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.
