[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] HEARING ON EXAMINING THE POLICIES AND PRIORITIES OF THE U.S. DEPARTMENT OF LABOR ======================================================================= HEARING before the COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ HEARING HELD IN WASHINGTON, DC, MAY 1, 2019 __________ Serial No. 116-20 __________ Printed for the use of the Committee on Education and Labor [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: www.govinfo.gov or Committee address: https://edlabor.house.gov _________ U.S. GOVERNMENT PUBLISHING OFFICE 36-595 WASHINGTON : 2020 COMMITTEE ON EDUCATION AND LABOR ROBERT C. ``BOBBY'' SCOTT, Virginia, Chairman Susan A. Davis, California Virginia Foxx, North Carolina, Raul M. Grijalva, Arizona Ranking Member Joe Courtney, Connecticut David P. Roe, Tennessee Marcia L. Fudge, Ohio Glenn Thompson, Pennsylvania Gregorio Kilili Camacho Sablan, Tim Walberg, Michigan Northern Mariana Islands Brett Guthrie, Kentucky Frederica S. Wilson, Florida Bradley Byrne, Alabama Suzanne Bonamici, Oregon Glenn Grothman, Wisconsin Mark Takano, California Elise M. Stefanik, New York Alma S. Adams, North Carolina Rick W. Allen, Georgia Mark DeSaulnier, California Francis Rooney, Florida Donald Norcross, New Jersey Lloyd Smucker, Pennsylvania Pramila Jayapal, Washington Jim Banks, Indiana Joseph D. Morelle, New York Mark Walker, North Carolina Susan Wild, Pennsylvania James Comer, Kentucky Josh Harder, California Ben Cline, Virginia Lucy McBath, Georgia Russ Fulcher, Idaho Kim Schrier, Washington Van Taylor, Texas Lauren Underwood, Illinois Steve Watkins, Kansas Jahana Hayes, Connecticut Ron Wright, Texas Donna E. Shalala, Florida Daniel Meuser, Pennsylvania Andy Levin, Michigan* William R. Timmons, IV, South Ilhan Omar, Minnesota Carolina David J. Trone, Maryland Dusty Johnson, South Dakota Haley M. Stevens, Michigan Susie Lee, Nevada Lori Trahan, Massachusetts Joaquin Castro, Texas * Vice-Chair Veronique Pluviose, Staff Director Brandon Renz, Minority Staff Director ------ C O N T E N T S ---------- Page Hearing held on May 1, 2019...................................... 1 Statement of Members: Scott, Hon. Robert C. ``Bobby'', Chairman, Committee on Education and Labor........................................ 1 Prepared statement of.................................... 5 Foxx, Hon. Virginia, Ranking Member, Committee on Education and Labor.................................................. 7 Prepared statement of.................................... 8 Statement of Witness: Acosta, Hon. Alexander, Secretary, U.S. Department of Labor.. 9 Prepared statement of.................................... 10 Additional Submissions: Jayapal, Hon. Pramila, a Representative in Congress from the State of Washington: Federal Child Law Hazardous Occupations Order No. 7 (H07) and Power-Driven Patient Lift Assist Devices: Revisions to Law................................................. 63 Sablan, Hon. Gregorio Kilili Camacho, a Representative in Congress from the Northern Mariana Islands: Letter dated September 13, 2018.......................... 39 Letter dated December 14, 2018 from the U.S. Department of Labor............................................... 42 Chairman Scott: Report: How CBO and JCT Analyzed Coverage Effects of New Rules for Association Health Plans and Short-Term...... 107 Questions submitted for the record by: Adams, Hon. Alma S., a Representative in Congress from the State of North Carolina............................ 139 Bonamici, Hon. Suzanne, a Representative in Congress from the State of Oregon.................................... 137 Castro, Hon. Joaquin, a Representative in Congress from the State of Texas..................................... 147 Davis, Hon. Susan A., a Representative in Congress from the State of California................................ 135 Fulcher, Hon. Russ, a Representative in Congress from the State of Idaho......................................... 151 Grijalva Hon. Raul M., a Representative in Congress from the State of Arizona................................... 136 Harder, Hon. Josh, a Representative in Congress from the State of California.................................... 141 Hayes, Hon. Jahana, a Representative in Congress from the State of Connecticut................................... 143 Ms. Jayapal.............................................. 141 Lee, Hon. Susie, a Representative in Congress from the State of Nevada........................................ 146 McBath, Hon. Lucy, a Representative in Congress from the State of Georgia....................................... 142 Norcross, Hon. Donald, a Representative in Congress from the State of New Jersey................................ 140 Omar, Hon. Ilhan, a Representative in Congress from the State of Minnesota..................................... 145 Roe, Hon. David P., a Representative in Congress from the State of Tennessee..................................... 148 Rooney, Hon. Francis, a Representative in Congress from the State of Florida................................... 149 Mr. Sablan............................................... 136 Chairman Scott........................................... 133 Shalala, Hon. Donna E., a Representative in Congress from the State of Florida................................... 144 Stevens, Hon. Haley M., a Representative in Congress from the State of Michigan.................................. 146 Underwood, Hon. Lauren, a Representative in Congress from the State of Illinois.................................. 143 Walberg, Hon. Tim, a Representative in Congress from the State of Michigan...................................... 149 Secretary Acosta's response to questions submitted for the record 153 HEARING ON EXAMINING THE POLICIES AND PRIORITIES OF THE U.S. DEPARTMENT OF LABOR ---------- Wednesday, May 1, 2019 U.S. House of Representatives, Committee on Education and Labor, Washington, DC. ---------- The Committee met, pursuant to notice, at 10:16 a.m., in room 2175, Rayburn House Office Building, Hon. Robert C. ``Bobby'' Scott [Chairman of the Committee] presiding. Present: Representatives Scott, Davis, Courtney, Fudge, Sablan, Wilson, Bonamici, Takano, DeSaulnier, Norcross, Jayapal, Morelle, Wild, Harder, McBath, Schrier, Underwood, Hayes, Shalala, Levin, Omar, Trone, Stevens, Lee, Trahan; Foxx, Roe, Thompson, Walberg, Guthrie, Byrne, Grothman, Stefanik, Allen, Rooney, Smucker, Banks, Walker, Comer, Cline, Fulcher, Taylor, Watkins, Wright, Meuser, Timmons, and Johnson. Staff present: Alli, Tylease, Chief Clerk; Barab, Jordan, Senior Labor Policy Advisor; Brown, Nekea, Deputy Clerk; Brunner, Ilana, General Counsel--Health and Labor; Dailey, David, Senior Counsel; Hernandez, Itzel, Labor Policy Fellow; Hughes, Carrie, Director of Health and Human Services; Hovland, Eli, Staff Assistant; Lalle, Stephanie, Deputy Communications Director; Lee, Bertram, Policy Counsel; Lindsay, Andre, Staff Assistant; McClelland, Katie, Professional Staff; McDermott, Kevin, Senior Labor Policy Advisor; Miller, Richard, Director of Labor Policy; Moore, Max, Office Aide; Onwubiko, Udochi, Labor Policy Counsel; Pluviose, Veronique, Staff Director; Ronis, Carolyn, Civil Rights Counsel; Vassar, Banyon, Deputy Director of Information Technology; Walker, Katelyn, Counsel; West, Rachel, Senior Economic Policy Advisor; Yu, Cathy, Director of Labor Oversight; Artz, Cyrus, Minority Parliamentarian; Boughton, Marty, Minority Press Secretary; Butcher, Courtney, Minority Director of Coalitions and Member Services; Chougule, Akash, Minority Professional Staff Member; Green, Rob, Minority Director of Workforce Policy; Jones, Amy Raaf, Minority Director of Education and Human Resources Policy; Martin, John, Minority Workforce Policy Counsel; Martin, Sarah, Minority Professional Staff Member; Matesic, Hannah, Minority Director of Operations; McNabb, Kenney, Minority Communications Director; Middlebrooks, Jake, Minority Professional Staff Member; Murray, Alexis, Minority Professional Staff Member; Renz, Brandon, Minority Staff Director; Ridder, Ben, Minority Legislative Assistant; Schellin, Meredith, Minority Deputy Press Secretary and Digital Advisor; Thomas, Brad, Senior Education Policy Advisor; Wadyka, Heather, Minority Staff Assistant; and Williams, Lauren, Minority Professional Staff. Chairman Scott. We want to welcome everyone here today. I know the quorum is present. The Committee is meeting today to examine the policies and priorities of the U.S. Department of Labor. Pursuant to Committee Rule 7(c), opening statements are limited to the Chair and Ranking Member. This will allow us to hear from our witness sooner and provides all members with adequate time to ask questions. I now recognize myself for the purpose of making an opening statement. Mr. Secretary, before we begin, I want to express our profound sadness over the shooting that took place yesterday at the University of North Carolina in Charlotte. This is yet another tragic reminder of our responsibility to address the gun violence that impacts communities across the country. I also want to acknowledge the absence of our colleague, the gentlelady from North Carolina, Ms. Adams, who traveled home to be with her constituents in this difficult time. Mr. Secretary, I want to begin by thanking you for appearing before the Committee today. This hearing is an important opportunity to discuss the Department of Labor's budget request for Fiscal Year 2020 as well as the many other important issues under your jurisdiction. I am particularly interested in the bonding program that you mentioned earlier today in our discussion. It looks like a great program for both workers and business, we will hopefully have an opportunity to discuss it. As its mission statement makes clear, the Department of Labor's responsibility is to ``foster, promote, and develop the welfare of the wage earners, job-seekers, and retirees of the United States.'' Unfortunately, the proposed Fiscal Year 2020 budget for the department cuts programs and policies that are designed to serve this mission. The President's budget, which reduces the Department of Labor's funding by 10 percent or $1.2 billion, reflects less support for hardworking people who are struggling to get ahead. For example, our economy increasingly demands and rewards high- skilled employees, but the President's proposed budget falls hardest on work force development programs that provide workers with a path to financial security. For example, the Job Corps is cut 41 percent, and the Reentry Employment Opportunities Program, which provides a second chance to formerly incarcerated individuals, suffers a 16 percent cut. This budget also seeks to expand untested work force training programs at the expense of proven, high-quality registered apprenticeships. For example, the registered apprenticeship program has long offered generations of Americans work force training opportunities that provide good wages and benefits and a pathway to a rewarding career. However, the department's industry-recognized apprenticeship programs are not accountable to quality standards that protect the interests of workers and taxpayers. This has the effect of undermining work force training programs that are now recognized anywhere in the country, from Virginia to Washington State, and can reshape the future of individuals, their families, and their communities. The Occupational Safety and Health Administration, OSHA, which is responsible for protecting Americans' right to safe working conditions, is also in desperate need of increased funding. Nearly 3 million workers experienced a serious workplace injury or illness in 2017, and more than 5,000 workers were killed on the job. At current staffing levels, OSHA only has enough resources to inspect workplaces once every 165 years. There are now fewer OSHA inspectors today than at any time in its 49-year history, yet the President's budget allocates no additional funding to improve workplace safety. Compared to the massive tax cut recently given to corporations and the top 1 percent, the administration's refusal to support workers and middle-class families is a disappointment to hardworking people across the country. For example, the Department of Labor has opposed two of the most significant efforts to immediately raise wages and improve living conditions for millions of American workers. After 10 years with no increase, the Federal minimum wage has lost more than 15 percent of its value, and today there is no place in America where a full-time minimum wage worker making $7.25 an hour can afford even a modest two-bedroom apartment. But the administration's only response has been to criticize our efforts to gradually raise the minimum wage without offering any alternative. A wide body of rigorous research and the experience of States and cities across the country demonstrates that gradually raising the minimum wage to $15 an hour will be good for workers, good for businesses, and good for the economy. I hope the administration will follow the evidence and join our effort to give millions of low-wage workers a raise that is long overdue. The department has not only opposed raises for low-wage workers, it has undermined raises for middle-class workers as well. Under your leadership, the department abandoned the Obama-era overtime rule that would have expanded overtime pay protections to an estimated 4.2 million salaried workers and strengthened protections for an additional 8.9 million salaried workers. In its place, the administration is offering a new overtime proposal that is better than nothing but leaves behind more than 8 million workers and erases the department's obligation to update the rule to keep up with inflation. That failure will deny even more workers overtime protections in the years to come. Compared to the Obama overtime rule, the administration's proposal will cut middle-class workers' wages every year by $1.2 billion. The department's record on workplace safety, workers' right to organize, and workers' access to affordable healthcare has also undermined the health and well-being of the American public. OSHA has moved to weaken workplace safety standards, including protections against exposure to beryllium, a metal that can cause cancer and severe lung disease. This is the first time in OSHA history that protections against known carcinogens have been actually rolled back. It has removed standards covering toxic chemicals and combustible dust from the regulatory agenda, while relegating to the back burner standards to protect healthcare workers from exposure to infectious diseases such as Ebola, pandemic flu, and MRSA. After decades of declining rates of black lung disease, the scourge has returned at epidemic levels. Experts point to silica exposure as the culprit. But while we have developed new technologies to monitor exposures, the Mine Safety and Health Administration, charged with safeguarding miners, is failing to act. Meanwhile, the Black Lung Disability Trust Fund, which provides most of the funding for miners' black lung benefits, is going broke. The administration's budget fails to extend the excise tax on coal, which is needed to ensure the solvency of that fund. That tax expired December 31st of last year. And the department has played a central role in the administration's sabotage of the Affordable Care Act by expanding the use of junk healthcare plans. These plans not only put participants at risk of losing key consumer protections, they increase costs for all Americans who are not buying such plans by diverting younger, healthy Americans away from the general insurance pool, increasing the cost for everybody else. The department has repeatedly attempted to erase the contraceptive coverage benefit that an estimated 62 million women currently enjoy under the Affordable Care Act. Despite failing to withstand multiple legal challenges, the department has attempted to implement rules that would leave many female employees, students, and their dependents with no insurance option for contraceptive coverage. Finally, last August the department's Office of Federal Contract Compliance Programs, the OFCCP, quietly issued a directive that would expand the right of Federal contractors to justify employment-based discrimination based on their religiously held beliefs. Directive 2018-03 grossly undermines Executive Order 11246, which was issued by President Lyndon Johnson, to ensure that Federal contractors are not discriminating on the basis of race, color, religion, national origin, gender, or other factors, and in fact the Johnson directive required businesses to have affirmative action initiatives to ensure that equal opportunity existed. The department's indefensible directive turns the Executive Order on its head to provide Federal contractors with a religious- based defense to allow them to discriminate in employment with Federal taxpayers' money. Mr. Secretary, for too long we have acted as though the growing economy means that what is good for the economy is inherently good for all workers. But evidence and experience demonstrate that benefits of economic growth are not being shared by all workers and their families. Even as the stock market hits record highs, one in nine workers is paid a wage that leaves them in poverty, even when working full-time and year-round. More than four in 10 American households still cannot cover a $400 emergency medical bill. Four in five workers are still living paycheck to paycheck. These numbers are not cause for celebration. They are cause for action to address the inequality that continues to plague workers, families, and communities across the country. We must recognize that what is good for workers is good for the economy, not the other way around. In other words, a really strong economy exists only when everyone is succeeding. Mr. Secretary, I look forward to the opportunity to discuss the important issues in your department. And I now yield to the Ranking Member for the purpose of an opening statement. [The statement by Chairman Scott follows:] Prepared Statement of Hon. Robert C. ``Bobby'' Scott, Chairman, Committee on Education and Labor Mr. Secretary, I want to begin by thanking you for appearing before this Committee today. This hearing is an opportunity to discuss the Department of Labor's budget request for Fiscal Year 2020 as well as the many important issues under your jurisdiction. As its mission statement makes clear, the Department of Labor's responsibility is to ``foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States.'' Unfortunately, the proposed Fiscal Year 2020 budget for the Department of Labor cuts programs and policies that are designed to serve this mission. The President's budget proposal, which slashes the Department of Labor's funding by 10 percent, or $1.2 billion, reflects the Administration's lack of support for hardworking people who are struggling to get ahead. For example, our economy increasingly demands and rewards high- skilled employees, but the President's proposed budget cuts fall hardest on work force development programs that provide workers a path to financial security. Specifically, the Job Corps is cut by 41 percent and the Reentry Employment Opportunities Program, which provides a second chance to formerly incarcerated individuals, receives a 16 percent cut. This budget proposal also seeks to expand untested work force training programs at the expense of proven, high-quality apprenticeships. For example, the Registered Apprenticeship program has long offered generations of Americans work force training opportunities that provide good wages and benefits and a pathway to a rewarding career. However, the Department's new industry-recognized apprenticeship programs, or IRAPs, are not accountable to quality standards that protect the interests of workers and taxpayers. This has the effect of undermining work force training programs that are recognized anywhere in the country from Norfolk to Seattle and can reshape the future for individuals, their families, and their communities. The Occupational Safety and Health Administration, or OSHA--which is responsible for protecting Americans' right to safe working conditions--is also in desperate need of a funding increase. Nearly 3 million workers experienced a serious workplace injury or illness in 2017--and more than 5,000 workers were killed on the job. At current staffing levels, OSHA only has enough resources to inspect workplaces once every 165 years. There are now fewer OSHA inspectors today than at any time in its 49-year history. Yet, the president's budget allots no additional funding to improve workplace safety. When compared to the massive tax cut recently given to corporations and the wealthiest Americans, the Administration's refusal to invest in workers and middle-class families is an insult to hardworking people across the country. Regrettably, the priorities articulated in the Fiscal Year budget request are consistent with the Department's actions over the past two- and-a-half years. The Department of Labor has opposed two of the most significant efforts to immediately raise wages and improve the standard of living for millions of American workers. After nearly 10 years with no increase, the Federal minimum wage has lost more than 15 percent of its value. Today, there is no place in America where a full-time minimum wage worker making $7.25 an hour can afford a modest 2-bedroom apartment. But the Administration's only response has been to criticize our efforts to gradually raise the minimum wage without offering any alternative. A wide body of rigorous research and the experience of States and cities across the country demonstrate that gradually raising the minimum wage to $15 an hour will be good for workers, good for businesses, and good for the economy. I hope the Administration will follow the evidence and join our effort to give millions of low-wage workers a raise that is long overdue. The Department has not only opposed raises for low-wage workers, it has undermined raises for middle-class workers as well. Under your leadership, the Department abandoned the Obama-era overtime rule that would have expanded overtime pay protections to an estimated 4.2 million salaried workers and strengthened protections for an additional 8.9 million salaried workers. In its place, the Administration is offering a new overtime proposal that leaves behind more than 8 million workers and erases the Department's obligation to update the rule to keep pace with inflation, which will deny even more workers overtime protections in the years to come. Compared to the Obama-era overtime rule, the Trump Administration's proposal will cost middle-class workers $1.2 billion in wages every year. The Department's record on workplace safety, workers' right to organize, workers' access to affordable health care has also undermined the health and wellbeing of the American work force. OSHA has moved to weaken workplace safety standards, including protections against exposure to beryllium, a metal that can cause cancer and severe lung disease. It has removed standards covering toxic chemicals and combustible dust from the regulatory agenda, while relegating to the back-burner standards to protect health care workers from exposure to infectious diseases such as Ebola, pandemic flu, and MRSA. After decades of declining rates of black lung disease, the scourge has returned at epidemic levels. Experts point to silica exposure as the culprit. But while we have developed new technology to monitor exposures, the Mine Safety and Health Administration, charged with safeguarding miners, is failing to act. Meanwhile, the Black Lung Trust Fund that provides most miners' black lung benefits is drowning in red ink and the Administration has failed to support funds for black lung benefits. And the Department has played a central role in the Trump Administration's sabotage of the Affordable Care Act by expanding the use of junk health care plans. These plans not only put participants at risk of losing key consumer protections, they increase health care costs for all Americans by diverting younger, healthier Americans away from the general insurance pool. The Department has repeatedly attempted to erase the contraceptive coverage benefit that an estimated 62.4 million women currently enjoy under the ACA. Despite failing to withstand multiple legal challenges, the Department has attempted to implement rules that would leave many female employees, students, and their dependents with no insurance options for contraceptive coverage. Finally, last August, the Department's Office of Federal Contract Compliance Programs, the OFCCP, quietly issued a directive that would expand the right of Federal contractors to justify employment-based discrimination based on their religiously held views. Directive 2018-03 grossly undermines Executive Order 11246 which was enacted by President Lyndon B. Johnson to ensure that Federal contractors enact affirmative action programs and not discriminate on the basis of race, color, religion, national origin, gender, and other factors. The Department's indefensible directive turns the Executive Order on its head to provide Federal contractors with religious-based defense to discriminate with taxpayer funded dollars. Taken together, it is clear that hardworking Americans across this country cannot count on the Department of Labor to advocate on their behalf. Mr. Secretary, for too long, we have acted as though a growing economy means what is good for the economy is inherently good for all workers. But evidence and experience demonstrate that the benefits of economic growth are not being shared by workers and their families. Even as the stock market hits record highs, one in 9 workers is paid a wage that leaves them in poverty, even when working full time and year-round. More than 4 in 10 American households still cannot cover a $400 emergency medical bill. Four in 5 workers are living paycheck to paycheck. Those numbers are not cause for celebration; they are cause for action to address the inequality that continues to plague workers, families, and communities across the country. We must recognize that what's good for workers is good for the economy, not the other way around. In other words, a strong economy exists only when everyone can succeed. This is achievable when the Department fulfills its duty to put workers first. Mister Secretary, I look forward to this opportunity to discuss the important issues under your Department. Now, I will yield to the Ranking Member for the purpose of an opening statement. ______ Ms. Foxx. Thank you, Mr. Chairman, for yielding. Thank you, Secretary Acosta, for coming before the Committee today. It is a pleasure having you here to talk about the Department of Labor's policies and priorities on the heels of such excellent news about the booming U.S. economy. With record low unemployment and a job-seeker's market, it is a good time to be an American worker. The Department of Labor is responsible for keeping many commitments to the American work force, and it is my hope that today we will hear more about the Department's efforts to prepare workers, ensure that men and women are protected on the job, and the Department's work to fuel our continued economic growth. Right now, there are more than 7 million unfilled jobs in the United States, many of which remain open because there are not enough workers with the necessary skills to fill them. It is predicted that by 2022 we will have a shortage of 11 million workers who will not have the necessary education to thrive in the economy. This is an urgent concern, and we need work force development solutions that connect disenfranchised workers with the skills they need to fill good-paying in-demand jobs. Over the last several years, Committee Republicans have worked hard on legislation to improve our national work force development efforts and expand on-the-job learning opportunities to help workers gain the skills they need to succeed in the workplace. In 2014 the Workforce Innovation and Opportunity Act became law, and last year we sent the Strengthening Career and Technical Education for the 21st Century Act to the President's desk, where it received his signature. These laws address ways to fill job vacancies at the local level and strengthen students' access to apprenticeships and other on-the-job learning opportunities. It is our hope that you will use your authority to supplement these efforts to help the American work force flourish. In conjunction with Department efforts to prepare workers, it is important for Committee members to learn about what actions the department is taking to safeguard workers and wisely steward taxpayer dollars. Contrary to Democrats' claims, it is possible to protect and promote the well-being of workers while being fiscally responsible, and the President's Fiscal Year 2020 budget proposal for the Department of Labor does just that by vigorously enforcing labor laws and proposing important cost-saving measures whenever possible. The Department's policy of strong enforcement paired with enhanced compliance assistance is an especially effective way of protecting workers and bringing businesses into full compliance. This approach is a complete departure from the previous administration's policy of treating employers as adversaries instead of partners. DOL should also be commended for seeking opportunities to strengthen union transparency, ensure compliance with wage and hour laws, enhance retirement security, and expand access to affordable health care options for job creators and workers. These efforts, paired with the Department's deregulatory agenda, have already helped drive the surge of economic growth we see today. These policies will be key to ensuring the economy's continued progress, too. Today the U.S. economy has added jobs for more than 100 consecutive months. And since President Trump assumed office, the number of job opportunities available across the country has grown from 5.6 million to more than 7 million. Unemployment recently hit its lowest point in 49 years, and wages are up and experiencing sustainable organic growth thanks to the Republican Tax Cuts and Jobs Act and sweeping deregulation over the last 2 years, much of which has come from the Department of Labor. Median weekly earnings are up more than 30 percent for Latino and Asian workers and more than 20 percent for Black and White workers since the end of 2007. The progress cannot be overstated, and it is vital that the Secretary champion policies that keep this momentum going. Secretary Acosta, you have been dedicated in your leadership to the Department of Labor, and I hope we can remain focused today on what matters most, securing greater opportunities and prosperity for American workers. Thank you again, Mr. Chairman. I yield back. [The statement by Mrs. Foxx follows:] Prepared Statement of Hon. Virginia Foxx, Ranking Member, Committee on Education and Labor Thank you for yielding. Thank you, Secretary Acosta, for coming before the Committee today. It's a pleasure having you here to talk about the Department of Labor's policies and priorities on the heels of such excellent news about the booming U.S. economy. With record-low unemployment and a job seekers' market, it's a good time to be an American worker. The Department of Labor is responsible for keeping many commitments to the American work force, and it's my hope that today we will