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Blogs

SCOTUS Digs into Jurisdiction in Pet Food Case

January 31, 20253 minute read

Although pet food and jurisdictional quandaries might seem equally unpalatable, the United States Supreme Court recently tackled a case that touched on both topics. Royal Canin U. S. A., Inc. v. Wullschleger, 604 U.S. ___, 2025 WL 96212, at *6 (U.S. Jan. 15, 2025). It all started with pet food marketing. Royal Canin U.S.A., Inc., was a company that manufactured dog food with an unusual catch: The product was exclusive to pets with a veterinarian’s prescription. Presumably wanting the best for her dog, Ms. Anastasia Wullschleger received the requisite prescription and purchased the dog food for a premium price. But Wullschleger later discovered that Royal Canin’s product was indistinguishable from cheaper over-the-counter options. Following her revelation, Wullschleger filed a lawsuit in state court, citing Royal Canin’s dubious marketing practices. She alleged that the company was fooling pet owners into paying an inflated cost for “premium” dog food that was anything but. Along with state-based causes of action, Wullschleger’s complaint alleged federal claims, all arising under the Federal Food, Drug, and Cosmetic Act.

Citing Wullschleger’s latter allegations, Royal Canin successfully removed the suit to a federal forum. At the time of removal, the district court had original jurisdiction over Wullschleger’s federal claims, while retaining supplemental jurisdiction over her state-based ones. Dissatisfied with the removal, however, Wullschleger attempted a return to state court by filing an amended complaint that deleted every mention of the Federal Food, Drug, and Cosmetic Act. Because the amended complaint left state-law claims standing “on their own,” Wullschleger argued that the district court lacked jurisdiction over the lawsuit and moved for a remand, which the district court denied.  But on appeal, Wullschleger’s arguments found a more receptive audience before the Eighth Circuit: A three-judge panel concluded that Wullschleger’s amended complaint, which only retained state causes of action, eliminated any basis for federal question jurisdiction. In so holding, the Eighth Circuit departed from the reasoning many of its sister circuits deployed. These other courts differ in holding that a “post-removal amendment [could not] divest a federal court of jurisdiction,” because subject matter jurisdiction was determined by examining the complaint at the time of filing.

Royal Canin believed the Eighth Circuit’s ruling was in error for not falling in line with that reasoning, so it sought review with the United States Supreme Court. In resolving the circuit split, the Court framed the issue as follows: Does an amended complaint that disposes of federal claims destroy jurisdiction in removed cases? Writing for a unanimous court, Justice Kagan answered that question in the affirmative, holding that the district court lacked power to resolve Wullschleger’s lawsuit after the amended complaint erased all federal-based claims. To reach its conclusion, the court considered how amended complaints alter jurisdiction in non-removal cases—i.e., cases where the plaintiff originally files the action in federal court.  In those instances, the court explained that an amended complaint, rather than the original one, “determine[s] jurisdiction.”  The same rule, the Court thought, should apply with equal force in removal actions. Finding further support in federal statutes, civil procedure rules, and case law, the nine justices all agreed on a basic jurisdictional principle: “The appropriateness of federal jurisdiction—or lack thereof—does not depend on whether the plaintiff first filed suit in federal or state court”; it depends “on the substance of the suit—the legal basis of the claims (federal or state) and the citizenship of the parties (diverse or not?).” And, in all events, an amended complaint devoid of federal claims divests courts of federal question jurisdiction. As a result, Royal Canin and Wohlschlaeger must resolve their beef—or more accurately, the improper marketing of it—in a state forum.

For further questions regarding this ruling, please contact Liskow attorneys Kelly Becker, Ellen D. George, and Chace Vienne and visit our Appellate practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the link located at the bottom of every email that you receive.

Blogs

Senate Confirms Zeldin as EPA Administrator, President Trump’s EPA Begins to Take Shape

January 30, 20252 minute read

On January 29, 2025, the Senate voted to confirm former New York Rep. Lee Zeldin as EPA Administrator. Zeldin is a 44-year-old attorney who represented New York’s 1st Congressional District from 2015-2023. During his congressional tenure, Zeldin was known for his experience in international affairs, and his nomination for EPA Administrator was unexpected due to his limited experience with environmental policy issues.

