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Hardee's CEO and labor sec'y nominee sued for labor law violations

February 15, 2017

Labor secretary nominee and CKE Restaurant Group CEO Andrew Puzder may have a labor violations lawsuit on his hands. While at least four Senate Republicans were equivocating about voting for President Trump's nominee for the job, qz.com disclosed this morningthat Puzder allegedly led the company while it violated labor laws. The article reported that two employees filed suit Feb. 8 against Puzder in Los Angeles Superior Cour. 

Specifically, the suit alleges that under Puzder's leadership, CKE Enterprises — parent company of the Carl’s Jr. and Hardee’s fast-food chains — suppressed workers' wages through engagement in unfair business practices. 

Plaintiffs include one former and one current Carl’s Jr. employee —  Luis Bautista and Margarita Guerrero —  who are together seeking class-action status on behalf of other workers at the chains who may be in similar situations. In fact, the plaintiffs claim their allegations represent a system-wide pattern of violations through use of agreements between CKE franchisees that ultimately prevent workers from bargaining for raises. The plaintiffs referred to these agreements as part of the company's "no-hire" clause, according to Quartz. 

A lawyer for the plaintiffs said that the clause prohibited hiring CKE workers between franchises, which suppressed free market competition for them by cutting their bargaining power, in violation of current labor law. 

CKE attorney, Charles Seigel, responded to the suit only by saying,  “[T]his baseless lawsuit is obviously intended to be an attempt, albeit a feeble one, to derail the nomination of Andy Puzder. … The plaintiffs and their backers will succeed at neither.”

This comes on the heels last week of Puzder's admission to employing an undocumented immigrant as a housekeeper, as well as word in the Washinggton Post yesterday that at least four Senate Republicans are "on the fence about” the nominee.

Puzder's confirmation hearing is set for Thursday, but a follow-up story on CNN todayindicated that GOP Senators Susan Collins of Maine, Lisa Murkowski of Alaska, Tim Scott of South Carolina and Johnny Isakson of Georgia are all reconsidering the nomination, one more than would be needed to block Puzder as a confirmed choice for the job. 

Democrats have already called for the nomination to be withdrawn, but since they are also in the minority in the Senate, that request has largely been ignored. 

Photo: iStock