SHERMAN, Texas (LN) — U.S. District Judge Amos L. Mazzant denied a motion to dismiss a Fair Labor Standards Act retaliation claim Tuesday, allowing the case against restaurant owners to proceed.
Yu sued Highland Noodles, Inc., owner Juxiang Li, and Wenyuan Zhang, also known as Chelsea Zhang, alleging the defendants engaged in retaliatory conduct in violation of 29 U.S.C. § 215(a)(3).
The suit followed Yu’s earlier filing in this court, Case No. 4:24-cv-706, alleging FLSA violations. According to the complaint, the defendants changed their W-2 reporting practices specifically to subject Yu to excess tax liability.
Mazzant concluded that Yu’s complaint contained sufficient factual matter to state a plausible claim for relief. The judge applied the two-step approach established by the U.S. Supreme Court in Ashcroft v. Iqbal, which requires courts to disregard conclusory allegations and accept factual allegations as true to determine if they plausibly suggest an entitlement to relief.
The court determined that Yu’s allegations went beyond the speculative level and allowed the court to draw a reasonable inference that the defendants were liable for the misconduct alleged.
Mazzant signed the memorandum opinion and order on May 12, denying the defendants’ motion filed Sept. 8, 2025.