,
in March of this year, the Department published a proposed rule to
update and modernize the regulations implementing the Davis-Bacon and
Related Acts, proposing changes that will be good for workers and good
for building high-quality infrastructure and for a strong construction
industry.
The Administration is committed to working with Congress to enact
the President's plan to lower healthcare, child care, energy, and other
costs for families; reduce the deficit; and expand our economy's
productive capacity. If enacted, the Department will use these
resources to get our programs where they need to be to operate
effectively and efficiently while transforming them to address what we
value including worker empowerment, equity, program access, and the
other areas of emphasis set out by this Administration. I am committed
to doing what I can to help Congress get this important legislation
passed.
We appreciate Congress enacting additional funding in fiscal year
2022 for investments in job training, apprenticeship programs, and
protecting workers through the Department's worker protection agencies.
Through the Good Jobs Initiative, we are coordinating the Department's
on-going efforts to advance job quality for all workers, including
people of color, LGBTQ+ individuals, women, immigrants, veterans,
people with disabilities, justice-involved individuals, and individuals
in rural communities. Additionally, we are partnering across Federal
agencies to enhance implementation of job quality and equity standards
into Federal investments. This funding, together with the already-
appropriated resources through the American Rescue Plan, lays the
groundwork for ensuring that all workers can participate and thrive in
a growing economy.
fiscal year 2023 budget request
The fiscal year 2023 President's Budget builds on these investments
and renews DOL's pledge to help all workers and job seekers in
America--particularly those from disadvantaged communities--access
training and find pathways to high-quality jobs that can support a
middle- class life.
The Budget requests $303 million to expand Registered
Apprenticeship (RA) opportunities while increasing access for
historically underrepresented groups, including people of color and
women, and diversifying the industry sectors involved. RA is a proven
earn-and-learn model that raises participants' wages and is a reliable
pathway to the middle class. This investment would provide critical
funding to support capacity-building, including expanding and
diversifying RA programs as well as expanding pre-apprenticeship
programs to increase access to RA. Community colleges play a critical
role in providing accessible, low-cost, and high-quality training. The
Budget invests $100 million to build their capacity to work with the
public workforce development system and employers to design and deliver
high-quality training for in-demand jobs. The Budget also includes $100
million for a new Sectoral Employment through Career Training for
Occupational Readiness (SECTOR) program, which will support evidence-
based training programs focused on growing industries, enabling
underserved and underrepresented workers to access good jobs and
creating the skilled workforce the economy needs to thrive.
The Budget advances the goal of developing pathways for diverse
workers, including those from disadvantaged groups, to access training
and career opportunities through increased investments in programs that
serve justice-involved individuals, at-risk youth, and American Indian,
Alaska Native, and Native Hawaiian individuals. No economic recovery
can be complete if some communities are left behind, and this Budget
reflects the Department's commitment to helping all workers get back on
their feet.
The pandemic has been particularly damaging for women workers,
specifically women of color and low-wage workers, many of whom have
faced the loss of childcare while trying to protect the safety of
themselves and their families and still put food on the table. The
fiscal year 2023 Budget requests more than $25 million for the Women's
Bureau, including additional funding to strengthen the Women in
Apprenticeship and Nontraditional Occupations program and expand the
Fostering Access, Rights, and Equity program. This grant program is
designed to support targeted education and outreach efforts by
``trusted messengers'' and community intermediaries to ensure that
marginalized workers--disproportionately women of color--avail
themselves of critical and timely income supports and employment rights
and benefits.
Our nation's veterans, transitioning service members, and their
spouses deserve every opportunity to successfully transition from
active duty to civilian life, receive access to benefits and
protections, and find good jobs with family-sustaining wages. The
Budget provides funding for the Veterans' Employment and Training
Service's core programs, which help improve skills and provide
employment opportunities for veterans across the country. The Budget
increases funding for VETS' Homeless Veterans' Reintegration Program to
more than $62 million, enabling the program to serve over 1,000
additional veterans experiencing homelessness.
Throughout the pandemic, workers have shown up for America, helping
to keep the economy growing, hospitals operating, food in stores, and
construction projects booming. In appreciation of the incredible
dedication of workers in America, DOL must ensure workers are treated
with dignity and respect in the workplace. The fiscal year 2023 Budget
invests $2.2 billion in the Department's worker protection agencies.
Staff losses at the Occupational Safety and Health Administration
(OSHA) and the Mine Safety and Health Administration (MSHA) have left
workers less safe on the job, particularly amid the increased threats
to workplace health and safety created by the pandemic. The fiscal year
2023 Budget provides resources to help OSHA rebuild its rulemaking and
enforcement capacity, expand its whistleblower protection program, and
increase its outreach and compliance assistance. This investment will
support OSHA's efforts to double the number of inspectors by the end of
President Biden's first term. The request also includes resources to
restore MSHA's capabilities in enforcement to help ensure miners'
health and safety amid a projected increase in workload stemming from
the BIL.
Losses to front-line enforcement, regulatory, and compliance
assistance staff at the Employee Benefits Security Administration have
similarly compromised the Agency's ability to ensure the solvency of
self-funded health plans, the security of retirement benefits, the
integrity of plan assets, the payment of promised benefits, the
cybersecurity of plan accounts, and the integrity of health and
disability plans. The requested fiscal year 2023 Budget would restore
lost staff and enable the agency to protect workers' interest in their
health, retirement, and disability benefits. The return on the
taxpayer's investment is significant, as reflected in the $2.5 billion
it recovered last year. The additional funds requested would contribute
greatly to the benefit of the more than 158 million workers, retirees,
and their families who depend on ERISA-covered plans for their medical
benefits and for the security of their retirement in old age.
Currently, WHD enforcement staffing is near historic lows,
impacting the ability of the agency to enforce fundamental labor
protections including minimum wage, overtime, and family and medical
leave for 148 million workers across the country. In particular,
retaliation against workers for coming forward with a complaint about
their pay or the misclassification of employees as independent
contractors robs workers of their rightful wages, benefits, and
protections. The fiscal year 2023 Budget increases funding to the WHD
by more than $56 million over the fiscal year 2022 enacted level. This
funding increase will enable WHD to hire, train, and equip enforcement
staff to better protect essential workers by safeguarding their pay and
recovering back wages, with particular emphasis on the workers most
vulnerable to wage violations and exploitive labor conditions.
The Budget requests to increase funding for the Office of Federal
Contract Compliance Programs (OFCCP) by nearly $39 million above the
fiscal year 2022 enacted level, enabling it to fully enforce employment
antidiscrimination requirements to ensure Federal contracting
consistent with America's promise to all workers in America. Included
in this increase is $3.2 million to enable OFCCP to meet the increased
need for its services as a result of the BIL. This funding will allow
OFCCP to build its capacity to remove systemic barriers that workers in
underrepresented communities face to accessing good jobs in
construction and other growth industries that the BIL will bolster.
Critical to all these investments in protecting workers' pay,
benefits, safety and health, and rights is rebuilding the Department's
capacity to actually enforce the law. This can only be accomplished if
the Office of the Solicitor is fully funded. SOL, the legal enforcement
and support arm of the Department, has been kept approximately level-
funded since fiscal year 2013 despite increasing operational costs and
rising demand for legal support in litigation, investigative
assistance, advice, and regulatory work. As a result, SOL has lost over
100 staff since 2013, resulting in a severe diminution in enforcement
actions. The Budget recognizes that without adequate resources for SOL,
DOL will not be able to achieve its mission in any area. To avoid this,
the Budget increases funding to SOL by $52 million above the fiscal
year 2022 enacted level to support a total of 740 FTE.
The Budget also includes resources for the Department's Bureau of
International Labor Affairs (ILAB) which safeguards dignity at work,
both at home and abroad. ILAB ensures that our trading partners uphold
their labor commitments so that America's workers can compete on a
level playing field. Just this year, ILAB has been integral in
supporting the first independent union elections at the General Motors
plant in Silao, Mexico and the Tridonex auto parts facility in
Matamoros, Mexico. We are proud to support these efforts to ensure that
all workers can exercise their right to freedom of association and
collective bargaining. Supporting workplace democracy across the world
improves working conditions abroad, combats forced labor and child
labor, improves livelihoods for vulnerable workers, and creates a
fairer global economy for America's workers.
President Biden has made the creation of good jobs with the free
and fair choice to join a union a cornerstone of this Administration.
Fulfilling this promise requires a comprehensive rethinking of
everything in the Department's capacity to improve job quality
throughout the country. The Budget requests nearly $4 million to
support the Good Jobs Initiative, enabling the Department to provide
additional training and technical assistance to agencies as they work
to embed and promote good jobs principles in procurement, loans, and
grants; engage employers on strategies and initiatives to improve job
quality; and provide a centralized location of information and services
on workers' rights under key workplace laws and on unions and
collective bargaining for use by workers, unions, employers,
researchers, other government agencies, and policymakers.
While UI provided a lifeline for millions of families throughout
the pandemic, the pandemic has also shined a light on the inadequacies
in the UI system after decades of underinvestment. Overburdened and
outdated state UI systems kept millions of workers from getting
benefits quickly and left many unable to access the program. These
painful delays and barriers fell disproportionately hard on workers of
color and low-income workers. To address these shortcomings, the Budget
makes investments to ensure states can better handle higher volumes of
claims and be better prepared for future crises. The Budget fully funds
and updates the formula for determining the amount states receive to
administer UI, which will allow states to serve claimants more quickly
and effectively. In addition, the Budget includes a $150 million
investment to promote integrity in the UI system. This investment will
provide funding to states for identity verification services while also
supporting IT infrastructure updates to prevent fraud and improve the
claimant experience.
While these critical investments will make meaningful improvements
to the UI system and help ensure families across the country can access
this vital assistance when workers need it most, we must also keep in
mind that no amount of financial investment will be able to, on its
own, fix all of the issues in the UI system. That is why the Budget
puts forward principles for UI reform. As the pandemic has made clear,
regular UI benefits in most states are far too low, leaving families
without the resources they need to make ends meet in times of economic
crisis. Additionally, millions of workers who lost income due to the
pandemic and recession were ineligible for UI benefits. And despite its
important relief and stimulative effects, UI's reach across jobless
workers remains uneven, with Black and Hispanic workers facing lower
success rates for receiving benefits than white workers. The
Administration and I are eager to work with Congress on broad changes
to modernize the program as well as advance racial, geographic, and
gender equity in the UI system.
conclusion
As Labor Secretary, I've made it my priority to travel across the
Nation. It's a personal mission of mine to amplify the voices of
working people and share their stories on what they need, successes
they have had, and how the Biden-Harris administration can support
them. I was able to see how lead pipes impact communities like Harambee
in Wisconsin, where the health of the children and everyone else
depends on the success of a stalled lead pipe replacement project. I
visited a public library in Dallas, Texas, that provides broadband
Internet for residents to help more people get access to online
resources. And across the country I have seen first-hand how union-led
job sites can boost local economies by hiring locally.
Despite all that we have been through, workers across the Nation
are still showing up each and every day to help meet this moment. All
of us have an opportunity to create an economy where everyone is
respected, protected, and can thrive. The Department and the Biden-
Harris Administration recommits its efforts to build an economy and a
labor market that is more just and equitable and create opportunity for
all.
Thank you for the opportunity to testify. I look forward to
discussing our budget request with the committee, and I am happy to
respond to any questions you may have.
Senator Murray. Thank you very much, Mr. Secretary.
Let me begin with something I referenced in my opening
remarks, and that is that workers deserve to be safe at work. I
am concerned because right now we still do not have a COVID-19
workplace safety standard, and to me that is just really
unacceptable, especially because last year, in a report by the
Government Accountability Office on the Federal response to the
pandemic, GAO (Government Accountability Office) made clear
that OSHA inspectors were facing challenges with COVID-19 cases
without a specific standard.
DEPARTMENT OF LABOR RULEMAKING TIMELINES
I have two questions for you. And let me start with the
first. When will OSHA finalize a permanent COVID-19 standard
for healthcare workers? And can you just give me a clear
timeline here?
Secretary Walsh. I believe it will be done in the next 3 to
6 months. We are going through the process now, I do believe we
are taking public comments, and we are moving through that
final healthcare standard.
Senator Murray. Three to 6 months from now?
Secretary Walsh. Yes. Because it is a rule-making process,
as you know the rule-making process, and I mean, I would love
to speed it up, but unfortunately we have this, it is a process
that is in place that we have to work on now.
Senator Murray. Well, when will OSHA take the next steps on
a Permanent Infectious Disease Standard, a process that was
actually initiated more than a decade ago?
Secretary Walsh. We are working on that as well right now.
And I think that is in the same timeline. So OSHA made some
priorities, and obviously we worked really hard on the rule-
making process that was struck down by the Supreme Court on
Vax-or-Test situation. And then at the same time that set us
back a little bit in the infectious disease, and we got back on
track with this infectious disease now we will focus on that.
And in my budget we are looking for a little more money on
some of the rule-making processes, because we have lots of
issues that we cannot get to because we can't unless we have
the resources.
Senator Murray. Okay. Mr. Secretary, funding in this
budget, together with investments through the American Rescue
Plan and the Infrastructure Investment and Jobs Act, can really
help us have an equitable recovery from the pandemic. But
unfortunately, jobs that pay low wages and lack benefits have
been, and actually continue to be, disproportionately filled by
women, people of color, people living in poverty, people with
disabilities, and the painful reality is our workforce
development systems have long struggled to address these
inequities, and too often leave out those same workers. And
when we leave some people behind it actually holds us all back.
ENSURING AN EQUITABLE ECONOMIC RECOVERY
So tell me what specific steps you are taking to ensure our
workforce development programs, including the registered
apprenticeship program, are supporting all of our workers,
including women, and people of color so we can build a stronger
economy?
Secretary Walsh. Yes. Well, thank you for that. Let me just
first say that one of the things, when we think about the
infrastructure investments and the Bipartisan Infrastructure
Law, we are thinking about making sure that it is an equitable
investment across the board. When I look at the unemployment
numbers in America, 3.6 percent unemployment rate right now in
America, in the White community 3.4 percent, in the Black
community it is 6.2 percent, historically the Black
unemployment number has always been historically double that of
White--the White number all across the country.
So when we think about making these investments when we
think about these investments, and we don't have--the
Department of Labor isn't responsible for making a lot of
investments in the Infrastructure Bill, because most of that is
in transportation, and in commerce, and in energy. But what we
have done is we have created the--we haven't created--the Good
Jobs Initiative is an umbrella of making sure that as we make
these investments we are making these investments to
communities who are not leaving people behind. Who are not
leaving opportunities for women, who are not leaving
opportunities for people of color, who are not leaving
opportunities for Native American, Alaskan Indian, all of the
different communities in our community quite honestly, that
have been underrepresented for so long.
So that is one of the--that is one of the ways that we are
looking to the Good Jobs Initiative to make sure that this is
an equitable investment in people's future.
EXPANDING APPRENTICESHIP PROGRAMS
We also, quite honestly, in the workforce development
programs and grants, we are looking at expanding
apprenticeships, and registered apprenticeship programs, we are
doing more pre-apprenticeship programs to really create a
pathway into different industries.
When you take the issue of nursing, we are headed towards a
crisis in nursing in America in the next 5 to 10 years if we
don't address it today. We have 60,000 people, young people, on
waiting lists to get into nursing programs in the country, and
we have a shortage coming. So when you look at that, we have
certainly an ability to create a talent pool to go into
nursing, what we want to do is make sure we are making the
right investments, to make sure to see what the shortfalls are
in those different industries.
We did it with the trucking--the trucking challenge, we had
an issue at the ports with a lack of truck drivers. We sat down
at the White House, myself, Secretary Buttigieg, we created a
program, apprenticeship program, where any company in America
could sign up with the Department of Labor for an
apprenticeship and within 48 hours, we would turn that around
and get that program running.
We had over 100 companies right now in America that are
currently having apprenticeships in trucking in America. We are
working on building the future. We are looking at the numbers
and the ages of truck drivers in America. Do they need to be 21
to 25--it is okay.
[Interruption].
Senator Murray. Hold on. Just a minute, we apparently have
a----
Mr. Secretary, I believe the outside feed has stopped. We
will continue with our hearing.
You were talking about specific worker training skills, and
I will just take a few seconds and just ask, worker training is
critically important, but I am also concerned about those
support services that allow somebody to go to work.
Secretary Walsh. Yes.
CHILD CARE INDUSTRY CHALLENGES
Senator Murray. I am talking about child care,
transportation, those kinds of barriers. Can you just address
that really quickly how the Department plans----
Secretary Walsh. Yes, real quick. I mean, I think in the
child care space, and in the--that is one of the biggest
challenges we have as a country. And when you think about,
yesterday I testified in front of Ed and Labor, and child care
was a big--great part of the conversation.
And quite honestly, you know, I think as a country we have
to look and see, and realign what we do with child care. The
pandemic has been devastating to child care industries in the
very beginning days of the pandemic, March of 2020. We saw many
child care facilities have to shut down because the kids
weren't going there and there was no revenue coming in.
A lot of those agencies didn't recover. They had workers,
particularly women of color, working in those areas that were
making minimum wage, and very low wages, those workers left
there and found other options for employment because they had
to. And now as we think about the child care industry,
rebuilding it, we have to really be really intentional about
it.
And I feel that when we talk about child care and, you
know, it has to be an all-of-government approach, meaning the
Federal, the State, the local, but also the private sector. We
really have to think about--outside the box when it comes to
child care. And also universal pre-kindergarten is an
opportunity for us as well to think about any additional child
care.
So as we think about this, our office, the Women's Bureau
is working very intently on this, and also through the Good
Jobs Initiative we are looking at different ways of supporting
communities across America.
Senator Murray. Okay. Thank you very much. Senator Blunt.
Senator Blunt. Thank you, Chair.
CAREER PATHWAYS FUNDING LEVELS
Secretary, let us go back to my comment on Career Pathways.
I think it is really important that people certainly, in high
school, begin to get a sense of what jobs are out there: What
the job satisfaction of those jobs is like, what the
comparative salary level of those jobs is compared to other
jobs, and let us be sure people have choices.
In the Career Pathways account, we started that in fiscal
year 2020. In the most recent bill, we provided $15 million,
which was an increase of $5 million. Your Department last June
gave the first awards under this program, were made through the
2020 funding. As you start making--what are you going to do
about this program? And how are you going to monitor the
success of the awards you have already given?
Secretary Walsh. Thank you very much. Well, first of all,
Senator, you know, I certainly agree with you in Career
Pathways being an important aspect to make sure we continue to
fund in this budget, because many young people in America, as
was said in, actually both of your opening statements, not
everyone is on a pathway to a college, and we have to make sure
we are creating pathways into different careers.
