President Joe Biden’s nominee to lead the Department of Labor, Julie Su, testified during a House Committee on Education and the Workforce hearing recently. As an opponent of small businesses, freelancers, and franchisers, Su has demonstrated a bias against the nation’s entrepreneurs.
Much of her congressional support is based on her biography as an Asian American and daughter of immigrants. But why should Su be given the opportunity to deny other immigrants access to entrepreneurial opportunities that can secure their own American dream?
Su’s supporters claim that “in the eyes of the right, her race and gender count against her nomination.” Su was born to Chinese immigrants. Her mother arrived in the U.S. on a cargo ship. Later, her family owned a dry-cleaning business and a pizza franchise. They bootstrapped their way into the middle class.
That story is admirable and hearkens to my own immigrant story. My family and I immigrated to the U.S. from a tiny Caribbean island and started from scratch in a poor, crime-filled Boston neighborhood.
The problem is not Su’s heritage, sex, or personal story. On the contrary, those resonate with me. But I look at Su’s so-called worker-friendly policies and worry that they weigh heavily in favor of unions and against the small guys and gals just trying to carve out their own future untethered to a (union) job.
Su’s claim that “bonafide independent contractors will always have a place in our economy” rings hollow. She has overseen the Labor Department’s proposed rule to redefine independent contractors in the U.S. If implemented, this would restrict independent work for the nation’s 64 million freelancers — more than half of whom are women.
The reclassification of these workers would be devastating for individuals who prefer their independent status. During the hearing, Rep. Erin Houchin (R-IN) shared her story of being an independent contractor as a mother. If in place, the proposed rule would have effectively pushed her out of the workforce. Su flatly refused to change course on the department’s proposed rule or to support the more freelancer-friendly Trump-era regulation. The National Federation of Independent Business opposes Su’s nomination, saying of the proposed rule that there would be “far-reaching negative effects on millions of small businesses, many of whom rely on independent contractors for their operations.”
Restrictive legislation in California during her tenure as secretary for the Labor and Workforce Development Agency, known as Assembly Bill 5, resulted in the destruction of tens of thousands of careers for professionals, from special education teachers to dancers, and artists to cancer registrars.
AB 5 hit women hard. Take, for example, a California florist who overcame a three-year battle with cancer while raising her children. Independent contracting gave her the flexibility to manage her own care. She hired other mothers as freelancers because of the seasonal and sporadic nature of her business. But her business couldn’t survive California’s AB 5 restrictions.
As mothers, caregivers, trauma survivors, and entrepreneurs, women seek nontraditional, flexible work for many reasons. They overwhelmingly choose to pursue independent contracting for greater flexibility ; more control over their schedule, work location, and financial future; and better work-life balance over traditional jobs.
Su lacks direct experience running a small business. Leaning on her parents’ or extended family’s small business experience is not enough. Leading the Labor Department would place critical management responsibilities, plus regulatory authority over businesses of all sizes, in her hands. Her record in California exposed other severe leadership weaknesses.
In America, anyone is able to climb up from humble beginnings to lead our nation. But an inspiring story does not overshadow a policy agenda that discards the very economic ladder for others to ascend as well.