Overturning the Standard
Will a Recent Supreme Court Ruling Weaken OSHA?
by Trent Cotney, Partner, Adams & Reese, LLP
(Editor’s Note: Trent Cotney, partner at Adams & Reese, LLP, is dedicated to representing the roofing and construction industries. Cotney is General Counsel for the Western States Roofing Contractors Association and several other industry associations. For more information, contact the author at (866) 303-5868 or go to www.adamsandreese.com.)
As nearly everyone involved in the construction industry will tell you, the Occupational Safety and Health Administration (OSHA) is a powerful agency. Its reach is wide, and those failing to follow its standards can face debilitating fines and reputational harm. However, a recent ruling from the United States Supreme Court could eventually have a significant impact on OSHA’s authority.
Details of the Decision
On June 28, 2024, the Supreme Court reviewed the consolidated cases of Loper Bright Enterprises v. Raimondo and Relentless, Inc. v. Department of Commerce and overturned Chevron v. Natural Resources Defense Council. The 1984 Chevron case established a doctrine that had been in place for decades and provided federal regulators with leeway to interpret unclear laws.
This Chevron case involved a fishing industry regulation requiring fishermen to pay the independent observers who monitored their catch. However, the ruling affected much more than just the fishing industry. The Chevron decision had supported federal agencies in how they managed regulations in many different fields. For years, the decision had been targeted by business groups, and others opposed to big government, that believed that the decision granted agencies too much power.
In a 6-3 decision, the Supreme Court determined that Chevron decision had unfairly transferred the authority to interpret laws from the judiciary to federal agencies. Under Chevron, judges had been mandated to defer to agencies that provided reasonable interpretations of ambiguous laws.
What the Ruling Means for OSHA
This Supreme Court ruling may open the floodgates and affect various environmental and consumer agencies. Will it impact OSHA’s authority? That remains to be seen.
Allstates Refractory Contractors had previously filed a lawsuit, Allstates Refractory Contractors, LLC v. Su, claiming that Congress violated the Constitution by allowing OSHA’s broad regulatory power in setting and enforcing safety standards. Several business groups had supported Allstates’ position and agreed that this level of authority should be held within the legislative branch. However, in August 2023, the 6th United States Circuit Court of Appeals ruled that OSHA’s authority was constitutional. On July 2, 2024, the Supreme Court declined to hear the case, indicating that the appellate court’s ruling would stand.
How the Construction Industry May Be Affected
Adhering to OSHA regulations is challenging for everyone in the construction industry, however, the agency’s standards provide a benchmark for ensuring safety on every job site. Given the Supreme Court’s decision not to hear the Allstates Refractory Contractors case, it will be interesting to see if OSHA’s authority is rolled back and to what degree.
Final Thoughts
The Supreme Court’s decision to overturn Chevron will have massive implications in a wide range of industries. Nevertheless, cases that relied on the Chevron decision should remain intact. The Supreme Court noted that the Chevron reversal will affect only new cases and should not result in the upheaval of already decided cases.