This program was not dropped out of the budget, we didn't
specifically call it out in the 2023 budget, we actually
requested an increase of $226 million for the National
Dislocated Reserve which funds these grants. So it is part of
the National Dislocated funds, which funds these grants. And
one other thing, to be more clarifying this, I will absolutely
work with you in your office afterwards to make sure that this
is very clear, that we understand that these pathways monies
are still in the budget when we actually look for an increase.
Senator Blunt. Well, let us do that, because your staff
told us just a couple of days ago, you specifically didn't
request money in this category. So let us talk about, not
today, but let us follow up and talk about what we intend to do
there, how we are going to monitor the grants that are already
out there.
INDUSTRY PARTICIPATION IN REGISTERED APPRENTICESHIPS
And I think what the Chair and I have tried to focus on in
the committee, has been being sure people have the information
they need, and then the opportunities they need to pursue as
quickly as they can the jobs they would like to have, rather
than spending years after high school searching for the
information that they could have gotten while they were in high
school, or just after they got out of high school. And so we
are going to continue to talk about that.
On apprenticeships, generally, how do we ensure that all of
the industries that want to participate in the registered
apprenticeship program, have a chance to do that?
Secretary Walsh. Yes. We are reaching out right now, we are
sitting down with stakeholders, and we are talking to industry
about creating those pathways. I honestly feel in my heart that
we are living in a unique moment in time, we are seeing people
quit their jobs at high rates, we are seeing companies having a
hard time finding people to go work for them. We are seeing
young people that just can't connect to a good-paying job.
And I think the best way, in my opinion, is looking at
apprenticeships in different industries, in the healthcare
sector, in the IT sector. You see it in the building trades,
and you see it in trucking now, how it is working. We take that
model that is working in those industries.
BENEFITS OF PRE-APPRENTICESHIP PROGRAMS
I also want to add a component of pre-apprenticeship, so
young people will have the opportunity. I was over in Germany a
couple weeks ago, I was at Volkswagen, and I met with the
leadership of the Volkswagen Company, and I saw the technology
in there. But I met with about 20 young people between the ages
of 16 and 18 years old that were apprentices, they were in an
apprenticeship, pre-apprenticeship at Volkswagen.
And they were getting a stipend, but they were also
learning on-the-job training, not necessarily how to use the
machinery, but they were getting skills in coding, and how to
use technology. And I asked them. You know, they go to school a
couple days a week, and they are in the company a couple days a
week. We need to start thinking of those models that we are
seeing in Europe that have been so successful in
apprenticeships, in Switzerland. So we are working on those.
MONITORING H-2B VISAS
Senator Blunt. Okay. Good. On H-2B visas, the temporary
workers, and this is a big issue in a lot of sectors of our
economy, particularly the tourist sector. And if you don't have
those part-time workers the full-time jobs go away. We need to
be sure that people understand that. That there are seasonal
jobs, where, if you don't have the seasonal workers ready to
come in and take the seasonal jobs then the jobs for other
people that are full-time, year-round jobs, go away because the
whole process just doesn't work.
That is particularly evident in tourism. In the last
addition of workers, and I think the Department has expanded
the program in a significant way to about 121,000 H-2B visas,
but the last 35,000 of those were gone within five business
days.
How are we monitoring that? And would you help me express
the importance of being sure those kinds of jobs are filled for
people who work alongside part-time workers, and have full-time
jobs they wouldn't have if those part-time workers weren't
there?
Secretary Walsh. Yes. Let me, first and foremost, I had a
meeting with my office last week to talk about the H-2B
program, about the distribution of the visas, because some of
the Senators here at this table, and other members of the
Congress and Senate, have called me, both Democrats and
Republicans, about it.
And the increase in interest in this program, in the
thousands of companies that are now applying for these visas,
have exceeded--that we have never seen as much business, or as
much interest in this program.
INCREASED TARGETING OF THE H-2B VISA PROGRAM
So we are having conversations. I think what we need to do
with the H-2B visa program, and we are doing some internal
conversations, I think we need to have a real honest
conversation about what the future of the program should look
like. We expanded this year, in the first round of the H-2B
visas, I want to say, 22,000 visas. In the second round, we
added another 35,000. That is the largest allotment,
additionally, of H-2B visas since the program was revamped in
2000--I think--2013.
And the need or the desire to be getting these programs
just getting bigger, and bigger, and bigger. And what is
happening is, a lot of companies that are filling out
applications for these programs they are doing it wrong because
they have never done it before, and they get disqualified. So
all of the people that know what they are doing are getting
their applications in, and they get these grants. That is one
problem.
The second problem is, and we had this conversation, as I
said, the other day; we talked about the different industries
in America. You have sugar down South. You have the crabbing
industry on the coast. You have the fishing industry in Alaska.
We are thinking about how do we make sure when we create these
extra allotments, is there a way for us to be able to put some
allotments aside, because if it comes out in April then the
farmers might get all the H-2B visas, but you need something in
September or October for a different harvest, or something like
that.
So we are looking at the program right now, on how to, how
do we make this program, I wouldn't say more efficient, more
successful. This program is needed. I am a supporter of the
program, quite honestly, because in a lot of areas that it is
really difficult to get workers in a short period of time.
These companies, we asked these companies two things. One is to
make sure there are strong labor protections for the workers
that come from the southern border, number one--and Haiti, and
some other places.
And number two, we want to make sure that they do their due
diligence in trying to hire local American workers prior to
them getting H-2B visas. So we are asking them those two
things. Make sure you make an honest effort to look for
workers, number one. And number two, we ask them as well to
make sure they treat their workers fairly.
Senator Blunt. Good. I would be more than happy to work
with you and your staff on this. It is a problem. It is a
problem we have dealt with for a long time. I think the numbers
you have put out there this year, are as aggressive on this
program as anybody has ever been, but the work environment is
different than any environment we have ever been in. And that
is why it makes some sense. But I would love to work with you
on it.
Thank you, Chair.
Senator Murray. Thank you. Senator Schatz.
RESCINDING JOB CORPS EXEMPTION FROM THE SERVICE CONTRACT ACT
Senator Schatz. Thank you, Chair and Vice Chair.
Secretary, nice to see you again; and really enjoyed our
conversation the other day. I know you are a big fan of the Job
Corps. Hawaii Job Corps is one of the best in the Nation,
regularly at capacity, and really delivering on the mission. I
want to talk to you about the pay. DOL (Department of Labor)
exempts Job Corps' contracts from the Service Contract Act,
which means the Job Corps employees don't get prevailing wages
and benefits.
My understanding is that is an administrative authority
that you have. You could waive that but you don't have the
money, and so the question is pretty simple. Would the
Department consider rescinding the exemption if Congress
provides the resources to do so?
Secretary Walsh. Yes.
Senator Schatz. Good enough for me. And if so, can you
provide the committee with the amount of funding that would be
required to do so?
Secretary Walsh. I will get that number for you. But I
appreciate you asking that question. And I don't want to take
too much of your time, but I think Job Corps is one of the most
underutilized programs that we have in the Federal Government,
that we could have 57,000 people a year that go to Job Corps,
prepared for a job. And when a young person leaves Job Corps--
and I look forward to visiting your district and seeing the Job
Corps there--they should be guaranteed a job when they graduate
Job Corps.
ONLINE PRESENCE OF DEPARTMENTAL TRAINING RESOURCES
Senator Schatz. Thank you very much. And speaking of job
placement, this is a sort of broader question. I want you to
imagine, say, 10 years from now, 5 or 10 years from now, what
does the Department of Labor's online presence, online training
resources look like?
You know, coming from State government, you know, more than
a decade ago, the implementation of Federal workforce training
programs is very siloed. We have got a Workforce Development
Board that meets as a committee of the whole, with maybe more
than 100 people, and they ratify their workforce development
plan, mostly based on the fact that if they ratify it they get
their revenue. And so there is not a lot of big-picture
thinking.
And I am wondering whether there is a way to turn the
Department of Labor's website, and other online presence into a
real resource for workers, so they can, not just find jobs
because there are plenty of private sector platforms for that,
but figure out what the, you know, college and career readiness
pathways are, what kind of technical training you need.
All of it is a labyrinth if you are new to the workforce,
or if you are transitioning from one job to the other. And so
this is a broader question. What does that website look like if
you have all the resources in the world, in 10 years, so that
it is really servicing people in a new economy?
Secretary Walsh. Yes. That is a great question. I think
number one it is, in 10 years from now we get to expand our
American job centers that do that work on the ground in cities
and towns all across America, number one.
Number two, if there is a worker in America that is looking
to make a change in their career, or put themselves in a better
situation, they should be able to click a few buttons, get to a
resource guide on the Department of Labor that directs them to
their State or their city, that has the ability, that there is
a partnership with the Federal Government in creating a pathway
into a good-paying job.
So for example, if you live in, a small town in Hawaii and
you are looking for a job, well the Department of Labor might
not know who the employers are there, but we work collectively
with the local government to make sure that that resource is
there.
LINKING INDIVIDUALS TO EMPLOYMENT RESOURCES
It does two things: Number one, it would allow the person,
the individual to be able to find the resources, but as
important, it will allow employers to also find the people. So
you would have to work with the employers as well, to make sure
that they are part of the system, because the employers, if
they feel that it is a good training opportunity, and the
resources are being spent well in good workforce development,
then we are helping employers grow.
We saw this year in this country 4.7 million people go into
entrepreneurship on their own, 20 percent increase in the past.
Some of those folks are going to become companies, some of
those folks are going to become big companies, some of those
folks are going to be looking for employees. The best way to do
that is having the resources. So I think it is about both sides
tying the worker to the job, and the job to the worker.
WOMEN'S BUREAU ACCOMPLISHMENTS
Senator Schatz. Thank you. A final question: I have
skepticism about bureaus, and so I pushed on my staff about the
Women's Bureau. I said, what has the Women's Bureau actually
done for women? And they have done an extraordinary amount for
women.
Secretary Walsh. Yes.
Senator Schatz. Helping with the Equal Pay Act, the FMLA
(Family and Medical Leave Act), and they can also be credited
for helping to ensure women were included in laws providing
minimum wage and overtime. Do I have your commitment to
continue to support the Women's Bureau so that it can build on
the successes from the last century?
Secretary Walsh. Yes. When I first became Secretary of
Labor, the first thing I did was I asked for an increase in
budget for the Women's Bureau. When I was Mayor of Boston we
had a Women's Commission in Boston, and I changed it from a
commission to an office in the Bureau. We need to give the
Women's Bureau more power in the Department of Labor, as well
as the Veterans' Office as well.
Senator Schatz. Final, just a comment. I want to thank you
for your decision to include data on American Indians, Alaska
Natives in the last monthly report. And look forward to working
with you in this space. Thank you.
Secretary Walsh. Thank you, and thank you for bringing that
up, because I think I misspoke in the very beginning in my
comment about the numbers. So thank you.
Senator Schatz. Thank you.
Senator Murray. Thank you. Senator Hyde-Smith.
Senator Hyde-Smith. Thank you, Madam Chairman and Ranking
Member.
And thank you for being here today, Mr. Secretary, and I
certainly appreciate your help with my labor issue with the
catfish processing plant in Mississippi. And one of the things
I want to talk about, is this administration continues to blame
President Putin for this inflation, and despite the price
increases going through the roof, but the administration, in my
opinion, got it wrong when they kept insisting that this is
transitory.
THE NATURE AND IMPACTS OF INFLATION ON EMPLOYMENT
And, you know, we have--it has been proven that it is
anything but transitory. But the Biden administration has
expressed that the United States is prepared for this, and
positioned to meet the challenges of this stagflation, given
the local--the strong labor market, but employment levels are
still way below pre-pandemic levels.
So how can this possibly be true that we are positioned
with the employment levels being so low, that we are positioned
to overcome this?
Secretary Walsh. Thank you very much, Senator. Let me just
begin by, there is no question that inflation, we all know this
is causing pain for families in America, rising energy costs,
food prices, stretching budgets, all across the United States
to very thin. But this is also an issue that Europe and U.K.
are dealing with as well.
So there is no question, there are two things that we
cannot deny. Number one is, the economic challenges we have had
over the last two-and-a-half years due to the pandemic,
shutting America down, and tens of millions of Americans not
going to work and, not having really a strong plan for that,
because we weren't prepared for a pandemic. The last time there
was a pandemic was a hundred years ago.
IMPACTS OF RUSSIA'S WAR ON UKRAINE
And what Vladimir Putin is doing in Ukraine is an atrocity
number one, and number two, absolutely is having stresses on
the global economic crisis. I was with the President last week
and we were talking about wheat. There is wheat in Ukraine that
we can't get out of Ukraine, because Russia is blocking the
exportation out of Ukraine. We have oil that we are taking from
Russia, we have European countries that aren't taking oil. So
we can't deny the fact that those challenges aren't adding to
inflation.
The President has been very clear on lowering the costs
that families have in front of them. He is also focused on
reducing the deficit. I am working myself, 8.7 million
Americans have gone back to work since the end of the pandemic,
since the beginning--not since the end of the pandemic--since
the pandemic kind of began and is moving forward.
IMPROVING EMPLOYMENT PROSPECTS
We have the lowest unemployment since 1970, and we have
identified, and I have identified that we do have a problem in
our country with making sure we are creating pathways for
people to connect into jobs. And that is why I have asked for
the increase in this budget in workforce development programs,
in job training programs, in community college programs, and
also in apprenticeship programs, and creating better pathways
for people.
CHALLENGES FOR SMALL BUSINESSES
Senator Hyde-Smith. How is the Labor Department adjusting
or correcting its policies to address the issues of these small
businesses that are having such a time trying to fill these
positions, and related to the hardships placed on the American
families?
Secretary Walsh. Yes. Well, I am willing to talk to any
businesses and communities around America, to talk about ideas.
I spent a lot of my time--you know, as Labor Secretary I spent
a good amount of time reaching out and talking to businesses,
as well, in America. Probably as much--more time than I talked
to, quite honestly, unions in America.
Because I find it is really important to understand the
challenges that businesses, particularly small businesses are
having in our country. And small businesses, the biggest
challenge is--well they have a lot of challenges right now,
particularly with the pandemic, but their challenges now are
trying to find workers that want to work in those different
industries. So we absolutely will. If these industries, that
you, or companies, you want me to talk to, I would love to.
Senator Hyde-Smith. And I agree obviously, that the Russian
invasion has had a lot to do with this, but I also
wholeheartedly believe that shutting down the Keystone Pipeline
is what started it before the invasion. And employer retention,
particularly in the manufacturing and the warehousing sectors,
is a highly significant issue and quite a problem in the
workforce today, obviously.
CREATING JOBS THROUGH MODERNIZING HIGH TURNOVER INDUSTRIES
But more and more companies find it hard to hire and retain
workers for roles that normally have high turnovers, that are
repetitive task jobs, and it seems that the opportunity to
utilize technology could be a solution to fill these positions,
while also creating a higher skilled position for the
programming and operations of such things as collaborative
robots.
And I believe this concept could be a game changer to
reduce turnover while increasing higher wages and the workers
for these positions, that so many people have difficulty
dealing with. But it is just, you know, with the manufacturing
that they are in, does the Department share this view? And will
you provide any insight into the Department's focus in this
area?
Secretary Walsh. Yes. Certainly the President is very
supportive of creating more, and it is expanding manufacturing
in America. And I know I can't lobby for legislation, but I
would hope that we can get the Bipartisan Innovation Act
through Congress, so that we can continue to make investments
in American workers, in manufacturing. Some of that will be
industrial manufacturing, and some of that will be technology
in manufacturing.
And I think that we have such a great opportunity in front
of us. I don't want to say. I said this yesterday and I
probably shouldn't say it today, but I think that this
Bipartisan Innovation Act is actually one of the biggest pieces
of legislation for the future of our economy, and for the
future of our workforce moving forward.
Senator Hyde-Smith. Thank you. And my time is up.
Senator Murray. Thank you. Senator Baldwin.
Senator Baldwin. Thank you, Madam Chair.
Welcome, Secretary Walsh. I know our Chair asked you
earlier about the importance of child care in terms of getting
people back to work, but I have a more specific question to ask
you about.
INVESTING IN EDUCATIONAL AND CHILD CARE TRAINING PROGRAMS
Wisconsin is using a Department of Labor grant to test out
an apprenticeship program that would train workers who enter
the early childhood education and child care workforce.
Expanding this type of apprenticeship in my mind could have
a real multiplier effect. So not only would it address severe
shortages in the child care workforce and industry, but by
increasing the supply of available providers, it would free up
more parents to be able to look at full-time work. And by
filling open positions we might even reduce inflation by
helping businesses increase their production.
So how can the Department encourage investment in child
care apprenticeship programs to reduce the workforce shortages,
and increase the output of our economy?
Secretary Walsh. First of all, thank you for the question.
And I am encouraged to see what is happening in Wisconsin, to
see how that works. And I think that having programs like that
around the country, to check is really important. This budget
request that we are asking for is $303 million for
apprenticeships to further expand and modernize diversified,
registered apprenticeships, by investing in high-quality youth
and pre-apprenticeship models.
So you are doing it in Wisconsin, we are doing it here with
the trucking challenge here in Washington, and around the
country, quite honestly. We are looking at other areas, we are
looking at healthcare, we are looking at IT. There is no
question. When you think about the child care industry, number
one, the challenges they have.
Number one, they have a challenge with funding, and the
funding is not consistent in every State, sometimes the States
fund it, sometimes the cities fund it, the Federal Government
is funding it to some degree. That is one challenge.
The second challenge is recruiting and retaining talent,
and having that pipeline, that young-person pipeline, or that
pipeline into that industry where people can get paid while
they are learning, on-the-job training, is going to be really
important, number two.
Number three, the President filed the bill that really
deals with the cost of child care. I think that the latest
bill, if I am not mistaken, is a family earns $150,000
collectively; they pay no more than 7 percent of their salary
for child care. That is another important aspect of it, making
it affordable for families at the kitchen table.
And the last thing, which is the first thing that you
talked about, it really is not just about training people into
this industry, but making sure we are paying them, and treating
them fairly, because the long-term sustainability of the child
care industry is key, the long-term sustainability of our
economy is key, and they go hand in hand.
STATUS OF WORKPLACE VIOLENCE RULE
Senator Baldwin. Thank you. Last month I introduced the
Workplace Violence for Healthcare and Social Service Workers
Act. It would require OSHA to set an enforceable standard to
require healthcare employers to establish plans to prevent
workplace violence.
