Fearful that a Department of Labor regulation was unjustly punishing employers providing generous family and medical leave benefits to employees, the U.S. Supreme Court, in Ragsdale v. Wolverine, 122 S. Ct. 1155 (March 19, 2002), held that the DOL impermissibly expanded the scope of the Family and Medical Leave Act by drafting a regulation that imposed a “categorical penalty” on employers simply because they failed to designate an employee’s leave as FMLA leave.
The ruling also resolved a court split across the country (including one between the District Court of New Jersey and the Southern District of New York) regarding the validity of the regulation.
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