E.M.D. Sales, Inc. v. Carrera (Labor / Overtime Wages)

Supreme Court Decision Syllabus (SCOTUS Podcast)

E.M.D. Sales, Inc. v. Carrera (Decided January 15, 2025)
In E.M.D. Sales, Inc. v. Carrera, the Supreme Court considered the standard of proof employers must meet to classify employees as exempt from the Fair Labor Standards Act's (FLSA) overtime-pay provisions.

The case arose when sales representatives sued E.M.D. Sales, alleging they were improperly denied overtime pay under the FLSA. E.M.D. argued that the employees were exempt as "outside salesmen," but the lower courts required "clear and convincing evidence" to prove the exemption. The Supreme Court held that the correct standard is the usual "preponderance of the evidence" used in civil litigation unless a statute or constitutional principle demands otherwise.

The Court reversed and remanded, clarifying that the preponderance standard applies when an employer seeks to demonstrate an FLSA exemption.

Justice Kavanaugh delivered the opinion for a unanimous Court, with a concurrence by Justice Gorsuch joined by Justice Thomas.