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15 F.4th 222
2d Cir.
2021
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Background

  • Datalink Computer Products, Inc. and its president Vickram Bedi hired Helga Ingvarsdóttir on an H‑1B and certified to DOL they would pay the prevailing wage.
  • Ingvarsdóttir alleged she was paid little or nothing; DOL found unpaid H‑1B wages and an ALJ (and later the ARB) ordered Bedi and Datalink to pay about $341,000 in back wages to Ingvarsdóttir.
  • Bedi and Datalink failed to pay; Ingvarsdóttir’s state‑court attempt to collect was dismissed.
  • The United States sued under the Federal Debt Collection Procedures Act (FDCPA), seeking to use FDCPA procedures to collect the administrative back‑wage award.
  • The district court granted summary judgment for the Government relying on Second Circuit precedent in NLRB v. E.D.P.; on appeal the Second Circuit reversed, holding the FDCPA does not authorize collection of back wages owed to a private employee and overruling E.D.P.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the FDCPA authorizes the United States to collect an administrative award of back wages owed to a private employee FDCPA applies because the award enforces federal labor standards, advances public interest, and the debt derives from federal regulation (not a purely private contract) The award is owed to the private employee (Ingvarsdóttir), not the United States; FDCPA applies only to amounts "owing to the United States" Reversed: FDCPA applies only to amounts "owing to the United States." An administrative back‑wage award payable to a private person is not a FDCPA "debt." E.D.P. overruled
Whether the district court erred in rejecting defendants’ in pari delicto defense (Gov’t did not press a contrary position on appeal) Defendants argued in pari delicto could bar enforcement Not reached: the court declined to decide because statutory interpretation resolved the case

Key Cases Cited

  • NLRB v. E.D.P. Medical Computer Sys., Inc., 6 F.3d 951 (2d Cir. 1993) (previous Second Circuit decision permitting FDCPA collection of agency back‑pay awards; overruled)
  • Nathanson v. NLRB, 344 U.S. 25 (1952) (NLRB backpay is not a debt "owing to the United States" for Bankruptcy Act priority purposes)
  • United States v. Bongiorno, 106 F.3d 1027 (1st Cir. 1997) (FDCPA does not apply where government is not holder or direct beneficiary of the debt)
  • Sobranes Recovery Pool I, LLC v. Todd & Hughes Constr. Corp., 509 F.3d 216 (5th Cir. 2007) (interpreting FDCPA limitation on debts arising from contracts to exclude private‑origin obligations)
  • Bostock v. Clayton County, 140 S. Ct. 1731 (2020) (statutory‑interpretation principles cited regarding adherence to text)
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Case Details

Case Name: United States v. Bedi
Court Name: Court of Appeals for the Second Circuit
Date Published: Sep 30, 2021
Citations: 15 F.4th 222; 20-1955-cv
Docket Number: 20-1955-cv
Court Abbreviation: 2d Cir.
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    United States v. Bedi, 15 F.4th 222