Congress Introduces Bill to Restore Chevron Deference to Agencies’ Rules

Led by Sen. Elizabeth Warren, D-Mass., Democratic senators have introduced a bill to restore Chevron deference to federal agencies’ rules on ambiguous provisions of laws. The U.S. Supreme Court overruled Chevron—a 40-year-old decision that gave federal agencies the final say over how to interpret congressional statutes—in June.

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Bill’s Provisions

The Stop Corporate Capture Act would codify the Chevron doctrine and strengthen the rulemaking process.

The bill would:

• Streamline the White House’s review period for regulations, creating a 120-day time limit for review.
• Authorize agencies to reinstate rules that are rescinded by Congress through the Congressional Review Act.
• Reform agencies’ cost-benefit analysis to emphasize the public benefits of a rule, including nonquantifiable benefits such as promoting human dignity, securing child safety, and preventing discrimination.

The bill also would expand public participation in rulemaking and protect independent expertise in rulemaking.

(Warren press release)

Supreme Court Ruling

In June, the Supreme Court overruled a 1984 decision that held courts should defer to federal agencies’ reasonable interpretations of ambiguous statutes passed by Congress.

Chief Justice John Roberts Jr. wrote in a June 28 majority opinion that the 40-year-old Chevron decision that gave federal agencies the final say over how to interpret congressional statutes was misguided because agencies have no special competence in resolving statutory ambiguities, adding that “courts do.”

The Supreme Court “has made a monumental decision,” said Emily M. Dickens, SHRM chief of staff, head of government affairs, and corporate secretary. “This case highlights a long-standing issue—the overreliance on regulatory bodies for policymaking in the absence of congressional action. The lack of consensus and movement on important issues in Congress has exacerbated this problem. Even before the Supreme Court’s decision, there was confusion with each new administration and its evolving and revolving regulatory agenda.”

Agency rules now may be more susceptible to court challenges. As a result, employers may find themselves responding to court interpretations of agency rules more than ever before. This may pose a particular challenge for multistate employers.

(SHRM )

Bill’s Chances of Enactment Slim in This Congress

With Republicans in control of the U.S. House of Representatives and generally supportive of the Supreme Court decision, it appears unlikely that the legislation has much chance of becoming law during this Congress. In addition, a Republican bill that passed the House last year would require congressional approval before any major federal regulations could take effect. That measure has not advanced in the Democratic-led Senate.

(NBC News)