Justia U.S. 5th Circuit Court of Appeals Opinion Summaries

Articles Posted in Labor & Employment Law
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The Fifth Circuit joined the Fourth Circuit in holding that the Fair Labor Standards Act preempts redundant state law tort claims for unpaid minimum wages and overtime compensation when the state's law does not provide for minimum wages and overtime compensation. In this case, Mississippi does not have state labor laws governing minimum wage or overtime, so it would be impossible for Employees to state a claim for wage and hour violations under state law independent of the FLSA. Furthermore, it would be impossible for Employees to state a claim under the FLSA because sovereign immunity bars suit against the DOC. The court explained that the state law claims based on violations of the FLSA similarly fail because of preemption. Therefore, the court concluded that dismissal with prejudice was appropriate. The court affirmed all dispositions of the district court. View "Aldridge v. Mississippi Department of Corrections" on Justia Law

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Plaintiff filed suit against her former employer, Union Pacific, alleging that Union Pacific violated Title VII of the Civil Rights Act of 1964 by suspending her, and later terminating her, in retaliation for her 2016 lawsuit against the company and her 2018 internal complaint. Plaintiff also alleged that Union Pacific violated the Railway Labor Act (RLA) and the Texas Labor Code (TLC) by retaliating against her because of her requests for union representation. The district court granted Union Pacific's motion to dismiss.The Fifth Circuit reversed the district court's Federal Rule of Civil Procedure 12(b)(6) dismissal of plaintiff's Title VII claim, concluding that she plausibly alleged a causal link between her 2018 internal EEO complaint and her subsequent suspension and termination. However, the court concluded that the district court properly dismissed the RLA claim for lack of jurisdiction, and that plaintiff's RLA claim is preempted by plaintiff's TLC claim. The court affirmed the district court's dismissal of plaintiff's remaining claims. View "Wright v. Union Pacific Railroad Co." on Justia Law

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The Fifth Circuit affirmed the district court's judgment in favor of Exeter and Exeter's parent company, Enzo, in an action brought by plaintiff, a former employee, for breach of contract, fraud, and quantum meruit. The court concluded that the district court did not abuse its discretion in denying a continuance and plaintiff abandoned his remaining arguments challenging the exclusion of his evidence.The court also concluded that the district court correctly concluded that plaintiff's contract claim, based on the Profits Interest Units Agreement, failed as a matter of law; the district court correctly concluded that, absent evidence of a valid severance agreement, plaintiff's breach of contract claim fails as a matter of law; the district court properly adjudicated plaintiff's fraud claims as a matter of law; and the district court correctly determined that plaintiff's conduct in connection with the transactions before the district court was inequitable, precluding any equitable remedy.The court noted that three-quarters of the record in this case was sealed from the public and that the public's right of access to judicial proceedings is fundamental. The court urged litigants and the court's judicial colleagues to zealously guard the public's right of access to judicial records. View "Binh Hoa Le v. Exeter Finance Corp." on Justia Law

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After BNSF terminated plaintiff based on violation of company attendance guidelines, plaintiff filed suit alleging that BNSF failed to provide reasonable accommodations for his disability. Plaintiff, who is an epileptic, worked as a train dispatcher for BNSF.The Fifth Circuit affirmed the district court's grant of summary judgment for BNSF, holding plaintiff failed to show that he was a "qualified individual" for either of his failure-to-accommodate claims. In this case, plaintiff failed to show that he could perform the essential functions of his job in spite of his disability or that a reasonable accommodation of his disability would have enabled him to perform the essential functions of the job. View "Weber v. BNSF Railway Co." on Justia Law

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After plaintiff prevailed on her procedural due process and breach of contract claims against TSC, the trial court vacated the jury's verdict on the breach of contract claims and reduced the damages award on her procedural due process claim to $1.The Fifth Circuit held that TSC is entitled to neither sovereign immunity under the United States Constitution nor governmental immunity under state law. In this case, the Texas Legislature abrogated TSC's governmental immunity such that plaintiff could bring state law breach of contract claims against TSC. Therefore, the argument that the Texas Legislature attempted to limit federal jurisdiction over these claims is unavailing. The court also held that it was not required to address TSC's alternative arguments and declined to do so. The court reversed the dismissal of plaintiff's breach of contract claims, reinstated the jury's verdict on those claims, and remanded for the district court to consider TSC's alternative arguments regarding whether sufficient evidence supports plaintiff's breach of contract claims. The court affirmed the district court's grant of judgment as a matter of law on the due process violation damages and reduction of the jury's award of $12,500,000 to the nominal amount of $1. The court reversed the district court's vacatur of the portion of the attorneys' fees award based on the breach of contract claims and remanded for the district court to address TSC's alternative arguments regarding those claims and to determine whether plaintiff is entitled to attorneys' fees and in what amount. View "Tercero v. Texas Southmost College District" on Justia Law