Incidents of workplace violence have increased
significantly during the pandemic, but were high for healthcare
workers and social workers prior to the beginning of the
pandemic. And frankly, our healthcare heroes have been put
through hell, and certainly deserve better from all of us.
The need for action was made even more tragically clear by
a deadly shooting at a hospital in Tulsa, Oklahoma, just a few
weeks ago. So I know this item has been on OSHA's regulatory
agenda. I wonder if you can update me and the committee on the
status of the Workplace Violence Rule.
Secretary Walsh. Yes. Thank you. First of all, no one, as
you know, should lose their life on the job for whatever
reason, or even be concerned about losing their life on the
job. And I know the administration strongly supports the
passage of your bill, which is really important. In the
meantime, OSHA has also worked extremely hard and has
successfully prosecuted several important workplace violence
cases under the Occupational Health and Safety Act. So we have
done that. OSHA continues to issue citations in this space. So
thank you for that.
And the last thing is, and I said earlier to the
Chairwoman, I believe that we are on pace, hopefully, to get
some final rule in the next 3 to 6 months.
RACIAL DISPARITIES IN STATE UNEMPLOYMENT PROGRAMS
Senator Baldwin. Okay. Final question; this week a GAO
report examining State's execution of the Pandemic Unemployment
Assistance Program found significant racial disparities in the
rate of approval. The report recommended that as a part of
efforts to modernize the unemployment system that Department of
Labor examine the potential causes of racial and ethnic
disparities.
Will you commit to making that examination as recommended
by GAO? And do you have any insights at this point?
Secretary Walsh. Yes, no. Absolutely, you know, the
Department is focused right now on both fixing, and the short-
and long-term issues with the unemployment system. You know, we
have announced the availability of more than $750 million in
grants, funding for States. We have Tiger Teams that are out
working--we are working on improving identity--improvement to
the identity verification tools within the UI (Unemployment
Insurance) program, we are working on equity grants, we are
piloting programs.
I actually feel, I feel really good where we are right now
in this process, because we have both States, Democrat and
Republican Governor States that are very active with us in the
UI reform. So I feel good where it is at. Eventually--I mean I
asked for an increase in funding this year, but eventually
States are going to have to really step up if they really want
to make their systems equitable across the board. When I say
``step up'', I mean making investments by stepping up.
Senator Baldwin. Thank you.
Senator Murray. Thank you. I see Senator Braun has joined
us. Are you ready to go? Or do you want 5 minutes? Senator
Braun, if you want to go ahead.
Senator Braun. Thank you, Madam Chair. Good to be talking
to you again.
MAINSTREET AND GIG ECONOMY WORKFORCE CHALLENGES
I just attended, earlier today, the National Federation of
Independent Business Owners, and I and another Congresswoman,
we were answering questions that they have. And many there are
concerned, in general, about Main Street businesses. My wife
has had one since 1978 and they are downtown. Some of the stuff
that happened through COVID, a lot of those businesses got shut
down, and many of them are grappling with all the issues we
hear every day, a lot of pre-COVID, workforce, workforce,
workforce.
There is a particular part of the economy though, the gig
economy. And independent contractors, Main Street business
owners that so many of them, to me, are so analogous to blue-
collar workers, because they actually live out of these
businesses, and I have always been a proponent in running my
own business for 37 years: high wages, great benefits, safe
workplace, no turnover. And I think that, generally, Main
Street America, smaller businesses do all of that.
Let us focus on the gig economy, particularly independent
contractors. It seems like, and they think that the current
administration is trying to, you know, take their way of life
away. You know, they looked at the PRO Act, they look at some
of the things that are being done.
I would like your general comment on: Why we would look at
them any differently from the good, blue-collar worker that
most of us employ for those same reasons? Why would we want to
do anything that would diminish their way of living because to
me, they are that?
DEFINING INDEPENDENT CONTRACTORS
Secretary Walsh. No. Thank you, Senator. And you know, in a
lot of cases independent contractors, people who are
independently employed do great work, and they are part of our
economy, and they are part of our--in some cases part of our
main streets. We see it in trucking, and we see it in different
industries.
The concern that I have always had when it comes to
independent contracting, is folks that are under the
understanding that they are hired as employees, and then they
are paid with a 1099, and they are not--they are not
technically--they are actually an employee of a company.
And I think that there are many different definitions of
the concerns that people have in that, and that is kind of
where, when I say this, I will speak for myself personally,
that I have always gotten concerned. An example of that is a
restaurant where somebody gets hired as a dishwasher, and then
all of a sudden they are being paid with a 1099, and they have
no repercussion at all.
They are really not an independent contractor, they are a
dishwasher who works for a company. And we have been able--the
Department of Labor, over the years, has gone back and claimed
lost wages for people that have been characterized, or
described in those different areas.
But when you talk about Main Street, I hear what you are
saying. I mean, my formal role, obviously, you know, we had a
lot of businesses, that people might have had a flower shop, or
they had something that they were in themselves, their own
worker, they were independent, they kind of did their own
thing, or they were a planner, or things like that. I
understand that.
BUSINESS OWNERS WITHIN THE GIG ECONOMY
Senator Braun. So let us focus more closely on gig economy
then, because I don't think you should game the system by
issuing 1099s when, technically, that individual is an
employee. That to me is maybe skirting the rules.
But let us focus on gig economy. These are individual
business owners. And they are worried too that they are going
to be drawn into that independent contractor issue, and then
lose their independence, their livelihood, because they would
not be of that same category you are talking to. They are
running their own businesses, and generally a business of one.
Secretary Walsh. Yes. In the gig economy, I mean, I have
spent a lot--I don't want to say a lot of time--I have spent a
fair amount of time in talking to the gig economy companies
here in America, both the leadership of the companies, the
advocacy groups that are pro-gig economy companies. And some of
the other side that that isn't a pro-gig economy.
And I know that in a lot of States, California passed the
Ballot Initiative, Washington State passed a law, and in
Massachusetts, yesterday the Massachusetts Supreme Court just
threw the ballot question for the gig economy for the Uber and
Lyfts off the ballot. So basically saying, you have to come up
with legislation.
So I know a lot of these conversations are happening in
other places. I actually had a conversation last week--I will
be real quick on this and actually provide another question--
with Germany, talking about what they did with the gig economy
in Germany. So just asking, what was the path forward there? So
we have not taken any action as a Department, but I am still
talking to all these groups.
Senator Braun. Well, very good, because I think that in our
unique economy, you have got anywhere from huge corporations
that, to me, shoulder the biggest responsibility, and where
unions definitely come into play, because of the counterweight
against that much financial power, make sure that we don't take
Main Street America in all of its individualism, you know, kind
of swept into a category that they are not part of.
Because you never know when that individual, that gig
business, that small business on Main Street becomes a larger
business. And to realize most of them make their living out of
that. They are not growing it with return on equity in mind.
Secretary Walsh. And if you want to let the independent
group that you spoke to today, they are more than welcome, I
would love to sit and talk to them.
Senator Braun. Thank you.
Senator Murray. Thank you. Senator Capito.
Senator Capito. Thank you, Madam Chairman.
Thank you, Mr. Secretary, for being with us here today, and
thank you also for the visit that we had in March. I enjoyed
our conversation. And we talked about apprenticeships there. So
I would like to ask a question.
DIVERSITY OF SUPPORTED APPRENTICESHIP PROGRAMS
We have some excellent apprenticeship programs in our
State. And I recently visited one at Marshall University's, at
the Manufacturing Tech Accelerator at the Robert C. Byrd
Institute at Marshall. And it is providing participants with
the skills they need to succeed in entry-level positions in
manufacturing, you complete 2,000 hours of paid, on-the-job
training from a participating employer, and the apprentices
will qualify for a certificate to be a manufacturing
technician.
I met a veteran there who had obtained this certification
after retiring fully from his career in the military, and he is
also now, excitingly, in the process of attaining a patent for
an efficient manufacturing process that he created just months
ago; a very impressive story.
So after visiting RCBI (Robert C. Byrd Institute), and
after our conversation, I am wondering about your approach at
Labor on apprenticeships, whether it is organized labors, or
some such as the apprenticeships that are being offered through
this program. And you know, would you say you support a wide
range of these? And how are you approaching this at the
Department?
Secretary Walsh. Yes. I absolutely--thank you first and
foremost for having me in your district. I support a wide range
of apprenticeships in different industries. I think the model
of the building trades is the gold standard, $2 billion a year
investment, all by companies, and there is no Federal
investment, or State investment. There are small grants around
for different programs, but the majority of those programs get
funded.
And you are talking about high quality training going on
there. That is one model we could use. I think that there is an
opportunity for us in this country to really have the ability
to partner with community colleges, workforce development
programs. I had the urban league in my office yesterday, we
talked a little bit about diversity, and inclusion.
So you know, I have answered this question a couple times
today about apprenticeships, but I hope by this--next year's
hearing when I am here, we are able to point to several dozen
apprenticeship programs that we are kicking off in the country,
whether it is in healthcare, IT, early child's care, different
industries that we can actually make a difference in.
Senator Capito. Great. We all look forward to that
announcement. And certainly, as we see workforce shortages in
just about everything; this is, I think, going to be extremely
important because, not just the skill sets developed, but the
time that it takes in certain instances, I think we can maybe
short-cut some of the time to get a trained individual on the
job.
IMPROVING SAFETY IN THE AMERICAN MINING INDUSTRY
I am very proud that I supported the nomination of
Christopher Williamson to be the Assistant Secretary for the
Mine Safety and Health Administration, or MSHA, as we call it
at home. He is a proud son of Williamson, West Virginia, and we
are happy that he is there. I don't know what initiatives he or
you plan to take in the mine safety obviously.
Secretary Walsh. Yes.
Senator Capito. It is extremely important. I will tell you
that our mines are operating at much higher capacity than they
have in the past year or so, because of the increased demand,
because of the geopolitical situation we see around the world,
we are happy about that. We are not happy about the
geopolitical situation, we are happy we got more miners to
work.
So in the MSHA area, what are you guys looking at and how
can we be helpful?
Secretary Walsh. Well, one thing we are looking at is we
have seen an increase in fatalities this year, in mining. And a
couple months ago we had the major miners on a call, we did a
call with them, to talk about sharing best practices on safety,
something I did when I was the Mayor of Boston whenever we had
high shootings in Boston, we brought all the stakeholders to
the table. We did the same thing with the mining industry.
We are asking for an increase in mine safety work in this
budget. Chris is doing a great job, you know, his feet are wet.
He didn't have--there wasn't much of a learning curve there, he
knew the issue. And certainly they are working hard, and we do
need to--we get some money from the American Rescue Plan, and
we need some additional funding on the mine safety.
We are actually seeing an increase in mining, maybe not
coal mining but we are seeing an increase in mining in America
as well, metal mines, and things like that. So we need to make
sure we stay on top of it.
Senator Capito. Right.
Secretary Walsh. And any time we acknowledge that these are
tragedies happening, we are on top of it.
Senator Capito. Good. And I know a lot of those can occur
in a lot of different--they may not be at the face of the mine,
in the instance of the coal mining, a lot of them are vehicular
accidents; and things like that, on the work site. So anything
we can do to make them safer, and keep them healthy is
important.
YOUTHBUILD GRANT PROGRAM DEPENDABILITY
The last thing, I am just going to kind of put this on your
radar screen. I have always been interested in YouthBuild, I
have visited--the Randolph County Housing Authority has a
YouthBuild program that they have had for years. And then for
some reason last year, no funding. And so it was kind of
disruptive.
If you could help me, kind of figure out--they did get
their funding for this year, so we are very pleased about that.
But we wanted to have the continuity that you need in a program
like that. So if we could work with your office to try to
figure out how to make sure they have an iron-clad application
that they can continue this program.
Secretary Walsh. Absolutely. I have been of supporter of
YouthBuild for 25 years. When I was a legislator in
Massachusetts we used to support it, and I know that YouthBuild
got a--I think it was a $24 million dollar grant this year on
YouthBuild, but also clean energy; so some of the transition as
well.
Senator Capito. Good. All right. Thank you.
Secretary Walsh. Thank you. Thank you, Senator.
Senator Murray. Thank you very much.
WORKER PROTECTION OVERSIGHT AND ENFORCEMENT
Mr. Secretary, I really hugely appreciate the President's
strong investment in DOL's proposed budget for the Wage and
Hour Division. As you know, the Federal minimum wage has been
frozen since 2009, at the rate of $7.25 cents per hour. Yet,
even at that low rate some employers are denying their workers
that unacceptably low wage, or their overtime, or both. And it
really is our job to protect those workers and make sure they
are properly paid for their work.
But right now I know the agency does not have the resources
to do their job when corporations flout the law. Can you talk a
little bit about how the requested increase in Wage and Hour
will allow you to improve the oversight on that?
Secretary Walsh. Yes. There is no question about it. You
know, when I came in here a year ago, March, as the Secretary
of Labor, one of the first things I did was looking at the
different departments and agencies to see how we are doing with
carrying out the work. At that time you, and Congress, and the
Senate, had just passed the American Rescue Plan, and the money
was being--hadn't quite been diverted yet to the different
agencies. And we found that there was a real, real shortfall in
enforcement and in the ability for these different departments,
Wage and Hour, and OSHA, and other places, to do their job.
I don't view Wage and Hour, OSHA, and MSHA, I will use
those three as example, as just an agency to go out and give
corporations in America a hard time. I would love to get to the
point where we can do education as well with companies, and
what it means to pay people forward. But we were not there yet.
So what this additional revenue would do, would allow us
the opportunity to protect more American workers, and making
sure that workers that are owed money, who did the job, worked
for companies, and were undercut by somebody, that they pay
their workers fairly. That is all we are asking for here.
So that is, kind of, what would allow us the opportunity to
do more, more enforcement of workers' rights, and making sure--
and we are talking about workers who worked the work.
Senator Murray. Yes.
Secretary Walsh. We are not talking about people who didn't
do the job. We are talking about people who actually worked the
work, did the 30 hours, the 40 hours, the 8 hours, whatever it
was, and didn't get paid, because their employer decided: I am
not going to pay you.
STRENGTHENING YOUTH OUTREACH AND ENGAGEMENT
Senator Murray. Right. Okay. Thank you. And finally, I just
want to talk to you because I am--about our young people who
are disconnected from educational workforce opportunities right
now. I know that more than a million fewer students are
enrolled in college now, compared to before the pandemic, and
the decline of community colleges, also really significant.
And high school graduation rates decreased in nearly half
of all the States this past year, reversing really decades of
progress. So work-based learning experiences are really
integral to keeping young people connected to their school, and
high quality workforce development programs can help
successfully re-engage those young people who have, or are
considering leaving school before graduation, and put them on
pathways to success.
Talk to us about how you are working to strengthen the
links between education and workforce development systems to
re-engage these young people.
Secretary Walsh. I am going to just, for an observation,
your relationship with Senator Blunt; we need more of that when
we talk about how we are going to move our economy forward, how
we are going to move our workforce forward. We need to be
collectively working as Democrats and Republicans, to really
make sure we are making investments in job training, workforce
development apprenticeships.
We can look at one side of the aisle, and as you just said,
people not going to college, and dropping out of high school,
and not having opportunity, as a challenge, and a difficult and
sad challenge for America, but you can also look at the other
side of the coin, it is an opportunity. How do we get to those
young people? How do we connect them to the workforce
development apprenticeships, job training opportunities that
are out there?
As I go around this country, I visited 36 States. I have
visited probably 82 cities. I go to community colleges
everywhere, and I am in different neighborhoods, I am talking
to--I am talking to businesses, and leaders, and what is out
there, whether it is electric boat in Connecticut, or it is
Tinker Air Force Base in Oklahoma. These are public.
And then private industry, there are so many opportunities
out there for people in America, we need to really make sure
that we are connecting young people to jobs, and we need to
make sure that, not just connect them to jobs, we need to go
out and find the young people.
JOB CORPS OUTREACH POTENTIAL
We see it in Job Corps. Our Job Corps centers pre-pandemic
had 57,000 young people in it, 57,000 people. Today we have--I
think there is 20,000 online, 12,000 in person, we are getting
there but we are not there. We have lost a lot. So we have to
be more intentional, going out and recruiting, and finding
young people, and finding people to let them know what is
available. A lot of people, Senator Schatz talked about online
presence.
Senator Murray. Mm-hmm.
Secretary Walsh. A lot of people, including myself, didn't
know that we had American job Centers in America. I had two in
the City of Boston, I had no idea they were there. We have to
do a better job of explaining what those programs are.
Senator Murray. Okay. Thank you. Senator Blunt.
Senator Blunt. Thank you, Chair. I have a couple more
questions, Secretary. One is looking at the proposed budget,
and back to the topic of inflation. Sometimes the budget
reflects big increases in programs on all of the veterans'
programs at the Department of Labor. The increase was less than
2 percent. There were a couple of programs where actually
programs were reduced like State grants and transition
assistance.
VETERANS' PROGRAMS STRUCTURE AND INVESTMENT LEVEL
What are you going to do about these veterans' programs
that have a less than 2 percent increase in a more than 8
percent inflation world?
Secretary Walsh. Yes, no. One thing, that we are not
cutting the veterans' budget, we are increasing the veterans'
budget. The veterans, we work very closely----
Senator Blunt. Well, I am not suggesting you are not
increasing----
Secretary Walsh. No, no. I am not saying you did that. I am
not saying you do that. Sorry.
Senator Blunt. This is a question of how much you are
increasing if these programs lose attraction, particularly the
couple of programs you are cutting. But I am, overall,
interested in all of these programs that don't increase, but
increase by less than 2 percent. Other programs in the
Department increase by a lot. I mean you are asking for a 13
percent increase in the overall budget, but the existing
veterans' programs all grow by less than 2 percent. That is my
question.
Secretary Walsh. Yes. Well, we are asking--yes, thank you.
So I am just trying to get my notes here. We are asking for a
5.6 percent increase in our veterans' budget, the bottom line.
And part of that is because the veterans' Department is when I
talk about apprenticeship programs, we are including the
veterans in the apprenticeship program.
When I talk about workforce development and job training
investments, we are including the veterans in that program as
well. So it is not a----
[Sneeze].
Secretary Walsh. God bless you. It is not a directed line
item in the Workforce Development for veterans, but we have
veterans included in those conversations, and in that money. So
when we think about like the trucking challenge, we have
reached out--we did a trucking challenge, the Department of
Labor made an investment because you gave us money, a little
bit of discretionary funds to create this program. We did.
