By Michael A. Drab and David Schlottman

On January 15, 2025, the Supreme Court for the United States issued an opinion interpreting the standard of proof employers must meet to establish the applicability of an exemption to the overtime requirements of the Fair Labor Standards Act (“FLSA”). See E.M.D. Sales, Inc. v. Carrera, 604 U.S. _____ (2025). This opinion overturned precedent from the Fourth Circuit Court of Appeals that required employers to prove by “clear and convincing” evidence that an employee was exempt from overtime. Instead, the Court held an employer need only show the application of an exemption by a preponderance of the evidence.

FLSA Overtime Requirements and Exemptions

Among other things, the FLSA requires employers to pay employees a minimum wage and overtime compensation for hours worked beyond 40 in a workweek. The rate of pay for overtime must be 1.5 times the employees’ regular wages.

In a typical case, a plaintiff seeking overtime must prove (1) he or she was employed by the defendant; (2) he or she worked overtime hours for which he or she was not properly compensated; and (3) the amount and extent of overtime worked. If a plaintiff makes that initial showing, a defendant can avoid liability by, among other things, proving the plaintiff was exempt from the FLSA’s overtime provisions. The FLSA provides a laundry list of exempt workers. See 29 U.S.C. § 213.

Sales Dispute Leads to Landmark Supreme Court Decision

The case arose from a dispute between...

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