Today, the United States Supreme Court overturned its own 40-year-old decision regarding the role of Federal courts in interpreting Federal statutes.

In 1984, in a case known as Chevron, the Court held that if a federal law is unclear as to its meaning, or silent on an issue, the courts must defer to the interpretation of the administrative agency responsible for overseeing the law.

Today, the Court changed its mind, holding that Chevron deference is no longer applicable, and that courts must exercise their own independent judgment in interpreting statutes and determining if an agency has acted within its authority when promulgating regulations.

Of note to employers, this may ultimately result in new interpretations of key Federal employment laws, as courts will no longer have to follow regulations and interpretations by agencies such as the EEOC and Department of Labor, if the courts determine that they are contrary to the meaning of a law or the intent of Congress.

The Court’s full decision is available here: 22-451 Loper Bright Enterprises v. Raimondo (06/28/2024)