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Supreme Court Clarifies Burden of Proof for FLSA Exemptions

Supreme Court Clarifies Burden of Proof for FLSA Exemptions

On January 15, 2025, the U.S. Supreme Court weighed in on the appropriate legal standard for reviewing certain claims made under the Fair Labor Standards Act (FLSA). In E.M.D. Sales, Inc. v. Carrera, No. 23-217, 2025 WL 96207 (U.S. Jan. 15, 2025), the Court held that the “preponderance-of-the-evidence” standard applies when an employer seeks to demonstrate that an employee is exempt from the minimum wage and overtime pay provisions of the FLSA.

Employees of E.M.D. argued that they were entitled to overtime wages pursuant to the FLSA. In response, E.M.D. claimed that an exemption to overtime applied—the employees were outside salesmen. The lower court concluded that E.M.D. failed to prove by “clear and convincing evidence”—a higher burden of proof—that the employees qualified as outside salesmen such that they were not entitled to overtime wages. Pursuant to the lower court’s ruling, the employer was required to prove that the exemption was supported by evidence so clear, direct, and weighty that it enabled the fact finder to come to a clear conviction, without hesitancy, of the precise facts of the case. The Fourth Circuit Court of Appeals affirmed, upholding the heightened standard of review. Notably, the Fourth Circuit stood alone in requiring employers to prove the applicability of an FLSA exemption by clear and convincing evidence.

On appeal to the U.S. Supreme Court, the Court determined that FLSA cases are more akin to Title VII cases, where the Court has held that a preponderance standard applies. The Court was not persuaded by the employees’ argument that the public interest required a heightened standard of review. Instead, the Court held that a heightened standard is appropriate only when (1) a statute requires it, (2) the Constitution mandates it, or (3) in certain rare situations involving coercive government action.

The preponderance of the evidence standard, applicable in most civil cases, is considered an easier standard to meet compared to the criminal standard of proof of “beyond a reasonable doubt.” A preponderance of the evidence standard is defined as “the greater weight of the evidence,” or evidence that more likely than not tends to prove a certain proposition. See Gross v. Lyons, 763 So. 2d 276, 280 n.1 (Fla. 2000). Under the preponderance standard, the burden of proof is met when the party with the burden convinces the trier of fact that there is a greater than 50% chance that the claim is true.

With this ruling, the Supreme Court has confirmed that employers are not held to a higher standard when litigating FLSA cases and must only prove exemptions apply “more likely than not.” This decision provides clarity and uniformity for employers and courts addressing exemption disputes under the FLSA.