On June 28, 2024, the U.S. Supreme Court overturned the long-standing Chevron deference, bringing uncertainty about future court handling of rulemaking litigation. In a 6-3 ruling, the majority held that the high court's test established in 1984's Chevron v. Natural Resources Defense Council improperly prioritized the executive branch's legal interpretations over the judicial branch's.
Chief Justice John Roberts, writing for the majority, criticized the 40-year-old doctrine as "fundamentally misguided" and in need of "pruning." He argued that the rule's assumption that ambiguities in statutes were congressional delegations to agencies was a "fiction," enabling each presidential administration to change regulations affecting every major industry without going through the legislative process.
"By its sheer breadth, Chevron fosters unwarranted instability in the law, leaving those attempting to plan around agency action in an eternal fog of uncertainty," Justice Roberts said.
How does this ruling impact the golf industry? While it's too early to fully understand the implications, we can expect future legislation to reflect its impact. The court indicated that this ruling does not affect previous decisions made based on Chevron, but what about those that did not?
Some of the most recent rules issued by the Executive Branch include the Department of Labor’s Joint-Employer Rule, the Independent Contractor Rule, and their latest Overtime Rule. Based on this court decision, we should expect the judiciary branch to settle these and other administration-issued rules.
The problem begins with Congress’s tendency to write ambiguous regulations, expecting the Executive Branch to provide direction for implementation. Over time, the shifting political parties in the White House have resulted in what many see as biased policymaking. When one party opposes a policy, it relies on the Judiciary Branch to decide who’s right.
Do we need all these rules? From my perspective, the answer is yes and no. Whether in the form of law or regulation, individuals and businesses need clear guidance to ensure their actions conform to the law. If the law is written more clearly so its intent is known to the Executive Branch, the rules would likely survive judicial review.
The answer seems simple, but it’s not. The Supreme Court has now placed the burden of governing on two bodies: the Legislative and Judicial Branches. For Congress, writing laws is their expertise; however, writing executable orders may not be.
We hope to gain more clarity over the next weeks and months on the impact this ruling will have on our industry. We may find a period of calm on the regulatory front, but with a national election looming, don’t expect that calm to last too long!
The NGCOA will continue to monitor the fallout from the Supreme Court decision and provide updates on issues affecting our industry.