On January 17,2024, The Supreme Court heard oral arguments in the case of Loper Bright Enterprises ET AL, v. Raimondo, Secretary of Commerce, ET AL, No. 22–451, 45 F. 4th 359 & No. 22–1219, 62 F. 4th 621. In this case, a group of commercial fishermen who regularly participated in the Atlantic herring fishery sued the National Marine Fisheries Service (NMSF) after the NMSF put into effect a rule that required the industry to fund at-sea monitoring programs at an estimated cost of $710.00/ day. The fisherman argued that the Magnuson-Stevens Fishery Conservation and Management Act of 1976 did not authorize the Service to create industry-funded monitoring requirements and that the Service failed to follow proper rulemaking procedure. Both the district court and the U.S. Court of Appeals ruled in favor of NMFS decision to impose the $710.00 daily fee  based on the 1984 finding in Chevron U.S.A., Inc. v. NRDC, 467 U.S. 837 (1984). In Chevron, the court found that where statutory guidelines are not clearly defined by legislation, then the courts will give government agencies deference to its policy making as long as its interpretation of the law is reasonable. The fishermen appealed to the Supreme Court and were granted certiorari or a written review by the highest court in the land. 

On Friday, June 28, 2024, the Supreme Court overruled Chevron, finding that under the Administrative Procedure Act (APA) courts may not defer to an agency interpretation of the law simply because a statute is ambiguous. This finding overruled the 1984 decision in Chevron, which essentially gave government agencies Carte Blanche in imposing regulations regarding the environment, public health, workplace safety, and consumer protections. 

How will the Supreme Court’s decision to overrule Chevron impact our economy and businesses moving forward? According to Bill Bright, a New Jersey based fisherman who was a part of the lawsuit, the decision to overturn Chevron will help fishing businesses make a living. Bright stated, “Nothing is more important than protecting the livelihoods of our families and crews.” 

Overturning Chevron will definitely make it more difficult for agencies to impose regulations on the public and private sector that have not been defined by legislation or statutes. Here are just a few examples:

1. Over the last few years, the SEC has put forth an ambitious set of rules, including controversial ones pertaining to climate disclosures, private funds, and digital assets. These rules have been under attack, but with the Court’s decision there is a new path to challenge the SEC’s authority in these and other areas.

2. For the last 40 years, the Environmental Protection Agency (EPA)  used Chevron to impose strict environmental regulations, broadly interpreting the Clean Air Act and Clean Water Act. Most environmental industries found these rules extremely costly and stifling. 

3. The Internal Revenue Service (IRS) Tax Regulations: The IRS has interpreted tax laws to enforce extra taxes or penalties on specific transactions or entities. This made tax planning more complex and unpredictable. 

4. The Department of Labor (DOL): The DOL expanded the Fair Labor Standards Act, making more workers eligible for overtime pay. Employers have had to navigate these new rules, leading to increased labor costs. 

5. The Fair Trade Commission (FTC) Antitrust Actions: The FTC blocked mergers or acquisitions and regulated business practices deemed anti-competitive, interpreting antitrust laws. This impacted the business landscape and market competition. 

6. Occupational Safety and Health Administration (OSHA) Safety Standards: OSHA enforced new workplace safety standards, interpreting the Occupational Safety and Health Act. Businesses have had to adjust to these ever evolving requirements. 

The decision to overturn Chevron affects individuals as well as businesses.  Every individual, whether they realize it or not, is impacted by the regulations that are imposed on us by governing entities. Fees for a driver’s license and continued fees to renew your license, building permits to build on your own property, regulations and of course, fees regarding whether the vehicle you drive is smog compliant in the state you live in, professional  licensure requirements and fees that go along with that licensure, and continued fees to renew your license.  We have all been affected by the over-reaching hand of our government. Maybe this decision is a gift to the people to take back their voice and be a country that is governed by the people and for the people. 

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