Legal Definitions - interpretative rule

An interpretative rule is an official statement issued by a government agency that explains how the agency understands and intends to apply a specific law passed by the legislature. These rules serve to clarify the meaning of existing statutes, providing guidance to the public, businesses, and other regulated entities on the agency's interpretation of its legal authority and responsibilities.

Unlike "legislative rules," which create new legal obligations or change existing law, interpretative rules do not establish new legal requirements. Instead, they simply explain what the agency believes the law already means, helping to ensure consistent application and understanding of the statutes it administers.

Here are some examples:

• Environmental Protection Agency (EPA) Guidance: Imagine Congress passes a law requiring industries to reduce emissions of certain pollutants using "best available control technology." The EPA, the agency responsible for enforcing this law, might then issue an interpretative rule explaining its understanding of what "best available control technology" entails for a specific industry, such as power plants. This rule could detail the factors the EPA will consider when evaluating whether a power plant's technology meets the legal standard, without creating new emission limits.

  This illustrates an interpretative rule because the EPA is clarifying an existing statutory term ("best available control technology") to guide industries on how to comply with the law, rather than establishing a new legal requirement.

• Internal Revenue Service (IRS) Tax Explanations: Suppose a tax law allows individuals to deduct "ordinary and necessary business expenses." The IRS, tasked with administering tax laws, could publish an interpretative rule outlining its view on what types of home office expenses qualify as "ordinary and necessary" for self-employed individuals. This guidance might specify criteria for a dedicated workspace or explain how to calculate eligible utility costs.

  This is an interpretative rule because the IRS is explaining its interpretation of an existing tax deduction, helping taxpayers understand how to correctly apply the law without creating a new deduction or obligation.

• Department of Labor (DOL) Workplace Accommodation Advice: Consider a federal statute that mandates employers provide "reasonable accommodations" for employees with disabilities. The Department of Labor might issue an interpretative rule providing examples of what constitutes a "reasonable accommodation" in various workplace scenarios, such as modifying work schedules, adjusting equipment, or reassigning non-essential duties. The rule would clarify the agency's enforcement approach and offer practical illustrations for employers.

  This example demonstrates an interpretative rule as the DOL is clarifying an existing legal obligation ("reasonable accommodations") to help employers understand their duties under the law, rather than imposing new requirements.