And the workforce will come to order. Good morning, everyone. And welcome to todays hearing. The committee is honored to welcome our distinguished guest, secretary alexander acosta. Secretary acosta has been at the helm of the department of labor since april and were grateful he could join us to testify for the First Time Since his confirmation. Mr. Secretary, welcome to the committee. We look forward to your testimony. Which we are sorry did not arrive earlier. And discussing the department of labors policies and priorities under the new administration. The department of labor is on the front line of the issues facing workers and job creators. It sets policies that have a widespread impact on our nations economy, employment growth, Retirement Security, and more. Whether they relate to health care, worker protections, retirement planning, Workforce Development, or employee wages and benefits, its the responsibility of this committee to am sure these policies are in the best interest of workers, employers, and taxpayers. I have said it before, but ill say it again. No matter what Party Controls the administration, this committee is dedicated to robust oversight. We take our oversight responsibilities very seriously. Today hearing is the latest step in our effort to hold federal government officials accountable. The American People are counting on that accountability, especially at a time when the economy is still improving. Were all encouraged by the Economic Growth we have seen this year. In the Third Quarter of 2017, real gdp increased at an annual rate of 3 . Thats a remarkable improvement considering its twice as much as the near 1. 5 growth rate we saw during the final year of the Obama Administration. Its also great to see more and more americans getting back to work. Nearly 1. 5 million jobs have been added since february. Meaningful progress has been made, but theres no question we have more work to do after eight years of lost opportunities. However, even though the Unemployment Rate is down, we still have 6. 5 million workers out of work. Including 1. 6 million on a longterm basis. 4. 8 million workers are working part time because their hours have been cut back or because they were unable to find a fulltime job. At the same time, we have 6. 1 million jobs unfilled, due in part to our nations skills gap. Expanding pathways to career success is a critical component in closing this gap and helping more americans find good paying jobs. Thats why congress and the administration have made Workforce Development and skillsbased education a leading priority. This happens to be National Apprenticeship week, so were eager to hear from you, mr. Secretary, on the steps the Department Plans to take to promote apprenticeships and other skillsbased education programs. This is something our community has been focused on for quite some time now. Its encouraging to have a partner in the white house and the department of labor. We look forward to further discussion of how we can Work Together to expand Educational Opportunities and empower more americans to realize their godgiven potential. In addition, i hope youll be able to provide the Committee Members and the public with your views about the departments efforts to advance Economic Opportunities for workers by strengthening workplace democracy, insuring safe and healthy workplaces, enhancing Retirement Security, and providing workers and employers more Affordable Health care options. Were also very interested in hearing more about the departments regulatory and enforcement agenda. This committee spent the early part of this year advancing resolutions under the condwre Congressional Review Act to clean up the mess from the Obama Administration to deliver r regulatory relief for hard working men and women. 5 of the 14 cr resolutions signed into law originated from this committee. And just last week, the house passed the save local business act, to roll back the obama era joint employer scheme that threatens 1. 7 million jobs, according to the American Action forum. We know the department has its work cut out after eight years in an unprecedented regulatory rampage, but we look forward to building on the progress we have made together so we can get government out of the way and unleash prosperity and opportunity. There are also a number of issues impacting Retirement Security that require our attention. This includes the need to protect access to affordable retirement advice and empower more americans to plan for the future. As the department that oversees so many important priorities, i feel i barely scratched the surface. We have a lot of ground to cover today, so mr. Secretary, thank you again for joining us. I look forward to our conversation. With that, i recognize Ranking Member bobby stotts for his opening remarks. Thank you, madam chair. I want to thank secretary acosta for appearing before the committee. Secretary acosta, youre the first agency head to appear before this committee. We have jurisdiction over health and human services, education, as well as labor. Youre the first one to come before the committee since the administration took over ten months ago. And i want to join the chairs criticism for the lateness of the arrival of your testimony. I also want to add that were disappointed you have given limited time, insufficient time for