This Day in Legal History: Skidmore
On December 4, 1944, the U.S. Supreme Court issued its decision in Skidmore v. Swift & Co., a case interpreting the Fair Labor Standards Act (FLSA). The plaintiffs were firefighters employed by a private company who sought overtime pay for time spent waiting on the employer’s premises, even when not actively fighting fires. The Court ruled that such “waiting time” could qualify as compensable work depending on the circumstances — a fact-intensive inquiry rather than a rigid rule. More significantly, the Court declined to treat the Department of Labor’s interpretation of the FLSA as binding. Instead, Justice Jackson, writing for the Court, articulated what became known as “Skidmore deference,” explaining that agency interpretations are entitled to respect based on their “power to persuade,” not their authority.
This approach emphasized judicial independence while still valuing agency expertise, setting a flexible standard for reviewing administrative interpretations. For decades, Skidmore shaped the way courts evaluated regulatory guidance, particularly where statutes were silent or ambiguous. That changed in 1984, when the Court decided Chevron U.S.A., Inc. v. NRDC, introducing a more deferential, two-step test that often required courts to uphold reasonable agency interpretations. Chevron effectively sidelined Skidmore, making agency interpretations more binding than persuasive.
That more restrained approach to agency interpretation—Skidmore’s “power to persuade”—quietly persisted in the background during the decades-long dominance of Chevron deference. But on June 28, 2024, in Loper Bright Enterprises v. Raimondo, the Supreme Court formally overruled Chevron, declaring that courts must exercise independent judgment in interpreting statutes, even when those statutes are ambiguous. The Court emphasized that the Administrative Procedure Act assigns to the judiciary—not agencies—the duty to “decide all relevant questions of law” and interpret statutory provisions without default deference to agency views. In doing so, the Court explicitly endorsed the Skidmore model of respect rather than deference, reaffirming that agency interpretations may still inform judicial decisions, but only to the extent they are persuasive. So, 80 years after Skidmore was decided, its modest, judge-centered vision of statutory interpretation has once again become the law of the land.
A group of former federal employees filed a proposed class action lawsuit in the U.S. District Court for the District of Columbia, alleging the Trump administration unlawfully removed them from their jobs due to their work in diversity, equity, and inclusion (DEI) programs. The plaintiffs claim the dismissals were politically motivated and violated their First Amendment rights as well as Title VII of the Civil Rights Act.
According to the complaint, the reductions in force went beyond typical administrative turnover, instead constituting a deliberate effort to punish perceived political opponents. The plaintiffs argue they were targeted because they held, or were believed to have held, roles connected to DEI initiatives, which President Trump vocally opposed. The lawsuit points to executive orders that allegedly discriminated against women, people of color, and nonbinary individuals.
Defendants named include the White House, Justice Department, CIA, Defense Department, Federal Reserve, Labor Department, and Treasury. The plaintiffs are seeking reinstatement, back pay, restoration of seniority, and attorneys’ fees.
Trump, Agencies Hit With Ex-Federal Workers’ Political Bias Suit
Under President Trump’s second administration, the U.S. Securities and Exchange Commission (SEC) is on track for its lowest number of earnings fraud and auditor liability enforcement actions since the Reagan era. So far in 2025, only 20 such cases have been filed—far below the historical average of 79 per year since Trump’s first term began in 2017. The decline is attributed to leadership changes, a 43-day government shutdown, shifting agency priorities, and a shrinking SEC staff due to retirements and buyouts.
SEC Chair Paul Atkins has emphasized targeting only the most harmful and deliberate frauds, deprioritizing minor or technical violations. Enforcement has also slowed due to procedural constraints, including legal challenges limiting the use of in-house judges and forcing more cases into federal court. Despite the drop in formal actions, former officials and commission watchers caution that investigations continue behind the scenes and could yield future penalties.
The agency did finalize some notable settlements early in the year, including $19 million from American Electric Power and $8 million from GrubMarket. However, enforcement activity has since dropped steeply, marking the largest first-year decline following a presidential inauguration since the 1980s.
SEC’s Earnings Fraud, Auditor Liability Cases Plunge Under Trump
U.S. Citizenship and Immigration Services (USCIS) announced it will stop processing green cards and related immigration benefits for individuals from 19 countries named in a June Trump administration travel ban. This expanded restriction follows a separate decision by the State Department to suspend visa processing for Afghan nationals after a deadly shooting involving two National Guard members in Washington, D.C.
The new USCIS policy affects several types of applications, including those for permanent residency, green card replacements, travel documents, and requests by permanent residents to maintain status while abroad. The halt applies regardless of when the applicant entered the U.S. The agency cited national security concerns as the reason for the changes and indicated all affected individuals may face renewed interviews or screenings.
The travel ban currently includes countries such as Afghanistan, Iran, Somalia, Venezuela, and others, with reports suggesting the administration plans to expand the list to about 30 nations. The memo emphasized that individuals from these “high-risk countries of concern” who arrived in the U.S. after January 20, 2021, are subject to re-evaluation.
Trump Travel Ban Limits Extend to Green Cards, Other Benefits
