Julie Su opponents point to AB5 connection

April 20, 2023

Mark Schremmer

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Opponents of Julie Su’s nomination to be labor secretary focused on her connections to California law AB5 during a Senate confirmation hearing on Thursday, April 20.

President Joe Biden announced in February that he was nominating Su to take charge of the U.S. Department of Labor, replacing Marty Walsh.

Su became deputy labor secretary in July 2021 after narrowly passing confirmation with a 50-47 vote. Before that, Su served as California’s labor commissioner during the implementation of AB5 – a controversial worker classification law that makes it extremely difficult for a worker to be considered an independent contractor. In trucking alone, the law has led to truck drivers leaving the industry or moving out of state.

“As secretary for the California Labor and Workforce Development Agency, Ms. Su was the chief enforcer of AB5 – a controversial law that dismantles the gig economy such as Uber, Door Dash, and Lyft, and removes the flexibility of individuals to work as independent contractors,” Sen. Bill Cassidy, R-La., said during remarks at the hearing. “Even in California, AB5 is unpopular. The governor and state legislature had to pass over 100 exemptions after it was implemented. In fact, the statutory exemptions are longer than the text of AB5 itself.”

Numerous lawmakers and organizations – including the Owner-Operator Independent Drivers Association – are concerned Su would attempt to roll out a federal version of AB5.

“As acting and deputy secretary of Labor, Ms. Su is overseeing the Biden administration’s push to eliminate independent contracting via federal executive rulemaking, to the detriment of workers,” Cassidy said. “If finalized, the new regulation would strip 21 million individuals of their ability to be independent contractors and to enjoy the flexibility this provides. A law rejected in California is not a policy that we should spread across the nation.”

Su, however, said she was only implementing a law that was passed by the California legislature. If confirmed to lead the Department of Labor, Su said she would be bound by the direction of Congress.

Sen. Bernie Sanders, I-Vt., supported Su’s confirmation.

“The debate over Ms. Su really has nothing to do with her qualifications,” Sanders said. “This debate, really, has everything to do with the fact that Julie Su is a champion of the working class of this country who will stand up against the forces of corporate greed.”

Vote unclear

According to Axios, Su is expecting to receive no votes from all 49 Republicans in the 100-seat Senate. It remains unclear if Su will have enough votes for confirmation. According to The Hill, it is unknown how Sens. Joe Manchin, D-W. Va.; Jon Tester, D-Mont.; and Kyrsten Sinema, I-Ariz., will vote. LL