The first place we reached out to is the veterans, to get
veterans into the program. So we are integrating our veterans'
office into everything that we are doing. So the veterans'
money is specifically for vets, for them to do the outreach,
and do all the work that they do, and then all the other money
that we have, whether it is workforce development, job
training, all this, the veterans are part of that as well.
Senator Blunt. I want to say to that, Secretary, there is a
reason that we had the veterans set aside in some of these
areas. And I think when we did that the idea that: Well, the
veterans are included in everything else, would not have been a
very satisfactory answer, as you are trying to focus on
veterans specifically. But we can talk about that some more.
AMERICAN RESCUE PLAN FUNDING
And my other question is, the Department, in the American
Rescue Plan, received $2.2 billion in March as part of that,
less than 5 percent of that has been spent, $94 million has
been spent, $335 million has been obligated. So less than 5
percent has been spent, less than 20 percent, or so, has been
obligated. What are you planning to do with that $2.2 billion?
Secretary Walsh. I was just trying to--we are still
spending it, and I was told behind me, we are still spending
it.
[Laughter].
Secretary Walsh. I will have to get that out----
Senator Blunt. That is a better answer, than we are not
going to spend it. What are you planning?
Secretary Walsh. Yes. Well, if you give me money I am going
to spend it.
Let me get back to you, specifically, on what it is, where
we are going, and the reasons for it. Some of the--we are
having challenges with hiring, we are having challenges with
different pieces. Let me look into that, and get back to you
with a better answer.
Senator Blunt. Well, I would think some of the overall--
this big increase you asked for in the overall budget, maybe
there are some ways to justify this $2.2 billion to fill some
of those gaps. But I look forward to talking to you about your
plans on that money specifically.
Secretary Walsh. Absolutely, and we also don't want to
spend the money just for the sake of spending the money.
Senator Blunt. Well, I agree with that.
Secretary Walsh. You know, these are taxpayers' dollars,
and we want to make sure we spend it correctly.
Senator Blunt. Yes. Thank you, Secretary. Thank you,
Chairman.
Senator Murray. Thank you. That will end our hearing today.
Secretary Walsh, thank you for a very thoughtful discussion
about how we can support our working families, and build an
economy that does work for everyone.
ADDITIONAL COMMITTEE QUESTIONS
For any Senators who wish to ask additional questions,
questions for the record will be due June 24 at 5 p.m., the
hearing record will remain open until then for members who wish
to submit additional materials for the record.
[The following questions were not asked at the hearing, but
were submitted to the Department for response subsequent to the
hearing:]
Questions Submitted to Hon. Martin J. Walsh
Questions Submitted by Senator Patty Murray
transparency of employers' anti-union spending
Question. I have been heartened by successful votes to unionize
across the country, even despite corporations union busting and
launching expensive disinformation campaigns. The Department plays an
important role in providing transparency on this type of spending,
which is chronically underreported.
What are your plans to boost transparency of employer spending on
anti-union messaging in the workplace?
Answer. The resources included in the President's Budget would
strengthen Office of Labor-Management Standards' (OLMS) review of
reports that employers and consultants file with the Department under
the Labor-Management Reporting and Disclosure Act (LMRDA). The
resources would complement current efforts and ensure that OLMS will
continue to achieve its priority to adequately enforce the long-
neglected employer and consultant reporting requirements. OLMS would
enforce the LMRDA's reporting requirements on employers and their labor
relations consultants in the same way it enforces reporting
requirements governing labor organizations. The agency would review
employer and consultant reports for completeness and accuracy and open
investigations if compliance assistance efforts do not remedy any
problems identified. The agency would also develop a methodology to
identify employers and consultants who have engaged in reportable
activity but failed to file a report, and open investigations as
appropriate. As a result, whether the entity filing a given report is
an employer, a labor consultant, or a labor organization, the agency
will evaluate and investigate evidence that suggests they have not
disclosed reportable activity. These undertakings will be standard
investigations of anti-union expenditures and activities and, as with
our Compliance Audit Program, will be conducted with the same level of
scrutiny as audits of labor unions.
OLMS is taking other, more immediate steps to ensure meaningful
enforcement of employer and consultant persuader reporting activities.
OLMS is making employer and consultant reports more visible and easily
accessible on the OLMS website. OLMS staff are educating the public and
directing individuals with knowledge of unreported activity to contact
an OLMS tip line.
The Department is also posting blogs, compliance assistance
publications, and other materials to advance its efforts to obtain full
compliance.
infectious disease notice of proposed rulemaking
Question. During the hearing, we discussed the need for the
Occupational Safety and Health Administration to move quickly to
finalize the permanent COVID-19 standard for healthcare workers and a
permanent standard for infectious diseases. Secretary Walsh indicated
the healthcare standard would be done within three to 6 months, while
the next steps for infectious diseases would be done on the same
timeline. The Spring 2022 Unified Agenda of Regulatory and Deregulatory
Actions released on June 21, 2022 identifies September 2022 for
issuance of the final rule for the healthcare COVID-19 standard and May
2023 for the notice of proposed rulemaking (NPRM) for the infectious
diseases standard.
Please describe your actions and plans for issuing the NPRM on
infectious diseases closer to the timeline you identified during the
hearing.
Answer. OSHA's current priority is issuing a final COVID-19
standard. Unfortunately, COVID is still a threat to working people and
we are focused on keeping our healthcare workers safe. We expect to
finalize the COVID-19 standard in September of 2022 and will then turn
our full attention to the infectious disease NPRM.
COVID has shown us that we need a permanent infectious disease
standard that will address all infectious disease hazards, including
future pandemics. At this time, OSHA expects to publish an infectious
disease NPRM in May of 2023. This is an aggressive timeline and
somewhat dependent on our COVID work because the team of people working
on the COVID standard also work on the infectious disease standard.
Question. How has the Department used available funding from the
American Rescue plan for this important work?
Answer. Funding from the American Rescue Plan has been an extremely
valuable resource for us to fund work on the COVID-19 and infectious
disease standards in several ways. We are spending ARP money on staff
time for economists, health scientists, industrial hygienists, and
epidemiologists, as well as on legal assistance. We also utilize
contracts to further the Agency's work. Contractors perform research,
review literature, and engage in analysis.
Question. How will the Department use available balances of such
funding to accelerate promulgation of the NPRM?
Answer. The Department will continue to use ARP funding to pay for
staff such as economists, health scientists, industrial hygienists, and
epidemiologists, as well as legal assistance. We will also use ARP
funding for contracts to further our work so that we can move as
quickly as possible on the NPRM.
protecting agricultural sector workers
Question. The number of Wage and Hour investigations in agriculture
fell to 1,000 in fiscal year 2021.
This level is down by more than one-third from a decade ago.
``Labor Exploitation and Trafficking of Agricultural Workers During the
Pandemic'' (https://polarisproject.org/wp-content/uploads/2021/06/
Polaris_Labor_Exploitation_and_
Trafficking_of_Agricultural--Workers_During_the_Pandemic.pdf) finds
that labor trafficking victimization of H-2A Visa holders increased by
70 percent comparing a 6-month period prior to the COVID pandemic and
during the pandemic. The report further noted that nearly two-thirds of
such trafficking victims suffered threats of reporting to immigration
and excessive hours, while one-third suffered the withholding of
earnings.
Please describe the Department's actions and plans to protect
workers in our agricultural sector.
Answer. Farmworkers are among the lowest paid and most vulnerable
workers in the country.
Many of these workers are excluded from Federal collective
bargaining protections under the National Labor Relations Act and from
overtime protections under the Fair Labor Standards Act. As a result,
farmworkers are uniquely susceptible to wage theft, unlawful
retaliation, and human trafficking.
For farmworkers with H-2A visas, these vulnerabilities are
compounded by the fact that they are reliant on the employer for
housing, transportation, access to food, and their temporary status in
the country. While the number of workers with H-2A visas has grown from
160,000 in fiscal year 2017 to more than 250,000 in fiscal year 2021,
even without a corresponding increase in enforcement appropriations,
the Department has continued to prioritize agricultural workers in its
enforcement and outreach.
The Department is committed to ensuring that the rights of
farmworkers are protected. In fiscal year 2021, the Wage and Hour
Division (WHD) recovered over $8.4 million for over 10,000 workers in
the agricultural industry. To continue to achieve the greatest impact
possible, WHD has launched a national initiative to focus enforcement
and outreach efforts on the agricultural industry. When egregious
violations are found, WHD uses every tool at its disposal, including
program debarment, to protect workers and ensure that employers are
held accountable.
Through its investigations, WHD is uniquely positioned to detect
potential human trafficking indicators, to make referrals to criminal
law enforcement agencies, and to calculate restitution for victims when
requested by the Department of Justice. WHD continues to support the
updated U.S. National Action Plan to Combat Human Trafficking by
committing resources, collaborating with criminal enforcement agencies,
and providing outreach to combat labor trafficking. Wage and Hour is
also a U & T-visa certifying agency, and its efforts significantly
assist qualifying victims of these crimes who are seeking immigration
relief from the Department of Homeland Security (DHS).
WHD also plans to continue to strengthen its partnerships with
employers, worker advocates, and community-based organizations. Since
the beginning of this Administration, WHD has sponsored and
participated in 787 outreach events focusing on H-2A compliance with
agricultural workers and their advocates, as well as with employers,
agents, recruiters, and partner agencies engaged in the H-2A program.
Educating employers increases compliance while partnering with workers'
trusted allies makes workers feel more comfortable filing complaints
and participating in investigations.
Finally, the Department is currently engaged in rulemaking to
modernize the administration of the H-2A program and to increase
protections for workers and has announced that it will engage in
further rulemaking to promote worker voices and worker protections.
Question. How will the budget proposal support implementation of
these plans in fiscal year 2023?
Answer. Over the course of the past year, WHD has been working to
rebuild its enforcement workforce and target its hiring in the
geographic areas where its services are most needed. As a priority
industry, employment in agriculture is taken into consideration when
allocating personnel to be hired. The fiscal year 2023 budget will
support hiring in district offices that focus on agricultural
investigations, including district offices in Alabama, California,
Florida, Georgia, Mississippi, North Carolina, and Texas. These hiring
efforts will enable WHD to continue to focus on essential outreach and
enforcement in agricultural areas.
Question. What steps will you take to ensure that unclaimed back
wages collected, including for visa holders, are paid to those harmed
workers?
Answer. WHD's efforts to put wages back in workers' pockets
transforms lives. In fiscal year 2021, WHD assessed an average of
$1,211.70 for over 190,000 employees due wages, which can mean the
difference in being able to meet the rent or pay a childcare bill.
Returning these wages to workers is essential to the agency's mission,
and WHD leverages partnerships with community-based organizations and
foreign consulates while also engaging in innovative outreach
strategies to ensure that back wages are paid to vulnerable workers.
WHD has been working with worker advocates, unions, and foreign
consulates to build trust and increase workers' access to the agency.
These partners have been vital to the agency's efforts to locate
workers and maintain relationships with workers over the length of the
investigations. For example, WHD worked with community-based
organizations in Pennsylvania to hold a back-wage clinic for unlocated
mushroom farmworkers. The clinic resulted in the distribution of
$68,377 in back wages to 66 workers that WHD had previously been unable
to contact.
Similarly, consulate partnerships amplify WHD's outreach and
connect the agency with immigrant communities. As a trusted source of
information and assistance, they help WHD reach more workers and
deliver on the protections the law provides. They also play a vital
role in locating workers due back wages after they have left their
employment in the U.S.
Finally, WHD has developed an online search tool, Workers Owed
Wages (WOW) that allows workers to enter information to find out if
back wages are being held on their behalf.\1\ The tool provides a quick
and easy way for employees to find out if they are owed money and
receive it. From January 2022 through June 2022, the WOW search tool
facilitated the disbursement of over $2 million to workers owed wages.
The WOW system is currently available in English and Spanish.
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\1\ https://www.dol.gov/agencies/whd/wow.
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Question. Please describe any barriers to back wage payments being
made and plans to overcome them, including any needed legislative
changes.
Answer. Immigrant and low-wage workers face several obstacles in
recovering wages that are owed to them. These workers are often
difficult to locate because they move frequently or may return to their
home countries. This problem is exacerbated by the fact that
investigations, particularly agricultural investigations, are often
long and complex and may include litigation, making it more likely that
workers have moved or changed contact information between the time that
the investigation was initiated and the time that back wages are
recovered. Further, low-wage and vulnerable workers may fear
retaliation for coming forward and claiming the wages that are owed to
them.
There are some statutory barriers as well, such as the current
statutory requirement for any back wages to be sent to Treasury if they
are not able to be delivered to the worker within 3 years. DOL believes
that altering that requirement in some form could be beneficial to
returning back wages to workers and is available to provide technical
assistance and further briefing on the matter.
evaluation of ofccp contractor selection
Question. The President's budget proposes $147 million, an increase
of $39 million, for the important work of the Office of Federal
Contract Compliance Programs (OFCCP).
How does the OFCCP plan to evaluate and continue to improve its
supply and service scheduling list for selection of contractors with
the greatest risk factors for noncompliance with equal opportunity and
affirmative action requirements?
Answer. OFCCP is deploying its resources more strategically by
strengthening its process for scheduling Federal contractors for
compliance reviews. The agency is incorporating broader sets of data
and information to identify risk factors for noncompliance and better
align its selection process with enforcement priorities. OFCCP
schedules employers for evaluation using a ``general administrative
plan . . . derived from neutral sources,'' which includes various labor
economic data and analytical procedures.\2\ This can include, for
example, a focus on industries or sectors with high prior labor and
employment law violation rates or particular geographic regions.
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\2\ See United Space Alliance, LLC v. Solis, 824 F. Supp. 2d 68, 91
(D.D.C. 2011) (citing Marshall v. Barlow's, Inc., 436 U.S. 307, 320,
321 (1978)).
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In May 2022, OFCCP issued a new supply and service scheduling list
of Federal contractors and subcontractors. Using neutral criteria,
OFCCP developed and implemented a statistical methodology to conduct
predictive modeling for the purpose of selecting Federal contractors
and subcontractors. This model incorporated an analysis of EEO-1
Component 1 data to identify instances in which utilization of
demographic groups differ from industry and local labor market
averages. OFCCP focused on industries that have experienced employment
growth during the pandemic and the industries expected to receive
significant Federal investments for infrastructure and economic
recovery, to ensure all workers have equal access to employment
opportunities. The agency scheduled a larger proportion of
establishments from those industries in which the average hiring rate
increased after March 2020, the date of the onset of the economic
impact of the pandemic, relative to a baseline established from hiring
rates in the years before the pandemic (2014--2020).
OFCCP developed this methodology to strengthen its ability to
identify risk factors for noncompliance in order to focus agency
resources where workforce utilization patterns may indicate the
existence of barriers to hire or advancement. OFCCP further anticipates
these changes will help the agency reach a broader universe of Federal
contractors, as well as subcontractors. Historically, OFCCP has not
scheduled subcontractors for compliance evaluations when there is a
lack of data concerning subcontract dates. For this scheduling list,
OFCCP included the prime contract date as a proxy for the subcontract
dates and will examine the utility of this approach.
In addition, where a parent company has three or four
establishments on the May 2022 scheduling list, OFCCP has assigned
these compliance reviews to the same region so that the agency and the
contractor can engage in these reviews in a coordinated manner to
increase efficiencies for all.
OFCCP is continuing to strengthen its supply and service scheduling
list for selection of contractors with the greatest risk of
noncompliance, including by promoting contractor compliance with the
requirement to develop and maintain written Affirmative Action Programs
(AAPs). OFCCP developed and launched in early 2022 an online portal,
the ``Contractor Portal,'' for supply and service contractors to self-
certify electronically that they have developed and maintained AAPs for
each establishment and/or functional unit, as applicable. Compliance
with OFCCP's written affirmative action program requirements is
essential because a complete AAP and the supporting personnel activity
data provide the foundation for OFCCP's compliance evaluation of a
contractor's employment practices. By June 30, 2022, existing
contractors were required to certify whether they were in compliance.
OFCCP has announced to contractors that those who fail to complete the
certification though the Portal, or state that they have not developed
or maintained an AAP, will be more likely to be on OFCCP's scheduling
list than contractors that have certified that they are in compliance.
Question. How would additional resources requested in the budget
support this objective and increase contractor compliance with such
requirements?
Answer. Given the Federal Government's historic investments in the
economy over the next decade, many more businesses will become Federal
contractors and subcontractors. As a result, OFCCP will have
substantially increased enforcement responsibility over this growing
number of contractors. Additionally, contractors' workforce structures
and employment selection and pay systems are rapidly evolving, becoming
more sophisticated and complex and the pandemic has accelerated changes
to workplace structures, including the increased reliance on remote
work.
The fiscal year 2023 funding request would allow OFCCP to increase
its capacity to review a greater number of contractors and strengthen
its investigation and resolution of systemic discrimination cases,
which will increase contractor accountability and attention to
proactive compliance. In particular, the fiscal year 2023 request would
support the hiring, retention, and training of a highly qualified and
diverse workforce to support OFCCP in advancing its mission through
enforcement, outreach and education, stakeholder engagement, and
compliance assistance while emphasizing efficiency, productivity, and
accountability throughout the organization. As the Agency rebuilds,
OFCCP will continue robust engagement with a broad coalition of
stakeholders, including contractors. The Agency will develop resources
to highlight evidence-based research and promising practices to inform
employers when developing actionable strategies to build inclusive
workplace cultures and advance equity. The 2023 request would also
provide the resources necessary to onboard new hires, develop and
deliver in-depth employee training programs, and invest in the
requisite workforce technological equipment and solutions. Investing in
training and technology support along with hiring will help ensure
long-lasting operational success and prevent attrition.
OFCCP also will work to align its traditional review of single
contractor ``establishments'' with the evolving reality of the
workplace, where contractors often take a more enterprise-wide approach
to evaluating their employment practices, including compensation. With
increased funding, OFCCP would also enhance its database production,
software expertise and research capabilities to support stronger
coordinated enforcement.
Where contractors refuse to provide access to data, witnesses, and
other information that is necessary for OFCCP to conduct its compliance
evaluations, OFCCP will use its fiscal year 2023 funding to prepare
enforcement referrals for denial of access cases so that Federal
contractors adhere to their responsibility to provide this information.
Question. How would access to data collected by the Equal
Employment Opportunity Commission advance the OFCCP mission and
minimize data collection burden on covered contractors?
Answer. OFCCP selects contractors for comprehensive compliance
reviews by relying on a variety of data sources to focus the agency's
enforcement resources. The EEO-1 report is a joint data collection to
meet the enforcement needs of both the U.S Equal Employment Opportunity
Commission (EEOC) and OFCCP, while avoiding duplicative information
collections and minimizing the burden on employers. EEO-1 Component 1
workforce demographic data has been shared between the two agencies for
decades.
