Image: SCOTUS
On Friday, the Supreme Court voted 6-3 to overturn a 40-year legal precedent known as the Chevron doctrine, in a decision that expands the power of federal judges to overturn regulations from the executive branch.
Some quick background: The Chevron doctrine, established in a 1984 Supreme Court ruling, instructs federal courts to defer to the legal interpretations of executive branch agencies when laws enacted by Congress aren’t crystal clear.
Over the past four decades, the doctrine has been the basis for thousands of court decisions to uphold federal regulations stemming from laws like the Fair Labor Standards Act, the Clean Air Act, and the Affordable Care Act.
But the Chevron doctrine is now a relic of the past. In Friday’s decision, the Court’s six conservative-leaning justices ruled that US law requires federal courts to defer to executive branch agencies for any factual and policy determinations – but not when it comes to legal interpretations. The Court’s majority said Chevron had improperly granted that power to government experts, instead of judges.
The impact: The Court’s decision means parties who are dissatisfied with federal agency decisions – typically businesses and property owners – can now seek to overturn those regulations by persuading judges that officials exceeded their authority.
Looking ahead… Analysts expect legal challenges to a wide range of major regulator decisions, with potential targets including rules related to vehicle emissions, Medicare/Medicaid, student loan forgiveness, labor protections (overtime pay, unionization, discrimination, etc.), and more.
📊 Flash poll: Do you agree with the Supreme Court’s decision to overturn the Chevron doctrine?
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