By Nandita Bose
WASHINGTON (Reuters) -Republican U.S. lawmakers on Thursday criticized President Joe Biden's nominee for U.S. labor secretary, Julie Su, saying she dismantled the gig economy, hurting companies such as Uber (NYSE:UBER) and DoorDash
Su, a civil rights lawyer and former California labor commissioner, found unequivocal support from several Democrats on the committee. She needs at least 50 votes in a Senate where Democrats have a slim 51-49 majority.
At her testimony, Senator Bill Cassidy, ranking Republican on the Senate Health, Education, Labor and Pensions Committee, said that in California she enforced 85 "controversial laws that dismantled the gig economy," and hurt "Uber, DoorDash and Lyft (NASDAQ:LYFT)."
Su said misclassification of a de-facto employee as an independent contractor who is not entitled to earn the minimum wage and overtime pay, "is a problem in our economy that needs to be addressed."
"Bonafide independent contractors will always have a place in our economy, they have and always will and they're very, very important," Su said.
In California, Su supported laws that classified some gig workers as employees, which gives them benefits such as a minimum wage, sick time and healthcare. Industry groups that represent companies employing gig labor have launched an aggressive campaign to oppose her nomination.
Cassidy also accused her of eliminating independent contracting during her tenure as Biden's deputy secretary of labor. He asked her if she would commit to not pushing California-type regulations if nominated, and Su answered, "yes."
Su was also asked if she would commit to not pursuing a joint employer rule, which would treat companies as so-called "joint employers" when they have indirect control over working conditions such as scheduling, hiring and firing. She replied that "there is not a joint employer rule on our regulatory agenda."
It is not a given that all Senate Democrats will support Su.
Crucial senators in Montana, West Virginia and Arizona, who voted for Su to become deputy labor secretary in 2021, are on the fence about her confirmation for the top job.
"The debate over Ms. Su has nothing to do with her qualifications" but "everything to do with the fact that Julie Su is a champion of the working class of this country who will stand up against the forces of corporate greed," said Bernie Sanders, who chairs the committee.
Senator Tina Smith, a Democrat from Minnesota, called the hearing an instance in which "big business lobbyists decide collectively that they're going to flex their muscle and try to defeat" a candidate.