In November 2024, then President-elect Donald Trump announced his selection of Lee Zeldin to serve as EPA Administrator, stating that he “will ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American businesses, while at the same time maintaining the highest environmental standards, including the cleanest air and water on the planet.” Following his selection, Zeldin stated in a post on social media: “It is an honor to join President Trump’s Cabinet as EPA Administrator. We will restore U.S. energy dominance, revitalize our auto industry to bring back American jobs, and make the U.S. the global leader of AI. We will do so while protecting access to clean air and water.”

Both President Trump’s and Zeldin’s comments shed light on the Administration’s vision for the EPA over the next four years, which includes the pursuit of a deregulatory agenda and the potential scaling back of environmental policies and regulations from the Biden administration. Notable points from the nomination hearing include Zeldin’s indication that he would not be eliminating EPA’s enforcement office and that he will be honoring the U.S. Supreme Court’s recent Loper Bright decision in ensuring that EPA actions comport with congressional intent. Other major energy and environmental issues that the agency seeks to tackle under Zeldin’s leadership include permitting reform aimed at increasing domestic energy production and reassessment of EPA’s currently existing finding that greenhouses gases endanger public health.

Liskow will be monitoring and covering EPA actions under the new administration on Liskow’s The Louisiana Industrial Insights Hub. For more information on industry impacts and opportunities arising under the new administration, please contact Liskow attorneys Greg Johnson, Clare Bienvenu, and Colin North.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.

Blogs

Senate Confirms Zeldin as EPA Administrator, President Trump’s EPA Begins to Take Shape

January 30, 20252 minute read

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On January 29, 2025, the Senate voted to confirm former New York Rep. Lee Zeldin as EPA Administrator. Zeldin is a 44-year-old attorney who represented New York’s 1st Congressional District from 2015-2023. During his congressional tenure, Zeldin was known for his experience in international affairs, and his nomination for EPA Administrator was unexpected due to his limited experience with environmental policy issues.

In November 2024, then President-elect Donald Trump announced his selection of Lee Zeldin to serve as EPA Administrator, stating that he “will ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American businesses, while at the same time maintaining the highest environmental standards, including the cleanest air and water on the planet.” Following his selection, Zeldin stated in a post on social media: “It is an honor to join President Trump’s Cabinet as EPA Administrator. We will restore U.S. energy dominance, revitalize our auto industry to bring back American jobs, and make the U.S. the global leader of AI. We will do so while protecting access to clean air and water.”

Both President Trump’s and Zeldin’s comments shed light on the Administration’s vision for the EPA over the next four years, which includes the pursuit of a deregulatory agenda and the potential scaling back of environmental policies and regulations from the Biden administration. Notable points from the nomination hearing include Zeldin’s indication that he would not be eliminating EPA’s enforcement office and that he will be honoring the U.S. Supreme Court’s recent Loper Bright decision in ensuring that EPA actions comport with congressional intent. Other major energy and environmental issues that the agency seeks to tackle under Zeldin’s leadership include permitting reform aimed at increasing domestic energy production and reassessment of EPA’s currently existing finding that greenhouses gases endanger public health.

Liskow will be monitoring and covering EPA actions under the new administration on Liskow’s The Louisiana Industrial Insights Hub. For more information on industry impacts and opportunities arising under the new administration, please contact Liskow attorneys Greg Johnson, Clare Bienvenu, and Colin North.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the link located at the bottom of every email that you receive.

Blogs

Liskow Attorneys Secure Fifth Circuit Victory for Charitable Foundations in Trust Dispute

January 28, 20252 minute read

On January 23, 2025, Philip Kirk Jones and Kelly Scalise secured a significant appellate victory for two charitable foundations, The Marshall Heritage Foundation and Marshall Legacy Foundation (“Foundations”), in a trust litigation brought by a co-trustee of the Foundations against a co-trustee of the Peroxisome Trust, the funding trust of the Foundations.  The Foundations had sought removal of the co-trustee based on breaches of trust and fiduciary duty and the award of damages personally against the co-trustee under the Louisiana Trust Code. 

