Supreme Court Overturns Chevron: The Future of Administrative Law

Supreme Court Overturns Chevron, Ending 40 Years of Deference to Administrative Agencies

In a landmark decision, the Supreme Court has overturned Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., bringing an end to 40 years of deference to administrative agencies. The case, Loper Bright Enterprises v. Raimondo, No. 22-451, marks a significant shift in administrative law, with the Court holding that courts, not agencies, are best suited to interpret ambiguous statutory provisions.

Chief Justice Roberts, writing for a 6-3 conservative majority, emphasized the importance of courts exercising independent judgment in determining whether an agency has acted within its statutory authority. This decision represents a sea change in how courts will review administrative agencies’ exercise of power.

However, the Court made it clear that all agency rules enforceable before the Loper Bright decision remain in effect. The decision does not immediately invalidate prior decisions relying on Chevron deference, providing some stability for entities subject to administrative authority.

While the end of Chevron deference may lead to challenges to longstanding rules based on statutory ambiguity, the administrative state is not coming to an end. The decision acknowledges the validity of Skidmore v. Swift, which grants some deference to agency interpretations based on their thoroughness and reasoning.

Despite the shift in deference, Congress’s ability to delegate authority to agencies remains intact. Regulations stemming from explicit statutory authority, such as certain DOL regulations related to ERISA, may still stand even without Chevron’s protection.

The decision also has implications for agency guidance, such as the EEOC’s Title VII guidance and the NLRB’s regulatory efforts. While courts have rarely granted Chevron deference to these agencies, the end of Chevron deference may impact how federal courts view their regulatory guidance.

Looking ahead, the Supreme Court’s decision in Loper Bright is not the end of the administrative state, but it signals a continued erosion of agency power. Challenges to agency authority, such as those seen in SEC v. Jarkesy, may further reduce the power of administrative agencies.

As developments unfold, legal experts will continue to monitor the impact of the Supreme Court’s decision on administrative law. Clients are advised to stay informed and consult with legal counsel for any questions or concerns regarding the implications of the end of Chevron deference.