Rhea Lana, Inc. v. DOL, No. 15-5014 (D.C. Cir. 2016)
Annotate this CaseRhea Lana sought pre-enforcement declaratory and injunctive relief against the Department’s determination that it was out of compliance with the Act. The Department sent Rhea Lana a letter informing it that its failure to pay its salespeople violates the Fair Labor Standards Act (FLSA), 29 U.S.C. 216(e)(2). The court concluded that the Department’s letter to Rhea Lana is final agency action because it is more than mere agency advice. By notifying Rhea Lana that the company was in violation of its wage-and-hour obligations, the court concluded that the letter rendered knowing any infraction in the face of such notice, and made Rhea Lana susceptible to willfulness penalties that would not otherwise apply. Therefore, the letter transmitted legally operative information with a “legal consequence” sufficient to render the letter final. The court reversed the district court's dismissal of the suit.
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