US Supreme Court Clarifies Proof Standard for Overtime Rule (1)

Jan. 15, 2025, 3:10 PM UTCUpdated: Jan. 15, 2025, 3:27 PM UTC

The US Supreme Court rejected a heightened standard of proof for showing workers are exempt from the Fair Labor Standards Act’s overtime rules, making it easier for employers to show that employees aren’t entitled to overtime protections.

When a law is silent on the standard of proof, the preponderance-of-the-evidence standard typically applies, Justice Brett Kavanaugh wrote for the unanimous court on Wednesday.

Under that standard, employers must show that it’s more likely than not an employee is exempt from the overtime rules.

Employees for the international food distributor E.M.D. Sales said the higher clear-and-convincing standard was necessary to vindicate federal ...

Learn more about Bloomberg Tax or Log In to keep reading:

See Breaking News in Context

From research to software to news, find what you need to stay ahead.

Already a subscriber?

Log in to keep reading or access research tools and resources.