Lesko v. United States

CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 30, 2026
Docket23-1823
StatusPublished

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

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

Opinion

Case: 23-1823 Document: 93 Page: 1 Filed: 01/30/2026

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 Jus- tice, Washington, DC, argued for defendant-appellee. Also represented by REGINALD THOMAS BLADES, JR., PATRICIA M. MCCARTHY, BRETT SHUMATE. ______________________ Case: 23-1823 Document: 93 Page: 2 Filed: 01/30/2026

Before MOORE, Chief Judge, CHEN and STOLL, Circuit Judges. STOLL, Circuit Judge. Jillian Lesko appeals the decision of the Court of Fed- eral 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, holi- day, 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 employ- ment within the Department of Veterans Affairs. Title 38 provides more competitive pay than Title 5, but Title 5 per- mits 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, how- ever, 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. Case: 23-1823 Document: 93 Page: 3 Filed: 01/30/2026

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 pa- tients during the COVID-19 pandemic, “nurses were re- quired 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] imme- diate 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 hol- iday 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 mo- tion to dismiss. Relevant to this appeal, Ms. Lesko’s Amended Com- plaint included Counts I and III–V and alleged that she and all other similarly situated current and former regis- tered nurses employed by IHS were denied various pay en- hancements 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 Case: 23-1823 Document: 93 Page: 4 Filed: 01/30/2026

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 re- lated 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 Decem- ber 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 remain- ing 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 oper- ative 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 jurisdic- tion under 28 U.S.C. § 1295(a)(3). DISCUSSION A trial court’s dismissal for failure to state a claim pre- sents 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 Case: 23-1823 Document: 93 Page: 5 Filed: 01/30/2026

LESKO v. US 5

favorable to the plaintiff. Inter-Tribal Council of Ariz., Inc. v.

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