Acting Labor Secretary Su Cleared to Sue Coway in Wage Case

Home appliance company Coway USA failed to throw out a Department of Labor lawsuit after a federal judge ruled that Julie Su’s long-term status as acting secretary isn’t an obstacle to bring the case.

Su was confirmed to serve as the Deputy Secretary when Martin Walsh resigned in 2023. She’s authorized by statute to act in his stead until the Senate confirms a replacement, and that authorization is independent of any proposed conflict with the Vacancies Act, the US District Court for the Central District of California ruled Wednesday.

The agency sued Coway earlier this year for allegedly failing to pay overtime premiums and falsifying employment records. Coway sought dismissal arguing that the acting secretary lacked standing to sue and to seek civil money penalties.

Republicans and businesses have raised concerns over whether Su’s inability to get confirmed would bring legal challenges to the department’s work. Some arguments revolved around the Federal Vacancies Reform Act, which sets time limits on how long many executive officials can perform in an acting capacity.

But the law exempts officials expressly given that authority by a statutory provision, like in this case the regulations governing the DOL, Judge Josephine L. Staton said.

“Even if Coway were correct that the Acting Secretary lacks authority to sue,” Staton said, “the Court would not lack subject matter jurisdiction on that basis.”

President-elect Donald Trump tapped US Rep. Lori Chavez-DeRemer (R. Ore.) to lead DOL in his incoming administration.

Barnes & Thornburg LLP represented Coway.

The case is Su v. Coway USA Inc., C.D. Cal., No. 2:24-cv-08156, 12/4/24.