This appeal turns on whether the employer’s hybrid pay scheme is “salary-basis” and exempt from overtime pay under the FLSA.
A directional driller (DD) for an oilfield services company, who was paid under a hybrid scheme that paid partially on a salary basis, and partially on a day-rate basis, was paid a salary and so was ineligible for overtime compensation, ruled the Fifth Circuit. Here, the appeals court determined that the hybrid compensation scheme fits the requirements of Section 602(a), exempting the employee from overtime pay and entitling the employer to partial summary judgment. Accordingly, the appeals court reversed a district court’s denial of the employer’s motion for summary judgment that the employee was ineligible for overtime compensation as a matter of law because he was a salaried employee (Guilbeau v. Schlumberger Technology Corp., No. 25-50594 (5th Cir. June 12, 2026)).
The named plaintiffs in this action worked for Schlumberger Technology, an employer in the oil industry. The first employee worked as a directional driller (DD) who provided oilfield drilling services to the employer. The second employee worked as a measuring while drilling employee (MWD), an engineering position involving collecting, monitoring, and reporting data regarding drilling operations.
“Hybrid” pay system. The employer paid both DDs and MWDs with a “hybrid” system. Every two weeks, Schlumberger paid the employees certain amounts which did not vary with hours or days worked....
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