The following article first appeared in the Insights section of Harris Beach Murtha’s website. It is reposted here with permission.

A recent decision by the U.S. Supreme Court solidified the evidentiary standard of proof for federal wage law disputes where employers seek to establish their employees are appropriately classified as exempt under the Fair Labor Standards Act.

Specifically, on Jan. 15, 2025, the U.S. Supreme Court unanimously held in E.M.D. Sales, Inc. v. Carrera that employers need only show that the employee’s position is more likely than not exempt from the FLSA’s minimum wage and overtime compensation requirements under the “preponderance-of-the-evidence” standard.

This ruling rejected the U.S. Court of Appeals for the Fourth Circuit’s decision to apply a “more demanding standard” of “clear and convincing evidence” to this case.

The Carrera decision provides clarity to employers, and confirms that federal courts will not be required to apply a heightened standard of proof when employers try to prove that an employee was covered by an overtime exemption.

Case Background and Procedural History

In Carrera, three sales representatives sued their employer, EMD Sales, a food distribution company located in Washington, D.C., alleging EMD Sales misclassified them under the “outside-salesman exemption” and failed to pay overtime.

Following a bench trial, the U.S. District Court for the District of Maryland ultimately found in the plaintiff’s favor.

The court...

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