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Senate · Hearing transcript

Hearings to examine the nomination of Keith Sonderling, of Florida, to be Secretary of Labor.

Thursday, July 16, 2026

Summary

  • Keith Sonderling (Acting Secretary of Labor, US Department of Labor) testified seeking confirmation as Secretary, touting 900,000 new private-sector jobs and rising wages.
  • Sonderling defended Labor handling $1.5 billion in Education grants overnight, expanding registered apprenticeships to one million, and fighting unemployment insurance fraud.
  • Sen. Murray pressed Sonderling on rescinding overtime for four million workers and stripping minimum wage protections from 3.7 million home care workers.
  • Republicans praised no tax on tips and overtime as pro-worker while Democrats condemned overtime rollbacks, contractor rules, and Education program transfers.
  • The committee will vote whether to advance Sonderling's nomination to the full Senate for confirmation as Secretary of Labor soon.

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Hearing Details

Witnesses

Members Who Spoke

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Transcript

Sen. Cassidy (LA)14:57 – 18:24

The Senate Committee on Health, Education, Labor and Pensions will please come to order. Mister Sonderling, thank you for appearing before the committee and for your willingness to serve again the American people, and this time as Secretary of Labor. Mister Sonderling currently serves as the Acting Secretary at the Department of Labor as well as leading sub-agencies within DOL, Guiding policymaking, regulation and enforcement of nation's labor laws. He was confirmed by this committee as Deputy Secretary of Labor last year. Based on his extensive experience in labor and employment policy, and as a public servant, it is clear he is qualified. When President Trump nominated Mister Sonderlin as EEOC Commissioner in twenty twenty the Senate confirmed him with a bi- with bipartisan support. As Commissioner he has worked in a nonpartisan manner. to address illegal workplace discrimination and enforce laws as Congress intended. While at the wage and hour division, Mister Sondling developed President Trump's independent contractor policy, which empowered millions of workers to earn a living in a manner in which they chose. He has continued to push for the American's Americans' ability to work as independent contractors at DOL, championing policies that provide regulatory clarity to workers and businesses as to what constitutes an independent contractor. He has also clarified the joint employer standard protecting the American franchise model that employs over nine million Americans. The workforce is changing, it will continue to change as technology advances. As secretary, I am confident that he will protect workers, help businesses create more jobs, and help workers navigate AI driven changes in the workforce. The apprenticeship model offers a solution, but the current system is too burdensome and inconsistent confuse workers and businesses alike. We must simplify the registration process to make it faster and easier for employers to offer apprenticeships. Sena- Senator Banks and I introduced the START Act, so industries that are unfamiliar with apprenticeships will be able to easily participate. We must also broaden our retirement system, empowering workers to increase their opportunities to build financial security after finishing their career. Mister Sonderlin is already protecting Americans' retirement. Under his leadership, the Department of Labor ended Biden's pattern of seeking frivolous investigations into large employers for political purposes, ensuring that their work was focused on protecting workers' safety savings, not chasing headlines. Americans who are saving for retirement should have access to the same variety of lucrative investments as other investors such as union and government plans. I'm glad the agency proposed a rule clarifying how retirement plans can safely invest in alternative assets. I'm also glad to see Mister Sondelin cracking down on unemployment insurance fraud. Lax con lax controls on unemployment insurance systems place money in the hands of criminals, instead of Americans trying to find a job and to provide for their families. That's why I and this committee conducted oversight of states with egregious improper payment rates. I commend Mister Sondelin for demanding immediate action from states and territories so that Americans' tax dollars will be safeguarded. Thank you, sir, for appearing before the committee. I look forward to hearing more about how you plan to protect workers and create economic growth nationwide. And with that, I recognize Senator Murray.

Sen. Murray (WA)18:25 – 24:26

Well, thank you, Chair Cassidy, and thank you, Acting Secretary Sonderling, for being here today. I'm gonna be straight where I stand here. The Department of Labor has a straightforward mission. It's right there in the name. It's not called the Department of Big Business and Billionaires, it is called the Department of Labor. DOL exists to protect the people who do the work in this country. It exists to make sure an honest day's work means a fair wage, safe workplace, and a voice on the job. That mission is more important than ever since this president and this congress decided that their policy priorities would be trillions in deficit busting tax cuts for billionaires and giant corporations, and starting new wars in the Middle East. That agenda has worked for the very richest and for defense contractors. Elon Musk became a trillionaire. But the basics, groceries, health care, gas, all of that has gotten more and more expensive for regular working people. All while millions of Americans lose their health care, inflation is sky-high, and there is no end in sight to Trump's costly war. That's the state of our c- economy for working families. Thanks to this president. That's the reality for everyone who doesn't get a tax write-off for a private jet. So now you're here asking this committee for a promotion, since your predecessor apparently created such a hostile and scandal-plagued work environment, she was pushed out. But let's be clear. You are not a bystander to this administration's anti-worker policies and agenda. You were confirmed as deputy secretary in March of last year. You've run it as acting secretary since April. I just talked about the harm this ma- republican majority has done to our economy, but you have built your own anti-worker record at DOL. You rescinded the overtime rule in May, slamming the door on time and a half pay for more than four million workers who already aren't making much to begin with. At the same time, you're working to rescind the independent contractor rule. You want to let giant corporations classify workers as contractors, so they don't have to pay the minimum wage in overtime. A conservative estimate finds this rule would rob workers of three point seven billion dollars a year. That is an outside outright grift. You are also pushing a joint employer rule to let giant corporations take advantage of employment structures, so they aren't liable, when people like janitors or nurses get a paycheck stolen. or when there are child labor violations or other worker right violations. But here's what every worker watching needs to understand. This department treats its own employees exactly the way it is letting the worst employees treat theirs. For example, Trump's Department of Labor fired ninety percent of the office that worked to protect workers from discrimination by federal contractors since nineteen sixty-five and when they did that They ignored the four months' notice, its own union contract required. The Department of Labor violating a labor contract. You can't make that up. Then this Department of Labor stood by, while this administration's cl- stripped collective bargaining rights from more than a million federal workers. And you actually helped this administration pressure the federal agency that helps protect our s- civil servants. And when the Bureau of Labor Statistics did its job and reported honest employment numbers, the president did not like, its commissioner was fired with no cause. Who should call worker, who should workers call when this administration has done, been nothing short of outright hostile towards workers and its policies and toward its own employees. I don't have the time to get into how you've undercut this agency's capacity to crack down on wage theft child labor violations but needless to say, it will not be easy to rebuild what's been broken. Finally, I have to read something I never imagined addressing in a hearing for secretary of labor. In January, this department's official account posted a video captioned, one homeland, one people, one heritage, remember who you are, American. Historians immediately recognized the echo of the Nazi slogan, one people, one realm, one leader. Nobody had to squint to make that connection. You mmm leaders condemned that. Your own career employees called it disturbing. And that was not a one-off, it's been a pattern. Under your leadership, this department posts constant propaganda about Americanism. You decry globalism and make misleading comments about native-born workers. It is so apparent this department is posting this kind of garbage as a wink and nod to extremists and to get a rise out of everyone else who is paying attention. But you need to hear it from somebody. This kind of language and imagery is a disgrace. Mister Sonderling, Frances Perkins, the woman who we can thank for the minimum wage, for the forty hour work week, for social security, she built this department to stop employers with records like yours. So I'll close with this. The four million workers whose overtime you shut the door on didn't get a vote on that policy. But I have a vote here in the Senate. And I fear any vote to confirm you is for more of the same, to strip overtime protections for our workers, to undercut our unions, and to let giant corporations get away with robbery, literally. America does need a Labor Secretary who understands our workers, who should not be denied overtime pay or who will be pros- who will who will prosecute wage theft and chiber- child labor violations who believes we should increase the minimum wage, who understands America is way overdue for a national paid leave program, and who will stand up every minute for every worker's right to form a union. That is just where I stand. Thank you, Senator Castigo.

Sen. Cassidy (LA)24:27 – 24:48

We are, will now proceed. We are joined today by Keith Sonderling, nominee for Secretary of Department of Labor. He is currently the Acting Secretary of Labor and was confirmed as Deputary Deputy Secretary of Labor last year. He'll be introduced by his home state senators, Senator Rick Scott and Senator Ashley Moody of Florida, both of Florida. With that, I yield to my colleague, Senator Moody.

Sen. Moody (FL)24:50 – 24:53

I was gonna defer to my senior senator to go first.

Sen. Scott (FL)24:53 – 24:54

All right. Well, thank you.

Sen. Moody (FL)24:54 – 24:55

You're welcome.

Sen. Scott (FL)24:56 – 24:56

Uh.

Sen. Moody (FL)24:56 – 24:58

If you have less hair, you get to go first.

Sen. Scott (FL)24:58 – 27:04

Thank you. Well, first off, um, first off, uh, uh, Chairman, uh, Cassidy and Ranking Member Murray. Uh, thank you, Senator Moody. It's an honor to be here in front of this important committee. So I want it's an honor to be here to introduce a friend of mine. and the fellow authority in Keith Sonderling uh to this committee. A little over a year ago, this committee voted to advance Keith Sonderling to be the deputy secretary of labor. At that time I expressed my utmost confidence in Keith to fulfill the role of deputy secretary. The results speak for themselves, and he is without a doubt qualified to serve as the next secretary of labor. Throughout his career, Keith has proven time and again his deep respect for the rule of law and standing up for the American worker. He is committed to making America the best place to get a job. Fourteen years ago, I was honored to appoint Keith to serve on the Florida Judicial Nominee Commission when I was Governor. Throughout his tenure, he thoroughly vetted a record number of judicial candidates to serve on Florida's most important appellate benches. Following his service to the people of Florida, Keith took opportunities to serve all Americans in the federal government. During President Trump's first term, he served at the Department of Labor where he oversaw a record number of enforcement actions. Keith's exceptional record in work ethic later later led President Trump to nominate him to serve as commissioner of the Equal Opportunity Commission. Equal Op- Equal Employment Opportunity Commission. Through Keith's work to protect every American who came before the commission from arbitrary and illegal discrimination in the workplace. He has served faithfully, earned the respect of his employees, wisely managed its fourteen billion dollar budget, and enforced over a hundred and eighty laws to protect the American worker. During this transitional period where he served as Acting Secretary, he embraced the role of, he embraced the role confidently, providing stability and steadying leadership. He's gone above and beyond to reach out to Americans and provide them with guidance and resources to navigate our country's labor laws. As long as I've known him, Keith has served the hardworking people of Florida and this country with distinction, and there is no one I know more qualified to be the next Secretary of Labor. I urge all the members of this committee to favor report him to the full Senate so that we can swiftly confirm him. Thank you, Mister Chairman, Ranking Member, and good luck, Keith.

Sen. Cassidy (LA)27:06 – 27:07

Senator Moody.

Sen. Moody (FL)27:08 – 27:47

Thank you. Thank you for being here, uh, Senator Scott. And thank you, Mr. Chairman. Uh, it is my great honor, uh, to introduce one of Florida's own. Uh, not just a a Florida citizen and one of, uh, my constituents, but, uh, a University of Florida Gator Coach gets upset when I do that. But we're gonna do it anyway. UF alumni, Blue Key alumni, and I am told, Mr. Chairman, that there is a slew of florida gators in the audience can you guys stand up so i can see you i don't know maybe a little gator chop for the for the pictures good to see you thank you for being here to support he

Sen. Cassidy (LA)27:46 – 27:48

the committee will be adjourned

Sen. Moody (FL)27:50 – 27:53

he always tries to hold me in contempt but i was a judge and i used to teach contempt

Keith Sonderling (Witness)27:53 – 27:55

like today i'm a big lsu tiger fan chairman

Sen. Moody (FL)27:56 – 29:57

i have unknown keith for some time and can confidently say he is more than qualified to be our nation's secretary of labor uh under his leadership the department is putting workers and American industry first. He has been aggressively pursuing workforce development and pro-growth regulatory reforms. He's collaborated with other agencies to break the fraud economy across the nation and cut down on wasteful spending. He's helped ensure our job numbers continue to beat expectations. I have to personally say as AG I had to litigate to push back against the last administration who tried to overrule our policymakers our people and some of our laws. file suit as Attorney General, I can say uh without a doubt he um came in, understood our concerns, got right to work to determine what was best for Florida, and respecting our legislature's on behalf of the people's ability to determine what is best for our state and our citizens. I am confident he is the leader the Department of Labor needs to meet the moment, strengthen our workforce, support our economy, restore prosperity. Uh, I wanna thank his wife, Farah, his parents, Barbara and Howard, Being here today, I can honestly say I have watched him in his prior roles. He is the type of individual that doesn't seek fanfare or self-promotion. He just puts his head down and does the work, good work, and I have often found over the course of my career when I'm talking to o- to others, opportunity often follows. And I think that this is a great example of that. Keith, um, our state is proud of you, our un- university is proud of you. I know those in the audience are here with you to support you, are are are proud of you, and I know that your approach to this position is informed by many things, not just your education or your professional experience, but your family relationships and hearing some of the comments and introduction. I know both of your grandparents were Holocaust survivors that that that leads you and inspires you in your work on behalf of workers that came here to the United States. I hope you'll elaborate on that a little bit for the information and um consideration of all of my colleagues here today. So thank you. Good luck. We

Sen. Cassidy (LA)30:05 – 30:09

With that we'll begin questioning, I will defer to Senator Collins, whoops.

Sen. Moody (FL)30:09 – 30:14

I'm gonna get this up. No, do my own. His, oh, oh wait, I'm

Sen. Cassidy (LA)30:14 – 30:22

Sorry. Um, I just I just texted my staff for a cup of real coffee. Now you understand why. So, Mr. Sondland, your opening statement, I'm sorry.