hear more about the Department's efforts to prepare workers, ensure that men and women are protected on the job, and the Department's work to fuel our continued economic growth. Right now, there are more than 7 million unfilled jobs in the United States, many of which remain open because there aren't enough workers with the necessary skills to fill them. It's predicted that by 2022, we will have a shortage of 11 million workers who will not have the necessary education to thrive in the economy. This is an urgent concern, and we need work force development solutions that connect disenfranchised workers with the skills they need to fill good-paying, in-demand jobs. Over the last several years, Committee Republicans have worked hard on legislation to improve our national work force development efforts and expand on-the-job learning opportunities to help workers gain the skills they need to succeed in the work force. In 2014, the Workforce Innovation and Opportunity Act became law, and last year, we sent the Strengthening Career and Technical Education for the 21st Century Act to the President's desk where it received his signature. These laws address ways to fill job vacancies at the local level and strengthen students' access to apprenticeships and other on-the-job learning opportunities. It is our hope that you will use your authority to supplement these efforts to help the American work force flourish. In conjunction with Department efforts to prepare workers, it's important for Committee Members to learn about what actions the Department is taking to safeguard workers and wisely steward taxpayer dollars. Contrary to Democrats' claims, it is possible to protect and promote the wellbeing of workers while being fiscally responsible, and the President's Fiscal Year budget proposal for the Department of Labor does just that by vigorously enforcing labor laws and proposing important cost-saving measures wherever possible. The Department's policy of strong enforcement paired with enhanced compliance assistance is an especially effective way of protecting workers and bringing businesses into full compliance. This approach is a complete departure from the previous administration's policy of treating employers as adversaries instead of partners. DOL should also be commended for seeking opportunities to strengthen union transparency, ensure compliance with wage and hour laws, enhance retirement security, and expand access to affordable health care options for job creators and workers. These efforts paired with the Department's deregulatory agenda have already helped drive the surge of economic growth we see today. These policies will be key to ensuring the economy's continued progress, too. To date, the US economy has added jobs for more than 100 consecutive months, and since President Trump assumed office, the number of job opportunities available across the country has grown from 5.6 million to more than 7 million. Unemployment recently hit its lowest point in 49 years and wages are up and experiencing sustainable, organic growth thanks to the Republican Tax Cuts and Jobs Act and sweeping deregulation over the last 2 years, much of which has come from the Department of Labor. Median weekly earnings are up more than 30 percent for Latino and Asian workers and more than 20 percent for Black and White workers since the end of 2007. This progress cannot be overstated, and it's vital that the Secretary champion policies that keep this momentum going. Secretary Acosta, you have been dedicated in your leadership of the Department of Labor, and I hope we can remain focused today on what matters most: securing greater opportunities and prosperity for American workers. I yield back. ______ Chairman Scott. Thank you, Dr. Foxx. I will now introduce our witness. The Honorable Alexander Acosta was confirmed as the 27th U.S. Secretary of Labor on April 28, 2017. He previously held positions as a member of the National Labor Relations Board, Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice, U.S. Attorney for the Southern District of Florida, and Dean of the Florida International University College of Law. Mr. Secretary, let me remind you that we have read your opening statement and it will appear in full in the record. So under Committee Rule 7(d) and committee practice, you are asked to try to limit your oral presentation to about 5 minutes or so in summary of your written statement. After your presentation we will move to member questions. I now recognize Secretary Acosta. STATEMENT OF HON. ALEXANDER ACOSTA, SECRETARY, UNITED STATES DEPARTMENT OF LABOR Secretary Acosta. Mr. Chairman, thank you, and Ranking Member Foxx, thank you as well for your opening statement. I think the two opening statements presented very different perspectives; suffice to say that I would adopt many of the Ranking Member's comments and disagree with some of your comments, Mr. Chairman. But I think rather than go through those seriatim that I think we are better served if we just proceed to questions. And so I yield my time. [The statement of Secretary Acosta follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Scott. Thank you. We will begin with the gentlelady from California, Mrs. Davis. Mrs. Davis. Thank you, Mr. Chairman. And Secretary Acosta, thank you for joining us today. Before we get started on our questions related to your agency's proposed budget, I just wanted to actually reinforce the point that Chairman Scott made when he read DOL's mission statement. What I think is important is that DOL's mission focuses solely on workers and their rights and protections. Your testimony speaks to how well the economy is doing. But the economy doing well does not necessarily always mean that workers are doing well. And so I hope you do not lose sight--I hope the department does not lose sight--of the fact that the mission of the Department of Labor is to protect and support workers first, foremost, and above all else. Yet despite this, department's proposed budget calls for cuts of $1.2 billion, or 10 percent, of its current appropriation. And these cuts, combined with numerous policies advanced by the department, seem to weaken or undermine areas of worker protections and enforcement. Mr. Secretary, I am actually struggling to see how these cuts to programs supporting workers are in line with the DOL's mission as it is currently stated. So this brings me to my first set of questions around apprenticeships. The National Apprenticeship Act makes clear that Congress delegated to the Secretary alone--Secretary alone--the authority to formulate and promote labor standards to safeguard the welfare of apprentices. Despite this, I understand the department is moving forward with a new regulation to allow for the creation of industry-recognized apprenticeship programs, or IRAPs. This policy shift allows the DOL to delegate its authority to establish standards to accreditors. Chairman Scott and I made an oversight request recently about DOL's rationale for granting third parties this authority and how that is justified given the requirements of the National Apprenticeship Act. Your March 14th response letter was not responsive on this point. So can you please confirm that the Department of Labor will not take regulatory action that hands over the department's statutory role in establishing the labor standards to third parties, including setting the quality standards that have made registered apprenticeships the gold standard for work force training? Would you want to comment quickly? Secretary Acosta. Well, so Congresswoman Davis, first, thank you for the opening comments. And going to the first part of your question, I do think it's important that all individuals in the economy benefit. And something that I--a statistic that I was made aware of that I think is important to share is the increase in wages really has gone across the board-- Mrs. Davis. Mr. Secretary, I just wonder if you could respond, though, just to whether the DOL is instead playing that role, is going to continue to play its role to keep that authority. Secretary Acosta. Certainly. But your first question had to do with the mission and wages. And so I just wanted to, if I could, point out that wages have increased, and if one looks at the lowest decile, one sees that the lowest decile wages are up about 6.5 percent, which is higher than the median. Now-- Mrs. Davis. Mr. Secretary-- Secretary Acosta.--moving to the apprenticeship question. Mrs. Davis. Yes, please, because-- Secretary Acosta. I understand the apprenticeship question is the focus of many of your comments. The registered apprenticeship program has worked well in construction and related building trades industries, and that is going to continue. That works well. But that has not expanded to other industries. There was a Presidential commission; on that commission were representatives from labor, representatives from business, representatives from various groups-- Mrs. Davis. Secretary Acosta-- Secretary Acosta. I'm-- Mrs. Davis. I understand. Unfortunately, I have limited time, and I just wanted to bring out--because I know we both looked at other models, Switzerland and Germany. And the reality there is that the government does play a central role in approving programs and their quality standards, and it brings together industry as well. And so that's why I wanted to continue here for a minute because this is important, as you acknowledge. I want to ask you about IRAPs. Will they require wage progressions? Will they be required to abide by the Equal Employment Opportunity in Apprenticeship regulations? And will there be protections for the participants, including workplace safety supervision, and a method for filing discrimination or other equal opportunity complaints, as all registered apprenticeships do? So will IRAPs cover those critical issues? Secretary Acosta. So, Congresswoman, those critical issues are covered by the law. And so IRAPs of course will cover those critical issues because those are required in any employment relationship. And IRAPs at their heart, like all apprenticeships, are about employment relationships. Mrs. Davis. Well, I look forward to working with you on these issues-- Secretary Acosta. Absolutely. Mrs. Davis.--because I think these are critical and we need to address them. Thank you very much. Chairman Scott. Thank you. Dr. Foxx? Ms. Foxx. Thank you, Mr. Chairman. And thank you, Mr. Secretary, for pointing out that all of these people in these apprenticeship programs will be covered by the existing laws. Committee Republicans have long supported the expansion of association health plans, and we're pleased to see the Department's final rule expanding access to health coverage, especially for small business employees. Organizations such as the National Restaurant Association, Land O' Lakes, Mason Contractors Association of America, many local and regional chambers of commerce, have announced plans to establish or expand existing association health plans. In these new or revised plans, to your knowledge, do workers have access to comprehensive benefit packages? On average, do these plans have lower costs than workers may be able to otherwise purchase in the individual market? Secretary Acosta. Congresswoman, in these new plans, workers absolutely have access to comprehensive plans. One way to think of these association health plans is, the health care market is divided into two parts: the market for small businesses, less than 50, and the market for big corporations, more than 50. And what the association concept does is it says to small businesses, you can band together and you can have access to the lower prices that are available to the corporations. But it is the same insurance that is available to the corporations, the same restrictions that are put on the corporations, the same safeguards as the corporations. So what this is saying is that mom and pop small business can play by the same rules as IBM, no more and no less. Ms. Foxx. Thank you, Mr. Secretary. Since you last came before this committee, a March 2018 Office of the Inspector General report found that the Job Corps program could not demonstrate the extent to which the programs help participants enter meaningful jobs. I know you have made efforts to improve the programs by suspending operations of centers that do not meet expectations. But it is clear there is still work to be done. How do you plan to continue reforms to this program to improve its effectiveness? Secretary Acosta. Congresswoman, thank you. Thank you for the question. First let me say safety is critical in Job Corps, and we have put in place a zero tolerance standard for safety issues. And so, as a result, Job Corps centers across the country are getting tougher with respect to discipline. If there is a safety issue, individuals are separated. We have installed more than 10,000 security cameras. We have installed more than 5,000 security doors with key guards. Something that we are doing as well, though, is Job Corps has not changed in decades. The economy has changed. Workforce programs have changed. And so we are looking at ways to modernize Job Corps, to establish pilot programs. Something that I wanted to share is something that I'm excited about. I think it is very important, and it is what we're calling Job Corps Scholars. We have pilot project authority, and under that pilot project authority we are starting Job Corps Scholars. We are going to request bids from community colleges around the Nation--this is going to be for up to 1,600 students--and the community college will establish, in essence, mini Job Corps within that community college. They will have approximately $15,000 per student, not only to cover tuition and to cover room and board, and I should say that is higher than the median tuition and room and board for community colleges across the Nation. But also they will be required to hire counselors and provide other services that are available to the Job Corps. We are trying to find alternative mechanisms to really provide Job Corps-style education to more individuals. And this would be at half the cost. One final point. We have changed the criteria by which we rank Job Corps centers. It used to be that the focus was on: Was a certificate obtained? Was a piece of paper obtained? And the criteria over a 2-year period has changed to: Did they get a job? Was it a job in the area for which they were educated? And is the resulting wage higher? And was that job retained after 6 months and after 12 months? Ms. Foxx. Thank you, Mr. Secretary. Very quickly, as you know, the radical 2016 Obama Administration overtime rule has not been invalidated by a final court decision. The Trump administration appealed the district court's ruling that nullified the rule, and asked the Fifth District to stop the litigation pending further regulatory action. We were pleased to see the Department's recent notice of proposed rulemaking for a modernized overtime rule. Given that the 2016 Obama rule still has a lifeline, what assurances can you provide that the Department will issue a new final overtime rule in a timely manner? Secretary Acosta. I see that time is expired. Let me just say the notice of proposed rulemaking issued, and the notice and comment period is live at this time. Ms. Foxx. Thank you, Mr. Chairman. I yield back. Chairman Scott. Thank you. The gentleman from Connecticut, Mr. Courtney. Mr. Courtney. Thank you, Mr. Chairman. Thank you, Mr. Secretary, for being here today. Again, I just want to followup on the mission of the department which has been discussed already, which is to ``foster, promote, and develop the welfare of wage earners.'' I read your 17 pages of testimony, and again, it was pretty notable to me that there was actually not one reference to the value of collective bargaining in terms of helping achieve the department's mission, which is unlike some of your predecessors. I have been around long enough to hear some of these hearings in the past. I thought I would give you a chance to redeem yourself. On Easter Sunday, 31,000 employees of Stop & Shop Grocery Stores, after an 11-day strike, reached an agreement, which again protected their health benefits, which according to, again, the public disclosure, the employer was seeking to increase health plan deductibles from $300 a year to $5,000 a year. It proposed more than doubling health insurance premiums, removing spousal coverage from health insurance premiums, eliminating time and a half pay on Sundays, and slashing pension contributions for full-time employees by half. The company obviously gambled in thinking they could win that job action, and they badly miscalculated. Customers actually adhered to the picket lines, and the settlement, which was announced on Easter Sunday evening, again, pretty much restored all of those benefits which had been hard fought over for many years by the United Food and Commercial Workers Union for those employees. So again, so far the only thing in your testimony was on the persuader rule. There has been a host of other initiatives by the Trump administration to weaken collective bargaining. With all due respect, what the UFCW did for its employees far exceeds the value of anything that was in association health plans in terms of their health benefits, and any wage increase would have been just decimated if that employer position--which again is a Danish company--had prevailed. So again, can you at least indicate for a moment what the department's position is in terms of the value of collective bargaining, which again we saw succeed for 31,000 employees up in New England? Secretary Acosta. Congressman, thank you for the question. I was actually up in Connecticut-- Mr. Courtney. I know. Secretary Acosta.--looking at Electric Boat and some amazing, really, really-- Mr. Courtney. Yes. I am going to mention that because actually, the metal trades are benefiting from registered apprenticeships. You did not mention that. But go ahead on the Stop & Shop. Secretary Acosta. Yes. So I read a little bit about that. So to be clear, higher wages is a good thing, whether it happens through collective bargaining, whether it happens because of a growing economy, whether it happens through any other mechanism. Higher wages are a good thing. To the extent that the United Food Workers helped those workers, that is a good thing. The point that I made earlier with Congresswoman Davis's question is, we are seeing wages increase, and we all benefit when wages go up, and so if it happens through collective bargaining and if it happens through other mechanisms. Finally, you mentioned association health plans, and I do think it is important. You are correct. They would not benefit from association health plans because they are part of a large corporation. And the idea of association health plans is to give those same benefits to small businesses that do not have the advantage of that collective bargaining in that large-- Mr. Courtney. Right. And again, just for the record, there are over 600 association health plans that were in existence prior to your rule that went into effect. All your rule did was basically create a loophole to avoid essential health benefits, which is something that they had to accommodate. Again, I just want to move on to another question. Last time you were here I asked you about the rising incidence of workplace violence in the healthcare sector. Again, we had a GAO report which a few of us had ordered a number of years ago which showed a 69 percent increase from 2006 to 2017. The CEO of Cleveland Clinic, which is one of the largest healthcare systems in the U.S., again just a few weeks ago had a speech where he described what is happening in emergency rooms as a ``national epidemic,'' and that the violence that they are seeing, the number of weapons that are being seized at the emergency room entrance, has just skyrocketed. Again, we have been waiting for the department to move forward on an OSHA rule that creates a national standard. Can you describe what you have done since the last time you testified before this committee in that area? Secretary Acosta. Certainly, Congressman. The regulatory agenda that is forthcoming will show that the first step in an OSHA rule is the creation of a SBREFA panel. And it will show that we are in the process of creating that SBREFA panel to look at this issue. Let me also say, as we talk about workplace violence, drugs is an important part that we need to look at. And maybe we will have more time to talk about that. Chairman Scott. Thank you. The gentleman from Tennessee, Dr. Roe. Dr. Roe. Thank you, Mr. Chairman. And thank you, Mr. Secretary, for being here. And since the Tax Cuts and Jobs Act, in my State of Tennessee we have seen personal income rise significantly in the last year. There are ``Help Wanted'' signs literally everywhere. The unemployment rate in the State of Tennessee is 3.2 percent, and our biggest problem is finding an adequately trained work force. And that is going to be the questions I have. Seventy percent of the workers gaining employment during this time came from outside the labor force in the first quarter of 2019, which means that people getting off--that now have an opportunity who did not have a job before. And this is a good thing. And I could not agree with you more: Whatever creates an increased wages for workers is a good thing. Just this past month, in April, 275,000 jobs created by this economy. Mr. Secretary, I do not remember in my lifetime a better time for a young person to graduate from school with skills. I do not remember. I ran into a truck driver at a Wendy's the other day and made $164,000 last year. He said this is the best he has done in his life, ever. We have students that are going to our technical school to train in welding that are being paid $16 an hour to go to school so that when they get out and complete their apprenticeships, they are going to make $23-plus an hour. So again, I cannot think of a better time to be out of school. I want to know a little bit about apprenticeships because I think we are missing a phenomenal opportunity. We had the electrical contractors in my office yesterday talking about the apprenticeships. Could you tell us how the Department of Labor is encouraging this? And there are more than 200 company associations and labor organizations have pledged to create 7- 1/2 million new opportunities to Americans through apprenticeships, re-skilling, and un-skilling. Could you comment on that, please? Secretary Acosta. Congressman, thank you for the question. So certainly apprenticeships are a phenomenal opportunity. Going back to the earlier question about collective bargaining, unions have put together some amazing apprenticeships in the building trades. The building trades as a group spends about a billion a year investing in apprenticeships, and you mentioned some of the results. I was with Senator Blunt in Missouri at a carpenters apprenticeship program, and the individuals that were leaving from there were starting salaries in the 40's and only up from there. I saw an article just recently about individuals that are working on oil rigs and pipefitters that are making well into the six digits. And so what we are looking to do is to expand apprenticeships beyond the traditional trades. The registered apprenticeship program has worked in some industries, and we are just about at 500,000 registered apprenticeships in the past 2 years. And so we are going to see it exceed half a million if it hasn't already, and we are going to only see it grow, but only in some industries. So we need to expand it to other industries, and that is where the industry-recognized apprenticeship program comes in. We need apprenticeships in areas like coding. We need apprenticeships in high tech. We need apprenticeships in healthcare in areas such as nursing and nurse's aides. We should have apprenticeships in advanced manufacturing. This should not be limited to the building trades because it provides valuable skills, and skills that lead to good, safe, high-paying jobs. Dr. Roe. We saw each other yesterday, and you mentioned something to me that was shocking to me. One of the dangers in the workplace today were drug overdose deaths. Could you comment on that? Secretary Acosta. Absolutely. And this is what I was talking about with respect to workplace violence. If we look at the fatality data for workplace fatalities over the last 5 years, the fastest-growing area of workplace fatalities is overdoses. And so it has gone from 82 a year to 114 to 165 to 217 to 272 this past year. And so the fastest-growing area has to do with overdoses associated with illegal drugs in the workplace. And this is something--I had a conversation with some individuals in industry that were very concerned about this. And it is something that I have also asked OSHA to look at because when you have gone from 84 to 272 in the span of 5 years, that is indicative of a problem. Mr. Roe. I agree, Mr. Secretary. And I think that is something that is a societal problem. Secretary Acosta. It is. Mr. Roe. It is not just the Department of Labor. It is a societal problem. I yield back, Mr. Chairman. Chairman Scott. Thank you. The gentlelady from Ohio, Ms. Fudge. Ms. Fudge. Thank you very much, Mr. Chairman. Thank you, Mr. Secretary. Mr. Secretary, for far too long certain--not all--certain retirement advisors have put their own financial interests above their clients'. Workers across this country are demanding a higher standard of care. They deserve peace of mind when planning for their retirement. The Department of Labor owes it to the workers of America to fully implement current rules and regulations put in place to ensure that they receive unbiased and fair advice. What is your plan to protect these workers? Secretary Acosta. Congresswoman, thank you for the question. First let me say, you are correct. Like all industries, the investment industry has some bad actors, and individuals need to be protected. As you are aware, the fiduciary rule was struck down by a court. It was held to exceed the statutory-- Ms. Fudge. I just want to know what you are going to do, sir. Secretary Acosta. I am getting to that, Congresswoman. I am trying to-- Ms. Fudge. I have 5 minutes. So if you could just-- Secretary Acosta. I understand. So it was struck down by the court. And so the department is working with the SEC. The SEC was asked by Congress to look at modernizing the protections in these-- Ms. Fudge. Sir, I am asking: What are you going to do? What is your Department of Labor going to do? Secretary Acosta. Congresswoman, if you will let me finish my sentences or paragraph. Ms. Fudge. But you just--I need to reclaim my time. I have more questions to ask. Secretary Acosta. So the Department of Labor is working with the SEC. The SEC was asked by Congress to come up with appropriate responses to protect these individuals. We are communicating with them, and based on our collaborative work, we will be issuing new rules in this area. Ms. Fudge. When will that be? Secretary Acosta. Well, the SEC is in the process of producing those rules. The SEC is-- Ms. Fudge. Just a time would be great. Secretary Acosta. Congresswoman, we are working with an independent agency that has its own time-- Ms. Fudge. Okay. So you do not have a time. Let me just move to my next question. It is rare that I actually agree with our Ranking Member, but today I do. The Ranking Member talked about the need to prepare workers. She talked about work force development. But as I look at the President's budget and what you all have proposed, you are cutting discretionary funding by $1.2 billion for the Department of Labor, which includes: $700 million to Job Corps, $15 million to Reentry Employment Opportunities, and $5 to Youth Build. So it does not look like you are preparing to do more with work force development. You want now to cut work force development. So I am confused because I actually do agree with her that we should. Tell me what is the role of Job Corps. Secretary Acosta. So Congresswoman, Job Corps' role is to provide skills and education to younger Americans ages 16 to 24. It has about 120 centers around the country. It has operated much the same way for decades, and I think those are important skills. And in fact we are working with Governors around the Nation to-- Ms. Fudge. I just wanted to know what the role of Job Corps is, sir. So if the role is to prepare young people for the work force, why are we cutting the budget? Secretary Acosta. So Congresswoman, as you are aware, the budget that is submitted is submitted within certain constraints. I would note that just yesterday, a different committee of the House proposed a different budget-- Ms. Fudge. I just want to know why you are cutting it. Secretary Acosta. Congresswoman, there are budget constraints that inform the budget. The budget is a process, as you are well aware, because-- Ms. Fudge. The budget is an indication of what you believe is important. So if you are cutting work force development, you do not think work force development is important. Secretary Acosta. Congresswoman, the amount of time and energy and effort that this administration is spending on work force development speaks for-- Ms. Fudge. Could you tell me what that is? Tell me what they are spending. Secretary Acosta. So certainly. We are, for example, expanding apprenticeships. We have got a record number of registered apprenticeships and we are expanding them to industry-recognized apprenticeships. And that is one area, for example. Ms. Fudge. How much are they spending? You said that they are spending all this money. How much are we spending? Secretary Acosta. I believe I said the amount of time and effort that this administration is spending because we should not judge success merely by dollars, but also by time and by effort. Ms. Fudge. You cannot judge it by dollars. But if you are going to cut 40 percent from Job Corps, 16 percent from other employment opportunities, then time and effort is nothing. It is talk. It is not action. We need young people to have an opportunity, especially children who are homeless, children who are in difficult situations. You want to protect kids? Then help them. Do not cut their budgets. I yield back, Mr. Chairman. Chairman Scott. Thank you. The gentleman from Pennsylvania, Mr. Thompson. Mr. Thompson. Mr. Chairman, thank you. Mr. Secretary, thank you for being here. It is always a pleasure to have you here before this committee, to be able to work with you, be able to reach out to you and now you reach back. It is appreciated. And I know my good friend from Ohio, my neighbor to the West, her questions about budget--budgets are important, and quite frankly, certainly I support Job Corps and those types of things. But I also point out where--and they are always difficult. They are always just difficult. But I would point out my colleagues across the aisle have not produced a budget. So a little bit of irony with a question on budgets. My question really has to do with a piece of legislation. It is something that we signed into law in 2014. It should be up for reauthorization here, I would hope, in the near future. That is WIOA, the Workforce Innovation and Opportunity Act. We updated the nation's--at that point, 2014, the Nation's primary assistance for unemployed and underemployed workers in the United States. And even though unemployment is under 4 percent, it is still obviously