Puzder’s Labor Secretary Nomination in Question
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Puzder’s Labor Secretary Nomination in Question

Will the employee minimum wage scandal sweeping across the convenience store and fast-food restaurant sectors of the franchise industry cost Andrew Puzder the nomination for U.S. Labor Secretary? If recent developments are any indication, the answer may be yes. Puzder, CEO of CKE Restaurants, which includes the Carl’s Jr.s and Hardee’s restaurant’s franchise chains, is under fire for the same minimum wage violations where employees, particularly vulnerable and sometimes undocumented immigrants, have been hired and paid below the minimum wage. Puzder’s leadership is being called into question because his company has been cited by the Occupational Safety and Hazard Administration with over 90 violations, conditions within the restaurants that could cause injury or death. Add that to the 2004 lawsuits in California claiming unpaid overtime for general managers in which CKE paid $9 million to settle the claims. As of this writing, the Mr. Puzder’s nomination hearings are in recess until February 2017 to give investigators more time. The labor movement, “Fight for 15” is actively challenging the nomination.

While Pudzer’s nomination is supported by the International Franchise Association, Pudzer’s, being a person who knows how to grow a business, low-paid Carl’s workers point out previous statements that he has made regarding automation and wanting to replace fast food employees with machines that do not “need to take bathroom breaks” as reasons to oppose his appointment. They state that the workers need someone who will fight for the rights of workers to earn a living wage. The group goes on to state that as a direct result of holding down wages, CEO’s like Pudzer cost the taxpayers over $7billion dollars per year because low-paid workers are forced onto federal public assistance programs like food stamps.

Franchise attorney Mario L. Herman represents individuals and businesses looking to buy or sell a franchise or expand their existing business using the franchise model. Mr. Herman is an advocate for the interests of those who may have been defrauded by companies that have failed to pay the minimum wage.