Facts of the Case
Sun Valley Orchards, a New Jersey farm employing seasonal workers through the H-2A visa program, was ordered by Department of Labor administrative law judges to pay over $550,000 in civil penalties and back wages for alleged violations of its H-2A job order, including substandard housing and premature termination of workers. The farm sued, arguing that Article III requires monetary contract-violation claims to be decided by a federal court rather than an executive agency. The district court dismissed the challenge, but the Third Circuit reversed, holding the Department cannot adjudicate these disputes in an internal administrative forum.
Questions
May the Department of Labor legally use its own administrative proceedings to collect money from employers who violate worker contracts, or does the Constitution require such cases to be decided by a federal court?