The Department of Labor Issued an Interpretive Rule (Opinion Letter)

question 349

Multiple Choice

The Department of Labor issued an interpretive rule (opinion letter) in 2001 about how mortgage-loan officers were to be treated with respect to overtime pay. The rule was reversed in 2006 then reversed again in 2010. The Mortgage Bankers Association objected to the change, contending the 2010 ruling was invalid because there was no notice-and-comment period for the change. On appeal, the Supreme Court held that notice-and-comment:

• A) ​did not apply to an interpretive rule when the rule was changed, only when it is first enacted.
• B) ​did not apply to an interpretive rule, so the changes were valid.
• C) ​applied to a "substantive" interpretive rule that affected wage payments.
• D) ​applied to an interpretive rule when a change could "impact compensation."
• E) ​none of the other choices are correct.

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Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

Natural Experiments

Research designs that involve observing the effects of naturally occurring variables or events, as opposed to manipulations made by the researcher.

Quasi-experiments

Research designs that attempt to establish cause-and-effect relationships but lack the element of random assignment to treatment or control groups.

External Validity

The extent to which the results of a study can be generalized or applied to contexts outside of the experimental conditions.