IMPLICATIONS OF THE LOPER BRIGHT DECISION FOR FUTURE FEDERAL AND STATE REGULATIONS
The US Supreme Court’s recent decision in Loper Bright Enterprises v. Raimondo (2024) is a watershed moment for the regulatory compliance regime that businesses in the US confront in almost every industry. Loper is poised to reshape how federal regulations are interpreted and enforced prospectively, potentially giving state regulatory agencies a greater role in areas traditionally dominated by relatively broad federal oversight.
This article explores the key aspects of Loper, its impact on federal regulations, and the potential shift in power to state regulatory agencies.
Background to Loper
Loper Bright Enterprises (LBE) is a seafood company that raised a legal challenge to the National Marine Fisheries Service (NMFS) and its regulations, implemented under the Magnuson-Stevens Fishery Conservation and Management Act.
The case revolved around the NMFS’s authority to impose regulations on the fishing industry, which LBE argued were overly burdensome and exceeded the limits of the agency’s regulatory power. The central question before the Supreme Court was whether federal agencies have the authority to impose regulations that are deemed excessively restrictive or beyond the scope of their delegated powers.
In a landmark decision, the Supreme Court held that the NMFS had overstepped its regulatory authority, ruling in favour of LBE. The court’s opinion emphasised a restrictive interpretation of agency powers, insisting that agencies must operate within the clear boundaries set by Congress and cannot impose regulations that are not squarely grounded within those boundaries.
Oct-Dec 2024 Issue
Bryn Law Group