E.M.D. Sales, Inc. v. Carrera concerns what standard of evidence the court should apply in cases of exceptions to the Fair Labor Standards Act. The District Court decided that E.M.D. was liable for some employee overtime because it did not prove by clear and convincing evidence that its sales representatives were outside salesmen. Therefore, they were not exempt from normal overtime rules. The Fourth Circut agreed, affirming the use of the clear-and-convincing evidence standard.
On January 15th, 2025, the Supreme Court, in a 9-0 decision, reversed the Fourth Circut’s decision and remanded the case. In an opinion by Justice Kavanaugh, it held that the preponderance-of-the-evidence standard applies when an employer seeks to show that an employee is exempt from the minimum wage and overtime pay provisions of the Fair Labor Standards Act.
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Michael J. O'Neill, Vice President of Legal Affairs, Landmark Legal Foundation