incredibly important to help people get those skills that you have made reference to. WIOA-supported work force development programs provide a combination of education and occupational preparation to prepare individuals for work and help them improve their prospects in the labor market. Specifically, the law requires that these work force development programs are coordinated and complementary so that job-seekers acquire skills and credentials that meet employers' needs. I love the fact that we brought the employers to the table with WIOA; that was the first of a series of three bills that we did that, really engaging people who sign the front of a paycheck, not the back, so that at the end of the day, with education, there's a great family sustaining job sitting there. So Secretary Acosta, as we look forward to reauthorizing WIOA, any recommendations can you provide us that will further help match employers with skilled workers that they need to compete in a global economy? Secretary Acosta. Congressman, that is a very important question. We have asked for increased flexibility in WIOA for multiple budgets now. And let me say that this is--Governors on both sides of the aisle on a regular basis have conversations with me, saying, ``For our State it would be helpful if we can move WIOA dollars from this category to that category. Will you allow us?'' And I believe Governors know best how to develop work force programs within their States, and that Virginia is different than Connecticut, which is different than California, which is different than Ohio, and that Governors should be given that discretion. My answer invariably is: If I have the discretion, then I am glad--I would gladly give it to you. I am thinking of one Governor, who happens to be a Democrat from a small State, pointed out that the dollars spent complying with making sure that the funds from one category are spent only in that category and the other category is spent only in the other category almost exceed the total WIOA dollars given to this particular Governor. And this Governor keeps asking, ``Can we not get flexibility so I can put them in larger funds?'' And so I understand that Congress has particular preferences on how the money is spent. But I think it would be helpful to have a conversation as to what specific flexibilities can be provided. Mr. Thompson. Thank you, Mr. Secretary. This committee did that with the Every Student Succeeds Act on the education side, Elementary and Secondary Education Act. We eliminated a bunch of siloes so that we trusted the school districts and the States to determine where the needs were. So great thoughts going forward as we approach reauthorizing WIOA. My congressional district is pretty rural. It is about 24 percent of the land mass of Pennsylvania, about 11,000 square miles, 14 counties. As I travel back to my district, I consistently hear from employers who are concerned about the future of the work force and are facing problems filling jobs due to a skills gap that we have seen for some time. Private payroll surged by 275,000 in April. It was just amazing. Our limiting factor on the economy today truly is finding that qualified and trained work force. For continued economic growth, I think that is really what it comes down to. GDP growth has been great. Unemployment is great. But that is our largest threat, is work force. And so going forward, what do you feel are the most important aspects of our fight to prepare the work force for careers involving the economy of tomorrow? Secretary Acosta. Congressman, I think it is--and I see the time is ticking down--I think it is very important that we provide young Americans with all their options and let them choose for themselves. And I think the system provides a lot of benefits to community colleges, for example--Pell and other grants if you get a degree. But if you want to go into welding, you may make more money. You may have a better job, a more secure job. But those same levels of assistance are not available. We do not have an unbiased system. Mr. Thompson. Thank you. Thank you, Chairman. Chairman Scott. Thank you. The gentleman from Northern Mariana Islands, Mr. Sablan. Mr. Sablan. Thank you very much, Mr. Chairman. Mr. Secretary, welcome. I am going to be--my questions are going to be particularly about territories, the Northern Mariana Islands. But on March 22nd, you issued an overtime rule proposal. Of course, the proposed rule formally rescinded the Obama-era overtime rule. But what struck me is that for the first time ever, your proposal creates a special rate for the Northern Marianas, for Puerto Rico, the Virgin Islands, and Guam, at $455 a week, and even for American Samoa, at $380 a week. Why is it different for the insular areas? Secretary Acosta. Congressman, thank you for the question. Let me just say that is something that I think you deserve an answer on. And let me get back to you on that. Perhaps we can come in and brief you and your staff on that question. Mr. Sablan. I appreciate that, Mr. Secretary. I take it that we are going to do that? Secretary Acosta. We will do that. We will do that. How about this: Let's put a time so that we both know that it happens. How about no sooner than next Friday, than a week from this Friday? Mr. Sablan. We will find--I will open something up. Thank you. Mr. Secretary, also, again, last year I introduced the Northern Marianas Workforce Act, which became Public Law 110- 218. So I want to know if that law is working as intended. The purpose of--one purpose of the law is to make sure that the education fee that employers of foreign workers pay is used effectively to train and place U.S. workers in jobs. And it should be about $2.5 million in Fiscal Year 2020. The Workforce Act requires the Governor to submit an annual plan for training funds. What factors will be used in assessing and approving a plan, one? Has the department provided guidance to the commonwealth Governor's office as to their requirement necessary for approval of a plan? Secretary Acosta. Congressman, we have talked with the commonwealth Governor on a number of issues. In all candor, a lot of them have to do with work force issues and visa issues and whatnot. I know that those plans are pretty typical, that the criteria are set out. And I will confirm to you that our Employment and Training Administration has been in communications with the Governor regarding that plan and what status, whether it has been submitted, and if so, where that is within the ETA. Mr. Sablan. Okay. Because there is a June 30th timeline there, sir. Thank you. On H-2B, Mr. Secretary, I continue to be concerned about the department's position that it is unable to prevent employers from laying off similarly employed U.S. workers and replacing them with non-immigrant guest workers under the H-2B program. Mr. Chairman, I ask unanimous consent to enter into the record our letter to Secretary Acosta of September 13, 2018, and the department's December 14, 2018 response. So Mr. Secretary-- Chairman Scott. Without objection. [The letters described follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Sablan. Thank you. Mr. Secretary, putting aside the department's position that it cannot enforce corresponding worker provisions due to congressional appropriation riders, it is clear to me that the department should at least be enforcing nondisplacement provisions, and that would correct actions such as when employers at a Marianas constructionsite laid off its U.S. work force in favor of H-2B workers. Why has the department failed to conduct an investigation of this matter? Secretary Acosta. Congressman, I cannot speak to the specific investigation. But I will--let me just say generally, we have directed the Wage and Hour Division, whenever it discovers an issue, to refer it to the Inspector General because we are investigating these matters. We are investigating them vigorously using every authority that we have. And if we can refer it for criminal investigation, we are doing so. And those referrals have gone up. One of the issues around nondisplacement has to do with the law set a cutoff, and a cutoff salary. And so the law is different for those individuals making less than $60,000 versus those making more than $60,000. I would love to work with the Congressman to address this because to the extent we have authorities, we want to use those authorities to enforce nondisplacement of U.S. workers vigorously. Mr. Sablan. Right. My time is up, Mr. Secretary. But I will submit some additional issues for you. And in our next meeting, no later than next Friday, we could discuss the other issues as well. Secretary Acosta. Absolutely. Mr. Sablan. Thank you, Mr. Secretary. Mr. Chairman, my time is up. I yield back. Chairman Scott. Thank you. The gentleman from Michigan, Mr. Walberg. Mr. Walberg. Thank you, Mr. Chairman. And Mr. Secretary, it is good to see you always. And thanks for bringing back some of the finest work force staff that you hired well. It is good to see them also. I would want to hitchhike on some of my colleagues' support for your efforts to work alongside of the excellent registered apprenticeship programs and bring industry apprenticeship programs into play as well. Especially my concern has been expressed by some in the industry that there is a variance in how we use those appendices on the work site. So all I am asking is that we look at making it equal, both in industry as well as the registered apprenticeship programs. But they both can be extremely valuable to what we need. On an issue of great concern to me, sitting in Central States area, as you know multiemployer pension plans are in crisis, looking at PBGC data in 2016, of being underfunded by $638 billion. There is some tremendous humanitarian problems that can develop with that. What steps has DOL taken to examine funding practices in these plans? And second, can you describe DOL practices with regard to auditing monthly employer pension plans? Secretary Acosta. Congressman, thank you for the question. The issue around multi-employer pension plans is acute and serious. The PBGC is projecting that when Central States reaches crisis--if it is not already at crisis; it is no longer able to make payments--the PBGC is going to face some very, very difficult--and likely, if Congress does not act before then, a lot of folks are going to be hurt. And that is at this point about 6 years out. Now, I will note, on a positive note, just last night--we have been waiting to have our confirmed head of the PBGC, the Pension Benefits Guaranty Corporation, confirmed for months and months now. And just last night he was confirmed. And so it is my hope that we can work with Congress. I know that there was a bipartisan working group. I believe it was called a special committee, or whatever the appropriate name was, of the House and the Senate that was put together to address this. And at the end of the day, there was no-- Mr. Walberg. It failed. Secretary Acosta. No. It failed. There was no path forward. This needs to be solved. And the longer Congress waits to address this, the more expensive it is going to get. And at the end of the day, it needs to be solved, understanding there is going to have to be shared pain because there are a number of individuals involved, a number of sides to this, and so there is going to have to be some room for compromise and consensus as we find a solution. But a solution does need to be found by Congress. Mr. Walberg. It has to be, and we appreciate any assistance, any help, any ideas auditing all of that because it truly does need to be done, or otherwise, we have a significant problem that taxpayers will pay for anyway. Secretary Acosta. Congressman, let me add--because you mentioned auditing--as a solution is found, my opinion is it should not just be financial. But there should be reforms that are put into place that provide flexibilities and authorities so this does not happen again. Mr. Walberg. It cannot be a band-aid that we pull off and find the same-- Secretary Acosta. That is correct. Mr. Walberg.--infection underneath. Okay. Associated health plans provide a number of consumer protections for workers and their families. We have discussed a bit already today. HPs must comply with the same HIPAA and ACA nondiscrimination rules so that other large employers must follow in addition to COBRA coverage requirements, and in certain circumstances, applicable State laws. Can you discuss how these laws shape AHP benefit offerings, and whether these consumer protections are consistent with similar plans offered by large employers? Secretary Acosta. Congressman, whenever I hear that association health plans do not offer quality plans, my question is: Does that mean that every corporation in the United States does not offer a quality plan? Because association health plans are subject to the same protections and the same requirements as those of any corporation that has more than 50 individuals. And that is an important point to make. Mr. Walberg. An important point that often we miss. So I appreciate you making that clear. I would also state that while a budget is not always appreciated the way it comes out, as was mentioned by my colleague as well as the Speaker of the House, a budget is an indication of what you value. Well, it is about time that the other side offers us a budget as well to find out what they value. And I yield back. Chairman Scott. Thank you. The gentlelady from Florida, Ms. Wilson. Ms. Wilson. Secretary Acosta, we wear red today and every Wednesday to protest sexual abuse against kidnapped girls in Nigeria by the terrorist group Boko Haram, who is affiliated with ISIS. Secretary Acosta, you claim to respect the rule of law. But as the Miami Herald has reported in detailed accounts, while a U.S. Attorney in my home State of Florida, you made questionable decisions during the prosecution of sex trafficker Jerry Epstein, and in the process violated the Crime Victims' Rights Act. This makes it difficult for me to seriously believe that as Labor Secretary, you are putting our workers and the vulnerable first. In fact, your budget, which favors the powerful and wealthy over the little guy, makes it clear where your values and priorities lie. You propose large cuts to the Department of Labor bureau charged with preventing exploiting workers. Courts have struck down rules in your deregulatory agenda. And you consistently promote regulations that limit employer liability when they mistreat their workers. This hearing will delve into all of that. But I want to start by asking you how you justify violating the Crime Victims' Act in the Epstein case. Secretary Acosta. Congresswoman, going to your question about the Crime Victims' Act, the department has taken the position for the last 12 years that in fact the Crime Victims' Act was not violated in that case. The office followed the protocol set out by the Attorney General, a protocol that has been--that has been confirmed by the Office of Legal Counsel. And so it is the Department's position in litigation that in fact, the Crime Victims' Protection Act was not violated. I understand that the judge disagreed with the Department's position. But we acted consistent with DOJ protocol, rules, and regulations. And that is the position of the Department, based on my understanding of the litigation, across multiple administrations, across multiple Attorneys General. Ms. Wilson. My question to you is about the unsavory way in which this case led the Southern District of Florida to find that you specifically violated the law. Judge Marra cited how you actively hid from the victims who had been sexually abused details about the plea agreement. You did not want them to know. He also cited how in blatant violation of the Crime Victims' Rights Act, you met with defense attorney Jay Lefkowitz and assured him that you would not reveal details of the plea agreement to the victims, some of whom were as young as 13. And although the prosecution was required to notify the victims of the odious deal you made before it was finalized, you sent a letter to another one of Epstein's attorneys, Ken Starr, citing that you were directing your prosecutors to not issue victim notification letters until the terrible deal was done. When faced with criticism about this case, you have hidden behind prosecutorial discretion. You were just part of the team, you have argued, but your actions suggest that you experienced some confusion about exactly which team you were on--either that you just did not care about Mr. Epstein's victims, little, young girls, which included scores of them, underage girls whom he had molested. How else do you explain the fact that as a prosecutor charged with protecting the vulnerable, not defending the indefensible, you bent over backwards to protect the abuser? How do you do that? Secretary Acosta. Congresswoman, first let me say that this matter was appealed all the way up to the Deputy Attorney General's office, and not because we were not doing enough but because the contention was that we were too aggressive. The background to this case is the State Attorney--the police-- Ms. Wilson. I will just end by saying-- Secretary Acosta. Congressman, if I could-- Ms. Wilson.--that if you could so heartlessly cast aside your duty to protect the vulnerable in favor of a wealthy sex offender, I am extremely concerned that we can expect a similar pattern of indifference in your role as labor secretary. And I want to remind you, Mr. Secretary, that your job is to protect workers and not working businesses. And I yield back. Chairman Scott. Secretary, did you want to respond? Secretary Acosta. I will just move on. Thank you. Chairman Scott. The gentleman from Kentucky--oh, excuse me, the gentleman from Georgia, Mr. Allen. Mr. Allen. Thank you, Mr. Chairman. And thank you, Mr. Secretary, for being here and enduring some of these comments. Well, we are here to talk about jobs, and obviously the country is--you have got quite a challenge ahead of you, and the Department of Labor has quite a challenge ahead, because as my colleagues have said, everywhere we go, everybody needs skilled people. In fact, I believe the economy could grow more rapidly if we had a way to snap our fingers and make that happen. But I was at the White House when the President signed up, I think, that day about 4 million apprenticeships. Various--all the labor groups were there. It was quite a scene. And then I saw Ivanka sometime later, and she said, I believe, it was to 6 million. Now, how many total apprenticeships have we committed there? Secretary Acosta. That's right. Congressman, at last count the number of re-skilling opportunities that businesses have committed to, which includes apprenticeships, has exceeded 6 million, and it is growing. Mr. Allen. Yes. Good. Well, that's good. Obviously, the government can only do so much, and so it's nice to see the business community and the labor groups step up and let's fix this problem. One thing that I wanted to ask you about. A constituent of mine has received a contract to build the new Job Corps center in Atlanta. And can you provide me with an overview of any problems that the DOL contract administration group is having administering these contracts in the construction of projects throughout the country? Secretary Acosta. Congressman, I know that there are a number of construction programs that are going forward. There are often challenges to bids. There are often a number of issues that arise at a local level. I know that you have inquired as to one, and I think it--I'm happy to have your office briefed or to brief you. Mr. Allen. Yes. If you could do that, I would really appreciate that. As far as the Workforce Innovation and Opportunity Act, Congress empowered businesses to lead the way in work force development, and we took a step toward increased innovation and efficiency. What steps can we take to encourage further competition and expand on the options that are currently available to businesses? Secretary Acosta. So Congressman, I think again one of the issues there is increased flexibility. Allow localities to decide what works for that locality. Mr. Allen. Right. Secretary Acosta. For example, in-school youth versus out- of-school youth--sometimes the best way to keep youth in school is to provide work force education around the school or while in school. And so we have asked for those flexibilities, and I would be happy to further the conversation. Mr. Allen. Good. As far as looking at the current need across the country, obviously the Department of Labor is trying to come up with some way to ramp up. We talked about apprenticeships, other things. What else are we trying to do to get this problem solved? Secretary Acosta. Well, one area let me highlight. I mentioned the Job Corps Scholars program earlier, which is a pilot program for 1,600 young Americans around community colleges. Another area I want to highlight is we have discretion with respect to H-1B fee dollars. And so we put out a request for proposal, and hopefully we will be awarding $150 million soon for educational institutions. And we did something that we have not done previously: We said, you need to find a business partner, and they need to match, and they need to match, I believe it was, 1 dollar for every 3 Federal dollars. And that is not just about the dollars, but it is about the value of having a business partner in work force education that will have input into the curriculum so that we know that it is the right kind of curriculum that will have skin in the game. So when it comes time to hire these young Americans, they are there that they are hiring them. And so we focused those on the areas where H-1Bs are being used the most, on high-tech, on healthcare, on advanced manufacturing. And we said, these are available for apprenticeship programs. And so we're very excited that we are going to be announcing those, and it is going to be across the country. And hopefully there will be a second round and a third round because those H-1B fees should and in fact are required to go to provide skills in the areas where H-1Bs are being given. Mr. Allen. Okay. I'm out of time, but please, any time that we can be of assistance as far as the U.S. Congress in helping us achieve what we need to achieve as far as getting people skilled up and back to work in this country. I am all in, and I will be glad to help you, sir. Secretary Acosta. Thank you. Chairman Scott. Thank you. The gentleman from California, Mr. Takano. Mr. Takano. Good morning, Mr. Secretary. Mr. Secretary, when you entered office, you decided to appeal the Obama overtime rule that was struck down by a Texas court in 2017. What was your reason for appealing? Secretary Acosta. Well, I think it is important, when these rules are called into question, the U.S. Government should defend them more appropriately. We can disagree with the policy underlying the rule and we can still appeal the rule. Mr. Takano. So you disagreed with the salary threshold that the previous administration set. Secretary Acosta. Congressman, I think at my confirmation hearing, I noted that there was certainly a need to adjust for inflation, that life had gotten a lot more expensive since 2004. But my disagreement does not preclude my defending a rule that has been put into place. Mr. Takano. Okay. So what was your reason for appealing it? As I recall, you wanted to preserve--you believed that the Secretary of Labor should have the authority to set the rule. Is that right? Secretary Acosta. That is correct. One of the issues is whether or not the Secretary-- Mr. Takano. Well, yes. And why do you believe the Secretary of Labor should have that authority? Is it because you believe that the Secretary of Labor should be protecting the American worker? Secretary Acosta. Well, Congressman, I believe--let's start off with Congress, I believe, has given the Secretary of Labor that authority. Mr. Takano. Yes. Of course. Secretary Acosta. And so-- Mr. Takano. Well, yes. But basically, you believe the Secretary of Labor should have that authority, and Congress did give that authority, and you disagreed with any ruling that would have said the Secretary of Labor does not have that authority. Is that right? Secretary Acosta. Congressman, again, I-- Mr. Takano. Well, I don't want to get stuck on this point. Secretary Acosta. Yes. Mr. Takano. I just want to know. What was the threshold that the Obama Administration had set? Secretary Acosta. The threshold was approximately $23,600, give or take. Mr. Takano. That the Obama Administration had set? Secretary Acosta. Yes. Mr. Takano. For the threshold? Secretary Acosta. I am sorry. The 2004 threshold was $23,600. Mr. Takano. Right. The Obama Administration had set the threshold higher, closer to $50,000. Secretary Acosta. That's right. Closer to $50,000. Mr. Takano. Okay. And in 1974, what percentage of the work force was eligible for overtime pay? Do you-- Secretary Acosta. In 1974, I would-- Mr. Takano. Or 1975. Around there. Secretary Acosta. 1975. I would have to look that up. But the Congressman may know the answer. Mr. Takano. So EPI, the Economic Policy Institute, said it was more than 60 percent. Do you know what percentage of the salaried work force is eligible for overtime pay today? Secretary Acosta. So Congressman, if the question is--well, the Congressman, I think, has the data. Mr. Takano. Okay. About 7 percent. Right? Under the current salary threshold. Under your proposal, you propose to set the salary threshold around $35,000. What percentage of the work force would be eligible under that salary threshold? Secretary Acosta. The same percentage as--and maybe this goes to how we propose the current rule from NPRM--the same percentage as would have been eligible when the salary threshold was set in 2004. In essence, in 2004, if I could, Congressman-- Mr. Takano. Well, look. We have gone from, in 34 years, a salary threshold that made over 60 percent of the American work force eligible for overtime pay. Presently it is at 9 percent. Your salary threshold, as you propose, would make it 15 percent. And you disagreed or you did not think, obviously, that defending a 33 percent threshold, eligibility threshold, was something that was a priority for you with President Obama. So we are quibbling over 33 percent versus 15 percent, but I would say that is a significant difference. Secretary Acosta. Congressman, if I could, if I could answer with at least a few sentences. The 2004 rule set the threshold at the 20th percentile of the lowest wage region, as I-- Mr. Takano. I get that. But nationally, we are talking about that-- Secretary Acosta. But Congressman-- Mr. Takano.--but you have to--we have to see that the American worker, the protections under the Fair Labor Standards Act under the overtime rule--do you believe in the 40-hour work week, that people should not have to work more than 40 hours a week without being paid overtime? Secretary Acosta. Congressman, as I was trying to get a word in edgewise, the 2004 set it at the 20th percentile. The revised rule is-- Mr. Takano. I get it. You're going to take me through all these regional examples. Secretary Acosta.--using the same methodology with the same percentage. And so we can talk about different percentiles, but it is the same methodology with the same percentile. There is no change since-- Mr. Takano. Mr. Secretary-- Secretary Acosta.--2004. Mr. Takano.