Steve Harvey is a lot of things, but a judge isn't one of them. That shouldn't stop him from trying cases, though. As Distractify points out, the casting website for "Judge Steve Harvey" states that "all awards/judgments are paid by production." In other words, litigants don't stand to lose anything by taking their dispute to the "Family Feud" host. Likewise, similar to "Judge Judy," it's reasonable to assume participants agree to be bound by his ruling, too.
Good Housekeeping details the lengthy process required to qualify as a judge, and really who's got the time? According to TB News Watch, Harvey himself is under no illusions that he's an actual judge, even telling a defendant who "objected" to something the plaintiff said by quipping, "You must think this is a real court!" while openly laughing at them.
In reality, Harvey is ruling on a common-sense basis, rather than on any kind of legal footing, which will likely be more entertaining for those watching at home. It also plays to his strengths. As Harvey himself told TV Insider, "Most judges are interested in the law: These are the facts, and that's it. I'm going to dig up the story behind why people came to court vs. what they're in court for."
The former comedian elaborated, "I lean on decades of experience dealing with all types of situations and people, and I rely on my street-savvy, common sense and humor to get it done."