all the Committee Members ask fiveminute questions. Its been six months since the departments fiscal year 2018 budget request was submitted to congress, and although were already well into the fiscal year, this hearing is still timely since the appropriations legislation is still under deliberation. As the secretary, youre the steward of legislation this committee has passed over many decades that have made our economy fairer and workplaces safer. In appearing before this committee, i want to direct your attention to the portraits on the wall to your left. These leaders have secured passage of legislation that measurably improved the lives of millions of workers. Mary nortd norton, the first woman to chair the committee, chaired the passage of the fair labor starnz act of 1938. Carl perkins who spearheaded the health and safety administration. Tonkins who authored title seven of the Civil Rights Act of 1964. Behind me is george miller, who led the fight for the fair minimum wage act of 2007. And today, the department of labor bears the tremendous responsibility of implementing and enforcing employment laws covering about 10 million employers and about 125 million workers. However, in its first ten months, there are troubling questions about whether this department has reversed important progress made in Previous Administrations and laid the groundwork to undermine workers wages, Retirement Security, workplace safety, Affordable Health care, and skills development. First, the department of labor has taken steps to replace a rule issued by the Previous Administration that would have expanded overtime benefits for 4 million salaried workers. This rule increased the salary threshold beneath which most fulltime salaried workers would be eligible for overtime pay from 23,660 to over 47,000 and covers 35 of fulltime salaried workers. Unfortunately, a District Court in texas blocked the rule, and the department under your leadership decided not to defend this threshold in the court of appeals. Rather, dol has indicatesed it will issue a revised overtime threshold, and i understand in senate testimony, mr. Secretary, you mentioned 33,000 as overtime salary threshold based on inflation adjustment. There are lujitdimate questions about where to set the baseline. Do you base it on the 2004 level when 13 of fulltime Salary Workforce had overtime protection, or do we base or do we base it on the 1975 levels when 62 had overtime protections. Second the department is seeking a delay in protections for retirement savers. A study by the Previous Administration found as much as a quarter of a workers hard earned savings can be depleted by conflictinged a irs vice over 35 years. They required Financial Advisors to put the best interests of their clients before their self interests. There are questions about whether the departments actions regarding the fiduciary role of placing the demand of wall street ahead of the interests of workers. Third in line in line with the efforts to sabotage the Affordable Care act the department has released an interim rule that allows employers to eliminate coverage in the Health Care Benefit plans for contraceptive care based on religious or vaguely defined moral objections. This is squarely at odds with the Affordable Care act requirement that those services are discovered raises legitimate questions about the constitution. The department has also been directed to expand access to association plans, Association Health plans which as the committee has heard over and over again would steer Young Healthy people into low cost junk plans and leave sicker and higher cost people behind, there are increasing the price for everybody that doesnt get into one of these health plans. 40, the worker safety protections are under attack. While Previous Administration rules helped end the scourge of black lung disease and prevent deaths from silicareled diseases the current dol proposed a rollback of protections for construction and Shipyard Workers who are exposed to the toxic beryllium that is jetsons worked on toxic chemicals and combustible dust. It is unclear whether the dol will finalize a december 1 deadline for employers and hire Hazard Industries to reveal some logs. Without that data there are questions about how osha will secure information needed to target inspections to those work sites where workers are greatest at risk. You are aware that only relatively few inspections can actually be made. We want to make sure they are targeted. Without this information it cant be done. A fifth of the departments budget request cuts Work Force Development programs by 40 compared to current levels. This cut threatens access to job and skills Development Programs that workers need secure better paying jobs and while i hope the expansion of apprenticeships remains a bipartisan issue, the questions regarding the departments plans. For example, the department signaled it will allow federal support for apprenticeships relying solely on employer established standards but there is no clarity on whether this will produce high quality Transferable Skills credentials comparable to registered apprentice ships and no indication how we will ensure that federal dollars are only spent on quality programs. Mr. Secretary i look forward to your testimony and yield back the balance of my time. Thank you very much