Descant v. CTCI Americas

Court of Appeals for the Fifth Circuit·Decided November 6, 2025·No. 25-40112·Unpublished

Opinion

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED November 6, 2025

No. 25-40112

Lyle W. Cayce

Summary Calendar Clerk

Shane Descant; Shaun Oranday; Prentis Tatum; Gregg Henry,

Plaintiffs—Appellants,

versus

CTCI Americas, Incorporated,

Defendant—Appellee.

Appeal from the United States District Court for the Southern District of Texas USDC No. 2:22-CV-308

Before Stewart, Graves, and Oldham, Circuit Judges. Per Curiam: * In this case, Plaintiffs Shane Descant, Shaun Oranday, Prentis Tatum, and Gregg Henry (collectively, the “Plaintiffs”) filed a lawsuit against their former employer, CTCI Americas, Inc. (“CTCI”), to recover back wages, liquidated damages, attorney’s fees, and costs under the Fair Labor

*

This opinion is not designated for publication. See 5th Cir. R. 47.5.

No. 25-40112

Standards Act of 1938, 29 U.S.C. §§ 201–219 (“FLSA”). The Plaintiffs moved for judgment on the pleadings, pursuant to Federal Rule of Civil Procedure 12(c), and both parties moved for summary judgment. The magistrate judge recommended that the district court deny the Plaintiffs’ motions and grant CTCI’s motion for summary judgment. The district court adopted the magistrate judge’s recommendations in part. Specifically, the district court denied the Plaintiffs’ Rule 12(c) motion as moot (finding that CTCI properly amended its answer to reflect its affirmative defenses) and granted CTCI’s motion for summary judgment. After the district court entered its order, CTCI moved for costs against the Plaintiffs, and the magistrate judge granted its order.

The district court correctly determined that CTCI properly amended its complaint and properly granted CTCI’s summary judgment motion. Additionally, the magistrate judge has authority to tax costs against the Plaintiffs. Therefore, we AFFIRM the district court in full.

I

A

Congress enacted the FLSA in 1983 to create a “comprehensive federal wage-and-hour scheme” and “[to] eliminate ‘labor conditions [that are] detrimental to the maintenance of the minimum standard of living necessary for health, efficiency[,] and [the] general well-being of workers.’” Klick v. Cenikor Found., 94 F.4th 362, 368 (5th Cir. 2024) (quoting Aldridge v. Miss. Dep’t of Corr., 990 F.3d 868, 871 (5th Cir. 2021)). Accordingly, “[w]orkers covered under the Act are entitled to a minimum wage and overtime compensation.” Id. (citing 29 U.S.C. §§ 206, 207). Section 207(a)(1) defines the FLSA’s overtime-pay rule as the following: “[N]o employer shall require its employees to work more than 40 hours unless such employee receives compensation for his employment in excess of [40]

No. 25-40112

hours . . . at a rate not less than [1.5] times the regular rate he is paid.” Kelley v. Alpine Site Servs., Inc., 110 F.4th 812, 814 (5th Cir. 2024) (citation modified) (quoting Cunningham v. Circle 8 Crane Servs., L.L.C., 64 F.4th 597, 600 (5th Cir. 2023)).

However, there are several exceptions to the FLSA’s overtime-pay rule. Id. “The FLSA delegates to the Secretary of Labor [(the ‘Secretary’)] . . . the authority to define and delimit the terms of the exemption.” 84 Fed. Reg. 51230; see also 29 U.S.C. § 213(a)(1). Under section 213, “any employee employed in a bona fide executive, administrative, or professional capacity” are exempt from the FLSA’s protections. 1 Helix Energy Sols. Grp., Inc. v. Hewitt, 598 U.S. 39, 44 (2023). To be exempt as a “bona fide executive,” an employee must meet three requirements: (1) the “salary basis” requirement, (2) the “salary level” requirement, and (3) the “duties” requirement. Id. at 44–45 (citing 84 Fed. Reg. 51230 (2019)). Under the “salary basis” requirement, “an employee can be a bona fide executive . . . if he receives a ‘predetermined and fixed salary’—one that does not vary with the precise amount of time he works.” Id. at 45 (quoting 84 Fed. Reg. 51230 (2019)). Under the “salary level” requirement, an employee must have “[a] preset salary [that] exceeds a specified amount.” Id. Lastly, the “duties” requirement “focuses on the nature of the employee’s job responsibilities.” Id.

