In January 2025, the U.S Supreme Court issued a unanimous decision in E.M.D. Sales, Inc. v. Carrera, clarifying the burden of proof employers must meet when asserting exemptions under the Fair Labor Standards Act (FLSA).
The Court held that the “preponderance of the evidence” standard applies when an employer seeks to prove that an employee is exempt from the FLSA’s minimum wage and overtime pay provisions. This standard, often referred to as the “more likely than not” standard, is the default in civil litigation. The Court reasoned that the heightened standards of proof such as “clear and convincing evidence,” are exceptions and should only apply in specific circumstances defined by a statute or constitutional mandate. It was determined that none of the specific circumstances requiring a heightened standard of proof applied in this case. This ruling resolved a circuit split regarding the applicable standard of proof for FLSA exemptions resulting in a uniform approach across all federal circuits, simplifying the legal landscape for employers. For employers, this means that when defending against claims alleging misclassification under the FLSA, the burden is to show by a preponderance of the evidence that the individual is an independent contractor or one of the FLSA exemptions apply. This is great news for employers fighting FLSA cases.
Need help navigating FLSA compliance after E.M.D. Sales v. Carrera? At Bohreer Law, we guide employers through every step of labor law challenges. Contact us today to protect your business and ensure you’re meeting the new standards with confidence. Schedule a consultation or call us at 832-856-3006.