A January 15, 2025, U.S. Supreme Court opinion brought welcome news for employers defending claims of worker exempt status misclassification under the Fair Labor Standards Act (FLSA). In the case at issue, E.M.D. Sales, Inc. v. Carrera, the court clarified the applicable standard of proof, ruling that employers need only demonstrate by a “preponderance of the evidence,” the standard used in most civil cases, that an employee qualifies for an FLSA exemption, rather than the higher more stringent “clear and convincing evidence” standard previously applied by the Fourth Circuit Court of Appeals.
E.M.D. Sales (“E.M.D.”), a food distributor in the Washington, D.C. area, employed sales representatives who managed inventory and took orders at grocery stores. These employees sued the company, alleging violations of the FLSA’s overtime provisions. E.M.D. contended that the sales representatives were exempt from overtime pay as “outside salesmen” under the FLSA. The district court ruled in favor of the employees, finding that E.M.D. failed to prove the exemption by clear and convincing evidence. On appeal, the Fourth Circuit upheld this decision, prompting the company to seek review from the Supreme Court.
Justice Kavanaugh, writing for the court, emphasized that the less-exacting “preponderance of the evidence” standard (which would only have required E.M.D. to prove that it was more likely than not that the exemption applied) is the...
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