**To watch Senator Capito’s opening statement, click here or on the image above.**

WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Ranking Member of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (Labor-HHS), offered remarks during a hearing to review the U.S. Department of Labor’s (DOL) budget requests for Fiscal Year (FY) 2025 with Acting DOL Secretary Julie Su.

In her opening statement, Ranking Member Capito focused on issues regarding child labor exploitation, excessive regulations that hurt workers, the DOL’s reclassification of independent contractors, the recent drastic increase of the overtime salary threshold, political Environmental, Social, and Governance (ESG) rules put forward by the DOL for retirement fund managers, and her continued support for apprenticeship programs.

Yesterday, Ranking Member Capito, who also serves as a member on Senate Republican leadership, previewed her concerns about Acting Secretary Su’s leadership at DOL during a Senate Republican Leadership press conference. Click here to watch Ranking Member Capito’s remarks at the press conference.

Senator Capito’s opening remarks, as prepared for delivery, are included below:

“Thank you, Chair Baldwin. This is the first Labor budget hearing we have had in our roles at the helm of the Labor-HHS Subcommittee.

“Acting Secretary Su, you did not appear last year in part because the budget came out right as Secretary Walsh was leaving the Department.  

“Thank you for being here to describe the fiscal year 2025 budget priorities for the Department of Labor. 

“First, I have some concerns with the Department under your leadership. There seems to be an agenda to push new regulations that impose layers of red tape and, in some cases, hurt worker choice.

“West Virginia needs fewer inefficient and expensive regulations and more job creation.

“To be clear, not all regulations are bad. I applaud efforts to curb child labor violations and keep hard-working West Virginians, including our miners, safe.

“But the Department of Labor should be focused on workforce training and creating new jobs, not mandating new burdens that take away worker choice and flexibility.

“For example, the Wage and Hour Division earlier this year changed the rules governing who qualifies as an Independent Contractor. 

“This new rule imposes a complicated six-factor test that allows bureaucrats to decide who is and is not an independent contractor, jeopardizing the ability of 27 million Americans to work in a way that best fits their needs and schedules. 

“This regulation takes away the freedom for West Virginia real estate agents, truck drivers, freelance writers, and other self-employed workers to choose their own hours and work around other life priorities, like going back to school or raising children.

“Another regulation that creates more complexity and undermines workers’ livelihood is the so-called ESG investment rule.

“This rule allows, and even pressures, retirement plan fiduciaries to consider environmental, social, and governance factors in their investment decisions involving workers’ hard-earned life savings.

“West Virginians who work today and save for tomorrow need to optimize their returns to afford life in retirement.

“But this rule pressures financial experts to shift potential gains away from American retirees and into the White House’s radical climate agenda.

“And just last month, your department further curbed worker flexibility and imposed sweeping new costs on businesses by drastically increasing the overtime salary threshold.

“Starting July 1, West Virginia businesses of all sizes, including non-profits and small businesses, will have to figure out how to absorb this mandate.

“This costly change is likely to result in fewer hours worked and more restrictions for employees and, in some cases, even layoffs.

“Instead of doubling down on a partisan agenda, the Department of Labor should focus instead on job creation and areas of bipartisan support.

“One area where I hope we can find some room for agreement is with apprenticeship programs. 

“This budget requests an increase of $50 million over fiscal year 2024 funding for the apprenticeship grant program.

“While I’m concerned that your budget would use this increase in apprenticeship grant funding to support the partisan green jobs agenda –

“I remain committed to increasing opportunities for West Virginians to succeed and know apprenticeships can play a key role in that mission.

“I support registered apprenticeship programs, which is why I’m also concerned about the Department’s proposal released late last year to completely overhaul the regulations governing the Registered Apprenticeship program.

“These proposed changes will make an already complex system even more difficult for employers to navigate and reduce registered apprenticeship opportunities for workers in West Virginia and across the country.

“There are also a lot of worthy apprenticeship opportunities that don’t fit the current registered apprenticeship model.

“I’d like to see innovation to expand apprenticeship opportunities to new programs and fields.

“In 2022, I secured funding for Marshall University to establish an apprenticeship initiative through Apprenticeship Works to train West Virginians to compete for good-paying, long-term jobs across the state.

“I’ve also been a long-time champion of expanding and strengthening the early childhood education workforce through apprenticeships.

“Giving our educators a clear pathway to successful careers opens the door to higher quality and better coverage of care, helping both families and childcare workers in West Virginia.

“The Department of Labor should be focused on strengthening workforce development strategies that help all Americans get the skills they need to succeed in today’s workforce.

“Acting Secretary Su, I hope you will work with Congress on this goal as we work through the fiscal year 2025 process. Thank you again for being here.”

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