The Work Week with Bassford Remele | Exemptions Under the FLSA | 2/10/25

The Work Week with Bassford Remele

February 10, 2025

Welcome to another edition of The Work Week with Bassford Remele. Each Monday, we will publish and send a new article to your inbox to hopefully assist you in jumpstarting your work week. This week, we bring two topics to your inbox.

Bassford Remele Employment Practice Group

***

Supreme Court Settles Standard of Proof to Determine Exemptions under the FLSA

Beth L. LaCanne

The United States Supreme Court’s decision in E.M.D. Sales, Inc. v. Carrera, issued a few days before the start of the second Trump presidency, flew largely under the radar. With the legal community (and much of the public) focused on the executive orders and other actions of the new administration, this decision did not garner a lot of press. Although the decision will have the most significance in the Fourth Circuit, the sole district to apply a different standard, it serves as a good reminder for employers.

In a rare display of unanimity, all the justices of the Supreme Court agreed on the standard of proof required to demonstrate that employees are exempt under the Fair Labor Standards Act (“FLSA”). As a reminder, the FLSA establishes standards for minimum wage, overtime pay, recordkeeping, and youth employment. It aims to protect workers by ensuring fair compensation and regulating working hours for covered employees.

We previewed E.M.D. Sales, Inc. v. Carrera in a prior edition of the Work Week. The Supreme Court held that employers must prove an employee is exempt from the FLSA by a preponderance of the evidence. A preponderance of the evidence standard aligns with the typical standard of proof in other civil matters. Employers can meet their burden of proof for such exemptions by showing that it is more likely than not that the employee qualifies for the exemption.

While the standard of proof may be an “easier” one for employers to meet, employers should not lower their guard when determining whether workers are exempt. Litigation is expensive, even if there is an “easier” standard of proof. With proactive assessment and robust documentary evidence, employers may reduce the length of litigation. Some proactive measures employers can take include reviewing the job titles and responsibilities of workers currently classified as exempt to ensure they meet one of the enumerated exceptions.

At Bassford Remele, we regularly monitor important changes in case law and legislation and advise our clients on the same. We also advise clients regarding the impact of court decisions and new or amended legislation, including properly classifying employees.

Newsletter: The Work Week with Bassford Remele

Each Monday morning, the Bassford Remele Employment Team publishes and sends an article on a timely topic to your inbox to hopefully assist you in jumpstarting your work week. (Previous articles can be found at the bottom of the Employment Practice Group page.)

Subscribe to The Work Week here.

***

The Work Week with Bassford Remele, 02-10-25 (print version)

***

Bassford Remele proudly serves as local and national counsel for many major corporations and Fortune 500 Companies and is a go-to litigation firm representing local, national, and international clients in state and federal courts across the region. The firm provides comprehensive counsel and representation in litigation and dispute resolution, family law, and corporate matters, ensuring prompt and effective service for its clients.

Established in 1882, Bassford Remele is proud to be the oldest top-25 law firm based in Minnesota.

Bassford Remele | February 10, 2025