US Supreme Court Clarifies Standard Of Proof For FLSA Exemptions

On January 15, 2025, the U.S. Supreme Court issued its decision in E.M.D. Sales, Inc. v. Carrera, clarifying that when an employer contends a worker is exempt from the overtime and/or minimum wage requirements of the Fair Labor Standards Act (FLSA), the employer must prove its case by a preponderance of the evidence. The Court rejected the argument that the clear and convincing evidentiary standard should apply to such defenses.

In a unanimous decision, the Court explained that when a law does not specify the burden of proof, courts typically apply the preponderance of the evidence standard. “A more demanding standard, such as clear and convincing evidence, applies only when a statute or the Constitution requires a heightened standard or in certain other rare cases, such as ‘when the government seeks to take unusual coercive action.’”

The Court’s decision is consistent with most federal appellate courts which have considered this issue. Only the Fourth Circuit Court of Appeals has ruled that the clear and convincing standard of proof applies to FLSA exemptions.

This decision is good news for employers. FLSA exemptions are already challenging to prove. A clear and convincing evidentiary standard would make it much harder for employers to rely upon the minimum wage and overtime exemptions available under the FLSA. If you have questions about FLSA exemptions, or overtime and minimum wage rules, please contact a KZA attorney.

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.