E.M.D. SALES, INC., et al., v. CARRERA, et al.

Issue

What is the correct standard of proof for employers claiming an exemption from the FLSA’s overtime compensation requirements.

October 10, 2023

The Restaurant Law Center and others filed an amicus curiae urging the U.S. Supreme Court to review a decision by the Fourth Circuit. The Fourth Circuit held that employers must prove their entitlement to an exemption from the FLSA’s overtime compensation requirements “by clear and convincing evidence.” Other circuits, in accordance with the default rule in civil litigation, have uphold the “preponderance of the evidence” standard.

January 15, 2025

The Supreme Court agreed with our arguments and held that the “preponderance-of-the-evidence” standard applies when an employer seeks to demonstrate that an employee is exempt from the minimum-wage and overtime-pay provisions of the FLSA. The Court highlighted that when Congress enacted the FLSA in 1938, the preponderance-of-the-evidence standard was the default in American civil litigation, and it remains so today.