The Society for Human Resource Management (SHRM) turned to benefits and executive compensation partner Gregory Ossi for his insight on a U.S. Supreme Court decision involving an Environmental Protection Agency (EPA) rule that may affect the Department of Labor, Equal Employment Opportunity Commission and National Labor Relations Board.
In reaching its holding in the EPA decision, the Supreme Court applied the “major questions doctrine,” which is related to the constitutional separation of powers and the nondelegation doctrine in agency law. Ossi observed that the doctrine limits an agency’s regulatory power.
Ossi also noted that a major question is involved when the rule 1) is a transformative expansion in regulatory authority, 2) is based on a rarely used provision, 3) regulates an area where Congress conspicuously and repeatedly declined to enact legislation, 4) requires technical and policy expertise not traditionally needed in an agency’s regulatory development and 5) does not have clear congressional authorization.
The full article is available for SHRM subscribers.