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