The Biden administration has been finalizing new regulations on various issues, from independent contractors to credit card late fees and climate disclosure requirements. However, these rules have been met with lawsuits from groups like the U.S. Chamber of Commerce, arguing that the agencies are overstepping their authority. The Chamber plans to file at least 22 lawsuits against the Biden administration before the end of his current term, a significant increase from previous administrations.
Similarly, the American Bankers Association has also signed on to lawsuits against banking regulators after not doing so for roughly a decade. Both groups see litigation as a necessary step when agencies exceed their authority with regulations. Total private sector regulations have been on the rise under Biden, as compared to the more flat regulations under the Trump administration.
Critics argue that the Biden administration has been expansive in its interpretation of authorizing statutes, leading to regulations that go beyond what Congress intended. The Chamber’s lawsuits against agencies under the Biden administration focus on claims that rules are being set in areas that only Congress should be addressing. Litigation is seen as a last resort when agencies ignore feedback from stakeholders and finalize rules outside their regulatory purview.
The Biden administration defends its regulations, stating that the focus is on protecting consumers and saving them money. Estimates show that the FTC’s non-compete ban will boost wages by at least $400 billion over the next decade, while other regulations will save Americans money and improve public health. The administration is confident that agencies are acting within their authorities and that the rules are beneficial to American workers and families.
Complying with regulations can come at a cost to businesses, especially when rules can change with each new administration. Investments made by companies could be affected by unforeseen regulations, leading to decreased value or halting production altogether. Critics of the administration’s regulatory actions believe that agencies are going too far in their interpretations of their authority and are pushing back through legal challenges. The outcome of these lawsuits will shape the regulatory landscape for businesses in the years to come.
