The Department of Labor's Wage Standards Division was not required to implement notice-and-comment rulemaking under the Administrative Procedures Act (APA) when issuing an interpretive letter reversing the agency's position in earlier interpretive letters, according to the United States Supreme Court. In Perez v. Mortgage Bankers Association, the Court held that the Department of Labor did not violate the APA by failing to provide notice and an opportunity to comment before issuing a 2010 interpretative letter establishing that mortgage-loan officers did not fall within the administrative exemption from overtime. This interpretation reversed a 2006 interpretation letter finding that mortgage-loan officers did fall within the administrative exemption.
In concluding that the DOL was not required to undergo formal rulemaking procedures prior to issuing the 2010 opinion letter, the Supreme Court interpreted the APA as having no requirement that an agency use rulemaking procedures to issue an initial interpretive rule, and was therefore also excluded from following APA procedures to amend or repeal an interpretive rule. Perez v. Mortgage Bankers