The Supreme Court issued a decision last week that makes it easier for employers to prove an employee is exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act (FLSA). The Court held that the "preponderance of the evidence" standard of proof (effectively, more likely than not) applies instead of the more stringent "clear and convincing evidence" standard of proof when an employer seeks to demonstrate that an employee is exempt from the FLSA.
This is good news for employers because a consistent standard of proof will now be applied across the country. The decision is especially important for employers in the Fourth Circuit (Maryland, North Carolina, South Carolina, Virginia and West Virginia) because the Fourth Circuit was the only federal Court of Appeals that required application of the clear and convincing evidence standard of proof.
The decision does not change much for day-to-day HR decisions, and FLSA exemptions still should be analyzed on a case-by-case basis. However, if an employer's decision is challenged in court, the employer is more likely to win as long as it can show justification for the exemption.
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