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

Articles Posted in Labor & Employment Law
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Plaintiff challenged the constitutionality of Texas Government Code Section 808. He contends that Section 808’s divestment requirement violates the First Amendment and the Due Process Clause. The district court concluded that Plaintiff lacked standing and dismissed his claims against the Texas Comptroller and the Texas Attorney General (collectively, “Defendants”).   The Fifth Circuit affirmed. The court wrote it agreed with the district court that Plaintiff lacks standing to pursue his claims. Article III grants jurisdiction to federal courts only over actions involving an “actual case or controversy.” The court concluded that Plaintiff’s alleged injury is—at most—speculative; he has wholly failed to allege that any risk of economic harm is “certainly impending.” Because Plaintiff cannot show how any investment or divestment decisions will affect his future payments, he cannot show that he has suffered an injury. Further, the court found that Plaintiff has failed to allege facts demonstrating that Section 808 causes him an injury by violating his own personal Fourteenth or First Amendment rights. View "Abdullah v. Paxton" on Justia Law

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The United Auto Workers union (“UAW”) and three pro-union Tesla employees filed multiple charges with the National Labor Relations Board (“NLRB”) alleging unfair labor practices against Tesla. An Administrative Law Judge (“ALJ”) found that Tesla had committed most of the alleged violations, and the NLRB issued an order largely affirming the ALJ. Both Tesla and the UAW filed petitions for review, and the NLRB filed a cross-application to enforce its order. Tesla and the UAW each challenged two of the NLRB’s findings through this appeal.   The Fifth Circuit denied the petitions for review. The court held that the NLRB’s findings were supported by substantial evidence, and it did not abuse its broad remedial discretion in declining to issue a notice-reading remedy. The court explained that the UAW cited no authority mandating a notice reading to remedy repeated violations in the absence of intervening cease-and-desist orders. And, as Tesla emphasizes, the company at most continued to commit violations after having a complaint filed against it, not after being ordered to cease its conduct. Moreover, given the deferential standard of review and the “special respect” given to the NLRB’s choice of remedy in light of its policy expertise and its broad, discretionary remedial powers, the court declined to disturb the NLRB’s order in this regard. View "Tesla v. NLRB" on Justia Law

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After the EEOC closed its investigation into Plaintiff’s charge of discrimination, the agency issued Plaintiff a right-to-sue notice. This notice, however, only reached Plaintiff’s attorney and not Plaintiff himself. The EEOC then sent a subsequent notice acknowledging that the first had not reached Plaintiff and advising him that his 90-day window in which to file suit began to run upon its—the second notice’s—receipt. Plaintiff filed his complaint 141 days after his attorney is presumed to have received the first notice and 89 days after Plaintiff and his attorney received the second. The district court dismissed Plaintiff’s suit as untimely and held that equitable tolling was unavailable.   The Fifth Circuit vacated the district court’s order dismissing Plaintiff’s complaint. The court explained that Plaintiff’s case did not present the kind of exceptional circumstances that may warrant equitable tolling; the district court failed to consider controlling precedent from this court that tolling may be available when the EEOC affirmatively misleads a claimant about the time in which he must file his federal complaint. The court wrote that this was an abuse of discretion. Further, the court found that the district court did not proceed beyond this first prong of the tolling analysis the record at this motion to dismiss stage does not disclose whether Plaintiff diligently pursued his rights. View "Bernstein v. Maximus Federal Services" on Justia Law

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Plaintiff was employed by Defendant for three years between 2017 and 2020. Initially, he was paid hourly and received overtime compensation, but in March 2018, despite no change in job responsibilities, Defendant converted him to a salaried position. In March 2020, Plaintiff gave his two-week notice to Defendant that he would be resigning. Three days later, Defendant terminated him.Plaintiff sued, claiming that Defendant failed to pay him overtime compensation in violation of the FLSA, 29 U.S.C. Sec. 207(a). Defendant sought summary judgment, claiming Plaintiff was exempt from overtime compensation requirements under the Motor Carrier Act exemption as a “mechanic.” The district court agreed, granting summary judgment in Defendant's favor. Plaintiff appealed.Generally, the FLSA requires an employer to pay overtime compensation to any employee working more than forty hours in a workweek. However, as relevant here, under the MCA exemption, the overtime compensation requirement does not apply if “the Secretary of Transportation has [the] power to establish qualifications and maximum hours of service” for the employee. The Fifth Circuit affirmed, finding that the Motor Carrier Act exemption applied due to Plaintiff's position as a mechanic. View "Cunningham v. Circle 8 Crane Services" on Justia Law

