WASHINGTON, D.C. (Jan. 16, 2025) – NFIB commends yesterday’s decision by the U.S. Supreme Court in the case E.M.D Sales, Inc. v. Faustino Sanchez Carrera. The Court determined that the “preponderance of the evidence” standard of proof applies when an employer seeks to demonstrate that an employee is exempt from the minimum wage and overtime pay provisions of the Fair Labor Standards Act (FLSA). NFIB filed an amicus brief in the case with the U.S. Chamber Litigation Center.

“The small business community is pleased with today’s ruling,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “The ‘clear and convincing evidence’ standard used by the lower court was excessive, confusing, and would have disproportionately impacted small businesses. The well-established ‘preponderance of the evidence’ standard protects employers, benefits consumers, and provides employees with ample opportunity to seek recompense. NFIB is pleased that the Court reestablished this balance by upholding the traditional standard.”

The case questioned what standard of proof should be used to determine if an exemption to an employee’s overtime pay requirements applies under the FLSA. NFIB’s brief argued that FLSA exceptions should be adjudicated under the traditional “preponderance of the evidence” standard by explaining how the Fourth Circuit’s alternative standard would encourage frivolous claims and harm employers and small businesses.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.