News & Analysis as of

Labor & Employment E-Note - March 2015

In This E-Note: - Expanding Eligibility: Is Your FMLA Policy Ripe for Misinterpretation? - New Year’s Resolution Continued: The Multi-State Non-Compete Agreement - The Corporate Board: The False Claims...more

DOL Secretary Tells Congress New FLSA Regulations Are Delayed, Outlines Department Priorities

Last week, Secretary of Labor Thomas Perez testified during a hearing held by the House Education and Workforce Committee to discuss President Obama’s budget proposal for the Department of Labor. Secretary Perez’s testimony...more

FLSA lawsuits on the rise

Statistics released earlier this month by the Administrative Office of the U.S. Courts show an 8.8% increase in the number of Fair Labor Standards Act (“FLSA”) cases in the year ending in September 2014 as compared to 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

Supreme Court Rules That Agency Interpretive Rules Are Not Subject to Notice-and-Comment Rulemaking

Recently, the Supreme Court issued a unanimous judgment that government agency "interpretive rules" are not subject to notice-and-comment rulemaking, but cautioned that those same rules do not carry the "force and effect of...more

Potential New Salary Minimum for Exempt Employees

The test for classifying employees as exempt from the Fair Labor Standards Act’s overtime requirements may be briefly summarized as follows: the employee must be paid on a salary basis (i.e., receive the same base salary...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

February Comes and Goes with No Action by DOL on New FLSA Regulations

The calendar has flipped from February to March, but there is still nothing from the Department of Labor regarding new regulations governing the Fair Labor Standards Act. Don’t worry, you haven’t missed anything. The DOL...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

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

Federal FMLA in Flux: “Spouse” Revised and “Expired” Forms Revived

The U.S. Department of Labor’s (DOL) Wage and Hour Division announced a Final Rule revising the regulatory definition of "spouse" under the Family and Medical Leave Act of 1993 (FMLA). Effective March 27, 2015, the federal...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

Supreme Court Removes a Major Hurdle for Administrative Agency Rulemaking

On March 9, 2015, the Supreme Court ruled unanimously that when a federal administrative agency wants to amend or repeal an “interpretive rule,” it does not have to follow the notice-and-comment procedures set forth in the...more

Supreme Court Allows Agencies to Re-Interpret Their Regulations Without Rulemaking

On March 9, 2015, the Supreme Court wiped away a longstanding judicial doctrine that had placed greater procedural requirements on a federal agency when it changes its prior interpretation of a federal regulation....more

U.S. Supreme Court Reinstates Rule that Mortgage Loan Officers Are Not Exempt From Overtime Laws

On March 9, 2015, the United States Supreme Court decided an important case for financial institutions concerning the treatment of Mortgage Loan Officers ("MLO's") under the Fair Labor Standards Act ("FLSA"). The general rule...more

Supreme Court Eliminates Notice-and-Comments for Some Agency Interpretations

On March 9, 2015, the Supreme Court of the United States ruled that the Paralyzed Veterans doctrine, which requires an agency to use the notice-and-comment procedures of the Administrative Procedure Act (APA) when issuing a...more

A Cautionary Note On That "Companionship Services" Rule

As we have previously reported, a federal district court for the District of Columbia recently vacated new U.S. Department of Labor regulations promulgated under the Fair Labor Standards Act, which (1) barred third-party...more

DOL Wage and Hour Division Announces Fiscal Year 2014 Recovery of $240 Million From Employers

Last week, Department of Labor Wage and Hour Division (WHD) Administrator Dr. David Weil, who we have profiled in the past, announced on the DOL’s blog that WHD recovered more than $240 million dollars from employers on...more

Department of Labor Seeks to Put New FLSA Regulations for Homecare Workers Back on Track

Last week marked a new battle in the war the U.S. Department of Labor (DOL) has waged against the homecare industry. Appealing two federal court rulings that invalidated new regulations extending minimum wage, overtime and...more

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