Supreme Court sets record straight on standard for demonstrating FLSA exemption

In a recent decision, the U.S. Supreme Court answered an age-old question regarding the evidentiary standard required for an employer to demonstrate an employee meets an exemption to the Fair Labor Standards Act’s (FLSA) overtime requirements. It’s well-settled that an employer claiming a worker is exempt from overtime has the burden of proving the employee meets an FLSA exemption. However, despite the Act’s nearly 90-year tenure, it’s been unclear what evidentiary standard of proof applies to the employer’s burden. On January 15, 2025, the Supreme Court held an employer must prove only by a preponderance of the evidence that an employee meets an exemption from overtime requirements under the FLSA.

History of the FLSA

Congress enacted the FLSA in 1938, ushering in an era of guaranteed federal minimum wage for covered workers and required overtime pay. However, Congress also included numerous exemptions from the Act’s overtime requirements, including employees working as outside salesmen, seamen, switchboard operators, and much more.