Mayfield v. LABR

117 F.4th 611
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 11, 2024
Docket23-50724
StatusPublished
Cited by9 cases

This text of 117 F.4th 611 (Mayfield v. LABR) 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
Mayfield v. LABR, 117 F.4th 611 (5th Cir. 2024).

Opinion

Case: 23-50724 Document: 95-1 Page: 1 Date Filed: 09/11/2024

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit ____________ FILED September 11, 2024 No. 23-50724 ____________ Lyle W. Cayce Clerk Robert Mayfield; R.U.M. Enterprises, Incorporated,

Plaintiffs—Appellants,

versus

United States Department of Labor; Martin Walsh, Secretary, U.S. Department of Labor,

Defendants—Appellees. ______________________________

Appeal from the United States District Court for the Western District of Texas USDC No. 1:22-CV-792 ______________________________

Before Wiener, Elrod, and Wilson, Circuit Judges. Jennifer Walker Elrod, Circuit Judge: For more than eighty years, the Department of Labor has defined the so-called White Collar Exemption in the Fair Labor Standards Act to include a minimum-salary requirement. Robert Mayfield challenges the latest rule, which updates the minimum salary necessary to fall within the Exemption, on the ground that promulgating any rule imposing a salary requirement exceeds the Department’s statutorily conferred authority or else violates the nondelegation doctrine. The district court granted the Department’s motion for summary judgment. Because the 2019 Minimum Salary Rule falls within Case: 23-50724 Document: 95-1 Page: 2 Date Filed: 09/11/2024

No. 23-50724

the Department’s explicitly delegated authority to define and delimit the terms of the Exemption, and because that power is not an unconstitutional delegation of legislative power, we AFFIRM. I The Fair Labor Standards Act sets out a variety of standards and protections governing labor conditions. See 29 U.S.C. § 201, et seq. For example, it sets a minimum wage and requires overtime for work beyond forty hours per week. Id. §§ 206(a), 207(a)(1). Though the FLSA defines the workers to whom the statute applies broadly, see id. § 203(e)(1) (defining “employee” as “any individual employed by an employer”), it also contains a series of exemptions that exclude certain types of employees from that definition. Relevant here, the FLSA exempts “any employee employed in a bona fide executive, administrative, or professional capacity.” Id. § 213(a)(1). That exemption is known as the “EAP Exemption” or the “White Collar Exemption, and it gives the Secretary of the Department of Labor the power to “define[] and delimit[]” the “terms” of the exemption. Id. Though the EAP Exemption, like many of the other FLSA exemptions, defines qualifying workers through duties and job types, see id. § 213(a)(3), (5), (8), (10), (12), (15)–(19), DOL has repeatedly issued a minimum-salary rule that prevents workers from qualifying for the Exemption if their salary falls below a specified level. DOL has long justified its rules on the ground that the terms used in the EAP Exemption connote a particular status and prestige that is inconsistent with low salaries. 1 As the district court explained in its comprehensive history of DOL’s various

_____________________ 1 See, e.g., U.S. Dep’t of Labor, “Executive, Administrative, Professional . . . , Outside Salesman” Redefined: Report and Recommendations of the Presiding Officer [Harold Stein] at Hearings Preliminary to Redefinition 19 (1940).

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minimum-salary rules, “[h]istorically, the Department has justified the use of a salary-level test by pointing to its effectiveness as a screen for an employee’s actual duties.” In 2019, DOL issued a new version of what is known as the “Minimum Salary Rule,” raising the minimum salary required to qualify for the Exemption from $455 per week to $684 per week, an increase of 50.3%. 84 Fed. Reg. 51230, 51231. DOL is currently considering a proposed rule that would raise the minimum salary to $1,059 per week, a roughly 55% increase from the 2019 Rule. 88 Fed. Reg. 62152. Mayfield sued DOL, claiming that the 2019 Rule exceeds DOL’s statutorily conferred authority. Mayfield is a small-business owner who runs thirteen fast-food restaurants in Austin, Texas. According to Mayfield, his businesses succeed by offering high bonus payments to the best performing store managers. He asserts that the Rule forces him to pay a higher salary to all managers regardless of performance, leaving him with insufficient funds to reward the best performers. Mayfield does not argue that DOL lacks the authority to raise the minimum salary, nor does he maintain that the particular salary level DOL chose is invalid. Rather, he argues that DOL lacks, and has always lacked, the authority to define the EAP Exemption in terms of salary level. Mayfield and DOL filed cross-motions for summary judgment. The district court granted DOL’s motion and denied Mayfield’s motion. Mayfield timely appealed. II We begin with two preliminary questions: whether our precedent dictates the outcome in this case, and if not, whether the major questions doctrine applies.

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A DOL contends that Mayfield’s arguments are foreclosed by Wirtz v. Mississippi Publishers Corp., 364 F.2d 603 (5th Cir. 1966). In Wirtz, we considered whether the Minimum Salary Rule is an unjustified regulation “under [the FLSA] because [it is] not rationally related to the determination of whether an employee is employed in a ‘bona fide executive . . . capacity.’” Id. at 608 (quoting 29 U.S.C. § 213(a)(1)). Because the FLSA gives DOL “broad latitude” to define the meaning of “bona fide executive,” we “[could not] say that the minimum salary requirement is arbitrary or capricious.” Id. Wirtz does not control our analysis: there, we addressed whether the Minimum Salary Rule is arbitrary and capricious, but Mayfield argues that it exceeds DOL’s statutory authority. The Administrative Procedure Act, 5 U.S.C. § 551 et seq., clearly distinguishes between those two types of challenges, making them separate bases for setting aside agency action. Compare 5 U.S.C. § 706(2)(A) (arbitrary and capricious), with id. § 706(2)(C) (exceeding statutory authority). Holding that a rule survives a particular type of APA review does not determine how it fares under other types of review, even if both types of review raise similar issues. B We must next consider whether the major questions doctrine plays a role in our analysis. “[I]n certain extraordinary cases, both separation of powers principles and practical understanding of legislative intent make [the court] reluctant to read into ambiguous statutory text the delegation claimed to be lurking there. To convince [the court] otherwise, something more than a merely plausible textual basis for the agency action is necessary. The agency instead must point to clear congressional authorization for the power it claims.” West Virginia v. EPA, 597 U.S. 697, 723 (2022) (citation and internal quotation marks omitted).

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117 F.4th 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayfield-v-labr-ca5-2024.