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

The case involves the Restaurant Law Center and the Texas Restaurant Association challenging a final rule by the Department of Labor (DOL) that restricts when employers can claim a "tip credit" for "tipped employees" under the Fair Labor Standards Act (FLSA). The tip credit allows employers to pay tipped employees a lower hourly wage, assuming tips will make up the difference to meet the minimum wage. The DOL's final rule imposes limits on the amount of non-tip-producing work a tipped employee can perform while still allowing the employer to claim the tip credit.The United States District Court for the Western District of Texas initially denied the plaintiffs' motion for a preliminary injunction, stating they would not suffer irreparable harm. The Fifth Circuit Court of Appeals reversed this decision, finding that the plaintiffs had shown irreparable harm and remanded the case for further consideration. On remand, the district court evaluated the merits and granted summary judgment in favor of the DOL, holding that the final rule was a permissible interpretation of the FLSA under Chevron deference and was neither arbitrary nor capricious.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that the final rule was contrary to the clear statutory text of the FLSA and was arbitrary and capricious. The court held that the FLSA's definition of a "tipped employee" does not support the DOL's restrictions on non-tip-producing work. The court concluded that the final rule improperly focused on the pursuit of tips rather than the duties of the occupation itself. Consequently, the Fifth Circuit reversed the district court's summary judgment in favor of the DOL, rendered summary judgment for the plaintiffs, and vacated the final rule. View "Restaurant Law Center v. Department of Labor" on Justia Law

Ryan Haygood, a dentist in Louisiana, faced an investigation by the Louisiana State Board of Dentistry, which led to the revocation of his dental license in 2010. Haygood alleged that competing dentists conspired with Board members to drive him out of business by fabricating complaints and manipulating the Board's proceedings. In 2012, a Louisiana appellate court vacated the Board's revocation of Haygood's license, citing due process violations. Haygood then entered a consent decree with the Board, allowing him to keep his license.Haygood filed a civil action in state court in 2011, alleging due process violations and unfair competition. In 2013, he filed a similar federal lawsuit, claiming violations under 42 U.S.C. § 1983 and the Louisiana Unfair Trade Practices Act (LUTPA). The federal district court dismissed the federal complaint, ruling that the § 1983 claim was time-barred and the LUTPA claim was not plausible. The court also awarded attorney’s fees to the defendants, deeming both claims frivolous.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court affirmed the district court's decision to award attorney’s fees for the frivolous § 1983 claim, agreeing that it was clearly time-barred. However, the appellate court found that the district court erred in calculating the fee amount. The district court had properly calculated $98,666.50 for the defendants' private attorneys but improperly awarded $11,594.66 for the Louisiana Attorney General’s office without using the lodestar method. Consequently, the Fifth Circuit remitted the fee award to $98,666.50 while affirming the decision to award fees. View "Haygood v. Morrison" on Justia Law

Robert Anthony Zaragoza, a former brakeman and train conductor for Union Pacific Railroad Company, was terminated in 2015 after testing positive for cocaine but was later reinstated. In 2016, he failed a color vision test and subsequent retests, leading to his removal from service and denial of recertification as a conductor. Zaragoza contested these results, submitting medical reports attesting to his adequate color vision, but was not reinstated.Zaragoza argued that his claims were tolled from 2016 to 2020 due to his inclusion in a class action against Union Pacific, Harris v. Union Pacific Railroad Co. The district court for the Western District of Texas dismissed his claims as untimely, finding that the tolling ended with the class certification order in February 2019, and the statute of limitations expired before Zaragoza filed his EEOC charge in March 2020.The United States Court of Appeals for the Fifth Circuit reviewed the case and determined that Zaragoza was included in both the putative and certified class definitions in the Harris class action. The court held that the statute of limitations for Zaragoza's claims was tolled during the pendency of the Harris class action, from the time his claims accrued until the Eighth Circuit decertified the class in March 2020. Consequently, Zaragoza's claims were timely when he filed his EEOC charge.The Fifth Circuit reversed the district court's dismissal of Zaragoza's disability discrimination claims and remanded the case for further proceedings, declining to address Union Pacific's alternate grounds for summary judgment. View "Zaragoza v. Union Pacific Railroad" on Justia Law

