Today, the U.S. Supreme Court ruled unanimously in EMD Sales, Inc. v. Carrera in favor of wholesale distribution company E.M.D. Sales, Inc and its interpretation of the Fair Labor Standards Act (FLSA). In its decision, the Court reversed the lower courts’ decisions and found that employers must only meet a ‘preponderance of the evidence’ standard when demonstrating that an outside sales employee is exempt from federal minimum wage and overtime requirements. A converse ruling would have also made it difficult for wholesaler-distributors to prove exemptions under the FLSA.

Background: Heard by the Court in November 2024, this case involved three salespeople for E.M.D. Sales, a food product distribution company in Washington D.C., who sued the organization for failing to pay overtime when they worked more than 40 hours per week. E.M.D. argued that the employees qualified for the '“outside salesman” FLSA exemption. The district court previously held that E.M.D. failed to prove the exemption applied by “clear and convincing evidence,” and the 4th Circuit followed its precedent and affirmed.

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