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Docket No.: 13-1052
Certiorari Granted: June 16, 2014
Argued: December 1, 2014
Consolidated with: Docket No. 13-1041

PartyNames: Jerome Nickols, et al.s v. Mortgage Bankers Association
Petitioner: Jerome Nickols, et al.s
Respondent: Mortgage Bankers Association

Court Below: United States Court of Appeals for the District of Columbia Circuit
Citation: 720 F.3d 966
Supreme Court Docket

Jerome Nickols, et al.s
Mortgage Bankers Association

The Administrative Procedure Act, 5 U.S.C. $$ 551-59, "established the maximum procedural requirements which Congress was willing to have the courts impose upon agencies in conducting rulemaking procedures." Vt. Yankee Nuclear Power Corp. v. Natural Res. Def. Council, Inc., 435 U.S. 519, 524 (1978). Section 553 of the Act sets forth notice-andcomment rulemaking procedures, but exempts "interpretative rules," among others, from the notice-and-comment requirement. 5 U.S.C. $ 553(b). The D.C. Circuit, in a line of cases descending from Paralyzed Veterans of America v. D.C. Arena L.P., 117 F.3d 579 (D.C. Cir. 1997), has created a per se rule holding that although an agency may issue an initial interpretative rule without going through notice and comment, "[o]nce an agency gives its regulation an interpretation, it can only change that interpretation as it would formally modify the regulation itself: through the process of notice and comment rulemaking." Id. at 586. In this case, the D.C. Circuit invoked the Paralyzed Veterans doctrine-which is contrary to the plain text of the Act, numerous decisions of this Court, and the opinions of the majority of circuit courts-to invalidate a Department of Labor interpretation concluding that mortgage loan officers do not qualify for the administrative exemption under the Fair Labor Standards Act.

Question Presented:

notice-and--comment rulemaking.


December 1, 2014

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