June 21, 2016
Partner Kate Visosky was quoted in Law360 on the significance of the Supreme Court's ruling in Encino Motorcars v. Navarro, where the Court vacated a Ninth Circuit ruling that auto service advisers should be eligible to receive overtime compensation. The Court ordered the lower courts to reconsider the matter without taking into account Labor Department regulations, which the justices said were issued without adequate explanation.
"The high court's decision affirms that the courts cannot simply rely on the guidance or rulemaking of administrative agencies as justification for judicial decisions, without a reason basis for doing so. It is also a reminder to agencies to provide clear explanations for regulations, especially where the agency is changing its prior position on an issue."