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Administrative Law Keyed to Breyer
Perez v. Mortgage Bankers Association
Citation:
572 U.S. 92, 135 S.Ct. 1199, 191 L.Ed.2d 186 (2015)Facts
The Fair Labor Standards Act exempts certain categories of employees, including those in “administrative” capacities, from minimum wage and overtime requirements. The Department of Labor has authority to define these exemptions through regulations. In 2004, the Department issued regulations stating that employees whose primary duty is selling financial products do not qualify for the administrative exemption. The Department issued opinion letters in 1999 and 2001 stating that mortgage-loan officers did not qualify for the exemption. In 2006, after the 2004 regulations, the Department reversed course and found that mortgage-loan officers did fall within the administrative exemption. In 2010, the Department again reversed position, concluding that mortgage-loan officers have a primary duty of making sales and therefore do not qualify for the exemption. The Mortgage Bankers Association challenged this 2010 interpretation, arguing that under the D.C. Circuit’s Paralyzed Veterans doctrine, the Department was required to use notice-and-comment procedures before significantly changing its interpretation.
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