On January 15, 2025, the United States Supreme Court issued a unanimous decision in E.M.D. Sales, Inc. v. Carrera, holding that the “preponderance of the evidence” is the applicable standard courts must use to analyze whether an exemption is proper under the Fair Labor Standards Act (FLSA). In practical terms, this means employers must demonstrate it is more likely than not that an employee qualifies for an exemption, rather than meeting a stricter burden of proof.
This decision resolves a split among lower courts and provides clarity on the burden of proof in exemption disputes. Employers should carefully review their employee classifications to ensure compliance. Click here to read our insight into the facts of the case, how the Court reached this decision, and how employers should react to this ruling. If you have any additional questions, please contact your labor and employment attorney.