Collecting and analyzing pay data from private employers is
important to OFCCP's efforts to ensure pay equity. In 2014, OFCCP
published a rule proposing a pay data collection to enable the agency
to more effectively focus its enforcement resources to better identify
potential pay inequities warranting compliance evaluations. During the
rulemaking, OFCCP considered public comments from contractors urging
EEOC and OFCCP to coordinate compensation data collection by using the
EEO-1 report, thereby decreasing employer burden. Ultimately, OFCCP
determined that, rather than publishing a final rule, it would
collaborate with the EEOC to collect compensation data as part of the
EEO-1 filing.
In September 2016, the Office of Management and Budget (OMB)
approved EEOC's final Paperwork Reduction Act notice to collect, from
private employers and Federal contractors, workforce pay data by
gender, race, ethnicity, job category and by pay bands via the EEO-1
report (Component 2). In August 2017, OMB issued a memorandum
initiating a review and immediate stay of the revised data collection
regulation. As a result of a lawsuit against OMB and EEOC challenging
the stay, in 2019 a Federal district court reversed the stay and
ordered the EEOC to collect 2 years of pay data from employers. EEOC
complied, however, it subsequently announced that it would no longer
collect pay data via the EEO-1.
OFCCP is interested in exploring opportunities to use the EEO-1
Component 2 pay data that has been collected to inform OFCCP's
scheduling methodology and identify potential pay gaps or patterns of
occupational segregation that merit further investigation. Pay data
could be used to conduct analyses to identify employers that are
outliers and depart substantially from comparable benchmarks that may
warrant further inquiry. Such analyses could inform the methodology for
selecting contractors for further review where OFCCP would have the
opportunity to review the full set of pay data. When combined with an
analysis of utilization outliers, the identification of pay outliers
lends significant marginal utility to the Component 2 pay data for
OFCCP and could enhance OFCCP's scheduling process. OFCCP's desk audit
also includes a three-year trend analysis of EEO-1 Component 1 reports
to identify utilization outliers. A similar analysis of trends in the
Component 2 pay data--separate or in conjunction with the EEO-1
Component 1 data--may provide additional value in OFCCP investigations.
olms union protections
Question. The Office of Labor-Management Standards also protects
union members through its work to identify fraud and embezzlement of
union assets.
How would additional resources be used to target compliance audits
on those at-risk of violating requirements without burdening unions
that don't have any compliance issues?
Answer. Additional resources to fund the Office of Labor-Management
Standards' (OLMS) initiative to enforce and review for accuracy
employer and consultant reports required under the Labor-Management
Reporting and Disclosure Act (LMRDA) dovetail with its efforts to
reduce burden on labor unions that are free of compliance issues. The
resources requested would permit OLMS to continue audits of labor
unions both to detect embezzlements and to promote compliance with the
LMRDA. Because it is not feasible for OLMS to audit every union, and
doing so would unfairly burden compliant unions, OLMS developed and
applies a methodology to focus its auditing resources on unions whose
objective metrics suggest that they may have been victimized by
criminal activity. This targeting strategy conserves resources--of both
unions and OLMS--that would have been wasted on audits of problem-free
organizations. The effectiveness of this methodology is measured by the
percent of conducted audits that result in the opening of a ``fallout''
criminal case. If the fallout rate is high, it supports the conclusion
that OLMS is successfully targeting its resources to labor unions that
need it. Note: To be clear on a point that is sometimes misunderstood,
we emphasize that the fallout rate measures only the ``efficiency'' of
OLMS' targeting strategies. A high number does not suggest high
criminal activity and a low number does not suggest low criminal
activity. The fallout rate measures only the effectiveness with which
the agency identifies and audits those unions that are vulnerable to
fraud or embezzlement based on financial metrics that are often
associated with fraud or embezzlement.
Question. Please describe how the Voluntary Compliance Partnership
program is improving compliance with the LMRDA and allowing OLMS to
cost-effectively fulfill its mission.
Answer. OLMS works with the nation's most prominent international
and national unions through the Voluntary Compliance Partnership (VCP)
initiative to assist their local and affiliate unions with LMRDA
compliance, thus multiplying the effect of OLMS' efforts and allowing
OLMS to more cost-effectively fulfill its mission. In 2021, the VCP
program leveraged the resources of national/international labor unions
to improve the compliance performance of over 16,000 of those
international and national unions' affiliates. The same year, OLMS
expanded the VCP program to 47 partner unions, an increase of two
unions over the previous year. Over the years, VCP has solidified its
platform as a national compliance assistance effort that measurably
improves timely reporting, bonding coverage, accurate and complete
reporting--including the submission of union constitutions and bylaws--
and the implementation of financial safeguards to prevent unions from
becoming victims of financial fraud. For example, the overall late-
filing rate for unions under the VCP initiative is significantly lower
than for non-VCP unions, and the late filing rate decreased
significantly after increasing during fiscal year 2020, as the COVID-19
pandemic began. VCP continues to assist partner labor organizations
with OLMS procedures regarding mergers and terminations, regional and
national training conferences, and other organizational development
activities. In every instance where a labor union partner addresses the
compliance problems of its affiliates, it reduces the demand for OLMS
enforcement resources, saving money and permitting OLMS to more cost-
effectively fulfill its mission.
bls youth cohort development
Question. The budget proposes $14,500,000 for the Bureau of Labor
Statistics to continue development of a new youth cohort for the
National Longitudinal Surveys.
How would these funds be used to support a new youth cohort and
generate additional information on and support research about the
experience and education of youth during the COVID-19 pandemic, their
future education and training and transition to the workforce?
Answer. The Bureau of Labor Statistics (BLS) began developing a new
National Longitudinal Surveys (NLS) youth cohort in fiscal year 2021
and since then has conducted extensive outreach to Federal agencies,
user groups, and scientists with relevant areas of expertise.
Information about these activities, including agencies and subject
areas around which they were organized and topics they targeted for
feedback, are available at https://www.bls.gov/nls/nlsy26.htm. These
outreach efforts allowed BLS to form a conceptual and practical
foundation. Building upon these activities, beginning in fiscal year
2023, BLS would use the funding proposed in the President's Budget to
build-out the new youth survey, which includes the following steps: (1)
create management structures for coordinating the development of
sampling procedures, questionnaire content, collection design, data
processing systems, and dissemination tools; (2) design procedures for
sampling and accessing the appropriate, high-quality sampling frame;
(3) develop the collection instruments; and (4) initiate development of
systems to manage, process, and disseminate the data that are collected
or acquired from alternative sources. Also, outreach would continue
throughout the development process. BLS would field its first round of
collection in fiscal year 2026 and release the first set of data in
fiscal year 2028.
It is anticipated the new cohort would comprise a nationally
representative sample of youth between the ages 12 to 16 and living in
the United States at the first interview, who would be interviewed
periodically through their life up to and including through retirement
age. The youth comprising the group will have been born during 2010--
2014, and thus experienced the COVID-19 pandemic during their
elementary schooling years. In the early years of the survey, BLS would
collect retrospective information to capture information about
respondents' elementary schooling years, including their experiences
during the COVID-19 pandemic. This, along with the extensive
information collected from them through their teenage years and into
adulthood, would enable a wide range of research about how the
experiences of this generation during the COVID-19 pandemic influence
their future education and training and their transition to the
workforce. Due to the survey's longitudinal design; its focus on
education, training, skill development, and employment; and the breadth
of additional domains for which it collects information, the new NLS
cohort would be uniquely well-suited to support research on various
topics, including the impacts of the COVID-19 pandemic on the cohort's
educational and professional experiences, yielding valuable insights
for governments, businesses, and other decision-makers. Previous NLSY
cohorts have provided a lens for in-depth study of race-, ethnicity-,
gender-, and income-based differences, and a new cohort would advance
these lines of research, allowing for comparisons across cohorts as
well as incorporating potential adaptations to employment, education,
and training resulting from economic and environmental changes over
time.
office of the solicitor operations funding
Question. The budget requests $178 million, an increase of $52
million, for the Office of the Solicitor which is necessary to support
the day-to-day operations of the Department's agencies and programs as
well as the regulatory agenda and priorities of the Department.
How would additional resources requested for the Office of the
Solicitor reverse the trend over the past decade of the significant
reduction in litigation opened and closed? What's the impact of this
reduced litigation capacity on the ability of agencies to fulfill their
statutory missions?
Answer. With the additional resources provided in the fiscal year
2023 President's Budget, the Office of the Solicitor (SOL) would
greatly increase its enforcement litigation capacity, reversing the
trend over the past decade of a steady and significant reduction in the
number of litigation matters that SOL opens and closes. The decline in
litigation correlates with the reduction in SOL FTE that has resulted
from the combination of steadily increasing costs per FTE and
insufficient direct appropriations, which for SOL have remained
relatively flat. As reflected in the graph below, over the last 10
years, staffing decreases have forced SOL to significantly reduce the
number of litigation matters SOL opens; in fiscal year 2021, SOL opened
just 35 percent of the litigation matters it opened in fiscal year
2012.
At the fiscal year 2023 President's Budget funding level, SOL
anticipates an overall 25 percent increase in its litigation workload,
with opened litigation matters increasing by 63 percent in comparison
to the full-year results from fiscal year 2021 and concluded litigation
matters increasing by 16 percent compared to fiscal year 2021. The
following data, focused on the litigation portion of SOL's workload, is
included in the fiscal year 2023 President's Budget submission. This
does not capture the critical pre-litigation work, legal advice, and
regulatory work that SOL undertakes to assist DOL's agencies:
----------------------------------------------------------------------------------------------------------------
FY 2022 FY 2023 Projected Projected
Projected Projected (with Increase-- Increase--
FY 2021 Actual (Based on Flat President's FY 2022 to FY 2021 to
Appropriation) Budget) FY 2023 FY 2023
----------------------------------------------------------------------------------------------------------------
Litigation Opened.................... 5,156 6,400 8,400 31% 63%
Litigation Concluded................. 6,238 5,500 7,225 31% 16%
----------------------------------------------------------------------------------------------------------------
The following graph illustrates the correlation between the decline
in SOL's staffing levels and the decline in SOL's litigation matters
over the past decade. This graph also illustrates the expected increase
in litigation if the fiscal year 2023 President's Budget were enacted:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The decline in SOL staffing has diminished the ability of DOL (and
its constituent agencies) to enforce the laws Congress has written,
leaving workers unprotected and tilting the economic playing field
against law-abiding employers. For example, SOL is presently forced to
decline roughly 60 meritorious Wage and Hour matters each month, and
about 70 meritorious, contested OSHA cases each month. This diminution
in legal services not only hampers DOL's ability to provide relief for
the most vulnerable workers but harms the majority of employers that
are complying with the law. For instance, construction contractors that
pay overtime to their workers are harmed if competing employers reduce
their labor costs by failing to pay overtime. The fiscal year 2023
budget would enable SOL to litigate more cases generally, and in
particular, more impactful, resource-intensive cases.
Finally, while this question is specifically about litigation, it
is important to emphasize the effect that insufficient staffing has
upon the full range of legal services SOL provides. Presently, SOL is
underfunding critical general counsel programs and has a reduced
ability to support client agencies with compliance assistance
documents, guidance, and letters. Staffing shortages also hamper DOL's
ability to carry out good government initiatives, such as clearing its
FOIA backlog, and provide compliance assistance to the regulated
community.
Question. Please share for the last five fiscal years and the
fiscal year 2023 budget proposal amounts spent on or allocated for the
Office of the Solicitor to:
--Work on Department regulatory activities;
--Support agency enforcement actions; and
--Provide other legal services.
Answer. The table below provides the requested information for the
last 5 years and the fiscal year 2023 budget proposal. Because the vast
majority of SOL's funding goes directly to salaries and expenses for
the personnel that provide legal services,\3\ we have derived the
allocations below from time spent on providing legal services. The
dollar figures in the table were calculated by multiplying the
percentage of total time spent by SOL personnel on a particular
category of legal work (enforcement agencies, other worker protection
agencies, departmental management and other agencies, and regulatory)
by SOL's appropriated budget for a given year. The fiscal year 2023
data is a forecast of the distribution of SOL's work and expenditures
based upon a two-year average (fiscal year 2021 to fiscal year 2022
Q3).
---------------------------------------------------------------------------
\3\ The remaining funding goes to non-personnel expenses that
support SOL legal services, such as Working Capital Fund, rent,
security, stenography, travel, and subscriptions.
---------------------------------------------------------------------------
Following is further explanation of the table and data:
--To demonstrate the expenditures or amounts allocated to ``agency
enforcement actions,'' we provide data regarding SOL legal
support to the DOL agencies that engage in significant
enforcement work: EBSA, MSHA, OFCCP, OSHA and WHD. This
represents about 66 percent of SOL's workload on average over
the period covered.
--Many other DOL agencies engage in worker protection activities, but
their work is not primarily enforcement. We labeled these the
``Other Worker Protection Agencies,'' which include: ETA, ILAB,
OLMS, OWCP, and VETS. This represents about 20 percent of SOL's
workload on average.
--The requested data for other legal services is reflected in the
table as allocations for Departmental Management and Other
Agencies, which covers legal work performed for the
Department's central management administrative agencies, and
other agencies not included in the categories above. This
represents about 11 percent of SOL's workload on average.
The allocations in the table for regulatory work cover all DOL
agencies and represent about 3 percent of SOL's workload on average.
The regulations allocation is not duplicative of the other agency-
specific categories listed above and in the table below.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
international labor enforcement
Question. The budget proposes $129 million, an increase of $23
million, for the Bureau of International Labor Affairs (ILAB) to
enforce labor commitments of trading partner countries; combat child
and forced labor and human trafficking; and effectively carry out its
mission. This increase would build on the increased investment of $10
million provided to ILAB in last year's appropriations bill.
How would requested funds be used to build on increased resources
provided in last year's bill to include in the List of Goods Produced
by Child Labor or Forced Labor those that are produced with inputs
produced with forced labor or child labor? What actions have been taken
and are planned to incorporate this information into the list?
Answer. The implementation of the List of Goods Produced by Child
Labor or Forced Labor, including listing goods that are produced with
inputs produced with forced labor or child labor, requires significant
resources. ILAB is grateful for the interest from Congress in this
vital tool and has utilized its appropriation to make important
investments in this mandated work.
Recent Actions
ILAB has added a limited number of goods that we have reason to
believe are produced with inputs produced with forced labor or child
labor to the 2022 TVPRA List, which will be released in late September.
The additions were based on ILAB's improved knowledge base with respect
to tracing supply chains, developed in part via two $4 million grants
in fiscal year 2021 to examine tracing methodologies for the supply
chains of cotton, thread/yarn, and textiles from India, cobalt from the
Democratic Republic of the Congo, and cotton from Pakistan. The grants
contributed to a preliminary basis for a credible and multi-sectoral
supply chain tracing methodology that ILAB then used to identify the
goods and inputs that will be added to the 2022 List.
ILAB is currently fulfilling its required involvement in
interagency efforts related to transparency and accountability in
supply chains, such as those under the Uyghur Forced Labor Prevention
Act (UFLPA). As a statutory and critical member of the Forced Labor
Enforcement Task Force (FLETF), ILAB reassigned staff to work closely
with the Department of Homeland Security (DHS) and other interagency
partners to meet the initial six-month timeline for developing the
UFLPA enforcement strategy. ILAB plans to continue to prioritize staff
resources to support the FLETF's ongoing work, as well as to support
the increasing interagency and external demand for ILAB's technical
expertise and guidance on implementing strong due diligence.
ILAB is uniquely placed to lead the U.S. Government's response on
developing effective and worker-centered due diligence guidance and
plans to continue leading and innovating in these priority areas using
the requested funding. The requested funding would also allow ILAB to
expand its preliminary supply chain tracing methodology by
incorporating more complex trade data and developing and acquiring more
specialized knowledge of supply chains--in particular, unique
processing steps, which frequently act as a barrier to effecting supply
chain tracing and transparency. ILAB would also incorporate private
sector, multilateral and international organization, and other public
sector efforts in this area. The requested funding would enable ILAB to
expand its list of goods that include inputs made with forced or child
labor, as well as to continue to strengthen and improve our list of
goods made with forced or child labor in the direct production.
ILAB notes that expanded mandates for reporting and increased
demand for ILAB expertise have outpaced appropriations for several
years and appreciates Senators' leadership and commitment to supporting
ILAB's work. ILAB's ability to examine additional supply chains beyond
the supply chains explored in the two grants identified above
(especially supply chains which may feature abusive and exploitative
conditions) will require intensive and expanded resources.
Question. The USMCA Supplemental Appropriations Act, 2019
appropriates an additional $180 million, available for obligation until
December 31, 2023, for ILAB to support reforms of the labor justice
system in Mexico, including grants to support worker-focused capacity
building, efforts to reduce child labor and forced labor in Mexico, and
other efforts related to implementation of the USMCA. These funds are
supporting important progress in Mexico in the implementation of its
labor law reforms and increase in the number of independent unions
recognized in Mexico. How does the budget support further progress in
this critical area? What future needs do you anticipate for this work
particularly after the supplemental funds have been awarded?
Answer. The number of independent labor unions is still a small
percentage of all unions in Mexico, but it is slowly growing with
implementation of the labor reform, supported by ILAB project
interventions, expert support from ILAB's labor attaches in Mexico,
ILAB engagement with Mexican labor ministry staff and officials, and
efficient deployment of the Rapid Response Mechanism. A recent ILAB
monitoring trip identified the need for continued support of awareness-
raising about the new labor justice model, including among small to
medium-sized enterprises. As ILAB works to build the capacity of the
new labor justice institutions in Mexico, particularly at the local
level, ongoing funding will be needed to ensure the continuity of
current efforts. Though all of ILAB's USMCA-related technical
assistance projects in Mexico are designed to build sustainable
capacity, the magnitude of Mexico's labor reform will necessitate
ongoing ILAB engagement--including extended labor attache presence as
well as new and extended project investments, beyond December 31,
2023--to consolidate and institutionalize achievements and progress and
ensure an enduring transformation of Mexico's labor landscape.
Question. Mathematica's ``Synthesis Review of OCFT work in Cocoa
and Fishing/Seafood'' identified relationships between project features
and effectiveness, recurring challenges and opportunities for improving
future project success, including on sustainability of reductions of
child and forced labor resulting from ILAB-funded projects. How will
the conclusions and recommendations from this review be considered for
fiscal year 2022 and fiscal year 2023 funding opportunity
announcements? What steps are planned to strengthen project
sustainability so that labor abuses don't re-emerge after projects
conclude?
