U.S. Supreme Court holds preponderance standard applicable to FLSA exemptions: E.M.D. Sales, Inc. v. Carrera

In E.M.D. Sales, Inc. v. Carrera, No. 23-217, the U.S. Supreme Court held 9-0 that the preponderance standard applies when an employer seeks to prove an employee is exempt from minimum wage and overtime under the FLSA.

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Plaintiffs, a group of sales representatives for a food distributor, sued for unpaid overtime. Defendant argued that the outside sales exemption applied to Plaintiffs, but the District Court ruled that Defendant failed to prove so under the clear-and-convincing-evidence standard. Defendant appealed, but the Fourth Circuit affirmed.

On certiorari, the Supreme Court reversed and remanded, noting that all other circuits had applied the preponderance standard. The Court clarified that the preponderance standard is the default in civil cases, and none of the exceptions applied here. It explained that the FLSA does not specify a burden of proof for exemptions, this case did not involve a constitutional right, and there was no “unusually coercive” government action at issue. Citing Price Waterhouse v. Hopkins (1989) 490 U.S. 228, the Court also reasoned that if the clear-and-convincing-evidence standard is not required in Title VII cases, it should not be required in FLSA cases. Finally, the Court held that whether a right is waivable (in this case the right to overtime and minimum wage under the FLSA) does not determine the standard of proof.

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