On August 14, 2024, WLF urged the Supreme Court to hold that employers must prove the applicability of FLSA exemptions by a preponderance of the evidence. Splitting from six other courts of appeals, the Fourth Circuit held that employers must prove the applicability of FLSA exemptions by clear and convincing evidence. WLF’s brief argues that the Fourth Circuit’s rule relied on the principle that FLSA exemptions must be construed narrowly. But the Supreme Court’s Encino Motorcars decision rejected that principle. WLF’s brief also explains why the Fourth Circuit’s holding conflicts with the history and purpose of the FLSA. If the Supreme Court affirms, businesses will be less efficient, prices will increase, or unemployment will rise—all bad outcomes for employers, employees, and consumers.
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