Su nomination for DOL Secretary facing opposition

Deputy Secretary of Labor Julie Su is facing mounting opposition to her nomination to the top job at the Department of Labor (DOL). Although only the Senate can vote on the nomination, House Republicans sponsored a hearing on California’s approach to independent contractors the day before Su faced her initial Senate panel in an attempt to highlight her prior position on this volatile issue. As California’s labor secretary, she strongly supported the state’s “ABC” classification system that made being an independent contractor much more difficult. Opponents to the California rule and to Su claim the ABC rule threatens the entire gig economy.

Tech companies, trucking associations, and dozens of other industry groups are joining solid Republican opposition to Su, whom they believe will support a federal independent contractor rule that mirrors the one in California. Her supporters note the DOL’s proposed independent contractor regulation stated the agency is “legally constrained” by court rulings from implementing such a test. The Biden administration has also said it has no plans to institute the California rule. This has done little to satisfy Su’s opponents, who argue intended ambiguities in the proposed independent contractor rule could be interpreted to constrain employers in a way that would imperil the independent contractor classification.