Keith Sonderling (Witness)30:23 – 35:26

Oh, well thank you to Senator Scott and Senator Moody for that very kind introduction. Uh, Chairman Cassidy, uh, Senator Murray, and members of the committee, uh, it's an honor to once again appear before you for the third time, this time as President Trump's nominee for Secretary of Labor. Every member of this committee can agree on one thing. American workers are the best in the world. And they deserve a labor department that is effective, accountable, and responsive to their needs. Serving the American people at the Department of Labor has been the greatest honor of my life. It would not have been possible without President Trump's vision and leadership. I am grateful for the trust he has placed in me and for the opportunity to serve American workers, retirees, unions, and job creators. Above all, I want to thank my family, my wife, Farrah, our two boys, Spencer and Barron, and my parents, Howard and Barbara. Before public service, I practiced labor and employment law in Florida. I saw firsthand how the department's policies impact workers and businesses. I then joined President Trump's administration in twenty seventeen as a senior policy advisor at the Department of Labor. There, I learned the mission from the ground up, benefiting every day from the knowledge, experience, and dedication of my colleagues. Over time, I was entrusted with increasing responsibility. eventually leading one of the department's largest enforcement agencies. President Trump later nominated me as a commissioner of the Equal Employment Opportunity Commission where I served until twenty twenty four. I also taught the laws of the department enforcers as an adjunct professor at the George Washington University Law School. I then led President Trump's labor transition team before returning to the department on inauguration day. Few people have had the opportunity to experience the department from so many different perspectives, from the outside in private practice, as a policy advisor, as an agency head, as an adjunct professor, as deputy secretary, as acting secretary, and now as the nominee for labor secretary. These experiences have prepared me to lead this department with a deep understanding of its mission, its people, and most importantly, the Americans we serve. The story of the American worker is the story of America itself. As we celebrate two hundred and fifty years of American independence, we honor the men and women who built our nation. And thanks to President Trump's leadership, the American worker is once again the center of the nation's economic agenda. Since President Trump took office, more than nine hundred thousand private sector jobs have been created. Wages are rising. four O one Ks have reached record highs and more Americans are working today than at any time in our nation's history. President Trump promised to re-industrialize America and transform our economy. Now, trillions of dollars in new investments are revitalizing manufacturing, rebuilding our infrastructure, expanding domestic energy production, increasing our shipbuilding capacity, and positioning the United States to lead in biotechnology, AI, and quantum computing. The working families tax cuts are delivering for American workers. No tax on tips and no tax on overtimes are putting thousands of dollars back into the pockets of the hard-working Americans who keep this country running. As promised, President Trump's pro-growth agenda is creating unprecedented opportunities for American workers through manufacturing expansion and business investment. My responsibility is to ensure the American workforce has the skills to seize the opportunities while protecting their safety, while protecting their wages, and while protecting their retirement benefits. Under President Trump's leadership, we are restoring compliance assistance, pursuing rulemaking that replaces uncertainty with clarity, expanding retirement investment opportunities, promoting competition in prescription drug pricing, and helping more Americans start families. And as a member of the White House Task Force to Eliminate Fraud, I've worked directly with Vice President Vance to eliminate waste, fraud, and abuse, ensuring that taxpayer dollars serve Americans and not fraudsters. President Trump has always understood the American people are the foundation of our nation's strength and prosperity. And thanks to President Trump, the world once again knows that the American worker is our greatest competitive advantage. I am grateful for the trust the President has placed in me, and for the opportunity to help fulfill his promise to all Americans, you have my commitment that I will continue working every day to faithfully carry out the mission that has guided my service at the department since my first day, nearly a decade ago. Thank you, and I look forward to your questions.

Sen. Cassidy (LA)35:27 – 35:31

Thank you. And now again, I will defer to Senator Collins to open question.

Sen. Collins (ME)35:31 – 35:38

Thank you. Thank you very much, Mr. Chairman. Mr. Secretary, welcome.

Sen. Cassidy (LA)35:38 – 35:39

Thank you.

Sen. Collins (ME)35:39 – 37:46

Senator Kane and I have introduced the Religious Workforce Protection Act to allow foreign-born religious workers in the United States to continue to perform their essential work in communities across our nation. Our bill is narrow. It would allow the extension of temporary R one status, for religious workers past five years until he or she receives a decision on the permanent e b four visa application. Unfortunately, under an interpretation, and I realize this is by the State Department, in twenty twenty three many religious workers have to leave our country and the communities they serve for at least one year, for returning to their spiritual service. In Maine, local communities have faced challenges because of this policy. Of the fifty Catholic parishes in Maine, thirty-five benefit from the ministry of priests from other countries. Recently, three Catholic parishes in rural Maine communities, Sainte-Gate, Buxtehude, and Greenville were left without any priests for months. Many different faith organizations have endorsed our legislation, including the US Conference of Catholic Bishops, the Rabbinical Council of America, and the National Association of the Evangelicals. Important, our bill does not allow entry for any person who is not already permitted under the law to enter the United States. Under your leadership, would the Department of Labor support this much needed tar- targeted change in policy?

Keith Sonderling (Witness)37:47 – 37:59

Well, well thank you uh for the question, and obviously religious workers are our workers too. And you have my full commitment, and I understand there's a shortage in some of the workforce when it also comes um, to uh to um religious workers.

Sen. Collins (ME)38:11 – 38:45

Thank you very much. You have previously shared with the committee that your parents survived the Holocaust, as Senator Mooney mentioned. But you've also told us that they later lost out unemployment opportunities based solely on their religious beliefs. What role do you believe the Department of Labor should take in protecting American workers against religious discrimination?

Keith Sonderling (Witness)38:45 – 40:21

Uh, it it's a very important role for the federal government to play, to protect workers and religions of all faiths. And that's what you have my commitment to do. We've been doing that significantly. We set up a center for faith at the Department of Labor. were the first time we've made a website with all fifty states. And you can click on your state and see what your religious protections are, to see if you are discriminated in the workplace, where you can come and get the DOL resources, get the EEOC resources or state resources. But my family's personal story, as you heard, uh, both my grandparents, uh, were Holocaust survivors. They came over here before some of these, um, laws, uh, were in place, and they were discriminated based upon that, and weren't given the employment opportunities that others were going. solely based upon their religion and unfortunately we still see that today. And that's a very important role that that we have, you know, in this administration to root out all religious bias, including antisemitism. Uh, the Equal Employment Opportunity Commission continues, um, to bring those cases. We put out more guidance, uh, for religious workers to be able to come forward. Also, too, it's religious discrimination if religious organizations can't get the same federal services that other organizations could get. So, um, we've reversed some of the policies. from the body of administration that discourage that and uh in our funding agreements that go out. We make sure that religious organizations too know that they're going to be on equal footing to other types of organizations even though they're religious organizations to participate in federal government programs. So it's very important to me, it's very important to the president, he's issued exer- actually executive orders on antisemitism, on anti-Christian bias, and and on religious discrimination as a whole, and we will prosecute those cases as equally as we will any other case.

Sen. Collins (ME)40:21 – 40:22

Thank you.

Keith Sonderling (Witness)40:22 – 40:23

Mm-hmm.

Sen. Collins (ME)40:22 – 41:46

Um, finally, and I'm almost out of time uh time, uh, I had numerous disputes with your predecessor over Job Corps. Job Corps has been an enormously successful program that has truly changed the lives of students from disadvantaged backgrounds, giving them the skills, the sense of belonging, uh, the confidence that they need to be And as you know, under your predecessor, the two job corps, Centers in Main, Pa- ha- were forced to pause their enrollment. Uh, they now have restarted up and they truly have been so successful. But I wanna just, I'll submit my, um, question for the record, but I just want you to be aware of a bill that Senator Jack Reed and I introduced. uh that would provide greater alignment between the jobs that are available in the defense industry and the skills that job corps is uh teaching. It ensures automatic employment for job corps graduates who can choose to go into the workforce, the military, or continue with higher education.

Keith Sonderling (Witness)41:46 – 41:47

A- and briefly,

Sen. Collins (ME)41:47 – 41:48

I'll submit it

Keith Sonderling (Witness)41:47 – 41:56

we we talked about this at the budget hearing, I think you and I are gonna go to a job course center in maine in august together so i look forward to continue to working with you and working with that legislation

Sen. Collins (ME)41:55 – 41:57

thank you thank you mr. jim

Sen. Cassidy (LA)41:57 – 42:02

it's a veteran senator who starts her final statement with seven seconds left and then goes a minute more

Sen. Collins (ME)42:01 – 42:05

sorry i apologize i really do

Sen. Cassidy (LA)42:05 – 42:06

senator murray

Sen. Murray (WA)42:06 – 42:41

thank you um acting secretary sonderling right now you are working with secretary mcmahon to take over the department of education programs uh to help trump abolish that department It makes zero sense that DOL, an agency whose expertise is in supporting wage earners and job seekers, that it's being tasked now with taking over complex education programs from the Department of Education to help kindergartners and elementary school students. Do you know how many programs at the Department of Labor are focused on elementary school students?

Keith Sonderling (Witness)42:42 – 42:49

Uh, I can tell you that it makes a lot of sense for us to work with the Department of Education. you know, the education system needs to be able to.

Sen. Murray (WA)42:47 – 42:51

I asked you a specific question, I have very little time, so do you know how many programs?

Keith Sonderling (Witness)42:51 – 42:56

We have our IAA agreements under the Economy Act that uh allows us to provide services to the Department of Education.

Sen. Murray (WA)42:54 – 43:35

I'm asking if you know how many are focused at, well I'll tell you, the answer is none, none of them. And that is concerning because while some offices within your department are taking on a set of responsibilities they have no experience dealing with, they're also struggling to manage their own grant programs. As recently as this last January, a report from the DOL general noted the employment and training administration is quote " challenged in effectively managing its grant portfolio". Uh, so Acting Secretary Sonderling, do you believe it's Smart management's decision to add more grant responsibilities to an agency that is consistently unable to handle those tasks?

Keith Sonderling (Witness)43:35 – 44:13

I I think it makes a lot of sense. Our systems at the Department of Labor are more sophisticated. Based on prior reports and implementing um those recommendations, They're on a legacy G five system. We use grant solutions, which is the same system that we owe a title funds are distributed both from the labor side and from the education side to the same states and from an efficiency standpoint from the states who take this money, they're used to having to go to education and labor. The IAA is not dealing with policy. It's dealing with providing the department of education a service. And and I can tell you that the department of education career staff have been detailed to the department of labor and they're making those changes.

Sen. Murray (WA)44:27 – 45:06

Well Uh, let me, Let me just say, let me just say, uh, I, I, I, I, I, I, I, I, I, I appreciate smart new reforms, I appreciate smart new reforms, but I, but I, the facts are that these arrangements have been very wasteful. the facts are that these arrangements have been very wasteful. One of them cost taxpayers. One of them cost taxpayers. an extra million dollars and the rest the administration has refused now to tell us for months how much they cost or or really anything else despite bipartisan demands for that information and it's not working in one case ed transferred responsibilities to you only for you to have that to have to send that back to another department because dol lacked the expertise to handle it so badly

Keith Sonderling (Witness)45:05 – 45:27

uh on july first at midnight one point five billion dollars came over to the department of labor it was out by one two in the morning there was no lack the money went out to the states um in our updated system and the department of labor will continue to provide those services under the iias which are lawful under the economies act and also uh is most efficient for taxpayers and the states getting these money so i i stand by these

Sen. Murray (WA)45:26 – 45:43

well i would just say again uh uh i'm i just have to tell you americans want an agency that is focused on the education of early learners all the way through they don't want it shuffled off to another department that they can't find out the information or don't have the expertise to do it. That's my opinion.

Keith Sonderling (Witness)45:43 – 45:43

Understood.

Sen. Murray (WA)45:43 – 46:23

Let me move on here, cuz I just have a minute left. The labor department founding mission is quote, to promote the welfare of wage earners. You've run this department for three months, and in that time you formalized taking overtime away from four million people, moved to cut care workers minimum wage, teed up longer hours for fourteen year olds, and defended a budget that leaves workers in the dust. So let me be ver- a very specific question. On July second of last year, DOL proposed a new rule about wages and overtime pay for home care workers. If this draft rule is finalized, how many workers will be stripped of minimum wage and overtime pr- protections?

Keith Sonderling (Witness)46:23 – 46:50

Yeah, this is a a very complicated issue that we've worked on for a long time. And the the the current rule, you know, has essentially created a secondary market where workers are not getting overtime, they're not getting protections, those who are, you know, um receiving the services or going through companies to get the proper background checks so this rule will allow third parties to come back in to properly manage the payroll to properly manage their ability to do uh back background checks and have more workers in continuity of care

Sen. Murray (WA)46:50 – 46:52

well it you didn't answer my question

Keith Sonderling (Witness)46:50 – 46:54

what the the prior rule did was it it chopped up the people weren't getting overtime

Sen. Murray (WA)46:54 – 46:55

well let

Keith Sonderling (Witness)46:54 – 46:57

when forty hours hit they would get a different person and that worked efficiently

Sen. Murray (WA)46:56 – 47:21

i'm out of time and i'm gonna correct the record here because if if if this draft rule is finalized which is what my question was to you it is three point seven million workers, uh, home care workers who will be stripped of minimum wage and overtime protections. That's how many home care workers the department is ripping away minimum wage and overtime protections from. And, Mr. Chairman, to me that is anti-worker. Thank you.

Sen. Marshall (KS)47:22 – 47:22

Thank you, Senator.

Sen. Cassidy (LA)47:22 – 47:24

Uh, I will defer to Senator Marshall.

Sen. Marshall (KS)47:24 – 48:11

Well, thank you, Chairman. I wanna start, uh, w- of course welcoming uh Sec- Secretary Sundling's thank you for being here as well. I wanna start by just chatting about what i consider one of the greatest pro-worker agendas that we've ever seen accomplish over the last two years the working family tax cuts bill with republicans only votes, uh no taxes on tip, no taxes on overtime, absolutely pro-worker. We've seen great private private sector job growth, six hundred thousand private sector job growths. Because of the president's trade and tariff policies, we're bringing jobs back home, and manufacturing is great again. And one of the big pro-agent, pro-worker agenda I've seen is um an emphasis on apprenticeships and workforce Pell grant maybe just speak a moment, did I miss anything in that agenda?

