According to the Supreme Court, even a high-earning employee can be entitled to overtime if they are not paid on a salary basis.
In Helix Energy Solutions Group v. Hewitt, the Court considered the federal Fair Labor Standards Act (FLSA) and assessed whether a supervisor earning over $200,000 annually is entitled to overtime pay.
Helix argued that Hewitt’s “executive” status exempted him from overtime pay and placed him beyond the threshold for a “highly compensated” worker. On appeal in the 5th Circuit, the court held that the “highly compensated” metric did not apply because Hewitt was paid using a day rate, not a salary.
When the case arrived at the Supreme Court, the issue before the Justices was whether a “daily rate” pay satisfied the salary-based requirement under the FLSA.
The Court held that a salary provided “the stability and security of a regular weekly, monthly, or annual pay structure.” Helix had violated the principles of a true salary by paying Hewitt for the days on which he actually worked.
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