Labor Agency’s Rule Defense Pivots Ahead of High Court Action

The US Labor Department is abandoning a legal doctrine under which courts defer to agency interpretations of laws as a shield against challenges to some of its most high-profile rulemakings, a sign it’s attempting to head-off the US Supreme Court’s expected gutting of the Chevron standard.

Business groups have cited the 1984 ruling in Chevron Inc. v. Natural Res. Def. Council, Inc. in their arguments against DOL rules expanding overtime pay eligibility and limiting when employers can pay tipped workers a lower minimum wage. They argue that the regulations fail to carry out Congress’ clear direction on the law.

While ...