--the fact remains that we once had 60 percent of Americans protected and eligible for overtime, and we only have 9 percent. And you are only proposing to increase it to 15 percent of the salaried work force. I do not think that is a Secretary of Labor that is protecting the American worker. I yield back. Chairman Scott. Thank you. The gentleman from Kentucky, Mr. Comer. I did not see Ms. Stefanik come in. The gentlelady from New York. Ms. Stefanik. Thank you, Chairman Scott. Thank you. Secretary Acosta, I have heard from constituents in my district about challenges that are facing active duty servicemembers who are participating in the career skills program at Fort Drum. There is concern that these soldiers may not be able to be considered interns under the Fair Labor Standards Act. And this confusion is preventing them from gaining valuable on-the-job experience while they complete their transition to civilian life. And it is of paramount importance, I believe, that we provide members of the military with effective programs that teach the skills needed to secure a safe, steady, and family sustaining career post-service. Previously I sent a letter to you and the department at the end of February, and I wanted to know if you have any updates on clarifying classification of interns under FLSA, specifically for our military servicemembers. And if not, I am eager to hear what your ideas are, how we can work together to address this. Secretary Acosta. Congresswoman, thank you for the question. First let me say the confusion was not just limited to there. There was quite a bit of confusion nationwide as to what is and is not allowed for internships. And so we have put up a website to try to clarify that. This sounds like an important and a fact-based issue. Something that we have restarted is the practice of issuing opinion letters that had been in force for decades, where individuals that are not sure of what the law is can say, these are our facts; how do they apply? It is used by the IRS. It is used by any number of agencies. And perhaps we can work with your office so that you have the information to suggest that someone issue a request for an opinion letter. That will provide clarity as to what is and is not allowed. Alternatively, if it is a clearer issue, we can certainly work with your office. Providing opportunities for individuals associated with the military is incredibly important. We have worked on military spouse employment issues. They face incredible difficulty with respect to licensing as they have to move from State to State. They have, I think, a very unfair choice: Keep the family together or keep a career. And that should be a choice that spouses should not have to face. We are working to reform the transition assistance program that individuals receive as they are leaving the military. Right now it varies base by base, and we trying to bring national standards to bear so that it is much more uniform and it is accessible in the same way not just to individuals on the large bases but the small bases. So we are very interested. Ms. Stefanik. Okay. Well, I want to followup specifically. I want to be able to give Fort Drum and the soldiers and the program managers specific guidance as to what they need to do because the soldiers want this experience. We want to make sure that we protect this program at Fort Drum. So I look forward to following up directly with your department. Secretary Acosta. Let's set, by next Friday again, a commitment so that we can keep things moving. Ms. Stefanik. Great. So we can move quickly. And I also wanted to add on the professional certification and licensing challenge, that is something that we have written three bills that have actually passed in the National Defense Authorization Act because I sit on HASC. One is a $500 reimbursement for a military spouse if they are transferring from one state to another and have to recertify. We should make that more seamless. But in the interim, it is important to cover as much of that cost as possible. Additionally, I was able to include my bill that allows greater flexibility for the spouse to move either 6 months prior or 6 months after their spouse in the military to give them the flexibility to find a job or finish their--if they're taking college courses, for example. The more we can do to provide flexibility, not just for the service members but their spouses, I think the better off we will be as an economy and as a Nation. So with that, I yield back. Mrs. Davis. [Presiding.] Thank you. Ms. Wild? Ms. Wild. Good morning, Mr. Secretary. Thank you for being here. I would like to direct my first question to the multi- employer pension crisis. And I guess my very first question is whether you believe that--and whether the administration believes that--A, there is a crisis, and B, that it needs to be addressed. Secretary Acosta. It absolutely needs to be addressed, and sooner is better than later. Congress needs to come together and really find a solution to this, yes. Ms. Wild. All right. And you are aware, of course, of H.R. 397, the Rehabilitation for the Multi-Employer Pension Act? Secretary Acosta. Congresswoman, I know that there are any number of bills. I am not aware of the specifics of that particular bill, but perhaps you could inform me. Ms. Wild. Well, let me ask you this: Are there any bills currently pending that the administration is in support of to address this crisis? Secretary Acosta. Congresswoman, Congress tried to address this by creating a bipartisan commission, Republicans and Democrats, House and Senate, to find solutions. That commission ultimately could not come to an answer. An answer needs to be something that is supported by both sides. It needs to pass. And it is something that recognizes the need to compromise. And so it is certainly a bipartisan effort, and it needs to be bipartisan to come up with a solution to this as something that would be welcome. Ms. Wild. Okay. So I think you used ``bipartisan'' several times in that response. And I don't think anybody in this room would disagree that it has got to be a bipartisan effort in order to get anywhere. So my question to you is: Speaking for the administration, what kind of reforms would you support or would the administration support that might get us to a place where we can agree on some solutions for these retirees? Secretary Acosta. So putting aside the funding issue, which is one of the areas for bipartisan, something that I think we need to look at is the authority for the PBGC to have flexibility in pricing to be able to say, one pension is very well-funded and very low risk, but another pension is not as well-funded and much higher risk. And so perhaps the premiums that get paid need to be different. This is something that is very common in the private sector, and the average American gets, if someone is a greater credit risk, they have to pay a higher mortgage. And as a matter of fact, I think this is part of our budget request. There are any number of ways that the PBGC, going forward, can really look at individual risks, the risks of individual pensions that it is guaranteeing so that we are not in this position again. Ms. Wild. But ultimately that is going to disadvantage the retirees who are part of the pensions who are at greater risk. Right? Secretary Acosta. So I don't--in all candor, I don't see how a flexibility for premiums is going to, based on the strength of the pension, is going to disadvantage the retirees. That is a pension paying based on its risk to the system. And if anything, it incentivizes those that are funding the pension to fund the pension so that it does not get into the financial issues that have led to this crisis. We are looking at a $50 billion deficit today and a projected bankruptcy, in essence, somewhere around 2025 plus or minus a year or two. Ms. Wild. It is actually more than $50 billion. It is almost $54 billion when you compare the PBGC's assets to their liabilities. And the proposal of the administration to increase premiums would raise $18 billion over 10 years for the PBGC. But it still leaves almost $36 billion in liabilities. And while it provides a little bit of a safety net for the PBGC, it only provides a fraction of a retiree's pension benefit if the retiree's underlying multi-employer pension plan fails. And that is why I say it penalizes the retiree. Several weeks ago we had a hearing here where we heard from a retiree who had worked many jobs in an industrial bakery. His pension plan is projected to be insolvent in the next few years through no fault of his own, even though he paid into it for more than 20 years. And he is at risk of losing everything for which he worked and sacrificed. How do we solve that problem? Secretary Acosta. Congresswoman, when I was talking about that flexible pricing, I was talking about differential pricing, which is also part of the proposal. Ms. Wild. Thank you. I yield back, Mr. Chairman. Chairman Scott. [Presiding] Thank you. Now the gentleman from Kentucky, Mr. Comer. Mr. Comer. Thank you, Mr. Chairman. And Mr. Secretary, welcome to the Committee. I appreciate the good work that you and President Trump are doing. I represent a rural district in Kentucky. It spans all throughout West Kentucky, Southern Kentucky, and a portion of Central Kentucky. And I am blessed that we have two very impressive Job Corps centers in my congressional district. One is the Earle Clements Job Center in Morganfield, Kentucky. The other is the Muhlenberg Job Corps Center. I have visited both of those numerous times. I'm very impressed with the programs that they offer. They are providing exactly what industry is begging for. The biggest complaint that I receive when I travel the district from employers and job creators is, there is a shortage of workers, and there's a shortage of skilled workers. The two Job Corps centers in my congressional district are meeting the demands of what industry wants in Kentucky, and I am a big fan of both of those Job Corps centers. One of my constituents from Union County recently testified before the House Labor Health and Human Services Subcommittee about how great a job the Job Corps center did for his foster children. In Kentucky, we have a program that pays for free tuition for foster children, free tuition to any of the regional universities, which includes the University of Kentucky, and Murray State University in my congressional district, free tuition for any of the community colleges, vocational schools. But they chose to go to the Job Corps center because they felt like they would receive the certification that they need to make the most money in the work force. And my question to you, Mr. Secretary, is: Has there been any effort made to integrate the administration's industry- recognized apprenticeship model, itself an alternative pathway to work, into the Job Corps? Secretary Acosta. Congressman, several of the Job Corps teach many of the skills that are already covered by apprenticeships on the registered side in the building trades. And certainly as the industry-recognized apprenticeship program continues, that is something we are going to be looking at. Let me also say that we have had very good discussions with Governor Bevin about the Job Corps centers in your State, and we are working with him because those Job Corps can certainly always be improved. And we do think it is important. If I could just have 15 seconds because I do think it is an important distinction. The variable pricing based on risk of underlying pensions that I was talking about is used in the single-employer plan that is not facing the same financial crisis so this is not that novel. It is already used in the single--employer process. Mr. Comer. Great. Next question. As you know, the Office of Workers' Compensation Programs is responsible for administering the Energy Employees' Occupational Illness Compensation Program Act, which provides compensation for Federal employees and contractors employed in nuclear weapons production. A recent report by the GAO requested by members of this committee found that the department could better assist these claimants with clearer communication during the application and eligibility determination process. In the report, Director Julia Hearthway underscored the Department's renewed focus on adequate education for claims staff, improving written communications and engagement with claimants and enhancing the transparency of the claims decisionmaking process. Can you discuss the process the Department has made in these areas, and what other areas and what other efforts the Department plans to undertake to improve the claims process for beneficiaries? Secretary Acosta. That is right, sir. Director Hearthway has implemented a number of reforms, not just in this but in other areas, to almost walk the claimants through this process. It can be very confusing. Each program is different. And so she has directed her staff to almost--we have to receive the submissions and judge them. But that does not mean that we cannot work. These claimants have been through a lot. That does not mean we cannot work with the claimants to make it clear to them, this is exactly what we need. This is exactly what we need to do. And so there have been 33 nonsubstantive updates to the requirement process. We have tried to avoid litigation. We have tried to just make it so that we can tell individuals up front what they need to do. There have been 35 programmatic determinations regarding the claims process. And the advantage of programmatic determinations is they are program-wide so we do not have to revisit that individual's. And the biggest change by volume is due to conforming the regulations regarding the process to the FECA program that was implemented in 2011. A lot of times these regulations are out of date. And so individuals do not really know what they need to do. So if there are specific questions, I can certainly address them individually. But she has done a great job. Mr. Comer. Thank you, Mr. Secretary. I yield back. Chairman Scott. Thank you. The gentleman from New Jersey, Mr. Norcross. Mr. Norcross. Thank you, Mr. Chairman. And Secretary, great to have you here as an update on what is going on at the Department of Labor. Before I get into my primary question, I just want to talk about the multi-employer pension system and the cost not only to those who receive the pension, but to our country, the damage that will be done if we fail to act, much higher than the amount of money that would be thrown into the system to prop up PBGC. A very important issue to make sure that we keep our eye on is that trying to charge the healthy plans astronomical increases in premiums is blaming those who have done the right thing are paying the price. We talked about the premium system that is used in the single employer. That is fair because it is that employer who caused the positive or the negative. There is a direct connection. The multiemployer, it is other companies that are making decisions that will force those premiums to go up and the structural changes. You are still dealing with the last man standing and the bankruptcy. That has to be changed. We cannot penalize the healthy plans. Secretary Acosta. Congressman, if I could because I think there is a misunderstanding as to what I am talking about and maybe I need to be more clear. What I am talking about is in the single-employer system, there is variable pricing. So the healthy plans actually pay less, not more. And so what I'm suggesting is that putting aside whatever the ultimate premium is going forward, something that is important is a recognition that if a plan is under-funded, it carries a bigger risk-- Mr. Norcross. Absolutely. Secretary Acosta.--and therefore should be paying a higher premium, as opposed to a plan that is not under-funded and, if anything, that provides an incentive to not underfund these plans. Mr. Norcross. We could spend hours on this one. But the idea of making the healthy plans pay for the unhealthy, now there's a risk that we would need to address. But that will just cause more plans to fail. I want to touch base on something that I know we have spoken about before, and it is important to you. And that is the Mental Health and the Addiction Parity Act. The law was almost 10 years ago. Patrick Kennedy ushered it through, and it was signed into it. You have testified before why it is important for the Department of Labor to have the ability to issue civil monetary penalties against the plans when those insurers are not doing the right thing. Why is that important for the Department of Labor to have that stick to address it? Secretary Acosta. Well, Congressman, typically enforcement carries with it a stick. Mr. Norcross. Absolutely. Secretary Acosta. And so let me break this down, if I could, into two parts. One of them is how we enforce, and right now we enforce against each individual--each individual plan. And so we can have a situation where we have a hundred violations that are identical, and we would have to go a hundred times as opposed to just say, it is the same violation by the same carrier. And so just as a matter of enforcement economy, not only is it like a stick-- Mr. Norcross. But you cannot go after all the employers right now because you do not have the enforcement mechanism. If we gave that to you, obviously you could. Secretary Acosta. That is correct. We can go after individual by individual. But as a matter of enforcement economy-- Mr. Norcross. Right. You cannot do that. Secretary Acosta.--that is not the better approach. Mr. Norcross. So you are agreeing that you still want that enforcement ability, the tool, to go after them? Secretary Acosta. I understand it is a complicated issue and there are multiple levers. But from an enforcement perspective, that would be a much better enforcement approach. Mr. Norcross. Great. So we will be working with that. I think the bill is going to drop next week. Let me just shift over to the apprenticeships. And there has been a lot talked about a registered program versus unregistered. I came through one myself that was registered, and they do a great job in the building trades. I am a little perplexed on why a registered program for nursing, healthcare, is a problem, particularly when putting together a program is not tough, and the standards are so critical because whether it is a nursing or a tech, at a healthcare system, it is not different than it is on the West Coast. And they actually learn from each other. Why is it that you are--or what are you seeing that is preventing companies from creating apprenticeship programs that are registered? Secretary Acosta. Well, Congressman, it actually is, for companies, quite complicated because often the standards vary by State. And so a company that wanted to have a nationwide apprenticeship program may say, ``We are not going to go to 50 different States, or 40, or 30, and do their submissions. We are just going to do our own job training.'' Mr. Norcross. Well, but if you are going to send applicants into those programs you have to set up a system that can be the same, and we do it across the board. It is not tough. I have put a program together. It is not--if you are in a position to teach those young apprentices, that means you have curriculum and you can go through it. Your website actually points out that one of the biggest registered programs is in healthcare, and it is in manufacturing. It works. It is not really that tough. And the idea of working together--registered, the standards are the same--is an asset, not a negative. So where is it--what evidence do you have--that it is a problem? Maybe I can hear from you later on. Secretary Acosta. We will talk. Mr. Norcross. Thanks. Chairman Scott. Thank you. The gentleman from Pennsylvania, Mr. Smucker. Mr. Smucker. Thank you, Mr. Chairman. Thank you, Mr. Secretary, for being with us. I am really proud of the work that you have done and that the administration has done to provide more opportunity for workers all across this country, and proud to have been here in the Congress when we focused on economic policies that generated the kind of economic activity that we are seeing. So thank you so much. You are making a difference in the lives of more workers than at any time in recent history, and we appreciate what you are doing, and we appreciate the opportunity to work with you on that. Of course, 7 million jobs available. I meet regularly with a group of some of the large staffing agencies. One particularly meeting, they went around the room. It was half a dozen companies. 75,000 jobs available just among that small group. They said, today companies are making decisions about where to place the next factory, where to position their headquarters on work force issues primarily, and that is still too often overseas. I think it is the biggest threat to our growing economy, is simply not being able to fill these positions. Businesses are investing more and more. But on the government side, we are woefully under-investing compared to the amount of dollars that we are investing in higher education on 4-year degrees and so on. I have a particular bill that would address this that I would like to just mention to you. It is the USA Workforce Tax Credit Act. It allows a tax credit for businesses who invest in their work force, invest in their communities, participate with community college, participate with companies that are providing apprenticeship programs, and so on. It is taking dollars and reinvesting right back into their work force rather than sending to the Federal Government. It would be, I think, a tremendous way to provide an additional tool for companies. And again, we are seeing particularly larger companies are investing more and more in their work forces. But they need additional help. So I would love to be able to share that legislation with you, and would certainly love your feedback on that proposal. Secretary Acosta. So, Congressman, let me just say two points. First, I agree we are under-investing in skills versus degrees, as an example. An individual can go to a community college and get a certificate in coding, and can get that for credit, and not receive much of the aid that would be available if the individual enrolls in a degree where you have got the same courses, the same skills, but one meets the criteria for aid. One does not meet the criteria for aid. And so if individuals want to work and learn and work and learn, which I would say is the way our country is moving and the world is moving, where you do not just--the old way of doing it was, go to school, and work. The new way is earn/ learn, earn/learn, lifetime earning/lifetime learning. The second point, and I think this is why what you raise is so important, is the integration of business into education. I was in Connecticut recently, and one of the reasons I went up there is I had heard that there was a welding program a while ago. And that welding program was teaching welding-- Mr. Smucker. I am going to stop you, and I would love to hear that, and it is no disrespect whatsoever. Secretary Acosta. Go on, please. Mr. Smucker. But I do have at least one other issue I will like to raise, the issue of IRAPs. I applaud your work on this. I came from the construction industry. I understand the need to--what you are describing, on-the-job training. Earning while you are learning is very, very important. And the concern was raised earlier that the government should approve all apprenticeship programs through the registered program, which I think is one way to do it. But is this not similar to higher education, where we decided that system didn't work as efficiently as it should, so we created accreditors. And yes, that system may not be perfect, either, but generally it is working pretty well. Do you not see some similarities in those programs? Secretary Acosta. It is very, very similar. The answer is yes. Mr. Smucker. My old company was in Lancaster, Pennsylvania. Had several hundred employees. We worked very, very hard to build an apprenticeship program for our workers. Were unable to get approved in Pennsylvania. There are barriers in the construction industry to a large segment of the construction work force that is non-union. How do we address that? Secretary Acosta. So there are barriers to approving registered apprenticeships. It is more complex than folks understand. A number of businesses do not want to go through that. And the genesis of the industry-recognized apprenticeship is to provide an alternative path with accreditation just like higher education. Mr. Smucker. Thank you. I appreciate your work on it. Chairman Scott. Thank you. The gentlelady from Washington, Ms. Jayapal. Ms. Jayapal. Thank you, Mr. Chairman. Secretary Acosta, thank you for being with us today. One of the most basic functions of the Department of Labor is to keep workers safe from danger on the job. I think, in this country, no child or parent or grandparent or partner should have to say goodbye to their loved one in the morning and wonder if they are going to come home safe. I assume you would agree with that? Secretary Acosta. Absolutely. Ms. Jayapal. Thank you. Sadly, our country is still very far from meeting that basic standard. Over 800 people were killed and 29,000 were injured from violent assault at their place of work in 2017. And two-thirds of those who were injured were women. If you look at the statistics, nurses are being beaten to death. Hospital employees are dodging gunfire. And a study by the American College of Emergency Physicians in 2018 found that nearly half of emergency physician respondents reported being physically assaulted. OSHA could help put an end to this by setting specific safety standards to protect workers that are vulnerable to violence at their jobs. Without those enforceable standards, employers cannot be held to account for protecting their workers. And yet you are moving at a snail's pace on these standard-setting measures. A small business review that was originally slated to begin in January 2019 has yet to occur. I know Representative Courtney raised this issue to you before. But with respect, I did not find your answer sufficiently acceptable. And so I wanted to give you another chance to say: What is your timeline for these standards? Why has this been moving at such a slow pace? Secretary Acosta. Well, Congresswoman, two comments. First, if you were to compare this to OSHA rulemaking as a general matter, this is not moving at snail's pace. OSHA rules historically have taken even longer than this, and we are happy to provide the length of time it took to put together, for example, the silica rule or the beryllium rule or others. But secondly, the SBREFA panel that was slated to begin in January is being put together currently. I understand that this is now, I guess, as of this morning, May as opposed to January. But we are moving forward with the SBREFA panel. Ms. Jayapal. I just think this is an urgent--I appreciate that, and I just think this needs your urgent attention. And I say that in the context of your administration cutting OSHA standards budget by 10 percent in 2018. And you have dedicated the remaining funds to rolling back standards. So I think it does not show a commitment, which I believe and I hope that you have, to really ensuring these safety standards. You have the power as Labor Secretary to do this on your own through the Administrative Procedure Act. Can you guarantee me that there will be immediate action on this front? Secretary Acosta. Congresswoman, as you are aware, OSHA traditionally uses the SBREFA process for these rules. It is an important process. It has been set up by Congress. All that said, we are continuing to enforce, and we have the general duties provision, and we have used the general duties provision to focus, in some cases that were particularly egregious, on workplace safety. And I am happy to provide the Congresswoman with the-- Ms. Jayapal. So how fast can you move on this? I guess that is really the question. And then I want to move on to another quick question. Secretary Acosta. So, Congresswoman, I will provide your office with a timeline for a SBREFA panel. But it is moving forward. Ms. Jayapal. Let me move to child labor law. You recently issued a regulation allowing 16- and 17-year-olds who work in the healthcare sector to operate power-driven hoists to lift and transfer patients without supervision. It seems incredibly dangerous to their safety. What was your justification for rolling back this regulation, given the scientific evidence that these teenagers cannot safely do this themselves? Secretary Acosta. Congresswoman, first, it has not been issued. It is a notice of proposed rulemaking seeking comment. And a review of the scientific evidence, I think, shows that, in essence, hoists are less dangerous or-- Ms. Jayapal. What scientific evidence are you referring to? Secretary Acosta. Congresswoman, there are two ways of moving patients. One is the physical method, just putting your back into it. And-- Ms. Jayapal. Is there scientific evidence? You mentioned scientific evidence. Is there scientific evidence that you are referring to? Secretary Acosta. Congresswoman, a review of the evidence, I think, may show that lifting someone by putting your back into it is actually--could be less risky than using a mechanical device. Ms. Jayapal. Secretary Acosta, I was just asking whether there is scientific evidence for this proposal that you are putting forward. Secretary Acosta. And Congresswoman, I am saying that a review of the evidence, main facts, show something that I think is also common knowledge, which is, lifting someone sometimes can be as, if not more, dangerous than using an assistive device. Ms. Jayapal. Here is my concern. The only evidence that I have seen referred to here that you used is, in the official rulemaking document justifying the proposal, you relied on a 2012 survey by the Massachusetts Department of Public Health, specifically a question that was answered by only 22 of 42 respondents on a Survey Monkey online questionnaire. Mr. Chairman, I ask unanimous consent to enter into the record a copy of the fact sheet on this. [The fact sheet referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Secretary Acosta. I recognize that time is expired, but may I respond? Ms. Jayapal. Please. Secretary Acosta. Congresswoman, if I could, with due respect, that is a newspaper article that made that assertion. And if you were to actually read the underlying rule, you would note that is in one footnote of a very large document. And that is not relied upon for the truth of the matter, i.e., the underlying evidence. That is simply relied upon, as it says there have been a number of studies. Footnote. And there are a number of studies that are cited. And so I push back because sometimes the way media covers something becomes truth because it is repeated without folks looking at the underlying record. Ms. Jayapal. I appreciate that, and I will look at all of those documents that are referred to. I will just say that I think this is a very, very critical issue for us to address. Thank you, Mr. Acosta. I yield back. Chairman Scott. Thank you. The gentleman from Texas, Mr. Wright. Mr. Wright. Thank you, Mr. Chairman. Mr. Secretary, thank you for being here today. We have already had a lot of discussion about work force development and the lack of skilled labor and the challenges that poses. I certainly got an earful last week in my district about it. What I wanted to ask you, though, is I know there was some talk early on about, as a streamlining effort, combining Labor and Education. And what I wanted to ask, though, is to what extent the Department of Education and the Department of Labor are collaborating. I know there is a lot of overlap when it comes to work force development. And what do you see in the future as opportunities for more collaboration? Secretary Acosta. Congressman, thank you for the question. Someone that is receiving work force education through a Department of Labor program, and someone that is receiving work force education at a community college, I believe are receiving similar if not the same kinds of education. And something that Secretary DeVos feels and that I feel and that we work very closely together on is the importance of having seamless integration between our various education programs. I see Dr. Foxx up there, and she's fond of saying, ``It is not training. It is education.'' And so this goes to the point that one of your colleagues made. We support one system through billions of dollars. We support another system much, much less. And I think we need to stop unleveling the playing field and telling individuals there are multiple pathways to success, and it can include higher education, but it could also include a welding class. And if you want to become a small business person later, you can go back and you can get a degree later. Mr. Wright. Well, I couldn't agree with you more, and Dr. Foxx. I believe her maxim is, ``We train dogs. We educate people.'' And certainly I think that the two departments could come up with a plan or a proposal for the President that would help streamline some of this if you are not going to combine the departments, at least that one effort. The other question I had to do with a company in my district. It has to do with the 2016 Silica Act. And let me preface by saying that all of us up here want American workers to work in a safe environment and that kind of thing. We all know the dangers of silica to the lungs. But this is not a terribly large manufacturer. They have spent, so far, $2.5 million, and expect to spend up to $4 million, to try and come into compliance with that act. They have never had a silica- related illness in 30 years. And so my question has to do with that OSHA rule and if the department is doing anything or plans to do anything to help manufacturers like this one come into compliance and mitigate the economic impact of coming into compliance. Secretary Acosta. Congressman, we are certainly working with manufacturers of the industry to help them come into compliance. And if you provide us the name of that manufacturer, we will be sure to work with them to the extent that they would like to. Sometimes if OSHA calls and says, ``Can we work with you?'', the manufacturer does not always welcome it. But if they do welcome it, we would be more than happy. We have got a heavy compliance assistance program. I believe that our compliance assistance program saves manufacturers money by going in and telling them what they need to do, and really benefits everybody. Mr. Wright. I just question whether or not a one-size-fits- all approach is appropriate with some of these standards we have come up with. Secretary Acosta. I understand. Mr. Wright. And with that, I am going to yield the remainder of my time back to Ms. Foxx. Ms. Foxx. Thank you very much. Mr. Secretary, the last reauthorization of WIOA went a long way toward empowering the private sector to take leadership in work force development. We have made substantial progress in aligning the system with employer needs. As someone who is actively engaged with this system, where do you feel our reforms have been successful? And where do we need to be doing additional work? What have you heard from State leaders about the impact of the additional flexibility? Secretary Acosta. Congresswoman, empowering localities to direct their work force programs, I think, is critical. The localities know best what they are doing. Everyone is saying we need additional flexibility, especially around in-school versus out-of-school youth. Ms. Foxx. Thank you, Mr. Chairman. Thank the gentleman from Texas for yielding. Chairman Scott. Thank you. The gentlelady from Oregon, Ms. Bonamici. Ms. Bonamici. Thank you, Mr. Chairman. Mr. Secretary, thank you for being here. I am going to start by saying I am disappointed that the President's budget request and recent regulatory actions from the department have failed to adequately support and protect workers. In December of 2017, the department proposed a rule to allow employers to keep and control how to redistribute workers' tips. A report from the Economic Policy Institute estimated that if the proposed rule were finalized, workers would lose about $5.8 billion a year in tips, nearly 80 percent of which would have been taken from women working in tipped jobs. Last year Bloomberg Law reported that as part of the notice of proposed rulemaking, your department prepared and then withheld an economic analysis quantifying the loss of tipped income for tipped workers. Shortly after that report I joined Chairman Scott and two of my colleagues. We sent you a letter requesting a copy of each draft, interim, proposed, or completed economic analysis in connection with or related to the proposed rule. And we have yet to receive a substantive response. Then in March of 2018, Bloomberg Law reported that the department convinced OMB Director Mulvaney to release a proposed rule without sharing that quantitative analysis that your department prepared, even though it was available. As you are aware, the department's Office of Inspector General is now investigating the agency's process in crafting the proposed rule. Have you provided that economic analysis that the Department of Labor conducted on the proposed rule to the OIG? Secretary Acosta. Congresswoman, we have provided, and we have been working with the OIG so that they have, appropriate material for their investigation. As you are aware, the OIG has authority to look at documents within the department. And we are working with the OIG on that-- Ms. Bonamici. Have you provided the economic analysis that Department of Labor conducted on the proposed rule to the OIG? Secretary Acosta. Congresswoman, we are working with the OIG so that the OIG has whatever documents it deems necessary. Ms. Bonamici. So in other words, you are not answering my question. Secretary Acosta. Congresswoman, what I am saying is that we have provided the OIG what it has requested, and it is reviewing that. And so I imagine that--it is not for me to review what the OIG has requested. If the OIG has requested it-- Ms. Bonamici. I am not asking you to review that. I am just asking you if you provided them with the economic analysis, which is a yes or no question. Secretary Acosta. And Congresswoman, what I am saying is the OIG, as any investigator would, I am sure, has asked for a series of documents. We have worked with them so that they have the documents they need. If that is among those-- Ms. Bonamici. Okay. I am going to assume that your answer is no. Will you commit to being more transparent about the adverse effects of proposed rules for workers in the future? Secretary Acosta. Congresswoman, I believe I have been quite transparent. As a matter of fact, I addressed this at a hearing previously where I laid out one of the issues with this. This was a notice of proposed rulemaking, not a final rule. It was a notice of proposed rulemaking where the prior notice did not have an economic analysis, and where one of the difficulties is the--and I do not have the numbers at my fingertips, but if I could, Congresswoman-- Ms. Bonamici. Mr. Chairman--Mr. Secretary-- Secretary Acosta.