Employers seeking FLSA wage exemption don’t need heightened standard

In a case involving overtime allegedly owed to sales reps, the U.S. Supreme Court held that the “preponderance of the evidence” standard applies when an employer attempts to show an employee is exempt from the minimum wage and overtime pay requirements of the Fair Labor Standards Act (FLSA).

Employer claims exemption

Several sales representatives for EMD, a company that distributes international food products in Washington, D.C., sued their employer for failing to pay them overtime. EMD conceded that the sales representatives worked more than 40 hours per week without receiving overtime pay but argued they were exempt under the FLSA’s “outside salesman” exemption.

The FLSA generally requires employers to pay employees a minimum wage and overtime compensation when they work more than 40 hours a week. It exempts many categories of employees from these requirements, however, including those employed “in the capacity of outside salesman.” Significantly, the burden is on the employer to show an exemption applies.

Lower courts apply heightened standard of proof