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

Commercial fishers challenged the constitutionality of the Gulf of Mexico Fishery Management Council's actions, specifically targeting the approval and implementation of Amendment 54, which significantly reduced the greater amberjack catch limit. The plaintiffs argued that the Council members were improperly appointed under the Appointments Clause of the U.S. Constitution and were unconstitutionally insulated from removal. They sought a declaratory judgment and an injunction to set aside the Final Rule implementing the catch limit and to prevent further development of annual catch limits for the greater amberjack fishery.The United States District Court for the Southern District of Mississippi consolidated the cases and granted summary judgment to the government. The court found that six of the Council’s seventeen members were improperly appointed as inferior officers. However, it concluded that the plaintiffs were not entitled to relief because the constitutional violation was not the proximate cause of their injuries. The decision to implement Amendment 54 was made by the NMFS Assistant Administrator, not the Council. Additionally, the court noted that the remaining eleven Council members were properly appointed and constituted a quorum.The United States Court of Appeals for the Fifth Circuit reviewed the case and remanded it to the district court. The appellate court instructed the lower court to determine whether it had jurisdiction to consider the plaintiffs' request to declare Amendment 54 void and to enjoin the Council from developing further catch limits. The district court was also directed to address whether the NMFS Assistant Administrator’s review and approval of the Final Rule functioned as a ratification of the Council’s actions. The appellate court emphasized the need for a thorough district court analysis of the ratification issue before addressing the validity of the Council members' appointments and the plaintiffs' entitlement to relief. View "Arnesen v. Raimondo" on Justia Law

Jonathan Mullane, a law student intern at the United States Department of Justice (DOJ) in 2018, was terminated from his position due to ex parte communications with a law clerk regarding a pro se case he had filed. Subsequently, the United States Securities and Exchange Commission (SEC) rescinded an internship offer to him. Mullane requested documents related to his termination from both the DOJ and SEC under the Freedom of Information Act (FOIA) and the Privacy Act. He claimed that the agencies did not conduct adequate searches and improperly withheld documents. The agencies moved for summary judgment, and the district court granted their motions in full.The United States District Court for the District of Massachusetts granted summary judgment in favor of the DOJ and SEC, dismissing Mullane's claims. Mullane appealed the district court's decision regarding the DOJ, arguing that the DOJ's search for documents was inadequate and that the district court erred in holding that the Privacy Act imposes a jurisdictional exhaustion requirement. Mullane also challenged the district court's denial of his requests for pre-dismissal discovery.The United States Court of Appeals for the First Circuit reviewed the case. The court held that the DOJ conducted an adequate search for documents under FOIA, as the search was reasonably calculated to discover the requested documents. The court also found that Mullane had waived any argument against the district court's conclusion that the Privacy Act's exhaustion requirements are jurisdictional. Consequently, the First Circuit affirmed the district court's grant of summary judgment in favor of the DOJ, dismissing Mullane's FOIA and Privacy Act claims. View "Mullane v. Department of Justice" on Justia Law

The case involves a dispute over the distribution of compensation following an eminent domain action by the Department of Transportation (DOT) against Bloomsbury Estates, LLC (the Developer) and Bloomsbury Estates Condominium Homeowners Association, Inc. (the Association). The DOT took a portion of the property, which included development rights held by the Developer under a condominium declaration. The Developer and the Association disagreed on how to apportion the compensation for the taking.In the Superior Court of Wake County, the trial court granted summary judgment in favor of the Developer, distributing the majority of the compensation to the Developer based on the valuation of development rights. The Association argued that unresolved issues in separate litigation regarding the validity of the development rights should affect the distribution. The trial court, however, concluded that the validity of the development rights had been settled in a separate action and was not subject to relitigation in the eminent domain proceeding.The North Carolina Court of Appeals reversed the trial court's decision, holding that the unresolved issues in the separate litigation were material to the distribution of the compensation and that a jury should determine the credibility of the appraisers' valuations.The Supreme Court of North Carolina reviewed the case and held that the trial court did not err in granting summary judgment. The Supreme Court concluded that all issues related to the title and interests in the property had been resolved in the N.C.G.S. § 136-108 hearing, and the trial court properly used the appraisals to determine the distribution of the compensation. The Supreme Court reversed the Court of Appeals' decision, affirming the trial court's distribution of the compensation. View "Department of Transportation v. Bloomsbury Estates, LLC" on Justia Law

