Pressure is mounting in the Senate for President Biden to withdraw his nomination of Julie Su for secretary of labor — and for good reason. Su has a long history of supporting policies that would harm businesses.
During her tenure as California’s labor secretary, Su oversaw the largest unemployment fraud in the state’s history. Under her watch, the Employment Development Department (EDD) wasted nearly $40 billion in fraudulent claims, leaving many struggling to make ends meet. To make matters worse, more than $1 billion of those claims were sent to criminals, including death row inmates.
Thanks to Su’s negligence, the EDD owes the federal government $17 billion for money borrowed during the pandemic.
Su’s record of incompetence expands far beyond her failures with EDD. Su was a vocal advocate for the Private Attorneys General Act (PAGA). This unique law allows employees to sue their employers on behalf of the state for labor violations, costing California billions of dollars.
PAGA resulted in a flood of frivolous lawsuits, many of which are as minor as typos on a pay stub. PAGA has been a major headache for businesses, driving up costs and making hiring and retaining workers more difficult. In some cases, the penalties can be more than the business’s annual profits.