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 administrative exemption. In 2010, the Obama DOL withdrew the 2006 opinion letter and issued an Administrator's Interpretation finding that mortgage loan officers did not qualify for the administration exemption. The Mortgage Bankers Association's (MBA) challenged the 2010 interpretation arguing that it was invalid under Paralyzed Veterans of America v. D.C. Arena L.P., 117 F.3d 579 (1997) because it significantly altered the DOL's 2006 opinion letter and it was issued without employing the notice-and-comment procedures required by the Administrative Procedures Act (APA). The district court rejected the argument, finding that the MBA had not demonstrated substantial and justifiable reliance on a well-established agency interpretation. The D.C. Circuit reversed, finding that reliance is but...