LIVE: Supreme Court Hears Case Challenging Labor Department’s Authority to Impose Penalties on Farms

The U.S. Supreme Court hears oral arguments in Department of Labor v. Sun Valley Orchards on Nov. 10, examining whether the department has the authority to decide contract disputes and impose fines through its administrative proceedings.

The case involves a New Jersey farm accused of violating federal H-2A agricultural guest-worker program requirements, including providing inadequate housing and terminating workers before their contracts ended. The department ordered the farm to pay more than $550,000 in civil penalties and back wages.

The U.S. Court of Appeals for the Third Circuit ruled that the department cannot resolve these private contractual disputes through its internal administrative process, prompting Supreme Court review.