Coalition Asks Supreme Court To Reconsider Important Standard For Evaluating Federal Regulations

During its next term, which starts in October 2023, the U.S. Supreme Court will consider whether to overrule or clarify its Chevron deference standard, a precedent that requires that other federal courts defer to federal agencies on regulatory matters if the agency’s interpretation is reasonable and if a federal statute is ambiguous.

As the Congressional Research Service (CRS) has explained, “the Chevron framework usually applies if Congress has given an agency the general authority to make rules with the force of law. … Where a statute is susceptible to multiple reasonable interpretations, the Chevron framework requires courts to defer to an agency’s reasonable interpretation of the statute. The Chevron framework, accordingly, shifts interpretive authority from the federal courts to agencies in certain circumstances.” (Read the full CRS report on Chevron here.)

The Coalition for a Democratic Workplace (CDW), which MSCI is a member of, recently filed an amicus brief in the case that asked the Supreme Court to reform the  Chevron standard so it is less deferential to federal agencies.

The CDW also provided examples of how inconsistent National Labor Relations Board (NLRB) precedent, established with the protection of Chevron, has led to unpredictability in labor relations. In a statement, the CDW said, “The National Labor Relations Board’s record of flip-flopping on its policy interpretations with each change in administration has left employers unclear about their obligations under the law and employees unsure of their rights. Courts have often tolerated this vacillation in the name of Chevron deference. For this reason, we urge the Supreme Court to consider the [NLRB’s] reckless behavior as it decides on appropriate court deference to agencies.”

Read more about the case here.