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President Joe Biden talks about his nomination of Julie Su, left, to serve as the Secretary of Labor during an event in the East Room of the White House in Washington, Wednesday, March 1, 2023. (AP Photo/Susan Walsh)
People who say “don’t California my state” will soon be saying “don’t California my country” thanks to Julie Su – the most radical and flawed nominee for U.S. Labor Secretary in recent memory.
During her tenure in California, Su oversaw several programs and initiatives aimed at “protecting” workers’ rights and improving workplace conditions. But in reality, Su’s policies harmed tens of thousands of working families while crippling California’s small businesses.
When she served as California’s labor secretary under Governor Gavin Newson, one of Su’s most notable failures was her mismanagement of the state’s Employment Development Department (EDD) – a state agency charged with providing unemployment benefits. During her watch, Su bungled millions of pandemic-related unemployment claims, resulting in a backlog that left many struggling to make ends meet, while criminals – including death row inmates – and others received billions of dollars in fraudulent payments from the state.
As a result, nearly $40 billion in taxpayer dollars were wasted through fraudulent unemployment claims – the largest case of unemployment fraud in state history. Even Su admitted she “did not have sufficient security measures in place to prevent this level of fraud, and criminals took advantage of the situation.”
In addition to her mishandling of unemployment claims, millions of California workers suffered thanks to Su’s anti-business agenda. Throughout her career, Su has made a habit of being hostile toward small businesses and independent contractors. The most egregious case was Su’s support of California’s Assembly Bill 5 (AB 5). This disastrous law attempts to reclassify independent contractors as employees, a sucker punch to the independent workforce across the state.
The wrecking ball of AB 5 threatens to destroy the livelihoods of hundreds of thousands of Californians across a vast swath of professions. Despite the fact that AB 5 was opposed by thousands of California’s independent contractors, Su doubled down on her support for the bill, saying AB 5 “will set a model for the country.”
Su’s record of failure extends beyond EDD. For years, Su looked the other way as businesses were unfairly targeted by lawsuits thanks to the Private Attorneys General Act (PAGA), which incentivizes employees to act as labor code enforcers by allowing them to sue employers for any labor code violation, no matter how minor or accidental. Instead of protecting workers, PAGA creates a profitable pipeline for lawyers while leaving employees and businesses worse off. PAGA has done little to improve conditions for workers. Employees who file complaints through PAGA often cede a significant amount of their winnings to unscrupulous attorneys who see the legislation as an easy way to line their pockets.
As California labor commissioner, Su created the Criminal Investigation Unit, an armed labor police force tasked with targeting employers. Su bragged about the unit’s mission to arrest and detain business owners, saying: “When we first implemented the unit, newspaper headlines warned of armed labor commissioner deputies coming to get employers in California and arrest them for crimes. And, well, we are!” A desire to see entrepreneurs arbitrarily audited, investigated, and even arrested is disqualifying in anyone seeking to lead our nation’s Department of Labor.
In her continued crusade against business owners, Su has also called for the dramatic expansion of corporate liability, arguing that certain companies have a detrimental effect on the overall health of their communities, and should be held responsible for what she calls their “collective community harm.” This wildly out-of-touch position completely ignores the jobs, access to goods and services, and overall economic benefit provided when businesses expand into new areas.
To put it plainly, Julie Su is anti-worker, anti-business, and anti-free market. She has proven time and time again that she will jump at every opportunity to increase regulations and restrictions on businesses. If Su is given the reins to the Department of Labor, the rest of the country will soon follow in California’s footsteps. The Senate should think carefully before greenlighting her nomination.
Karen Anderson is the founder of Freelancers Against AB 5. Tom Manzo is the president and founder of the California Business and Industrial Alliance.
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