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:

Net Transfers

The difference between the total transfers into an economy, such as remittances and foreign aid, and the total transfers out.

Current Account Balance

The balance of trade between a country and its trading partners, reflecting the difference between exports and imports of goods and services.

Foreign Corporation

A company that is registered and operates in a country different from the country where it was incorporated, subject to the laws and regulations of the host country.

Insurance

A financial product that transfers the risk of financial loss from an individual or entity to an insurance company in exchange for premium payments.