DOL must pursue civil penalties and back wages for alleged violations of its H-2A visa regulations in federal court instead of unilaterally imposing these payments on an employer, the U.S. Court of Appeals for the Third Circuit ruled in Sun Valley Orchards v. DOL.
DOL alleged that a New Jersey employer violated the H-2A visa program by coercing employees to end work before the contract period expired and failing to provide specified living standards. An administrative law judge imposed more than $500,000 in back wages and penalties on the employer, and DOL’s Administrative Review Board affirmed. On appeal, a federal district court judge upheld DOL’s actions.
The Third Circuit reversed, ruling that Article III of the Constitution requires DOL to pursue these common-law remedies through federal court rather than through its administrative system. DOL has asked for a rehearing in front of a panel of all Third Circuit judges.
Under the Sun Valley ruling, employers would have more legal certainty and a chance to defend themselves in court, but enforcement actions could take longer and become more complex.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.