The recent U.S. Supreme Court decision in the companion cases of Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce, 603 U.S. __ (Jun. 28, 2024), is poised to be a significant legal milestone, especially in the realm of administrative law and its implications on employment laws. By a vote of 6-3, the justices overruled the landmark decision in Chevron v. Natural Resources Defense Council, 467 U.S. 837, 104 S. Ct. 2778 (1984), which gave rise to the decades-old maxim known as the Chevron doctrine. The case was a direct challenge to the Chevron doctrine that has allowed federal agencies considerable latitude in interpreting ambiguous statutory provisions. The decision marks a significant step toward a more active judiciary and is likely to reshape the administrative landscape by altering the balance of power between the judiciary and administrative agencies. 

The ‘Chevron’ Doctrine and ‘Loper Bright Enterprises v. Raimondo’

The Chevron doctrine established that courts should defer to an administrative agency’s reasonable interpretation of an ambiguous statute that it administers. This deference has enabled agencies to issue regulations and guidance with significant authority, shaping the implementation of laws in numerous fields, including employment law.