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Lujan v. G & G Fire Sprinklers, Inc.
United States Supreme Court
532 U.S. 189 (2001)
The California Labor Code mandated that all state contractors must pay workers a certain wage for state projects. If any contractors failed to pay the wage, they needed to pay the workers the extra money retroactively as well as a penalty to the state. The state could withhold payment to any contractors that were in violation of the law, and those contractors could withhold payment to subcontractors for violations. G & G Fire Sprinklers, Inc. (G & G) (plaintiff) was a subcontractor that allegedly violated the law, and as a result G & G was not paid for its work. G & G sued the California Division of Labor Standards Enforcement and several state officials including the labor commissioner, Arthur Lujan (collectively, Lujan) (defendants) in federal district court claiming a violation of their due-process rights. Specifically, G & G claimed that because it was not given an opportunity for a pre- or postdeprivation hearing, the statute was unconstitutional. The district court ruled that G & G’s due-process rights were violated, and the circuit court upheld the ruling. Lujan appealed to the Supreme Court.
Rule of Law
Holding and Reasoning (Rehnquist, C.J.)
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