DOJ Announces Pursuing False Claims Act Violations Against Recipients of Federal Funds

On May 19, 2025, Deputy U.S. Attorney General Todd Blanche announced that the U.S. Department of Justice will use the False Claims Act (FCA) to enforce the administration’s policies concerning diversity, equity and inclusion (DEI) practices and antisemitism. The FCA is a powerful tool, and its invocation by the DOJ is a signal to federal-funding recipients that they will face increased scrutiny. The May 19 Blanche memo now broadly announces an intention to investigate and pursue alleged FCA violations broadly against all recipients of federal funds, but makes special mention of colleges and universities as a focus of the initiative. Read the full Alert on the Duane Morris website.

Webinar: Post-Election Analysis: Federal Regulatory and Legislative Impacts on College and University Operations

Duane Morris will present the next entry in its webinar series, Boot Camp for Education Legal Leadership: Higher Education at the Political and Legal Crossroads: Protecting Your Institution’s Mission During a Time of Uncertainty, Post-Election Analysis – Federal Regulatory and Legislative Impacts on College and University Operations, to be held on Tuesday, November 12, 2024, at 2:00 p.m. Eastern | 11:00 a.m. Pacific.

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Continue reading “Webinar: Post-Election Analysis: Federal Regulatory and Legislative Impacts on College and University Operations”

DOL Raises the Threshold Salary for Exempt Status Under the FLSA: What the Overtime Expansion Means for the Education Sector

The U.S. Department of Labor (DOL) announced on April 23, 2024 a significant expansion to overtime eligibility via the Final Rule: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees. The Final Rule increases the minimum salary level applicable to the overtime exemptions for executive, administrative and professional (EAP) employees for federal law purposes under the Fair Labor Standards Act (FLSA), but does not change the salary basis or duties components of exempt status.

The Final Rule largely tracks the changes announced in the DOL’s Notice of Proposed Rulemaking (NPRM) on September 8, 2023. This post focuses on the impact of the Final Rule to the education sector.  For a more comprehensive analysis of the Final Rule as applicable to employers in all sectors, including assessment of the potential for legal challenges to the Final Rule, see the Alert Duane Morris published. Continue reading “DOL Raises the Threshold Salary for Exempt Status Under the FLSA: What the Overtime Expansion Means for the Education Sector”

Webinar: Compliance and Best Practices for Catalogs, Publications and Student-Facing Materials

Duane Morris is hosting Compliance and Best Practices for Catalogs, Publications and Student-Facing Materials, the second session in its Boot Camp for Education Legal Leadership series. The webinar takes place  Wednesday, February 28, 2024, at 2:00 p.m. Eastern | 11:00 a.m. Pacific.

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About the Program

The start of the year is an excellent time for institutions to review their policies and establish a review cycle for all of their student-facing publications. In this session, Duane Morris Education attorneys will discuss strategies and best practices for institutions conducting policy, catalog and handbook reviews for the 2023-24 academic year with a focus on the value these materials have in mitigating institutional risk in the current active regulatory climate.

Webinar Replay: The Regulatory Landscape ‒ A Dynamic and Disruptive 12 Month

A replay of Boot Camp for Education Legal Leadership, Session 1: The Regulatory Landscape ‒ A Dynamic and Disruptive 12 Months is available.

EdUp Legal Podcast: The Latest on DOE Regulations

Tony Guida, Duane Morris partner and Team Lead of the Education Industry Group, is featured in the EdUp Legal podcast.

In the episode,  Tony discussed the Department of Education’s most recent suite of regulations impacting institutions’ participation in the Title IV program, specifically with respect to certification, financial responsibility and administrative capability.

Listen to the EdUp Legal podcast, hosted by Deborah Solmor.

U.S. Department of Education Updates Third Party Servicer Guidance

On May 16, 2023, the United States Department of Education (the “Department”) updated its Third Party Servicer Guidance issued in GEN-23-03.  The new Dear Colleague Letter (“DCL”) officially delays indefinitely the previously issued guidance.  It also removes the prohibition on contracts between institutions of higher education and foreign owned or operated third party servicers.

This DCL replaces the prior update posted in a blog by Undersecretary Kvaal, in which he commented that the department was effectively delaying the prior DCL.  This formalizes that announcement.

The DCL indicates that institutions will be provided with at least six (6) months advance notice before the effective date of any future formal guidance.  The deadlines for audit and contractual requirements in any new guidance will be delayed until the institution’s first fiscal year beginning after the effective date for the reporting requirements.  We read this to mean that institutions and Third Party Servicers will not be required to retroactively implement the new guidance.

Finally, the Department also clarified that institutions may contract with foreign owned Third Party Servicers.  It rescinded earlier guidance on this issue.  The Department did note, however, that this issue may be subject to rulemaking in the future.

Institutions and potential Third Party Servicers should continue to evaluate how they may be impacted by new regulation or guidance in this area.  It is clear that the Department is intent on increasing its oversight of Third Party Servicers by expanding the scope of services that fall into the Third Party Servicer bucket in the Higher Education Act.  In addition, the Department has identified Third-Party Servicers and Related Issues for rulemaking in the fall of 2023. Concerned parties should continue to monitor developments from the Department as they arise over the next several months.

Webinar Replay: What Does It All Mean? The U.S. Department of Education’s Regulatory Reach Over Service Providers for Institutions of Higher Education

A video replay of the webinar “What Does It All Mean? The U.S. Department of Education’s Regulatory Reach Over Service Providers for Institutions of Higher Education” is available to view.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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