New court case says you could be eligible for overtime
The U.S. Supreme Court has made a big decision in a recent case that will affect many employers and employees alike. The case, Helix Energy Solutions Group, Inc. v. Hewitt has far-reaching consequences for the Fair Labor Standards Act (FLSA) and the "salary basis test."
The case centered around a rig oil worker who, despite earning a daily rate that added up to over $200,000 a year, said he was entitled to overtime pay because he did not meet the salary basis requirement mandated by the Fair Labor Standards Act (FLSA).
The court considered the FLSA and its "salary basis test," which has implications for white collar exemptions from overtime pay. Hewitt was paid more than $200,000 annually but still entitled to overtime pay as he was not paid on a salary basis, as required by the FLSA. The employer argued that Hewitt should be exempt from the FLSA's overtime requirements as he had exempt job duties, but the court held that his compensation structure did not meet the salary basis test under the regulations.
The court also rejected the employer's argument that Hewitt should be considered a "highly compensated employee" under FLSA overtime regulations. While highly compensated employees only need to have some exempt job duties, the court indicated that the threshold question is whether the employee was paid on a "salary basis." In Hewitt's case, as he was paid a daily rate, he did not meet the salary basis test, and thus...
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