By Bruce M. Luchansky, Esq.
Introduction
Employers in Maryland and Washington, D.C. face complex legal challenges—particularly when it comes to wage and hour compliance.
One critical issue is whether an employee is properly classified as exempt from overtime under the Fair Labor Standards Act (FLSA).
A recent Supreme Court decision has made defending that classification significantly easier for employers.
Understanding Exempt Status
Under the FLSA, certain employees are exempt from overtime requirements.
Typically, this includes employees who:
- Are paid on a salary basis
- Perform executive, administrative, or professional duties
These employees are not entitled to overtime pay for hours worked beyond 40 in a workweek.
When Exempt Status Is Challenged
Problems arise when an employee disputes their classification.
For example, a Project Manager may argue that their primary duties are not truly managerial or administrative. If that employee files a lawsuit seeking unpaid overtime, the employer bears the burden of proof.
This raises an important question:
👉 What standard must the employer meet to prove the employee is properly classified as exempt?
The Legal Standard—Before and After
Historically, the answer depended on where the case was filed.
Before 2025, some federal courts—including the Fourth Circuit (which covers Maryland)—required employers to meet a “clear and convincing evidence” standard.
This is a high bar, typically reserved for serious matters like fraud, where facts must be proven to be highly probable.
Other courts applied a lower standard:
👉 “Preponderance of the evidence”
Under this standard, the employer only needs to show that it is more likely than not (i.e., just over 50%) that the employee is exempt.
The Supreme Court’s Decision
In E.M.D. Sales, Inc. v. Carrera, 604 U.S. 45 (2025), the United States Supreme Court resolved this split.
The Court held that:
👉 The correct standard is preponderance of the evidence.
In doing so, the Court rejected the higher “clear and convincing” standard previously applied in some jurisdictions.
Why This Matters
This decision is significant for employers—especially in Maryland.
By lowering the burden of proof:
- Employers now have a more manageable standard to meet
- Litigation risk becomes more predictable
- Defending exempt classifications becomes more feasible
The Court also noted that other major employment law claims—such as discrimination cases under Title VII—already use the preponderance standard, reinforcing consistency across legal frameworks.
Final Takeaway
While this decision is favorable to employers, wage and hour compliance remains complex.
👉 Proper classification still matters.
👉 Documentation and job duties still matter.
The ruling makes it easier to defend classifications—but it does not eliminate risk.
How Luchansky Law Can Help
If you are classifying employees as exempt—or facing a challenge to that classification—experienced legal guidance is essential.
Luchansky Law can help you navigate the complexities of the FLSA and minimize risk.
- 📞 410.522.1020
- 📧 lucky@luchanskylaw.com