In a precedential opinion, the Court of Appeals for the Fifth Circuit affirmed the judgment of the district court (E.D. La. (Fallon, J.)), removing the co-trustee of the Peroxisome Trust and awarding over $11 million dollars in damages to the Foundations borne personally by the Peroxisome Trust co-trustee.  First, the Fifth Circuit held that there was complete diversity of citizenship, rejecting the co-trustee’s argument that the citizenship of non-party trustees of the Foundations must be considered.  The appellate court was quite clear that only the citizenship of the named trustee who filed suit on behalf of the Foundations mattered for purposes of diversity.  The appellate court looked to Doermer v. Oxford Financial Group, Ltd., 884 F.3d 643 (7th Cir. 2018) as support, and determined that its decision was fully in line with Supreme Court precedents of Navarro Savings Association v. Lee, 446 U.S. 458 (1980), and Americold Realty Trust v. Conagra Foods, Inc., 577 U.S. 378 (2016).  Second, the Fifth Circuit found that there was no abuse of discretion in the district court’s decision that the unnamed co-trustees of the Foundations were not necessary or indispensable parties under Federal Rule of Civil Procedure 19.  Third, the Fifth Circuit rejected the co-trustee’s argument that res judicata barred the suit.  The appellate court held that the litigation arose from post-judgment actions by the co-trustee and thus the cause of action did not exist at the time of a previous litigation.  The Fifth Circuit also found that the parties appeared in different capacities; thus, res judicata again did not apply.  Finally, the Fifth Circuit summarily dismissed the co-trustee’s argument that summary judgment should not have been granted due to evidence of comparative fault.  Like the district court, the Fifth Circuit found that argument to be “unconvincing” and “meritless.”

If you have any questions about this case, please contact Philip Kirk Jones and Kelly Scalise and visit our Appellate practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.

Blogs

Liskow Attorneys Secure Fifth Circuit Victory for Charitable Foundations in Trust Dispute

January 28, 20253 minute read

On January 23, 2025, Philip Kirk Jones and Kelly Scalise secured a significant appellate victory for two charitable foundations, The Marshall Heritage Foundation and Marshall Legacy Foundation (“Foundations”), in a trust litigation brought by a co-trustee of the Foundations against a co-trustee of the Peroxisome Trust, the funding trust of the Foundations.  The Foundations had sought removal of the co-trustee based on breaches of trust and fiduciary duty and the award of damages personally against the co-trustee under the Louisiana Trust Code. 

In a precedential opinion, the Court of Appeals for the Fifth Circuit affirmed the judgment of the district court (E.D. La. (Fallon, J.)), removing the co-trustee of the Peroxisome Trust and awarding over $11 million dollars in damages to the Foundations borne personally by the Peroxisome Trust co-trustee.  First, the Fifth Circuit held that there was complete diversity of citizenship, rejecting the co-trustee’s argument that the citizenship of non-party trustees of the Foundations must be considered.  The appellate court was quite clear that only the citizenship of the named trustee who filed suit on behalf of the Foundations mattered for purposes of diversity.  The appellate court looked to Doermer v. Oxford Financial Group, Ltd., 884 F.3d 643 (7th Cir. 2018) as support, and determined that its decision was fully in line with Supreme Court precedents of Navarro Savings Association v. Lee, 446 U.S. 458 (1980), and Americold Realty Trust v. Conagra Foods, Inc., 577 U.S. 378 (2016).  Second, the Fifth Circuit found that there was no abuse of discretion in the district court’s decision that the unnamed co-trustees of the Foundations were not necessary or indispensable parties under Federal Rule of Civil Procedure 19.  Third, the Fifth Circuit rejected the co-trustee’s argument that res judicata barred the suit.  The appellate court held that the litigation arose from post-judgment actions by the co-trustee and thus the cause of action did not exist at the time of a previous litigation.  The Fifth Circuit also found that the parties appeared in different capacities; thus, res judicata again did not apply.  Finally, the Fifth Circuit summarily dismissed the co-trustee’s argument that summary judgment should not have been granted due to evidence of comparative fault.  Like the district court, the Fifth Circuit found that argument to be “unconvincing” and “meritless.”

