SCOTUS Gives Huge Win to Employers Fighting FLSA Claims

Today, in the case of E.M.D. The United States Supreme Court ruled today that employers do not have to meet a higher standard of proof in order to defend claims made under the Fair Labor Standards Act (FLSA). The decision is a win for employers who defend FLSA actions all over the country. Carrera’s plaintiffs/employees claimed they were denied overtime pay under the FLSA. In a bench trial, the district court applied a heightened “clear and convincing” evidence standard to E.M.D.’s outside sales defense, and ultimately found in the employees’ favor. The district court, in a bench-trial, applied a higher “clear-and-convincing” evidence standard for E.M.D.’s outside-sales defense, and ultimately found the employees’ side. You can read our previous discussion of the Carrera Case and its implications here.

In an important win for employers, The Supreme Court ruled that the lower preponderance standard should be applied. Justice Kavanaugh wrote for the unanimous Court that the Fourth Circuit is “alone” in requiring employers prove FLSA defenses with clear and convincing proof. The Court noted that, as a general matter, civil cases only require a higher burden of proof in three circumstances:

If a statute demands one;

If the Constitution requires one; or

In certain “uncommon” cases.

1. Ultimately, the Court found none of these circumstances applied to FLSA actions. Justice Kavanaugh stated that the “uncommon” actions are primarily a result of the government taking unusual coercive measures, which are more dramatic than a monetary award. This category does not include civil actions brought under FLSA. The Carrera plaintiffs argued FLSA exemption defenses require a higher evidentiary standard due to the “public interest in a functioning economy where workers are guaranteed fair wages.” Justice Kavanaugh countered by saying Title VII cases, which only require a preponderance standard of proof, also seek to vindicate public interests. Accordingly, the employees’ policy arguments for implementing a heightened standard of proof left the Court unconvinced.
2. The Court ultimately concluded that “the default preponderance standard governs when an employer seeks to prove that an employee is exempt” under the FLSA. The Court reversed the case and remanded it for further proceedings in accordance with its opinion.
3. As stated at the beginning, this decision is a major win for employers who are defending against FLSA claims. Carrera ensures, regardless of where it’s sued, that the ordinary, preponderance-of-the-evidence standard applies when an employer wants to show a plaintiff/employee as exempt from FLSA.

   Story originally seen here