The Secretary distinguishes between low-income and higher-income bona fide executives. “A low-income employee is a bona fide executive if she is ‘[c]ompensated on a salary basis’ (salary-basis test); ‘at a rate of not less than $455 per week’ (salary-level test); and carr[ies] out three listed

1 The employees in this case dispute whether they are bona fide executives. Thus, we will only center that exemption in our analysis.

No. 25-40112

responsibilities—managing the enterprise, directing other employees, and exercising power to hire and fire (duties test).” Venable v. Smith Int’l, Inc., 117 F.4th 295, 299 (5th Cir. 2024) (quoting Hewitt, 598 U.S. at 45); see also 29 C.F.R. § 541.601(a). 2 Meanwhile, a higher-income bona fide executive is “an employee that makes at least $100,000 . . . [and] meets the aforementioned salary basis and the salary level tests.” 3 Venable, 117 F.4th at 299, 301 (internal citations omitted) (citing Hewitt, 598 U.S. at 45 ); see also 29 C.F.R. § 541.601(a). Furthermore, an employee counts as a higher-income bona fide executive if they make over $455 per week or if they are paid on a salary basis. 29 C.F.R. § 541.601(b)(1).

B

CTCI provides engineering, procurement, and construction (“EPC”) services for a project near Gregory and Portland, Texas, where all of the Plaintiffs worked. Henry worked as a construction manager and oversaw daily operations. Oranday was also a construction manager, and he worked under Henry. He oversaw field activities and contractors, directing “the project’s overall direction.” 4 Descant oversaw preventative maintenance, ensuring equipment was suitable for installation and directing

2 As of 2024, section 541.601 updated the annual and weekly earnings amount for a person to be considered exempt under the FLSA as a “highly compensated employee.” See 29 C.F.R. § 541.601. Language regarding a high-salary employee’s duties remains largely unchanged. See Venable v. Smith Int’l, Inc., 117 F.4th 295, 299 (5th Cir. 2024) (applying the three elements of a “highly compensated employee” under section 541.601).

3 The “duties” requirement is also more relaxed for higher-income bona fide executives. Venable, 117 F.4th at 299.

4 Even after CTCI demoted him for sending offensive messages, he continued to serve as a field manage where he “directed contractors . . . [which was] similar to his [prior] role.”

No. 25-40112

contractors to install equipment. Tatum was the Procurement / Logistics Lead, managing the procurement of equipment worth several hundred million dollars. Tatum also worked as a field buyer, assisting engineers and soliciting bids to purchase construction materials worth millions of dollars.

According to their offer letters, the Plaintiffs had the following salaries: Henry’s annual salary was $250,000, and he was paid approximately $4,697.69 per week; 5 Oranday’s annual salary was $166,400, and he was paid approximately $3,200 per week; Descant’s annual salary was $130,000, and he was paid approximately $2,500 per week; and Tatum’s annual salary was $130,000, and he was paid approximately $2,500 per week. All of the Plaintiffs were eligible for “additional straight time compensation.” “Additional straight time” is the standard hourly rate instead of one and a half times the hourly rate. Moreover, in each of the Plaintiffs’ offer letters, it explicitly designated them as “exempt from the overtime pay provision of state and federal law.”

C

On December 29, 2022, the Plaintiffs filed a putative collective-action lawsuit in the Southern District of Texas against CTCI for allegedly violating the FLSA. Specifically, the Plaintiffs claimed that CTCI failed to pay them overtime hours at an overtime rate of one and one-half times their

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