On November 29, 2023, the United States Supreme Court is set to hear oral arguments in a critical case, Jarkesy v. Securities and Exchange Commission. This case throws the spotlight on the use of administrative law judges (ALJs) by federal agencies, an issue at the core of a constitutional challenge by the respondents.
This case commenced when the respondents challenged the constitutionality of the Securities and Exchange Commission (SEC)’s use of administrative law judges, making it a critical reference point in the discussions surrounding the function and utilization of ALJs in federal agencies.
The outcome of this case could have substantial implications for all federal agencies that employ ALJs, extending to agencies like the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and federal banking agencies. Insights drawn from this case could fundamentally shape the operational framework and constitutional interpretation regarding the role of ALJs in federal agencies.
The discussion is expected to focus on the constitutionality of the current system, but will also inevitably touch on the broader role administrative law judges play within the federal bureaucracy. This case promises to be closely watched by legal professionals, especially those working in corporations and law firms functioning under the jurisdiction of federal agencies using ALJs.
Legal professionals waiting to navigate the aftermath of this landmark hearing can stay updated and broaden their understanding of the case by examining the original filing and progress of Jarkesy v. Securities and Exchange Commission at JD Supra.