A recent opinion shows how the U.S. Supreme Court has increasingly looked favorably on individuals and companies that challenge the power of federal agencies.
In a 5-4 decision on May 25, the court ruled that the U.S. Environmental Protection Agency (EPA) and the Army Corps of Engineers cannot regulate wetlands that are not directly connected to waters of the U.S. This limits the scope of the federal Clean Water Act.
The case illustrates how the court might be likely to rule when employers face legal battles with the U.S. Department of Labor, U.S. Occupational Safety and Health Administration, [KK1] or the U.S. Equal Employment Opportunity Commission.
"The ruling signals the court's willingness to ignore administrative rulings and agency interpretations even when the agency's position has received deference in the past. Given recent administrations' use of agency rulemaking to circumvent the gridlock in Congress, it may be more difficult for the Biden administration to do so without facing appeals, delay and negative rulings," said Pamela Moore, an attorney with McCarter & English in Hartford, Conn.
"The court is likely not going to sit back and allow agency rulemaking to take place without check. Unless the rule is clearly within the authority granted to the agency through the relevant statutory language, the court appears more than willing to block agency actions," she added.
Background
The case, Sackett v. EPA, involved a private property near Priest Lake in Idaho....
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