On June 28, the U.S. Supreme Court overturned the landmark Chevron decision, which had required courts to uphold a federal agency’s interpretation of a statute as long as it was reasonable. Now, courts are required to exercise their independent judgment in deciding whether an agency has acted within its statutory authority, and courts may not defer to an agency’s interpretation of the law simply because a statute is ambiguous. 

This decision is expected to have a major impact on the employment field, particularly given that every major federal employment agency has relied on Chevron, including the Equal Employment Opportunity Commission (EEOC), Occupational Safety and Health Administration (OSHA), and Department of Labor (DOL), as well as the National Labor Relations Board (NLRB), and have received considerable deference to their own interpretations under Chevron. Going forward, there will likely be an uptick in litigation and agency rules will face increased scrutiny by the courts, resulting in a more even playing field. A copy of the Supreme Court’s decision can be found here.

If you have any questions about the overturning of the Chevron decision or the anticipated implications, please contact one of the authors.