Biden Labor Nominee Bad For Arizona Business

Su
United States Deputy Secretary of Labor Julie Su. [Official Department of Labor Photograph]

By Wes Snyder

The opportunity to run your own business is a core part of the American dream, and today franchising makes it more attainable than ever.

That’s exactly what I’ve done as the owner of a FASTSIGNS franchise here in Arizona. But that dream is under fire thanks to Julie Su, President Biden’s nominee for Secretary of Labor. If confirmed, Julie Su will turn the American dream into the American nightmare.

Franchise businesses are essential employers in Arizona’s economy. Our state alone has some 18,000 franchise establishments, employing hundreds of thousands of Arizonans. Nationally, franchise businesses provide over $800 billion in GDP, and support over 8 million direct jobs. Franchise small businesses provide 2-3% higher wages and offer health insurance at a higher rate than non-franchise small businesses. Additionally, franchises are owned by people of color at a higher rate than non-franchise businesses.

Franchise businesses have a clear record of success. But, Julie Su has a demonstrated history of undermining this business model.

During her time as Deputy Secretary of Labor, Su was a key figure in supporting California’s FAST Act, a law that would undercut franchise owners by giving unaccountable government appointees the authority to dictate business decisions on issues like wages and working conditions. According to a survey of economists done by the Employment Policies Institute, 93% of economists expect the FAST Act to drive up operating costs, and 73% say it would cause franchises to close restaurants in California.

In response to this threat, over one million Californians mobilized and signed a petition to have a referendum on the legislation, which will be set for 2024. Despite this pushback, Su remained an outspoken supporter of the FAST Act, even going so far as to say, “The Department of Labor stands with you. The Biden-Harris Administration stands with you,” in a full-throated endorsement of the legislation.

Franchisees are not the only ones Su has targeted, she has also worked to increase restrictions and regulations on small business owners across industries.

As California’s Labor Commissioner, Su created the Criminal Investigation Unit, an armed labor police force tasked with targeting business owners. The force was structured like Su’s personal army, made up entirely of police academy graduates who reported to Su directly. Su even bragged about the unit’s unapologetic targeting of businesses, saying: “When we first implemented the unit, newspaper headlines warned of armed Labor Commissioner deputies coming to get employers in California and arrest them for crimes. And, well, we are!”

The mandate of any Secretary of Labor is to work on behalf of all American wage earners, job seekers, and retirees. But at every opportunity, Su has demonstrated a bias against business owners, a desire to restrict and reform how private businesses operate, and an unwillingness to compromise in the face of opposition. This is not only unacceptable but also disqualifying.

Right now, workers and business owners are faced with a shaky and uncertain economic environment as we recover from Covid. We need stable leadership that prioritizes recovering the jobs and wages lost to Covid and inflation, not one with a record of war on job creators. The Senate needs to confirm a Secretary of Labor that gives us that stability, not Julie Su.

Wes Snyder is the owner of a FASTSIGNS franchise in Arizona