Keith Sonderling (Witness)48:11 – 49:01

You did, there's so much. The working family tax cuts uh passed by uh by this edit and promoted by the president, um has just done so much for the American workers. Most people on TV hear no tax on tips, no tax on overtimes, which is great, but there's so many other beneficial provisions to workers, and you can break it down in two ways. ones of how we create more jobs and get more hours so the hundred percent uh deduction on new equipment is allowing companies to buy new state of the art safe equipment install them be more productive take a hundred percent tax credit that year freeing up money they would be paying in taxes to hire more workers to give to uh more overtime um in addition to the depreciation on expanding american manufacturing um no uh interest on the loans on the cars bought in america so so many other great things on the the business side but really for the workers um you hit the nail on the head when it comes to workforce.

Sen. Marshall (KS)49:02 – 49:13

there's something else a big priority for you and me our our tech colleges our community colleges and the flexibility in the pell grants apprenticeships maybe just speak about the priority and what the future looks like for those.

Keith Sonderling (Witness)49:10 – 50:11

yeah and also using being able to use five twenty nine accounts for vocational schools for registered apprenticeships um that otherwise were locked up in those four year degrees and that's gonna allow certificate programs eight to fifteen weeks where we know there's a lot of jobs and that's been a cost prohibition for a lot of employees because they can't afford those certificates, they weren't able to get financial aid, now workforce pal's allowed to do that, but ultimately it leads into the word apartment wants to go, to fill all these jobs that president trump has created is through registered apprenticeships. You know getting people in out of high school into high paying, high skilled registered apprenticeships, working with local community colleges, and we see community colleges as one of the biggest pieces of this puzzle, to be able to help employers, help small businesses design the curriculum to get workers right out of high school um into the trades and also have them design design those uh courses so uh thanks to the working families tax cuts uh we've just seen so many benefits continue to benefit the american worker not just putting more money in their pocket but also creating opportunities that didn't exist before so thank you for

Sen. Marshall (KS)50:11 – 51:11

if if senator moody can can uh bore us with her gator chop i wanna give a go grizzly sign for the my alma mater community college butler county community college back home that my wife and i graduated from. We don't have a chop or anything, but go Grizzlies. Uh, there, I got a one-off issue I, I promised I would run by you from our state treasurer back home, Steven Johnson, a good friend of mine. Um, and I, I have not brought this to your attention. You're welcome to follow up. But retirement plans lose track of their people sometimes. And a person hits the age of sixty-five, the retirement plan can't find the person. Somewhere four or five years ago we decided the state should figure this out. and there was a rule drafted in twenty twenty three that was never finished and and unfortunately they had a lower cap of a thousand dollars which is uh artificially low i'm asking you to commit to finishing the rule surrounding this hopefully with no cap so the stars can start working on getting people's money back to them

Keith Sonderling (Witness)51:11 – 51:43

this is an important issue because you're talking about retirees who have vested in their four one k's but forgot they worked at the company for god they ever had it and it may be around two trillion dollars out there of vested retirees who are not being able to find where their four O and K's are. So, uh, the department is really looking at this. Um, we're looking at ways to work with employers to come to us. We have a lost and found website where somebody can go type in their employer and see if they had a four O one K there. But that takes the employer giving us that information. That takes working with the plan sponsors and saying, give us your roles of who your, um,

Sen. Marshall (KS)51:44 – 51:46

Well, you'll commit to, to finishing the role.

Keith Sonderling (Witness)51:44 – 51:52

participants are. I will commit to that and we will look at that to minimus exception too. But the most important thing is we need businesses to have a safe harbor to be able to give that information.

Sen. Marshall (KS)51:51 – 51:58

Wait a minute. I got one thirty seconds left. I wanna touch um ESOPs, franchises and unions. OK?

Keith Sonderling (Witness)51:58 – 51:59

Thirty seconds.

Sen. Marshall (KS)51:58 – 52:14

Um So I I I don't know. Any any thoughts? You know, I we we wanna Republicans are trying so hard to be pro-union. I was raised in a union town. Just just speak what you can do to help union workers back back home. What what's your vision to help those folks out?

Keith Sonderling (Witness)52:14 – 52:53

Well, union workers are American workers and they're also the backbone of our country. So we continue um to make policies to make sure that um other industries um are also getting into registered apprenticeships which unions have done very well and i've talked to all the major union leaders seeing what they do to how they get so many people in the trades how many they get so many people into high paying high skilled jobs i'm trying to take that model and work with other industries and they're they're very open to working together because they want the american workforce to succeed they want it to be with american workers and all the new jobs the president has created you know we're all gonna work together to put the american worker uh first in that equation and i see both support from unions and management on that

Sen. Marshall (KS)52:53 – 53:00

i don't have time to ask you about esops and franchises but we'll um we'll keep having those conversations too as priorities thank you chairman

Sen. Murray (WA)53:00 – 53:00

thank you

Sen. Cassidy (LA)53:00 – 53:02

yes sir senator kane

Sen. Kaine (VA)53:03 – 56:36

mr. chair good to see you again mr. sonderling um first uh congratulations to the committee i don't want it to go unnoticed that the the older americans act reauthorization passed the senate floor couple days ago we worked on it like a year and a half ago Um, and it got held up at the end of the last Congress that it passed out of the Senate a couple days ago. We all worked pretty hard on that. Hopefully the House will act. Um, Mr. Sonderling, your testimony is, as I would expect, I, uh, very positive about the state of the economy and the Trump administration's accomplishments. People don't like being told everything's great when their lives are telling them otherwise. And I just got to put on the record, a Gallup poll in May showed that confidence in the economy is at its lowest in the last five years. Um, and the Gallup poll suggested seventy-six percent of American adults think the economy is getting worse and twenty percent think it's getting better. So I guess it's getting better for twenty percent or they think it is, but to tell three quarters of the American public everything's rosy and everything's going well, it just just doesn't square. It's got, there's a punch line to an old joke, what are you gonna believe, you know, me or your own eyes? People's own eyes are telling them this economy isn't working. And in, and that was a poll in May and I would venture to suggest it's gotten worse since. Um, polling, uh, not polling data just came out that says, for example, Virginians have paid a billion eight more in gasoline uh, since the war in Iran began on February twenty eighth, than they would have paid had we not started a foolish war and led to the closing of the Straits of Hormuz. And it's not just gas, it's, it's inflation on everyday goods and groceries and that was the the the data in the gallop poll about why people are feeling bad so i i know that folks with the administration are are duty bound and i would expect that i probably do the same thing of you know putting the best face on the evidence but i just have to say that uh the american public is is feeling the evidence and they're feeling really sour about the american economy right now i i noticed yesterday the president restarted tariff imposition and he started brazil cause he doesn't like the fact that brazil is prosecuting a friend of his brazil is a nation where we have trade surplus not a trade deficit so it's odd that the president is deciding i wanna put tariffs on brazilian products when we've got a surplus with them here's what i wanna ask you about the department of education has entered into fourteen inter-agency agreements and senator murray talked to you about them last year states including virginia reported a lot of funding delays and administrative confusion following the transfer of the career in technical education um services to dol. And months later the department of ed decided to move k twelve and other higher ed programs to the dol. Now, just the magnitude of these programs, nine point eight million kids in rural schools, five million English language learners, one point one million students who are uh experiencing homelessness, six hundred thousand native students, Twenty six million kids in title in schools that are title one schools, which are about eighty percent of the school districts in the country. That's all been foisted over onto the Department of Labor. That was not your choice. That was the the the president's choice. But as the nominee to be secretary of labor, can you tell me there's some foundational pillars for the IDEA, the Individuals with Disabilities in Education Act. Do you know what those foundational pillars are?

Keith Sonderling (Witness)56:36 – 56:39

Um, I do not, that's a Department of Education

Sen. Kaine (VA)56:39 – 56:39

Right.

Keith Sonderling (Witness)56:39 – 56:46

um program, but I would um to the extent we have the administration um duties to administer that to the states,

Sen. Kaine (VA)56:45 – 56:47

Yeah, well let let me let me

Keith Sonderling (Witness)56:46 – 56:50

I would rely on the current education staff who's housed in DOL now to make those admissions.

Sen. Kaine (VA)56:48 – 56:52

Yeah, let me I got you, but let let let me tell you what the pillars are,

Keith Sonderling (Witness)56:52 – 56:53

Sure.

Sen. Kaine (VA)56:53 – 57:38

OK? Because this is something that some think should be pushed over to DOL. The pillars of the IDA are free appropriate public education, least restrictive environment, individualized education plan, appropriate evaluation, parent student participation, and procedural safeguards. And these are not minor matters to parents who have kids with disabilities. I have a letter, Mister Chair, that I'd like to introduce into the record, and it's a letter signed by individuals who served in nine Republican and Democratic presidential administrations, including President Trump's first term, who were responsible for overseeing the implementation of the IDEA. saying that they do not think it should be moved out of the department of education if i could submit it for the run.

Sen. Cassidy (LA)57:38 – 57:39

without objection

Sen. Kaine (VA)57:40 – 57:45

um do you know the name of the program that funds afterschool and summerschool programs

Keith Sonderling (Witness)57:46 – 57:50

uh i'm that is a department of education program i would um i do not know the specific name but

Sen. Kaine (VA)57:50 – 57:52

the the name of that program is

Keith Sonderling (Witness)57:50 – 57:55

the courier sent out a detail from the department of education i would rely on to use

Sen. Kaine (VA)57:54 – 58:06

yeah the name of the program is the twenty first century community learning centers um how about expertise in the Higher Education Act. Is in your previous roles have you had to focus on the Higher Education Act?

Keith Sonderling (Witness)58:06 – 58:17

Uh, we believe that higher education and workforce development are linked. Uh, we've had some discussions about uh, OCTAE and also there's a lot of studies done that these programs should potentially be in the Department of Labor because ultimately,

Sen. Kaine (VA)58:17 – 58:19

But in but in in your experience in the past,

Keith Sonderling (Witness)58:17 – 58:18

you got a school to get a job.

Sen. Kaine (VA)58:19 – 58:21

have you done work in the Higher Education Act?

Keith Sonderling (Witness)58:21 – 58:24

Uh, I have I have not, but I would rely on those events.

Sen. Kaine (VA)58:23 – 58:56

And and I and I'm that's not a fault of yours. You've done certain things and you haven't done other things, but to take these major programs that affect millions of people and and push them over to the dol um i i'll just say mister chair last i'll just make a one long sentence there's a right way to do reform come to the committee and say hey look this is in statue but there's a better way to do it so let's work on a better way to do it the wrong way to do it is to treat the do e like it's a furniture store and having a discount going out of business sale on handoff pieces

Keith Sonderling (Witness)58:53 – 58:53

uh

Sen. Kaine (VA)58:56 – 59:04

willy-nilly to agencies that don't have the expertise And that's my concern about what's happening right now. Thank you. I yield back.

Sen. Cassidy (LA)59:04 – 59:06

Uh, I'll defer to Senator Hawley.

Sen. Hawley (MO)59:07 – 1:00:12

Thank you very much, Mr. Chairman. Mr. Sonling, good to see you. Welcome. I enjoyed our conversation a few days ago. Uh, it's great to see you here. Let me start with something you and I talked about then and that we talked about last time you were before this committee which is, artificial intelligence and the effect that that's gonna have on the job market. The Saint Louis Federal Reserve recently issued a report in which they said we may be witnessing the early stages of AI driven job The IMF, International Monetary Fund, estimates that forty percent of jobs, at least worldwide, are exposed to AI, so could suffer from AI job displacement. I, my question to you is this, what do we need to be doing as a government, and more specifically, what does DOL need to be doing now to be getting our workers in the country ready for the impacts of AI, and maybe more importantly, helping them keep their jobs, use whatever artificial intelligence is gonna be integrated into the workplace, to improve their productivity and their wages. I mean, should we be able to agree that the goal here ought to be not to lose jobs? We don't want that. We wanna see wages go up. We wanna see more opportunities for workers. How are we gonna get there?

Keith Sonderling (Witness)1:00:12 – 1:01:50

Well, we wanna see more jobs in this, and and there is the potential to do that. And this is where really this administration is taking this very seriously, um, both from a, uh, national competitive perspective, but also from a workforce development side. You know, we're working very closely with the National Science Foundation and to develop that ai curriculum that china has and they're teaching them in the second grade and we're not doing that but how do we get that curriculum how do we actually teach if you teach somebody on ai right now in two months it may be outdated so that's really where the partnership of what we're trying to take to get that education uh to get that curriculum into the education system we need to be talking to the employers and the tech companies who are employers who are buying this and the tech companies who are designing this and and that's where the issue has been not getting that information from them not having those partnerships and not sharing them. And that's what I'm trying to solve. We're launching the AI um action work hub, which is allowing us now to enter into MOUs with both tech developers and companies who are deploying this to number one see what the real impacts are, see how these uh programs are being designed to backtrack that number one into the education system but more importantly to make sure that American workers and students have those baseline skills they need. Because right now you have kids in high school, you have kids in middle school who think they're not gonna have a job, And you've employer ease who think they're going to lose their job. So the fear on both parts is not helping anybody. And to be able to get rid of that fear, we need to have education. To be able to get that education, we need the information from these companies designing it. So we've been able to enter into MOUs, and we want the Bureau of Labor Statistics to take this over, get them that information, so they can actually see if it's job loss, job augmentation, to be there to help them on both sides.

Sen. Hawley (MO)1:01:50 – 1:02:15

You you anticipate what I wanna ask you about next, isn't it important, it seems to me it's important, that we get all the data we can about AI job impacts in terms of jobs it's creating, jobs it is costing, how it is being integrated into the workforce. Senator Warner and I have a bill that would do this, co-sponsored by various members of this committee. But what would be even better is if DOL would would do this on its own accord. You and I talked about steps you're already taking.

