Maryland Employment Attorneys – Luchansky Law

The U.S. Supreme Court is about to rule on a critical issue regarding the evidentiary standard employers must meet to classify employees as exempt from the Fair Labor Standards Act’s (FLSA) overtime requirements. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting private, federal, State, and local government employees. This decision could significantly impact employers in states within the 4th U.S. Circuit Court of Appeals’ jurisdiction, which includes Maryland, by potentially overturning stringent standards and reducing FLSA compliance costs.

Employer’s Burden of Proof

The Supreme Court will decide whether employers must provide “clear and convincing” evidence or just “some” evidence to prove an FLSA exemption. Currently, the 4th Circuit mandates the higher “clear and convincing” standard, making it more challenging for employers in that region to classify employees as exempt.

A decision favoring the 4th Circuit’s standard could increase lawsuits from employees aiming to collect backpay, with employers facing penalties for FLSA violations. At the very least, a decision favoring the 4th Circuit will increase the administrative burden for HR professionals and raise the risk associated with employee classification decisions. 

Financial Implications for Employers

The FLSA exempts 19 job categories, and disputes over these exemptions are common in litigation, often resulting in significant financial consequences for employers. However, implementing a uniform standard that rejects the 4th Circuit’s stringent approach could lead to cost savings and streamlined processes, offering a more optimistic outlook for employers operating across different jurisdictions.

The Supreme Court’s impending decision carries considerable implications for employers. A ruling that lowers the evidentiary burden could streamline exemption analyses and reduce compliance costs, providing advantages for businesses within and outside the 4th Circuit. 

 For more information about the FLSA case before SCOTUS and how it can affect your business contact (410) 522-1020, email, or visit our office at 606 Bosley Avenue, Suite 3B, Towson, Maryland 21204.

About Luchansky Law 

Luchansky Law specializes in resolving workplace disputes for employers and employees across Maryland. Our attorneys bring extensive experience and a practical approach to protecting your rights, navigating new regulations, and ensuring compliance. Our team combines legal expertise and practical experience to solve workplace challenges and effectively meet legal and business needs.