What is a Major Rule? A Comprehensive Legal Overview

Definition & meaning

The term major rule refers to any regulation that has a significant impact on the economy. Specifically, it is defined as a rule that the Administrator of the Office of Information and Regulatory Affairs (OIRA) determines has led to, or is likely to lead to, one or more of the following:

  • An annual economic effect of $100,000,000 or more.
  • A substantial increase in costs or prices for consumers, industries, government agencies, or regions.
  • Significant negative impacts on competition, employment, investment, productivity, innovation, or the ability of U.S. businesses to compete with foreign companies.

It is important to note that this definition excludes any rules created under the Telecommunications Act of 1996 and its amendments.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A new environmental regulation that requires industries to reduce emissions significantly may be classified as a major rule if it is expected to cost businesses over $100 million annually.

Example 2: A federal regulation increasing the minimum wage across the country could also be considered a major rule due to its substantial economic impact on employers and employees (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Major Rule A regulation with significant economic impact. Focuses on economic thresholds and competitive effects.
Minor Rule A regulation with limited economic impact. Does not meet the economic thresholds set for major rules.
Proposed Rule A regulation suggested for public comment before finalization. Not yet enacted; may become a major rule if it meets criteria.

What to do if this term applies to you

If you are affected by a major rule, consider the following steps:

  • Review the rule's implications for your business or personal situation.
  • Consult with a legal professional to understand your rights and responsibilities under the new regulation.
  • Explore US Legal Forms for templates that may help you comply with the new requirements.

For complex issues, seeking professional legal advice is recommended.

Quick facts

Attribute Details
Economic Threshold $100,000,000 annually
Exclusions Rules under the Telecommunications Act of 1996
Potential Impact Costs, competition, employment

Key takeaways

FAQs

A major rule is a regulation that significantly impacts the economy, typically defined by an annual economic effect of $100 million or more.