Keith Sonderling (Witness)1:02:15 – 1:02:15

Right.

Sen. Hawley (MO)1:02:15 – 1:02:23

Maybe tell us that for the record. What are you doing in terms of collecting this information that I think is vital for us to know? what is really happening with AI in the workforce.

Keith Sonderling (Witness)1:02:23 – 1:03:34

We're trying to control the narrative from the doom and gloom that's out there, which is largely consultant driven. It's largely tech company driven, saying we have these products, it's gonna eliminate ten thousand workers. How does that make the American worker feel? And we don't even know if businesses are actually implementing this, or these tools can actually do what they say they're trying to do. So that's where we're really trying to get that information. And what we believe is gonna, we're we're going to see is that yeah, yeah, I impacted jobs can potentially make you more productive. It can make your workplaces safer. but we can't get that information um yet. So we have MOUs, we're part of our AI action plan, and we're getting that data from fortune five hundred companies, we're getting it from tech companies, we're getting it from unions, and we're gonna take that data and for the first time have BLS look at it, and say well here's where the impact actually is. And more importantly here's what you need to do, DOL, to get money to the state workforce agencies, to get money through the department of education, um to train those workers. That's never happened before. The second part, we just issued an RFI last week. through BLS to have uh the time study that BLS does include AI. So now they're gonna ask people, " How much AI do you use at home? How much AI do you use at work?" So in the meantime, before we get it from the employers and tech companies, we're gonna get it from the American workers who are being impacted instantly and we'll be able to see what they're doing.

Sen. Hawley (MO)1:03:34 – 1:04:59

Good, that's good. Uh, we need that data, we need it in order to make informed choices, and I think we've got a lot of hard choices to make with regard to AI. I wanna show you a picture now related to Amazon. Here's our friends at Amazon. Uh, this is what appears to be an Amazon employee, she's wearing the Amazon logo, she's carrying an Amazon box, she's wearing an Amazon hat, she's wearing, she's driving an Amazon truck, she's totally at Amazon's, under Amazon's control, and yet Amazon wants the American people to believe, and more importantly the government to believe that they don't have any control over all of this, that Amazon is just a simple franchisor, just like McDonald's, and that these are all, that this is, she's independent, uh, the truck driver is independent, uh, they're, this is the most ludicrous farce. Amazon controls all of this, and they're trying to game the system so that they get treated like a local franchisor in Springfield Missouri where I'm from who owns a local McDonald's, has his whole life savings tied up in it. Amazon controls all of this. Here's my point. I know you're working on revising the joint employer rule. It is absolutely vital that the joint employer rule not excuse Amazon's ridiculous efforts to game the system and prevent people like this from being treated well, getting a good paycheck and getting health care. And that's exactly what they're trying to do. They are one of the richest companies in the history of the world, and they want to be treated like they're a small business. They're not a small business, they're a monopolist. And I urge you to write that rule in such a way that Amazon is treated as they should be treated and that local small businesses are protected.

Sen. Hassan (NH)1:04:59 – 1:05:00

Thank you, Senator.

Sen. Hawley (MO)1:05:00 – 1:05:00

Thank you, Mr. Chairman.

Keith Sonderling (Witness)1:05:02 – 1:05:02

Yes.

Sen. Hassan (NH)1:05:03 – 1:08:07

Well, thank you, Mr. Chair, um, for this hearing. Welcome, Mr. Sonderling. I'd like to associate myself with the last comment senator holly made about joint employee employment rule it's really important to get this right and uh i appreciate his comments i also just wanted uh before asking you a couple of questions to just note that joint economic committee has found that over since president trump took office we've lost nearly a hundred thousand manufacturing jobs so the manufacturing sector is not doing a ok it's losing jobs what i hear in new hampshire it's all about tariffs Uh, Americans have paid fifty-six billion dollars more for gasoline, works out to about four hundred and seventy-seven dollars per household since this war of choice started. Um, my constituents are desperately worried about high costs, um, in every part of life that they absolutely have to be able to pay for, from health care to rent to child care to gas. So, um, just wanted to give you that perspective, um, on the economy from data and from what we're hearing from our constituents. Um, other thing I wanna just follow up on briefly is Senator Cain's questions about the IDEA. Uh, as you probably know, as my colleagues know, I have an adult son with disabilities. The IDEA meant that he was able to go to school, uh, with his peers, in our public school system, uh, where he was treated as an individual and people learned how to actually communicate with him, and educate with him. Uh, took a teacher realizing that Ben laughed whenever other kids in the room got the wrong answer which means my son was mean but smart. Um, took the IDEA made it possible for people to realize he could raise a hand to say yes or no and interact with material because he's nonverbal. Before the IDEA, children like my son were stigmatized, stereotyped, institutionalized. And the point of the IDA is to make sure that all children, kids with disabilities, without disabilities, get the kind of education where their needs are individually met. And while I am a strong supporter of community colleges and CTEs, kids should have a choice about higher education, uh, vocational education, um, the IDA gives kids with disabilities the same platform, the same opportunity, as kids without. And it's critically important that people with the expertise in educating our children are running this program, reforming this program as it may need to be. So I share the concerns here about having IDEA transferred into the Department of Labor. Now let me get to my questions. During your confirmation hearing last year, I gave you an opportunity to commit that you would follow the law, if confirmed as Deputy Secretary of Labor. I was disappointed and concerned by your unwillingness last year to make that commitment. So I'm gonna give you a chance to answer the question again. if directed by the president to take an action that would break the law would you follow the law or follow the president's directive

Keith Sonderling (Witness)1:08:07 – 1:08:14

uh like i said last year the president wouldn't have me do that and i would follow the law and i said last year i would follow the law i and uh

Sen. Hassan (NH)1:08:14 – 1:08:15

that uh and i'm

Keith Sonderling (Witness)1:08:14 – 1:08:16

and i will and i will follow the law

Sen. Hassan (NH)1:08:16 – 1:08:56

well the first part of your answer is the problem because there is almost daily evidence now of the president directing people or breaking the law himself now let's go on to another question You are were appointed last month by the president to serve as acting director for the office of government ethics. Its mission is to quote "to prevent financial conflicts of interest and other violations of the ethics rules" close quote throughout the executive branch. To help me understand the level of judgment that you would bring to the role of secretary, are there any actions that the Trump administration has taken in the last year that you have ethical concerns about or see as a financial conflict of interest?

Keith Sonderling (Witness)1:08:56 – 1:09:11

Uh, in my position as the Director of Office of Government Ethics, which I take seriously, I've taken ethics seriously my entire career, when I was at my law firm, when I was at DOL, when I was at the EEOC, this is very important to me, it's an honor the President has selected me to run the DOL.

Sen. Hassan (NH)1:09:10 – 1:09:21

Right, so let's get to the question, cuz I've got just about a minute left. Are there any actions that the Trump administration has taken in the last year, that you have ethical concerns about or see as a financial conflict of interest?

Keith Sonderling (Witness)1:09:21 – 1:09:24

I would rely and have relied on the career ethics

Sen. Hassan (NH)1:09:26 – 1:09:28

That's not my question.

Keith Sonderling (Witness)1:09:28 – 1:09:28

Have not.

Sen. Hassan (NH)1:09:28 – 1:10:24

You, I'm I'm I'm probing your judgment here. You are have been nominated to be a secretary of the Department of Labor. You are in the position of deputy secretary. You have a legal background. You take ethics seriously. The president personally took in billions of dollars last year, per his own financial disclosure reports, raising the question I thought he was supposed to be president of the United States, not off. on side deals. So if he's being, if he's focused on being president, how is this money pouring into his family's uh and his own personal accounts? Um he received a jet from Qatar and we had to spend four hundred million dollars of taxpayer money to retrofit that jet. He instructed uh his lawyers and the Department of Justice to enter into a sham lawsuit and settlement against the IRS. none of that gives you ethical concern

Keith Sonderling (Witness)1:10:25 – 1:10:36

the president has always followed the ethical rules all his financial disclosures have been certified by career ethics officials and he is committed and his family is committed to have no conflicts of interest and that's exactly what we're seeing

Sen. Hassan (NH)1:10:36 – 1:10:46

which is why his son's just invested heavily in defense industry that will have uh possible contracts with the department of defense that's just uh really disappointing answer thank you

Keith Sonderling (Witness)1:10:42 – 1:10:47

the president has committed to no conflicts of interest thank you senator

Sen. Cassidy (LA)1:10:47 – 1:10:49

i shall defer to coach tuberville

Sen. Tuberville (AL)1:10:50 – 1:11:06

Thank you, Mr. Chairman. Mr. Salton, welcome. Glad you're here. I hadn't seen this many Gators in a long time in one spot. I think I recognized a few throwing stuff at me when I used to coach down there. You know, I can't think of other than Jordan-Hare Stadium.

Keith Sonderling (Witness)1:11:06 – 1:11:07

Is Senator Moody doing that?

Sen. Tuberville (AL)1:11:07 – 1:11:23

Yeah. Other than Jordan-Hare Stadium and Bryant and Denny Stadium. Uh, the swamp, Ben Hill Griffin is hard place to play, and uh, I really enjoyed kicking y'all's ass. So, uh, because of that. But, welcome and thanks for what you've done.

Keith Sonderling (Witness)1:11:23 – 1:11:24

Appreciate you.

Sen. Tuberville (AL)1:11:24 – 1:11:54

You've done an an outstanding job. We're looking forward to you continue that. Uh, you know, you uh, you're a member of Vice President Vance's uh, task force team to try to stop this abysmal amount of fraud and money being stolen from the taxpayers. Hundred million dollars an hour, the last I heard. I can't imagine that. And uh, so you're on that task force. Are you working with the states? How are you collaborating with the states to get this done, to, to stop this damn fraud?

Keith Sonderling (Witness)1:11:54 – 1:13:25

So, my role on the task force is related to unemployment insurance fraud, and Department of Labor plays a significant role uh, in making sure that there's no fraud, because all fraud is a theft on taxpayer dollars. And what we saw in the unemployment is uh, system uh, during COVID time, a hundred and thirty-five billion dollars was stolen, gone. Um, st- stolen by uh, crime, stolen by foreign actors. Um, social security numbers were being stolen, uh, millions of dollars were going out to people in jail, to dead people. Uh, somebody who was born in the year twenty one fifty four successfully applied for unemployment insurance and was able to get it. So countless stories of like that hurts the American workers who actually need that money. So, um, under the vice president's leadership on the task force, we have the license now to finally stop this, um, and go after states that are not complying. So I sent a letter to fifty three governors and governors of territories um uh basically saying that we are tired of the fraud and we want you to put these measures in for the fraud to stop, and if you don't then there's going to be consequences and there's never been consequences before and President Trump is allowing us to do that. So um more importantly we're telling the states verify first and pay later, stop paying first and verify later, and that's how much money has gone out. So really pushing on the states to get the technology to verify who they are and we're trying to help them we want a we're building a centralized system called unemployment uh dot gov that alabama is helping us with and we see you know alabama is an amazing example

Sen. Tuberville (AL)1:13:25 – 1:13:26

yeah

Keith Sonderling (Witness)1:13:26 – 1:14:18

you know they've really gone after this and when they had improper payments the last few years they got a hundred percent of it back they have some of the lowest fraud and improper payment rates in the country because they're verifying they're going and making sure that person is alive that person lives in alabama that person worked in alabama they're going the employer this person work for you or is this a fraudster in china and they're doing it and it's showing results and not only that they're following up with employers is this person even eligible for it and that's not what's happening you know specifically in democrat states uh like new york that is still paying two million dollars out every single day so um our inspector general anthony diaz pesito we we have a partnership together so i'm doing the front-end side where we're gonna make sure states like alabama has done put in those controls and then we're gonna go after those criminals we're gonna go after the frauds with criminal prosecutions um through our ig so this is one of the most important things we could do at the department of labor is stop the theft of taxpayer dollars

Sen. Tuberville (AL)1:14:18 – 1:14:23

yeah i think i'd ai is gonna be the the key i think it's gonna be the savior for fraud

Keith Sonderling (Witness)1:14:23 – 1:14:24

especially with like

Sen. Tuberville (AL)1:14:24 – 1:15:15

i mean there's no way there's no way humans can mentally keep up with five trillion dollars a year we can't do it i don't care how smart you are and so we have to have machines to do that and uh we gotta stop it i mean we're forty trillion in debt it's ridiculous and we talked about ai earlier with uh senator hawley I'll be hopefully governor next year of Alabama. We're gonna start in elementary school, start teaching our kids AI. We can talk about AI all we want. If we don't teach it, it's not gonna work. So we have to learn it at a young age. And and we're already preparing for that, for young kids in elementary school, all the way up through high school. And they have to learn to use it the right way, uh ethically, and uh uh that's the future. You know, our education system's abysmal right now, it's going to heck in a handbasket. I worked it for thirty five years, I know um our federal government's been broken because all this fraud, but we have to be able to educate our kids in this AI.

Keith Sonderling (Witness)1:15:15 – 1:15:18

Education needs to lead to jobs, and that's reason.

Sen. Tuberville (AL)1:15:15 – 1:15:43

A couple. Yeah, a couple other things here I just wanna say, you know, we have this four one uh, uh, plan that we're trying to get through, uh, for retirement funds, uh, through private act with cryptocurrency. It's called, my bill's called the Freedom Financial Act. Uh, we're trying to get it through committee, and what does all this mean for the average American? Uh, and their retirement accounts. if we can pass a bill like this where they can actually get something out of their retirement.

Keith Sonderling (Witness)1:15:43 – 1:16:41

We're very working very hard at the Department of Labor to make sure that four O and K plans have access to alternative uh investments, just like uh union pensions do, uh just like state pensions do. Right now the four O and K market is largely uh in index funds and um those workers deserve private assets, they deserve diversification, just like somebody with a pension plan. So this is one of uh my top initiatives to make sure that there's parity now between the pension system and the four one k system to to be able to diversify for for individuals you know who just have a four one k to get into those private markets that were previously only for accredited investors this is how president trump is gonna make america wealthy again by allowing everyone to democratize democratize that access allow everyone these opportunities um outside of just very conservative uh index funds and we're at the department we don't push one fund over the other we lay the neutral framework and let the employers decide under their fiduciary obligations, which is the best for their employees.