If you have any questions about this case, please contact Philip Kirk Jones and Kelly Scalise and visit our Appellate practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the link located at the bottom of every email that you receive.

Blogs

LDR Provides RIB Retaining Certain Sales and Use Tax Exemptions Inadvertently Repealed by State Tax Reform Measures

January 27, 20252 minute read

In response to the 2024 Third Extraordinary Session to address state tax reform, the Louisiana Department of Revenue (the “Department”) issued Revenue Information Bulletin No. 25-009 to clarify that certain exemptions and exclusions were inadvertently repealed due to “technical oversights.” Although certain exemptions related to sales by nonprofit organizations and admissions to athletic or entertainment events of educational institutions appear to have been repealed, the Department has determined that repealing these exemptions was inconsistent with the legislature’s intent.

Accordingly, the Department has stated in RIB No. 25-009 that it will continue to recognize the exemptions created under La. R.S. §§ 47:305.14 and 47:305.6(5) unless “the legislature does not adopt legislation confirming its intent to retain these exemptions in the 2025 Regular Session.” This means that nonprofit organizations will still be eligible to seek Form R-1048 exemptions and that taxpayers may bind the Department to honor the RIB at least until the 2025 Regular Session. The Department encouraged local sales tax collectors to afford the same relief at the local level.

The Department has updated two tables it published highlighting Sales and Use Tax Exclusions and Exemptions Repealed and Retained by Act 11 of the Third Extraordinary Session. We will continue to monitor the Department for additional guidance clarifying the scope of state tax reform and provide updates accordingly.

Contact Bob Angelico, Leon Rittenberg III, Caroline Lafourcade, or Kevin Naccari, Jr. for additional information or questions regarding how these changes might impact your tax payment or collection obligations in Louisiana, and visit our Tax practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.

Blogs

LDR Provides RIB Retaining Certain Sales and Use Tax Exemptions Inadvertently Repealed by State Tax Reform Measures

January 27, 20252 minute read

In response to the 2024 Third Extraordinary Session to address state tax reform, the Louisiana Department of Revenue (the “Department”) issued Revenue Information Bulletin No. 25-009 to clarify that certain exemptions and exclusions were inadvertently repealed due to “technical oversights.” Although certain exemptions related to sales by nonprofit organizations and admissions to athletic or entertainment events of educational institutions appear to have been repealed, the Department has determined that repealing these exemptions was inconsistent with the legislature’s intent.

Accordingly, the Department has stated in RIB No. 25-009 that it will continue to recognize the exemptions created under La. R.S. §§ 47:305.14 and 47:305.6(5) unless “the legislature does not adopt legislation confirming its intent to retain these exemptions in the 2025 Regular Session.” This means that nonprofit organizations will still be eligible to seek Form R-1048 exemptions and that taxpayers may bind the Department to honor the RIB at least until the 2025 Regular Session. The Department encouraged local sales tax collectors to afford the same relief at the local level.

The Department has updated two tables it published highlighting Sales and Use Tax Exclusions and Exemptions Repealed and Retained by Act 11 of the Third Extraordinary Session. We will continue to monitor the Department for additional guidance clarifying the scope of state tax reform and provide updates accordingly.

Contact Bob Angelico, Leon Rittenberg III, Caroline Lafourcade, or Kevin Naccari, Jr. for additional information or questions regarding how these changes might impact your tax payment or collection obligations in Louisiana, and visit our Tax practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the link located at the bottom of every email that you receive.

Blogs

SCOTUS Stays Injunction on BOI Reporting Requirements

January 23, 20252 minute read

The Supreme Court of the United States stayed a nationwide injunction on January 23, 2025 in McHenry v. Texas Top Cop Shop, Inc. that would allow enforcement of the Beneficial Ownership Information (“BOI”) reporting requirements under the Corporate Transparency Act. However, FinCEN acknowledged on January 24, 2025 that the nationwide injunction from a different Eastern District of Texas case, Smith v. U.S. Department of the Treasury, remains in effect. As a result of the Smith case, BOI reports are still not required to be filed. Oral arguments in the Texas Top Cop Shop case are currently scheduled for March 25, 2025 before the United States Fifth Circuit Court of Appeal. Oral arguments have not been scheduled for the Smith case. We will provide further updates about the status of the BOI reporting deadline as they become available.

