×
Thursday, April 9, 2026

Supreme Court to Determine Whether Highly Paid Employees are Entitled to Overtime Pay Under the FLSA | News and Publications - Kutak Rock LLP

The U.S. Supreme Court recently granted certiorari in Helix Energy Solutions Group, Inc. v. Hewitt and will decide whether a highly compensated executive employee paid a daily rate, rather than on a salary basis, is entitled to overtime pay under the Fair Labor Standards Act (“FLSA”).

Employee Exemptions From Overtime Pay

The FLSA requires employers to pay covered employees “one and one-half times the regular rate” for any additional time worked (i.e., overtime pay) over 40 hours in a workweek. 29 U.S.C. § 207(a). The FLSA exempts “highly compensated” employees from overtime pay if they (1) earn a total annual compensation of at least at least $107,432 per year, which must include at least $684 per week paid on a salary or fee basis, and (2) customarily and regularly perform any one or more of the exempt duties or responsibilities of an executive, administrative or professional employee. 29 C.F.R. § 541.601.

“An employer may provide an exempt employee with additional compensation without losing the exemption or violating the salary basis requirement, if the employment arrangement also includes a guarantee of at least the minimum weekly-required amount paid on a salary basis.” 29 C.F.R. § 541.602(a). Similarly, the exemption is not lost if an exempt employee who is guaranteed at least $684 each week paid on a salary basis “also receives additional compensation based on hours worked for work beyond the normal workweek” paid as a flat sum, a bonus payment, a straight-time...



Read Full Story: https://www.kutakrock.com/newspublications/publications/2022/06/supreme-court...