Sen. Tuberville (AL)1:16:41 – 1:16:58

You don't have to answer this question, but I just wanna throw it out there. Our H one B program sucks, OK. Uh, Microsoft inspiring people and hiring foreign labor, and and and that's wrong. And we have to hire American workers and I hope you're on top of that. Thank you, Mr. President.

Keith Sonderling (Witness)1:16:57 – 1:16:58

Thank you, Senator.

Sen. Cassidy (LA)1:16:58 – 1:17:03

Coach, one more important question. What was your lifetime record versus the Gators? Well.

Keith Sonderling (Witness)1:17:03 – 1:17:05

two thousand one is very hard for us

Sen. Tuberville (AL)1:17:03 – 1:17:10

all i yeah now that you all renamed it spur your field i'd love to come back down there and kick his butt one more time

Sen. Cassidy (LA)1:17:12 – 1:17:15

so i take it it was good uh senator hickenlooper

Sen. Hickenlooper (CO)1:17:16 – 1:17:32

thank you mr. chair um uh mr. sonilingue thank you welcome back um thank you for uh taking time to meet with me we talked a little bit about uh apprenticeships the administration has said their intent to expand the number of apprenticeships to eventually reach a million

Keith Sonderling (Witness)1:17:32 – 1:17:32

one million

Sen. Hickenlooper (CO)1:17:32 – 1:17:55

um uh many apprentices were pulled off their jobs when the administration cancelled various infrastructure projects clean energy projects um i think we do need novel solutions to get more apprenticeships in place um what's your approach to that how do we dramatically ramp up the number of apprenticeships to achieve a million apprenticeships

Keith Sonderling (Witness)1:17:55 – 1:18:26

oh it's our goal and the president's goal to get to one million active registered apprentices we believe this is fastest um pathway into the workforce, a debt-free way where students can uh earn while they learn. But we need to get more employers involved in this. We need to get more industries involved in this as we see manufacturing coming back, as we see critical infrastructure coming back, as we see these um areas where um they're very high paying trade jobs. We need to work both for the students to understand how high paying these jobs are. Average registered apprenticeship, eighty-six thousand dollars per site.

Sen. Hickenlooper (CO)1:18:25 – 1:18:49

No, no, I get that. I, and I understand all those arguments. I'm, I'm at i guess the question i'm asking and and i agree we've gotta persuade parents we we've done this in colorado with career wise. and demonstrate it's not that hard people parents do see that their kids don't. necessarily have to go to college and get a lot of debt they can go. and get be an apprentice in not. not only trades but in banks insurance companies you know all these different other choices.

Keith Sonderling (Witness)1:18:48 – 1:18:49

all of these things.

Sen. Hickenlooper (CO)1:18:49 – 1:18:51

how long do you think it's gonna take to get to a million apprentices.

Keith Sonderling (Witness)1:18:52 – 1:19:02

uh we're halfway there we're almost at five hundred thousand registered apprenticeships we've started over. four thousand new programs in this administration. So as we discussed, a lot of this is getting to the parents,

Sen. Hickenlooper (CO)1:19:02 – 1:19:02

No, no.

Keith Sonderling (Witness)1:19:02 – 1:19:17

early, in elementary schools, in middle schools, saying this is just as an equal path as college, and you need to start, you know, looking at this as a viable option that you're going to make more without the debt. Three hundred thousand more in your career if you're an apprentice than not being in an apprenticeship position.

Sen. Hickenlooper (CO)1:19:16 – 1:19:17

Right.

Keith Sonderling (Witness)1:19:17 – 1:19:19

So the number is there, the stats are there, we just need

Sen. Hickenlooper (CO)1:19:19 – 1:19:23

You don't have to persuade me, I'm I'm in, alright. I'm I'm I'm all for apprenticeships,

Keith Sonderling (Witness)1:19:21 – 1:19:24

Um, but that's my job here, I'm supposed to persuade you to like me.

Sen. Hickenlooper (CO)1:19:23 – 1:19:46

I just been uh trying to trying to push for a sense of urgency that, that we get there, uh, faster and then it's not just restricted to certain, to people eighteen and over, right? In other words, sixteen year old kids, seventeen year old kids can do, work in a bank or work in an insurance company couple days a week while they're in high school and come back and, and actually learn things that'll make them more successful in their jobs.

Keith Sonderling (Witness)1:19:46 – 1:19:59

And we're working on industry to do that, and that's a very big part of it. If starting earlier, um, either, you know, full of apprenticeship pre-apprenticeship um that's really how we're gonna change the narrative of this and to hit president trump's goal of one million active registered apprentices

Sen. Hickenlooper (CO)1:19:59 – 1:20:47

appreciate that um uh there's been uh senator hawley uh i watched on tv as he done a couple of questions on ai um obviously rapidly making its way into all aspects of the workplace um and i think there is we agree that that we need to find ways to support workers as we go into this um we introduced the ai workforce prepare act um, s- Senator Banks and Senator Hassan and Senator Huston on this, and would direct the Department of Labor to assess AI's impact on the workforce. Um, you've also done work, as you've discussed before, on AI employment during your tenure at the EEOC, the Equal Employment Opportunity Commission. Um, i- at one point you say that the less enforcement we have on the federal level, the better. Is that, that's not universally true, though.

Keith Sonderling (Witness)1:20:47 – 1:20:49

Less enforcement on the federal level.

Sen. Hickenlooper (CO)1:20:49 – 1:20:50

The better?

Keith Sonderling (Witness)1:20:51 – 1:20:51

I said that?

Sen. Hickenlooper (CO)1:20:51 – 1:20:57

That's what, that's what you're, that's what you're saying, uh, when you make a statement like that, sometimes it get taken out of context. I'm giving you a chance to say it.

Keith Sonderling (Witness)1:20:57 – 1:21:58

Oh yeah. No, I I believe the federal government plays a very key role in this, and the most important thing we can do is talk to all stakeholders when it comes to AI, and it's a much different world than we're normally dealing with. You have everything from the the the VCs who support it. You know, they don't wanna give money to a start-up that's gonna discriminate. A start-up doesn't wanna create a product that's going to discriminate or harm workers. A company's not going to wanna buy a product that does that. And ultimately the consumers in our case are the employees, they don't wanna be subject to a a product that's going to take away their job or discriminate against them. So that's really where I've been working very hard to get everyone to understand that there's long-standing loss. Whether it's a National Labor Relations Act from the thirties, the Fair Labor Standards Act from the thirties, the nineteen sixties Title VII, or even the ADA in the nineteen nineties that equally apply to technology that's out there today, and the ones that they're developing, and they their products are not going to work, it's not going to help the American worker. unless they build, design and deploy them in relation to how those laws work. And I don't believe we need new laws for that. We need to advocate for our existing laws and our existing frameworks to apply to this new technology.

Sen. Hickenlooper (CO)1:21:58 – 1:22:18

Right, but, and I agree that that those existing laws and and setting standards, the making sure that we have standards that are gonna make sure that kids and American's people are are held safe. And could be, you know, that the tort system will hold pe- hold uh AI companies accountable. for you know damages done to our populations.

Keith Sonderling (Witness)1:22:18 – 1:22:22

And that's why I discussed with Senator Hawley, it's building that trust

Sen. Hickenlooper (CO)1:22:21 – 1:22:22

Right.

Keith Sonderling (Witness)1:22:22 – 1:22:38

for everyone to be able to want to embrace these tools, use these tools so we can get the benefit from these tools, we can get the productivity from these tools, we can get the potential safety from these tools, but none of that happens without trust and I believe uh in the Department of Labor and the EOC and the LRB to be able to be a big part of that equation.

Sen. Hickenlooper (CO)1:22:39 – 1:22:43

Right and that's a alignment of self-interest we agree trust but verify anyway.

Sen. Husted (OH)1:22:43 – 1:22:46

thank you very much again i yield back to the chair

Sen. Cassidy (LA)1:22:44 – 1:22:49

thank you thank you senator hegelupper i shall defer to senator housted

Sen. Husted (OH)1:22:50 – 1:22:50

thank you mr.

Sen. Cassidy (LA)1:22:50 – 1:22:52

a college football athlete

Sen. Husted (OH)1:22:52 – 1:23:45

yes although i never played against florida thankfully so uh the um thank you mr. chairman uh i want to um i wanna ask you a question about the working family tax cut plan because in there for the average family of four in the state of ohio for example uh they will see a net six thousand dollar tax benefit versus what they would have seen if the bill didn't pass. What does that mean? It means a twenty two hundred dollar per child tax credit. It means no tax on tips, no tax on overtime. And I've been to factories where I've talked to, uh, I talked to one individual who said he was gonna save all of his overtime pay for the whole year and use it to put a down payment uh help him get his down payment on a ho home. How much do you think those policies help families and help add people to the labor force cause there's more incentive for them to actually work.

Keith Sonderling (Witness)1:23:45 – 1:25:14

As I travel the country I hear about it all the time, when I go to a restaurant we hear about how uh workers are getting more um pay from no tax on um tips and then no tax on overtime with more production the manufacturing index has been up six months in a row, we've created new manufacturing jobs um every month this year uh more overtime. So we really see it in a lot of different ways, the obvious ones that say more take home pay from um no tax on tips no tax on overtime it's the largest obviously you know tax bill of all time for getting more money in in workers products but pockets but what i said earlier they're seeing it in ways a lot of people don't understand so when that factory can expand you know for their american production that is incentivizing companies to who have left the united states to come back so that's why we're seeing toyota invest you know a new plant three billion dollars to build a tacoma here that's why harley davidson is bringing back production to Wisconsin uh and Pennsylvania in in Ohio you know General Motors continue to make more investments what does that do they get the tax deduction from that it's being able to create more production lines and they're be able to hire more workers and be more productive so it really helps the economy in much larger ways than just that for that individual that they don't understand and that's really the benefit of this bill and why it's so impact impactful and why it's so revolutionary why it's creating more private sector jobs all jobs created in President Trump's second term or in the private sector that's exactly what he promised and that's gonna help those workers on the sidelines and those forgotten workers back into the workforce for American high paying jobs.

Sen. Husted (OH)1:25:14 – 1:25:24

let me shift gears quickly to career technical education and apprenticeships. Passion of mine, something i've been involved in in helping grow uh and and you mentioned and there's a need.

Keith Sonderling (Witness)1:25:24 – 1:25:24

yup

Sen. Husted (OH)1:25:24 – 1:26:12

there's a need we have construction jobs that are growing swiftly in ohio we've had we've added three thousand manufacturing jobs in the last year and uh the apprentices and the and the talent that comes with it, we we can graduate people right out of high school, career ready, go from graduating on a Friday to going to work on a Monday, and then have the many of them working while they're still in high school. But here's an insidious thing that's happened to this country for those young high school students, if they come from the lowest income families. Many of them can't work while they're in high school. Why? Because their income counts against their parents' income, and many of them are put on the silence. And I wanna tell you a story. And I want your help with this, cuz I've got a solution called the Upward Mobility Act here in in the Senate.

Keith Sonderling (Witness)1:26:12 – 1:26:14

I I visited Cincinnati Community College and I saw

Sen. Husted (OH)1:26:12 – 1:26:13

Uh

Keith Sonderling (Witness)1:26:14 – 1:26:16

firsthand how the apprenticeship programs work in violence.

Sen. Husted (OH)1:26:14 – 1:27:40

It Uh uh I I a I asked, I was with a a principal at a career tech facility, he said, he told me about this problem. He said, " We have lots of students who can't take these apprenticeships, pre-apprenticeships, uh, work experience because they, they, their family would lose their benefits. And I, I said, how big of a problem is this? And I met a young lady who, as a junior in high school, moved into a trailer on a vacant lot so that she could go to work and her, and her younger brother and sister wouldn't lose their SNAP benefits, okay? This is, and I went and I started asking principals all around the state of Ohio at these career centers and said, " Is this a big problem?" They said, " Yes." So we have we have high school students who could go to work being uh electricians, plumbers and pipefitters, healthcare, uh welding, but they can't auto body, they can't take the jobs because their their family would get they would lose their benefits. And and so I have the upward mobility act which would help fix this issue, so that students in high school could actually go to work and then graduate career ready and do what we want them to do, become adults that are part of the workforce living their version of the American dream. And so, I I want your reaction to that, and I would like your commitment to work with us, to help solve this problem, to help more of America's youth get ahead in life.

Keith Sonderling (Witness)1:27:40 – 1:28:12

I I you have my commitment to work with you on that, but I do think there is a parallel to the working family tax cuts. The ABLE accounts, um which the working family tax cuts uh increase the limit for uh disabled workers to put savings away in, um is now allowing people to continue with those uh benefits that they need for their disability and continue to work um save for themselves uh and be able to participate in society. So I think the working family tax cuts um has a great example that you've already passed on uh parallel to the ABLE accounts, but you have my full commitment um to helping you with any technical assistance that you need on this.

Sen. Husted (OH)1:28:12 – 1:28:26

Uh thank you. And Mister Chairman, this is um this is a tragedy that we have created a poverty trap in this country for our lowest income families and their children. And uh I I hope that this this Congress will fix it. Thank you, Senator.

Sen. Cassidy (LA)1:28:26 – 1:28:28

Thank you. Um, Senator Baldwin.

