September 30, 2021
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US Improperly Used Debt Collection Law to Recover Back Wages - Bloomberg Law

U.S. one-hundred dollar, ten-dollar, five-dollar and one-dollar banknotes are arranged for a photograph in Hong Kong, China, on Thursday, April 23, 2020.

The U.S. government is unable to use the Federal Debt Collection Procedures Act to collect unpaid wages owed to a foreign worker under the laws governing the H-1B visa program, the Second Circuit said Thursday.

The FDCPA only applies to funds owed to the U.S., the opinion by Judge John M. Walker Jr. said.

Datalink Computer Products Inc. owed Helga Ingvarsdóttir $341,000 in unpaid wages and ignored an order to remit that sum to the Department of Labor. The U.S. District Court for the Northern District of New York said that back wages can qualify as a debt owed to ...

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source: https://news.bloomberglaw.com/us-law-week/u-s-improperly-used-debt-collection-law-to-recover-back-wages

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