The U.S. Supreme Court ruled unanimously Wednesday that exemptions under the Fair Labor Standards Act (FLSA) should not require heightened evidence standards, upholding the default preponderance of evidence standard typically used in civil trials.

Justice Brett Kavanaugh, delivering the opinion of the court, rejected the employees' arguments for a stricter burden of proof. "After all, other workplace protections that vindicate important public interests remain subject to the preponderance standard," Kavanaugh wrote. He emphasized that the court deviates from this standard only when a statute requires it, the Constitution mandates it, or in cases where the government takes drastic actions such as revoking citizenship.

At the core of the case, EMD Sales Inc. v. Carrera, was whether disputes over FLSA overtime exemptions should require the higher clear and convincing evidence standard. The Fourth Circuit Court had ruled that EMD Sales Inc. and its owner, Elda Devarie, failed to prove by clear and convincing evidence that three workers fell under the FLSA’s outside sales exemption.

The workers argued they were misclassified and entitled to overtime wages. Under the FLSA, outside sales exemptions apply when an employee’s primary duty involves making sales or obtaining orders and when the employee is “customarily and regularly engaged away from the employer’s place of business.” Unlike other exemptions, the outside sales category does not require meeting a salary threshold.

In its July 2023 decision, the Fourth Circuit found that the workers spent more than half their time at chain stores, stocking shelves and placing orders but rarely making their own sales. This led the court to determine they were not properly classified as exempt.

During oral arguments in November, the Supreme Court justices pressed the workers’ counsel to explain why the FLSA should warrant a heightened standard compared to other statutes like Title VII. The U.S. Department of Justice also weighed in with an amicus brief in May, urging the high court to reaffirm the preponderance standard.

In a concurring opinion, Justice Neil Gorsuch, joined by Justice Clarence Thomas, stressed that courts should apply the default preponderance standard unless Congress explicitly alters it or the Constitution requires a different approach.

The workers originally filed their lawsuit in 2017, leading to a 2021 ruling by U.S. District Judge James K. Bredar of Maryland that they were not exempt from overtime due to their primary duties.

EMD Sales Inc. and Devarie were represented by attorneys from Williams & Connolly LLP and Stein Sperling Bennett De Jong Driscoll PC. The workers were represented by Public Citizen Litigation Group and Melehy & Associates LLC.

The case reaffirms that disputes over FLSA exemptions will continue to be resolved under the preponderance of evidence standard, aligning the statute with other workplace laws. The case is EMD Sales Inc. et al. v. Carrera et al., case number 23-217, in the U.S. Supreme Court.