--because this is important. The-- Ms. Bonamici. I know it is important but I am going to reclaim my time because I have another question. Recently I chaired a hearing on persistent gender-based wage discrimination, and we heard witnesses describe the heavy burden of proof for holding employers accountable. And one of the challenges in enforcing antidiscrimination laws and proving a pay disparity is identifying an employee of the opposite sex in an equal position who is paid more. So the House recently passed the Paycheck Fairness Act to try to close that loophole. The department's Office of Federal Contract Compliance Programs, or OFCCP, has an obligation to audit Federal contractors for pay discrimination. And in the past, Directive 307 allowed the OFCCP to decide which workers could be considered in making that determination about whether they were doing the same job. But unfortunately, last year the department rescinded that directive and implemented a new policy that allows employers to decide which workers should be compared. Now, that is pretty concerning, that the department is allowing the contractors to shape the outcome of their own audits. The wage gap persists in nearly every line of work, regardless of education, experience, occupation, industry, or job. So do you agree that detecting pay discrimination and closing the wage gap affects the lives of working families? Secretary Acosta. Congresswoman, first I would say that your characterization of the department's actions are just factually incorrect. At no point has the department said that employers can determine which employees are looked at, and I just do not think that is an accurate characterization of what the department-- Ms. Bonamici. The department did-- Secretary Acosta. But ultimately, going to your question, yes. I do agree that it is important to eliminate wage disparities. Ms. Bonamici. And do you agree that OFCCP's audits are one way to detect pay discrimination? Secretary Acosta. Yes, I do. Ms. Bonamici. And do you agree that the department rescinded Directive 307? Secretary Acosta. Congresswoman, I do not have the numbers of the directives on the top of my head. But we did attempt to provide more transparency to the employer as to what categories of employees we would be looking at. Ms. Bonamici. Yes. I would appreciate a followup on whether Directive 307 was rescinded. And I'm out of time. And I yield back. Thank you, Mr. Chairman. Chairman Scott. Thank you. The gentleman from Kentucky, Mr. Guthrie. Mr. Guthrie. Thank you very much. Thank you, Mr. Secretary, for being here today. And we've talked before. I have a lot of ESOPs in my district. One of the largest in the country is in my district. And I believe they--particularly this, the ones that I'm familiar with have provided extremely lucrative retirement plans for their employees. Could you just share an update on the DOL's activities on ESOPs, and what Congress can do to ensure ESOPs continue to be created and thrive? Secretary Acosta. Congressman, as we've discussed previously, I strongly support ESOPs. I think ESOPs are of benefit to employees. We enforce the law, and that includes ensuring that ESOPs are done appropriately, that the stock is priced fairly. One thing that I will say, and to just update the Congressman, I think perhaps in part because of the Department of Labor's enforcement actions, the industry is, is conforming much more closely to the law. And so, I think the enforcement actions peaked sometime around 2013 and have been declining since, as industry comes into greater conformity with what pension laws require. If there are more specific issues, we're certainly trying to give a lot of compliance assistance. But at the same time, every industry has bad actors, and we do enforce in enforcement. Mr. Guthrie. And you absolutely should. Because as I said, it is employees' retirement security involved in there. And the biggest issues are the small-, mid-sized trying to get--because they're closely held companies. That's why they're becoming ESOPs, to get the proper valuation, and that's important. But the one thing that you hear though--and I do agree that there are bad actors, and absolutely need to be used the compliance rules. But I guess some questions I've had just of the clarification guidelines of the people who say, ``Here are the clarification--here are the guidelines.'' This clarifies what we need to do pertaining to stock value to ensure that we comply with all of them. Just clearer guidelines I guess is what we're looking at. Secretary Acosta. Fair. And let me suggest if there are particular areas where the guidelines need to be more clear, we'd appreciate knowing that, so that we can focus in the inquiry. Mr. Guthrie. Okay. I owe you that. Thank you very much for that. And then apprenticeships, that's an area that, that we've also talked about, that a lot of us here on both sides of the aisle are very interested in. Look, in Kentucky, we have some great growing urban areas, but we have some very rural parts of our State. And rural broadband has been important. One of the biggest issues we hear from people wanting to deploy broadband, cell towers, all the other things, is the access to workers who are able to do this type of work. It's very critical skills, and my understanding, very lucrative pay for these types of work. Would you talk about what the Department of Labor is doing to encourage apprenticeships? Particularly the 5G Rating Workforce. Secretary Acosta. So, certainly. So these are great jobs. They pay well. And you know, the skills are very much in demand. And so, in this and other areas, we are trying to encourage individuals to make a choice. ``What skills do you want?'', and empower them to obtain those skills. And we've got a lot of infrastructure and money and funding for the college- based skills, but less so for other skills. And so apprenticeships are a mechanism of doing that. Mr. Guthrie. Okay, thanks. And also I introduced a Partners Act in this Congress which supports the creation and expansion of industry partnerships to help small- and medium-sized businesses partner together to develop work-based learning programs and apprenticeship programs. What is the department doing to promote these size businesses to join together to form apprenticeships? Secretary Acosta. Well, one of the concepts of industry- recognized apprenticeships is that small- and medium-sized businesses do not have the resources or wherewithal to, to have a registered apprenticeship. A registered apprenticeship application, we've talked about it a lot today. But sometimes they're 90 to 100 pages long. Many small businesses are just not going to do that. But if they band together as an industry, then that's different, and then we could have these industry- recognized apprenticeships where small- and medium-sized businesses can participate. Mr. Guthrie. Well, thank you. And I do appreciate your focus on apprenticeships and the skilled work force. And that runs throughout the administration, runs throughout Congress. And we want to get people the skills they need to earn the types of living that provide not just a job but a career, and one that can support their families. And I think we, everybody here in Washington agrees with that, and hopefully we can come to the right policy to make that happen. Thank you very much. And I will yield to the Ranking Member. Ms. Foxx. I thank the gentleman for yielding. Secretary Acosta, Congress intended for the Labor Management Reporting and Disclosure Act to be applied broadly to combat union corruption. Unfortunately, the Obama Administration rescinded several important union reporting requirements, that would have provided valuable transparency for rank and file workers. One of those pertains to so-called intermediate bodies, which are mid-level State or regional organizations in the union hierarchy, made up of public employees. These intermediate bodies do not currently have to file financial disclosure reports under the LMRDA, but they are subordinate to larger unions that are covered by the LMRDA. Re-imposing the LMRDA reporting requirements on intermediate bodies has been on DOL's regulatory agenda for nearly 2 years. It has yet to advance. Can you discuss why this reform is important and any plans for the department to move forward with it? Secretary Acosta. Congresswoman, I see that the time has expired. Let me say briefly, we are actively looking at that now. Chairman Scott. Secretary, you can respond. You can respond. Secretary Acosta. So, we are actively looking at this now. This is an important issue. Ms. Foxx. Thank you. Chairman Scott. Thank you. The gentleman from California, Mr. Harder. Mr. Harder. Thank you so much, Mr. Chairman. And thank you so much for joining us today, Secretary Acosta. I know many of my colleagues are touching around some of the real budget cuts to the Labor Department and how they're going to hurt each of our individual communities. I actually want to put that on the side for a minute and talk about the Job Corps program. I know we've talked about that a little bit. But I want to take a little bit of a different sense of it. This is a program that I think really works. And even the Department of Labor website says that 90 percent of Job Corps graduates go on to careers in the private sector, enlist in the military, or move on to higher education or advanced training programs. Even in your own testimony today, you talked about how you want to reform the program and make it work even better, doubling down on the parts of the program that are successful, which I completely agree with. We have some real issues in making sure that folks actually can get the career education that they need to be gainfully employed in our economy. But here's the issue. I represent the California Central Valley, and we don't have any Job Corps centers. In fact, most of the Job Corps centers that exist are many hours away. We have one in Sacramento, which is an hour and a half, 2 hours, plus. We have one in San Francisco, two, 3 hours for most of the people in my district. Do you know the unemployment rate in Sacramento? Do you know it, Mr. Secretary? Secretary Acosta. The unemployment rate in California tends to be above the national average, and so I imagine it is above the national average. Mr. Harder. So, in Sacramento, it's actually three and a half percent. In San Francisco, it's two and a half percent, which is pretty good. In my district, any guess what our unemployment rate is? It's about 7 percent. In other words, we have real challenges making sure that we actually are connecting people into jobs. And yet every single job center that exists in California is in an urban area that has on average much lower unemployment rates than my district. And yet, we're not actually helping the people that need the most help. Let me tell you why this matters. Last week I was in Tracy. I met with a guy named Ben Hatfield. He's 21. He's been out of work. He's been having trouble finding a job. He's actively trying. But he's couch surfing, relying on help from friends. He doesn't own a car. He wants to go to places like the job center in Sacramento. It's 2 hours away. He can't make it. What is he going to do? This is somebody who has demonstrated the desire, and this is even before we're getting to the fact that we're cutting this program by 40 percent. This is somebody that really wants to work. So, you know, Chairman, you yourself have said you want to double down on this program. You're in the process of re-tooling it. What are you going to do to expand access to Job Corps programs outside of the major cities that have these low unemployment rates? Secretary Acosta. Congressman, one of the--I think we might agree at the end on this. One of the issues around Job Corps is they're around these large, very expensive structures. And so, I have pilot project authority. And one of the pilot projects that I shared earlier today is something called Job Corps Scholars. The idea is, we're putting out a request for a proposal for community colleges to set up what we'll call mini Job Corps. Cohorts of 40 students, within that community college. They would receive funding. The individuals would then go to that community college and obtain the skills. They could be residential, just like a Job Corps, or not residential, depending on what the community college thought made sense, just like some Job Corps are and some are not residential. And that would include funding for counseling and other services that are also available in Job Corps. The concept is, let's-- Mr. Harder. Sorry to interrupt you, Secretary. But am I correct in believing that about a fifth of the current job centers for the Jobs Corps are going to be closed with this budget? Secretary Acosta. So Congressman, we have been having a debate over the Job Corps budget well on several decades. And in all candor, I met with a Secretary of Labor going back to a President that is no longer with us. Mr. Harder. Mr. Secretary, that's a great answer to a different question. Are we cutting these centers? Are there going to be fewer centers in 5 years if this budget passes? Secretary Acosta. So Congress is going to determine what the budget will be, and based on the budget, we'll determine what is and is not cut; what I'm saying is that-- Mr. Harder. Hard for me to imagine we cut a budget by 40 percent and we don't actually cut some of the centers. Secretary Acosta. But what I'm saying, Congressman, is that irrespective of where the budget ends up, we are using pilot project authority to try different approaches. And one will go to your concern which you articulated, which is how do we empower areas that don't have a center. Mr. Harder. Mr. Secretary, sorry. I know we're running out of time. Let me articulate again, what I think my concern is, which is the fact that this is a proven program with high success, and yet all the centers that exist are in areas that don't actually have the same needs as my district. Right? Sacramento, San Francisco, but not in an area with 7 percent unemployment like ours. And yet you're trying to cut this budget by 40 percent, when in fact you say we should be doubling down on it. We should be expanding centers to where we need to be, going to the Central Valley and other areas that actually need to be getting people like Ben a real fair shake. Thank you, Mr. Chairman. And I yield back my time. Chairman Scott. Thank you. The gentleman from South Carolina, Mr. Timmons. Mr. Timmons. Thank you, Mr. Chairman. Thank you, Mr. Secretary, for taking the time to come and answer our questions here today. I'm going to begin talking about the President's budget. It seems that the President tried to thread the needle, and fully fund the military, which I would view as our core function of government. Our government needs to have a strong national defense. But also maintain spending levels below the limits placed under the BCA of 2011. So we have a lot of people in Congress that do not appreciate we have $22 trillion worth of debt. We had a trillion dollar deficit last year. It seems--I'm also on the Budget Committee, where we've talked about the President's budget at length. It seems that it's not really as big a priority as it seems in my mind. Literally, this is a national security threat, and I don't understand why Congress cannot spend within its means. Could you discuss some of the--your particular budget, it made strides toward prioritizing the country's work force development, but also consolidating some of the programs and eliminating waste and fraud. Could you discuss how you're going to do that? How you're going to do more with less? Secretary Acosta. So, Congressman, thank you. First, let me say that the budget approach, first and foremost, tried to even slightly increase the enforcement side of the House. Because as we've heard so much this morning, enforcement of labor laws matters. It's important that--wage laws, the safety laws. And so first and foremost we prioritized enforcement. Then with the remaining funds that are left within budget constraints, we focused on those work force programs that work the best. WIOA, for example, it's a formula funding. It goes straight to the States. It has very, very strong metrics. Job Corps--and in all candor, we've talked about it a lot. There's some centers that have good metrics and there's some centers that spent tens of thousands per student and don't have the results that show. And so what we're trying to do there is try different approaches. The--the program that--the program I was commenting on, the Job Corps Scholars would actually let individuals go to community college, including residential perhaps, for half the price of a Job Corps program. And so there are ways of bringing efficiencies to the system and doing more with less. Mr. Timmons. Thank you. Can you think of any ways that Congress could help be of assistance in this endeavor? Secretary Acosta. So one of the areas that I'm looking at that I think is worth considering is I think it's important that we have consistent metrics throughout and across programs. Because it's very hard to compare programs and the outcomes of programs when metrics are different, right? And so we say a program is great, a program is successful, when in fact, if we had the same metrics, you would see that some programs are more successful than other programs. And so for example I've shifted the metrics in the Job Corps program to ``did the individual get a job? Was it in the area for which they actually received their education? Did they keep the job? And did the job represent a wage increase?'' Those are pretty straightforward, simple metrics. That's why individuals go through a job education program. And so I think, as something I'm trying to look within the department is, can we bring consistent metrics to all these? And I do think that to the extent that the metrics are statutory, there is a value to having consistent metrics, so you really can judge programs side by side and say which ones work and which ones don't. Mr. Timmons. Thank you. I'm going to touch base on something Dr. Foxx mentioned earlier, that overtime proposed rule. So 2004, there's $23,600. 2016, President Obama made it $47,476. And the proposed rule that is not filed yet is $35,307. That's all great. I have a lot of businesses in my district that are trying to plan long-term, and I realize that there's no deadline on when the rule becomes final. But I just want to convey to you that it is something that is very important to small businesses, to businesses of all sizes, and the more quick--the faster we can get to a final rule, the better off the country will be and my district will be. And with that, I will yield back the remainder of my time. Secretary Acosta. Thank you. Chairman Scott. Thank you. Okay. The gentlelady from Georgia, Mrs. McBath. Mrs. McBath. Thank you, Mr. Chairman. And thank you, Secretary Acosta, for being here today. I'd like to take some time today to bring attention to a rapidly increasing problem in our Nation. It's maternal health. As you may know, the maternal matort--mortality rate in the United States is among the highest in the developed world, and it continues to rise. Georgia, which I represent, Georgia's reported rate is also on the rise, and higher than the national average. There are racial disparities to address as well, and I'm thankful for my colleagues, Representative Adams and Representative Underwood, for leading the Black Maternal Health Caucus, so that we can focus on solving this growing problem. Secretary Acosta, the Newborns and Mothers Health Protection Act provides protections for mothers and their newborn children, in relation to the length of their hospital stays following childbirth. This is vital to ensuring that both mother and baby have access to the care that they need. The Department of Labor is responsible for ensuring that employer- provided group health plans comply with this legal requirement, one that has been in law for over 20 years. Secretary Acosta, can you provide the committee with an update on enforcement efforts in this specific area? Secretary Acosta. Congresswoman, I can certainly provide the committee with detailed enforcement efforts in that area. I do not have those with me, but I share your concern and I will be more than happy to provide both the committee and you with detailed enforcement efforts. Mrs. McBath. Okay. Thank you very much, Mr. Secretary. Secretary Acosta. And let me go on then. The ACA amended the Fair Labor Standards Act to provide critical protections for breastfeeding mothers. Under this provision, employers can no longer prevent breastfeeding moms from taking breaks to pump or force them to pump breast milk in the bathroom. Yet a study conducted in 2016, well after the passage of the ACA, shows that more than half of women are still denied private space, break time to pump, or both. Given that more than half of the women continued to be denied these protections under this provision, how many enforcement actions did the Department take related to this provision last year? Secretary Acosta. Congresswoman, I can provide you with the specific number of enforcement actions. And let me just say, I'd appreciate if you can share that study. And if you have specific thoughts for what we can do to inform the employer community, this is something that I agree with you is an important issue to address. And in addition to enforcement, something that I have found is very effective is a compliance campaign. Some way of calling publicity to the matter. And I certainly welcome your input as to how we should go about doing that. Because that may be a way to, on a broad basis, ensure that if in fact employers are not aware of their requirements, the employers need to be made aware of those requirements. Mrs. McBath. So, in other words, Secretary Acosta, then really you have no idea whether or not these provisions have been put in force? Secretary Acosta. No, Congresswoman. What I said is I can give you any number of enforcement statistics. I can tell you, for example, that the Wage and Hour Division, this past year, had its best enforcement year ever. It collected more than $300 million in back wages. I can tell you that OSHA as a whole exceeded 32,000 inspections for the second year in a row, which is more inspections than it has in previous years. I can tell you that on the pension side, we collected and returned to plans $1.7 billion. Now, if you ask me to itemize that by each specific enforcement category, I don't have that information right here and right now, but I'm happy to try to provide that information to you, to the extent we track it by enforcement category. Mrs. McBath. So, just, let me just say this, though, that if the mator---mortality rates here in the United States is among the highest in the developed world, then definitely we are not doing enough. Let me ask another question. If more than half of the women are still being denied the care that they're entitled to under the law, then I imagine that, you know, the enforcement efforts are still not up to the levels that they should be. Would you support increased funding to increase inspections and compliance with this protection? Secretary Acosta. Congresswoman, first let me just say, my staff just informed me that as an example, and we're happy to provide this, we just brought an enforcement action in Phoenix against an employer that in fact was violating the breastfeeding statute. And so the point I made earlier--and I'm happy to provide you with details of that enforcement action-- is we are enforcing. And I can provide you with details. Now, with respect to funding, as you well know, the funding and the budget issue is an administration-wide question, and we defer, obviously, to OMB on that matter. Mrs. McBath. Thank you for being here. I yield back the balance of my time. Chairman Scott. Thank you. The gentleman from North Carolina, Mr. Walker. Mr. Walker. Thank you, Mr. Chairman. Thank you, Mr. Acosta for being here. We're glad to have you. I've got six or seven questions, so I'm going to move pretty quickly through this, so we could get through them. Apprenticeships are an extremely important tool for work force training, as we would both agree. I want to thank the Secretary for the department's recent guidance on the industry-recognized apprentice program, or IRAP. This will provide flexibility to businesses and ensure workers receive the most applicable and relevant work force training. And here's my question. Would you agree that the creation of the IRAP program would expand, or will expand apprenticeship opportunities for the next generation of our work force? Secretary Acosta. I would agree. Mr. Walker. Okay. How would those expanded opportunities translate to our economy? Secretary Acosta. Our economy needs workers. For the first time since we've been keeping this data, we have more open jobs than we have individuals looking for jobs. And one of the issues we have is a skills gap. And so providing the skills to individuals to fill those jobs will increase wages and increase our economy. Mr. Walker. Every Member of Congress, if they were to agree on one thing, it would be that all the industries and businesses that we visit are asking one thing. ``We need helpers. We need more workers here.'' The IRAP program would put industry leaders in charge who are best equipped to determine the skills and techniques necessary to meet the needs of varying industries. How would you respond to the claims made by my Democratic colleagues that the IRAP program would offer lower-quality training programs, and essentially impose additional burdens on these workers? Secretary Acosta. So Congressman, I think it's important to recognize, we are not eliminating or doing away with registered apprenticeships. We're creating an alternative for those industries that have found that registered apprenticeship programs don't work for them. And what we are doing is, we're not putting the industry in charge. We are, in essence, saying that the industry should create a third party, often an association, that creates, that almost becomes an accrediting body. I don't want to use ``accrediting'' because that's higher education. But a body that creates standards, that enforces those standards, that basically says, ``This is what a quality apprenticeship program looks like in our industry'', and recognizes, you know, an apprenticeship program in nursing is very different than one in advanced manufacturing. And it's not about time, it's about skills. Mr. Walker. That's very well-articulated. I recently visited Machine Specialties. This is a locally owned manufacturing company in my district. They're in central North Carolina. They offer apprenticeship programs to provide workers with individualized training. Can you expand on the unique benefits of industry-based apprenticeship programs such as Machine Specialties and why it is necessary for us in Congress to consider both registered and industry-based programs when developing the legislative proposals? Secretary Acosta. Well, Congressman, there are any number of businesses out there that are saying, ``We're offering apprenticeship programs.'' And in fact they're not registered apprenticeship programs. They're just apprenticeship programs. So what we're trying to do is, for those businesses that say, ``We have an apprenticeship,'' or for those businesses that are offering work force education, we're trying to bring about industry-wide standards, so that industries can say, ``this is our standard within the industry and we now have industry- recognized apprenticeships.''