Federal agencies may lose considerable power to interpret and enforce administrative rules and regulations given the U.S. Supreme Court’s recent Loper decision. This decision rejects the longstanding “Chevron deference doctrine,” established in 1984, which federal agencies have relied upon as a basis for their role in rule making and administrative enforcement.
Business Takeaway: While this decision will undoubtedly impact federal agencies and rule making, the short-term impact is uncertainty. We can only guess as to how the ruling will affect existing regulations (e.g., the DOL vis-à-vis FLSA exemptions, the FTC vis-à-vis non-compete law), and how precisely it will impact future rule making. Stay tuned.