A law which enables Congress to pass resolutions rejecting federal regulations is providing ammunition for business groups challenging recent labor regulations in court. This legislation, the Congressional Review Act, is the centre of various resolutions of disapproval recently introduced by lawmakers. These disapprovals are primarily focused on two rules: a
rule by the US Department of Labor on environmental, social, and governance considerations in retirement investing, and the National Labor Relations Board’s joint employer rule.
While these resolutions are not expected to become law due to a predicted veto by President Joe Biden, Republicans and business lobbyists argue that their introduction might enhance legal arguments. Namely, they contend it could help argue that a federal agency lacked authority to issue the disputed regulations in the first place.
Nevertheless, the partisan nature of these resolutions could undercut their persuasiveness. This can become especially evident if they are viewed as more of a political statement than a substantive legal argument.
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