When it comes to getting nominees confirmed, President Joe Biden isn’t exactly having an easy go of it. Despite picking up a seat in the Senate in last year’s midterm elections, the administration has struggled to get some of its candidates approved by the upper chamber. This difficulty has arisen once again with the president’s pick for labor secretary.
Republicans have not warmed up to the idea of confirming Julie Su, California’s labor chief, for the federal position. They have raised concerns about her support for certain questionable policies that might threaten her chances of becoming a member of Biden’s cabinet.
Labor Secretary Nominee Hitting a Snag
Republicans are accusing President Biden’s nominee for Labor Secretary of supporting policies that would hurt gig economy and franchise workers. These arguments indicate that the GOP will attempt to scuttle yet another Biden nominee.
Sen. Bill Cassidy (R-LA), the top Republican on the Health, Education, Labor, and Pensions (HELP) Committee, which will consider Su’s nomination, claimed that she is wrong for gig economy workers based on her performance as the secretary of the California Labor and Workforce Development Agency and as deputy Labor Secretary. Cassidy asserted that during Su’s tenure as California’s labor chief, she supported a regulatory proposal known as AB5, which aimed to tighten restrictions on who employers could classify as an independent contractor. He speculated that the candidate would pursue similar goals in Washington.
Cassidy also alleged that Su supported the “joint employer rule” in California, which would extend a franchisee operator’s liability to the franchisor. Opponents of the provision argue that it would make it more challenging to create and sustain franchise businesses. The lawmaker claimed Su made public comments about her intention to impose the joint employer rule on franchises nationwide, which would uproot this entire business model which currently provides jobs to more than 8 million Americans.
Cassidy’s comments are an early indication of the direction Senate Republicans will take as they consider Su’s nomination, just weeks after they derailed two of the president’s high-profile nominations in the space of a month with the help of moderates in the Democratic caucus. Phillip Washington, Biden’s nominee to lead the Federal Aviation Administration, bowed out shortly after Gigi Sohn gave up the fight to serve on the Federal Communications Commission.
The two issues highlighted by Cassidy have the potential to sap support from moderate Democrats in the Senate. It’s unclear where Democrats up for re-election in 2024, such as Sens. Joe Manchin, Jon Tester, or Democrat-turned-Independent, Kyrsten Sinema, stand on Su’s nomination. While each of them supported Su’s nomination to deputy secretary of labor, their positions could shift. Manchin’s office stated that he “hasn’t made a decision” on Su yet.
One Republican member of the Senate HELP Committee said the fate of this nominee would depend on whether Senate Democrats stick together. “I don’t know that there’s a Republican for her,” said Sen. Mike Braun (R-IN). “So, it’s going to depend mostly on the three or four Democrats that could actually derail the nomination.”
What’s the Problem?
The two policies that Cassidy highlighted have been controversial, which is why it would make sense for Republicans to doubt Su’s suitability for the role of labor secretary.
For starters, California’s Assembly Bill 5, also known as AB5, is a labor law passed in 2019 that aimed to reclassify independent contractors as employees. The bill’s primary objective was to provide employment benefits, such as minimum wage, health care, and sick leave, to millions of gig economy workers in California. The law has been the subject of debate since its inception, with supporters arguing that it provides much-needed protections to workers and opponents claiming it stifles the gig economy.
AB5’s implementation has caused significant disruption in California’s gig economy, particularly in industries such as ride-hailing and delivery services. Companies like Uber, Lyft, and DoorDash have spent millions of dollars fighting the law, arguing that their drivers are independent contractors and not employees. These companies filed a lawsuit against the state, challenging the constitutionality of AB5, but a federal judge upheld the law in 2020.
The law’s implementation also had unintended consequences, with some workers losing their jobs and companies leaving the state altogether. However, supporters of the law argue that it is necessary to address labor law violations and protect vulnerable workers in the gig economy. The law has influenced similar legislation in other states, and its impact on the future of gig work remains a topic of debate.
Those who oppose the law say it limits worker flexibility, making it harder for them to be classified as independent contractors. This lessens their ability to set their own schedules and work on their own terms. Some gig workers, such as ride-hail and delivery drivers, prefer being classified as independent contractors and fear that AB5 will force them to work fixed hours, reducing their ability to earn a living.
AB5 also places new burdens on small businesses, which can’t afford to pay for employee benefits like health care and paid leave. The law also imposes new regulations on small business owners, which can increase their administrative costs and limit their ability to grow.
The joint employer rule has also been criticized as problematic in that it places undue burdens on franchisors, which makes it more difficult for them to operate their businesses. The joint employer rule can increase their exposure to lawsuits and regulatory enforcement. This can be particularly burdensome for small businesses that lack the resources to manage the legal and regulatory risks associated with franchising.
Critics also assert that the joint employer rule makes it harder for franchisees to hire, which can reduce job opportunities for workers in the industry. By making franchisors liable for the actions of their franchisees, the rule creates a disincentive for franchisors to expand their businesses, which can lead to fewer job opportunities in the long run.
Opponents of the joint employer rule argue that it undermines the franchise model, which has been a key driver of economic growth and job creation in the United States.
Given that Su’s preferred policies might turn off some Democrats in the Senate, it is not beyond reason to speculate that she might not make it past the finish line. These rules appeal mostly to those on the far left while alienating regular folks. Moderates in the Senate might not wish to risk offending their constituents by approving such a radical nominee. When it comes to the position of labor secretary, team Biden might have to go back to the drawing board.
All opinions expressed are those of the author and do not necessarily represent those of Liberty Nation.
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