Labor Agency’s Rule Defense Pivots Ahead of High Court Action
The U.S. Department of Labor (DOL) is adjusting its defense strategies in anticipation of a U.S. Supreme Court decision expected to scale back Chevron deference, a doctrine that compels courts to defer to federal agency interpretations of ambiguous laws. This shift is highlighted by the DOL’s recent abandonment of the Chevron argument in defending rules that affect overtime pay and tipped employee wages. Initially, the DOL argued these rules fell under its authority via Chevron deference, but it has since removed this defense in appeals courts, particularly in the conservative Fifth Circuit, signaling a strategic move away from reliance on a potentially weakening legal foundation.
See "Labor Agency’s Rule Defense Pivots Ahead of High Court Action", Rebecca Rainey, Bloomberg News , June 13, 2024