Answer. ILAB aims to disseminate all evaluations across the Bureau
and our grantee community to maximize access and usership, including by
hosting open presentations on evaluations and distributing ILAB's
``Evaluation Roundup'' to the larger stakeholder community. ILAB is in
the process of launching a Knowledge Management Portal on the ILAB
website to enable stakeholders to search past evaluations and other
project resources by keyword to find specific lessons learned and good
practices.
ILAB considers many conclusions and recommendations from the
Mathematica Synthesis Review report on the cocoa and fishing/seafood
sectors to be applicable to ILAB's broader technical assistance
portfolio and is applying these recommendations across funding
decisions and Funding Opportunity Announcements. Some examples of ILAB
responses are listed below:
--Mathematica Recommendation: Consider funding projects for longer
periods of time/larger budgets or to consider a two-phase
funding approach.
--ILAB Response: ILAB will pilot a two-phase project approach in
fiscal year 2022. In Phase I, the project will work to improve
regional and national coordination, and, if successful, these
efforts will be scaled up within the region during Phase II.
--Mathematica Recommendation: Engage families, community leaders, and
unions/workers to support effectiveness.
--ILAB Response: ILAB fiscal year 2022 programming and funding
opportunities include an amplified focus on workers and their
families. New projects will prioritize strengthening local
civil society organizations and formal and informal worker
organizations and engaging community leaders to build trust
with marginalized and vulnerable workers, foster sustainable
local capacity, and better support workers and their families
with wholistic and locally led interventions.
--Mathematica Recommendation: Design projects with more feasible
outcomes.
--ILAB Response: Fiscal year 2022 funding opportunities draw on ILAB
staff expertise, complementary labor diplomacy efforts, trade
leverage, and complementary sector- or country/region-specific
initiatives to designate project sectors and countries or
coordinate with grantees to jointly select countries and
sectors. This comprehensive design approach supports the
achievement of ambitious outcomes and ensures that project
interventions will be supported and complemented by mutually
reinforcing efforts. ILAB also works with grantees to assess
expected project outcomes to ensure alignment with project
timelines and available resources.
--Mathematica Recommendation: Integrate tripartite approaches to
support project effectiveness.
--ILAB Response: ILAB is incorporating tripartite approaches as a
best practice to increase worker voice and dialogue with
government and employer stakeholders and improve labor
conditions. Several ongoing ILAB projects include labor and
employer organizations as co-implementers (e.g., the Solidarity
Center and Center for International Private Enterprise are
jointly implementing a project on labor law enforcement in
Georgia), and ILAB is an active partner in the ongoing and
successful Tripartite Commission in Honduras.
--Mathematica Recommendation: Adopt gender-conscious project design.
--ILAB Response: ILAB now requires applicants to describe an
integrated gender approach from design through implementation
to ensure representation of women, children, and youth (boys
and girls) throughout the life of the project. ILAB is working
with grantees to increase attention to gender in project design
and monitoring and evaluation systems, including requiring
gender-disaggregated data and, where appropriate, requiring
targets for gender disaggregation.
ILAB is taking several steps to ensure the sustainability of
project outcomes to prevent the re-occurrence of labor abuses once
projects have concluded. ILAB encourages project designs that include
robust engagement with existing host government and local community
initiatives to tie project interventions and outcomes into ongoing,
locally led initiatives. ILAB's Pilares project in Colombia, designed
and driven by local civil society organizations, is a model approach
that ILAB intends to scale-up using fiscal year 2022 funds.
ILAB's approach to building the capacity and motivation of local
stakeholders, including government, private sector, and civil society
groups, equips local actors with the tools and information to monitor
and address labor abuses after projects end. All ILAB Funding
Opportunity Announcements (FOAs) require applicants to outline a
sustainability strategy for the proposed project and describe how they
will promote the sustainability of key elements, beginning in the early
stages of project implementation. Grantees update their sustainability
strategy annually to ensure continued relevance of project outcomes and
adjust to changes in capacity of individuals, communities, and country.
evidence capacity investment survey
Question. The Department's Evidence Capacity Investment, January
2022, found that approximately half of survey respondents--which were
restricted to occupations for which the use of evidence is relevant--
reported they or their teams frequently use statistics, research, and
analyses. Just less than one-third of respondents reported using
evidence for service improvements, or research agendas or questions.
Please share your plans for implementing the opportunities for
improvement identified in this report.
Answer. The Department's Chief Evaluation Office (CEO) has analyzed
the findings of the Capacity Assessment for Research, Evaluation,
Statistics and Analysis and identified fundamental gaps in skills and
access to data that together prevent the Department from using evidence
in their work. Based on that analysis, CEO has identified two priority
areas of work:
--Conducting Department-wide trainings and capacity-building support
for both supervisors and non-supervisors to prepare them to
understand and use internal and external research and data
resources. This includes support for staff with no formal
education or training in mathematics and statistics, who
nonetheless need to interpret evidence, as well as training
tailored to those staff who already analyze, interpret, and
report data analyses in their current positions.
--Launching a restricted use data (RUD) program and environment where
DOL staff and trusted researchers can merge, analyze, and use
DOL and other external data resources.
CEO has launched substantial planning and work on both the
trainings and the RUD program within its existing resources, including:
--Establishing a Seminar Series for the Department's staff and
Federal colleagues to learn about new and relevant research,
data, and targeted evidence topics and resources, and to do so
in an informal and accessible setting;
--Launching a monthly internal research roundup newsletter to draw
attention to the Department's work;
--Creating an introductory webinar for all staff to be integrated
into the Continuous Learning@Labor program;
--Leading the development of the Department's Evidence Institute in
collaboration with the Department's Evidence Officials and as
well as the DOL Training Officer and LearningLink staff, taking
first steps toward offering professional, high-quality adult
learning opportunities for DOL staff on evaluation, data
analytics, and other evidence-related technical topics;
--Updating the Department's Scientific Integrity Policy--under the
leadership of CEO and Scientific Integrity Official Dr.
Christina Yancey--to ensure honesty, objectivity, transparency,
and ethical behavior when it comes to science and scientific
processes, in response to the Presidential Memorandum on
Restoring Trust in Government through Scientific Integrity and
Evidence-Based Policymaking; and
--Mapping the characteristics of the Department's existing
restricted-use data files that could support a RUD Program and
developing initial mock-ups of a website interface and
application processes, forms, and other administrative
materials.
CEO will continue to build upon these activities as possible within
existing resources. With additional resources--both in staff and
funding--the Department could expand and deepen the professional-
quality trainings needed by staff as identified in the Capacity
Assessment, as well as fully launch the RUD program, both of which are
efforts that will make more meaningful capacity-building improvements
across the Department's workforce.
Question. How would the budget request support implementation of
these plans?
Answer. The Department proposed an increase to the Departmental
Program Evaluation budget activity. In addition, robustly funding the
Department's overall budget request could help support this work
because CEO can access set-aside funds shared by DOL sub-agencies.
Section 107 of the General Provisions in the President's Budget
authorizes the reservation of not more than 0.75 percent from specific
budget accounts for transfer to and use by the Office of the Chief
Evaluation Officer for departmental program evaluation and related
evidence-building activities. This authority offers an opportunity to
repurpose a small portion of agency budgets for evidence- building.
______
Questions Submitted by Senator Joe Manchin, III
specialization of job corps center curriculums
Question. Job Corps is an educational and workforce training
program administered by the Department of Labor. The Job Corps program
helps youth build the skills they need to succeed, complete their high
school education and help students find employment after they leave.
West Virginia is proud to be home to two Job Corps centers, one in
Charleston and one in Harpers Ferry. The President's budget requests
$1.7 billion in funding for Job Corps in fiscal year 2023, which is an
increase over the previous fiscal year. This funding will allow the
continued operation of all 121 Job Corps Centers, facilitate updates
and rehabilitation projects at existing Job Corps Centers and support
the hiring of necessary staff. While this funding is put to good use in
training the next generation of workers, the Department of Labor should
consider creating a streamlined process that will allow Job Corps
centers to more quickly submit and have approved requests to change
curriculums or offer new, specialized courses to students. This would
help ensure students have access to courses and trainings that will
allow them to compete now and enter competitive industries. Creating
more opportunities for students only stands to benefit our nation.
How can the Department streamline the process by which Job Corps
centers create specialized curriculums, or offer new courses to
students?
Answer. Job Corps recently evaluated the process governing its
change request protocols for curriculums, identifying pain points and
areas for improvements. As a result, in August 2022, the program
implemented several changes to ensure efficiencies in the process.
Noteworthy changes to the process include:
--Streamlined Information Requests.--Job Corps revised the process to
provide clarity to all center operators, including additional
information specific to establishing pre- apprenticeship
curriculums.
--Technical Assistance Enhancements.--The program added a means for
proactive technical assistance to the process (including office
hours) to ensure the timely arrival, completion, and National
Office approval of change requests.
These adjustments, in addition to process changes and ongoing
guidance/training to center operators, were developed to continuously
improve the quality of requests to the National Office and shorten the
timeline for determinations. Job Corps' revised process and ongoing
efforts to increase local and national partnerships will ensure that
the program delivers high-quality curricula and training more
efficiently and graduates are prepared for in-demand jobs with strong
career paths and sustainable wages.
mental health parity law compliance
Question. Each year, the Secretary of Labor is required to submit a
report regarding compliance with mental health parity laws. Mental
health parity laws generally prohibit restrictions on mental health
services that are more restrictive than those for all medical and
surgical benefits. In January, the Department of Labor, along with the
Department of Health and Human Services and the Department of the
Treasury, released a report showing that health insurers for the most
part are failing to deliver parity for mental health and substance use
disorder benefits to beneficiaries. Senator Manchin has heard from
several constituents who work in the mental health and substance use
disorder workforce that mental health parity laws are simply not being
followed. What's worse, mental health parity laws are not really being
enforced. The bad actors aren't seeing any consequences for their
actions, which are limiting patient access to mental health and
substance use disorder services.
What is the Department doing to ensure employers are meeting their
obligations to their employees, and that mental health parity laws are
being enforced?
Answer. The Biden-Harris Administration has made enforcement of the
Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) a top
priority. MHPAEA, as amended by the Consolidated Appropriations Act,
2021 (CAA), specifies how group health plans and health insurance
issuers to whom MHPAEA applies must perform and document comparative
analyses of the non-quantitative treatment limitations (NQTLs) they
impose on Mental Health and Substance Use Disorders (MH/SUD) coverage
to demonstrate parity, and provide those analyses to the Secretaries of
Labor, HHS, and Treasury or applicable state authorities upon request.
This new enforcement authority continues to be the cornerstone of the
Departments' heightened MHPAEA enforcement efforts. In light of the
high priority placed on MHPAEA, the Employee Benefits Security
Administration (EBSA) has redesigned its enforcement strategy and
committed significant new resources to its MHPAEA enforcement efforts
in order to best leverage the additional authority. The Department
continues to devote greater resources to enforcement so as to take full
advantage of these new and existing tools that Congress has provided to
the Departments.
EBSA's ten Regional Offices across the United States are actively
involved in investigating multiple health plan service providers and
issuers, as well as health plans, to assess MHPAEA compliance. EBSA
identifies NQTLs through a review of plan document language, analysis
of claims data, follow-up on leads from provider/participant
complaints, and consideration of other sources. EBSA has developed
specialized investigative tools to help identify potential NQTL red
flags and analyze claims data for MHPAEA concerns. Additionally, EBSA
works with consulting experts to develop approaches to evaluate
comparative analyses.
Each of EBSA's ten regional offices has a team of investigators
dedicated to MHPAEA NQTL investigations and these teams were recently
expanded to provide more resources and subject matter expertise for
these investigations at the regional level. EBSA's NQTL Task Force
continues to provide oversight and coordination of these
investigations, and additional support is provided from the Office of
Enforcement, Office of Field Administration, and Office of Outreach,
Education and Assistance in the EBSA national office.
As a result of the additional funding provided under the CAA, EBSA
continues to hire additional investigators and other staff in support
of EBSA's MHPAEA enforcement work. Since enactment of the CAA, EBSA
onboarded new investigators and other staff using CAA- appropriated
fundings. EBSA has held over 30 MHPAEA NQTL training programs for new
and experienced investigators and other staff since April 2021. The
funding provided under the CAA to support this critical work expires at
the end of 2024.
EBSA has also retained or is in the process of retaining additional
outside consultants and experts in the areas of autism, reimbursement
rates, network adequacy, substance use disorder treatment, and eating
disorder treatment to assist investigators in the review and evaluation
comparative analyses and with medical and behavioral health issues in
these investigations.
EBSA continues to conduct robust outreach initiatives and works
extensively to improve the understanding of MHPAEA among plans, plan
sponsors, issuers, consumer groups, participants and beneficiaries,
healthcare providers, and state regulators. These initiatives include
webcasts, in-person seminars, and nationwide compliance outreach events
for the regulated community. In fiscal year 2022 through June 30, 2022,
EBSA conducted 49 compliance assistance outreach events nationwide that
covered MH/SUD parity, and which were attended by employers, employee
benefit plan administrators, attorneys, accountants, and other plan
officials. Attendees received information about their responsibilities
under Federal laws affecting group health plans, including MHPAEA. In
addition to the compliance assistance events, EBSA also conducted 103
participant assistance and public awareness events that educated
workers and other stakeholders about rights and benefits safeguarded
under MHPAEA.
EBSA currently has 229 open MHPAEA investigations as of July 1,
2022, 124 of which involve one or more possible NQTLs. EBSA is
increasingly focusing its investigative resources on service providers
to multiple employer-sponsored health plans to obtain widespread
corrections and relief impacting participants and beneficiaries of many
plans across the service providers' books of business. These service
provider investigations have focused on impermissible restrictions on
medication assisted treatment (MAT) and exclusions of key services for
autism and eating disorders, among other issues.
From February 10, 2021, through June 30, 2022, EBSA requested
comparative analyses for over 260 unique NQTLs across 97
investigations. This far exceeded the 20 requests that the Secretary is
required, by statute, to make each year (in addition to pursuing
complaints received from the public).
The comparative analyses EBSA has reviewed in response to these
requests continue to lack sufficient information upon initial receipt.
As of June 30, 2022, EBSA has issued insufficiency letters relating to
182 NQTLs, identifying specific deficiencies in the comparative
analyses and requesting additional information to remediate those
deficiencies. In addition, EBSA has issued 54 initial determination
letters citing plans/issuers for noncompliance related to 74 NQTLs (54
unique NQTLs). As of June 30, 2022, EBSA has issued 2 final
determinations of noncompliance.
EBSA is prioritizing enforcement work on NQTLs impacting the
adequacy of provider networks and impermissible exclusions of key MH/
SUD treatments for conditions such as autism, eating disorders, and
substance use disorder and addiction, while continuing to investigate
NQTLs in the form of prior authorization and concurrent review
requirements. EBSA will also continue to enforce MHPAEA's provisions
related to annual and lifetime dollar limits, quantitative treatment
limitations, financial requirements, disclosures, and coverage in all
applicable classifications.
The Office of the Solicitor (SOL) provides legal support for all
aspects of the Department of Labor's work in enforcing MHPAEA. SOL
heavily supports EBSA's MHPAEA efforts, which will increase in fiscal
year 2023 and beyond. In addition to litigating enforcement actions as
necessary, SOL advises on a wide range of projects, including related
to regulatory and sub-regulatory initiatives and investigation and
enforcement approaches. SOL has a substantial number of attorneys
across the country working to support these efforts.
This important and critical work advances the Department's
commitment to serving the needs of the most vulnerable communities, as
workers suffering from mental health and substance use disorder
conditions are often economically and socially disadvantaged with
limited resources to access and pay for care when benefits have been
improperly denied or limited.
feca efforts to combat fraud
Question. Recent reports estimate that more than 105,000 Americans,
including more than 1,500 West Virginians, died from drug-related
overdoses in the last year. This is the highest number ever recorded.
West Virginia continues to have the highest rate of overdose deaths in
the country with 90 deaths per 100,000 people. This is almost triple
the national average of 31.5 deaths per 100,000 people. Fighting the
drug epidemic is one of my highest priorities. The Department of
Labor's Budget Request for fiscal year 2023 asks for $108.2 million to
support the Office of the Inspector General. The Department notes this
funding for the Office of the Inspector General will be used in part to
continue oversight work on several ``key areas of risk.'' Specifically,
the Budget Request notes this funding will be used to fight fraud
against the Federal Employees' Compensation Act, or FECA, program, as a
way to address the oversight crisis.
How will fighting fraud in the FECA program help address the drug
epidemic?
Answer. Reducing fraud is a high priority in the FECA program.
Fighting fraud is critically important to address the drug epidemic and
prevent future epidemics by actively seeking out patterns of
overprescribing and areas of potentially harmful prescribing practices
before they become large scale problems.
The FECA program utilizes a robust analytics platform to detect
concerning trends from medical providers as well as anomalous billing
patterns. The FECA program works closely with Inspectors General
government-wide to support prosecution efforts. In order to keep pace
with nefarious provider activity, the FECA program continues to detect
new and emerging fraud schemes and to implement controls to curtail
them. In fiscal year 2020, the FECA program's focus remained steadfast
on fraudulent pharmaceutical practices by enforcing maximum quantities
for certain prescriptions and drug kits. In fiscal year 2021, needed
controls were placed on durable medical equipment rentals and platelet
injection services. In fiscal year 2022, the program completed
implementation of a pharmacy benefit manager (PBM) which provides
additional tools to safeguard against opioid misuse and many other
potentially harmful drug interactions.
The Federal Government has statutory penalties for those who commit
fraud within FECA's workers' compensation system. Pursuant to 18 U.S.C.
Sec. 1347, it is a felony to engage in a scheme designed to defraud a
Federal healthcare benefit program. Each violation can result in fines
and up to 10 years imprisonment. The FECA program will continue to
actively participate in ongoing auditing of medical billing, as well as
work with the OIG and DOJ to fulfill its requirements to prosecute
fraud and recoup illegal payments to stop fraudulent medical providers
who contribute to the opioid drug epidemic.
These and other collective policy controls and investments,
beginning with those addressing compounded drugs in 2016, have had
tremendous success in decreasing the use of opioids, including duration
and dosage. Reducing fraud in the FECA program and addressing the
opioid epidemic will remain a high priority of the Office of Workers'
Compensation Programs.
In addition, the following information was provided by the Office
of Inspector General (OIG).
