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

question 329

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 when the impact was "de minimus."
• 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:

Innovation of New Ideas

The process of creating and implementing new concepts, products, or solutions.

Creative Destruction

The replacement of existing products, processes, ideas, and businesses with new and better ones.

Economies of Scale

The economic benefits that companies gain from their size of operation, whereby the expense per output unit typically diminishes as the scale expands.

Large Quantities

A significant amount or number of items or material, often related to production or purchasing operations.