News & Analysis as of

Alabama Department of Revenue Issues Controversial Proposed Regulation Taxing Out-of-State Vendors

Consistent with Governor Robert Bentley’s public statement last week that he hopes Amazon.com or another internet e-tailer will sue the state of Alabama regarding its position on nexus, the Alabama Department of Revenue...more

2015 Mid-Year Securities Litigation and Enforcement Highlights

Welcome to the 2015 Mid-Year Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team. The purpose is to provide a periodic survey, apart from our team Executive Alerts, on matters we...more

Beware Offering "Examples" In Comments To USDOL

Comments on the U.S. Labor Department's proposed changes in regulations defining the federal Fair Labor Standards Act's Section 13(a)(1) exemptions are, for the moment, still due on Friday, September 4, 2015. USDOL is...more

How Broad is Broad? New DOL Guidance Determines "Most Workers Are Employees"

In a move that is expected to have far-reaching consequences for employers, the U.S. Department of Labor issued new guidance on the classification of independent contractors as employees under the Fair Labor Standards Act...more

DOL Guidance Suggests Many Independent Contractors are Misclassified and Should be Covered by The FLSA

On July 15, the Department of Labor’s Wage Hour Division (WHD) issued guidance on how to identify employees who are misclassified as independent contractors. In a 15-page administrator’s interpretation (AI), WHD head David...more

US Department of Labor Issues Administrator’s Interpretation Aimed At Limiting Independent Contractor Classification

As forecast in our June 12, 2015 blog post David Weil, Administrator of the Department of Labor’s Wage and Hour Division (WHD) has released Administrator’s Interpretation (AI) No. 2015-1, entitled “The Application of the Fair...more

U.S. Supreme Court Upholds Privacy Rights for Los Angeles Hotel Operators

In a win for privacy advocates, the U.S. Supreme Court ruled that a City of Los Angeles municipal ordinance permitting warrantless police searches of hotel registries is unconstitutional. The subject ordinance (Los Angeles...more

Developments in Judicial Deference of Administrative Agency Actions

In my post of April 2, Divided Supreme Court Restricts Provider Challenges to State Medicaid Rates, I wrote about the March 31st Supreme Court decision that providers may not sue in federal court over the adequacy of state...more

Supreme Court Allows Changes to Agencies’ Interpretive Rules without the Notice-and-Comment Rulemaking Process

In March, the Supreme Court upheld an agency’s reversal of its own regulatory interpretation without requiring notice-and-comment rulemaking. Regulated entities now face considerable uncertainty in relying on agencies’...more

Open Season on Provider-controlled Licensing Boards

In a closely followed decision with significant consequences for state licensing boards and their members, the Supreme Court in North Carolina State Board of Dental Examiners v. Federal Trade Commission, 135 S. Ct. 1101...more

How might the Supreme Court’s decision in Perez v. MBA affect the CFPB?

The U.S. Supreme Court’s recent decision in Perez v. Mortgage Bankers Ass’n invalidated a significant line of D.C. Circuit case law known, after the leading case, as the Paralyzed Veterans doctrine. A case involving a series...more

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

NSBA Concerned About Recent Supreme Court Decision’s Impact on OCR Investigations

The National School Boards Association (NSBA) recently expressed its concerns over the Supreme Court’s recent landmark ruling in Perez v. Mortgage Bankers Association, which allows federal agencies to issue “interpretive...more

Notice-and-Comment is Not Required for Changes Made to Interpretive Rules

On March 9, 2015, Justice Sotomayor, writing on behalf of the majority, overturned the Paralyzed Veterans doctrine, which requires federal agencies to use a notice-and-comment process before making a significant revision to...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

Federal Bank Supervisory Agencies May Change Guidance Without Notice-and- Comment Rulemaking

New rulemakings to implement financial reforms leave banking organizations facing a host of uncertainties. Guidance or “interpretative rules” from the financial regulators on the intended scope and application of new rules...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

Supreme Court Confirms That Agency Interpretative Rules Do Not Require Notice and Comment

In a March 9, 2015, decision in Perez v. Mortgage Bankers Ass'n., the U.S. Supreme Court unanimously held that an interpretative rule issued by an administrative agency does not require notice and opportunity for comment,...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

Supreme Court Grants Federal Agencies Wide Discretion in Interpreting Regulations

On March 9, the Supreme Court unanimously ruled that the Administrative Procedure Act (APA) does not require federal agencies to go through the formal rulemaking process when making changes to rules interpreting regulations,...more

U.S. Supreme Court Notice, Comment Not Required for Federal Agencies Interpreting Regulations

The U.S. Supreme Court decided in Perez v. Mortgage Bankers Association that federal agencies are not required to use the Administrative Procedure Act's (APA) notice and comment procedures when issuing or making changes to...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

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