U.S. Supreme Court Ruling Reduces Regulatory Burdens on Small Businesses

Published: Jul 2, 2024
by Michael Guta
In Small Business News

The National Federation of Independent Business (NFIB) celebrates the U.S. Supreme Court ruling in Loper Bright Enterprises v. Gina Raimondo. The Court vacated the lower court’s decision and eliminated Chevron deference, which administrative agencies have long used to expand their power and maintain regulatory burdens. NFIB, alongside the Buckeye Institute, filed an amicus brief urging the Court to eliminate Chevron deference and reduce regulatory pressures.

“For 40 years, Chevron deference has allowed administrative agencies to enact regulations with little accountability,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Finally, Main Street can breathe a sigh of relief. Abandoning Chevron will hold agencies accountable and level the playing field in court cases between small businesses and administrative agencies. NFIB hopes that the Supreme Court’s elimination of Chevron deference will remove significant power from unelected bureaucrats.”

The case questioned whether the Court should eliminate judicial deference to administrative agencies on legal interpretations, a principle established in Chevron v. Natural Resources Defense Council. NFIB’s brief argued against Chevron deference by examining the consequences of unchecked agency power and highlighting a more constitutionally appropriate alternative to the legislative indifference and judicial passivity that Chevron enables. The Supreme Court agreed, ruling that courts must exercise independent judgment in deciding whether agencies have acted consistent with the law, instead of deferring to agencies.

Small business owners consistently rank unreasonable government regulations as a top problem in operating their businesses. Last year, the NFIB Small Business Legal Center released a White Paper on the Regulatory Flexibility Act (RFA) and the impact of heavy regulations on small businesses.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

Image: Depositphotos

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Michael Guta is the Assistant Editor at Small Business Trends and has been with the team for 9 years. He currently manages its East African editorial team. Michael brings with him many years of content experience in the digital ecosystem covering a wide range of industries. He holds a B.S. in Information Communication Technology, with an emphasis in Technology Management.

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