Labor & Employment Law Update

The Fifth Circuit recently issued a decision that could affect how courts evaluate Occupational Safety and Health Administration (OSHA) regulations and enforcement actions moving forward.

On July 21, 2026, in Exxon Mobil Corp. v. Occupational Safety and Health Review Commission, the court addressed OSHA’s rule requiring employers to record certain work-related mental illnesses.

It concluded that OSHA exceeded its Congress authority under the Occupational Safety and Health Act and vacated the rule, Exxon’s citation, and the accompanying penalty.

Although the ruling directly addresses workplace mental health recordkeeping, its broader significance is that courts will no longer defer to OSHA's interpretation of an unclear statute simply because the agency's reading is reasonable. Instead, courts will independently determine whether OSHA is acting within the limits Congress established.

For employers, Exxon provides an early example of how OSHA regulations and enforcement actions may face closer judicial scrutiny in the post-Loper Bright era.

Fifth Circuit Vacates OSHA Mental Health Recordkeeping Rule

A December 2021 explosion and eight-hour fire at Exxon Mobil’s Baytown, Texas refinery led to the mental health dispute before the Fifth Circuit. One Exxon process technician volunteered to enter the burning unit with firefighters and help close valves feeding the fire. After the incident, several health care providers diagnosed the employee with post-traumatic stress disorder stemming from his experience during the emergency response.

OSHA’s mental health recordkeeping rule, 29 C.F.R. § 1904.5(b)(2)(ix), required employers to record certain work-related mental illnesses when an employee voluntarily provided a qualifying health care professional’s opinion linking the condition to the workplace. OSHA relied on 29 U.S.C. § 657(c)(2), which authorizes recordkeeping regulations for work-related “deaths, injuries and illnesses.” OSHA maintained that the statute covered both physical and mental illnesses.

Exxon did not record the employee’s PTSD after another medical review concluded that the condition was not work-related, and OSHA issued a citation. The Fifth Circuit rejected OSHA’s broader interpretation of “illnesses.” Looking to the surrounding statutory language and contemporaneous dictionary definitions, the court concluded that the statute was directed to physical ailments rather than mental conditions. It therefore held that § 657(c)(2) did not authorize OSHA’s mental health recordkeeping rule and vacated the rule, Exxon’s citation, and the $691 penalty.

What the Exxon Decision Means for OSHA's Regulatory Authority After Loper Bright

The broader significance of Exxon extends beyond workplace mental health recordkeeping. In Loper Bright Enterprises v. Raimondo, the Supreme Court overruled the Chevron doctrine, which had required courts in certain circumstances to defer to permissible agency interpretations of ambiguous statutes. Courts must now exercise their own independent judgment in determining whether an agency has acted within the authority Congress granted it.

Loper Bright does not eliminate OSHA’s ability to regulate workplace safety or exercise discretion delegated by Congress. Congress may grant OSHA regulatory discretion, and courts must respect that delegation. But statutory ambiguity, by itself, does not constitute a delegation of additional authority. Courts must independently determine the scope of Congress’s delegation and ensure that the agency remains within its statutory boundaries.

Exxon demonstrates how that framework can apply to OSHA. The Fifth Circuit acknowledged that OSHA’s broader reading of “illnesses” to encompass workplace mental illnesses “may be plausible.” But a plausible interpretation was not enough. Applying the post-Loper Bright framework, the Court independently determined the statute’s best reading and concluded that OSHA’s mental health recordkeeping requirement exceeded the authority Congress had delegated.

Employer Takeaways and OSHA Compliance Considerations

For employers, Exxon has both immediate and broader implications. The Fifth Circuit vacated OSHA’s mental health recordkeeping rule after concluding that § 657(c)(2) did not authorize OSHA to require employers to record work-related mental illnesses. More broadly, Exxon demonstrates that after Loper Bright, courts must independently determine whether OSHA is acting within the authority Congress delegated to it. A plausible agency interpretation, standing alone, is not enough.

At the same time, Exxon does not eliminate OSHA’s regulatory or enforcement authority. OSHA may continue exercising the powers Congress actually delegated to it. But when OSHA’s statutory authority is challenged, courts will independently determine the boundaries of that authority. Employers should therefore continue complying with applicable OSHA requirements while carefully evaluating the statutory basis for new or expansive OSHA rules and enforcement theories.