Agencies to Face Regulation Review Limits After Ruling

The Labor Department and other government agencies may have to reach a higher bar before courts accept their views on regulations in the wake of a new U.S. Supreme Court ruling.

At issue in the June 26 Kisor v. Wilkie is a standard known as Auer deference, which determines whether courts should lean on agency interpretation of regulations.

Justice Neil Gorsuch warned in his concurring opinion that the majority ruling didn’t go far enough and called the Auer deference a “paper tiger.”

While business groups hoped that the conservative-majority high court would eliminate the standard all together, the ruling did ...