The Supreme Court Overturns Chevron Doctrine: How It Affects Environmental, Healthcare, and Labor Regulations

Background

The Supreme Court has overturned the landmark 1984 decision in Chevron U. S. A., Inc. v. Natural Resources Defense Council, Inc., also known as the Chevron doctrine. The Chevron doctrine allowed administrative agencies to make reasonable interpretations of ambiguous federal laws in which the court is unable to substitute its interpretation of the statute. However, the Supreme Court’s recent decision in a 6-3 split ruling will likely move the interpretation of regulations from individual agencies to the courts.

The Atlantic Herring Fishermen and the Magnuson-Stevens Fishery Conservation and Management Act

The decision began when Atlantic herring fishermen sued the Department of Commerce over federal rules that forced them to pay for independent observers to monitor their catch. The Magnuson-Stevens Fishery Conservation and Management Act, which gave the Secretary of Commerce the authority over fisheries regulation, delegated it to the National Marine Fisheries Service, which the fishermen argued did not authorize officials to create industry monitoring requirements. They also argued that the NMFS failed to follow the proper rulemaking procedure, which prompted the fishermen to push for the overturning of the Chevron doctrine. The fishermen were supported by conservative legal organizations, the Cause of Action Institute, and New Civil Liberties Alliances, who were financed by the Koch network in millions of dollars.

The Impact on Environmental Regulation

The Supreme Court’s decision to overturn Chevron Doctrine has raised concerns over its effects on various government agencies, such as the Environmental Protection Agency (EPA), labor agencies, and the Food and Drug Administration (FDA). Although the reversal of Chevron will not remove EPA’s legal obligation to regulate climate-warming pollution, it will complicate matters for administrations to defend the agency’s efforts to reduce pollutants from cars and trucks and accelerate transitions to electric vehicles. Furthermore, the ruling also poses additional challenges to the already contested Securities and Exchange Commission’s efforts to mandate public companies to disclose information about their climate risks and carbon emissions.

Impact on Labor Regulations

The reversal of Chevron can significantly impact labor regulations, particularly regarding workplace safety regulations and minimum wage and overtime rules. Business groups who disputed the legislation that raised the wage at which salaried workers become eligible for overtime pay will most likely see the increase in their probability of success without the Chevron precedent. Workers may be affected negatively if these regulations are not enforced.

Impact on Healthcare and FDA Regulations

The ruling also poses a threat to healthcare and the FDA. Without the Chevron doctrine, industry groups may challenge government agency regulations from reimbursements determination by the Center for Medicare and Medicaid Services to impacting outcomes and timelines of FDA approvals. The decision may also result in increased litigation.

Conclusion

The Supreme Court’s decision to overturn Chevron will have profound and pervasive effects on various government agencies, impacting environmental, labor, and healthcare regulations. The decision to revoke Chevron’s doctrine might lead to more litigation, with Chevron being a fundamental part of supporting regulatory efforts to keep air and water clean, promote food and drugs safety, and ensure financial markets’ honesty. Congress may reverse the court’s decision by enacting new legislation that mandates courts to give deference to agencies, but the challenge remains as Congress has not been functional as an institution for many decades.

The importance of the upcoming presidential election cannot be overemphasized as it will determine not only who will be in control of Congress but also which party will retain power within the Supreme Court.

Originally Post From https://wildcat.arizona.edu/155601/news/n-chevron-case/

Nation at stake after Supreme Court overturns Chevron – The Daily Wildcat