In the early days of the COVID-19 pandemic, Governor Roy Cooper of North Carolina issued an executive order limiting attendance at outdoor venues to twenty-five people. Robert Turner, who operated Ace Speedway in Alamance County, publicly opposed these restrictions and kept the racetrack open. This led to a series of events where Governor Cooper allegedly pressured local officials to enforce the order against Ace Speedway, culminating in the North Carolina Department of Health and Human Services (DHHS) issuing an abatement order to shut down the racetrack as a health hazard.The Superior Court of Alamance County initially issued a preliminary injunction against Ace Speedway, prohibiting it from holding events until it complied with the abatement order. Ace Speedway and its operators counterclaimed, alleging constitutional violations, including the right to earn a living and selective enforcement. The trial court denied the State’s motion to dismiss these counterclaims, and the State appealed. The North Carolina Court of Appeals affirmed the trial court’s decision, allowing the case to proceed.The Supreme Court of North Carolina reviewed the case and affirmed the Court of Appeals' decision. The Court held that Ace Speedway sufficiently alleged colorable claims under the North Carolina Constitution. The allegations suggested that the State's actions were not for a proper governmental purpose but to retaliate against Turner for his public criticism, thus violating the right to earn a living. Additionally, the selective enforcement claim was deemed colorable because Ace Speedway alleged it was targeted while other similar venues were not, based on Turner’s exercise of his First Amendment rights. The Court concluded that these claims were sufficient to overcome the State’s sovereign immunity at this stage. View "Kinsley v. Ace Speedway Racing, Ltd" on Justia Law

The petitioner worked part-time as a bus fueler and washer at Marble Valley Regional Transit (MVRT) for approximately four years. He passed a preemployment drug screen and signed an acknowledgment of MVRT’s drug and alcohol policy, which included random drug testing and termination for a positive drug test. In December 2022, he tested positive for marijuana during a random drug test and was terminated in January 2023 for violating U.S. Department of Transportation and Federal Transit Administration (FTA) regulations. The petitioner had a medical marijuana card issued in early 2020.The petitioner applied for unemployment benefits, which were denied by a claims adjudicator on the grounds of misconduct. He appealed to an administrative law judge (ALJ), who affirmed the denial but reduced the disqualification period to six weeks, recognizing the medical use of cannabis. The petitioner then filed a document with the Employment Security Board, seeking a declaratory ruling on the applicability of the misconduct disqualification provision to off-duty medical cannabis use. The Board treated this as an appeal and affirmed the ALJ’s decision, stating that the petitioner’s actions constituted misconduct under MVRT’s drug policy.The Vermont Supreme Court reviewed the case and affirmed the Board’s decision. The Court held that the Board properly declined to issue a declaratory ruling because the petitioner had an available remedy through a direct appeal. The Court emphasized that declaratory rulings are not a substitute for timely appeals of agency decisions. The petitioner’s appeal of the Board’s decision was dismissed as untimely, and the Court affirmed the Board’s order declining to issue a declaratory ruling. View "Skoric v. Department of Labor" on Justia Law

United Parcel Service, Inc. (UPS) challenged the Postal Regulatory Commission's (Commission) handling of the United States Postal Service's (Postal Service) pricing of competitive products, arguing that the Postal Service underprices these products by not accounting for "peak-season" costs incurred during the holiday season. UPS claimed that these costs, driven by increased demand for package deliveries, should be attributed to competitive products rather than being treated as institutional costs.The Commission denied UPS's petition to initiate rulemaking proceedings and its subsequent motion for reconsideration. The Commission found that UPS's methodology for calculating peak-season costs was flawed and did not produce reliable estimates. It also concluded that the existing cost-attribution framework already accounted for the costs caused by competitive products during the peak season. The Commission explained that the Postal Service's costing models, which use an incremental-cost approach, appropriately attribute costs to competitive products and that the remaining costs are correctly treated as institutional costs.The United States Court of Appeals for the District of Columbia Circuit reviewed the case. The court upheld the Commission's decision, finding that the Commission's rejection of UPS's methodology was reasonable and well-explained. The court noted that the Commission had addressed UPS's concerns about the Postal Service's costing models and had initiated further proceedings to explore potential updates to the models. The court also rejected UPS's argument that the Commission failed to consider whether peak-season costs are institutional costs uniquely associated with competitive products, noting that this issue was not properly presented in this case.The court denied UPS's petition for review, affirming the Commission's orders. View "United Parcel Service, Inc. v. PRC" on Justia Law