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Plaintiff brought claims of age discrimination and retaliation against her former employer, the United States Postal Service (“USPS”). The district court granted summary judgment to USPS on all of Plaintiff’s claims. Plaintiff appealed.   The Fifth Circuit affirmed in part and reversed in part. The court reversed summary judgment on Plaintiff’s age discrimination and retaliation claims arising out of her February 26, 2019 termination from USPS Central Station, as well as her retaliation claim arising out of the May 2019 recission of her job offer at the Metairie USPS station. The court affirmed dismissal of all other claims.   The court concluded, in assessing Plaintiff’s age-discrimination claim, that Plaintiff’s evidence creates a fact issue as to whether USPS’s proffered reason for her termination is pretextual. Specifically, Plaintiff has submitted evidence that her supervisors set her up for failure by obstructing her efforts to succeed at her job, including by hiding her mail, making her clock into street time when she was, in fact, in the office, and denying her the tools necessary for her deliveries. Moreover, Plaintiff has submitted evidence that USPS did not document the performance deficiencies it relies on as the basis for Plaintiff’s termination. And again, the circumstances of the station manager’s “hiring” of Plaintiff render inappropriate the “same actor” inference. A reasonable jury could find, based on this evidence, that USPS’s reason for terminating Plaintiff was pretext for retaliation based on her EEO activity directed against the USPS. View "Allen v. USPS" on Justia Law

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The Equal Employment Opportunity Commission (EEOC) sued Methodist Hospitals of Dallas (Methodist) for allegedly violating the Americans with Disabilities Act (ADA). The EEOC asserts that Methodist’s categorical policy of hiring the most qualified candidate violates the ADA when a qualified disabled employee requests reassignment to a vacant role, even if he or she is not the most qualified applicant. The EEOC also alleged that Methodist failed to reasonably accommodate a disabled employee, who was not reassigned to a vacant position for which she applied. The district court granted Methodist’s motion for summary judgment on both claims. The EEOC appealed, arguing that the Supreme Court’s ruling in US Airways, Inc. v. Barnett requires Methodist to make exceptions to its most-qualified-applicant policy and that the employee was entitled to a reasonable accommodation under the ADA.   The Fifth Circuit vacated the judgment of the district court as to Methodist’s most-qualified-applicant policy and remand for further proceedings consistent with this opinion. The court affirmed the judgment as to the EEOC’s reasonable accommodations claim involving the employee. The court explained that at summary judgment, an employee’s “unilateral withdrawal from the interactive process is fatal to her claim,” so long as the employer “engaged in a good-faith, interactive process with the employee regarding her request for a reasonable accommodation.” Based on the evidence, no reasonable jury could find that Methodist was unwilling to participate in the interactive process. When the employee did not respond to either the August 7th letter or the follow-up letter after her appeal of her termination, she caused the breakdown of the interactive process. Thus, Methodist did not act unlawfully. View "EEOC v. Methodist Hospitals" on Justia Law

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Plaintiff is a former federal employee and participant in a health-insurance plan (“Plan”) that is governed by the Federal Employees Health Benefits Act (“FEHBA”). The Plan stems from a contract between the federal Office of Personnel Management (“OPM”) and Blue Cross Blue Shield Association and certain of its affiliates (together, “Blue Cross”). Blue Cross administers the Plan under OPM’s supervision. Plaintiff suffered from cancer, and she asked Blue Cross whether the Plan would cover the proton therapy that her physicians recommended. Blue Cross told her the Plan did not cover that treatment. So Plaintiff chose to receive a different type of radiation treatment, one that the Plan did cover. The second-choice treatment eliminated cancer, but it also caused devastating side effects. Plaintiff then sued OPM and Blue Cross, claiming that the Plan actually does cover proton therapy. As against OPM, she seeks the “benefits” that she wanted but did not receive, as well as an injunction directing OPM to compel Blue Cross to reform its internal processes by, among other things, covering proton therapy in the Plan going forward. As against Blue Cross, she seeks monetary damages under Texas common law. The district court dismissed Plaintiff’s suit.   The Fifth Circuit affirmed. The court held that neither the advance process nor the proton-therapy guideline poses an immediate threat of injury, so injunctive relief is therefore unavailable. Further, the court found that FEHBA preempts Plaintiff’s common-law claims against Blue Cross. Accordingly, the court held that no relief is available under the relevant statutory and regulatory regime. View "Gonzalez v. Blue Cross Blue Shield" on Justia Law

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After prevailing in state court on claims that he was fired in retaliation for exercising his state constitutional right to freedom of expression, Plaintiff filed a federal suit alleging the same set of facts but asserting for the first time a First Amendment claim. The district court dismissed Plaintiff’s suit, finding that Defendants’ factual attack showed that the only remedy not barred by sovereign immunity was impossible to grant and that Kling’s claim was prescribed. On appeal, Plaintiff contends that a factual attack on a district court’s subject matter jurisdiction is improper at the pleadings stage and that his state lawsuit interrupted prescription on his newly asserted federal claim because both rely on the same set of operative facts.   The Fifth Circuit concluded that the district court did not err in dismissing Plaintiff’s official capacity claims as barred by sovereign immunity and accordingly affirmed that ruling in the district court’s decision. However, because there are no clear controlling precedents from the Louisiana Supreme Court as to whether prescription on Plaintiff’s federal claim was interrupted by his state action, the court certified to that court to answer the following:In Louisiana, under what circumstances, if any, does the commencement of a suit in a court of competent jurisdiction and venue interrupt prescription as to causes of action, understood as legal claims rather than the facts giving rise to them, not asserted in that suit? View "Kling v. Hebert" on Justia Law

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Plaintiff is a black woman who worked for Lincare, Incorporated. She sued her former employer under Title VII, claiming that she suffered from a racially hostile work environment and that Lincare both failed to address the situation and retaliated against her when she complained. She also sued for breach of contract. The district court granted summary judgment in favor of Lincare. On appeal, Plaintiff contended that summary judgment was improper on her Title VII claims for a hostile work environment and unlawful retaliation.   The Fifth Circuit affirmed. The court explained that even assuming that Plaintiff suffered from severe or pervasive harassment, Lincare cannot be liable under Title VII because it took prompt remedial action. Aside from one remark, Plaintiff could not remember any use of the N-word in the office after she made her reports to HR. Nor does she identify a single racially insensitive comment that occurred after the offending parties received final warnings. In short, Lincare “acted swiftly in taking remedial measures, and the harassment ceased.” Because of its prompt and effective response, Lincare cannot be liable under Title VII for creating a hostile work environment.   Further, the court explained, there is no evidence that Plaintiff’s working conditions were impacted, only that the plan opened up the possibility of further action (which never occurred). An employment decision is not an adverse action if it does not objectively worsen the employee’s working conditions. View "Hudson v. Lincare, Inc." on Justia Law

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At its production plant in Baton Rouge, the Exxon Mobil Corporation requires prospective operators to pass an extensive, multi-pronged training program. If they don’t, they’re fired. Plaintiff didn’t pass his tests, so Exxon let him go. Plaintiff then sued Exxon, insisting he wasn’t fairly trained by staff because he’s black. The district court disagreed and dismissed his suit. On appeal, Plaintiff contends that, first, the district court ignored genuine factual disputes and, second, erroneously ruled that he waived his inadequate training theory.   The Fifth Circuit affirmed the district court’s ruling for different reasons. The court explained that Plaintiff cannot rely on an inadequate training theory. Exxon provided Plaintiff with a handbook detailing the polypropylene unit’s processes and equipment, and scheduled time each workweek for him to study. Exxon also assigned him a trainer, an operator with twenty years of experience, who went over the handbook in detail with him. Thus, because his training—and more importantly, his opportunities—paralleled his classmates, his program necessarily couldn’t be inadequate. Without proper training, no terminated trainee is qualified for the position he was training for. Plaintiff satisfied his burden to show he was qualified for the position of operator trainee, the position he was fired from. However, Plaintiff cannot genuinely allege Exxon failed to train him, so he cannot satisfy the McDonnell Douglas framework. View "Rahman v. Exxon Mobil" on Justia Law