SCotuShoLdShIgh-earnIng , day-rateeMpLoyeeISentItLedtoovertIMepay labor & Employment law Section Chairs : AmandaBiondolino – SassLawFirm & LaKishaKinsey-Sallis – Fisher & PhillipsLLP
Ina6-3ruling , the SupremeCourtheldthat day-rateemployeesare notpaidonasalary basisunderthe FLSa ’ sregulations .
The Supreme Court recently ruled that a highly compensated oil rig supervisor was not exempt from the Fair Labor Standards Act ’ s ( FLSA ) overtime requirements because he was paid a daily rate , rather than a guaranteed salary . 1 The “ critical question ” in Helix Energy Solutions Group , Inc . v . Hewitt , 214 L . Ed . 2d 409 ( 2023 ), was whether day-rate employees are paid on a “ salary basis ” as defined in 29 C . F . R . § 541.602 ( a ). Answering this question in the negative , the Court ’ s analysis in this decision provides important guidance for labor and employment practitioners .
The respondent , Michael Hewitt , worked as a supervisor on an offshore oil rig for the petitioner , Helix Energy Solutions Group . He was paid a daily rate ranging from $ 963 to $ 1,342 per day , and earned over $ 200,000 annually .
Hewitt sued Helix under the FLSA to recover overtime pay .
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