Lesko v. United States

Procedural entryThis page is a short order in Lesko v. United States. Read the opinion of the Court — 130 F.4th 1385
Court of Appeals for the Federal Circuit·Decided January 30, 2026·No. 23-1823·Published

Opinion

United States Court of Appeals for the Federal Circuit

JILLIAN LESKO, Plaintiff-Appellant

v.

UNITED STATES, Defendant-Appellee

2023-1823

Appeal from the United States Court of Federal Claims in No. 1:22-cv-00715-CNL, Judge Carolyn N. Lerner.

Decided: January 30, 2026

DIMITRIOS VASILIOU KOROVILAS, Wucetich & Korovilas LLP, El Segundo, CA, argued for plaintiff-appellant. Also represented by JASON MATTHEW WUCETICH; MICHAEL S. MORRISON, Alexander Morrison & Fehr LLP, Los Angeles, CA.

MATTHEW JUDE CARHART, Commercial Litigation Branch, Civil Division, United States Department of Justice , Washington, DC, argued for defendant-appellee. Also represented by REGINALD THOMAS BLADES, JR., PATRICIA M. MCCARTHY, BRETT SHUMATE.

2 LESKO v. US

Before MOORE, Chief Judge, CHEN and STOLL, Circuit Judges.

STOLL, Circuit Judge.

Jillian Lesko appeals the decision of the Court of Federal Claims dismissing all five counts in her Amended Complaint for failure to state a claim upon which relief may be granted. Ms. Lesko, who was a registered nurse for the Indian Health Service during the COVID-19 pandemic, alleged she and all similarly situated nurses were denied various pay enhancements for overtime, nighttime, holiday , and Sunday work. In an en banc decision, this court affirmed the Court of Federal Claims’ dismissal of Count II and referred the remainder of the appeal back to the panel for resolution. For the reasons discussed below, we now reverse the Court of Federal Claims’ dismissal of Counts I and III–V of Ms. Lesko’s Amended Complaint and remand for further proceedings consistent with this opinion.

BACKGROUND

Titles 5 and 38 of the United States Code each govern the hiring, firing, and compensation of federal employees. Title 5 covers compensation and benefits for most General Schedule federal employees while Title 38 governs employment within the Department of Veterans Affairs. Title 38 provides more competitive pay than Title 5, but Title 5 permits the discretionary application of certain provisions from Title 38 to eligible Title 5 healthcare employees. For example, registered nurses employed by the Indian Health Service (IHS)—a division of the Department of Health and Human Services (HHS)—are hired as Title 5 employees, but IHS pays them the higher base rate of pay under the special salary provisions of Title 38. IHS does not, however , apply other compensation provisions from Title 38 that are available to Title 5 employees, including increased compensation rates for overtime, nighttime, Sunday, and holiday work.

LESKO v. US 3

From November 2020 through July 2021, Ms. Lesko served as a registered nurse for IHS. According to Ms. Lesko’s Amended Complaint, to meet the needs of patients during the COVID-19 pandemic, “nurses were required to work long hours, well over their regularly scheduled tours of dut[y],” and “[t]his additional work was often not paid . . . and occurred at least weekly and often daily.” J.A. 82–83 ¶ 43; see also J.A. 88 ¶ 61. This “work was not irregular or occasional. Rather, it was and remains continuous, consistent and regularly preformed [sic].” J.A. 82–83 ¶ 43. Twenty-four hours per day, seven days per week, the IHS electronic health record system alerted nurses with patient updates, which “often require[d] immediate responses,” or at least “timely” responses pursuant to IHS policies and procedures. J.A. 83–84 ¶¶ 44, 47–48; see also J.A. 86–87 ¶ 54. Nurses were also required to submit or respond to patient notes and records within 48 to 72 hours. Supervisors and management were aware of this additional work, but pressured nurses to timely complete tasks, take on more responsibilities, and disciplined nurses if they failed to complete tasks in a timely fashion. This additional work also included nighttime, Sunday, and holiday work. Ms. Lesko filed her original complaint for a class action suit on June 27, 2022, which she amended on November 14, 2022, after the Government filed its first motion to dismiss.