mr. Scott. Pursuant to Committee Rule 7c all members will be permitted to submit written statements to be included in the permanent hearing record. Without objection the hearing record will remain open for 14 days toy a lou such statements and other extraneous material referenced during the hearing to be submitted for the official hearing record. Its now my pleasure to introduce our distinguished witness, the honorard r. Anderson acosta is the secretary for the u. S. Department of labor. Among his career highlights he has served in three president ially appointed Senate Confirmed position. In 2002 he was appointed to serve as a member of the national lep Labor Relations board. In 2003 he was appointed assistant attorney general for the Civil Rights Division of the u. S. Department of justice. And from 2005 to 2009, he served as the u. S. Attorney for the Southern District of florida. Secretary acosta, i ask you to raise your right hand. Do you solemnly swear or affirm the testimony you are about to give will be the truth, the whole truth, and nothing but the truth . Let the record reflect, secretary acosta answered in the affirmative. Before i recognize you to provide your testimony, let me briefly remind you of our lighting system. We typically allow five minutes for each witness to present, although ill be somewhat flexible with your testimony give you are our only witness today. When you begin, the light in front of you will turn green. When one minute is left, the light will turn yellow. At the fiveminute mark the light will turn red. Members will each have three minutes to ask questions. And we understand you have a busy afternoon and have asked for a hard stop at noon. Secretary acosta, you are recognized. Member of the committee, thank you for the invitation to appear today. And let me just im honored to be the first cabinet officer to appear before your committee. I found out about that just a minute ago. I appreciate the opportunity to appear here to represent the administration and the hard working men and women of the department of labor and to provide an update on our critical work. At the outset let me just ta this has been a remarkable year of growth for the American Economy, for American Workers, for american job seekers and american job creators. Some highlights as the chairwoman mentioned since january 2017 the American Economy has created nearly 1. 5 million jobs. Gdp has grown at 3 or more for two consecutive quarters. This in particular is great news for Retirement Savings. The Unemployment Rate has decreased from just under 5 to 4. 1 , the lowest in just about 17 years. And the number of open fulltime positions in the American Economy is at a near alltime high of 6. 1 million open and unfilled jobs. Job creators want to hire. And job seekers want to work. And the fact that we have 6. 1 million open jobs speaks to the strength of the American Economy. Since becoming labor secretary, i have made it a point to travel to leave washington when i can and visit different places across the nation. I visited the ford rouge facility in michigan are a new f150 rolls off the Assembly Line every 49 seconds. I met with some apprentices there that are doing amazing work and receiving wonderful and strong workplace education. Nevada is another place that i visited. If you havent been there, i would commend that to you. It lookslike a modern university. It is a very hightech, very high touch training center. I went to the Graduation Program for dozens of steam fitters and pipe fitters who are working hard to educate themselves so they can go back home and educate new apprentices a train the trainers program. Throughout my travels, one thing struck me as very clear, our nations work force is an amazing work force. Its the American Work force. And it issi why we are doing so well as a country. It is the best work force in the world, which is one reason why we need to focus so much on Work Force Education. We at the department are hard at work to increase Employment Opportunities for all americans, to enforce safe, healthy, and fair workplaces, to promote strong benefit programs, and to ensure that the departments regulations are common sense regulations that make sense. So, i think its particularly as a chairwoman mentioned fitting that im here this week, National Apprenticeship week. President trump signed an executive order on apprentice ship expang. And this is an issue that is so important. We should be growing apprentice ships in this nation. Members of the task force included leaders from business, from labor, from educational associations from trade associations, to governors, Community Organization leaders, public individuals, all coming together to talk about how to expand apprentice ships across industries, especially into those industries where apprentice ships are underrepresented. One important takeaway from that meeting was that the apprentice ship programs as currently envisioned are not scaling. They are not growing at the rate that they could grow. Current lesion its. 3 of the American Work force and division is to scale and to grow these further. And we are engaged in discussions as how to how to do that. Let me also say that the trump administrations focus on expanding access to health coverage. On october 20th the president signed an executive order directing the dep