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By Robert Alexander
Senior Crime & Court Reporter
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A federal judge in Washington, D.C., has upheld the U.S. Department of Labor's (DOL) authority to adjudicate disputes under the H-2B seasonal worker visa program, rejecting a constitutional challenge brought by a California carnival operator.
In a decision issued August 26, 2025, Judge Beryl A. Howell of the U.S. District Court for the District of Columbia ruled against Butler Amusements, Inc., which had sought to overturn administrative penalties stemming from its 2012 hiring of foreign workers through the H-2B program. The court denied Butler's motion for summary judgment and granted the government's cross-motion, leaving intact orders that the company pay $26,955.40 in back wages and $10,000 in civil penalties.
Why It Matters
The case matters because it preserves the Department of Labor's ability to enforce the H-2B seasonal worker program through its own administrative judges, even after the Supreme Court's SEC v. Jarkesy decision raised doubts about agency tribunals.
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By framing H-2B enforcement as part of the federal government's "public rights" authority over immigration, Judge Beryl Howell's ruling ensures the program can continue without being rerouted into federal courts, a shift that could have slowed enforcement and weakened worker protections.
With industries from hospitality to landscaping depending on H-2B labor, and a circuit split already emerging, the decision stabilizes the system for now while setting up a potential test at the Supreme Court.
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What To Know
Background of the Case
In 2012, Butler Amusements applied to bring over 200 foreign workers to staff its traveling carnival under the H-2B program, which allows employers to hire nonagricultural temporary workers when U.S. labor is unavailable. Federal rules require employers to first recruit domestically and, if unsuccessful, to pay H-2B workers the prevailing local wage.
A DOL investigation in 2013 found discrepancies between the company's application and its actual use of workers. Nine H-2B employees were assigned to roles such as drivers, maintenance workers, and supervisors, rather than the "amusement and recreation attendants" listed in the certification. They were paid less than the prevailing wage for those alternative positions.
After years of proceedings, an administrative law judge (ALJ) in 2020 found Butler in violation of program rules. The DOL's Administrative Review Board affirmed the decision in 2023.
Constitutional Arguments
Butler challenged the enforcement in federal court, invoking the Supreme Court's 2024 decision in SEC v. Jarkesy, which struck down certain in-house SEC enforcement actions. The company argued its penalties likewise should have been decided in federal court with a jury, not by DOL judges, citing Article III and the Seventh Amendment.
Judge Howell rejected the comparison. "Whatever else public-rights cases might include, they unquestionably include Congress's plenary power over immigration," she wrote. The court emphasized that the H-2B program exists "only by grace of the other branches" and that employers consent to its framework. Howell also noted Butler "litigated for five years before the agency without a peep of concern," effectively consenting to the forum.
Other Claims
Butler also argued the case was untimely and that the 2008 regulations it violated had been struck down. The court dismissed both. On timing, Howell held that the violation occurred when workers were misassigned in 2013, not when applications were filed. Because enforcement began in 2018, it fell within the five-year statute of limitations.
As to the rules, Butler argued that the DOL's 2008 H-2B regulations had been struck down in a separate case in Florida and later replaced in 2015. But Judge Howell cited the same Florida court that later clarified its vacatur applied prospectively only: "The 2008 Rules are enforceable," she wrote.
Broader Implications
The decision carries weight beyond the carnival industry. Employers across hospitality, landscaping, and seafood rely heavily on H-2B workers, and the program has long been politically and legally contested. By siding with the DOL, the court reaffirmed that agency judges can continue to oversee visa enforcement—even in the wake of Jarkesy.
What People Are Saying
Administrative Law Judge (2020) said: "[Butler Amusements] acted with reckless disregard for whether it was in compliance ... by ignoring the regulations and employing nine H-2B workers outside of its job certification. To allow employers to select a job code ... and then employ H-2B workers to perform a different job entirely undermines the purpose of the INA to protect U.S. workers. These requirements would have put [Butler Amusements] on notice that all workers within a certification should perform the same labor, under the same conditions, and in the same occupations."
Department of Labor Brief (2021) said: "Respondent's CEO Brajevich admitted ... he had not read—or even looked at—the H-2B regulations prior to this case. ... Such conduct exhibits 'a reckless disregard' for which penalties and disqualification are warranted."
What Happens Next
Butler can appeal to the D.C. Circuit, where the case could test how far Jarkesy extends to immigration and labor disputes. Because the Third Circuit recently took a different approach in an H-2A case, a circuit split may be developing—raising the odds the Supreme Court will step in. For now, the DOL retains authority to enforce H-2B rules through its judges, and employers should expect continued scrutiny.
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