For further questions regarding the update, contact Liskow attorneys Leon Rittenberg III, Julie Chauvin, Marilyn Maloney, Caroline Lafourcade or Kevin Naccari, Jr. and visit our Tax Practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.

Blogs

SCOTUS Stays Injunction on BOI Reporting Requirements

January 23, 20252 minute read

The Supreme Court of the United States stayed a nationwide injunction on January 23, 2025 in McHenry v. Texas Top Cop Shop, Inc. that would allow enforcement of the Beneficial Ownership Information (“BOI”) reporting requirements under the Corporate Transparency Act. However, FinCEN acknowledged on January 24, 2025 that the nationwide injunction from a different Eastern District of Texas case, Smith v. U.S. Department of the Treasury, remains in effect. As a result of the Smith case, BOI reports are still not required to be filed. Oral arguments in the Texas Top Cop Shop case are currently scheduled for March 25, 2025 before the United States Fifth Circuit Court of Appeal. Oral arguments have not been scheduled for the Smith case. We will provide further updates about the status of the BOI reporting deadline as they become available.

For further questions regarding the update, contact Liskow attorneys Leon Rittenberg III, Julie Chauvin, Marilyn Maloney, Caroline Lafourcade or Kevin Naccari, Jr. and visit our Tax Practice page.

 

 

 

 

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the link located at the bottom of every email that you receive.

Blogs

Employers Win: Lower Burden of Proof Required to Prove FLSA Exempt Status

January 21, 20252 minute read

In E.M.D. Sales, Inc. v. Cabrera, the Supreme Court unanimously held that a preponderance of the evidence standard applies when an employer must demonstrate that its employees were correctly classified as exempt from the minimum-wage and overtime-pay requirements of the Fair Labor Standards Act (“FLSA”). That’s good news for employers and bad news for the group of sales representative employees who brought the suit seeking large sums of overtime pay, arguing that the more onerous clear and convincing evidence standard applied. 

Rejecting the employees’ “policy-laden arguments” for the heightened standard of proof, the Supreme Court observed that “the public interest in Fair Labor Standards Act cases does not fall entirely on the side of employees.” “Rather than choose sides in a policy debate,” the Court reasoned that the preponderance standard, the default in civil litigation, applied because: (1) the FLSA did not specify a standard of proof for exemptions; (2) the case did not implicate any constitutional rights that might require a heightened standard; and (3) the case did not involve the government taking “unusual coercive action” against an individual.  The Court has now paved the way for a consistent and less burdensome standard for demonstrating that an employee is exempt under the FLSA, which will be particularly helpful to employers facing overtime pay litigation. 

For further questions regarding this update, contact Liskow attorneys Thomas McGoey and Ellen George and visit our Labor & Employment practice page.

Disclaimer: This Blog/Web Site is made available by the law firm of Liskow & Lewis, APLC (“Liskow & Lewis”) and the individual Liskow & Lewis lawyers posting to this site for educational purposes and to give you general information and a general understanding of the law only, not to provide specific legal advice as to an identified problem or issue. By using this blog site you understand and acknowledge that there is no attorney-client relationship formed between you and Liskow & Lewis and/or the individual Liskow & Lewis lawyers posting to this site by virtue of your using this site. The Blog/Web Site should not be used as a substitute for legal advice from a licensed professional attorney in your state regarding a particular matter.

Privacy Policy: By subscribing to Liskow & Lewisʼ E-Communications, you will receive articles and blogs with insight and analysis of legal issues that may impact your industry. Communications include firm news, insights, and events. To receive information from Liskow & Lewis, your information will be kept in a secured contact database. If at any time you would like to unsubscribe, please use the SafeUnsubscribe® link located at the bottom of every email that you receive.

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