Company sues Labor for barring it from hiring alien workers

A corporation and an employee have filed a court action against the Department of Labor for permanently barring the company from employing alien workers.

PRFC Corp. and its employee, Normita E. Faura, asked the Superior Court to review the Labor’s administrative hearing officer’s order as well as the Labor Secretary’s decision in their case.

PRFC Corp. and Faura, through the O’Connor law firm, argued that the Labor Hearing Office’s decision as well as the Labor Secretary’s ruling was “erroneous, arbitrary, and an abuse of discretion.”

The petitioners asked the court to reverse and set aside the orders of the Labor Secretary and the Labor Hearing Office.

PRFC asked the court to authorize PRFC to employ Faura and other foreign national workers. The company also moved to stay the order of the Labor Secretary pending final disposition of its court action.

According to the petition, PRFC’s application to employ Faura pursuant to foreign national worker entry permit was denied by the Labor Hearing Office in an administrative order dated Oct. 17, 2008.

The Hearing Office also ordered PRFC to cease operating its business, and permanently barred it from employing alien workers.

PRFC and Faura appealed to the Labor Secretary. The Secretary reversed the Hearing Office’s order to cease doing business, but ordered the company to pay a $1,000 sanction.

Administrative hearing officer Jerry Cody had determined that the PRFC Store in Kannat Tabla is being operated by Faura, who is not authorized as a foreign national worker to hold a financial ownership.

Labor Secretary Gil M. San Nicolas noted in his decision that Cody, after considering sworn testimony at a hearing, including that of the foreign worker, concluded that Faura has a financial interest in and operated the business.

“Corporate formalities, as evidenced in annual reports, cannot trump the facts on the ground,” San Nicolas said.

San Nicolas said an employer is also at risk of debarment in any Labor proceeding and is on notice to that effect.

‘On the cease order issue, the Secretary said a hearing officer may stop illegal conduct with a cease and desist order. However, he said, there may be a question as to the necessary predicate for that sanction.
San Nicolas said that, based on the record, the imposition of a fine is authorized and appropriate in this case.