Department of Labor Companionship Rule Doesn’t Comply with Best Practices

Last Wednesday, Office of Information and Regulatory Affairs (OIRA) Administrator Cass Sunstein sent a memo to executive agency heads concerning the cumulative effects of regulation and offered best practices for rulemaking. The memo reveals the prominent federal agency responsible for workers does not meet the Obama administration’s standards. In particular, the Department of Labor’s (DOL) latest regulatory initiative, amending companionship and live-in worker rule, diverges sharply from Sunstein’s best practices.

The memo to agency heads is purported to reinforce President Obama’s Executive Order 13563, “Improving Regulation and Regulatory Review.” The memo and EO on paper request agencies to reach out and alert the potential affected parties (state/local governments, small business, industries, and individuals) of new or existing regulatory changes. In addition, regulators must consult and offer easy ways for the public to participate in calls for comments.