The plaintiffs, former employees of Alpine Site Services, Inc., filed a lawsuit alleging that the company violated the Fair Labor Standards Act (FLSA) by failing to pay them the required overtime wages. Alpine contended that the Motor Carrier Act (MCA) exemption applied, which would exempt them from paying overtime. The plaintiffs argued that they were not properly classified under the MCA exemption.The United States District Court for the Southern District of Texas reviewed the case and agreed with Alpine, finding that the plaintiffs were classified as "loaders" under the MCA exemption. The court found that the plaintiffs' job duties included loading vehicles, which directly affected the safety of operation of motor vehicles in interstate commerce. The district court dismissed the suit with prejudice, concluding that the plaintiffs fell under the MCA exemption and were not entitled to overtime pay.The United States Court of Appeals for the Fifth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that the district court did not err in classifying the plaintiffs as "loaders" under the MCA exemption. The court noted that the plaintiffs' duties included loading vehicles, which required the exercise of judgment and discretion, and that this work directly affected the safety of operation of motor vehicles. The court also found that the plaintiffs regularly engaged in loading activities, which constituted a substantial part of their job responsibilities. The appellate court concluded that the MCA exemption applied to the plaintiffs in all workweeks, even those in which they performed only non-safety-affecting duties. The court also dismissed the plaintiffs' claim that the district court abused its discretion in denying their motion to amend the court's factual findings, as the plaintiffs failed to provide meaningful analysis or supporting authority for this argument. The decision of the district court was affirmed. View "Kelley v. Alpine Site Services" on Justia Law

Christy Bunker sued Dow Chemical Company in Texas state court, alleging age discrimination and retaliation. Dow removed the case to federal court and filed a motion to dismiss, arguing that Bunker failed to exhaust her administrative remedies before filing suit. The district court granted Dow’s motion, finding that Bunker did not properly request that the Equal Employment Opportunity Commission (EEOC) file her charge with the appropriate state agency, the Texas Workforce Commission (TWC).The United States District Court for the Southern District of Texas dismissed Bunker’s claims under Federal Rule of Civil Procedure 12(b)(6). The court found that Bunker had filed a charge with the EEOC but did not indicate that the charge should also be filed with the TWC. Consequently, the court held that Bunker failed to exhaust her administrative remedies as required under the Texas Commission on Human Rights Act (TCHRA).The United States Court of Appeals for the Fifth Circuit reviewed the district court’s decision de novo. The appellate court affirmed the district court’s ruling, holding that Bunker’s failure to indicate on her EEOC charge that it should be filed with the TWC meant she did not meet the TCHRA’s filing requirements. The court noted that both Texas state and federal courts have consistently held that a charge filed with the EEOC must at least indicate that it is to be filed with the TWC to satisfy the TCHRA’s requirements. Therefore, Bunker’s claims were rightfully dismissed with prejudice for failing to exhaust her administrative remedies. View "Bunker v. Dow Chemical" on Justia Law

The case involves tanker-truck drivers employed by Ace Gathering, Inc., who transport crude oil solely within Texas. The drivers, known as Crude Haulers, collect crude oil from oil fields and deliver it to pipeline injection points. Although their routes are entirely within Texas, a significant portion of the crude oil they transport is ultimately destined for out-of-state refineries or export markets. The drivers claim they worked over forty hours a week without receiving overtime pay, alleging they were misclassified as exempt from the Fair Labor Standards Act (FLSA) overtime provisions.The United States District Court for the Southern District of Texas initially denied Ace's motion for summary judgment, which argued that the Motor Carrier Act (MCA) exempted the Crude Haulers from FLSA overtime pay. The district court found that Ace had no vested interest in the crude oil once it crossed state lines and that the volunteer-based interstate driving assignments created a genuine dispute of material fact regarding the drivers' reasonable expectation of interstate travel. Upon reconsideration, the district court certified three questions for interlocutory appellate review.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court held that the Crude Haulers' transportation of crude oil within Texas constitutes transportation in "interstate or foreign commerce" under the MCA because the oil is ultimately bound for out-of-state destinations. The court noted that the intrastate transport of goods destined for out-of-state locations falls under the MCA's definition of interstate commerce. Consequently, the court reversed the district court's denial of summary judgment and remanded the case with instructions to dismiss the plaintiffs' claims with prejudice. View "Escobedo v. Ace Gathering" on Justia Law

Karl Von Derhaar, an employee at the New Orleans Crime Lab, raised concerns about safety breaches and inaccuracies in a drug-testing method. Instead of addressing these concerns, the Lab mandated that all employees, including Von Derhaar, be tested using the disputed method. Von Derhaar requested unpaid leave, and his supervisor, Sergeant Michael Stalbert, attempted to contact him at home. After initially going to the wrong apartment, Stalbert returned with two armed officers. Von Derhaar, standing in his doorway, declined to speak with Stalbert, who then forcibly entered the apartment, claiming it was a wellness check. Despite no visible signs of distress, Stalbert ordered Von Derhaar out of his home, where another supervisor, Lieutenant Kim Williams, awaited. Von Derhaar was then taken to the Police Integrity Bureau (PIB) headquarters against his will.The United States District Court for the Eastern District of Louisiana reviewed the case. The court granted summary judgment to the City of New Orleans and its police superintendent on all claims, finding no municipal liability. On the search claim, the court granted summary judgment to Williams and Officer Khalid Watson but denied it to Stalbert. On the seizure claim, the court denied summary judgment to Stalbert, Williams, and Khalid Watson. These decisions led to the current appeals and cross-appeals.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court dismissed the appeals regarding the denial of summary judgment to Stalbert on punitive damages, the summary judgment to Khalid Watson on the search claim, and the summary judgment to the City and superintendent. The court affirmed the denial of summary judgment to Stalbert on the search and seizure claims, finding material fact disputes. However, it reversed the denial of summary judgment to Williams and Khalid Watson on the seizure claim, concluding that they acted under orders and did not violate clearly established law. The case was remanded for further proceedings. View "Von Derhaar v. Watson" on Justia Law

