Janik Paving & Construction, Inc. v. Brock

Janik Paving & Construction, Inc. (Janik) (plaintiff) entered into two federally funded government construction contracts. Both contracts included a Davis-Bacon provision that required Janik to pay its workers the prevailing wage in the relevant locality. Further, both contracts were subject to the Contract Work Hours and Safety Standards Act (CWHSSA) which, in relevant part, required Janik to provide overtime pay. The Department of Labor (Department) (defendant) investigated Janik’s performance and determined that Janik failed to appropriately pay overtime and falsified its pay records to cover up that failure. Janik challenged the Department’s findings at an evidentiary hearing before an administrative-law judge (ALJ). At the evidentiary hearing, the Department presented evidence of Janik’s improper recordkeeping, falsified paystubs, and introduced testimony from several Janik employees that they were consistently underpaid for hours worked. The ALJ ordered Janik to pay back wages to the employees and debarred Janik from being awarded government contracts for a period of two years. Janik unsuccessfully appealed to the Department’s Wage Appeals Board, then filed an action to enjoin enforcement of the debarment in district court, arguing that (1) the Department did not have the authority to issue a debarment; and (2) there was insufficient evidence to support a debarment. The district court dismissed Janik’s action. Janik appealed.