Executive Summary: On March 9, 2015 the U.S. Supreme Court held that a federal agency is not required to engage in notice-and-comment rulemaking when it issues an interpretation of a regulation that is significantly different from its prior interpretation. In Nickols v. Mortgage Bankers Association, the Court overruled a line of cases established by the Ninth Circuit, which required administrative agencies to engage in notice-and-comment rulemaking when changing a prior administrative interpretation of an agency regulation. Although the Court’s ruling specifically addresses the actions of the U.S. Department of Labor (DOL), it could have significant ramifications in other areas as federal agencies continue their efforts to implement the Obama Administration’s aggressive employment related agenda.
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