The U.S. Court of Appeals for the Fifth Circuit has ruled that the Labor Department acted in bad faith when investigating an oil and gas servicing company for allegedly owing backpay to independent contractors, The Houston Chronicle's L.M. Sixel reports. As a result, Gate Guard Services will get more money from the government to pay its legal expenses.
Legal observers told Sixel the case will make it easier for others to bring bad-faith claims against the government.
The lead Department of Labor investigator destroyed evidence and demanded a multimillion-dollar penalty. A district judge ultimately ruled that the workers are independent contractors, not employees.
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