Julie Su, the DOL nominee, is a threat to freelancers, warns Gabriella Hoffman.

Fast Company’s Fictional Claim: Julie Su’s Appointment is Good News for Freelancers

Fast Company, a business magazine, recently published a piece of fiction claiming that the selection of deputy Labor Secretary Julie Su to succeed Marty Walsh is good news for freelancers. However, this claim is not only laughable, but it’s also devoid of reality. The gaslighting is strong here.

Julie Su’s Record

Julie Su was an architect of the disastrous California Assembly Bill (AB) 5, which redefined many of the state’s gig workers as employees. Despite this, the author of the Fast Company article writes, “It’s unclear how tough of a stance Su would take on the gig economy, compared to other issues.” Are they serious? There are countless reports of Su’s actions and statements in support of forced classification under an ABC test that she helped craft to severely alter the Golden State’s freelance economy.

In a 2019 interview with CalMatters, Julie Su praised AB5 and claimed “it will set a model for the country.” This statement alone should terrify freelancers across the nation.

The author continues, “A large part of Su’s role in California was helping craft AB 5, which established a three-part test that led many of the state’s gig workers to be redefined as employees.” Here, the author accurately reports Su was pivotal in upending the freelance economy in that state. A law so unpopular and shoddily implemented, the leftist San Francisco-based 9th Circuit Court of Appeals said it may be plausible that AB5 is “unconstitutional” for violating the equal protection clause of the Fourteenth Amendment for selectively applying to certain industries and not others.

Since being enacted into law, AB5 displaced many freelancers from the workforce. The ABC test subjects workers to unreasonable criteria to prove they are an independent contractor and not a traditional W2 employee.

Concerns About Su’s Selection

Despite concerns about Su’s selection, the Senate Health, Education, Labor and Pensions Committee advanced her nomination following her April 20th committee hearing. A full Senate vote, however, looks unlikely at this time. Given Senator Dianne Feinstein’s absence and four undecided Democrat Senators – Joe Manchin (D-WV), Jon Tester (D-MT), Mark Kelly (D-AZ), and Kyrsten Sinema (I-AZ) – the Biden pick is not a shoo-in.

Julie Su has an extensive record of partisan activism and promoting policies that undermine workers to the benefit of politically-connected labor unions. A qualified Secretary of Labor needs to successfully handle negotiations, manage a department properly, and refrain from partisan activism. Unfortunately, the Biden administration is intent on having pro-labor advocates like her to implement aspects of AB5 and its federal companion bill, the Protecting the Right to Organize (PRO) Act, by regulatory fiat.

Coalition Groups Warn Against Su’s Selection

Stand Against Su, a grassroots coalition formed to oppose her nomination on the grounds she is anti-worker, comprises small businesses, freelancers, tipped workers, and franchisees. They not only cite her poor track record with regards to AB5, but failure to properly steward $40 billion in pandemic relief–including payments that went to death row inmates and deceased Californians.

The Flex Association, which represents rideshare drivers, similarly conveyed their skepticism over Su’s selection, writing, “We are also concerned that the Administration’s current nominee to lead the Department, Ms. Su: (1) does not fully appreciate the potential impact of policies that undermine independent work on both workers—who appreciate the flexibility, in particular— and those that depend on the services they provide, and (2) has a record indicating an oppositional approach to policymaking that carries real implications as she seeks to be elevated to serve as the Department’s primary policymaker.”

Conclusion

Here’s what is crystal clear: Julie Su is vehemently anti-worker and not suitable to helm the Labor Department given her track record. Rulemaking must reflect reality: The U.S. workforce is trending towards freelance arrangements– not back to unionized, traditional jobs. The White House shouldn’t nominate corrupt individuals like Julie Su.