Sen. Baldwin (WI)1:28:29 – 1:30:19

Thank you, Mister Chairman. Um, thank you for uh being here, Mister Sonderling. You are the um President's Nomine- Nominee for uh Secretary of Labor. But you're getting asked a lot of questions about education. And I'm gonna continue in that vein for a short while, hopefully then pivot to some uh more labor-focused issues. But the reason is because this um administration and this president is um uh taking repeated action to undermine and dismantle the Department of Education, which is created by Congress and can only be eliminated by Congress, but they're figuring out all sorts of ways to scatter education programs across the federal government including at the Department of Labor, creating a system that i believe is much more complicated and much less efficient, particularly for states and public school districts. Um, state and public school districts previously had to work with just one department, uh, uh, department of education. Um, now they're forced to work with multiple departments, multiple grant systems, and it's particularly concerning as this, um, administration continues their dismantling effort for the Department of Education, now moving IDEA and special education to the Department of Health and Human Services. Um, parents and their children really gain nothing from separating federal education programs. And this transfer only undermines services that go to support special education programs. But back to labor, um, I would like to know exactly what is gained by having the Department of Labor administer For example, the impact aid program.

Keith Sonderling (Witness)1:30:19 – 1:30:26

Um, we can help with efficiency. We can help states and nonprofits get the money, uh, that they're entitled to.

Sen. Baldwin (WI)1:30:26 – 1:30:27

So, on impact aid,

Keith Sonderling (Witness)1:30:26 – 1:30:28

But if our registration systems were outdated

Sen. Baldwin (WI)1:30:28 – 1:30:56

are you using the, uh, uh, impact and grant systems, IAID, uh, impact aid grant systems, IAGS, uh, system that was developed for that purpose in uh education or are you transferring it into the department of labor uh grants database that you were just telling me uh in my office uh that is so incredibly efficient

Keith Sonderling (Witness)1:30:56 – 1:31:16

uh we the the career professionals at the department of education are working with the career professionals at the department of labor both who have expertise in this area to be able to administer all the grants that congress has given us and i can assure you this is being done um by the professionals in a way to make it easier for states to get the money and there's been a lot of complaints from these states

Sen. Baldwin (WI)1:31:15 – 1:31:23

so you think it's a benefit added to move impact aid from the department of education to the department of labor

Keith Sonderling (Witness)1:31:22 – 1:31:45

senator the programs are not being uh moved under the iais it's an agreement to uh think of us uh as a firm that's just um uh consulting and helping them move these uh programs money but not the actual programs themselves uh uh uh those programs still all remain at the department of education They're being run by career experts at the Department of Education. The Department of Labor is assisting them.

Sen. Baldwin (WI)1:31:44 – 1:31:47

At the Department of Education, but sitting in the Department of Labor.

Keith Sonderling (Witness)1:31:47 – 1:31:49

For for efficiency purposes,

Sen. Baldwin (WI)1:31:48 – 1:31:48

Correct?

Keith Sonderling (Witness)1:31:49 – 1:32:00

we've moved, um, you know, a few tranches of employees to the Francis Perkins building where they all have their own offices. Um, they all have their own computers. They have parking. Um, and they are working out of that building to

Sen. Baldwin (WI)1:32:00 – 1:32:01

What about title one program?

Keith Sonderling (Witness)1:32:01 – 1:32:02

to work.

Sen. Baldwin (WI)1:32:02 – 1:32:15

How how will parents and teachers and students, um, gain from uh uh having the department of labor administer title one programs

Keith Sonderling (Witness)1:32:15 – 1:32:29

the department of labor uh administers you know we owe programs under the different titles and uh we have the expertise we know the states we we know the stakeholders in the states the money flows in the same way through ioa to the states as it does education and we're working together

Sen. Baldwin (WI)1:32:28 – 1:32:41

and what sort of measurement will you have or what sort of evidence will you present that transferring these programs to department of labor has made anything better for students teachers parents

Keith Sonderling (Witness)1:32:42 – 1:33:00

yeah yeah i will um provide you with all that data you have my commitment i will show you how these programs are being effectively administrated how they're saving taxpayer dollars and that the department of labor is in the best position to do this under the economies act under a long-standing iaas which all administrations um have used including during

Sen. Baldwin (WI)1:32:59 – 1:33:37

it'll be very interesting to see your evidence especially on things like impact aid why department of labor should be better than education but i'm gonna change to something that is under your uh department. Um we talked about apprenticeships uh when we met and you've gotten several other questions Wisconsin has over seventeen thousand enrolled apprentices uh right now and I wanna make sure that nothing gets in the way of progress. So do you have any plans to propose rules allowing for industry recognized apprenticeship programs IRAPS or other rules to weaken registered apprenticeship standards.

Keith Sonderling (Witness)1:33:37 – 1:33:57

The president's executive order directs us to hit one million active registered apprenticeships I've been out there promoting companies to do registered apprenticeships through the department so we can help them control the curriculum, we can get the hours in, we can get the OSHA health safety, we believe registered apprenticeships are the way to skill the this generation and the next generation of of workforce, and that's what we're promoting. That's the

Sen. Baldwin (WI)1:33:57 – 1:34:00

So you have no plans to go forward with IRAC?

Keith Sonderling (Witness)1:34:00 – 1:34:03

The executive order describes registered apprenticeships through GILA.

Sen. Baldwin (WI)1:34:03 – 1:34:03

Thank you.

Sen. Cassidy (LA)1:34:06 – 1:34:10

Thank you, Senator Baldwin. I shall defer to Madam Gator.

Sen. Moody (FL)1:34:11 – 1:37:07

I like that. Thank you, Mr. Chairman. Uh, and again, thank you, and I wanna go back, um, Mr. Sonderling, to how we started the day and and your nomination hearing, just to to again commend you and this administration for really digging in, rolling up your sleeves, trying to course correct for a lot of the things that we previously saw to make sure that we are approaching approaching government and supporting American workers and American industry, and making sure we're looking at our roles through that lens. And I think you've done a a dynamic job of that so far. I I look forward to doing that as the permanent um Head of the agency. Uh, in fact, I think when I came in, one of the main reasons I wanted to get up here as a senator was to kind of take a machete to what the last administration done. And if you've listened to all of your questioning today, it was all about freaking out about what's happening to where they were putting money. Truly, you're, you're, " What are you doing with this grant? What are you doing this, are we moving it from education, do you", like everybody is freaking out. And I think the words they use are undermining and dismantling programs. So I just wanna make sure that we're all talking about the same thing, because what I watched and what I had to litigate against as the Attorney General for Florida in the last administration, when we had a chief executive asleep at the wheel and radicals trying to drive the car off a cliff. I mean, it was literally like when I used to pick my kid up from school during free time, and they just got in there and everything was crazy and things were knocked over, things were strewn around, broken. That's what you had to inherit. And since this administration has been in office, you have helped with no tax on tips, no tax on overtime. I mean, we are watching what that is doing in terms of redirecting where Washington is keeping money not giving it over to bureaucrats that wanna spend it on crazy things, but keeping it in Americans' pockets, focusing on what? Um, America finan- Americans' financial health, Americans' well-being? That's what the people need to restore their faith in this government. But let's talk about dismantling programs for just one moment. I'll give you the chance to comment on that. Because I really truly think Americans need to understand what happened when they're talking about dismantling climate programs or dismantling any other kind of program. Let's talk about that. Because it infuriates me, and I am so glad there are people like you at the helm to course correct. But, you know, we've, as as um Deputy Secretary, oh, and by the way, I needed to say Florida is now getting the largest average tax returns of any state in the nation due to some of this reoriented policymaking and approach. But under your leadership, and you've gotten a lot of what are you doing with an International Labor Affairs Bureau, and where all that money is, can we talk about that a little bit before you do,

Keith Sonderling (Witness)1:37:06 – 1:37:07

Yeah, yeah.

Sen. Moody (FL)1:37:07 – 1:38:02

let me just say. Under the Biden's International Labor Affairs Bureau, and we're all freaking about where money might be canceled or dismantled, is it true that ten million went to gender equity in the Mexican workplace, Twelve point two million went to worker empowerment in South America. Five million went to elevating women's participation in the workplace in West Africa. Four point three million went to assisting foreign migrant workers in Malaysia. Four million went to promoting LGBTQI youth inclusion in Brazilian employer value chains. Seven million went to enable workers in Chile, South Africa and Colombia to advocate for climate change policy, I know they were really upset that we did away with that. Is it your intention to make sure some of this money is actually going to help the American workers and American families?

Keith Sonderling (Witness)1:38:02 – 1:39:05

It's our duty for all of our grants, all of your taxpayer dollars, to go to American workers and to make sure that American workers are getting the first and best opportunities, no one else. It's also our duty at the Department of Labor to make sure that other countries uh are ripping us off with forced labor and undercutting, you know, our s- our system. so you know those grants have been capital and you know what we're doing with those grants instead of what you've listed thirteen point eight million is gonna go to help american workers learn shipbuilding which is a national security concern bringing back shipbuilding to united states so our military ships aren't getting repaired overseas so that's how we look at grant making how's it gonna benefit the american worker how are we gonna work with industry to make sure that all these nine hundred thousand high paying private sector private sector jobs that american workers have the skills needed by talking to employers and then putting out money uh that way. That's why we have a manufacturing front for registered apprenticeships in manufacturing in other industries that benefit American workers, because the American workers are the greatest in the world, and though that should be our first and only concern, and that's exactly what we've done in the second Trump administration.

Sen. Moody (FL)1:39:05 – 1:40:21

Now, we have something shifting over to your agency as well, I think it's public knowledge, the Perkins grants that go to trade and skills uh education. I am very excited about that, and this is why. We are finding out more and more that some of the most well-funded uh universities that kids are coming out hating our country, uh we have given them tax breaks on their endowments. Uh, you know, more so than you would the average American that gets a, you know, has a a tax obligation from their investment income. We give them tax breaks. I think it's important that we focus on Trade and skills training, just as much as we wanna focus on opportunities for kids to get a four four year degree, we should be investing resources, time and intention to that. So I have a bill called the Trays Act, which would take that endowment, the the ones that are well overfunded, tax it at a fair rate and redirect that These are from your your elite schools that really are indoctrinating kids and not training them. Redirect it to trade schools. and through those Perkins grants, and make sure that we are investing in training the next generation, not just indoctrinating the next generation. Are you on board with that? Will you help me do that?

Keith Sonderling (Witness)1:40:21 – 1:40:24

Uh, I will help you in that, in our shared journey on that. Thank you.

Sen. Cassidy (LA)1:40:25 – 1:40:28

Thank you, Senator Moody. Senator, also Brooks.

Sen. Alsobrooks (MD)1:40:29 – 1:41:54

Thank you so much, uh, Mister Chair, and thank you, Mister Sonderling, for, uh, for being here today. You know, when we, we last, um, met and had our last exchange was in February, And it was at that time that I asked you a question about whether collective bargaining agreements were legally enforceable. And you shared with me at that time that you were unfamiliar with the collective bargaining process, and in fact went on to say that this was basically above your pay grade, it was outside your area of expertise, and that you would quote, uh, rely on career experts, um, to work on those issues. And in the weeks that followed, uh, our exchange uh yeah I was horrified to see that this administration took a successive action and steps to undermine the CBA's um and and federal workers to hurt to hurt federal workers and it started with the executive order removing collective bargaining rights for large portions of the federal workforce. It is so disturbing to me and really a horrible twist of fate then um that we are now faced with your nomination a person who I have seen aid and abet this president's protracted campaign against federal workers' rights. And so I just wanna go back to the basics here and um and ask you, under what statute are collective bargaining agreements enforceable?

Keith Sonderling (Witness)1:41:54 – 1:42:07

It's under the the National Labor Relations Act of nineteen thirty five. I didn't say I don't understand collective bargaining. Obviously I understand collective bargaining. What I what I was referring to, I think you were asking me about specific contracts that i didn't have an answer to.

Sen. Alsobrooks (MD)1:42:06 – 1:42:10

No, no, no, I remember what I what I asked, I said are they legally enforceable,

Keith Sonderling (Witness)1:42:08 – 1:42:08

So, but i

Sen. Alsobrooks (MD)1:42:10 – 1:42:11

and you said this is

Keith Sonderling (Witness)1:42:10 – 1:42:14

Collective bargaining agreements are legally enforceable and they have been since the nineteen thirties.

Sen. Alsobrooks (MD)1:42:13 – 1:42:15

Well, good, I wish you had said that when you

Keith Sonderling (Witness)1:42:15 – 1:42:19

The National Labor Relations Act enforces that in the in the for um for private sector.

Sen. Alsobrooks (MD)1:42:17 – 1:42:21

Sure. Thank you. So, so I'm happy to

Keith Sonderling (Witness)1:42:20 – 1:42:23

The Federal Labor Federal Labor Relations Act enforces it more.

Sen. Alsobrooks (MD)1:42:23 – 1:42:44

Listen, I don't have a lot of time, I'm gonna ask another question, but I'm glad to hear that at least in this hearing you now admit that you do know that the collective bargaining agreements, we can go back and pull the tape where you said different, but the point of the matter is whether or not you know how federal workers i would like you to answer this question how federal workers unions differ from private sector unions

Keith Sonderling (Witness)1:42:44 – 1:43:08

um well first of all they all are subject to the labor uh labor management relation disclosure act of the nineteen fifties that the department of labor enforces so for unions like afge they have to do all of our reporting um but there you know they deal with the federal labor relations authority while private sector unions deal with the national labor relations authority so they're two different um, you know, they have two different government agencies that enforce them, private sector and then public sector.

Sen. Alsobrooks (MD)1:43:08 – 1:43:28

But the most important difference between private sector and public sector unions is that public sector unions do not negotiate higher wages, they are not allowed to strike like private sector, and so the point of the matter is federal's uh public sector unions are there exclusively to protect the working conditions of federal employees.

Keith Sonderling (Witness)1:43:28 – 1:43:29

Correct.

Sen. Alsobrooks (MD)1:43:28 – 1:43:54

Uh, and this is very different than private. So I want you to explain then Why has this administration, if it, if this provides no further uh tax, this doesn't return money to taxpayers, this does not um save taxpayer dollars, why has this administration in such a wicked way attacked federal and public uh workforce unions tell us why why have they um attacked federal workers' unions?

