E.M.D. Sales, Inc. v. Carrera
In a positive decision for employers, the Supreme Court ruled unanimously that preponderance of the evidence is the standard of proof that an employer must meet to prove that an employee is exempt from the Fair Labor Standards Act (FLSA). This case involved several sales representatives who claimed they were entitled to overtime for hours worked over 40 hours per week. The company argued that they were exempt since they worked in outside sales. Both the District Court and the Fourth Circuit applied the more stringent clear and convincing evidence standard and ruled for the employees. The Fourth Circuit was the only appellate court applying the clear and convincing evidence standard, prompting the Supreme Court to review the decision to resolve the conflict among the judicial circuits.
What do these rulings mean for employers, and how should HR professionals prepare for potential changes?
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