Fraud, either by FECA medical providers or claimants, facilitates
the drug epidemic through the illegal distribution of drugs that can
increase or further addictions.
The OIG currently has several Office of Workers' Compensation
Programs (OWCP)-related reviews that focus on various fraud schemes
involving opioids and other controlled substances including: the
illegal prescription or distribution of controlled pain medications;
illegal kickback schemes involving prescribers and pharmacies; and the
unlawful distribution of controlled substances.
In order to more timely detect fraud activity, the OIG is seeking
data from OWCP and their contractors that captures digital information
for each billing from the OWCP and their contractors. Early
identification of anomalies in the data, specifically related to
opioids, will allow the OIG to save taxpayer dollars and protect
claimants by stopping fraud while it is happening, and illegal
practices that lead to opioid misuse. This OIG function is independent
from OWCP's programmatic responsibility to detect fraud and protect
claimants. We are also working with the OWCP to gain access to these
reports and findings of their contractors' fraud and analytics
programs. This will enable the OIG to build on its own data analytic
models and to identify potential fraud for further investigation.
DOL's fiscal year 2023 budget request will allow the OIG to
continue to focus investigative resources on OWCP fraud, particularly
as it relates to provider fraud involving opioids and other controlled
substances. Also, additional funding will enable us to thoroughly
investigate those opioid matters referred to the OIG by the OWCP
Program Integrity Unit.
Question. What other initiatives can the Department undertake to
help end the drug epidemic?
Answer. The Department strongly supports the Office of the
Inspector General's work in this area. In addition, the Department is
addressing some of the root causes and is working to end the drug
epidemic in various ways, both within the Department's authorities and
by working with other agencies.
DOL is committed to working with the Departments of Health and
Human Services and Treasury (together, the Departments) to use their
full statutory authority to support the Administration's response to
address the nation's mental health and substance use disorder epidemics
through enforcement of the Mental Health Parity and Addiction Equity
Act (MHPAEA). MHPAEA facilitates access to treatment for substance use
disorders by eliminating discriminatory restrictions in health coverage
for substance use disorders (such as higher copayments, separate
deductibles, lower annual visit limits) and other barriers placed on
treatment (such as stricter preauthorization or medical necessity
reviews). Under the Biden-Harris Administration, the Departments have
committed to making mental health and substance use disorder parity a
top enforcement priority. The Departments intend to issue additional
rulemaking to further clarify MHPAEA's protections for individuals and
the obligations it imposes on plans and issuers, to facilitate greater
access to mental health and substance use disorder treatment.
In the Office of Workers' Compensation Programs (OWCP), in addition
to fighting fraud, the Federal Employees' Compensation Program (FECA)
program also implemented a pharmacy benefit manager (PBM) in fiscal
year 2022, which provides additional tools to safeguard against opioid
misuse and many other potentially harmful drug interactions.
Utilizing FECA's PBM, the FECA program has instituted thoughtful
controls that allow up to a seven-day supply of an approved immediate
release opioid prescription at a maximum of 90 MME (morphine milligram
equivalents; the dosage strength) per day for claimants newly
prescribed opioids, after which the provider must complete a prior
authorization request to justify continued use. The prior authorization
is reviewed by the PBM's pharmacists and other healthcare
professionals, who will consider accepted conditions and surgeries,
review medication profiles, assess drug-drug interactions and
therapeutic duplications, assess the need for naloxone, and perform
other clinical pharmacy checks to assist with optimizing prescribing
based on nationally recognized guidelines as directed by the FECA
program before approving continued opioid use.
The Department will continue to build on existing initiatives to
address the opioid epidemic and substance use disorder. After awarding
six initial demonstration grants in 2018 to test innovative approaches,
the Department has since awarded over $96 million to states, tribes,
and local areas in response to the opioid crisis. These include 26
National Health Emergency (NHE) Disaster Recovery Dislocated Worker
Grants (DWGs) to states and tribal entities, including a grant of
$10,000,000 to West Virginia, which was active July 1, 2019--June 30,
2022. Currently, 21 grants remain active. The NHE Disaster Recovery
DWGs provide reemployment services for individuals impacted by the
crisis; train individuals to transition into professions that can
impact the crisis, such as alternative pain management, mental health
treatment, and addiction treatment; and create temporary employment
opportunities for peer recovery counselors and other positions that can
immediately mitigate the impact of the crisis.
In September 2020, the Department awarded $20 million in grant
awards to pilot the Substance Use-Disorder Prevention that Promotes
Opioid Recovery and Treatment (SUPPORT Act) grant. The SUPPORT Act
grants were awarded to four States: Florida, Maryland, Ohio, and
Wisconsin, and continue through 2024.
The Department's Chief Evaluation Office conducted an
implementation evaluation of the initial demonstration grantees, which
it has since made available on its website and, in partnership with the
Employment and Training Administration (ETA), shared broadly through
webinars and conferences.\4\ The Department also continues to provide
technical assistance, informed by its grants and the implementation
evaluation, to share promising practices and information to assist
States and local communities respond to the opioid epidemic and its
impact on the workforce. This technical assistance includes an online
community of practice, digital case studies from the evaluation, and a
series of webinars from June--August 2022 on topics related to the role
of the workforce system in serving individuals with substance use
disorders, such as opioid use disorder in construction, recovery-
friendly workplaces, peer recovery support careers, and training
toolkits for serving individuals with substance use disorder.
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\4\ https://www.dol.gov/sites/dolgov/files/OASP/evaluation/pdf/
NHE%20Opioid%20Final%20Report.pdf.
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Finally, the fiscal year 2023 President's Budget includes continued
support for the areas listed above. It also includes resources within
ETA for workforce training programs throughout the country, including a
set-aside for workers in the Appalachian and the Lower Mississippi
regions. Job Corps administers the Trainee Employment Assistance
Program (TEAP) which includes counseling services and drug testing at
Job Corps Centers. Additionally, the Department requests $100,000,000
for economic revitalization and workforce training in communities
impacted by changes in the energy industry through the POWER+
Initiative. Expanding economic opportunities in these regions and
throughout the country is a key component of addressing the opioid
epidemic.
independent contractor rulemaking feedback
Question. Earlier this month, the Department's Wage and Hour
Division announced it would engage in rulemaking on whether a worker
may be considered an independent contractor, or an employee. The rule
the Department previously put together on this rule was delayed,
withdrawn, then ultimately reviewed and decided by the courts. As part
of its announcement, the Wage and Hour Division announced it would hold
two public forums to hear feedback directly from both employers and
workers. The public will also have an opportunity to provide comments
on the rule once it is published in the Federal Register. While it is
good the Department will consult with both employers and workers as it
considers a new rule, it is important ensure that the Department fully
engages with the small business owners and other employers that will be
directly impacted by this rule.
How does the Department plan to incorporate feedback from a wide
array of stakeholders, from small businesses to workers?
Answer. The Department has been engaging with a wide array of
stakeholders on this topic since the beginning of this Administration.
The Department worked with stakeholders to identify business owners and
their representatives, employers, workers, and advocates, among others,
to share their input about determining employee or independent
contractor status for purposes of minimum wage and overtime pay
protections under the Fair Labor Standards Act. We continued that
engagement in widely announced public forums to provide opportunities
for gathering additional input. During those forums, we heard from
employers, workers, business owners-- including small business owners--
advocates, freelance organizations, and others from across the country
who provided valuable information. The Department appreciates the
robust participation in these forums and took the views expressed
during this outreach into consideration when drafting the proposal.
On July 5, 2022, the Department transmitted a draft proposed rule
on Employee or Independent Contractor Classification Under the Fair
Labor Standards Act to the Office of Management and Budget (OMB) for
review. The public will have the opportunity to review and comment
after publication of any proposed rule in the Federal Register.
timeline for silica standard rulemaking
Question. The extraction, refining, and transportation of coal
generates significant amounts of coal dust, which contains silica.
While coal dust is hazardous to miners' health on its own, silica is
classed as a carcinogen and is substantially more dangerous. Excessive
exposure to silica has been linked to black lung, silicosis, and the
most lethal type of black lung, progressive massive fibrosis (PMF). As
you are aware, in 2020 the U.S. Department of Labor's Office of
Inspector General (OIG) produced a report that was critical of the Mine
Safety and Health Administration's (MSHA) inadequate efforts to
safeguard coal miners from crystalline silica exposure. That report
found MSHA needed to update its regulations to: lower the legal
exposure limit to silica, improve the ability of the agency to issue
citations and fines for excess exposure to silica, and increase
sampling protocols where were found to be too infrequent to protect
miners adequately. While it is good MSHA announced actions last week to
ramp up enforcement on silica exposure, more needs to be done.
Last year your office informed my team that a Notice of Proposed
Rulemaking on a Silica standard was scheduled for January 2022. It is
now June and we have yet to see that proposal. When do you anticipate
releasing the proposal?
Answer. We are working hard to publish a Notice of Proposed
Rulemaking (NPRM) as soon as possible and hope to issue one by the end
of the year.
Question. When do you anticipate finalizing that rule?
Answer. In order to issue a final rule to better protect miners
from health hazards related to exposure to respirable crystalline
silica, MSHA must first complete its work and publish the proposed
rule. At the close of the comment period, MSHA will go through all the
necessary steps in the regulatory process--including reviewing and
responding to stakeholder comments and feedback and holding public
hearings--and include a projected publication date for the final rule
in an appropriate future Unified Agenda of Regulatory and Deregulatory
Actions.
Assistant Secretary Williamson and MSHA are laser focused on the
rise in cases of pneumoconiosis, including in parts of Appalachia where
existing coal seams are thinner and layered in rock containing quartz.
We know from investigative reporting by NPR and PBS, the National
Institute for Occupational Safety and Health's (NIOSH) Coal Workers'
Health Surveillance Program, and the works of other health experts that
younger and less experienced miners are increasingly developing some
form of pneumoconiosis, including the most severe forms of the disease.
A growing number of experts and research point to respirable
crystalline silica as the likely cause. Many metal and nonmetal miners
also work in potentially dangerous mining environments where taking
proper precautions to limit silica exposures are equally as important.
In addition to working on an improved health rule, MSHA is taking
action now under our existing authorities to better protect coal and
metal and nonmetal miners' health by limiting their exposure to
respirable crystalline silica. MSHA recently announced a silica
enforcement initiative that has four primary components: inspections,
sampling, compliance assistance, and miners' rights. Working together
with the mining industry, MSHA can take important steps to better
protect miners from overexposures to toxic levels of respirable dust
now while the Agency continues to develop a new mandatory health
standard for respirable crystalline silica. This effort will result in
more inspections and sampling at mines with repeated silica
overexposures and for occupations at coal and metal and nonmetal mines
known to have a high risk of potential silica overexposures.
Significant elements in the 2023 President's Budget request support
for the silica enforcement initiative and the respirable crystalline
silica rulemaking. The resources needed to support these efforts span
multiple program areas and are presented relative to the 2022 Operating
Plan:
--In recent years, MSHA has focused its compliance and technical
assistance efforts on reducing accidents caused by powered
haulage equipment, which continue to be a leading cause of
mining fatalities and serious injuries, and MSHA has increased
the agency's emphasis on reducing health hazards in mines, such
as respirable coal dust in coal mines, silica/quartz in mines,
diesel particulate matter, and noise. The President's Budget
requests an additional $34,046,000 in the Mine Safety and
Enforcement program area for an additional 150 full time
equivalents to continue the increase in health sampling and
enforcement activities to ensure that miners' overexposure to
respirable dust, quartz/silica, noise, and other health hazards
are addressed by mine operators.
--Compliance assistance, particularly to small operators, is provided
through MSHA's Educational Policy and Development (EPD) program
area. The Educational Field and Small Mine Services in EPD
assists in the development or improvement of the health and
safety programs of mine operators and contractors in the mining
community. MSHA anticipates compliance assistance will play a
key role in aiding operators who reach out for assistance in
reducing silica overexposures. The President's Budget requests
an additional $163,000 for training and compliance assistance.
--The President's Budget includes an increase of $2,545,000 to the
Office of Standards, Variances, and Regulations to support
rulemaking activities, including publishing a proposed rule to
protect miners' health from exposure to respirable crystalline
silica. The proposal will address the control of respirable
silica and the limit of permissible exposure. MSHA will
consider the data and information gathered through working with
NIOSH and mining stakeholders over the years and through a
recent request for information, as well as any relevant
information contained in the Occupational Safety and Health
Administration's fiscal year 2016 final rule on respirable
crystalline silica. Once the proposed rule is published, MSHA
will hold public hearings to ensure that it receives feedback
from miners and mine stakeholders across the U.S. As it
develops the final rule, MSHA will review all public comments
received through the comment period.
--The Technical Support program area also plays a significant role in
the silica initiative and the future implementation of the
silica rule. The President's Budget requests a $2,315,000
increase to the Technical Support budget activity to increase
laboratory capacities to allow MSHA to handle an increase in
sampling due to the silica enforcement initiative and the
respirable crystalline silica health standard under
development.
black lung disability benefits
Question. Black lung is a terrible disease caused by inhaling coal
dust and mainly affects coal miners. After years of dedication to
providing our Nation with energy, America's coal miners continue to
face the devastation of black lung disease. We are continuing to see a
growing number of cases of black lung--particularly in younger miners
who have spent less time working in the mines. Today, more than 25,000
coal miners and their dependents rely on the Black Lung Disability
Trust Fund to pay for critical medical treatments and basic expenses.
The Black Lung Disability Trust Fund is financed primarily by an excise
tax on coal produced and sold domestically. In both 2019 and 2020,
Congress passed 1 year extensions to ensure revenue streams for the
Trust Fund did not plummet. Unfortunately, the 2021 rates expired on
December 31, 2021, putting an indebted Trust Fund in a precarious
financial situation.
While Congress continues to work to find a path forward for Senator
Manchin's bill that would extend the 2021 excise tax rate for 10 years,
can we continue to count on the Department to protect and maintain
these critical benefits?
Answer. Yes, you and all miners and survivors who receive benefits
under the Black Lung Benefits Act (BLBA) can continue to count on the
Department of Labor to protect and maintain these critical benefits.
The Department of Labor does not want miners already burdened with
black lung disease or their families to feel uncertain about the
future. The Department has made it clear that miners and their
survivors will continue to receive their Federal black lung benefits.
The Department is working hard to make sure that mining communities
understand that the U.S. Treasury is required by law to provide the
Trust Fund with sufficient money to pay all benefits due regardless of
tax revenues.
However, as you are aware, Congress intended that Federal black
lung benefits primarily be paid by responsible coal mine operators, not
the U.S. taxpayer. When coal excise tax shortfalls require the Federal
black lung program to borrow from the U.S. Treasury to cover the cost
of benefits, taxpayers are footing the bill, not the coal mining
industry. Thus, the Department applauds Congress for permanently
reinstating the coal excise tax rates of $1.10 per ton of underground-
mined coal and 55 cents for surface-mined coal in the Inflation
Reduction Act of 2022. Mining communities can rest assured that their
benefits are not in jeopardy.
______
Questions Submitted by Senator Roy Blunt
workforce opportunity for rural communities grants
Question. The fiscal year 2018 LHHS bill began a $30 million set-
aside from the Dislocated Worker Assistance National Reserve to provide
employment assistance and workforce training to workers in the
Appalachian and Lower Mississippi Delta regions, which increased to $45
million in fiscal year 2022 and now includes the Northern Border
Regional Commission. The fiscal year 2023 budget request includes $35
million, and does not include the Northern Border Regional Commission
in the set- aside. There have been three rounds of WORC grants awarded
thus far; Missouri received more than $3.5 million in funding in the
second grant round, but did not receive any funding in the first or
third rounds.
What is the application process for these grants, and how important
is geographic diversity when making final award determinations?
Answer. As in all competitive grants, the merit review and
selection process for the Workforce Opportunity for Rural Communities
(WORC) grant initiative is published within each year's Funding
Opportunity Announcement (FOA). A technical merit review panel
carefully evaluates applications against the selection criteria to
determine the merit of applications. These criteria are based on the
policy goals, priorities, and emphases set forth in the FOA. The final
scores serve as the primary basis for selection of applications for
funding, and the Grant Officer reserves the right to take into
consideration other relevant factors when applicable, such as the
geographic distribution of funds. The Employment and Training
Administration (ETA) notes that each year we receive many high-quality,
high-scoring applications, making the WORC funding opportunity highly
competitive. Available Federal funding determines the number of grants
that can be awarded each year under the WORC competition. Complete
information regarding the WORC grant initiative, including awards
funded in Rounds 1--3, is available at https://www.dol.gov/agencies/
eta/dislocated-workers/grants/workforce-opportunity.\5\
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\5\ https://www.dol.gov/agencies/eta/dislocated-workers/grants/
workforce-opportunity.
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The FOA for WORC contains all the information and links to forms
needed to apply for grant funding and is published at www.Grants.gov
and https://www.doleta.gov/grants/find_grants.cfm.\6\ At each of the
links below for WORC Rounds 1--3, see the ``Related Documents'' tab for
the published FOA:
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\6\ https://www.doleta.gov/grants/find_grants.cfm.
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--WORC 1: FOA-ETA-19-08 \7\
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\7\ https://www.grants.gov/web/grants/view-
opportunity.html?oppId=315986.
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--WORC 2: FOA-ETA-20-04 \8\
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\8\ https://www.grants.gov/web/grants/view-
opportunity.html?oppId=326678.
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--WORC 3: FOA-ETA-21-08 \9\
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\9\ https://www.grants.gov/web/grants/view-
opportunity.html?oppId=333025.
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ETA also notes that the fiscal year 2023 Budget baseline and
discretionary funding decisions were finalized before Congress
completed its work on fiscal year 2022 appropriations in March,
including the addition of the Northern Border Region as an eligible
region for WORC grants. The Administration has committed to working
with Congress going forward to adjust recommendations for fiscal year
2023 appropriations where relevant.
Question. Is the Department working with the Delta Regional
Authority to provide technical assistance to ensure that entities
applying have the necessary information and assistance to write the
best grant application possible?
Answer. Yes. ETA supports the Delta Regional Authority (DRA) and
potential applicants in several ways. First, ETA transfers funding each
year to DRA in order to host direct technical assistance sessions for
potential applicants, which includes help with understanding the
requirements of the WORC program and how applicants can best develop
applications that can be competitive for funding. While DRA plans and
hosts these events, ETA provides support for specific issue areas
including grant requirements and performance reporting. ETA regional
offices regularly share potential grant opportunities with local
networks and provide technical assistance to grantees during the period
of performance.