. Businesses across the board are recognizing, for them to hire educated, skilled work, they need to be part of the equation, and we want to give them a way to be part of that equation in a way that creates skills that are transferrable from business to business, because that transferability will empower the individual. Mr. Walker. No question about it. Similar to the financial resources needed to attain a 4-year college, such as Pell Grants, students participating in apprenticeship programs need financial assistance. We agree. What would you say are some of the burdens faced by low- income workers seeking to join an apprenticeship program? Let me add to that, if you could put the two together. How would expanding Pell Grants to include short-term training programs empower and strengthen future generations of the work force? Secretary Acosta. Congressman, I've talked previously about the importance of expending, extending programs like Pell to include all skills acquisition, both those that meet the formal requirements of Pell--but there are any number of students who are taking the same classes, the same courses, maybe even at the same institution, but because it's a certificate that doesn't meet the hours requirement, they don't have access to that student support. And I think that un-levels the playing field. We need to tell all Americans, all pathways to success are good and should be empowered and you choose. Mr. Walker. Secretary, I appreciate the Department of Labor's work on the new proposed rule clarifying joint employment. Can you explain where the four-part joint employer test was derived from, and how it will provide uniformity when debated in our court system? Secretary Acosta. Certainly. So the courts of appeals differed sharply on exactly what the joint employer test should look like. And so in essence what our rule did was it said let's look at the plurality, that which is shared by the most courts of appeals, and let's make that into a formal rule, so that businesses know what the rules of the road are, so businesses can plan accordingly. Mr. Walker. Thank you. Mr. Chairman, I yield back. Chairman Scott. Thank you. The gentlelady from Washington, Dr. Schrier. Ms. Schrier. Thank you, Mr. Chairman. Thank you, Secretary Acosta, for being here today. I'm speaking today as a pediatrician, healthcare professional, about protecting our frontline healthcare workers from what seem to be more and more threats to our health and safety. And I know that a health and safety standard that would protect frontline healthcare workers is sort of on hold. It's been on hold for about 5 years. And I've got to tell you that from my standpoint, we don't really know who the frontline person is going to be. We think about our emergency room staff. We think about nurses and doctors there. But it could be the person at the front desk, when somebody walks in the front door and coughs in their face. And as we are seeing, we've seen SARS. We have C-diff. We have MRSA, Ebola, that is still present in Africa and that could come to our front doors. I wanted to ask you about what's being done to protect healthcare workers, and even this year's flu is particularly lengthy. And we can reflect on the Spanish Flu in 1918 that killed 3 to 5 percent of the global population. And so there's a certain degree of, of a need to protect doctors, because if doctors die then we can't protect everybody else. But there's also protecting doctors because if, if we feel that our own lives are in jeopardy, we may not show up to work. And you know, it is our duty to protect our patients and do no harm. But I can tell you that our families do worry sometimes when we go to work. And so I wanted to ask you about a timeline for getting those standards to protect frontline healthcare workers. Secretary Acosta. So, Congresswoman, thank you. Thank you for acknowledging that this has been in the works for a while. As I mentioned earlier, we're in the process of putting together a SBREFA panel. And so we are moving forward with this. It is one of the SBREFA panels that we're putting together. A SBREFA panel, it's a panel that OSHA puts together to receive input from various stakeholders as it develops a rule. And I'm happy to provide you a timeline, but this is not ``we're kicking the can down the road.'' This is, ``we are moving forward.'' And if I could just-- Ms. Schrier. Excuse me. Was that one about violence prevention or is that about infection prevention? Secretary Acosta. I'm sorry. So that is about violence. And so my apologies. Often when we talk about healthcare workers, one of the issues is the violence. And so I inadvertently thought you were merging the two. And so my apologies. With respect to infection, I will have to--and I am happy to work with your office and in followup if there are specific questions or let you know where we are on that. I am less familiar with that. Let me, if I could, though, raise a related area, which is I shared the numbers of workplace fatalities associated with the use of drugs, typically drug overdoses, that has gone from 82 to 272 in the span of just under 5 years. And so if there are specifics around that, I would also appreciate any input in that area. Ms. Schrier. Sure. I would be happy to work with you and happy to work on a timeline. You just never know what diseases are around the corner. I had another question for you about the 2017 tax plan. We typically refer to it as something slightly different than that, which I believe you are a pretty strong proponent of. When it was signed into law, you issued a statement that said that this tax reform was, quote, ``great news for any American who has a job, is looking for a job, or creates jobs.'' And you even said that everyone is winning with these tax cuts. And I recall days after the tax cuts this big windfall for corporations, that 86 percent of the benefit went to the top 1 percent into corporations, that $1,000 bonuses were being handed out. It seemed like a windfall. We all kind of were holding our breath to see if this would actually translate into something meaningful for workers, like increased wages, more jobs. And, in fact, the numbers came out a little differently. So GM has shed roughly 3,000 hourly and salaried jobs in Ohio since the tax cuts became law. And, in addition, AT&T has eliminated over 11,000 jobs since the tax cuts became law. And so they got this moment of great PR with a $1,000 bonus, but then the real effect on American workers is that they are losing their jobs. And so as the person who is there to protect American jobs, I wonder if you could comment about what you are going to do to keep these jobs at home. Secretary Acosta. Congressman--Congresswoman. I apologize. It is, you know, a few hours. So, first, let me just say OSHA does have rules regarding blood-borne pathogens and is looking at our hazard rule regarding influenza. And so we are happy to followup. With respect to the second question, we have an amazing economy right now. And that doesn't just happen. And so I understand that it is always possible to pull out one anecdote and one story, but I do think we need to acknowledge that we have an amazing economy, whether that is tax cuts, whether that is deregulation, whether that is folks feeling confident about America. Something is working, and it is working well because unemployment is lower than it has been in a long, long time; wages are going up more than they have gone in a long, long time. Ms. Schrier. The data there, again, you can look at how in a lot of ways. I can tell you in the State of Washington, Amazon is doing great, Microsoft is doing great, Starbucks is doing great. But if you get out, outside of Seattle, we have pockets where unemployment is 50 percent. And so it is really important to think about the whole picture. The number, the overall number, tells only part of the story in that if people are underemployed or their wages are not increasing, we need to stand up for workers. Secretary Acosta. Congresswoman, thank you. Chairman Scott. Thank you. I understand the gentleman from Virginia is going next. And, by the way, I appreciate your conveying my condolences for not being able to make our meeting yesterday. Thank you. Mr. Cline. Mr. Chairman, thank you. I covered as best I could, but I am no replacement for you. Chairman Scott. Well, I appreciate it. Thank you. Mr. Cline. Secretary Acosta, thank you for being here and for the work you have done thus far in your time as Secretary. The Department of Labor currently administers and enforces more than 180 Federal laws affecting approximately 10 million employers and 143 million workers. But under your leadership, you have been rolling back an unprecedented amount of burdensome regulations and saving taxpayers over $400,000,000, more than any other Federal agency. So thank you. In addition to increasing opportunities for employers to make the working world more hospitable to all, unemployment has struck its lowest point in 49 years. Your work impacts working Americans that are the backbone of this country. As a Virginian, I am proud that my State is a right-to-work State, which is one of the many factors as to why Virginia frequently ranks among the top States in which to do business. Unfortunately, this is being threatened, not only by uninformed State legislators who advocate socialist ideologies and are beholden to unions and the contributions that they provide but also several Presidential candidates, including some from right down the hall in the U.S. Senate, who seek to drag the economies, drag vibrant economies, like the economy of my commonwealth, down to the level of underperforming States, like Vermont, Massachusetts, New York, New Jersey, and California. I believe that every American deserves the right to create their own success from their own volition, free of the requirement that they join a labor organization simply to get or to keep a job. And Virginia is strongly defensive of its right-to-work law and does not wish to repeal it. Can you please outline the administration's position on maintaining State right-to-work laws and address how repealing or banning these laws at the Federal level would impact a State or a country's economic performance and competitiveness? Secretary Acosta. Congressman, thank you for the question. As you are aware, there have been a number of states recently that have considered these statutes, these laws. And, ultimately, this is a State-by-State issue. And some states, like the commonwealth, choose to go in one direction. Other states--and I think you mentioned some of them--choose to go in another. And so this really is a State issue. And I think one of the strengths of our nation is to allow states to decide many issues for themselves, whether it is how to proceed on work force education or whether it is how to proceed on right-to-work. Mr. Cline. And what are you doing to ensure that the freedom for workers is kept intact for all Americans, regardless of occupation? Secretary Acosta. Well, Congressman, so if your question is, what are we doing to enforce State law, that is not one of the Federal laws that we enforce. Certainly if your question is regarding OLMS, OLMS is very active. I believe it brought over 200 investigations last year. And it had an incredibly high number of convictions regarding fraud or other types of inappropriate action and criminal action that took place regarding unions. The specific figures I believe are 223 investigations, and I forget how many convictions. Mr. Cline. Do you share the views of the President that many unions rip off their membership with ridiculously high dues? And are you working through the Department to try and address these excessively high union dues that in closed union shop states are burdening workers and their families? Secretary Acosta. So, Congressman, if the question is what are we doing on Janus--and it sounds like that might be where the question is going--you know, obviously, the Department and the administration took the position that it did in Janus. The Supreme Court issued the case. And then I believe that the decision was a correct and appropriate decision. It is, in essence, what we had argued. And certainly that is now the law of the land and the law that unions will have to follow. Mr. Cline. And are you working to enforce that law? Secretary Acosta. To the extent it comes within our authority, yes, we are. Mr. Cline. Thank you. Mr. Chairman, I yield back. Chairman Scott. Thank you. The gentlelady from Illinois, Ms. Underwood. Ms. Underwood. Thank you, Mr. Chairman. Secretary Acosta, for women, reproductive healthcare is healthcare. But your department has issued rules that deny the science of women's healthcare and allow employers to deny workers health insurance that covers contraceptives. Despite the fact that the courts have repeatedly blocked these rules, you and this administration are continuing your efforts to deny women contraceptive coverage. I am curious. Do you know how much on average contraception costs for women if it is not covered by their insurance? Secretary Acosta. Congresswoman, I certainly am aware it is expensive and the price likely will vary. Ms. Underwood. Okay. So if you want to just make a best guess, what would that be? Secretary Acosta. Congresswoman, I don't think it is appropriate to speculate. It is expensive. And I can tell you that whether it is contraception or drugs, often it is beyond the ability of many individuals to pay. Ms. Underwood. That is right. It is very expensive. Without insurance coverage, birth control pills can cost $600 a year. Plus, the appointment to get a prescription can cost another $250. Do you know that women use contraceptives not just to prevent pregnancy but also to treat medical conditions? Secretary Acosta. Congresswoman, I am not a physician. I imagine if it is being used for medical conditions, that would be pursuant to a physician-supervised-- Ms. Underwood. So I will take that as a yes. Do you know what those medical conditions are? Secretary Acosta. Congresswoman, I am not a physician. So I really couldn't opine as to what those medical conditions would be. Ms. Underwood. Okay. So let me tell you. Women use birth control to treat polycystic ovary syndrome, endometriosis, and anemia. These conditions are painful. They are linked to ovarian cysts, heavy bleeding, and infertility. And that is not all. I am a nurse. And I am the cofounder of the Black Maternal Health Caucus. And I can tell you that for far too many women in this country, pregnancy can be dangerous or even deadly. One of the judges who blocked your rules wrote that they would cause over 70,000 women to lose contraceptive coverage, 70,000 women. Women's lives and women's health depend on their ability to access contraceptives. Your actions, your actions, sir, are denying science and putting American women at risk. Moving on, last year, your department approved a rule extending the limit for short-term, limited-duration health insurance plans from 3 months to 3 years. These plans are commonly called junk insurance because, although they are very profitable for insurance companies, the coverage that they provide to patients is trash. Now, Secretary Acosta, I only have a few minutes. So I need you to stick with a ``Yes'' or ``No'' only, please. Yes or no, are you aware that junk insurance plans are not required to cover people with preexisting conditions? Secretary Acosta. Congresswoman, I would hesitate to use the word ``junk'' insurance. Ms. Underwood. Sir, I am not asking you to characterize. I am asking you if you know whether they are required to cover people with preexisting conditions. Yes or no? Secretary Acosta. Congresswoman, to some extent, your question characterized, and so I have to push back. If the question is whether short-term, limited-duration plans have all of the protections of other plans, such as those available through association health plans, then the answer is yes. They do not-- Ms. Underwood. That is not the reference. Secretary Acosta. Then the answer is they-- Ms. Underwood. Reclaiming my time, sir. Secretary Acosta. Yes, they do not have all of the protections. Ms. Underwood. Okay. Yes or no, are you aware that they are not required to cover prescription drug costs? Secretary Acosta. Congresswoman, I do not. I certainly can provide the list of the areas of coverage for association health plans, whether they be in-- Ms. Underwood. I am not asking about--sir, I am not asking about association health plans. The question is about short- term, limited-duration insurance plans. Yes or no, are they required to cover prescription drug costs? Secretary Acosta. I would have to consult to see which are the requirements that they have to cover. Ms. Underwood. Okay. Are you aware that they are not required to offer maternity coverage, yes or no? Secretary Acosta. Congresswoman, as a general rule, the coverage of short-term, limited-duration plans is less than that of other plans. Ms. Underwood. Okay. Yes or no, are you aware that junk plans can allow insurance companies to retroactively cancel coverage after a patient files a claim? Secretary Acosta. Again, Congresswoman, I am aware that the protection offered is less than that of other plans. Ms. Underwood. Okay. Secretary Acosta. I could not go to this-- Ms. Underwood. So, just for the American people to understand what we were outlining, these short-term, limited- duration insurance plans are not required to cover preexisting conditions. They are not required to cover prescription drugs. They are not required to cover maternity coverage. And no, they are not required to cover inpatient hospitalizations. Now, sir, you have been an attorney interacting with the Federal Government for several decades now. So it is fair to say that you are familiar with the Administrative Procedures Act. Right? Secretary Acosta. I am familiar with the Administrative-- Ms. Underwood. Okay. Yes or no, are you aware that this Act requires you to consider comments from the public when making rules? Secretary Acosta. I am sorry? Ms. Underwood. Are you aware that this Act requires you to consider comments from the public when making rules, issuing regulations? Secretary Acosta. Yes, I am. Ms. Underwood. Okay. Yes or no, are you aware that 98 percent of the comments from healthcare groups oppose the rule that you approved? Secretary Acosta. Congresswoman, the rules were primarily reviewed by HHS. So I cannot speak to the-- Ms. Underwood. It's a tri-department rule, sir. Yes or no? Secretary Acosta. Congresswoman, again, I could not speak to the percentage. I will say--and I think it is important-- that we have, through associational health plans and others, tried to provide-- Ms. Underwood. I am not asking about association health plans. Secretary Acosta.--tried to provide low-cost-- Ms. Underwood. Sir, reclaiming my time, I am not asking about association health plans. This line of questioning is about short-term, limited-duration insurance plans. Yes or no? Secretary Acosta. I cannot confirm your percentage. Ms. Underwood. Okay. Thank you. This administration has been relentless in its attempts to undermine access to healthcare. In nursing school, we are taught how important it is to listen to our patients. And, instead of listening, this administration is ignoring patients and nurses and doctors. The administration is not protecting moms or kids or people with preexisting conditions. It is attacking them. And let me tell you, sir, not on my watch. Mr. Chairman, I yield back. Thank you. Chairman Scott. Thank you. The gentleman from Texas. The gentleman from Pennsylvania, Mr. Meuser. Mr. Meuser. Thank you, Chairman Scott and Dr. Foxx, for holding this hearing. And thank you very much, Secretary Acosta. The Trump administration has done some fantastic work over the last 2 years. Unemployment hit the lowest point in 50 years. The economy has added 4.6 million jobs over the last 2 years, which also means that millions more are receiving health care than were before. And I have recently learned that the veterans unemployment of our veterans is only 2.9 percent, also the lowest in decades. I represent Pennsylvania's 9th Congressional District, a very hard-working, somewhat rural district with great potential for revitalization and economic growth. I know my district has already benefited from the wage growth and job creation that we have seen as a result of the Republicans' Tax Cuts and Jobs Act. And topics that I want to talk about today--some have been covered, but some have not--that will benefit my district include the Opportunity Zones that are part of the Tax Act; the access to association health plans, primarily the idea of just lowering deductibles and premiums, which obviously will add to people's disposable income; and work force development. So, starting with Opportunity Zones, which is a huge priority for me and my district, I am working with HUD, the administration, the Treasury, and private sector on making sure the communities in my district can benefit from this program. Rules continue to be written by Treasury, should be out in June. Is this something that we can work on together? Is this something on your priority list? Secretary Acosta. Absolutely, Congressman. Mr. Meuser. Okay. All right. Well, good. I will look forward to that, then. I am sure you are aware, despite your Department's and the Trump administration's desire to expand the association health plans, there are barriers that continue in various states to its participation. Consumer choice, access, competition, which could lower, again, premiums and deductibles, is very, very important on the AHPs or even if you would want to expand on what is being done to help lower premiums. Maybe you could discuss that. Secretary Acosta. So association health plans--and, you know, again, I think it is important to emphasize these are quality plans. It just lets small employers come together and play by the same rules as the big corporations. So these are quality plans, but one of the things is when you bring in--so I am thinking of one association health plan that, in particular, brought together more than 400 small businesses. And when you bring more than 400 small businesses together, you create bargaining power and you create scale. And so they saw, you know, they told me that they saw, a reduction of about 30 percent in premiums moving from that individual small business, small group price to they now have a large, diverse risk pool. And they are now in the large group market. And so a 30 percent reduction is a game-changer. The Congressional Budget Office scored this in a way that they said that hundreds of thousands of people could receive coverage. So this is a very important approach and one that I think we should support. Certainly it would be wonderful if it could be legislatively confirmed. Mr. Meuser. Great. I agree. We have discussed here today work force development. Like I am sure in other districts, we have got some really terrific vo-tech schools, career development institutes. Your department has already done a lot. What more can we do? Secretary Acosta. So, Congressman, something that I do think is worth considering is this imbalance that we have between what I will call our formal and our informal educational system, between higher education and a system of education that so many individuals rely on that provide skills. And I think it even starts earlier. It starts in high schools. You know, if someone is being told--individuals sometimes are told, there is only one pathway to success and if they don't follow that pathway, they have failed. Why not say there are multiple pathways and everyone can succeed? And if that means college and higher education, that is wonderful, but if that means another pathway, well, that can lead to a great job. And maybe later on, folks can choose to go from pathway B to pathway A or A to B. Let's not even say which is above the other, but let's empower every individual to make choices for themselves and to follow the path that they believe will lead to a great job that is safe and that supports their family. Mr. Meuser. Excellent. Thank you, Mr. Secretary. Chairman, I yield back. Chairman Scott. Thank you. The gentleman from Michigan, Mr. Levin. Mr. Levin. Thank you, Mr. Chairman. Welcome, Mr. Secretary. Do you know what holiday 66 countries are formally observing today and scores more are observing informally? Secretary Acosta. I do. Mr. Levin. What is it called? Secretary Acosta. I believe it is the first of May or a worker holiday or-- Mr. Levin. Yes. It is called International Workers' Day-- Secretary Acosta. Yes. Mr. Levin.--or May Day. And I think the irony of you--I don't know how the timing of this worked out, but the irony of you testifying before us today is-- Secretary Acosta. The Chairman and I worked it out. Mr. Levin.--rich indeed given what you have said about the importance of worker voice and power and your actions on worker voice and power in society, which is what International Workers' Day actually represents. I want to talk to you about health and safety. Sunday was Worker Memorial Day. And from 2009 to 2016, every year, OSHA or the Labor Department had an observation of Worker Memorial Day. And, as you pointed out earlier, it is not just money that shows your priorities. It is your actions and what you do. And so I think it is really unfortunate that you and your department have chosen not to have any events to observe this really solemn and important occasion where we observe, remember workers who have died on the job and commit/recommit ourselves not to let that happen. Most of OSHA's regulatory focus under this administration seems to have focused on rolling back protections for workers in general, instead of increasing protection for workers, which is at odds with your mission. I was particularly upset about OSHA's rollback of its regulation that required employers to submit anonymous aggregated injury and illness information to the agency. And that would then be made public. These data would have been extremely helpful for researchers looking at the causes of workplace injuries and illnesses as well as measures to prevent them. But OSHA rescinded it earlier this year. I actually have a CRA on this issue, House Joint Resolution 44, disapproving the final rule of the OSHA act titled Tracking of Workplace Injuries and Illnesses. So my question is, how do you justify this rollback of worker protections? Secretary Acosta. Congressman, thank you for the question. And, first, let me just say, going to the first part of your comments, you know, I took a look at the fatality and the injury and illness data for the past year and more fatalities than anyone would want, but let me just note that the workplace is safer, that there were 43 fewer workplace fatalities than-- Mr. Levin. Yes, I understand, but I have very little time. I need you to answer this question. Secretary Acosta. I understand, but you are talking about the emphasis on safety. I do think it is important to note that the workplace is-- Mr. Levin. Maybe next year, you will observe it with an event. In any event, go ahead. Secretary Acosta. So the tracking issue, you know, it is interesting. We are actually being sued by both the Chambers of Commerce and the labor unions or labor on this side because what we did is there are three different pieces of information that we obtained. And we said we want the aggregate data because it is important that we have the aggregate data so that we can target our enforcement efforts. So if a particular business has-- Mr. Levin. Let me just-- Secretary Acosta. But-- Mr. Levin. I am sorry. I don't have time for you to tell a long story. Let me just be specific here. You rescinded this regulation. Did any worker group or union ask you to rescind the regulation or only employers? Secretary Acosta. Congressman-- Mr. Levin. Are you aware? Secretary Acosta. We rescinded the regulation in part. I am not aware who may or may not have asked. I can-- Mr. Levin. Okay. So no worker organization. I will just-- Secretary Acosta. I can tell you both sides seem a little unhappy with our outcome because we are still collecting some of the data. We are just not collecting-- Mr. Levin. It is not a matter of collecting data. Secretary Acosta.--the individual-specific data. Mr. Levin. It is a matter of what you gather. It is not what they have to keep. It is what you pull together. You must be aware that the regulation that you rescinded would not have required employers to send confidential information into OSHA. And, in fact, the data base and computer forms that your employees created for employers does not even allow employers to send confidential information into the agency. So there was no way they could do so. So, given all of this, how can you explain how worker confidentiality or, you know, those kinds of concerns were even involved when you wouldn't have even had confidential information at all? Secretary Acosta. Congressman, it was asking for very detailed information about worker-specific injury, if they were injured, what part of the body was injured, whether they lost a part of their body. Mr. Levin. Yes. Without that information, researchers couldn't do any effective work, could they, to figure out if it is--they wouldn't know about repetitive injuries to wrists or legs if you just made it so generic. Really, it is a question of basic science. And it seems to me that the record clearly shows that you are simply trying to give cover to employers with bad records. MSHA has obtained this information for decades. There have been zero problems with confidentiality with MSHA, zero, doing the same thing. So I am very sorry that you are reducing your protections of workers in this way. I yield back, Mr. Chairman. Chairman Scott. The gentlemen from Texas. Mr. Taylor. Thank you, Mr. Chairman. Mr. Secretary, I appreciate you being here. I was in the State legislature for 8 years. And I am unaccustomed to seeing people asking questions, giving you 2 seconds to answer, cutting you off, and then telling you didn't answer the question. Is there anything you want to add to the record? I am happy to yield my time. Secretary Acosta. I think I addressed it. Thank you. Mr. Taylor. Okay. Well, again, I appreciate you enduring this. Again, I guess I am used to a more collegial setting. So in my time in the State legislature, I worked on a bipartisan basis to make it easier for public education, for high schools to have instructors to teach students life skills, work skills. So, for instance, we had a problem where welders who were master welders had 20 years of experience, extremely good at welding, could not teach a class in welding in high school. Because they did not have a 4-year college degree, they did not have a teaching certificate, they couldn't teach welding. So we actually worked, again, on a bipartisan basis. The bill was authored in the Texas House by a Democrat, and I carried it in the Texas Senate, you know, into law to allow welders/robot programmers to teach robot programming so that upon graduation from high school, they could begin to enter the work force immediately, welding or programming robots or what have you. Do you see opportunities similar to that within the Federal system as you look at job force training efforts? Secretary Acosta. Congressman, absolutely. And you also touch on an issue that is incredibly important, which is licensing. And at what point is a license--for example, a requirement that someone have a college degree to teach when they are teaching welding, which is their master craft-- Mr. Taylor. Sure. Secretary Acosta.