While many were watching for the U.S. Supreme Court’s decision on Chevron deference in Loper Bright Enters. v. Raimondo, No. 22-451, and Relentless, Inc. v. Department of Commerce, No. 22-1219 (June 28, 2024), several other cases could prove just as consequential for federal agency authority.
In Loper, the Court overturned the decades-old Chevron doctrine of judicial deference to a federal agency’s interpretation of an ambiguous statute. Its decision came in response to a pair of cases brought by two fishing vessel operators challenging federal regulations on fishery management in federal waters.
Although the underlying cases were not workplace-related, the decision may significantly affect employers because of the many regulations issued by federal agencies such as the Equal Employment Opportunity Commission (EEOC), Department of Labor (DOL), Occupational Safety and Health Administration (OSHA) and National Labor Relations Board (NLRB) that affect the workplace every day.
An impactful Supreme Court term for federal agencies
Loper Bright Enterprises/Relentless, Inc.
Chevron deference to administrative agencies is overturned.
Jarkesy v. SEC
Civil penalties = right to a jury trial.
Corner Post
Expands the time for challenges to federal regulations.
Podcasts
Hosts: Stephanie L. Adler-Paindiris, Principal and Litigation Co-Leader, and Patricia Anderson Pryor, Principal and Office Managing Principal
“We’re certainly going to see an impact. It may not be immediate, though. There are many entrenched agency regulations that have been around for decades. And we may see courts, at least in the beginning, reflexively enforcing those rules, if only due to inertia. It may be up to the litigants, us, in challenging these long-standing rules to press the issue.”
Hosts: Stephanie L. Adler-Paindiris and Stephanie E. Satterfield, Principals and Litigation Co-Leaders
“The Loper and Relentless decisions, which reversed Chevron deference are going to be a game changer and are going to, as with Muldrow, increase litigation. There’s going to be a real aggressive effort to invalidate guidelines and regulations that administrative agencies pass that do not have a genesis in the statute.”
Key employer takeaways
- Stay abreast of court decisions that may impact regulations.
- Be aware that decisions may be limited to some employers and/or some jurisdictions.
- Employers faced with litigation hinging on certain regulations may consider challenging the rule in question.
- Employers currently in agency litigation where civil penalties may be assessed may consider challenging the proceeding.
- In some circumstances, there may be cause to bring facial challenges to problematic regulations.