Pacific Gas and Electric Company (PG&E) and the San Francisco Public Utilities Commission (SFPUC) have a longstanding dispute over PG&E's obligation to wheel energy to SFPUC's customers. SFPUC generates power and sells it to end users in San Francisco but relies on PG&E to distribute this energy. The disagreement centers on which consumers are entitled to wheeled service under a grandfathering clause in PG&E's 2015 Tariff, which incorporates a statutory provision allowing wheeling for consumers served by SFPUC as of October 24, 1992.Initially, the Federal Energy Regulatory Commission (FERC) rejected SFPUC's class-based approach, which argued that PG&E should wheel energy to the same types of customers served in 1992. FERC's 2019 order was vacated by the United States Court of Appeals for the District of Columbia Circuit, which remanded the case for FERC to provide a reasoned analysis of the statutory requirements. On remand, FERC adopted a class-based interpretation, allowing wheeling to all customers of the same class served in 1992, not just specific end users.The United States Court of Appeals for the District of Columbia Circuit reviewed FERC's orders and found them contrary to law. The court held that the plain meaning of "ultimate consumer" in the statutory provision refers to specific end users, not classes of consumers. The court emphasized that the statutory text does not support a class-based interpretation and that such an interpretation would undermine the primary restriction against FERC-ordered wheeling. Consequently, the court vacated FERC's orders and remanded the case for FERC to apply the plain meaning of the statute and determine which of SFPUC's consumers qualify for wheeled service under the 2015 Tariff. View "Pacific Gas and Electric Company v. FERC" on Justia Law

Dallas County sued state officials in Travis County, alleging that the Texas Health and Human Services Commission (HHSC) failed to take custody of criminal defendants adjudicated incompetent to stand trial, imposing costs on the County. The district court denied the State’s plea to the jurisdiction, leading to an appeal in the Third Court of Appeals. However, due to legislative changes, this appeal is set to be transferred to the newly created Fifteenth Court of Appeals, which will have exclusive jurisdiction over certain state-related cases.The Third Court of Appeals could not resolve the appeal before its mandatory transfer to the Fifteenth Court. Dallas County preferred to remain in the Third Court and petitioned the Supreme Court of Texas to bar the transfer and declare the legislation creating the Fifteenth Court unconstitutional. The County argued that the Fifteenth Court’s statewide jurisdiction, its jurisdictional scope, and the appointment process for its justices were unconstitutional.The Supreme Court of Texas reviewed the case and held that it had jurisdiction over Dallas County’s petition. The Court concluded that the creation of the Fifteenth Court was constitutional. It found that the Texas Constitution allows the legislature substantial discretion in creating courts and defining their jurisdiction. The Court also held that the appointment process for the Fifteenth Court’s justices, who will be appointed initially and then elected in the next general election, was constitutional. Consequently, the Court denied Dallas County’s request for relief, meaning the appeal must be transferred to the Fifteenth Court as scheduled. View "IN RE DALLAS COUNTY, TEXAS AND BROWN" on Justia Law

Xiomara Santiago was hired as the Deputy Director for the Head Start Program in Utuado, Puerto Rico. Following a mayoral election, the new mayor, Jorge Pérez, terminated her employment. Santiago claimed her dismissal violated her Fourteenth Amendment due process rights and was politically motivated, violating her First Amendment rights. She sought a preliminary injunction to be reinstated.The United States District Court for the District of Puerto Rico held hearings and ultimately denied Santiago's request for a preliminary injunction. The court concluded that Santiago had not shown a likelihood of success on the merits of either her due process or political discrimination claims. The magistrate judge's Report & Recommendation, which the district judge adopted, found that Santiago's initial hire was contrary to Puerto Rico law, meaning she did not have a property interest in her employment. Additionally, the court found insufficient evidence to support her claim of political discrimination.The United States Court of Appeals for the First Circuit reviewed the district court's decision. The appellate court affirmed the lower court's ruling, agreeing that Santiago had not demonstrated a likelihood of success on the merits of her claims. The court noted that Santiago's argument regarding the incorrect application of Puerto Rico law was waived because it was raised for the first time on appeal. Furthermore, the court found no clear error in the district court's assessment that Santiago's political affiliation was not a substantial factor in her termination. The court concluded that the district court did not abuse its discretion in denying the preliminary injunction. View "Santiago v. Municipality of Utuado" on Justia Law