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Thursday, November 20, 2025

Fifth Circuit Denies Enforcement of NLRB’s Enhanced Remedies, Widening Circuit Split - The National Law Review

On October 31, 2025, the Fifth Circuit held that the National Labor Relations Board (“NLRB” or “Board”) impermissibly awarded compensatory damages to striking employees who were fired. As we reported here, the court’s ruling widens a circuit split between the Third and Ninth Circuits on available remedies under the National Labor Relations Act (“NLRA” or the “Act”) and increases the likelihood of U.S. Supreme Court review to settle this issue.

Background and Thryv Decision

In September 2022, eight employees working at a Texas-based karaoke-themed bar staged a walkout and then went on strike after a heated meeting with a supervisor to address pay, treatment, scheduling, and duties. The strikers presented economic and non-economic demands to the employer, which fired them for alleged insubordination.

The Board administrative law judge (“ALJ”) rejected that rationale, finding the employer failed to present evidence that the employees saw the employee handbook and training manual listing rules against absenteeism, no-call/no-show, bullying, and insubordination. The ALJ also found that the employer failed to show its manager instructed employees on these policies. As a result, the ALJ ruled that the employer violated the NLRA in firing the strikers and ordered it issue them backpay, reinstatement, and post a remedial notice that it would not violate the Act again.

Importantly, the ALJ also held, pursuant to Thryv, Inc., 372 NLRB No. 22 (2022), that the employer had to...



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