Supreme Court Issues Two Decisions That Will Affect NTEU Agencies

The Supreme Court issued two decisions last week that will affect NTEU’s work.

In SEC v. Jarkesy, the Court held, 6-3, that when the SEC seeks civil penalties for alleged securities fraud, the Constitution entitles the defendant to a jury trial. This decision will affect the Commission’s ability to seek penalties through its in-house, administrative processes. NTEU had filed an amicus brief supporting the essential work of our SEC employees in fighting securities fraud.

NTEU represents employees in other agencies that conduct internal administrative proceedings, but the Jarkesy decision is limited to the SEC. NTEU will closely monitor any efforts to extend the reasoning of that case to other agencies.

In a second decision, the Supreme Court by another 6-3 vote overruled an older case called Chevron. Under Chevron, courts deferred to an agency’s legal interpretation when the statute that it administers was unclear. In overruling Chevron, the Court held that agencies would not be entitled to such deference going forward, thereby diminishing the role of these agencies in applying their unique expertise to policy determinations that Congress left uncertain or unaddressed.

In addition, this decision might make it easier for NTEU to, for example, challenge a bad decision by the Federal Labor Relations Authority in federal court. But the decision would also make it easier for an agency employer to challenge a Federal Labor Relations Authority decision in NTEU’s favor in federal court.

NTEU will continue to watch—and to advocate for you at—the Supreme Court.