--something that they are expert in, at what point is licensing preventing individuals from obtaining good jobs? Mr. Taylor. And so certainly in the State of Texas, we worked on that, again, on a bipartisan basis. I mean, everybody agreed we want to have people entering the work force that are trained, ready and so they don't have to go to community college, you know, work two jobs to pay for that, et cetera. Are there opportunities that you see? If there are opportunities you see in the Federal work force, I would be interested in hearing about those to, again, try to make it easier for people to start working. And I certainly agree. Certainly, you struck a chord with me, the comment that you have made several times about the importance of having or recognizing all paths to success, that it is not just about a 4-year college degree, that we are in a country where only 27 percent of Americans have a four-year college degree. You know, there are many good paths to success that do not include a college degree. Secretary Acosta. One of the issues that I think the Federal Government is and should be looking at is their own requirements. So, for example, there are individuals that may have had something in their past going back 10, 15, 20 years. Does that mean they need to be precluded from a job? For example, I was at Electric Boat that builds some of our Navy's submarines. And it requires a security clearance. Are individuals necessarily precluded from those jobs because they might have had a conviction when they were 18 or 19? And so that is an area where I do think we should be looking and we can certainly make some progress. Mr. Taylor. Shifting over to health care, so as I go around the 3d District, you know, the No. 1 complaint I hear from my constituents is that the Affordable Care Act insurance is just not affordable with the premiums and deductibles being as high as they are. It is reassuring that over the last 2 years, the number of Americans that have ERISA-based insurance or employer-based insurance has actually gone up two and a half million. So we actually saw some very substantial increases in healthcare coverage through employer-based insurance. What steps are you taking to further enhance or improve those programs? Secretary Acosta. I am sorry, Congressman. I-- Mr. Taylor. So as far as ERISA goes, that is very important. I mean, look, more Americans have ERISA insurance than everything-- Secretary Acosta. Correct. Mr. Taylor.--else combined. That is the most-- Secretary Acosta. Correct. Mr. Taylor.--important health care coverage program-- Secretary Acosta. Absolutely. Mr. Taylor.--we have in this country. Secretary Acosta. Absolutely. Mr. Taylor. And certainly I am one to stand to defend it against people that might want to take that away from people. Secretary Acosta. Right. Mr. Taylor. And it protects people with pre-existing conditions. It provides-- Secretary Acosta. Yes, it does. Mr. Taylor.--affordable insurance. And that is--and we have had substantial increases in ERISA insurance. What plans do you have to further enhance or improve ERISA? Secretary Acosta. So, Congressman, I think one of the--you know, we are now exploring whether ERISA can be used to create these associations. And I know we have talked about it. But it is our view that ERISA does allow associations of employers acting on behalf of an employer to act like an employer. And that is important because these ERISA plans are quality plans. Mr. Taylor. Absolutely. Secretary Acosta. And there are a number of small businesses that just can't afford them. Mr. Taylor. Yes. Secretary Acosta. And so by allowing them to band together, we are giving them access just like large corporations. You know, we talk about whether something is a quality plan or not a quality plan. And we forget that--that IBM doesn't have to give a lot of--a lot of the things that it does or any other large corporation, but it does so because it's large enough and has the skill that it can offer these plans. And so empowering smaller businesses to act like large corporations under ERISA, I think, is incredibly important and a game-changer for many employees receiving their healthcare through ERISA plans. Mr. Taylor. It certainly is. I am sorry, Mr. Chairman. Just a few seconds. As I go around my district, I talk about the expansion of ERISA access by allowing groups of people, whether it is the State Bar, the State Farm Bureau, the Texas Association of Business, allowing those organizations to create ERISA pools that then, in turn, allows people to use pretax dollars to buy their healthcare from the single biggest source of healthcare that we have in this country today. So I am very excited to hear that you are working on that. Thank you, Mr. Chairman. Secretary Acosta. Thank you. Mr. Taylor. Thank you, Mr. Chairman. Appreciate you indulging me. Chairman Scott. Thank you. The gentlelady from Minnesota, Ms. Omar. Ms. Omar. Thank you, Chairwoman--Chairman Scott and Ranking Member Dr. Foxx on this International Workers' Day. I was excited to hear you State in your testimony that the goal of the department is to level the playing field for working Americans through fair trade. In your testimony, I was also happy to hear that in your budget that you are prioritizing American workers by monitoring and enforcing labor provisions of free trade agreements and combating the reprehensible use of child labor and helping other countries improve their labor standards. But I also am a little confused and trying to find where the credibility is because in the proposed budget, you are proposing a 78 percent cut. I find that to be astonishing through the Bureau of International Labor Affairs. And so I am wondering how can you really think a 78 percent cut through the budget is going to help level the playing field. Secretary Acosta. So, Congresswoman, thank you for the question. As we approach the budget, earlier I talked about the importance of enforcement and that the enforcement agencies were not cut. And so the cuts took place typically in the grant programs or the nonenforcement side. And within that, we prioritize domestic over international. And so those reductions are in international programs. Now, I understand that we proposed those reductions last year. And I understand that Congress put the money right back in last year. And I understand that the House budget that I think was just marked up yesterday restores many of those programs. Let me also say as-- Ms. Omar. But I think, you know, it is fair for me to say that when you are stating that to be a priority and proposing a 78 percent cut, then it truly cannot be a priority, so that is the credibility I was speaking to. And we also know that the Government Accountability Office is saying that they are already facing challenges in enforcement with the limited resources that they already have. And so I am asking how do you reconcile that these cuts that you all are proposing and what that department is saying and in doing enforcement? How could we trust that you would be able to monitor the new trade agreement with USMCA? Secretary Acosta. So, first, let me say I do--I will say we are prioritizing domestic over international. But let me also say Congress last year restored that money, and we used that money and we used it well. And in ILAB, which is the--the International Labor Division that you are referencing, does some great work. I am going to be--I was--when I was in Argentina, I visited some of the ILAB grantees that are doing great work. I am going to be in Colombia talking. I am meeting some of the ILAB grantees, and I am also going to be talking with the Colombian government because they have made progress on labor rights in Colombia and so-- Ms. Omar. I suppose, Secretary, with all due respect-- Secretary Acosta. Yes. Ms. Omar.--the question is how could we trust if they are saying that there is already limitations with the resources that they have that the new agreement that we are getting into with the USMCA that we will have the resources to be able to reinforce and roll that out. Secretary Acosta. So USMCA--so going specifically to USMCA, you know, it has, for the first time, labor protections. And those labor protections need to be enforced. Previously, the labor protections were not in the USMCA. This time, they are. And in implementing legislation, something that has been discussed is USMCA will have to be adopted through implementing legislation, in that implementing legislation, having specific funding to ensure that enforcement is sufficient and available for that specific provision. The labor provisions there are stronger. I was with the head of the ILO in a joint presentation recently. And he said that those labor provisions were stronger than he has seen in any U.S.-based agreement and so-- Ms. Omar. With the little time that I have, I know that we have strong provisions, but the problem and the disappointment that we see is that you would have to enforce them. And if you are continuing to propose cuts to that enforcement, we are not going to be able to do the work with just saying that is important and having the mechanisms in place. We have to make sure that we make the resources available for there to be accountability and enforcement. Secretary Acosta. I understand. Ms. Omar. We have to follow action with our words, and that is where the credibility challenge is, and that is why we find this proposal to be very disappointing. I yield back my time. Thank you for your time. Chairman Scott. Thank you. The gentleman from Wisconsin, Mr. Grothman? Mr. Grothman. Thank you. First of all, Mr. Secretary, thanks for being here. I really appreciate you doing what far too many people in this building do. And that is trying to get a handle on our Federal deficit and realizing that we are spending too much money here. And I know it's always a difficult thing to say no. But I really appreciate what you are doing, what the whole administration is doing and try to get a handle on things. And I just wish they would get a little support out of Congress. So I just want to lead off by saying that. The second thing I am going to say, because I want to talk a little bit about 14(c) certificates, which, you know, deal with subminimum wage. And I think you are familiar with that issue; right? Secretary Acosta. Yes. Mr. Grothman. I guess one of my concerns is there are people out there who are trying to reduce them or get rid of them. And I tour places where they use the 14(c) certificates all over my district. I see so many happy, productive people that we could all learn from. And the idea that someday they could lose their jobs just scares me. You know, taking away a choice from people who are the most vulnerable in our society--but I know in the past, there might have been some people in your agencies who--in your agency who didn't understand the importance of a 14(c). Have you done any looking around or seeing what happens to individuals with disabilities when the 14(c) certificates are eliminated? Secretary Acosta. So, Congressman, we have brought several enforcement actions where, unfortunately, like all programs, you know, 14(c) has some bad actors. And we brought some enforcement actions. And when we brought those enforcement actions, we were very careful to work with the State to provide those individuals alternative employment opportunities because everyone wants, you know, the ability to work and to earn a living and to support themselves. And so, in that context, yes. Mr. Grothman. Yes, that we were always able to find--were we able to find jobs for people in not a formal setting or in an independent work force, or did they have to take subminimum wage or what did we find? Secretary Acosta. So I am sorry. Your question was am I familiar with those jobs. And so in the context of--I do not know if the individuals in those 14(c) companies where the enforcement actions were brought found other employment in or outside of 14(c). I can certainly tell the Congressman that 14(c), although it is still used and it is the law, and any change will have to come from Congress, the number of 14(c) certificates is reducing, in part, because the economy is improving, in part, because technology is making it easier to accommodate individuals. And so we are seeing the number of 14(c) certificates going down, although any change in the 14(c) program would have to come from Congress. Mr. Grothman. My fear is, just so you are aware insofar as you have any flexibility, I have run into people who have lost their jobs. And they are not going to find other jobs. You know, some of these people, they automatically--they just have this preconceived notion that if you are using a 14(c), you are being taken advantage of. And that's not--just not true. I would like to ask do you understand the importance of the 14(c), and have you had any chances to tour any of the--I guess they are now--the politically correct term is ``work centers.'' Have you had a chance to tour any work centers to see these 41(c) certificates in action? Secretary Acosta. I have not toured any of the individuals--any of the sites that hold these 14(c) certificates. Mr. Grothman. Would you ever like to tour one sometime? Secretary Acosta. Yes, no, I am certainly willing to. I welcome the opportunity to travel and to tour and will followup with your office. Mr. Grothman. Okay. Very good. And I'll yield the rest of my time to Ranking Member Foxx. Secretary Acosta. Thank you. Ms. Foxx. Thank you. Secretary Acosta, the Office of Labor Management Standards plays a critical role in empowering workers by requiring union reporting, which allows workers to see how their union dues are spent. Unfortunately, we continue to see rampant union corruption, such as the ongoing UAW scandal in Michigan where union dealers spent workers' dues that were intended for a work force development fund on excesses like a Ferrari, a $1,100 pair of shoes, two $37,000 gold pens. Tens of thousands of dollars in dues were also spent on what the Detroit News called ``trinkets and trash'' as part of a potential kickback scheme between union leaders and business executives currying favor with one another. The OLMS Form T-1 regulation on union trusts is currently under review at the Office of Management and Budget, intended to prevent future scandals like the one at the UAW. Secretary Acosta. Congresswoman, transparency obviously prevents these scandals. I should also say, as I mentioned, that the OLMS, which looks into union corruption--like every industry, there are bad actors, and I believe there were more than 200 criminal investigations last year. Ms. Foxx. Thank you. Thank you, Mr. Chairman. Chairman Scott. Thank you. The gentleman from Maryland, Mr. Trone? Mr. Trone. Thank you very much, Mr. Chairman. First, I want to thank you, Secretary, for your comments regarding opioids deaths in the workplace, 84 to 272. This is certainly bipartisan, and we just love to have your help. The current prescribing guidelines for opioids under the Federal Employees' Compensation Act allows for patients to receive two concurrent opioid prescriptions for up to 60 days each without any prior agency approval. So that's two prescriptions, up to 60 each, which means only after 120 days, 120 days, is a letter of medical necessity required. CDC--I met with the CDC director last week in Atlanta. Definitive study shows 40 days of opioid use, a bit more than your agency would allow, a bit less, results on an average of 40 percent of those patients a year later still taking opioids or, in other words, addicted, likely addicted. This problem was made clear in your budget. Your budget request cites 27,000 participants in FECA receiving opioids in 2017. The Inspector General analysis found that more than half of the FECA's monthly pharmacy claims include opioid prescriptions. The same analysis found the DOL policies lag years behind those adopted at State-level worker's compensation agencies, which have followed the CDC guidelines allowing 7 days or fewer without a letter of medical necessity. Now, that said, none of us wants to block access to needed pay relief. And we know curbing opioid use should not be done lightly for those that have a debilitating illness. But allowing patients to have two different prescriptions or 2 months without prior authorization, 120 days, I think, is dangerous and can be deadly and contrary to the medical establishment's recommendations. So are you aware of the FECA regulation? Secretary Acosta. Congressman, thank you. Thank you for the question. And the short answer is yes, and we have done something about it. And so, if I could, because, you know, I had similar observations to yours. And so we put in place a new system that involves--and I am going to give you the results in a second--effective controls, tailored treatment. We are above a certain prescription level, we have a specialized team that will actually notice the prescription levels and contact the providers. Meaningful communications--we are in the process of changing the company that monitors prescriptions so we can tell multiple prescriptions. I had them do--I had them look at results. And, so far, we have had a 31 percent decline in overall opioid use. I am happy to share this with your office. We recently put this out in a website, a 52 percent decline in new opioid prescriptions lasting more than 30 days. We started off by focusing on the higher dosage, the morphine-equivalent dosage of 500 or more, which is quite high. We had a 62 percent decline in-- Mr. Trone. I would like to reclaim my time. I think that's fantastic and I really appreciate that, but at the end of the day, 84 deaths, straight-up hockey stick to 272. So I am just asking--keep up the good work. Do more. Think about that 120 days. Take it down to seven. Follow the CDC. That is all I have got on that question. My next question for you is could you--you clearly said earlier it is so important for people to earn more. It is great for the workers. It is great for employee--employers. It is great for the economy. We agree. That being said, I am a cosponsor of wage--Raise the Wage Act. I think it is a really good bill. But that being said, what do you think the federal minimum wage should be after 10 years at $7.25 not indexed to inflation? Just give me a number, not a long diatribe. Secretary Acosta. So, Congressman, you know, the issue around federal minimum wage is as follows. And I know you want a number, but it's not quite that simple. If it were, it would already be adopted. You know, there are 29--basically, three- fifths of the States have adopted a minimum wage that is higher than the federal minimum wage. Mr. Trone. A hundred and thirty-eight different instances have happened since 1979 where States and municipalities have raised their minimum wage and there has been zero job loss. That's in the service industries where everybody is apples-to- apples. I mean, I own a company that's 7,000 employees. We do 3-to $4 billion in sales. I understand business and--but we have higher wages. Everybody else has higher wages. There is no discernible job loss. But those folks at the bottom of the ladder, they win. Can we get a number to be able to raise it to somewhere? Secretary Acosta. Congressman, I believe there was a study by Washington State when Seattle raised its minimum wage that-- that actually did show job loss. So I am not sure you can really say zero job loss. And I think there are a number of studies that go in the other direction. We can argue over which study is right. But to say zero job loss is, I think, an oversimplification, in all candor. Mr. Trone. Let's see if we can get a raise, and your leadership would really be helpful. Thank you. Secretary Acosta. Thank you. Mr. Watkins. Thank you. I want to start off today by thanking the Secretary for being here and for your selfless, patriotic contribution to our country. My constituents clearly see that the economy is doing well, the best that it has been for years, largely because of the pro-growth policies, to include lower taxes and deregulation. Investment productivity and workers' wages are all on the rise across America. And it is true that the American worker is far better off today than a decade ago. In fact, the Bureau of Labor Statistics say that in my home State of Kansas, unemployment is at a decade low of 3.4 percent. As a result, employers across the Nation are now struggling to fill over 7 million job openings. In recent weeks, your Labor Department released statistics showcasing how this hiring competition has raised the average hourly pay 3.4 percent from last year, the largest gain in a decade. And just last week, we all learned the first quarter GDP growth for 2019 is an incredible 3.4 percent increase, beating all expectations and projections. Combine that quarterly growth statistic with the prevailing logic that the first quarter GDP is typically the weakest of the year, and Americans certainly have good reason to be optimistic in the months to come. All this economic news is welcome for small businesses and resurgent main streets of so many small and rural communities that I represent in Kansas. Kansas has over 600,000 employees, people who are employed by small businesses, and that's 99.1 percent of all Kansas businesses are small. Sadly, we have seen the economic proposals offered by the other side of the aisle, and these clearly miss the mark. Liberal policy proposals like free college, government-mandated healthcare, 70 percent marginal tax rates, and, recently, a dramatic and instant 107 percent federal minimum wage increases are not the right policies for Kansas, and they are not the right policies for our country. We must confront the real economic harm these proposals would have on working families, students, veterans, and chronically underemployed individuals finally seeking to reenter the job market. It is clear that the American economy is back in business, and our local economies are well on their way to thriving as well. Now, sir, my question is what--I agree that our--I agree--so, Mr. Secretary, I agree that our Department of Labor, our economy, is strengthening and with each passing day--and a remarkable number of jobs have been created during the Trump administration . I hear every day from Kansans about the need to fill jobs and concern about skilled--skills gaps keeping many positions unfilled. What do you see as the most important part of the challenge to prepare America's work force for 21st century jobs? Secretary Acosta. Congressman, thank you for the question. And let me just say briefly, you know, the most important part is to really empower individuals for skills that are in demand. We call it demand-driven education, education that acknowledges the modern workplace requires certain skills, and let's empower them to get those, whether it be welding, whether it be nursing, whether it be medicine. Let's just make sure that-- that our education system and our businesses are communicating so that we are providing education for what is currently being required. That is critical. Mr. Watkins. Thank you, Mr. Secretary. And I yield back. Sorry. I yield back the remainder of my time. Chairman Scott. Thank you. We have five members left in 10 minutes. If people could be very--as quick as possible with their questions, we may be able to get through without a recess. The gentleman from New York, Mr. Morelle? Mr. Morelle. Thank you, Mr. Chairman, for making this hearing possible. And thank you, Mr. Secretary, for taking the time to be here. I just want to make, first, just an observation. Some of my colleagues have raised the absence of a budget or responsive concerns about the draconian cuts made to work force development, including a 40 percent cut to the Jobs Corps in the President's budget. I serve on the House Budget Committee and would note just two things for--just for people's information. First, we have adopted on the floor a resolution setting top lines for discretionary appropriations. And, following that, the Labor HHS Appropriations Subcommittee, I believe, yesterday reported a bill that reverses the cuts, adds an additional $100 million to the President's request for apprenticeships and bolsters key work force protection agencies such as the Wage and Hour Division and OSHA to restore enforcement personnel that have been depleted during the previous 8 years. So we have not stood still. Others have said that a budget is a setting of priorities. And I agree. We have put our money where our values lie with the American worker. I also just want to--a couple really quick questions. Mr. Secretary, I grew up in a union household, and I know how important that is for advancing the interests of families and communities. And I wanted to just touch on and go back to the comments you made regarding the associated--or the-- Secretary Acosta. Association health plans. Mr. Morelle.--association health plans. And I was disappointed. Obviously, the decision to implement the rule, that weakened, in my view, the protections for workers and undermines the Affordable Care Act. Last month, after a lawsuit led by the attorney general, Federal court found the department's final rule to expand association health plans was unlawful, determining that it was designed as a, quote, end- around around the ACA and does violence to ERISA. It seems to me there is three ways to get at this if you are going to reduce costs. One is by cherry-picking better workers in terms of what their healthcare costs would be, often younger workers; secondly, by cutting benefits that would be associated with those, part of the essential benefit package; or establishing underwriting rules either that underwrite for age or other conditions like pre-existing conditions. So I am disappointed with the department's position. Tell me which of those three things benefits folks in the association? Is it the cherry picking? Is it the cutting benefits? Is it underwriting rules? What is it that allows them to reduce costs and improve care? Secretary Acosta. Congressman, there is something else to add to that, which is called bargaining power. A small business can't bargain. When you have 4-or 500 small businesses coming together under one association or Chamber of Commerce, that association can put out a request for proposal, and it can ask for very competitive bids. And so, again, association health plans play by the same rules as large corporations. And they have the advantage of scale that goes to those large corporations-- Mr. Morelle. Typically. Secretary Acosta.