Keith Sonderling (Witness)1:43:54 – 1:44:06

Uh, I have not seen them attack uh any union, specifically in the public sector or the private sector. Um, I think this administration respects the law, respects the agencies that enforce them.

Sen. Alsobrooks (MD)1:44:06 – 1:44:11

Oh, Lord, well we, we certainly disagree with that if this administration respects the law, but it is also the case that

Keith Sonderling (Witness)1:44:10 – 1:44:27

But, but if there are issues, there's a government agency, the Federal Labor Relations Authority, that will deal with that. And, and I'm, I'm confident of that agency. Uh, it, it, and uh, you know, there are Senate confirmed people there that will make sure that that process, um, i- is fair. Uh, and that's how it works.

Sen. Alsobrooks (MD)1:44:27 – 1:44:37

But this isn't a matter of dispute. I mean, you can go look at the executive order that that literally targets uh these collective bargaining agreements in these federal agencies but i wanna go to another question

Keith Sonderling (Witness)1:44:36 – 1:44:59

so i control the department of labor and you know we have collective bargaining agreements uh which we're abiding by and we have good relations uh i'm meeting with them in september so from my perspective the agency that i hopefully am able to uh lead um you have my commitment that i will continue to work with the unions and to work with our local unions and and meet with them regularly which i have done throughout my tenure

Sen. Alsobrooks (MD)1:44:59 – 1:45:37

Well, I'm glad to hear that, and I have to tell you again, I'm relieved to hear because the last time, and again we can just go look at it, when I questioned you about this it was a different response, but this is the last question. So, national security was invoked to justify the revocation of collecting barg collective bargaining agreements across the federal government in March of twenty twenty five um and I want you to please explain why the March twenty twenty five executive order applied the exception to agencies that have less of a connection to national security such as the department of health and human services, or agriculture department and not others, that arguably actually do have a strong connection such as ice.

Keith Sonderling (Witness)1:45:37 – 1:46:05

uh i would defer to the experts at opm uh uh and and the executive order on that but what i can tell you is really related to ite employees, who do deal with national securities, our systems get hacked daily and those are some of our most important employees there and there is a national security exception in the law, And that's what that executive order directed us to do. So, um, that is, is a law that Congress passed that had that exception for national security. And OPM and this administration has looked at it and said it applies to IT workers.

Sen. Alsobrooks (MD)1:46:04 – 1:46:13

But then you'll commit then that the Department of Labor, under your leadership, will not seek to characterize itself as a national security agency for the purpose of limiting collective bargaining agreements.

Keith Sonderling (Witness)1:46:13 – 1:46:16

There are some components of the Department of Labor that deal with national security.

Sen. Alsobrooks (MD)1:46:13 – 1:46:14

You'll regret it.

Keith Sonderling (Witness)1:46:16 – 1:46:18

They'll be happy to brief you on privately.

Sen. Alsobrooks (MD)1:46:18 – 1:46:18

Thank you.

Keith Sonderling (Witness)1:46:18 – 1:46:18

Thank you.

Sen. Cassidy (LA)1:46:20 – 1:46:21

I shall defer to Senator Mikulski.

Sen. Murkowski (AK)1:46:23 – 1:46:26

Mister Chairman, thank you. Mister Sonderling, welcome.

Sen. Cassidy (LA)1:46:26 – 1:46:27

Thank you.

Sen. Murkowski (AK)1:46:26 – 1:46:50

Appreciate our conversation. Uh, I'm pretty sure that in our discussion I invited you to come to Alaska uh to to better understand some of the challenges that uh that we face with being a highly highly rural state. Um, I'm pretty sure that you committed to me, but I'm gonna give you an opportunity in the open record to affirm just that.

Sen. Cassidy (LA)1:46:49 – 1:46:49

I

Keith Sonderling (Witness)1:46:50 – 1:46:56

i you can talk to my staff i've been to alaska three times and i wanna go again and you were supposed to go

Sen. Murkowski (AK)1:46:54 – 1:46:56

but we we want you back again

Keith Sonderling (Witness)1:46:56 – 1:47:05

the slime and the fishing and the salmon season and i wanna do it um and we will do it and uh if i can i will come in the winter i will let's do it in february or january so

Sen. Cassidy (LA)1:47:06 – 1:47:07

you you really want her vote

Sen. Alsobrooks (MD)1:47:06 – 1:47:07

i was just

Sen. Murkowski (AK)1:47:07 – 1:47:08

yeah we

Keith Sonderling (Witness)1:47:09 – 1:47:09

desperately

Sen. Murkowski (AK)1:47:09 – 1:47:24

yeah we think we think about we think about the best timing on this and and and really for us um it doesn't make a difference uh the time of year because whatever the time is, there will be a seasonal aspect to our workforce.

Sen. Cassidy (LA)1:47:23 – 1:47:23

Yes.

Sen. Murkowski (AK)1:47:24 – 1:48:01

Right now, the height of the summer, the fish are running, um and our challenge is is the seafood processing workforce. We've had an opportunity to talk about the H two B's and why why it is so important, not only to be able to receive those, but uh to receive those in a timely manner and to to hopefully, uh my ask to you today is to work with us to get uh, Alaska seafood workers or seafood workers exempted from from this process, so that we don't have to go through this scramble every year, wondering if our workforce is gonna be able to meet the the salmon runs.

Keith Sonderling (Witness)1:48:01 – 1:50:00

So, so this is a a bipartisan issue that uh you hear not only from Alaska but from Louisiana, um, chairman with with the crawfish, and then up and down the coast, um, from Maine all the way down to Florida. And you know, these are critical industries for us. These are, um, you know, really um products and and seafood that need to go out very timely and the workforce considerations of these is is difficult because of the way the h two b system is but i can assure you that we're doing everything we can within the constraints from a customer service perspective we've created uh the office of immigration policy so we move the h programs to its own office for customer service so that's means people who need to use the h two a or h two b person um program have people to dedicate it directly to them in its own independent um agency which we've asked congress to make um permanent number two on the h two b specifically um as you know the cap is uh determination every year is a decision uh made uh by d h s with the consultation but the cap was raised to the statutory maximum this year but i really think that the biggest part for the seasonal industries is the changes we made for the lottery system you know for the first two tranches the thirty thousand thirty three thousand and the thirty three thousand instead of just that rush to have it filed at midnight and you know people lose out breaking it down to time of need in three different groups. So those who, you know, um, need workers for January seasons aren't applying the same time for uh May seasons in those chances. So from our perspective, we're really doing everything we can because the the worst thing that can happen is that, um, you know, you have these industries that want, have American products that people want and for us not to be able to deliver on them, because of that workforce shortage need, especially in rural areas too. And I know specifically to Alaska, uh how challenging some of the locations are to get um workers in there too and how there's just communities that have relied on the same people for many time and it's very important um that the department of labor from a service provider is being able to process those applications immediately and getting the workers on time because it's process late um it's over

Sen. Murkowski (AK)1:50:01 – 1:51:39

well it it's also complicated as you have noted that you you have to work with the department of homeland security on this And so, uh, as I've shared with you, some years, uh, it's DOL that's the problem, some years it's DHS that's the problem. What we need is to have this alignment. What we need is to have a, uh, a level of, of review where we're watching the whole picture. And to your point about the timing, uh, you're correct in that that has helped us because we have a later season, so we don't need everybody else in the country to snap these up ahead of our season. So we've made some progress, but I just need to know that you've got your eye on the ball with this, working with us, and uh again whether it's uh salmon season or whether it is uh the season where we're trying to entertain um uh guests to come to our ski resorts or uh our workers up on the north slope when it's exploration time and uh and and working out in a really uh tough environment um we need we need to have good support within the department of labor and to that i wanted to just ask a question many have asked about apprenticeship programs and i think you can hear from this committee how we feel about the support um in providing appropriate uh uh training for those um in these apprenticeship programs so i i i want to hear your commitment to maintaining current national registered apprenticeship program.

Keith Sonderling (Witness)1:51:39 – 1:51:52

A absolutely. It's not only my commitment, it's the president's commitment in the executive order. It's when he issued with his in his first hundred days. So it shows you the the seriousness and the impact of this. We're just trying to make it better. We're approving new apprenticeships within thirty days and making programs.

Sen. Murkowski (AK)1:51:50 – 1:52:24

Yeah. And this is this is where I I want to make my specific ask for you. As you say, we want to make it even better. Um, as as as you know and you've pointed out, we have serious challenges in in rural areas. You've got these communities, eighty-two percent are not connected by road. Um, they're it's not only access for the workers but they're they're limited then in terms of their traditional workforce training venues. So being creative with us as to how we tap into that for apprenticeship is where I would like

Keith Sonderling (Witness)1:52:25 – 1:52:27

And working with the state workforce and the uh state

Sen. Murkowski (AK)1:52:25 – 1:52:26

your commitment to work.

Keith Sonderling (Witness)1:52:27 – 1:52:29

education systems locally is very important part of that too.

Sen. Murkowski (AK)1:52:30 – 1:52:31

Good. Let's work together. Thank you, Mister.

Sen. Cassidy (LA)1:52:32 – 1:52:35

Thank you, Senator Mikulski. I now defer to Senator Banks.

Keith Sonderling (Witness)1:52:35 – 1:52:36

oh isn't your birthday

Sen. Banks (IN)1:52:37 – 1:52:38

thank thank you

Keith Sonderling (Witness)1:52:37 – 1:52:40

happy birthday you must like me to come here on your birthday

Sen. Banks (IN)1:52:41 – 1:52:42

embarrass me on my birthday

Sen. Murray (WA)1:52:42 – 1:52:43

hello

Sen. Banks (IN)1:52:44 – 1:52:47

mister sonderling great to see you we appreciate your leadership

Keith Sonderling (Witness)1:52:46 – 1:52:48

is your microphone on miss makes

Sen. Banks (IN)1:52:48 – 1:52:48

excuse me

Keith Sonderling (Witness)1:52:48 – 1:52:49

is your microphone on

Sen. Banks (IN)1:52:49 – 1:52:50

it is on

Keith Sonderling (Witness)1:52:50 – 1:52:51

got it ok

Sen. Banks (IN)1:52:51 – 1:53:17

let me hear me now uh mister sonderling thank you for your leadership you've done a great job in your current role you're gonna be a great secretary but can you talk for a minute about illegal immigration it's illegal to hire illegals yet tens of millions of illegals still find jobs in america what can the department of labor do to work better with ice to prevent businesses from hiring illegals and to fulfill the mission of ice

Keith Sonderling (Witness)1:53:17 – 1:54:39

yeah when you hire illegal workers you're undercutting businesses that are doing the right thing and you're undercutting businesses that comply with the law uh and are complying for safe and work uh safe and workplace conditions uh that pay properly because also too with whether it's illegals or human trafficking you see that they're not they don't have safe work conditions and they're not paid properly as well so it continues to undercut the market for so from the department of labor's perspective um from the the the agencies that can go after this is really holding those employers accountable through the wage and hour division to make sure that there's no human trafficking that there's no uh legal workers um being underpaid um which raises compliance because it disincentivizes those workers to the um those employers those bad actors to hire illegal labor um if they have to do the same exact requirements as if you hire american workers which is the law um but also working very closely with ice to make sure that all the laws are enforced that if we are in places and that we do see uh illegal labor that we are working with all of our law enforcement partners at dhs at department of justice uh because it is a crime and the other thing is those jobs should be going to american workers and we need to continue disincentivizing um employers saying we had to use these um illegal labor because we didn't have skilled and qualified uh labor um workers local workers and that's what we're really trying to do with a lot of the programs that have been discussed get

Sen. Banks (IN)1:54:38 – 1:54:43

what can you describe the the formal relationship between ice and the department of labor

Keith Sonderling (Witness)1:54:43 – 1:55:42

so the department of labor um and ice uh obviously uh were were were partners with the department of homeland security um but there was uh mous that were um put in place uh during the obama administration um they were called de-confliction agreements that if the department of labor was there first then ice would not be able to get into that workplace so clearly that employer was violating the law and department of homeland security was polluted by memorandum to not be able to enter there if wage and hour or osha was there um that has been um withdrawn uh this administration uh is the administration of law and order and we believe that these laws should be uh applied equally so that that doesn't mean the department of labor doesn't have a role in there to clean up that employer but that doesn't mean ice and DHS should be precluded from going in there too. So it's working together, opposed to saying one agency's laws are more important than the other. And that's what we've changed in this administration. And ultimately, it's going to benefit the American worker because American workers will get those jobs.

Sen. Banks (IN)1:55:42 – 1:56:08

I've I've worked um on this committee to end the optional practical training program, or OPT, which gives corporations a subsidy for hiring foreign students in tech jobs. uh this program prevents young americans from getting jobs and congress never authorized it um do you have any plans to work with dhs to crack down on an unlawful program like opt

Keith Sonderling (Witness)1:56:08 – 1:57:11

we're working with all um of our partners in administration uh dhs doj on these issues the program you're talking about allows students on j one visa to um you know have work experience under the opt program which can be up to thirty six months there are benefits for employers like not having to pay some of the taxes uh as well and then eventually allows those those students to transfer to uh an h one b visa all through our perm process all the way through an e b two or e b t visa and eventually get um citizenship or green card so we are we're looking at all these programs and we're looking to see that there are such with nine hundred thousand new private sector jobs um the president promised that those jobs would be for the forgotten men and women of america and all americans to have that opportunity to get those jobs so that's our first and foremost consideration when we look at any of these programs are they not only being lawfully used um but how are we going to make sure that employers don't need those programs because there are so many great american workers and that's what we're trying to get to with all programs but the opt is a department of homeland security program um but there are labor adjacent issues to it

Sen. Banks (IN)1:57:11 – 1:57:29

understood on that point tech companies claim that we need highly skilled immigration to fix workers shortages but as many as half of recent computer science graduates in america are are unemployed Are, is there really a shortage or do some businesses just prefer cheap labor?

