MBA Successful in Appeal of Overtime Compensation Case
On July 2, in the case of Mortgage Bankers Association v. Seth Harris, the U.S. Circuit Court of Appeals for D.C. gave MBA a significant victory. The Court ruled in MBA’s favor in the appeal of a lower court decision on how the Department of Labor imposed overtime compensation requirements on loan officers under the Fair Labor Standards Act.
In its suit, MBA asserted that DOL did not follow proper rulemaking procedures in 2010 when the Department withdrew its previous opinion that certain loan officers qualify for the Administrative Exemption from overtime requirements under FLSA rules. MBA had contended that the DOL’s withdrawal of the 2006 opinion letter should not have occurred without a formal notice and an opportunity for public comment. In its ruling, the court ordered DOL to vacate the 2010 Administrative Interpretation.
In response to the decision, the Department may choose to ask for a rehearing by a larger panel of the Court or appeal the decision to the Supreme Court in order to preserve its ability to issue interpretations of this kind without notice and comment. Alternatively, the Department might seek to readopt the challenged policy through a formal notice and comment process. Please click here<https://mba-pac.informz.net/z/cjUucD9taT0yNDY3OTAwJnA9MSZ1PTc4MTYyNzU0MCZsaT0xMjgzODcxNg/index.html> to view the Court’s ruling.
