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Administrative Law Keyed to Schwartz
Warshauer v. Solis
Citation:
577 F.3d 1330 (2009)Facts
Michael Warshauer is an attorney specializing in Federal Employers Liability Act cases who was appointed as a designated legal counsel (DLC) by the United Transportation Union (UTU). As a DLC, Warshauer is recommended by the UTU to its members for representation in workers’ compensation and personal injury cases, offering legal counsel at a reduced fee of 25% of the recovery. In 2005, the Secretary of Labor issued website advisories specifically identifying DLCs as “employers” under the LMRDA and thus subject to Form LM-10 reporting requirements for payments made to unions or union officials. The Secretary also established a fixed $250 threshold for the de minimis exemption, replacing the previous case-by-case determination of what constituted “insubstantial value.” Warshauer challenged these advisories, arguing that they represented substantive rule changes requiring notice and comment rulemaking under the APA and that the Secretary’s interpretation of “employer” under the LMRDA was inconsistent with the statute’s purpose.
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