Keith Sonderling (Witness)1:57:30 – 1:58:07

Um, the program under the H one B program the department of labor enforces, we're making sure that within our statutory control, that if you're going to use that program, it's actually necessary and needed and they're um, not only are they not qualified American workers, but also if you're bringing in that foreign labor it has to be paid appropriately, so you can't undercut because that harms the people coming in and harms the program as well. So we have a lot of rules and regulations to make that program uh if you're going to use it you're gonna have to pay for it or else you can actually see what the cost was and then see how much it is to hire and train an american worker and that analysis wasn't done before because the program wage rates became too low and that's what we're fixing and hopefully it will help reform that program

Sen. Banks (IN)1:58:07 – 1:58:08

i yield back

Keith Sonderling (Witness)1:58:08 – 1:58:08

happy birthday

Sen. Cassidy (LA)1:58:09 – 1:58:12

yeah happy birthday senator banks uh senator kim

Sen. Kim (NJ)1:58:12 – 1:58:55

happy birthday uh mr. sonderling thanks for coming before this committee i wanted to just circle up with you on a question i raised with you in a previous nomination hearing about osha i raised concerns with you about numerous attempts to decrease osha's budget and you had indicated you would review all the budgets within the dol and ensure that they had appropriate resources despite that promise the past two presidential budgets have included decreases to osha's budget on top of over also decreasing the workforce given this information how were you squaring decreasing osha's budget and capacity with improving workplace safety

Keith Sonderling (Witness)1:58:55 – 1:59:21

well you know a lot of this relates to efficiencies and a lot of the historic budgets dealt with office and staffing levels that didn't exist anymore through attrition so the president's budget related to osha uh allows a few things one to account for that for for the um the amount of workers that have left office space have left but also allows us to account for new technology as well you know in osha there's a lot of ai and products that we're looking to invest in to make um are investigations more um uh efficient

Sen. Kim (NJ)1:59:21 – 1:59:22

those already in effect

Keith Sonderling (Witness)1:59:22 – 1:59:23

what's that

Sen. Kim (NJ)1:59:23 – 1:59:27

are those tools ai tools and other products already in effect

Keith Sonderling (Witness)1:59:26 – 1:59:29

we're working hard on that the mind health safety ministry

Sen. Kim (NJ)1:59:29 – 1:59:30

the answer is no they're not quite

Keith Sonderling (Witness)1:59:30 – 1:59:48

is still using it but going back to osha we're hiring and you asked me to look at and i did and there we looked at our entire workforce and our osha and our mind health safety division needed additional workers we're hiring and i believe we've hired over ninety new ocean inspectors if you go on usa jobs dot gov right now you can apply to be an It's a continuous.

Sen. Kim (NJ)1:59:47 – 1:59:49

I guess uh the way I I would just.

Keith Sonderling (Witness)1:59:48 – 1:59:50

So we we are replenishing that workforce.

Sen. Kim (NJ)1:59:51 – 2:01:10

What I would just say is to think through what is it that you're trying to accomplish? What is the mission here? And in terms of being able to do that workplace safety, it's about making sure that they have an ability to inspect workplaces, to be able to check on safety. The AFL CIO did a report that said it would take OSHA a hundred ninety one years to inspect every workplace once based on the twenty twenty five data that she was seeing. the challenges already from shrinking workforce. And that was under your leadership that the number of years it would take has doubled. So, uh, you know, I I guess I just wanna share that with you is just like, I get it, we're we're constrained, we don't have infinite money, but when we're looking at what it is we're trying to do, the goal should always be, you know, how can we make sure that we are responding to the work place demands, to be able to make sure we're addressing those needs. One thing that I wanted to focus in, you and I have talked about, ai workforce uh on a a number of different places uh but there's one in particular i wanted to just check with you on uh department of labor has proposed the creation of an ai workforce hub that's right uh and in it it says that it's gonna hopefully more adequately track and respond to ai trends all admirable but it also the description talked about involving partnerships with private ai and and training vendors

Keith Sonderling (Witness)2:01:10 – 2:01:10

right

Sen. Kim (NJ)2:01:10 – 2:01:18

i want to just ask you can you commit to this committee for full public disclosure on any vendor or partner selected for this initiative.

Keith Sonderling (Witness)2:01:18 – 2:01:46

It will be on the website and it's not just tech companies. Um, as we discussed earlier, the entire ecosystem of who it's gonna pack an AI are all, all workers, all businesses, all unions. So the partnership is not going to just be with tech companies, it's gonna be with employers, it's going to be unions, it's gonna be with nonprofits. Um, some of them who are i- in this room here today. So we're including everyone in this. It's going to be completely public who's a part of this. But as we discussed, this is gonna be the missing link to get that data that nobody has.

Sen. Kim (NJ)2:01:46 – 2:01:49

And you and I have talked about how we share that goal.

Keith Sonderling (Witness)2:01:46 – 2:01:49

This is not the obvious. Hundred percent.

Sen. Kim (NJ)2:01:49 – 2:02:55

Uh, because, you know, we need to know, you know, skate to where the puck is going, you know, how it is that we're trying to address something that has, uh, clearly going to have seismic impact on our economy, already has a lot of concerns. And we we've we've talked about how many young people in this country right now are very, very worried about the impact that this is gonna have on their chance to be able to get a job, college uh we have to be able to respond with urgency and i think that transparency is necessary we know there's a lot of money a lot of involved uh a lot of concerns on that front the last thing i just wanna ask you is that you know as someone who worked as a career federal government worker before a nonpolitical worker uh i hear from people all throughout the interagency and look there there are real concerns at every department including department of labor about morale about the status of of jobs and whether or not the people there feel like they can still have a the kind of career that they want without a toxic work environment how are you going to try to restore trust uh with under your leadership at the department of labor

Keith Sonderling (Witness)2:02:55 – 2:03:17

department of labor is for all workers including federal workers and and they especially the the department of labor employees where i started my federal career as well i didn't start walking in as a cabinet secretary i started walking in the halls them and eating in the same cafeteria so i think there is a level of trust that they know with me and that i am committed to them they are our workforce a department of labor's uh workforce has one goal it's to protect

Sen. Kim (NJ)2:03:15 – 2:03:21

i i urge you uh just in my my final seconds here i just say uh i i urge you to prioritize that if you're confirmed

Keith Sonderling (Witness)2:03:21 – 2:03:22

thank you

Sen. Kim (NJ)2:03:21 – 2:03:34

eh there has been just a real concern about just this tiered system this hierarchical caste system between the politicals and the and the careers and i i hope you are someone that can go on in a different path with that i'll yield back

Keith Sonderling (Witness)2:03:34 – 2:03:35

thank you senator

Sen. Cassidy (LA)2:03:35 – 2:03:45

thank you senator kim Um, good job today, Mister Sunderland. Uh, you've you've done well. You've done it before, I gather. Uh, so, um, couple of questions on my behalf.

Keith Sonderling (Witness)2:03:46 – 2:03:46

Yep.

Sen. Cassidy (LA)2:03:46 – 2:04:20

Uh, last year I introduced the Unlocking Benefits for Independent Workers Act, providing a safe harbor for companies attempting to provide portable benefits to workers uh ideally to grow access to healthcare retirement accounts, and even vacation days for independent workers. So, if passed how do you see this legislation interacting with DOD, DOL's proposed independent contractor rule and would it assist DOL with further rule making uh that which theoretically would have the goal of empowering independent workers.

Keith Sonderling (Witness)2:04:20 – 2:05:54

Well this is a very important issue and one that I commend your leadership on. Yeah, you, we've been talking about this issue for for many years and the issue right now is that you have gig economy workers, you know, working for platform companies that everyone knows the names of. And uh, you know, they love that arrangement, but they also want some benefits. And you see these companies too, who wanna provide those benefits to employees, whether it's contributions to four O and K, whether it's contributions uh to healthcare, or other benefits such as discounts, um, related to, you know, them being able to um negotiate in bulk for, for cars, for equipment and tools. And that's really been prohibited. And what you've seen in that is because of the Department of Labor's regulations, um, neither side want to create the employment relationship. the gig workers wanna stay as independent contractors, and those operators want to keep them as independent contractors. So you have both sides in agreeance that we like this business model, but I wanna give you benefits and I wanna receive benefits, but that's going to ruin that business mile uh model due to the Department of Labor's um regulation. So what you've seen in the absence of that, states, Democrat states, Republican states coming together and say, we want our citizens to be able to get this. So we're gonna do innovative laws. You know, we've seen it in states across the country. that say under state law you can give these benefits you know and you can work for five different companies and you can get little pieces of from each company's and everyone's happy but under federal law there's still a fear that that may create the employment uh relationship and ruin these programs and lead to significant litigation or worse department of labor investigations so this this is a very a key part of that hustle to get those workers

Sen. Cassidy (LA)2:05:53 – 2:05:59

let me be clear uh once i was picked up at the louis armstrong airport new orleans by a man who had been

Sen. Kim (NJ)2:05:55 – 2:05:56

that

Sen. Cassidy (LA)2:05:59 – 2:06:31

working as a uber driver in the bay area california but decided he'd rather live in new orleans clearly a very smart man and so you know he moved back and he just had to tell uber or lift hey i'm moving to new orleans my son-in-law was driving he was in louisiana and he and my daughter moved to miami uh hey i'm moving to miami he could continue to drive so it seemed like a federal law is needed because even though the states are doing this what may be allowed in tennessee would not necessarily be allowed in california

Keith Sonderling (Witness)2:06:31 – 2:07:01

Correct, and also too under the Department of Labor's regulations, you know, will that, will that be enough to um, to for the companies actually buy in on this, and and you we could design rules, we can design regulations, but ultimately if they need that legislative certainty, that's something, you know, I defer to you on, but this is really, again, it's it's a bipartisan issue, it's an issue that both um, workers and companies agree on, that you know, they want benefits, uh, they want, they wanna be able to build wealth, it's something the Trump administration is really pushing for people to be able to get. retirement accounts,

Sen. Cassidy (LA)2:07:01 – 2:07:02

And just to be, just to be clear.

Keith Sonderling (Witness)2:07:01 – 2:07:02

this is a lot.

Sen. Cassidy (LA)2:07:03 – 2:07:25

If we arrange that there's an account, that, ok, I I work for four different, I'm a DoorDash'er, I'm an Uber, and I'm a Lyft, and I, and I'm, maybe I'm an Amazon guy, as, as Holly points out, that they're all paying into an account. Mechanically, this would, uh, the, I the worker would designate, this is the account where I want my health, my health benefits paid into.

Keith Sonderling (Witness)2:07:25 – 2:07:58

Correct. It'd be creating an account, wherein you can work for a lot of different platforms, you own the account, and then other, you know, platform companies can give little pieces of the amount of time that you're in there, too. So that's the model we're seeing around the country, that's the model that platform companies have come to me saying, we, um, we have these resources, we wanna provide these resources, our our people want these resources, um, and that's how, uh, essentially it would work, um, uh, under some of your proposals it would be blessed under federal law, and would not create the employment um, relationship under the Fair Labor Standards Act.

Sen. Cassidy (LA)2:07:58 – 2:08:33

Let me ask you this, uh, changing the topic. Uh, Department of Labor oversees the Employee Benefit Security Administration, or EPSA, which, which obviously has a critical role in overseeing employee response and insurance under ERISA. Uh, Congress passed my PBM oversight and transparency legislation and you, DOL, is writing a new rule in this space. Now, clearly we need to afford health care, uh, address health care affordability. the president is making the affordability of of pharmaceuticals a major priority. Um, kind of tell us if you will what DOL is doing in this space.

Keith Sonderling (Witness)2:08:33 – 2:09:48

Well this is uh for uh for PBMs uh the Department of Labor uh is the regulator there, when it comes to employee health uh care plans. And uh this is going to be the most transparent rule, you know, in the history of this industry. We're requiring uh PBMs to, for the first time, to really disclose what spread pricing is, what those manufacturer rebates are, what the administration administrative fees are, Mm-hmm. not to regulate health care. That is not, um, that is for this committee and HHS. But to give that transparency for better negotiations when those health care plans come up and be able to say now for the first time, because of the department of labor's rule, we know what the spread pricing is. We know what, I know Congress is fixing some of this. We know what all the rebates you're getting. We can actually see, you know, how much, you know, our employees are having to pay and we're going to have to pay. um, for that, those drug prices, and that allows them to be better negotiate. And that's all we can do at the Department of Labor is give that transparency, um, for the fiduciaries at the company who are negotiating this on the best behalf of their employer they've never been armed with the information about what they're paying uh on these formularly lists and now for the first time they're gonna have that information which will lower health care costs and allow um providers to provide uh that medication um at a much fairer price.

Sen. Cassidy (LA)2:09:47 – 2:09:49

When do you think that rule will come out?

Keith Sonderling (Witness)2:09:50 – 2:09:53

Um, it is uh, we are working very hard on it. Uh,

Sen. Cassidy (LA)2:09:53 – 2:09:54

Mmm.

Keith Sonderling (Witness)2:09:54 – 2:10:38

obviously the CAA uh, you know, the the amendments um, came out either like a day or two before the rule proposal went out. Um, so we have to adjust some of that of now what Congress is saying related to some of the unlawful uh, um pricing schemes or or rebate schemes. So, we are building that into the rule, but it is a priority because it's going to save um, there's stats, billions and billions of dollars um, for health care plans. It's just gonna drive down the cross the cost of health care plans is gonna allow employers of all sizes to provide health care plans they weren't able to because there were so much in the middle that were being made for profit that is uh potentially gonna go away. But again, the pricing is on them, HHS, CMS, all the Department of Labor can do is transparency and that's our commitment to you in this final role in all of our programs.

Sen. Cassidy (LA)2:10:39 – 2:10:47

Sounds great. I share your optimism about the role and I consider that a a tremendous achievement of this committee and a personal achievement I wish to enter statements into the

Keith Sonderling (Witness)2:11:01 – 2:11:02

Thank you.

Sen. Cassidy (LA)2:11:01 – 2:11:07

Um, the committee stands adjourned and taking the chairman's prerogative. Go Tigers.

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