Precedents Cited
1) Core § 1983 “state action” framework
The court began from the foundational requirement that § 1983 liability attaches only to conduct “under color of state law.” It relied on
Groman v. Twp. of Manalapan, 47 F.3d 628 (3d Cir. 1995), for the proposition that § 1983 reaches private actors only where the challenged conduct is
“made possible only because the wrongdoer is clothed with the authority of state law.”
2) Public function test: exclusivity is decisive
The Third Circuit applied the “traditionally the exclusive prerogative of the State” standard from Rendell-Baker v. Kohn, 457 U.S. 830 (1982), which itself
quotes Jackson v. Metro. Edison Co., 419 U.S. 345 (1974). The court emphasized (echoing the Third Circuit’s own articulation in
Mark v. Borough of Hatboro, 51 F.3d 1137 (3d Cir. 1995)) that the public function test is “rigorous” and rarely satisfied.
To reinforce that vaccine mandates are not exclusively governmental, the court relied on out-of-circuit authority squarely addressing COVID‑19 mandates:
Pearson v. Shriners Hosps. for Child., Inc., 133 F.4th 433 (5th Cir. 2025), and Ciraci v. J.M. Smucker Co., 62 F.4th 278 (6th Cir. 2023).
Those cases support the proposition that a private employer’s vaccine requirement—even when related to public health—is not a function “traditionally handled just by the State.”
3) Symbiotic relationship: funding and regulation are not enough; nexus to challenged act matters
The Former Employees invoked the “symbiotic relationship” concept associated with Burton v. Wilmington Parking Auth., 365 U.S. 715 (1961), which describes
circumstances where the State is so interdependent with a private entity that it becomes a “joint participant in the challenged activity.”
The Third Circuit’s analysis, however, tracked the limits recognized in Rendell-Baker v. Kohn, emphasizing that even extensive government funding does not
transform a contractor into the government for § 1983 purposes.
The court also cited Robert S. v. Stetson Sch., Inc., 256 F.3d 159 (3d Cir. 2001), which in turn underscores that Rendell-Baker rejected state action
arguments even where “virtually all” revenue came from government sources. In effect, the Third Circuit reaffirmed a two-part constraint:
(i) money and regulation do not suffice; and (ii) there must be a meaningful connection between the state’s involvement and the specific conduct challenged.
That second constraint was decisive here: the “challenged conduct” was Shriners’ internal employment mandate, and the court found no plausible allegation that the policy
“was compelled or even influenced by any state regulation,” quoting Rendell-Baker v. Kohn. Participation in a broader state vaccination effort did not plausibly
connect the Commonwealth to the employment decision at issue.
4) State-enforced custom: “custom[] having the force of law” requires more than parallel conduct
For the “state-enforced custom” concept, the court cited Adickes v. S. H. Kress & Co., 398 U.S. 144 (1970), and quoted its invocation of the
Civil Rights Cases, 109 U.S. 3 (1883), for the requirement that the deprivation stem from “custom[] having the force of law.”
The court held the Former Employees’ allegations were “convoluted” and impermissibly conflated Shriners’ alleged participation in a state public vaccination program with
an internal employment mandate; the complaint lacked factual allegations showing the mandate was enforced pursuant to a state custom or practice with legal force.
5) EUA statute: no implied private right of action
The panel adopted the prevailing judicial consensus that 21 U.S.C. § 360bbb‑3 creates no implied private right of action, citing:
Pearson v. Shriners Hosps. for Child., Inc., 133 F.4th 433 (5th Cir. 2025);
Bridges v. Houston Methodist Hosp., 543 F. Supp. 3d 525 (S.D. Tex. 2021);
Kiss v. Best Buy Stores, No. 3:22-CV-00281, 2022 WL 17480936 (D. Or. Dec. 6, 2022);
Roberts v. Shriners Hosps. for Child., No. 2:23-CV-0295, 2024 WL 5517091 (E.D. Wash. Feb. 8, 2024);
Sweeney v. Univ. of Colo. Hosp. Auth., No. 23-CV-02451, 2024 WL 3713835 (D. Colo. July 12, 2024); and
Timken v. S. Denver Cardiology Assocs., P.C., No. 23-CV-02859, 2024 WL 4407003 (D. Colo. Aug. 29, 2024).
