The ruling sends a challenge by James L. Kisor, a Vietnam War veteran who was involved with a dispute with the Department of Veterans Affairs, back to a lower court for further review.
Writing for five of the nine justices, Justice Elena Kagan narrowed the circumstances in which courts will defer to an agency's interpretation of ambiguous language in its own regulations.
Chief Justice John Roberts wrote an opinion concurring in the judgment outlining those markers.
Hughes noted that the lower court had applied a "reflexive form of deference" to the agency that was not warranted.
Four would have the lower courts resolve the issue without any deference to the VA," he said.