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Plaintiff filed a collective action on behalf of himself and others employed on All Coast's fleet of liftboats, alleging that, although they were hired for various maritime jobs, they spent most of their time doing something completely terrestrial: using cranes attached to the boats to move their customers' equipment on and off the boats, the docks, and the offshore oil rigs. All Coast classified plaintiffs as seamen and did not pay them overtime pursuant to the Fair Labor Standards Act (FLSA).The Fifth Circuit reversed the district court's grant of summary judgment in favor of All Coast. The court held that the district court's conclusion that the employees' work served the liftboats' operation "as a means of transportation" runs contrary to the regulatory language and the court's precedent interpreting it. Rather, the plain meaning of 29 C.F.R. 783.31, and the illustrative examples in sections 783.32 and 783.34, suggest the employees were not engaged in seamen's work when operating the cranes. Furthermore, the court's previous decision in Coffin v. Blessey Marine Servs., Inc., 771 F.3d 276, 279 (5th Cir. 2014), only reinforce that conclusion. In this case, plaintiffs were not doing seamen's work when they were operating the cranes. Finally, it follows that All Coast was not entitled to summary judgment as to the cooks either. View "Adams v. All Coast, LLC" on Justia Law

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In Anderson v. Mt. Clemens Pottery Company, if the employer's records are inaccurate or inadequate, a plaintiff need only show by just and reasonable inference that she was an employee, worked the hours, and was not paid. In this unpaid-overtime case, the district court applied Mt. Clemens because Five Star's timesheets left numerous evidentiary gaps which the Department of Labor filled with consistent testimony that Five Star urged employees not to record their pre- and post-shift work hours. The Department then used this testimony to estimate unpaid hours and calculate back wages.The Fifth Circuit affirmed the district court's judgment, holding that Five Star's only rebuttal evidence of a summary chart based on the company president's memory failed to negate any raised inferences of unpaid work. Therefore, Five Star fails to show that the district court committed any error concerning its finding of liability or calculation of damages under the Fair Labor Standards Act. View "United States Department of Labor v. Five Star Automatic Fire Protection, LLC" on Justia Law

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The Fifth Circuit affirmed the district court's dismissal of plaintiff's claims against the University as barred by sovereign immunity. Plaintiff's action involved employment discrimination and retaliation claims, and he sought compensatory damages, punitive damages, and attorney's fees. The court held that Texas A&M is an agency of the State of Texas, so a suit against the former is a suit against the latter. Furthermore, neither of the two exceptions to sovereign immunity apply in these circumstances. In this case, Congress did not abrogate the State's sovereign immunity, and the State did not knowingly and plainly waive its sovereign immunity and consent to suit. View "Sullivan v. Texas A&M University System" on Justia Law

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Plaintiffs filed a collective action under the Fair Labor Standards Act (FLSA) against KLLM over a minimum wage labor dispute. The district court granted plaintiffs' certification request, applying the widely used Lusardi test, a two-step method for certifying a collective.The Fifth Circuit declined to delineate the district court's notice-sending discretion under the Lusardi test, rejecting Lusardi's two-step certification rubric. The court explained that Lusardi has no anchor in the FLSA's text or in Supreme Court precedent interpreting it. The court noted that the word "certification," much less "conditional certification," appears nowhere in the FLSA. Instead, the court embraced interpretive first principles: (1) the FLSA's text, specifically section 216(b), which declares (but does not define) that only those "similarly situated" may proceed as a collective; and (2) the Supreme Court's admonition that while a district court may "facilitat[e] notice to potential plaintiffs" for case-management purposes, it cannot signal approval of the merits or otherwise stir up litigation. The court concluded that these are the only binding commands on district courts. Accordingly, the court vacated the district court's grant of conditional certification and remanded for further proceedings. View "Swales v. KLLM Transport Services, LLC" on Justia Law

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The Fifth Circuit denied a petition for review of the BIA's order finding that the employer violated the National Labor Relations Act (NLRA) by firing an employee for engaging in activities protected under the Act.The court held that the Board is entitled to summary enforcement of its order remedying the employer's Section 8(a)(1) violation with respect to the no-solicitation rule. The court also held that the employer waived issues related to the employee's engagement in protected activities and the Board's finding that management had knowledge of the employee's protected conduct. The court concluded that substantial evidence supports the Board's finding of animus, and substantial evidence supports the Board's finding that the employer's purported reasons for firing the employee were pretextual. Therefore, the employer has failed to establish that it would have fired the employee absent his engagement in protected conduct. Finally, the court upheld the Board's order directing the employer to offer the employee full reinstatement and backpay. View "Cordua Restaurants, Inc. v. National Labor Relations Board" on Justia Law