For the last 40 years, judges were required to defer to administrative agencies’ reasonable interpretations of ambiguous federal statutes under Chevron v. Natural Resources Defense Council. The Supreme Court upended that precedent in Friday’s 6-3 ruling in Loper Bright Enters. v. Raimondo, which overturned Chevron and instructs judges to rely on their own judgment in determining whether an agency’s regulation falls within its authority.  

Chevron’s repeal has both immediate and concrete impacts on ERISA’s interpretation, as well as the potential for significant, broader effects.  For example, challengers of the Department of Labor’s ESG Rule permitting fiduciaries to consider environmental, social, and governance factors when selecting plan investments have already pointed to Loper Bright to bolster their argument that the rule oversteps the DOL’s authority and should be invalidated now that Chevron does not require deference to the DOL.  In that pending litigation, which is currently on appeal in the Fifth Circuit, a district court in the Northern District of Texas previously relied on Chevron in upholding the DOL’s interpretation as reasonable.  And, looking more broadly, ERISA litigants often rely on administrative guidance from DOL, Treasury, etc. to interpret ERISA and advocate for their positions.  Without deference to agency guidance where appropriate under Chevron, interpretation of ambiguous ERISA provisions now rests entirely with the judiciary, with the potential for inconsistent interpretation of ERISA’s requirements from jurisdiction to jurisdiction. 

Takeaway

In the immediate wake of Loper Bright, the only certainty is the risk of uncertainty. A potentially chaotic landscape of court decisions across jurisdictions could make it difficult for Plan sponsors and fiduciaries to administer benefit plans, as a practical matter, and to comply with the law. Those responsible for benefit plan design and administration must stay on top of developing cases and know how to reconcile conflicting court decisions around the country, in addition to using the other compliance tools at their disposal — including agency guidance.

If you have any questions, the Jackson Lewis ERISA Litigation Practice Group members are available to assist. Please contact a Jackson Lewis ERISA Litigation team member or the Jackson Lewis attorney with whom you regularly work if you have questions or need assistance.

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Photo of Adam R. Carlisle Adam R. Carlisle

Adam R. Carlisle is an associate in the New Orleans, Louisiana, office of Jackson Lewis P.C. and a member of the firm’s ERISA Complex Litigation group. Adam uses his experiences as a former high school teacher and NCAA Division I track and field…

Adam R. Carlisle is an associate in the New Orleans, Louisiana, office of Jackson Lewis P.C. and a member of the firm’s ERISA Complex Litigation group. Adam uses his experiences as a former high school teacher and NCAA Division I track and field coach to communicate effectively and passionately on behalf of his clients.

Adam’s practice focuses on defending employers, fiduciaries, plan sponsors, and other defendants in complex class action and individual plaintiff ERISA matters. Adam has experience representing clients in 401(k) and 403(b) fee claims, benefits claims, ESOP disputes, ERISA Section 510 claims, and other claims for breach of fiduciary duties. Adam also provides preventive advice and counseling for employers in ERISA and workplace law matters.

While attending Loyola University New Orleans College of Law, Adam was a member of the Loyola Law Review, a Moot Court Staff Member, and an oralist and brief writer for the Willem C. Vis International Moot Court Team.

Before attending law school, Adam spent three years as a history teacher at Zachary High School and two years as a track and field coach at the University of New Orleans.

Photo of Lindsey H. Chopin Lindsey H. Chopin

Lindsey H. Chopin is a principal in the New Orleans, Louisiana, office of Jackson Lewis P.C. and a member of the firm’s ERISA Complex Class Action, Employee Benefits and Class Action groups.

Lindsey focuses her practice on the defense of complex ERISA class-actions…

Lindsey H. Chopin is a principal in the New Orleans, Louisiana, office of Jackson Lewis P.C. and a member of the firm’s ERISA Complex Class Action, Employee Benefits and Class Action groups.

Lindsey focuses her practice on the defense of complex ERISA class-actions filed against public and private single employer ERISA plan sponsors and fiduciaries, as well as multi-employer plans and fiduciaries and ERISA plan services providers. She has litigated a wide variety of class action claims, including 401(k) fee claims, stock drop claims, defined benefit mortality assumption claims, “church plan” and “government plan” claims, health and welfare plan claims, and ERISA Section 510 claims. Lindsey also litigates ERISA benefit claims and claims involving non-ERISA plans.