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Supreme Court Allows Agencies to Reinterpret the Law at Their Discretion

In a decision published on March 9, 2015, the Supreme Court ended the D.C. Circuit Court’s Paralyzed Veterans doctrine, which required administrative agencies to utilize the Administrative Procedure Act’s (APA)...more

Ninth Circuit Holds Service Advisors Non-Exempt Under FLSA Dealership "Salesman" Exemption; Section 7(i) Exemption Is Still...

The Ninth Circuit U.S. Court of Appeals (with jurisdiction over the states of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, and Washington) has ruled in Navarro v. Encino Motorcars, LLC that Service...more

ERISA — 5 Quick Points: Blowing a Deadline for Decision is Not Necessarily Fatal to Abuse of Discretion Standard

You already know that ERISA regulations require the plan administrator to render a decision on an administrative appeal within 45 days....more

U.S. Supreme Court Weighs in on Labor Department’s Interpretation of Overtime Rules for Mortgage Loan Officers

We know that many of you are aware of the U.S. Supreme Court's decision in Perez v. Mortgage Bankers Association. The Court held that the U.S. Department of Labor was not required to follow notice and comment procedures in...more

Ninth Circuit Rules That Harmless Procedural Violation Does Not Alter Standard of Review

The Ninth Circuit held that a plan administrator’s failure to render a decision on a long-term disability benefits claim within the period mandated by the plan and ERISA did not alter the standard of review that the court...more

Supreme Court’s Perez Decision Shines the Light on Federal Agencies’ Authority to Use “Interpretations” (Often called Shadow...

Over the last three decades, federal agencies have increasingly used “interpretations” to “explain” what a formal regulation means, rather than to go through the more expensive, complicated and slow process of changing the...more

U.S. Supreme Court Upholds Validity of Department of Labor’s Interpretation on Overtime Pay for Mortgage Loan Officers

For the past several years, an action by the Mortgage Bankers Association has been brewing in the courts challenging the U.S. Department of Labor (“DOL”) for issuing contradictory opinion letters on whether mortgage loan...more

Supreme Court Ruling Validates DOL’s 2010 Interpretation Regarding FLSA Status of Mortgage-Loan Officers

The Supreme Court recently rejected a challenge to the validity of a 2010 interpretation by the U.S. Department of Labor (the “DOL”), which had concluded that the administrative exemption of the Fair Labor Standards Act...more

Reed Smith LLP Advises Multistate Tax Commission Work Group on Class Action and False Claims Act Model Statutes

Last week, the Multistate Tax Commission (the “MTC”) conducted its 2015 Winter Committee Meetings in Kansas City, Missouri. Among the agenda topics were model provisions concerning the application of consumer class action and...more

Supreme Court Holds Notice-and-Comment Rulemaking Not Required to Change An Interpretive Rule

When federal agencies change their interpretive rules, they are exempt from the formal notice-and-comment rulemaking requirements of the Administrative Procedures Act (APA), says the Supreme Court in its recent ruling in...more

Supreme Court Ruling Makes Mortgage Loan Officers Eligible for Overtime Pay

Federal agencies now have the authority to interpret their own rules. On March 9, 2015, in Perez v. Mortgage Bankers Ass’n, No. 13-1041, slip op. (U.S. Mar. 9, 2015), the United States Supreme Court effectively gave...more

DHS and DOL to Issue Joint Interim Final Rule on H-2B Petitions

As previously-reported, on March 4, 2015, the federal district court in the Northern District of Florida vacated the Department of Labor’s (DOL) 2008 H-2B regulations on the ground that DOL lacks authority under the...more

U.S. Supreme Court Holds Agency Interpretations Are Not Subject To Notice-and-Comment Rulemaking Requirement

In 2004, the DOL revamped its regulations regarding the Fair Labor Standards Act (FLSA) administrative exemption. In 2006, the Bush DOL issued an opinion letter finding that mortgage loan officers qualified for the...more

Mortgage Loan Officers are Not Exempt Employees per the DOL and the Supreme Court Says that is Okay

The legal ping-pong match between the Department of Labor (DOL) and the Mortgage Bankers Association (MBA) over whether mortgage loan officers are eligible for overtime appears to be at an end. The Supreme Court recently...more

Who Needs Rules? The DOL Wins Supreme Court Battle In Mortgage Loan Officer Administrator Interpretation vs. Rule Making

When a federal agency deviates significantly in its historic interpretation of a regulation – in this case, doing a complete 180° on whether mortgage loan officers are exempt from overtime under the Fair Labor Standards Act –...more

Can Mortgage Loan Officers Still be Exempt from FLSA Overtime Requirements?

On March 9, 2015, the United States Supreme Court issued an opinion upholding a 2010 Department of Labor (DOL) interpretative rule finding that mortgage loan officers are generally not administratively exempt from Fair Labor...more

Supreme Court Sides with DOL and Overturns Longstanding DC Circuit Ruling Under Administrative Procedure Act

Perez v. Mortgage Bankers Assn., No. 13 1041: On Monday, March 9, 2015, the Court ruled that a longstanding decision from the DC Circuit under the Administrative Procedure Act (“APA”) was incorrectly decided in contravention...more

Supreme Court Sides with the DOL Regarding Interpretative Rules

In a unanimous decision on Monday, March 9, 2015, the United States Supreme Court gave the Department of Labor (DOL) broad discretion to revise interpretive guidance with little notice. ...more

U.S. Supreme Court Holds That DOL May Change Interpretations of Regulations Without Public Notice and Comment

On March 9, 2015, the United States Supreme Court ruled unanimously in two consolidated cases that a federal agency does not have to go through the formal rulemaking process, which includes providing public notice and an...more

Supreme Court Says Agencies Can Change Rule Interpretation Without Notice and Comment

Companies subject to federal agency regulations sometimes face situations where measures taken to comply with such rules work one day, and then result in violations of those rules the next. Federal administrative agencies...more

Supreme Court Update: Perez V. Mortgage Bankers ASS'n (13-1041), Dep't Of Transportation V. ASS'n Of American Railroads (13-1080)...

It's been a great week for admin-law junkies; maybe not so much for the D.C. Circuit, which suffered two unanimous reversals in Perez v. Mortgage Bankers Ass'n (13-1041) and Dep't of Transportation v. Ass'n of American...more

Supreme Court Authorizes the DOL to Change its Interpretative Guidance without Public Input

On March 9, 2015, the U.S. Supreme Court unanimously held in Perez v. Mortgage Bankers Association, that the Department of Labor (DOL) may issue its interpretations of wage and hour regulations without seeking input from the...more

Mortgage Loan Officer Status Clarified by U.S. Supreme Court

The Supreme Court has concluded that interpretations issued by a federal agency are not subject to rule-making processes, such as posting for comment. Thus, as a practical matter it upheld the interpretation —the latest in a...more

The Merry-Go-Round Continues

The Supreme Court says federal agencies may reverse their legal interpretations, without giving notice to the public of a proposed change and considering comments on the proposal. Perez v. Mortgage Bankers Association, No....more

Supreme Court Holds Federal Agencies May Reverse Their Positions Through Informal Guidance

On March 9, 2015, the U.S. Supreme Court issued its decision in Perez v. Mortgage Bankers Ass’n, No. 13-1041 (Mar. 9, 2015), holding federal administrative agencies may amend or repeal interpretive rules without following...more

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