E.M.D. Sales, Inc. v. Carrera

Background

A food distributor in the Washington, D.C., area employed sales representatives who managed inventory and took orders at grocery stores. The workers sued saying they worked over 40 hours without overtime pay. At a bench trial, the district court found the company liable because it had not proven the workers were "outside salesmen" by clear and convincing evidence. The Fourth Circuit affirmed based on its precedent requiring clear-and-convincing proof, creating a split with other appeals courts.

Reasoning

The key question was what proof standard employers must meet to show an FLSA exemption. The Court held that the default civil standard — proof by a preponderance of the evidence — applies. The FLSA does not set a different standard. Heightened standards apply only when Congress says so, the Constitution requires it, or in rare cases of unusually coercive government action. None of those exceptions applied here. The Court reversed the Fourth Circuit and sent the case back for further proceedings under the preponderance standard.

Real world impact

Employers now face a lower burden when arguing exemptions, and workers may find it easier to prevail on unpaid overtime claims. The decision resolves a split among appeals courts and will guide lower courts deciding similar cases. This ruling is not a final finding on whether these particular employees were exempt; that factual question will be decided on remand under the lower standard.

Dissents or concurrances

Justice Gorsuch, joined by Justice Thomas, wrote separately to emphasize that courts should apply background common-law standards unless Congress or the Constitution dictates otherwise.