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Employee making $200K can earn overtime, SCOTUS holds - HR Dive

by Ryan Golden
Wed, Feb 22, 2023 03:00 ET
in Press Release

  • A tool pusher for oil and gas company Helix Energy Solutions who made more than $200,000 a year but was paid on a daily basis is not exempt from the Fair Labor Standards Act’s overtime pay requirements, the U.S. Supreme Court ruled Wednesday (Helix Energy Solutions, Inc. v. Hewitt, No. 21–984 (U.S. Feb. 22, 2023)).
  • In a 6-3 decision authored by Justice Elena Kagan, the Court held that Michael Hewitt did not meet the FLSA’s definition of an executive because workers like Hewitt who are paid on a daily rate basis, regardless of their income level, may only qualify for the exemption if they are paid on a salary basis.
  • Helix’s pay structure for Hewitt did not meet FLSA’s salary-basis criteria, Kagan wrote. The high court’s ruling affirms the judgment of the 5th U.S. Circuit Court of Appeals.

  • Dive Insight:

    The court’s decision may be an unexpected one for some observers in the employment law community, not least because the question the appellant, Helix, originally presented to the court differs from the question the court ultimately answered.

    Under the FLSA, employers may exempt bona fide executive, administration and professional employees from the law’s overtime pay requirements if the following conditions laid out in Part 541 of the FLSA’s regulations are met:

    • The employee earns total annual compensation of $107,432 or more, which includes at least $684 per week, paid on a salary or fee basis.
    • The employee’s primary duty includes performing office or nonmanual work.
    • ...


    • Read Full Story: https://news.google.com/rss/articles/CBMiZWh0dHBzOi8vd3d3LmhyZGl2ZS5jb20vbmV3...


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