Fifth Circuit Rejects Southwest Airlines' Bid to Block Labor Department's New Leave Rule

Fifth Circuit Rejects Southwest Airlines' Bid to Block Labor Department's New Leave Rule

A federal appeals court handed the U.S. Department of Labor a win this week, declining to freeze a rule that expands unpaid family and medical leave protections for millions of workers — a decision that keeps a major regulatory change on track while litigation continues.

The U.S. Court of Appeals for the Fifth Circuit denied Southwest Airlines' motion for a stay pending appeal, allowing the Labor Department's updated Family and Medical Leave Act rule to take effect. The airline had argued the agency overstepped its authority under the statute and that compliance would impose significant operational costs. The rule, finalized earlier this year, clarifies eligibility standards and enforcement procedures under the 1993 law, which guarantees eligible employees up to 12 weeks of unpaid leave for certain family and medical reasons.

The panel's order means the regulation remains in force while the merits of the challenge are litigated. Labor Department attorneys had urged the court to let the rule stand, contending that the agency acted within its statutory authority and that delaying implementation would disrupt protections workers rely on. The case now returns to the district court for further proceedings.

Employment lawyers are watching closely because the dispute tests how much deference courts will give federal agencies interpreting workplace statutes — a question that has grown more consequential as appellate courts scrutinize regulatory reach. Employers covered by the FMLA should review their leave policies and documentation practices to ensure compliance with the updated standards.

What to watch: whether the Fifth Circuit sets an expedited briefing schedule and whether other circuits weigh in on parallel challenges. A final ruling could reshape how the Labor Department enforces leave protections nationwide.

Primary sources: U.S. Department of Justice, DOL Wage and Hour Division — FMLA