Supreme Court Overturns Longstanding Chevron Doctrine
|
APPLIES TO All Employers |
EFFECTIVE June 28, 2024 |
QUESTIONS? Contact HR On-Call |
Quick Look
|
Discussion
On June 28, 2024, the United States Supreme Court overturned the longstanding Chevron doctrine. Issued over 40 years ago, the Chevron doctrine created a two-step framework to review whether regulations issued by federal agencies are valid and consistent with their interpretation of the laws enacted by Congress. The first step was to look at the underlying statute and determine if it was clear or ambiguous. If the law was clear, the analysis ended. If the law was ambiguous or did not address the issue at hand, then the court would determine whether the federal agency acted reasonably when issuing the regulation that attempted to clarify the law. Even if there may have been a better interpretation, the court had to defer to the agency’s decision. This created a low burden for agencies to defend their regulatory actions which meant courts have been deferring to agency decisions for decades.
Now, in Loper Bright Enters. v. Raimondo, the Supreme Court ruled the Chevron doctrine conflicted with the Administrative Procedure Act (APA) which commands courts, and not federal agencies, to decide relevant questions of law and interpret statutes. The Court found that the APA makes it clear that federal agencies are not entitled to deference when they interpret statutes as that is the role of the courts. Courts can still look at the agency’s interpretation and its rationale, especially if the interpretation has remained consistent over time. Also, if a statute expressly authorizes an agency to take action, then courts must also respect that delegation of authority.
It remains to be seen how this ruling will impact pending legal challenges to agency authority. For the moment, this ruling does not impact employers since the underlying case involved fishing vessel operators challenging fishery management in federal waters. This ruling did not specifically address regulations and guidance from the Equal Employment Opportunity Commission (EEOC), Department of Labor (DOL), Occupational Safety and Health Administration (OSHA), and National Labor Relations Board (NLRB). However, there are a number of legal challenges pending against recently issued regulations from these agencies, so employers should continue to look for upcoming developments in those cases.
Action Items
- Follow updates regarding pending legal challenges to labor and employment agency actions.
- Consult with legal counsel regarding any immediate impacts.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase