The U.S. Supreme Court heard oral arguments on Wednesday in a case that could impact how employers determine which employees are exempt from overtime pay. In Helix Energy Solutions Group v. Hewitt, the main question is whether a supervisor making over $200,000 each year is entitled to overtime pay under the federal Fair Labor Standards Act (FLSA).
"It's definitely a case of interest, and depending on the outcome, it will add more to the checklist in terms of how employees are classified," said Heather Robinson, an attorney with Herrick Feinstein in Newark, N.J.
"This case is especially likely to affect the oil and gas industries, the health care field, and other sectors where well-compensated employees are paid per day or shift," said Erika Todd, an attorney with Sullivan & Worcester in Boston.
Background
Helix Energy Solutions Group, an offshore oil and gas company based in Houston, claimed its former employee, Michael Hewitt, was exempt from overtime pay because he was a highly paid executive, earning more than $200,000 per year. Hewitt claimed he should get retroactive overtime pay because Helix calculated his pay by using a daily rate, and the 5th U.S. Circuit Court of Appeals agreed.
From 2015 to 2017, Hewitt worked 28-day "hitches," living on an offshore oil rig for 28 days at a time and being on duty for 12 hours each day. His pay ranged from $963 to $1,341 per day. He earned $248,053 in 2015 and $218,863 in 2016, according to court records.
Under the FLSA,...
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