--in terms of risk pool and bargaining power. Mr. Morelle. Well, let me--and I apologize for interrupting. But I actually think what the advantage of large groups are is that they are able to pool large groups of workers together. I don't know that it is bargaining power. I think it is a question of whether or not they can share that risk. But, typically, what you have and under the Affordable Care Act and in my State of New York, you have community rating, which allows people to not be underwritten, have protections against age underwriting and other underwriting conditions. And that's what the Federal law is. So I would only see this if there was an ability to increase utilization of primary care and to do the kinds of things necessary, to have screenings and wellness programs. I don't see that as a mandate for these plans. What I see instead is the stripping away of benefits, which is, I think, why the court has--has imposed their order. So I am troubled by that, and I am troubled by the fact that I think what it's going to do is leave people without coverage. I do want to ask also, in my remaining minute, if you have--if you are a part of an associated health plan and you are a worker--let's say you come down with cancer and you are in the middle of treatment, radiation/chemotherapy, et cetera. If the business that you are part of--if it no longer is in the plan because it goes bankrupt or it somehow is out of business, what happens to that worker? Are they continued to be covered? Is there joint and several liability by the remaining or surviving members of the trust or the plan, rather? Secretary Acosta. Congressman, first let me go to your point about the association health plans, the anti- discriminatory issues that you raise with respect to cherry- picking, there are anti-cherry-picking rules in that so to address exactly your concern. And so, in the rule, your concern was addressed. With respect to joint and several, I would have to confer, but my impression is it is not joint and several. Mr. Morelle. Well, thank you. I will yield back the balance of my time and would like to come back to you offline, perhaps have additional conversations about these coverages. Thank you, Mr. Chairman. Chairman Scott. Thank you. The gentlelady from Nevada, Ms. Lee-- And I think several members have indicated a desire to come back so I apologize. Mr. Secretary, I think we are going to have to take a break to vote after Ms. Lee. And if--we will do the best we can to get back as soon as we can. Mrs. Lee. Thank you, Mr. Chairman, and thank you, Secretary, for your testimony today. I wanted to now turn to a topic that's especially important in my home State, Nevada, the future of work. And, clearly, I welcome innovation and the entrepreneurial spirit that makes our Nation a leader in so many different areas. We are all aware of the impending effects of that deployment of newer technology on our workers. And recently, the GAO released a report highlighting the effects of advanced technologies on jobs and went on to direct the Department of Labor to develop better methods of leveraging data to track these work force impacts. This is a particularly important issue in Nevada, especially the city of Las Vegas. We are one of the cities most at-risk of losing jobs as a result of automation. Can you please just talk about what the Department of Labor is currently doing to better evaluate these impacts? Secretary Acosta. Congresswoman, thank you. We are certainly, you know, tracking this issue. And the Bureau of Labor Statistics, I believe is also looking at this. Technology is always changing and one of the challenges is, you know, the jobs, I believe, will be there. But they will be different types of jobs. And this goes to the question of skilling, which is why earlier I said it is so important that we change from a--we educate and then work economy to a--we educate and work simultaneous economy as we go forward, so that individuals are always receiving more skills. As the jobs change, let the skills and education also change. Mrs. Lee. I agree with you. But can you talk about what data, what you are doing to track this? Like what are you doing, specifically, to track what is happening with the work force? Secretary Acosta. So what data we are--I am sorry, your question is, what kind of data? Mrs. Lee. Basically, you know, we know that this is happening. What are you doing to measure it? Secretary Acosta. And so we do know that this is happening. One of the difficulties around measuring it is when a job changes or when a job, you know, is it because of technology or is it not because of technology? So, for example, is it because manufacturing is going overseas or is it because the type of manufacturing is changing? And so we know about it, we are-- Mrs. Lee. But we do know that there are instances where businesses are employing automation to replace workers in jobs that were traditionally done by humans. Secretary Acosta. So, yes-- Mrs. Lee. You know, I am just asking, I hope we can find a way of better tracking that. It is really just important to what we do in Nevada in terms of how we are looking at what type of people are going to be displaced. So just if we can work on that, I would greatly appreciate that. Secretary Acosta. Fair enough, Congresswoman. Mrs. Lee. The second question I have is about your 2020 budget that requests a $14.7 million cut from $93 million for Reentry Employment Opportunities programs. You know, these funds are used to support community faith-based organizations that run programs helping young adult offenders, you know, at- high-risk members of our society reintegrate. And in Las Vegas, we have a great organization called Hope for Prisoners. Secretary Acosta. I know it well. I have visited it, as a matter of fact. Mrs. Lee. It is great, yes. And, you know, I mean, a 2016 study found the recidivism rate of 6 percent, which was incredibly low for an 18-month period. And given that we live in the Nation with the highest incarceration rate in the world, you know, working together to fund programs like this, I think, is incredibly economical, let's say. Secretary Acosta. So, Congresswoman, let me say I believe in these programs. Hope for Prisoners is an interesting one, in that it is incredibly successful at most things. Except it does not ask for Federal dollars from the department. And so, I say that to say that our funding is not always aligned with the most successful of programs because that is one that I think does it right. And one of its strengths is working with local businesses and also getting into the prison system and starting to work with individuals while they are in prison so there is a continuity. Mrs. Lee. So let's say we have programs that are successful like that, that do that. I am just wanting to know, do you--you obviously believe in those programs. So why the cut of, you know, clearly 16 percent? Secretary Acosta. Congresswoman, the budget proposal, I am sure, is going to be thoroughly vetted and it is something that we can talk about. Mrs. Lee. Great. I agree. I think that these are incredibly important programs in our community. And, you know, when you look for return on investment, given--granted, I am all for accountability and making sure that we are getting what we pay for. So with programs like that, I hope that we can look at ways to continue that investment. Because not only is it the right thing to do, it is also the economical thing to do. Thank you. I yield. Chairman Scott. Mr. Secretary, I apologize. We have to recess for a few minutes. It will be about 15 minutes before we can get back. Secretary Acosta. Thank you. [Recess from 1:51 to 2:33 p.m.] Chairman Scott. The committee will come to order. The gentleman from Alabama, Mr. Byrne. Mr. Byrne. Thank you, Mr. Chairman. Mr. Secretary, thank you for your unparalleled patience and thank you for what you do for the working men and women in America. Thank you for that. The Department of Labor has one of the largest workers' comp programs in the Nation. And the IG reported earlier that there have been some issues with regard to the overuse of opioids, which we see in other parts of society. Have you been able to do anything about that? If so, what? Secretary Acosta. Congressman, thank you for that question. We are facing a crisis with opioids today. You know, if we look at the number of adult workers, and we have good data on men and we are getting the data on women, 25 to 54, nearly one- third of individuals who are not in the work force took an opioid yesterday. Not last week or last month but yesterday. And that really is a measure of how serious this crisis is. And so we reformed our workers' compensation program. We put in effective controls, tailored treatment, where we look at individuals and how they are treated, and work with their physicians, and new fraud detection. And here are the results, a 31 percent decrease in overall opioid use, a 24 percent decrease in new prescriptions, a 52 percent decrease in prescriptions over 30 days. On the prescriptions with the highest doses, the highest likelihood of addiction, morphine equivalent dose of 500 or more, a 62 percent decrease. And in terms of referrals for criminal prosecution, we went from three in 2016 to 64 for fraud. And I say this, not only is it important for us but it places, you know, this says to the public other similar programs can implement these measures and get the same results. So thank you for the question. Mr. Byrne. Well, thank you. And I know that you have been working very hard on this joint employer rule and I know you are in process with that and getting feedback from people. Do you think that the proposed rule will provide clarity for small businesses and workers so that they can understand what they are actually dealing with? Secretary Acosta. Congressman, that is right. So the different Federal circuits, the different courts of appeal had each developed their own rule. And so what we tried to do with this rule is survey the circuits and say, what is the plurality rule? What is the rule that is shared by the majority of the circuits? And in essence, we are proposing the plurality rule. It is common sense, it is straightforward. And it gives businesses and individuals throughout the Nation clarity as to what exactly the rule is so they can follow it. Mr. Byrne. Well, I appreciate that. Because we have heard an awful lot from small businesses around the country about how that--the prior rule would have adversely affected them. So I appreciate your taking a look at that. Let me bring one other issue to your attention that came up in February on the Workforce Protection Subcommittee that I sit on. We held a hearing on workplace violence impacting healthcare and social service workers. And I did not vote for the bill, did not sponsor that bill, but I share the concerns of my colleagues on the other side of the aisle that we need to move forward, OSHA needs to move forward with rulemaking in this area. I just want to let you know that there is sort of a joint feeling we need to move forward with that. Do you have anything you can report to us on that? Secretary Acosta. So I appreciate--first, thank you for letting me know. And OSHA is, in fact, moving forward. The first step is to convey what is known as a SBREFA panel, a panel that brings together various stakeholders and solicits input. And we are in the process of putting that SBREFA panel forward. Mr. Byrne. Thank you very much for that. I think the one thing that we all shared on that panel after the hearing was that this is a real problem and needs to be resolved. I know we have had some problems getting some people through the Senate that would help you with that. But it is my hope that you all will move forward on that expeditiously, because those workers do need the protection we can give them. Secretary Acosta. Right. Mr. Byrne. Once again, thank you for your service. And I yield back. Chairman Scott. Do you yield to the Ranking Member? You yield back? Mr. Byrne. I yield back. Chairman Scott. The gentlelady from Connecticut, Mrs. Hayes. Mrs. Hayes. Good afternoon. And thank you, Secretary Acosta, for being here today. Earlier in this hearing, Congresswoman Fudge asked you about overall cuts to the Job Corps program, something like $700 million in cuts. And you talk about revolutionary Job Corps pilot programs. But I do not understand how we are going to have revolutionary programs if we are having such large cuts that would really attack the basic needs of the program. And I am particularly shocked to see a call for an immediate closure of about 25 different Job Corps centers operated by the U.S. Department of Agriculture, with no explanation of a closure plan or requests for funding to support the wind-down process. Do you know where exactly those 25 programs would close? Secretary Acosta. So, Congresswoman, first with respect to the closures of the Job Corps operated by the Department of Agriculture, ultimately the question is, are those Job Corps programs focused on the skills that are currently most required by the economy and is the Department of Agriculture in a position and do they wish to continue those Job Corps programs. Let me go to the budget question and why pilot programs. The Job Corps budget has been a matter of contention going back several presidencies. And I have talked to former secretaries of labor for presidents who are no longer with us that pointed this out. And so I think it is important to look at reforms and at optimizing the program and at pilot projects, irrespective of where that budget ends up. And that is why we are looking at pilot projects, to try different methodologies in Job Corps centers. And we are focusing on States where the Governors want to try out different approaches and we are empowering the Governors to do that. Mrs. Hayes. Okay, so, but if this budget were to go into effect, I guess my challenge is, because I was a teacher before I came to Congress, what happens to all of the students who are displaced by the closures of these centers? So I guess my question, let me just give you the question first, does the Department of Labor have a plan for those students? Because, once again, pilot programs are not going to catch all of those students whose only option would be to go into a skills training program. Secretary Acosta. Congresswoman, I understand your question and, certainly, if any--when any Job Corps center is closed, there is a teach-out process, where we would ensure that the students that are currently there have the ability to complete their programs and their education. We would not just close it and tell those students, oh, good luck. That would not be our approach. Mrs. Hayes. But what about the next group of students? With these decreases in funding, we are closing the door to opportunity for future students. Secretary Acosta. So I share your concern, Congresswoman. I will give you an example. One of the pilot programs that we are trying out is called Job Corps Scholars. Currently, we are spending well over $30,000 per student, which is quite a bit. And so we are putting out a request for proposal for community colleges that want to do cohorts of 40 students at a time, to set up mini-Job Corps within their community colleges. And we are funding it for about half the cost, about 15,000 per year per individual, to cover tuition, to cover counseling, to cover room and board if the community college so chooses. And so the point that I am raising--and this would be a small pilot. It would be only 1,600 students, to see if it works. But the point that I am sort of raising is, there are many ways of approaching work force education and I do think it is important to try different methods to see what works best. Job Corps has not changed in decades. And Job Corps reform is appropriate. Mrs. Hayes. And I appreciate that answer, thank you. But when we talk about the many methods, we see cuts to the Department of Education, cuts to the Department of Labor. You know, these young people will hit the system again if they do not have the systems and the structures in place to help them become self-sufficient. So as your cut--1,600 is less than the number of kids that were in my high school. So I don't think that number is significant to talk about the work force that we are trying to educate, that we are trying to train for the jobs of the future. I was very impressed this morning to hear my colleagues on the other side of the aisle talk about jobs like welding and skills training jobs. Those are all unionized jobs that really are the drivers of this work force. So I am glad we are on the same page about that. But if we are not educating young people to go into those jobs, and 1,600 in a pilot program for the United States of America just doesn't seem sufficient. So I would just encourage you to think about that. Secretary Acosta. Thank you, Congresswoman. And, you know, so a Job Corps center is only about 150 on average. And so a 1,600 pilot is about the size of 10, 10 Job Corps. But it is only a pilot, I know it is small. But we are just trying different approaches. Mrs. Hayes. Mr. Chair, I yield back. Chairman Scott. Thank you. The Ranking Member has an additional question. Ms. Foxx. Thank you, Mr. Chairman. I appreciate it. Mr. Secretary, full compliance is our goal for the laws the department enforces. For our wage and hour laws, we want workers to be paid the amount that they are owed when they are owed it. The Payroll Audit Independent Determination Program or the PAID Program has been up and running for over a year. Under the PAID Program, business owners are encouraged to conduct audits and, if they discover violations, to self-report those violations. Business owners may then work in good faith with the department to correct their mistakes and quickly pay 100 percent of the back wages owed to the affected workers. What feedback have you received from workers and business owners who have participated in the PAID Program? In your opinion, has the program been a success so far? Secretary Acosta. So, Congresswoman, thank you for the question. As you rightly noted, wage enforcement is incredibly important. You know, in this past year, our Wage and Hour Division actually collected more money and returned it to American workers than any year in the history of wage and hour. And I say that and I preface the answer by pointing out, our enforcement is strong, as evidenced by the fact that we had our best enforcement year ever. Now, there are a number of programs throughout government that allow individuals that identify a mistake to self-report and the PAID Program is one of those. It is not open to an individual if you have already been sued, if someone brought a claim against you. It is genuinely for those individuals that said, I identified a problem, I want to pay the money that is due to my employees. And in those cases, they can go forward. Now, one of the issues we face is that attorneys general in some States have said if they do that, they will then face prosecution at the local level. And so we are working our way through that. But so far, we have had companies that have come forward and the money has gone back to employees and that is a good thing. Ms. Foxx. Thank you, Mr. Chair. Chairman Scott. Thank you. I now recognize myself for 5 minutes for questions. Mr. Secretary, you indicated the differential between what we invest in technically qualified education plans and what we do in job development funds, the most frequently suggested response to this would be using Pell Grants for short-term programs. The challenge there is to make sure they are quality programs. Do you have a specific plan to guarantee quality for these programs? Or do we need to work on that? Secretary Acosta. Mr. Chairman, I recognize the importance of that. That is something that I think we should bring in Secretary DeVos and others into the conversation. But I think we should work on it because extending these Pell programs would be important. And if we can find a solution, I think everyone will win. Chairman Scott. Okay, now, registered apprenticeship programs are eligible for Federal financial support; is that right? Secretary Acosta. They do receive Federal dollars, yes. Chairman Scott. Do the IRAPs get Federal support? Secretary Acosta. Federal dollars are not used to support IRAP programs. Chairman, let me be specific. This committee and the Budget Committee appropriates apprenticeship dollars that go to support apprenticeships. I believe it is about $160 million per year. Those, by legislation, are specifically directed to the registered program. Chairman Scott. The multi-employer pension crisis, has the department done any research on the cost of doing nothing? We know, for example, there would be less income tax paid, more access, more utilization of food stamps and Medicaid. Has the Department done an analysis of what the cost of doing nothing would be? Secretary Acosta. Congressman, the PBGC has certainly done extensive analysis in the cost of not addressing this issue with respect to it is going to get more and more expensive. The dynamic impact beyond just the expense of the PBGC is something, if we have that data, I am not aware of it. Chairman Scott. Could you provide for the record an update on the status of the beryllium regulations? Secretary Acosta. So, Congressman, with respect to the beryllium, the PEL, which is the level, the exposure limit, has gone into effect for both general industry and construction and shipyards. There is also something called the STEL, which is the short-term exposure limit. That has also gone into effect. And so the exposure limits are now live and in effect throughout the Nation. Separate from that are the ancillary provisions that are associated with beryllium. And those have to do with some of the equipment that is used, some of the medical monitoring. And so there is a notice of proposed rulemaking that was issued. We have received comments. We are in the process of going through those comments. Let me just inform the Chairman, those comments were fulsome and actually quite helpful. Sometimes, rules collect comments and the comments do not bring new information. In this case they did, and so we are taking a little bit of time to fully consider those comments before developing a final rule. Chairman Scott. It is a very important issue, particularly as it pertains to shipyards. So we will be following that. On the association plans, as you have pointed out, those that can get into an association plan will always pay less because if the bids come in higher, nobody is going to buy it, they will stay in the marketplace. But if they come in lower, if they have got an association of young, healthy males, they can pay less. The problem is, if some pay less, others are going to pay more. And I would like to introduce for the record a CBO report showing significant increases in premiums for everybody if the association plans and the junk plans are allowed. [The information referred to follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Chairman Scott. I did have a question on association plans, just to get some clarity in respect of the department's stance on association plans in light of the March 28 District Court decision in State of New York v. United States Department of Labor. Can you confirm for the committee that AHPs that were invalidated by the ruling are no longer able to enroll new customers? Secretary Acosta. Mr. Chairman, AHPs that were invalidated by the ruling cannot enroll new customers. But to provide a complete answer, they have to continue servicing. And one of the questions is, can AHPs continue in effect. And the answer we are giving is, yes. We are not enforcing against those AHPs to the extent they service existing customers. If someone has a healthcare plan, they should continue to receive benefits under that plan. Chairman Scott. Thank you. On the minimum wage, the White House economic advisor stated, and I quote, ``My view is a federal minimum wage is a terrible idea, terrible, and will damage particularly small businesses.'' Is that the position of the Department of Labor? Secretary Acosta. Mr. Chairman, about three-fifths of the States have passed a minimum wage that exceeds the Federal level. It is our view that a federal minimum wage would be those three-fifths of the States imposing a cost structure on the remaining two-fifths of States that have chosen not to increase the minimum wage above the Federal level. The Washington Post, in fact the editorial board, had an editorial that said much the same thing, that they were concerned about the high-cost States imposing cost structures on the low-cost States. Chairman Scott. The quote was that a federal minimum wage is a terrible idea. Is that the position of the Department of Labor? Secretary Acosta. Mr. Chairman, we do not support a change in the federal minimum wage at this time. Chairman Scott. You cited a Seattle study. Are you aware that the authors have backed off of their original conclusions? Secretary Acosta. Yes. They ran a second study. And one of the interesting parts of that study is, I believe, if I recall correctly, that while workers in the mid-wage areas experienced an increase, at the lower wage scale, there was a decrease in jobs. So even, you know, so even where there is not a net change in jobs, there is an impact, particularly at the lower end of the wage scale. Chairman Scott. But most studies have said that there is negligible if any impact on jobs. Secretary Acosta. Mr. Chairman, I understand we can spend a lot of time on studies. Chairman Scott. Let me ask, I have two other questions I am going to try to get in. The Office of Federal Contract Compliance Programs provides that those who contract with the Federal Government not only are prohibited from discriminating on employment but also have to have affirmative action plans. Can you explain how a faith-based contractor can affirmatively discriminate based on religion in hiring? Secretary Acosta. Mr. Chairman, the executive order has an explicit exemption for religious organizations to allow them to exercise a religious preference in their hiring. That is part of the executive order itself. Chairman Scott. And so if they have strong feelings that they are only going to hire people in an all-white church, essentially excluding African Americans, would that pass muster? Secretary Acosta. Mr. Chairman, it would be fact based. But in your set of facts, when religion seems to be an excuse for another kind of discrimination as you just mentioned in your fact pattern, that would be looked at very, very closely. And most likely, the answer would be--most likely if not definitely, the answer would be no, that is not what is meant by religious exemption. Chairman Scott. Finally, you had described earlier today, not in the committee, a program involving bonding for employees. Can you tell me how that is good for workers and/or business? Secretary Acosta. Mr. Chairman, certainly. Individuals, so we are facing a shortage of--you know, we have talked about how businesses want to hire. And there are individuals that have criminal convictions and they are leaving prison. And the best--in our opinion, the best way to help them is by helping them find a job. The best way to help society and keep society safe is by helping individuals, you know, find a path to a job. Because if there is no job, then the probability of recidivism is much, much higher. And from an economic perspective, we are much better off with individuals working as opposed to individuals going to prison, where society is paying the cost of prison. And so for all those reasons, we want to encourage a broad-based reentry program that helps individuals leaving prison find jobs. Something that we are doing with respect to that is a bonding program, where we are telling businesses, if you hire someone that has a criminal history that is reentering society, we will pay for a bond. And we will pay for a bond, I believe it is up to $25,000. At the end of the day, one of the great things--and, right now, it is a small program. But there are so few claims that it is not that expensive. Which, in fact, shows that these individuals are not as much of a danger as they are perceived. And so through this bonding program, we hope to, in essence, correct the market by showing that they are not as much of a danger, as evidenced by the fact that we are willing at the Federal level to sponsor a bond for them. Chairman Scott. And you mentioned a problem with security clearances. Can you help us figure out how to help those with criminal records get security clearances and whether it is legislative, administrative, and/or both, what we can do to facilitate that issue? Secretary Acosta. The Federal Government should lead the effort, you know, for reentry. And I am happy to work with the committee. Chairman Scott. Thank you. Does the Ranking Member have a closing statement? Ms. Foxx. Yes, sir, I do. Thank you. Mr. Secretary, at the beginning of this hearing, you observed there are clearly differences of opinion between the two sides here on the dais. Differences of opinion, however, do not equate to different sets of facts. I have listened as the Democrats here today have twisted, stretched, distorted and mourned the facts that are so clearly in favor of American workers. Mr. Secretary, some of us here have research backgrounds. We know how variables can shift one way or another and that can contribute to different outcomes. But the trends in favor of the American worker are simply indisputable. That is bad news for folks who clearly long for the day when working families are solely dependent on the Federal Government. The way I see it, how you view the facts says a lot about where your priorities really are and who you are here to serve. Let's go through a few examples. Since the beginning of 2017, the economy has created 5.1 million jobs with 3.2 million created since the Republican Tax Cuts and Jobs Act. If you want to see moms and dads with more job options and college graduates with a hope for an entry- level job that will keep them out of their parents' basement, that is a good thing. If you think Americans should spend the next 10, 20, 30 years working toward retirement in jobs they hate with no other options, I can see why you would be disappointed. In 2018, average hourly earnings experienced the largest increase since 2009, with the strongest wage gains being experienced by the lowest decile of earners. I believe you spoke to that. If you want to see Americans rewarded by their employers for jobs well done, for their contributions to growing businesses, this is great news. If you want the government and the government alone to be able to claim credit for individual prosperity, this is not good news for you. Unemployment is holding steady near historic lows. If you believe Americans living independently, providing for themselves and making ends meet is good, this news is outstanding. If you glean your self-worth as a Member of Congress by longer unemployment lines, I can see why this would be bad news for you. Even as employment increased, workplace deaths, injuries, and illnesses fell in 2017. If you want Americans to go to work every day in safe and healthy workplaces, this is a positive development. If you would rather point to bad actors and tragic accidents as reasons for sweeping Federal legislation, I can see why these trends are disheartening. Since DOL published the final rule expanding access to association health plans, more than 30 major organizations in 14 States have established or announced their intent to establish an AHP to offer their employees affordable, high- quality health coverage. If you want Americans to have more options, lower cost and better health coverage, this is great news. If your political future lives and dies on how fiercely you protect Obamacare, these facts are certainly not helpful. And I need to point out again, Mr. Secretary, something that got lost several times today in the discussions. And that is that AHPs cannot violate the ERISA law. And therefore, things thrown out as facts today about what AHPs can do are simply not facts. I would also like to point out that what is being called junk healthcare plans are merely short-term plans that were allowed up until the last days of the Obama Administration. And then a rule came out not allowing them. And, if you want to call them junk plans, then you are calling the 1.5 million Americans who have chosen to get them people who do not have very good judgment. Since President Trump established the National Council for the American Worker, more than 200 companies, associations, and labor organizations have pledged to create 7,452,470 new work force development opportunities for Americans of all ages and backgrounds. If you value success for every American, from every neighborhood and every walk of life, you have a positive view of these facts. Again, if you want the government and the government alone to pick winners and losers, these are facts you will not like. Last year, as you pointed out a few minutes ago, the Department's Wage and Hour Division recovered more than $304 million in back wages for more than 265,000 workers across the United States, more than any other year in the agency's history. Mr. Secretary, you and those around you are doing excellent work. More importantly, the American people are doing excellent work. We are here for them. I am confident you are here for them also. I yield back. Chairman Scott. Thank you. And I thank you for your comments. And I just want to make a couple points for the record, one on apprenticeships. I wanted to clarify that during the hearing, we have heard about the expansion of apprenticeships to non-construction trades and professions and the industry- designated apprenticeships. Data from the Department of Labor's website lists manufacturing and healthcare in the top 10 industries for registered apprenticeships in Fiscal Year 2018 and that expansion of new registered apprenticeships is at a 10-year high. At a recent hearing, we heard from IT and insurance executives who are also successfully expanding registered apprenticeships across the country. So we do not necessarily need to go into lower-quality programs. We also heard that the lowest decile was the area with the most improvement in wages. And, as the Secretary mentioned, most of the States have increased their minimum wage recently and that is a major factor in increasing the wage for the lowest decile. In terms of association plans and the junk plans, the short-term plans, the problem that occurred was they went from 3-month plans, where they were really short term, kind of transitional plans, to up to 3 years. So that you could have a plan and keep it for 3 years, which really takes you out of the market. Those who joined those short-term plans with less protection, without the essential benefits, with underwriting so they can deny people with preexisting conditions, creates a pool of people who are younger and healthier. And, okay, they will pay less. But unfortunately, as I indicated in a document we are introducing for the record, if some pull out and pay less, simple arithmetic says other people will pay more. According to the CBO, that could be close to $1,000 more for a family policy. So, Mr. Secretary, I want to thank you for being with us today. It has been a long day. You have been forthright with your answers and I certainly appreciate that. And we have a lot of work to do. I think there are a lot of issues where we are going to go forward together, particularly on the bonding and the security clearances, working to see if we can get together on the short-term Pell for jobs, and with a lot of other issues where we'll be going forward together. So thank you for being here. Secretary Acosta. Thank you, Mr. Chairman. Chairman Scott. And if there is no further business, the committee is now adjourned. [Questions submitted for the record and their responses follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [Whereupon, at 3:07 p.m., the Committee was adjourned.] [all]