Hiran Management v. NLRB

CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 31, 2025
Docket24-60608
StatusPublished

This text of Hiran Management v. NLRB (Hiran Management v. NLRB) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hiran Management v. NLRB, (5th Cir. 2025).

Opinion

Case: 24-60608 Document: 71-1 Page: 1 Date Filed: 10/31/2025

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

____________ FILED October 31, 2025 No. 24-60608 Lyle W. Cayce ____________ Clerk

Hiran Management, Incorporated, doing business as Hungry Like the Wolf,

Petitioner/Cross-Respondent,

versus

National Labor Relations Board,

Respondent/Cross-Petitioner. ______________________________

Petition for Review of an Order of the National Labor Relations Board Agency No. 16-CA-303914 ______________________________

Before Jones, Stewart, and Ramirez, Circuit Judges. Edith H. Jones, Circuit Judge: Ninety years after Congress created the National Labor Relations Board (“NLRB”), the NLRB claimed for the first time the ability to award full compensatory damages in its enforcement proceedings. Here, the NLRB granted that remedy to eight employees in a proceeding against their former employer, Hiran Management (“Hiran”). Hiran had discharged them after they went on strike. We hold that the NLRB lacks statutory authority to Case: 24-60608 Document: 71-1 Page: 2 Date Filed: 10/31/2025

No. 24-60608

award full compensatory damages.1 We GRANT the employer’s petition in part; DENY NLRB’s enforcement petition in part; and REMAND for fur- ther proceedings. BACKGROUND Niroj Hiransomboon and his wife, acting through Petitioner Hiran Management, purchased Hungry Like the Wolf, a struggling karaoke restaurant in Houston, Texas, in July 2022. Hiran runs Hungry Like the Wolf as a small, non-union business that employs only about twenty workers. Hiran hired a manager, Paul Peters, to oversee its eight “front of house” employees, who served as hosts, bartenders, servers, and bussers. The eight employees were Jordan Logan, Dara Kiel, Knowshaidymar Cuevas, Ashton Cano, Melaina Alexander, Sarah Havemann, Natalie Reul, and Kenneth Thornton (“the Employees”). Soon after Hiran hired Peters, the Employees began to complain about Peters’s management approach. For example, they complained that Peters assigned them extra duties without increased pay, such as checking inventory, collecting money from the safe, or opening and closing the restaurant. On occasion, Logan and Alexander would also help Peters make work schedules, although Peters corrected and finalized the schedules himself. Peters promised several employees that they would receive additional compensation for performing “shift supervisor” duties, but they did not consistently receive additional compensation. To resolve the complaints, Peters scheduled a meeting with the Employees for September 18, 2022. Seven front of house staff attended the

_____________________ 1 Because we conclude that the NLRB exceeded its statutory authority by awarding compensatory damages, it is unnecessary to reach the Petitioner’s arguments that the damages award violated Article III of the U.S. Constitution, the Seventh Amendment, the major questions doctrine, and the due process clause.

2 Case: 24-60608 Document: 71-1 Page: 3 Date Filed: 10/31/2025

meeting, along with the bar supervisor, Adriana Perswell. The meeting did not go well. After a heated exchange, the Employees walked out of the meeting. Later that evening, the Employees reconvened, decided to go on strike, and formulated a list of demands. On September 20, the next workday, most of the Employees did not return to work.2 A few days later, Bruce Hiransomboon, the restaurant’s lawyer, invited the Employees to meet on September 29 to discuss their demands. The meeting was unsuccessful. One week later, on October 6, Bruce Hiransomboon notified the striking employees that they were no longer employees of Hiran Management. After Hiran terminated the strikers, counsel for the NLRB filed an administrative complaint, alleging that Hiran violated section 8(a)(1) of the National Labor Relations Act (“NLRA”). See 29 U.S.C. § 158(a)(1). Under section 8(a)(1), employers cannot interfere with an employee’s right to engage in “concerted activities for the purpose of collective bargaining.” 29 U.S.C. § 157. The NLRB argued that Hiran fired the Employees for engaging in concerted activity and to discourage such future conduct. The case was tried in November 2023 before an administrative law judge (“ALJ”), who ruled in favor of the NLRB. Hiran appealed to the Board. The Board adopted the ALJ’s rulings and conclusions with some minor adjustments. The Board’s order mandated that Hiran cease and desist from its unfair labor practices, reinstate the discharged Employees, and make the Employees whole “for any loss of earnings and other benefits, and for any other direct or foreseeable pecuniary harms suffered as a result” of the unfair labor practices. Following the Board’s decision, Hiran filed a Petition for Review with this court and the NLRB filed a Cross-Application for Enforcement.

_____________________ 2 Of the eight front of house employees, only Cuevas showed up. Cuevas worked for about an hour before joining the other employees on strike.

3 Case: 24-60608 Document: 71-1 Page: 4 Date Filed: 10/31/2025

STANDARDS OF REVIEW This court reviews the NLRB’s legal conclusions de novo. Flex Frac Logistics, LLC v. NLRB, 746 F.3d 205, 207 (5th Cir. 2014) (citing Sara Lee Bakery Grp., Inc. v. NLRB, 514 F.3d 422, 428 (5th Cir. 2008)). The NLRB’s factual findings are “conclusive” if they are “supported by substantial evidence on the record considered as a whole.” 29 U.S.C. § 160(e). Substantial evidence is “that which is relevant and sufficient for a reasonable mind to accept as adequate to support a conclusion.” Flex Frac, 746 F.3d at 207 (quoting El Paso Elec. Co. v. NLRB, 681 F.3d 651, 656 (5th Cir. 2012)). While a reviewing court may not “reweigh the evidence” or “substitute [its] judgment” for that of the NLRB, its review is not “merely a ‘rubber stamp.’” Creative Vision Res., L.L.C. v. NLRB, 882 F.3d 510, 515 (5th Cir. 2018) (first quoting El Paso, 681 F.3d at 656; then quoting NLRB v. Arkema, Inc., 710 F.3d 308, 314 (5th Cir. 2013)). DISCUSSION On appeal, Hiran does not dispute that it unlawfully discharged the Employees based on their “concerted activities for . . . mutual aid or protection.” 29 U.S.C. §§ 157, 158(a)(1). Instead, Hiran asserts first that the NLRA does not apply to four of the discharged employees because they are “supervisors,” rather than “employees.” Second, it contends that the NLRB lacked statutory authorization to order damages for all “direct and foreseeable” harms stemming from the Employees’ discharge. Third, Hiran contends that the NLRB’s determination violates the Constitution’s Article III, the Seventh Amendment, and the Due Process clause, as well as the major questions and nondelegation doctrines. Although it is necessary to address the supervisor issue, the most important issue raised by Hiran, with which we agree, is that the NLRB

4 Case: 24-60608 Document: 71-1 Page: 5 Date Filed: 10/31/2025

lacked statutory authority to order direct or foreseeable compensatory damages. I The NLRA confers certain rights on employees. See, e.g., 29 U.S.C. § 157. But supervisors, a class the statute distinguishes from employees, do not benefit from the protections of the Act. Fla. Power & Light Co. v. Int’l Bhd.

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