Accessibility Tools

Skip to main content

The Supreme Court Makes It Easier for Employers to Defend Overtime Claims

Written on .

The Fair Labor Standards Act has multiple exemptions for employers’ obligation to pay overtime for hours worked over 40.  In a Supreme Court ruling issued on January 15, 2025, the Supreme Court reversed a court of appeals ruling requiring “clear and convincing evidence” that an overtime exemption applied.  E.M.D. Sales Inc. v. Carrera, No. 23-217.  The Court found that employers may show an exemption by the “preponderance of the evidence” standard, the standard in most civil litigation.  The Court found the standard does not change just because important public interests are involved, as the same applies to a number of laws.

Editor’s Note: In spite of this ruling, employers should review their payroll practices to insure that exemptions actually apply.   Currently, collective action lawsuits under the wage-hour laws are quite costly, and plaintiffs have reasons to pursue such actions because of the potential for liquidated damages and the award of attorney’s fees and costs.

This article is part of our February 2025 Newsletter. 

View newsletter online

Download the newsletter as a PDF

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
The May webinar will be led by Jim Wimberly, and the subject is the current status of the disparate impact theory of discrimination. The EE…
Early morning Bagan, Myanmar
The Trump Administration has acted to terminate TPS status for several countries.  Of course, litigation has followed each notice of termin…
staff
In many situations, employers utilizing staffing companies or other independent contractors to provide workers, enter into contracts with t…
discarded papers
During the Biden administration, a new concept was adopted by the Biden-appointed NLRB in which employers were required to bargain with a u…
be reasonable
In a memo to the NLRB regional offices in late February, NLRB General Counsel Crystal Carey told regional NLRB officials to reduce efforts…
gender neutral bathroom sign
On February 26, 2026, the Equal Employment Opportunity Commission (EEOC) ruled that federal employers can lawfully block transgender worker…