Bradford v. U.S. Department of Labor, No. 22-1023 (10th Cir. 2024)
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The case involves Duke Bradford, Arkansas Valley Adventure (AVA), and the Colorado River Outfitters Association (CROA) who appealed against the District of Colorado’s order denying their motion to preliminarily enjoin a Department of Labor (DOL) rule. The rule required federal contractors to pay their employees a $15.00 minimum hourly wage. The DOL promulgated the rule pursuant to a directive in Executive Order (EO) 14,026, issued by President Biden. The EO imposed the minimum wage requirement on most federal contractors and rescinded an exemption for recreational services outfitters operating on federal lands.
The appellants argued that the district court erred in concluding that the Federal Property and Administrative Services Act (FPASA) authorizes the minimum wage rule as applied to recreational services permittees because the government does not procure any services from them or supply anything to them. They also argued that the DOL acted arbitrarily and capriciously in promulgating the minimum wage rule without exempting recreational service permittees.
The United States Court of Appeals for the Tenth Circuit affirmed the district court's decision. The court concluded that the appellants have not shown a substantial likelihood of success on the merits that the DOL’s rule was issued without statutory authority. The court held that FPASA likely authorizes the minimum wage rule because the DOL’s rule permissibly regulates the supply of nonpersonal services and advances the statutory objectives of economy and efficiency. The court also held that the appellants have not shown a substantial likelihood of success on the merits that the DOL’s rule is arbitrary and capricious.
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