While the opinion did not re-derive the full implied-right-of-action framework, its reasoning is categorical: the statute does not authorize private lawsuits, so the claim fails.
6) Supplemental jurisdiction after dismissal of federal claims
On the state-law claims, the Third Circuit relied on 28 U.S.C. § 1367(c)(3) and cited Hedges v. Musco, 204 F.3d 109 (3d Cir. 2000), to confirm that once
all claims within original federal jurisdiction are dismissed, it is typically within the district court’s discretion to decline supplemental jurisdiction.
Legal Reasoning
1) Distinguishing “public health context” from “state action”
The Former Employees’ theory implicitly treated COVID‑era public health measures as converting private decisions into governmental ones. The court rejected that move.
Even if Shriners contributed to public vaccination goals, the dispositive question under § 1983 was whether the specific act challenged—an internal condition of employment—
is attributable to the state under recognized state-action tests.
2) Public function: vaccine mandates are not exclusively governmental
The court held that imposing an employee vaccine mandate is not “traditionally the exclusive prerogative of the State.”
The reasoning is practical and categorical: private employers (including hospitals) commonly impose health and vaccination requirements. Because exclusivity is required,
common private practice defeats the public function argument.
3) Symbiotic relationship: “funding + regulation” does not equal “joint participation” in the challenged decision
The Former Employees alleged Shriners was “intimately regulated, licensed, and funded” and that Pennsylvania relied on private parties to achieve vaccine administration.
The court accepted, arguendo, that such relationships might exist at a high level, but ruled them insufficient for state action absent a plausible allegation that
the state compelled, influenced, or was meaningfully intertwined with the particular employment mandate.
The court’s key move was narrowing the inquiry to the “challenged conduct” and insisting on a nexus: even pervasive public-private collaboration around vaccination
does not automatically tether every private policy choice (like an internal HR mandate) to the state.
4) State-enforced custom: no facts showing a custom “having the force of law”
The court found the pleadings lacked allegations that Pennsylvania had a custom requiring or effectively imposing Shriners’ mandate. The “pressure and punish” theory
was treated as rhetorical rather than factual: it did not identify a state custom that operated as law, nor facts connecting such a custom to Shriners’ terminations.
5) EUA statute claim fails at the threshold: no private enforcement mechanism
The Former Employees framed § 360bbb‑3 as granting an “explicit right to refuse” EUA products enforceable via private suit. The court rejected this not by debating
the policy’s merits but by identifying a structural defect: Congress did not create (and courts have not found) an implied private right of action under the EUA statute.
Without a cause of action, the claim cannot proceed regardless of how plaintiffs characterize statutory language about EUA conditions.
6) Supplemental jurisdiction: routine discretionary dismissal once federal anchors are gone
With the § 1983 and EUA claims dismissed, the district court’s decision to let Pennsylvania courts address Pennsylvania claims followed the mainstream § 1367(c)(3) practice,
affirmed as within discretion by Hedges v. Musco.
Impact
1) Reinforcing a limiting principle on pandemic-era § 1983 claims
The opinion reinforces that pandemic-related subject matter does not relax state-action doctrine. Plaintiffs challenging private employer vaccine mandates must still
satisfy the “exclusive public function” or nexus/interdependence requirements; general allegations of regulation, licensure, public funding, or participation in public
health initiatives will not suffice without facts tying the state to the specific employment decision.
2) Continued foreclosure of EUA-based private lawsuits
The Third Circuit joined the prevailing line of authority rejecting an implied private right of action under 21 U.S.C. § 360bbb‑3. Practically, this channels EUA-related
disputes away from standalone federal statutory damages suits and toward other vehicles (e.g., employment discrimination statutes where applicable, contractual claims,
or administrative/public enforcement mechanisms).
3) Procedural consequence: state-law claims often will be dismissed without federal anchors
The affirmance confirms that when plaintiffs plead novel federal theories that fail at the motion-to-dismiss stage, their state-law claims may be dismissed from federal
court under § 1367(c)(3), requiring refiling in state court (subject to limitations and tolling rules not addressed in the opinion).
4) Cautionary note on precedential force
Because the disposition is “NOT PRECEDENTIAL,” it does not bind future Third Circuit panels. Nonetheless, it is likely to be cited persuasively in district courts
within the circuit, particularly in cases involving private healthcare employers, vaccine mandate terminations, and attempts to plead state action based on regulation
and participation in public programs.