May 2026 Labor Law Updates for Houston, Texas
This May 2026 employment update from HKM Employment Attorneys highlights notable Texas labor law developments affecting employees, HR professionals, and compliance leaders. The month included Fifth Circuit rulings, federal agency enforcement, National Labor Relations Board decisions, and a U.S. Supreme Court case with important implications for Texas workplace rights.
Texas workplace rights remain shaped by fast-moving federal court and agency developments. Employees and employers with questions about discrimination, leave, accommodations, wage-and-hour compliance, union issues, or arbitration agreements should contact HKM Employment Attorneys. This post is for general information and is not legal advice.
Hayes v. GStek, Inc. — Fifth Circuit ADA Accommodation Ruling
Date: May 8, 2026
Summary:
The Fifth Circuit affirmed dismissal of an employee’s ADA claims after his employer denied a request for full-time remote work. The court concluded that in-person attendance was an essential function of the IT administrator role under the circumstances, particularly because the employer performed work for the U.S. Army. The employer had allowed partial telework, but the court found that the ADA did not require the employer to provide the employee’s preferred accommodation. The decision also emphasized that temporary pandemic-era remote work does not permanently redefine a job’s essential functions.
Implications:
For Texas employers, this ruling reinforces the importance of maintaining accurate job descriptions and assessing accommodation requests individually. Remote work cannot be rejected automatically, but employers may have stronger grounds to deny full-time telework when regular on-site work is genuinely essential and supported by operational evidence.
Moreno v. Dealer Integrated Services, L.L.C. — Fifth Circuit Pregnancy and FMLA Ruling
Date: May 11, 2026
Summary:
In an unpublished decision arising from the Southern District of Texas, the Fifth Circuit affirmed summary judgment against a payroll employee who alleged pregnancy discrimination, FMLA retaliation, FMLA interference, and inadequate FMLA notice. The court found that the employer presented legitimate, non-discriminatory reasons for termination related to workplace conflict, communication problems, and job-performance concerns. It also held that the employee could not establish prejudice from the claimed FMLA notice and interference violations because the record supported a legitimate termination before her leave began.
Implications:
Although the decision is not designated for publication, it offers a practical reminder for Texas employers to document performance concerns, discipline, and leave-related conversations carefully. It also shows that FMLA notice obligations remain important, even where an employee ultimately cannot prove harm from a notice failure.
Providence Title Co. v. Truly Title, Inc. — Fifth Circuit Employee Mobility Ruling
Date: May 14, 2026
Summary:
The Fifth Circuit affirmed dismissal of several Texas-law claims involving former executives and employees who moved from one title insurance company to a competitor. The court found insufficient evidence that the former employees solicited coworkers before resigning or misused confidential information. It distinguished permissible preparation to compete from conduct that would breach fiduciary duties or contractual restrictions. The opinion is unpublished.
Implications:
Texas employers should use clear, enforceable confidentiality and non-solicitation agreements and preserve evidence when they believe a departing employee has improperly recruited coworkers or taken protected information. Employees planning a move to a competitor should avoid using confidential materials or actively soliciting coworkers before their resignation.
EEOC v. Hatch Trick, Inc. — Religious Accommodation Enforcement Action
Date: May 14, 2026
Summary:
The EEOC filed a federal lawsuit against Hatch Trick, Inc., a Chick-fil-A franchisee operating Austin locations, alleging religious discrimination. According to the EEOC, the employer initially accommodated a delivery manager’s request not to work on Saturdays for Sabbath observance, then later required Saturday work, rejected proposed alternatives, offered a lower-paid nonmanagerial role, and discharged the employee when she declined it. The lawsuit was filed in the Western District of Texas as EEOC v. Hatch Trick, Inc., No. 1:26-cv-01275. These are allegations that remain to be proven in court.
Implications:
Texas employers should take religious accommodation requests seriously and engage in a documented, good-faith discussion about workable alternatives. A request does not have to be granted in every circumstance, but employers should be prepared to show why a proposed accommodation would cause undue hardship.
U.S. Department of Labor Restores Pre-2024 Overtime Regulations — Federal Wage-and-Hour Rule
Date: May 15, 2026
Summary:
The U.S. Department of Labor issued a final technical rule implementing court judgments that vacated the agency’s 2024 overtime-rule changes under the Fair Labor Standards Act. The action removed the vacated regulatory text and restored the prior Part 541 exemption regulations for executive, administrative, professional, outside-sales, and computer employees.
Implications:
Texas employers should review exempt-employee classifications using the regulations now in effect rather than relying on the higher salary-threshold structure established by the vacated 2024 rule. Exemption decisions should still account for salary basis, salary level, and job duties.
Kroger Texas L.P. — NLRB Dues-Checkoff Decision
Date: May 20, 2026
Summary:
The National Labor Relations Board affirmed an administrative law judge’s finding that Kroger Texas violated the National Labor Relations Act by unilaterally stopping the collection and remittance of union dues under contractual dues-checkoff provisions when its collective bargaining agreements expired. The case involved UFCW Local 455 and was decided in Houston.
Implications:
Unionized Texas employers should not assume that expiration of a collective bargaining agreement permits unilateral changes to dues-checkoff arrangements. Labor-management obligations may continue after contract expiration, and employers should seek legal guidance before changing established bargaining-unit practices.
Kuraray America, Inc. — NLRB Bargaining Order
Date: May 22, 2026
Summary:
The NLRB granted summary judgment against Kuraray America in La Porte, Texas, finding that the company violated the NLRA by failing and refusing to recognize and bargain with a certified union. The Board concluded that the employer did not raise issues that had not already been, or could not have been, litigated in the underlying representation proceeding.
Implications:
Texas employers facing a union certification should understand that challenges to the representation process generally must be raised at the appropriate stage. Once certification is final, refusing to bargain can create additional unfair-labor-practice exposure.
Flowers Foods, Inc. v. Brock — U.S. Supreme Court Arbitration Ruling
Date: May 28, 2026
Summary:
The U.S. Supreme Court held that a worker may qualify for the transportation-worker exemption in Section 1 of the Federal Arbitration Act even when the worker does not personally cross state lines or interact with a vehicle that does. The Court ruled that workers handling an intrastate portion of a continuous interstate journey may still be engaged in interstate commerce for purposes of the FAA exemption.
Implications:
Texas employers in delivery, logistics, retail distribution, and similar industries should reassess arbitration agreements used with drivers and distributors. The ruling does not invalidate all employment arbitration agreements, but it may limit an employer’s ability to compel arbitration under the FAA for certain transportation workers.
Conclusion: Looking Back on Texas’ Labor Law Updates from May 2026
With Texas courts increasingly addressing wage-and-hour disputes, discrimination, and contract enforcement, you don’t have to stay stuck in uncertainty. At HKM Employment Attorneys in Houston, our seasoned attorneys—such as Alvin Adjei and Taylor Jones—are deeply versed in discrimination, hostile work environments, contractual breaches, wage theft, whistleblower claims, and more. Our Houston team combines responsive communication, national recognition, and locally-rooted advocacy to help local employees navigate complex workplace issues. If recent case rulings hit close to your experience, reach out to our Houston office and let us help you assert your rights and pursue meaningful justice.
