Business Groups Opting Out of Su’s DOL Fight Ahead of Hearing

Prominent trade groups that have joined past lobbying efforts against nominees they view as anti-business are sitting out of a budding opposition campaign against Julie Su’s nomination to lead the US Department of Labor.

One factor that may be making the biggest difference in Su’s case compared to others the business lobby opposed is the effort the Biden administration is taking to whip votes and drown out the nascent operation against her nomination.

Several business groups say they have met with or taken phone calls with Su in the weeks leading up to her nomination hearing scheduled for April 20, points of contact that didn’t happen with other controversial DOL nominees.

Su also has been making the rounds on Capitol Hill, sitting down with notable pro-labor lawmakers such as Sens. Bernie Sanders (I-Vt.), Patty Murray (D-Wash.), and Sherrod Brown (D-Ohio) over the past few weeks.

“Our administration is currently engaged with a broad coalition of supporters on Julie Su’s nomination, including elected officials, labor leaders, key stakeholders, and business groups,” a White House official said in a statement. “We’ve seen outspoken support for her nomination since the announcement was made.”

Prominent trade groups opposed to Su’s nomination have likened her to David Weil, who withdrew from consideration for chief of the Wage and Hour Division last year after some of those organizations unleashed a fierce lobbying campaign against his nomination.

“Last year, the Senate rejected a Department of Labor nominee, David Weil, largely due to his past record of bias against independent contractors and small businesses—views very much like those of Ms. Su’s,” the International Franchise Association warned in a letter to the Senate Health, Education, Labor and Pensions Committee earlier this month.

But despite the IFA’s plans to replicate their successful campaign against Weil, other members of the business community, notably the US Chamber of Commerce, as well as groups that signed onto coalition letters against Weil—such as the National Association of Home Builders and the National Retail Federation—have all decided not to weigh in on Su’s nomination, they told Bloomberg Law.

That’s a shift from their approach to other nominees in top positions. The Chamber, for example, went so far as to endorse her predecessor Marty Walsh when his nomination was pending before the Senate. And all three of those groups signed onto letters expressing concern about Weil, who, similarly to Su, was viewed as too pro-labor by the business community.

Democrat Holdouts

Su’s nomination still likely has a difficult path to confirmation.

Su met on March 28 with Majority Leader Chuck Schumer (D-N.Y.), who said she would be a “phenomenal” labor secretary. But Su’s fate in the upper chamber remains unclear as some key Democrats withhold judgment on her nomination.

“I haven’t looked closely at her tenure as deputy secretary yet,” Sen. Mark Kelly (Ariz.) told Bloomberg Law. Kelly, one of the Democrats who helped tank Weil’s nomination, said he hasn’t met with Su.

Sen. Joe Manchin (D-W.Va.), who opposed several Biden nominees this year, has also been noncommittal about Su.

“I haven’t gotten into that yet, I’m waiting till her hearing’s over,” Manchin told Bloomberg Law when asked what he thought about Su’s record. He said he expects it to come up during her April 20 appearance at the HELP committee. “There’s concerns, I’m sure.”

Sen. Angus King (I-Maine.) told Bloomberg Law he has a meeting scheduled with Su, and expects to discuss policy issues like the joint employer standard and independent contractors.

“They’re things I’m concerned about,” said King, a moderate running for reelection next year.

Most Democrats have already voiced support for the nominee. Sen. Jacky Rosen (Nev.) hasn’t met with Su, but said she would be a good leader for the department at a time of need.

“We have to have a labor secretary who’s really going to pay attention to things that are going on in this country. We have workforce issues, labor issues, and I think she would be a good nominee,” Rosen said.

Business Opposition

Republicans and at least half a dozen business groups have continued to loudly oppose Su based on her past role in California. In a floor speech on Su’s nomination March 27, Sen. Bill Cassidy (R-La.) said Su’s record indicates a threat to franchises and independent contractors, such as rideshare drivers and truckers.

“Su has a troubling record and is currently overseeing the Department of Labor’s development of anti-worker regulations that will dismantle the gig economy,” said Cassidy, who cited as evidence California’s A.B. 5 law that defines worker classification, Su’s remarks on the joint employer standard, and unemployment insurance fraud in the state. “This does not inspire confidence in her current position, let alone inspire confidence that she should be promoted.”

A coalition of small business and independent contractor groups, including Freelancers Against AB5 and the California Business and Industrial Alliance, are planning on launching billboard and newspaper ads in Arizona, Montana, Maine, West Virginia, and other states in the coming weeks to target senators who have been wishy-washy on Su’s nomination.

Beyond those efforts, the American Trucking Association, Job Creators Network, Associated Builders and Contractors, and others that represent businesses and employers, have also voiced opposition to Su’s nomination.

“With record inflation, supply chain delays and continued workforce shortages, Ms. Su has shown she is unwilling or unable to consider the concerns of thousands of our nation’s small businesses and millions of workers who face daunting challenges under the DOL’s current regulatory agenda,” Ben Brubeck, ABC vice president of regulatory, labor and state affairs, said in a statement.

“Without assurances from Ms. Su that the voices of the majority of small businesses will be heard at DOL, ABC will be forced to raise serious objections to her nomination,” he said.