In E.M.D. Sales, Inc. v. Cabrera, the Supreme Court unanimously held that a preponderance of the evidence standard applies when an employer must demonstrate that its employees were correctly classified as exempt from the minimum-wage and overtime-pay requirements of the Fair Labor Standards Act (“FLSA”). That’s good news for employers and bad news for the group of sales representative employees who brought the suit seeking large sums of overtime pay, arguing that the more onerous clear and convincing evidence standard applied.
Rejecting the employees’ “policy-laden arguments” for the heightened standard of proof, the Supreme Court observed that “the public interest in Fair Labor Standards Act cases does not fall entirely on the side of employees.” “Rather than choose sides in a policy debate,” the Court reasoned that the preponderance standard, the default in civil litigation, applied because: (1) the FLSA did not specify a standard of proof for exemptions; (2) the case did not implicate any constitutional rights that might require a heightened standard; and (3) the case did not involve the government taking “unusual coercive action” against an individual. The Court has now paved the way for a consistent and less burdensome standard for demonstrating that an employee is exempt under the FLSA, which will be particularly helpful to employers facing overtime pay litigation.
For further questions regarding this update, contact Liskow attorneys Thomas McGoey and Ellen George and visit our Labor & Employment practice page.
Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.
Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.