A rule is designed to implement policy and describe the practice requirements of an agency. It is sometimes hard to distinguish between rulemaking and adjudication. The APA attempts to distinguish “decisions” and “orders” from “rules” and “regulations” by stating that if an agency’s action is intended to have future effect, it is a rule. In addition, rules “implement, interpret, or prescribe law or policy” or describe the “organization, procedure, or practice requirements” of agencies.

Said another way, if an agency establishes a policy that is to be followed from that date forward, or issues a rule explaining how it will per-form some function, it has created a rule. Adjudication as a process that investigates, declares and enforces liabilities. That is the purpose and end. Legislation, on the other hand, looks to the future and changes existing conditions by making a new rule to be applied thereafter to all or some part of those subject to its power.”

Generally, adjudications involve individual claims, whereas rules are directed at large groups. Adjudication can result in an immediate sanction against an individual; a rule cannot. An adjudication to enforce a rule must be made before a person or company may be sanctioned. There is another significant difference between rulemaking and adjudication: due process. Generally, agencies are free to make rules without conducting hearings. This is not true of adjudications.

Due process requires the government to provide some form of notice to persons affected, and the opportunity to be heard.