The U.S. Supreme Court recently agreed to hear a case that could significantly alter the power of federal agencies.
The justices will weigh whether to overturn the longstanding Chevron precedent, which holds that when Congress wrote a statute without a clear meaning, courts should defer to the federal agency applying the law, unless its directives were unreasonable. Departments and agencies that enforce employment laws, such as the U.S. Department of Labor and the U.S. Equal Employment Opportunity Commission, could be impacted.
For example, "the entire structure for overtime pay and tips relies on Chevron," said Tim Taylor, an attorney with Holland & Knight in Tysons, Va.
Likewise, "many executive orders have enacted employment policy through government contracting— [regarding] minimum wage, vaccine requirements, unionization rules, discrimination rules—based on obscure presidential authority. If Chevron is overruled, those rules become harder to justify by the agencies tasked with implementing presidential directives," he said.
"The court overruling or limiting Chevron would constitute a watershed decision in administrative law, greatly increasing the prospects of businesses, organizations and individuals successfully challenging administrative action in court under the Administrative Procedure Act," said Misha Tseytlin, an attorney with Troutman Pepper in Chicago.
The case, Loper Bright Enterprises v. Raimondo, challenges whether the federal government can force...
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