On February 22, 2023, the U.S. Supreme Court issued a decision clarifying employers’ obligation to pay overtime under the federal Fair Labor Standards Act (FLSA). The decision, Helix Energy Solutions Grp., Inc. v. Hewitt, No. 21-984, — S.Ct. — (Feb. 22, 2023), affirmed the Fifth Circuit Court of Appeals’ interpretation of the FLSA’s overtime pay requirement, finding it applied even to very highly compensated employees unless one or more specific overtime exemptions applies.
The plaintiff, Michael Hewitt, sued his employer, Helix Energy Solutions Group, for overtime pay for work he performed on an offshore oil rig. Hewitt alleged that he typically worked 84 hours per week on the vessel but was paid a daily rate and no overtime pay. Hewitt earned more than $200,000 per year, which was calculated by multiplying his daily rate by the number of days he worked on the oil rig.
Helix responded that Hewitt was a bona fide executive employee and therefore exempt from the FLSA’s overtime requirements. Under the applicable regulations issued by the U.S. Department of Labor (DOL), an employee is considered a bona fide executive and exempt from the FLSA’s overtime protections if the following three tests are satisfied:
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