Puzder withdraws as Trump's Labor nominee amid Republican doubts

Andrew Puzder withdrew Wednesday as President Donald J. Trump's labor secretary nominee as controversy deepened over his personal life and private sector background.
FEB 15, 2017
By  Bloomberg

Andrew Puzder withdrew Wednesday as President Donald Trump's labor secretary nominee as controversy deepened over his personal life and private sector background. Mr. Puzder had been scheduled for a Senate confirmation hearing on Thursday. The fast-food executive ran into trouble on Capitol Hill over his admission that he employed an undocumented housekeeper. Also shadowing his nomination were divorce-court proceedings that included a domestic-abuse allegation. Some conservatives, likewise, had questioned his pro-immigration stance. In an e-mailed statement, Mr. Puzder said he had hoped to "put America's workers and businesses back on a path to sustainable prosperity" and bring "new thinking" to the job. At least six Republicans had said they weren't ready to back Mr. Puzder and were waiting for his confirmation hearing. CNN reported earlier Wednesday that top Senate Republicans urged the White House to withdraw Mr. Puzder's nomination because at least four, and as many as 12, GOP senators planned to vote against confirmation. In the 52-48 Senate, three Republican defections would have doomed Mr. Puzder if all 48 Democrats voted to deny him.

Carl's Jr., Hardee's

Mr. Puzder is head of the fast food conglomerate CKE Restaurants Inc. that includes Carl's Jr. and Hardee's. His withdrawal comes after a week that saw party-line confirmations in the Senate and a tie-breaking vote cast by Vice President Mike Pence to confirm Education Secretary Betsy DeVos. That 51-50 tally was the first time a vice president ever broke a tie on a cabinet nomination. Mr. Trump has already lost one senior member of his administration. He dismissed Mike Flynn as national security adviser on Monday because the administration said he may have misled the president and vice president about his communications with a Russian envoy. Mr. Puzder acknowledged early this month that he employed an undocumented immigrant as a housekeeper until learning of the worker's immigration status. Senate Majority Leader Mitch McConnell, a Kentucky Republican, had said last week that allegations of hiring undocumented workers have sunk other cabinet nominees, but not always. "We're always looking for nominees who have never made a mistake," Mr. McConnell told reporters at the time. "He realized the mistake. He fixed it and I think is eminently qualified for the job." Opponents also seized on multiple news reports that Mr. Puzder had been accused by Lisa Fierstein, his first wife, of domestic abuse. Mr. Puzder denied the allegations. Ms. Fierstein, in a Jan. 18 letter to lawmakers, said that she had made such allegations against Mr. Puzder but later withdrew them, saying "Andy is not and was not abusive or violent."

Oprah Winfrey Show

Republican Sen. Susan Collins of Maine — one of those who expressed doubts about Mr. Puzder earlier this week — said she had viewed an episode of Oprah Winfrey's talk show dealing with domestic violence in which Fierstein appeared. "I am reviewing the other information that has come to light, and I'm sure all of this has been explored thoroughly," Ms. Collins said at the time. Mr. Puzder had agreed to divest an ownership stake worth as much as $50 million in his closely held fast-food company if he was confirmed as the next Labor secretary, according to his federal financial disclosure and ethics agreement. Democrats sharply criticized Puzder's nomination, as Minority Leader Chuck Schumer of New York said he "is so anti-working people that it's appalling." Mr. Puzder opposes efforts to raise the minimum wage. He also has written that legal immigration was an asset to the nation and that it would be unworkable to deport the 11 million undocumented people in the U.S., as Mr. Trump promised repeatedly during his campaign. But he also said Mr. Trump's proposals to build a border wall, stiffen enforcement and defund cities that provide sanctuary to undocumented immigrants were reasonable.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave