(DALLAS, TEXAS) – Munsch Hardt secured a significant federal court victory on behalf of Signet, a Texas-based company providing specialized agricultural construction services nationwide. Led by Houston Labor & Employment Shareholder Dan Pipitone, whose proven track record includes successfully defending employers in complex, high-stakes litigation, and supported by Houston Litigation Section Co-Chair and Shareholder Michael Harvey, Dallas Appellate Practice Group Chair and Shareholder Nolan Knight, and Houston Litigation Associate Bayley Estep, the Firm obtained summary judgment in the U.S. District Court for the Western District of Wisconsin. The court held that workers constructing specialized livestock enclosures qualify under the Fair Labor Standards Act's (FLSA) secondary agricultural exemption, preserving contractors' ability to utilize the U.S. Department of Labor's H-2A visa program for qualifying agricultural construction projects and providing important clarity for the agricultural producers and contractors that rely on this workforce.
The collective action, Luna Vanegas v. Signet Builders, challenged Signet's longstanding use of the H-2A visa program for workers constructing livestock facilities, arguing the work should instead fall under the H-2B program and outside the FLSA's secondary agricultural exemption. Had the challenge succeeded, it could have significantly disrupted the workforce model relied upon by agricultural construction contractors and the farms they serve, threatening a reliable source of skilled labor for critical agricultural infrastructure projects.
The court rejected those claims, concluding the work qualified as secondary agriculture under the FLSA. The decision provides important guidance for contractors, agricultural producers, and employers that depend on the H-2A program to complete specialized agricultural infrastructure. Throughout the litigation, producers from across the agricultural industry supported Signet's position, recognizing that the outcome would affect contractors, farms, and the skilled workforce supporting modern agricultural operations. Following the court's summary judgment ruling, the litigation concluded pursuant to a previously served offer of judgment under Federal Rule of Civil Procedure 68. That procedural resolution did not alter the court's decision on the merits, which remains an important affirmation of the FLSA's secondary agricultural exemption and the continued use of the H-2A program for qualifying agricultural construction work.
“This decision provides important clarity for employers operating in the agricultural construction industry,” said Dan Pipitone. “The Court recognized these projects as an integral part of modern agricultural operations and confirmed the continued applicability of the statutory framework governing this work.”
“This case was never about avoiding our responsibilities as an employer. It was about protecting the ability to provide American agriculture with a reliable, skilled workforce while preserving meaningful opportunities for the people who make our work possible,” said Greg Schonefeld, CEO of Signet. “Many of our H-2A employees have been with us for years, and agricultural producers across the industry stepped forward in support because they recognized what was at stake – not only for Signet, but for the farms and contractors that rely on this workforce every day. This decision allows us to continue serving agricultural producers, providing long-term opportunities for our employees, and building the critical infrastructure on which our industry depends.”
The decision reinforces the longstanding legal framework supporting agricultural construction while helping preserve a reliable workforce for producers, contractors, and the employees who rely on these opportunities. The court's ruling remains an important legal precedent providing greater certainty for agricultural contractors, producers, and the experienced workforce that supports food production across the country. Munsch Hardt's Labor & Employment attorneys represent employers in complex wage-and-hour litigation, collective actions, government investigations, and workplace compliance matters, helping clients navigate evolving employment regulations while defending high-stakes disputes nationwide.