Update
Newsletter
On June 28, 2024, the Supreme Court published a landmark ruling that overturned decades of judicial deference to government agencies under the so-called Chevron doctrine. This decision fundamentally alters the landscape of administrative law. Although the specific impact remains unclear, the reversal of Chevron is sure to affect the world of employee benefits and executive compensation.
Chevron Deference & the Loper Decision
Articulated by the Supreme Court in 1984, Chevron deference required courts to defer to an administrative agency’s interpretation of ambiguous statutes under certain circumstances. In practice, this doctrine granted executive agencies substantial power to interpret law and promulgate regulatory authority.
In Loper Bright Enterprises v. Raimondo (as consolidated with Relentless, Inc., et al. v. Department of Commerce, et al.), the Supreme Court overturned the Chevron doctrine. Chief Justice Roberts, writing for the majority, held that the judiciary should not cede interpretative authority to executive agencies without a clear congressional mandate. The Court’s decision emphasizes judicial independence in statutory interpretation and purports to rein in perceived overreach by administrative agencies. Loper sets aside four decades of judicial philosophy by reference to the centuries-old role of the judiciary as articulated in Marbury v. Madison and the Federalist Papers. The ruling is clear that prior cases decided under Chevron are unaffected by the reversal in Loper.
Impact on Employee Benefits Law
The end of Chevron deference is poised to reshape employee benefits law in many ways, not limited to the following.
These are but a few of the potential ramifications of Loper, with much else to be expected. In all, the elimination of Chevron deference represents a major shift in the law and will demand heightened attention to statutory language and judicial interpretations.