CA Labor Head, Julie Su, Chosen For Federal Seat Amid EDD Issues

CALIFORNIA — Julie Su, California's labor secretary, was tapped by President Joe Biden on Wednesday to become the deputy U.S. secretary of labor. The nomination comes on the heels of an ongoing unemployment fraud scandal, one that exploded on Su's watch.

Su is likely to face criticism following the billions of dollars paid to fraudulent claims as thousands of Californians waited for delayed benefits. If appointed by the Senate, Su would help lead the U.S. Department of Labor, a sector that oversees pay, medical leave, safety and more.

She would work under Biden's nominee for labor secretary, Boston Mayor Marty Walsh if he is confirmed.

“Julie Su embodies the spirit of California," Newsom said in a statement Wednesday. "Her commitment to empowering working people and creating opportunity for every community to thrive is exactly why she is the best choice to serve as our nation's next Deputy Secretary of Labor."

Newsom picked Su to lead the state's Labor and Workforce Development Agency in 2019.

While Su did not directly manage the unemployment agency, much of the blame has been aimed at California leaders for the agency's handling of widespread fraud and failure to come to the aid of residents severely impacted by the pandemic.

A scathing audit of the department in late January also highlighted an array of issues, including the agency's decision to stop vetting claimants to determine if they were eligible for aid. Because of this, some 4.1 million Californians may have to repay some or all of the money they were paid.

In March of last year, workers were instructed to pay all claimants without determining eligibility. That directive reportedly stood until December of last year.

The department, which was unprepared for the massive uptick in claimants, also relaxed fraud prevention measures in a rush to get benefits into the hands of Californians. The state likely paid at some $11 billion to those whose identities it was unable to verify, which the department said is likely fraud, the Associated Press reported.

"Unemployed Californians have suffered greatly during the current California labor secretary’s time overseeing unemployment benefits during COVID,” State Assembly Republican leader Marie Waldron of Escondido said according to the Los Angeles Times. “It’s very troubling to think that this record of failure could be implemented nationally, especially at a time when so many Americans are struggling."

Last December, California Assemblyman David Chiu rallied behind Su while acknowledging the faultlines of the unemployment agnecy.

“These were issues beyond her control, but from what I’ve seen she’s done everything, she possibly can to fix the situation,” Chiu said, according to the Associated Press.

In the coming weeks, Su is likely to face pushback from those who maintain she failed to oversee the state's bedeviled unemployment agency.

Su has responded to amounting criticism, reporting that the department was unprepared for the surge in unemployment claims amid the coronavirus pandemic.

"I acknowledge that problem. I own it,” Su said during a Facebook Live chat in April, where she was bombarded with questions from jobless Californians, according to the LA Times. "I want you to hear from me directly that that is not acceptable and we are going to fix it."

Ahead of Biden's nomination, a full-page ad was run in the Washington D.C. edition of USA Today, listing reasons not to appoint Su.

The ad states that "her abysmal track record in California shows she's not up for the task."

But Su has also been crowned as an advocate for worker rights who has battled major corporations. She previously worked as California's labor commissioner from 2011 to 2018. Before serving with the state, she worked as an attorney for Asian Americans Advancing Justice in Los Angeles.

SEE ALSO: CA Audit: Millions May Have To Repay Pandemic Unemployment Aid