Court limits NLRB's reach on damages after Houston restaurant fires striking workers
A federal appeals court has limited the NLRB’s authority to award full compensatory damages in unfair labor practice cases involving employee terminations.
On October 31, 2025, the United States Court of Appeals for the Fifth Circuit ruled on a dispute between Hiran Management, doing business as Hungry Like the Wolf, and the National Labor Relations Board (NLRB). The case arose after Hiran Management, a small Houston karaoke restaurant, terminated eight front-of-house employees who had gone on strike following disagreements over management practices and compensation.
The employees, who worked as hosts, bartenders, servers, and bussers, raised concerns about being assigned extra duties without increased pay and about inconsistent compensation for “shift supervisor” responsibilities. After a contentious meeting with the restaurant’s manager, Paul Peters, the employees walked out and decided to strike, later presenting a list of demands to management. Most of the employees did not return to work, and after an unsuccessful attempt to resolve the dispute, Hiran Management notified the striking employees that their employment had ended.
The NLRB filed a complaint, alleging that Hiran Management violated section 8(a)(1) of the National Labor Relations Act by interfering with employees’ rights to engage in concerted activities. An administrative law judge ruled in favor of the NLRB, ordering Hiran...
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