Relevant to this appeal, Ms. Lesko’s Amended Complaint included Counts I and III–V and alleged that she and all other similarly situated current and former registered nurses employed by IHS were denied various pay enhancements in violation of (1) 38 U.S.C. § 7453 (miscellaneous compensation benefits); (2) 5 C.F.R. §§ 550.121–22 (nighttime pay); (3) 5 C.F.R. §§ 550.171–72 (Sunday pay); and (4) 5 C.F.R. §§ 550.131–32 (holiday pay). For all claims, she sought backpay under 5 U.S.C. § 5596. The Government moved to dismiss under Rule 12(b)(6) of the Rules of the Court of Federal Claims (RCFC) for failure 4 LESKO v. US

to state a claim, which the Court of Federal Claims granted.

Ms. Lesko appealed the dismissal of each count. The court sua sponte granted en banc hearing on questions related to Count II and the validity of the Office of Personnel Management’s (OPM) writing requirement for overtime under 5 U.S.C. § 5542 on March 18, 2025. On December 12, 2025, the court upheld the writing requirement for 5 U.S.C. § 5542 and affirmed the Court of Federal Claims’ dismissal of Count II. The court referred the remainder of the appeal back to the panel for resolution.

On December 15, 2025, we ordered party briefing on whether the court’s en banc decision impacted the remaining issues on appeal. Both parties filed responsive briefing indicating that the en banc decision did not impact the other counts at issue in Ms. Lesko’s appeal. See ECF No. 90 at 3 (the Government asserting that “[n]othing in the Court’s dismissal of Count II undermines or, as best as we can tell, bears upon any arguments we have made with respect to Counts I or Counts III–V”); ECF No. 91 at 1 (Ms. Lesko asserting that “the claims asserted in the operative complaint related to (1) nighttime pay, Sunday pay, and holiday pay, and (2) entitlement to the Title 38 pay rates associated with these premium pay provisions . . . are wholly independent, and in no way impacted or altered by the en banc Court’s ruling”).

We thus turn to Counts I and III–V. We have jurisdiction under 28 U.S.C. § 1295(a)(3).

DISCUSSION

A trial court’s dismissal for failure to state a claim presents a question of law that we review de novo. Boaz Hous. Auth. v. United States, 994 F.3d 1359, 1364 (Fed. Cir. 2021). When considering whether to dismiss a plaintiff’s complaint, the court must accept all factual allegations in the complaint as true and construe them in the light most

LESKO v. US 5

favorable to the plaintiff. Inter-Tribal Council of Ariz., Inc. v. United States, 956 F.3d 1328, 1338 (Fed. Cir. 2020). A complaint should not be dismissed for failure to state a claim unless the complaint fails to state a claim that is plausible on its face. Id.

I

In Count I of her Amended Complaint, Ms. Lesko alleged that, just as IHS registered nurses’ base pay is provided through Title 38, they should also be awarded the full panoply of higher compensation provided by the other provisions of Title 38 that Title 5 employees are eligible for, including for overtime, nighttime, Sunday, and holiday work.

Free access — add to your briefcase to read the full text and ask questions with AI

Lesko v. United States, (Fed. Cir. 2026).

Lesko v. United States (Lesko v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

American Contractors Indemnity Co. v. United States
570 F.3d 1373 (Federal Circuit, 2009)
John Burich v. The United States
366 F.2d 984 (Court of Claims, 1966)
Meehan v. United Consumers Club Franchising Corp.
312 F.3d 909 (Eighth Circuit, 2002)
Inter-Tribal Council of Az v. United States
956 F.3d 1328 (Federal Circuit, 2020)
Sharifi v. United States
987 F.3d 1063 (Federal Circuit, 2021)
Boaz Housing Authority v. United States
994 F.3d 1359 (Federal Circuit, 2021)
McCutchen v. United States
14 F.4th 1355 (Federal Circuit, 2021)
Aviles v. United States
151 Ct. Cl. 1 (Court of Claims, 1960)