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

E.M.D. Sales, Inc., a food distributor, classified its sales representatives as exempt from overtime pay under the Fair Labor Standards Act. Plaintiff Faustino Sanchez Carrera, a former employee, filed suit alleging the company misclassified him and owed unpaid overtime wages. The district court ruled in favor of the employer, applying the preponderance of the evidence standard. The Fourth Circuit reversed, holding that employers must satisfy a heightened clear and convincing evidence standard to prove FLSA exemptions. The case was argued before the Supreme Court on January 15, 2025, to resolve a circuit split on the applicable burden of proof for FLSA exemption claims.

Pending Supreme Court decision as of January 15, 2025. The case was argued before the Court to resolve the circuit split on the appropriate evidentiary standard for FLSA exemptions.

Whether employers must prove that employees are exempt from the Fair Labor Standards Act's overtime pay requirements by a preponderance of the evidence or by clear and convincing evidence.

This case will significantly impact employers and employees nationwide by clarifying the evidentiary burden for FLSA exemption claims. A heightened standard would make it more difficult for companies to classify workers as exempt, potentially expanding overtime eligibility for millions of workers and increasing employer compliance costs and litigation exposure across industries.