On January 15, 2025, the Supreme Court reaffirmed a fundamental principle of civil litigation: the preponderance of the evidence standard remains the default unless explicitly altered by statute or constitutional mandate. In E.M.D. Sales, Inc. v. Carrera, the Court clarified this standard for exemptions under the Fair Labor Standards Act (FLSA), resolving a dispute over the appropriate burden of proof for employers claiming such exemptions.
As summarized in Dykema’s December 2024 edition, Petitioner E.M.D. Sales, Inc. (EMD) is a Maryland-based company that distributes products to independent and chain stores across the Washington, D.C., metropolitan area. The respondents, three current and former EMD sales representatives, alleged they were owed overtime under the FLSA.
The question before the Court was whether EMD needed to prove the sales representatives were exempt from the FLSA under a preponderance of the evidence standard or a clear and convincing standard.
In an eight-page opinion written by Justice Kavanaugh, the Court unanimously held that preponderance of the evidence is the correct standard. The Court reasoned that the FLSA does not specify a standard of proof for exemptions, and when a civil statute is silent, courts typically apply the preponderance standard. The Court emphasized that this standard remains the default in American civil litigation unless otherwise provided by statute or the Constitution. The Court rejected arguments for a heightened standard, finding that no constitutional principle or statutory language requires a greater burden of proof in the case and that there was no coercive or unusual government action at play to justify a departure from the default preponderance standard. The Court also noted that similar workplace protections, such as those under Title VII, apply the preponderance standard.
In a concurring opinion joined by Justice Thomas, Justice Gorsuch acknowledged common-law principles may require a heightened standard of proof. But he agreed that courts must apply the default standard unless the legislature or the Constitution states otherwise.
Takeaways
- The ruling benefits employers seeking to establish FLSA exemptions, as they need to meet the preponderance standard, rather than a heightened burden of proof.
- More broadly, the decision sets a clear precedent that federal courts will default to the preponderance standard in civil cases, whether presenting federal-law or state-law claims, unless the law instructs otherwise or the case involves unusual or coercive government action.
For more information, please contact Chantel Febus, James Azadian, Mark Magyar, or Christopher Sakauye.