SCOTUS Ruling in Loper Bright v. Raimondo: Impact on ERISA, Employee Benefits, and Executive Compensation

Description

The U.S. Supreme Court decisions in Loper Bright Enterprises v. Raimondo and Corner Post v. Board of Governors of the Federal Reserve System are expected to have a significant impact on federal agency rulemaking, rule implementation, and legal challenges to federal rules. Attorneys assisting clients with ERISA, employee benefits, and executive compensation matters must understand the implications of these rulings and how their clients may be affected.

Loper Bright overruled the Chevron doctrine which has served as the two-step framework for federal courts in deciding disputes between federal agencies and private parties challenging agency regulations for decades. Under Chevron, courts would first ask whether Congress had "directly spoken to the precise question at issue" in the statute. If not, the courts were required to defer to the agency's interpretation as long as it was reasonable. Loper Bright has now put the task of interpreting statutory provisions back into the hands of federal courts.

Corner Post has increased agency exposure to suits by redefining when the statute of limitations period begins during which rules may be challenged. The Court held that the six-year statute of limitations for suits against the federal government begins to run only once the plaintiff has been injured, a significant change from the prior stance that the six-year period began once the rule was published. Therefore, entities formed within the last six years may challenge regulations that have stood for decades.

Listen as our expert panel guides practitioners through the recent Loper Bright and Corner Post decisions and discusses the impact on ERISA regulations, employee benefits, and executive compensation, as well as potential new challenges to longstanding regulations.