The U.S. Court of Appeals for the Third Circuit’s decision in Sun Valley Orchards v. U.S. Department of Labor could fundamentally change how H-2A violations are prosecuted. 

What Happened
DOL assessed over $580,000 in civil money penalties and back wages against a New Jersey grower for alleged breaches of its H-2A job order. Under current rules, employers must challenge such findings before DOL’s own Administrative Law Judges (ALJs). The Third Circuit, applying the Supreme Court’s 2024 SEC v. Jarkesy precedent, held that these cases involve private rights and legal remedies (civil penalties, deterrent-based back wages) that must be heard by an Article III court – not solely by agency ALJs. 

Key Points 

• The court rejected DOL’s argument that H-2A enforcement falls within the “public rights” or immigration exceptions. 

• Employers cannot be deemed to have “consented” to ALJ jurisdiction without a meaningful choice. 

• At least three similar cases nationwide have been stayed while courts decide whether DOL has the authority to try such cases administratively. 

Why It Matters
If this ruling stands, DOL may have to bring H-2A enforcement actions in federal court, where employers receive full procedural protections, including jury trial rights in cases seeking legal remedies and application of the Federal Rules of Evidence. This could alter settlement dynamics and enforcement strategy. 

Action Steps 

• Review H-2A compliance, especially housing, meals, transportation, and the three-fourths guarantee. 

• If cited, consult counsel about invoking Sun Valley to seek an Article III forum. 

• Monitor ongoing litigation in other jurisdictions, as the Supreme Court may ultimately decide the issue. 

For more information or assistance in evaluating your options under this evolving legal landscape, contact the Western Growers H-2A Services team.