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The United States Supreme Court’s Decision on the Standard of Proof for FLSA Exemption Status Determinations Has Limited Significance for California Private Schools

CATEGORY: Special Bulletins
CLIENT TYPE: Private Education
PUBLICATION: LCW Special Bulletin
DATE: Jan 21, 2025

On January 15, 2025, the United States Supreme Court issued a ruling in E.M.D. Sales, Inc. v. Carrera (2025) __ U.S. __.  It held that the preponderance-of-the-evidence standard applies when an employer designates an employee as “exempt” under the Fair Labor Standards Act (FLSA).  That decision has limited significance for California private schools.

In the Ninth Circuit, which includes California, the preponderance-of-the-evidence standard has long applied. (See Coast Van Lines, Inc. v. Armstrong (9th Cir. 1948) 167 F.2d 705, 707.)    In any case, California private schools are generally required to follow California wage and hour laws as well as the FLSA (there is an exception for ministerial employees at religious schools).  (See Ramirez v. Yosemite Water Co. (1999) 20 Cal. 4th 785, 795.)  Under California wage and hour law, courts have consistently used the preponderance-of-the evidence standard when ruling on wage and hour issues.  (See Heyen v. Safeway Inc. (2013) 216 Cal.App.4th 795, 810.)

Nonetheless, the U.S. Supreme Court’s decision is an important reminder for schools to conduct thorough and accurate exemption determinations.  A finding that a school improperly classified a non-exempt employee as exempt may carry significant monetary penalties in addition to overtime payments.

If your school needs assistance with exemption determinations or compliance with California and federal wage and hour laws, please contact our Los Angeles, San Francisco, Fresno, San Diego, or Sacramento office.

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