The U.S. Supreme Court has made a significant ruling in the case of E.M.D Sales, Inc. v. Faustino Sanchez Carrera, determining that the "preponderance of the evidence" standard is applicable when employers seek to prove an employee's exemption from the Fair Labor Standards Act (FLSA) provisions on minimum wage and overtime pay. This decision was announced yesterday and has been welcomed by the National Federation of Independent Business (NFIB).

Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, expressed approval of the ruling: “The small business community is pleased with today’s ruling.” She criticized the previous "clear and convincing evidence" standard used by a lower court as excessive and confusing, stating it would have negatively impacted small businesses. Milito emphasized that the reinstated "preponderance of the evidence" standard benefits both employers and consumers while ensuring employees can seek recompense.

The core issue in this case was identifying which proof standard should be applied to determine exemptions from overtime pay requirements under FLSA. NFIB's amicus brief argued for maintaining the traditional "preponderance of the evidence" approach, suggesting that deviating from this could lead to frivolous claims detrimental to employers and small businesses.

NFIB's Small Business Legal Center actively defends small business owners' rights across various courts in the United States, including more than 40 ongoing cases at federal and state levels.