Day-Rate Rules Result in Overtime Pay for Exempt Highly Compensated Employee
The U.S. Supreme Court recently ruled in Helix Energy Solutions Group v. Hewitt that a daily-rate worker who earned over $200,000 annually was not exempt from the Fair Labor Standards Act's overtime requirements. In an opinion authored by Justice Elena Kagan, the Court held that compensation based on a daily rate did not satisfy the "salary basis test," which is required for an employee to be exempt from overtime compensation. The decision, while specific to day-rate compensation, also applies to exempt employees paid an hourly or shift rate.
Further discussion of the Court's decision and its implications for employers and employees is found here.
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The regulatory landscape, appetite for administrative agency enforcement, and judicial interpretations related to wage-and-hour issues are rapidly evolving. Our blog is a one-stop resource for federal- and state-level updates and analysis on wage-and-hour-related developments affecting employers.