A recent Supreme Court decision will have a significant impact on small businesses

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Last week, the Supreme Court overturned a 40-year-old ruling known as the Chevron Doctrine, which gave authority for interpreting congressional legislation to federal agencies.

A new overtime rule went into effect Monday, requiring businesses of all sizes to pay overtime wages to their employees making less than $43,888 per year, up from a previous wage limit of $35,568.

“Agencies have no special competence in resolving statutory ambiguities,” Supreme Court Chief Justice John Roberts, agrees. “The Chevron Doctrine allowed agencies to make and implement and enforce those changes, and courts would approve of those changes so long as the Department of Labor’s approach is based upon a permissible construction of the Fair Labor Standards Act,” he said. “But as administrations change, businesses that are subject to this law have been forced to pivot back and forth again and again to try to avoid the wrath of investigators and prosecutors.

 

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