Trump's most endangered Cabinet nominee
Several of President Donald Trumpās Cabinet nominees have stoked controversy, and a few have given shaky performances in Senate confirmation hearings. But all have progressed toward a normal Senate vote, except for oneāfast-food CEO Andrew Puzder, Trumpās nominee for Labor Secretary, who is stuck in procedural purgatory, a lag that could indicate his nomination is doomed.
Trump nominated Puzder on Dec. 8, which was nearly 8 weeks ago. But his Senate confirmation hearing has been delayed four times, because he hasnāt cleared the necessary hurdles at the Office of Government Ethics, or OGE, which vets nominees for potential conflicts of interest and helps guide many on how to resolve them. That makes Puzder the only Cabinet nominee so far whose ethics paperwork hasnāt made it to the Senate, a snag that suggests thereās something unusual in Puzderās background, or an unforeseen ethical problem.
Democrats smell blood, and hope Puzder could be a prominent kill among high-profile Trump nominees. Dems need at least two Republicans on the Senate Health, Education, Labor and Pension Committee (or HELP) to vote against Puzder, in order to sink his nomination. Two women senatorsāSusan Collins of Maine and Lisa Murkowski of Alaskaāmay be the toughest votes for Puzder to win, due to sexually provocative ads CKE has run under Puzder, and a few claims of sexual harassment at CKE outlets. If Puzder canāt win a majority of Republicans on the HELP committee, he probably wouldnāt make it to the broader Senate for a full confirmation vote.
Trumpās pick for Education Secretary, Betsy DeVos, is another troubled nominee, but she at least seems headed for a vote. Puzder may not get that far. For now, his nomination is stuck at the Office of Government Ethics, which doesnāt do political vetting, looking for potential scandals that might emerge from a nomineeās personal life. Thatās for Trumpās transition team to worry about. Instead, OGE mostly analyzes a nomineeās financial ties, to make sure he or she complies with laws that prevent government officials from capitalizing personally on their government role. And Puzderās case ought to be simple compared with some of Trumpās other nominees.
Former Exxon Mobil (XOM) CEO Rex Tillerson, just confirmed as Trumpās Secretary of State, cleared all the major confirmation hurdles in about one month. As part of Tillersonās ethics agreement, heāll exchange all the Exxon stock he holds for cash, give up a bunch of Exxon retirement perks and sell his shares in 156 mostly public companies within 90 days.
Trumpās pick for Treasury Secretary, Steven Mnuchin, and Commerce Secretary, Wilbur Ross, are both private investors with financial stakes in dozens of businesses. Mnuchinās ethics agreement lists 43 business entities heāll sell stakes in if confirmed, and another 42 in which he holds a position, such as director, heāll resign from. Rossās filing lists at least 48 businesses and other organizations heāll cut ties with. Both men have been through confirmation hearings and are likely to be confirmed for their new jobs soon.
The most controversial Cabinet nominee
Puzder ought to sail through the ethics process, compared with the complexities those three have to work through. Puzder, a lawyer, has worked for CKE Restaurants, parent of the Hardeeās and Carlās Jr. chains, since 1997, and been CEO since 2000. The firm, which used to be publicly owned, went private in 2010. At the time, Puzder owned shares worth about $18 million. He may still have a minor ownership stake in the firm, which is primarily owned by Roark Capital. But Puzder would have known heād have to divest any interest in CKE when Trump tapped him for Labor, so thatās unlikely to explain the holdup with his nomination.
Puzder is also one of Trumpās most controversial nominees, which might have more to do with his stalled confirmation process than his financial ties. CKE employees recently filed 33 complaints against the chainās stores in 10 states, for labor-law violations such as wage theft, on-the-job intimidation and sexual harassment. Those complaints target individual restaurantsāsome of which are franchisesānot Puzder himself. But critics say Puzder, as CEO, set a combative tone that encouraged store owners and managers to mistreat workers.
Puzder is also an outspoken critic of the minimum wage and other regulations meant to protect workers, arguing that they exert too high a toll on business owners. That has earned him the enmity of workersā groups pressuring senators to vote against Puzder. Another vulnerability: Under Puzderās watch, CKE outsourced part of its IT department to the Philippines, a violation of Trumpās own make-it-in-America-or-else diktat. Thereās also a claim by an ex-wife, now recanted, that Puzder abused her when the two were married in the 1980s.
Still, Puzder has been a vocal critic of Obama-era policies who seems to thrive on controversy. Heās known for ordering up provocative commercials featuring nearly naked women writhing as they enjoy their burgers, and for scoffing when feminist groups complain. If he ever gets a confirmation hearing, heāll have some āsplaining to do to the Senate HELP Committee, which includes six women. But he would have known that, too, when he accepted the nomination.
So whatās Puzder hiding? Thatās the question swirling on Capitol Hill, as other controversial Trump nominees, such as DeVos and Tom Price, Trumpās pick to head Health and Human Services, move through the confirmation process. But the longer the delay for Puzder, the more doubt builds. And President Trump isnāt known for being a patient guy.
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Rick Newman is the author of four books, including Rebounders: How Winners Pivot from Setback to Success. Follow him on Twitter: @rickjnewman.