This past week, the U.S. Supreme Court significantly curtailed federal regulatory power by overturning a 1984 precedent that had allowed government agencies to interpret the laws they enforce. The justices ruled 6-3 to overturn lower court decisions against fishing companies challenging a government-run program, partially funded by the industry, that monitored herring overfishing off New England's coast. This decision is the latest in a series of rulings by the Supreme Court's conservative majority that have limited the authority of federal agencies.
The overturned precedent stemmed from a ruling involving oil company Chevron, which had established that judges should defer to reasonable federal agency interpretations of ambiguous U.S. laws, a principle known as "Chevron deference." This doctrine has long been opposed by conservatives and business interests. In the decision, Chief Justice John Roberts wrote, "Chevron is overruled. Courts must exercise their independent judgment in deciding whether an agency has acted within its statutory authority."
This decision specifically also raises questions as to whether the FTC’s recent ban on Noncompete clauses shall be upheld. The attorneys at Outside Legal Counsel LLP will continue to monitor these developments and provide updates.
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