Julie Su, who oversees California’s troubled unemployment system, to join Biden administration
Julie Su, who oversees the California Labor and Workforce Development Agency and its embattled unemployment system, was nominated Wednesday by President Joe Biden as the deputy secretary of the U.S. Labor Department.
Su is generally viewed two ways: As a highly respected worker rights attorney and advocate who has battled with major corporations — and as the leader of the troubled state agency that has struggled to manage California’s unemployment system and has been hit by allegations of widespread fraud during the coronavirus pandemic.
Last week, the California Business and Industrial Alliance ran a full-page ad in the Washington, D.C., edition of USA Today.
It listed reasons not to appoint Su, including that she “oversaw massive failure of California’s unemployment insurance system” and that there has been an “estimated $30 billion in unemployment insurance fraud on her watch.”
But other influential interests have pushed Su hard for the top Labor job, which went to Boston Mayor Marty Walsh. The Congressional Asian Pacific American Caucus had made a strong endorsement of Su for that post, joining a coalition of influential immigration rights and progressive groups.
California labor union officials were enthusiastic about the choice. Art Pulaski, California Labor Federation executive secretary-treasurer, said “We thank President Biden for making this nomination, and can’t wait to get to work with Su and the new Department of Labor leadership on addressing the myriad challenges facing workers in this incredibly difficult economic environment.”
A genius grant
Su, the daughter of Chinese immigrants, is a graduate of Stanford University and Harvard Law School, Su won acclaim for her 1995 work helping undocumented immigrants from Thailand who worked in sweatshop conditions for long hours at an El Monte garment factory.
In awarding Su a genius grant in 2001, the MacArthur Foundation wrote how “she filed a landmark federal lawsuit on behalf of these workers, establishing a precedent that expands the scope of employment responsibility beyond manufacturing subcontractors to the retailers and fashion designer labels that initially contract for the work.”
Su not only got monetary compensation for her clients, but legal immigrant status.
“Her attention to the human and legal dimensions of the abuses of immigrant laborers provides a powerful model for public advocacy,” the foundation wrote. The case became an important turning point in state and federal bids to fight human trafficking.
Former Gov. Jerry Brown appointed her California Labor Commissioner in 2011, giving her authority over the department that enforces California’s robust labor laws. Prior to that, Su was litigation director at Asian Americans Advancing Justice-Los Angeles.
She’s spoken up over employers who threaten foreign workers with deportation, and recently battled with gig economy giants Uber and Lyft over their drivers’ pay.
But the Su that Californians are more familiar with today is the secretary of the California Labor and Workforce Development Agency. The agency oversees the Employment Development Department, which has struggled to keep up with an unprecedented number of unemployment claims.
California’s unemployment troubles
Backlogs have been enormous. Call centers have been overwhelmed. People found the website confusing. Sacramento lawmakers from both parties have expressed outrage after repeatedly hearing from frustrated constituents. Gov. Gavin Newsom named a strike force to help the agency run more efficiently, and its reforms are being implemented.
The latest controversy to rock the department involved reports of prison inmates claims that could top $1 billion. Federal, state and local officials are investigating the scheme.
“The volume of fraud as well as the types of inmates involved is staggering,” a law enforcement task force told Newsom last month.
State audits and federal Labor Department documents show that the department was warned well months ago that its systems were vulnerable to identity theft.
Federal officials issued alerts about fraud schemes, and gave the state extra funds to help deal with potential trouble.
But California was one of 15 states that did not follow one of the major pieces of advice — to cross-check Social Security numbers with prison inmate records.
Will she be confirmed?
Su had strong backing from some influential interests, influence likely to be needed as she tries to navigate Washington.
“Over the course of nearly 10 years in office, Julie Su has developed a track record of reinvigorating labor agencies to deliver on their mission,” wrote a letter to Biden from the National Immigration Law Center.
Dozens of interest groups signed the letter, including the California Association of Food Banks, California Employment Lawyers Association, National Black Worker Center, National Center for Housing & Child Welfare, Farm Worker Justice, National Center for Law and Economic Justice, National Center for Lesbian Rights and National Council of Asian Pacific Americans.
Also pushing hard is the Asian American and Pacific Islander Victory Fund.
“It would be deeply disappointing if several AAPIs are not nominated to serve in your Cabinet,” wrote , the group’s chair and founder said in a letter to Biden. It pointed out its community raised $11 million for the Biden-Harris ticket.
Labor organizations are Su supporters.
Randi Weingarten, president of the American Federation of Teachers, told McClatchy in a statement, “Julie has a clear commitment to advancing the cause of all of us who work to restore dignity and justice to every job in this country, particularly low wage workers,” Weingarten said.
The California Business and Industry Alliance had a very different view.
“The buck stops with Julie Su,” it said in a full page Wall Street Journal ad December 4.
Last week, it reinforced that view, citing in its new ad what it called “her abysmal track record in California shows she’s not up for the task.”
This story was originally published February 10, 2021 at 10:06 AM with the headline "Julie Su, who oversees California’s troubled unemployment system, to join Biden administration."
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