Second, ETA--in partnership with both the Appalachian Regional
Commission (ARC) and DRA--hosts an annual web-based technical
assistance session that covers the requirements of the WORC program for
that particular funding year and discusses the application
requirements. For the 4th round of WORC this technical assistance
webinar was held on May 23 for eligible applicants from both the
Appalachian and Delta regions.
independent contractor proposed rule
Question. The Department recently announced it is developing a new
proposed independent contractor rule on determining employee or
independent contractor status under the Fair Labor Standards Act. The
Department held forums in June to hear from stakeholders from those who
might be affected my employee or independent contractor classification.
We need to ensure that our small businesses and relevant stakeholder
industries have a seat at the table as the Department goes through the
rulemaking process.
What are your plans to ensure that a new rulemaking won't adversely
impact small businesses or the broader economy?
Answer. The Department has been engaging with a wide array of
stakeholders on this topic since the beginning of this Administration.
The Department worked with stakeholders to identify business owners and
their representatives, employers, workers, and advocates, among others,
to share their input about determining employee or independent
contractor status for purposes of minimum wage and overtime pay
protections under the Fair Labor Standards Act. We continued that
engagement in widely announced public forums to provide opportunities
for gathering additional input. During those forums, we heard from
employers, workers, business owners--including small business owners--
advocates, freelance organizations, and others from across the country
who provided valuable information. The Department appreciates the
robust participation in these forums and took the views expressed
during this outreach into consideration when drafting the proposal.
On July 5, 2022, the Department transmitted a draft proposed rule
on Employee or Independent Contractor Classification Under the Fair
Labor Standards Act to OMB for review. The public will have the
opportunity to review and comment after publication of any proposed
rule in the Federal Register.
Question. What is your timeframe with respect to this rulemaking?
Answer. On July 5, 2022, the Department transmitted a draft
proposed rule on Employee or Independent Contractor Classification
Under the Fair Labor Standards Act to OMB for review. The public will
have the opportunity to review and comment after publication of any
proposed rule in the Federal Register.
proposed prohibited transaction exemption changes
Question. I am concerned about the proposed regulations to change
the procedures governing prohibited transaction exemptions. The
proposal includes eliminating the ability to discuss an exemption with
the Department prior to officially requesting one, as well as
redefining ``independent fiduciary'' as someone who has never
previously received funds, and will not receive funds, for performing
independent fiduciary services. As part of the creation of the
exemption process, Congress explicitly required that any exemption
granted must provide a benefit to all parties involved.
Will these proposed regulatory changes effectively eliminate the
exemption process?
Answer. On March 15, 2022, the Department published a proposed rule
that, if adopted, would supersede the existing procedure governing the
filing and processing of applications for administrative exemptions
from the prohibited transaction provisions of the Employee Retirement
Income Security Act of 1974 (ERISA), the Internal Revenue Code of 1986,
and the Federal Employees' Retirement System Act of 1986 (FERSA). The
rule proposes to update the Department's prohibited transaction
exemption procedures, which the Department updated most recently in
2011.
The proposed rule would create more clarity, certainty, and
transparency around the exemption application process. In doing so, it
would promote the Department's prompt and efficient consideration of
all exemption applications by, among other things: (1) clarifying the
types of information and documentation required for a complete
application; (2) revising the definitions of a qualified independent
fiduciary and qualified independent appraiser in order to ensure their
independence; (3) clarifying the content of specific reports and
documents applicants must submit in order to ensure that the Department
receives sufficient information to make the requisite findings under
ERISA Section 408(a) to issue an exemption; (4) updating various timing
requirements to ensure clarity in the application review process; (5)
specifying items that are included in the administrative record for an
application and when the administrative record is available for public
inspection; and (6) expanding opportunities for applicants to submit
information to the Department electronically.
The public comment period for the rule has closed, and the
Department is carefully reviewing the 29 comments that it received. The
Department will use these comments to inform any revisions it makes to
the proposal at the final rulemaking stage.
______
Questions Submitted by Senator Mike Braun
coastwide labor contract negotiations
Question. Secretary Walsh, the International Longshore and
Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) are
currently negotiating a new coastwide labor contract that will cover
all 29 West Coast ports. The current contract is set to expire on July
1. As we have seen from previous negotiations, it is unlikely that the
parties will reach a new agreement before July. Previous negotiations
have witnessed significant disruption issues which have negatively
impacted the economy.
What is the administration doing to ensure that the parties remain
at the table, negotiate in good faith and don't engage in any kind of
disruptive activity?
Answer. We need to acknowledge that collective bargaining is a
process in which the parties to the negotiation work out the terms and
conditions of employment. In this case, the best role for government is
to encourage the parties to commit themselves fully to collective
bargaining that reaches an agreement. That's what this Administration
is doing.
As the Administration's point person on the negotiation, I have
been in touch with the parties for months and have met with and talked
to the various players--the ports, retailers, shippers, trucking
companies, and unions--to get a sense of the issues relating to the
supply chain.
As you note, the current collective bargaining agreement expired on
July 1, but the parties are still at the table making progress and have
expressed their commitment to the bargaining process. In fact, on July
26, the ILWU and PMA announced that they had reached a tentative
agreement on terms for health benefits--a promising step. Meanwhile,
cargo is still moving through the ports, and in fact, the Port of LA
reached another record in June.
The fact that the parties are still bargaining past the expiration
date of their contract is not unusual--in fact, it is typical for their
negotiations. I am in regular touch with the parties to support them in
this process, and we feel positive about the parties reaching an
agreement.
Question. With all of the ongoing supply chain challenges we are
facing, which is a significant cause of record inflation, how concerned
is the administration about the potential for disruptions to cause
further supply chain challenges? [Question background]
Answer. The administration is very attuned to the potential impact
of these major negotiations on supply chains. The port negotiations are
not going to solve our supply chain challenges, which pre-date and are
far larger than these negotiations. That said, we are working to
support the parties in this collective bargaining process to help them
reach an agreement, and we feel positive about the parties reaching an
agreement.
rulemaking for determining independent contractors
Question. Independent Contractor Rules under the Fair Labor
Standards Act (FLSA)--Recently, the Labor Department announced its
intention to overturn workable, modernized rule that clarify whether
certain workers are independent contractors or employees. Under the
current rules, the Labor Department make the independent contractor vs.
employee determination based on two main factors: the nature and degree
of the worker's control over the work and the worker's opportunity for
profit or loss based on initiative or investment. I've heard from many
constituents that they like the flexibility of being an independent
contractor.
How does the Department plan to address this issue? Will you impose
the so- called ``ABC Test'' which failed so spectacularly in
California?
Answer. On July 5, 2022, the Department transmitted a draft
proposed rule on Employee or Independent Contractor Classification
Under the Fair Labor Standards Act to the Office of Management and
Budget (OMB) for review. The public will have the opportunity to review
and comment after publication of any proposed rule.
Because the Department is currently engaged in rulemaking and the
proposed rule has been submitted to OMB for review, the Department
cannot discuss the contents of the proposed rule at this time.
Question. Do you believe the only way to implement an ``ABC'' style
test would be through regulation?
Answer. The Administration is committed to ending the abusive
practice of misclassifying employees as independent contractors, which
deprives these workers of critical protections and benefits. In
addition to including funding in the Budget for stronger enforcement,
the Administration intends to work with the Congress to develop
comprehensive legislation to strengthen and extend protections against
misclassification across appropriate Federal statutes. The President
strongly endorses a comprehensive approach to ending the unlawful
practice of misclassification and holding violators accountable. He has
called on Congress to develop legislation to adopt the ABC test and
create substantive violations for misclassifying workers across
appropriate statutes, including the Fair Labor Standards Act and the
Family and Medical Leave Act.
the joint employer standard
Question. Joint Employer Standard under the FLSA--I have many small
business franchise owners in my state. They provide employment
opportunities to my constituents and serve the public in their
respective communities. These franchise owners need a clear and
workable joint employer standard. Businesses simply should not be
liable for other businesses out of their control. The Administration
has already begun to regulate on the issue of joint employment.
Can you describe for the Committee the Administration plans for
this area?
Answer. On July 30, 2021, the Wage and Hour Division (WHD) issued a
final rule rescinding the prior administration's Joint Employer Under
the Fair Labor Standards Act rule because it introduced an unduly
narrow standard that had been invalidated by a U.S. District Court for
the Southern District of New York. That rescission took effect on
October 5, 2021.
WHD continues to apply applicable caselaw for determining joint
employment under the FLSA. WHD pursues joint employer liability in
appropriate cases where an employment relationship exists between the
worker and the employer in order to ensure that workers receive the
wages that are owed to them.
white collar overtime salary threshold
Question. White Collar Overtime Salary Threshold--The Department
has begun taking comment on the minimum threshold at which an employee
is exempt from overtime protections. The Obama Administration issued a
rule on this threshold, but it was struck down by a Federal court. If
the Labor Department sets that threshold too high, I fear it could
hinder employers seeking to fill middle-management positions.
As you move forward with these new regulations, how will you
determine where the threshold should be?
Answer. The Fair Labor Standards Act (FLSA) exempts from overtime
and minimum wage pay protections bona fide executive, administrative,
and professional employees who meet certain requirements, including a
salary level test. These exemptions are often called the ``white-
collar'' exemptions. The current salary threshold is $684 per week, the
equivalent of an annual salary of $35,568.
The Department has committed to updating the salary level more
frequently, and the Department of Labor's Wage and Hour Division
previously announced that it plans to update the regulations that
implement the FLSA's minimum wage and overtime exemptions for bona fide
executive, administrative, and professional employees.
This spring, the Department held a series of listening sessions
across the country to hear diverse views of participants on possible
revisions to the regulations, as we did prior to issuing proposed
updates to these regulations in the past two administrations. This
series of listening sessions is important as we review the white-collar
exemption regulations. At this time, no proposed rule has been issued.
Once a proposed rule is published in the Federal Register, there will
be a notice and comment period allowing all interested parties an
opportunity to review the proposal and provide formal written comments.
employer injury and illness data
Question. The Occupational Safety & Health Administration has
announced plans to force employers to submit injury and illness data to
OSHA's Washington headquarters. OSHA plans to then publicize the data.
Obviously, this could result in breach of confidentiality of workers'
personal health information.
What procedures are you planning to ensure that this will not
occur? Will you take measures to ensure employers' confidential
information will not be released?
Answer. OSHA has preliminarily determined that the proposed data
collection would adequately protect information that reasonably
identifies individuals directly. For example, OSHA would not require
employers to submit information from the recordkeeping forms that
directly identifies an employee, such as an employee's name or Social
Security Number. Further, OSHA plans to use the latest automated
information technology to detect and remove information that reasonably
identifies individuals directly before submitted information is posted
online. This privacy scrubbing technology is capable of de-identifying
certain information that reasonably identifies individuals directly
(such as name, phone number, email address, etc.) that may be
inadvertently submitted by employers to the system.
OSHA does not intend to release any confidential employer
information. Similar to current electronic submission requirements, the
proposed rule would not require employers to submit their confidential
information to OSHA.
Question. Further, what usefulness will this information have to
anyone? Is the Department's real goal to give this information to labor
unions who will use this data to access workers' private information,
foster support for their organizing efforts, and/or pressure employers
in negotiations?
Answer. OSHA intends to use the injury/illness case-specific data:
--To support OSHA's statutory directive to ``assure so far as
possible every working man and woman in the Nation safe and
healthful working conditions and to preserve our human
resources'' (29 U.S.C. 651(b)) ``by providing for appropriate
reporting procedures with respect to occupational safety and
health which procedures will help achieve the objectives of
this Act and accurately describe the nature of the occupational
safety and health problem'' (29 U.S.C. 651(b)(12)).
--To help identify workplaces where workers are most at risk from
specific hazards in order to assist OSHA in better targeting
enforcement and compliance assistance resources.
--To provide information that supports evaluation of OSHA's existing
programs and development of new programs.
--To make information available to all of the stakeholders in
workplace health and safety, including employers, workers and
prospective workers, customers and prospective customers,
occupational safety and health professionals, and researchers
so that they can better understand the nature of injuries and
illnesses within industries, identify solutions for preventing
these injuries, and make more informed decisions.
mental health parity requirement enforcement
Question. DOL has championed civil monetary penalties to enforce
mental health parity requirements. Unfortunately, employers are
reporting that compliance guidance is lacking in this area.
Mr. Secretary, will you commit to providing adequate guidance
before assessing penalties upon employers?
Answer. DOL, along with the Departments of Health and Human
Services and the Treasury (together, the Departments), has issued
multiple rounds of guidance for group health plans, health insurance
issuers, and other stakeholders to facilitate the implementation and
enforcement of the Mental Health Parity and Addiction Equity Act of
2008 (MHPAEA), including 15 sets of FAQs with 96 questions, 7
enforcement fact sheets, 6 compliance assistance tools and templates, 6
reports to Congress, 6 press releases, and 7 publications. In addition,
the Departments regularly conduct outreach initiatives to improve the
understanding of MHPAEA among stakeholders, state regulators, and
others, through annual webcasts, in-person seminars, and nationwide
compliance assistance events. In addition to these initiatives, DOL
provides informal compliance assistance to stakeholders on an ongoing
basis, regularly assisting plans, issuers, and other stakeholders who
contact DOL with compliance questions.
As part of the Departments' ongoing efforts regarding mental health
and substance use disorder parity, DOL maintains a compliance program
guidance document entitled the MHPAEA Self-Compliance Tool, which is
intended to help plans and issuers, state regulators, and other parties
comply with MHPAEA. Section 13001(a) of the 21st Century Cures Act
added section 2726(a)(6) of the Public Health Service Act, which
directs the Departments to provide a publicly available compliance
program guidance document that is updated every 2 years, and the
Department has used its MHPAEA Self-Compliance Tool as the mechanism to
fulfill this requirement. The most recent MHPAEA Self-Compliance Tool,
issued in 2020, includes a process for conducting non-quantitative
treatment limitations (NQTL) comparative analyses, a list of the types
of documents and information that a plan or issuer should have
available to support its analyses, and illustrations of specific fact
patterns to aid in compliance.
Moreover, the Departments issue subregulatory guidance on an
ongoing basis to ensure that the regulated community has the guidance
it needs to comply with MHPAEA. Most recently, on April 2, 2021, the
Departments issued FAQs about Mental Health and Substance Use Disorder
Parity Implementation and the Consolidated Appropriations Act, 2021
Part 45 (FAQs Part 45) to provide guidance on the amendments to MHPAEA
made by the Consolidated Appropriations Act, 2021 (CAA) and to promote
compliance by plans and issuers. FAQs Part 45 describes the information
that must be included in a sufficient NQTL comparative analysis, and
notes that a comparative analysis that consists of conclusory or
generalized statements, without specific supporting evidence and
detailed explanations, or the production of a large volume of documents
without a clear explanation of how and why each document is relevant to
the comparative analysis, is insufficient. The FAQs also provide
guidance as to the types of documents that plans and issuers should be
prepared to make available to support the analysis and conclusions
reached in their comparative analyses.
In addition to FAQs Part 45, the Departments issued the 2022 MHPAEA
Report to Congress in January 2022, highlighting notable compliance
assistance efforts, including stakeholder outreach, webinars, and
guidance for the regulated community. The Departments are working to
issue another Report to Congress as required under Section 203 of Title
II of Division BB of the CAA on enforcement efforts related to NQTL
comparative analyses. Additionally, the Employee Benefits Security
Administration expects to update its MHPAEA Self-Compliance Tool again
in 2022.
As explained in the 2022 MHPAEA Report to Congress, the
Departments' enforcement efforts are and will continue to be informed
by stakeholder feedback. Accordingly, in the Spring 2022 Unified
Regulatory Agenda, the Departments announced their intent to issue
notice and comment rulemaking to consider what amendments to MHPAEA's
implementing regulations are warranted, in light of their experience
enforcing the law as well as the subsequent amendments made to MHPAEA.
The Departments look forward to additional stakeholder feedback on
MHPAEA through comments received in response to this future rulemaking.
tree care industry osha standards
Question. Many of my constituents in the Tree Care Industry are
eager to see OSHA issue a standard that clarifies and codifies safe
work practices for tree care operations. My understanding is the
Federal Government currently regulates the tree care industry with a
mishmash of standards intended for other industries and this has
created confusion for enforcement officers, tree care companies and
clients and workers. The industry has been pushing OSHA to address the
problem for more than two decades. Some States have acted and issued
tree care specific standards, but OSHA has been slow to do so as it
pursues other priorities, most of which do not enjoy the same level of
support. The Fall 2021 regulatory agenda listed June as the target date
for a proposed standard.
Will OSHA meet this target date and if not, when do you anticipate
OSHA will issue the proposed standard?
Answer. OSHA's standard-setting process is a long process that
includes a multitude of procedural and legal requirements, as well as
OSHA's evidentiary requirements and public participation. OSHA began
working on a Tree Care Operations standard in 2008, with the
publication of an Advanced Notice of Proposed Rulemaking (ANPRM). This
document provided much background and gave stakeholders the opportunity
to answer questions on work procedures, costs, and their experience
with safety and health in the tree care industry. In 2016, OSHA
continued with the rulemaking process and held a stakeholder meeting.
In May 2020, OSHA completed the Small Business Advocacy Review (SBAR)
Panel, a required step to obtain early input from small business
representatives. These phases are crucial for OSHA to develop a
complete and robust standard to protect all employees performing tree
care. Transcripts and reports from the previous phases of rulemaking
can be found on the OSHA website: Tree Care Operations Rulemaking.\10\
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\10\ https://www.osha.gov/tree-care/rulemaking.
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Due to pressing nature of the COVID-19 pandemic, since the
beginning of this Administration, OSHA has focused its attention on
COVID-19 Healthcare rulemaking--in addition to Heat Illness Prevention
rulemaking. As a result, OSHA will not meet the target date of June
2022 for the development of a rule for Tree Care Operations. OSHA is
reevaluating the timeframe for rulemaking and anticipates publishing a
proposed rule for Tree Care Operations in fiscal year 2023. The
rulemaking team participates in monthly American National Standards for
Arboricultural Operations--Safety Requirements (ANSI Z133) meetings
with the tree care industry and has held several meetings with the Tree
Care Industry Association (TCIA) providing updates as appropriate. OSHA
also provides robust guidance for the industry on its Tree Care
Industry Safety and Health Topics Page.\11\ Tree Care Operations
rulemaking is a priority, and the Agency is consistently working
towards a published proposed rule.
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\11\ https://www.osha.gov/tree-care.
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SUBCOMMITTEE RECESS
Senator Murray. This subcommittee is adjourned.
[Whereupon, at 10:54 a.m., Wednesday, June 15, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]