Janik Employee Rethink Case

Throughout the contract, if a contractor of subcontractor is found to be involved in aggravated or will violation of the overtime hours and pay requirements can be deemed as ineligible for a period of not to exceed 3 years. Janik’s had employees complaining about not receiving payment for overtime hours works on the projects. On May 9, 1983, the Wage and Hour Division notified Janik of the findings and advised that they would be debarred from future federally-sponsored work. May 25, 1983, Janik appealed and requested an administrative hearing. The formers employees testified about the hours being documented on the timecards submitted were greater than what was being reflected on each individual’s timecard and that strengthen the case against Janik. The employees had personal records to confirm that they were logging the time work but was never compensated. Of course, the company denied the allegations of reducing overtime hours but avoided denying that Janik had not reduced overtime hours. May 1, 1986, a decision was made and confirmed that the employees were never compensated accordingly for the overtime hours. An investigation was done between February and June and the findings confirmed that the

After unsuccessful attempts of appeals to the DOL Wage Appeals, February 5, 1987 action was commenced and included the Secretary of Labor, other DOL officials and the
Comptroller General implemented the debarred order and annulled the debarment on the finding that it was unsupported by substantial evidence. By April 16, 1987 the judge dismissed the action. The CWHSSA does provide two provision delegating rulemaking authority to the Secretary but only one of which is relevant. Overall Congress didn’t mean to allow the Secretary of Labor of that power. It was argued that the debarment was a penalty that could be authorized only by specific statutory language and it was