The case involves a dispute between the law firm Abraham Watkins Nichols Agosto Aziz & Stogner and its former associate, Edward Festeryga. Abraham Watkins terminated Festeryga’s employment after discovering that he attempted to take clients and firm files to a new firm. Abraham Watkins sued Festeryga in Texas state court for conversion, breach of fiduciary duty, and tortious interference with contract. Festeryga moved to dismiss the suit under Texas’s anti-SLAPP statute, the Texas Citizens Participation Act (TCPA), which stayed the expedited discovery sought by Abraham Watkins. Despite agreeing to produce certain documents, Festeryga filed a notice of removal to federal court, claiming diversity jurisdiction as a Canadian citizen.The United States District Court for the Southern District of Texas remanded the case back to state court. The district court did not address whether Festeryga had shown diversity of citizenship but concluded that Festeryga waived his right to remove by participating in state court proceedings, specifically by filing a TCPA motion to dismiss. The district court found that this action demonstrated an intent to invoke the jurisdiction of the state court.The United States Court of Appeals for the Fifth Circuit reviewed the case to determine if it had appellate jurisdiction over the remand order. The court concluded that it did not have jurisdiction, citing its precedent in In re Weaver, which held that waiver-based remand orders are jurisdictional under 28 U.S.C. § 1447(c) and thus unappealable under § 1447(d). The court noted that although it disagreed with the reasoning in Weaver, it was bound by the rule of orderliness to follow the precedent. Consequently, the Fifth Circuit dismissed the appeal for lack of appellate jurisdiction. View "Abraham Watkins Nichols Agosto Aziz & Stogner v. Festeryga" on Justia Law

A group of plaintiffs, including several states and corporations, challenged a Department of Labor rule that allowed ERISA fiduciaries to consider environmental, social, and governance (ESG) factors when making investment decisions if those factors equally serve the financial interests of the plan. This rule was issued following an executive order by President Biden, which counteracted a previous Trump-era rule that prohibited considering non-pecuniary factors in investment decisions.The United States District Court for the Northern District of Texas upheld the Department of Labor's rule, relying on the Chevron deference doctrine, which allows courts to defer to a federal agency's interpretation of ambiguous statutory language. The district court concluded that the rule was not "manifestly contrary to the statute" after affording the Department the deference due under Chevron.The United States Court of Appeals for the Fifth Circuit reviewed the case. During the appeal, the Supreme Court decided Loper Bright Enterprises v. Raimondo, which overruled Chevron, thus eliminating the deference previously given to agency interpretations. Given this significant change in the legal landscape, the Fifth Circuit vacated the district court's judgment and remanded the case for reconsideration in light of the new Supreme Court decision. The appellate court emphasized the importance of allowing the district court to reassess the merits without the Chevron framework, ensuring that the lower court's independent judgment is applied to the statutory interpretation of ERISA. View "State of Utah v. Su" on Justia Law

Dean Dabbasi was terminated by his employer, Motiva Enterprises, in 2019. Dabbasi filed a lawsuit alleging age discrimination under the Age Discrimination in Employment Act (ADEA) and the Texas Commission on Human Rights Act (TCHRA), as well as disability discrimination under the Americans with Disabilities Act (ADA) and the TCHRA. He claimed that his termination was due to his age and a cardiac incident he experienced during a performance improvement plan (PIP) meeting. Motiva argued that Dabbasi was terminated for poor performance and attitude.The United States District Court for the Southern District of Texas granted summary judgment in favor of Motiva. The court found that Dabbasi's claims related to his transition to a different role and the failure to place him in a promised position were time-barred or not actionable. The court also held that Dabbasi failed to establish a prima facie case of age discrimination because he was not replaced by someone younger in his final position. Additionally, the court concluded that Dabbasi was not disabled at the time of his termination, as he returned to work without restrictions after his medical leave.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in evaluating Dabbasi's age-discrimination claim in isolation rather than considering the totality of the evidence. The appellate court determined that there was sufficient circumstantial evidence to create a genuine dispute of material fact regarding whether Dabbasi was terminated because of his age. However, the court agreed with the district court that Dabbasi failed to establish a prima facie case of disability discrimination, as he was not disabled at the time of his termination.The Fifth Circuit affirmed the dismissal of Dabbasi's disability-discrimination claim but reversed the summary judgment on his age-discrimination claim, remanding it for further proceedings. View "Dabbasi v. Motiva Enterprises" on Justia Law