SCOTUS Delivers Win to Employers in Overtime Exemption Cases by Rejecting Higher Standard of Proof: Key Takeaways
The Supreme Court just handed businesses a win when it weighed in on how much evidence an employer needs to show a court to prove it correctly classified employees as exempt from minimum wage and overtime pay. As we correctly predicted after oral argument, the Justices agreed with the employer that an unusually high “clear and convincing” evidence standard does not apply to federal wage law. Rather, an employer needs only show its position is more likely than not correct under the “preponderance of the evidence” standard that is typically applied in civil lawsuits. Today’s unanimous decision sets a consistent national standard under the Fair Labor Standards Act (FLSA) and will reduce litigation risks by making it easier to show that employees are properly classified. Here are the key points you should know about the ruling and what it means for your workplace. How Did We Get Here? Exempt Classification Challenged: In E.M.D. Sales Inc. v. Carrera ,...