Employers do not need to show by clear and convincing evidence that a worker is exempt from the Fair Labor Standards Act’s (FLSA’s) overtime requirements, the U.S. Supreme Court ruled unanimously Jan. 15. The usual, lesser preponderance-of-the-evidence standard applies—a win for employers.
“Practically, the court’s decision likely provides HR professionals and employers with a bit more leeway in determining whether or not certain employees are exempt,” said Jason Tremblay, an attorney with Saul Ewing in Chicago. “For example, if HR professionals are evaluating whether or not a group of employees are exempt, they may be in a more comfortable position to conclude such employees are exempt, now that there is clarity on the preponderance-of-the-evidence standard being applied.”
Similarly, in the event a U.S. Department of Labor (DOL) audit is being conducted regarding whether a group of employees is exempt, this ruling will likely provide clarity and authority for the employer to use in response to any adverse DOL determination and subsequent litigation, he said.
The ruling also means that employers in the 4th U.S. Circuit Court of Appeals, which had erroneously applied a heightened clear-and-convincing standard, will have FLSA exemptions determined by the same standard most courts nationally use: preponderance of the evidence (i.e., 51%, or more likely than not), said Ted Hollis, an attorney with Quarles & Brady in Indianapolis.
Before the Supreme Court’s ruling,...
This article is part of The Poynter 50, a series reflecting on 50 moments and people that shaped journalism over the past half-century — and continue to influence its future. As Poynter celebrates...