The Fifth Circuit recently overturned a ruling that relied on the now-defunct doctrine of Chevron deference to uphold a U.S. Department of Labor rule covering socially conscious retirement plan investing. Despite the setback, some experts remain optimistic about the rule’s chances of survival even without the Chevron precedent.
Chevron deference had long allowed courts to defer to federal agencies’ interpretation of ambiguous laws within their purview. Its absence raises significant questions about the future of various administrative rules, including those governing Environmental, Social, and Governance (ESG) criteria for retirement plans.
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