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Is a High-Earning Employee Entitled to Overtime?

March 23, 2023

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.


If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

February 19, 2025
The Massachusetts Superior Court found that Massachusetts’ wiretap statue does not bar employers from using allegedly illegally obtained recordings in civil proceedings. In a recent case, an employee claimed she was forced to resign. Plaintiff’s coworker recorded an argument between the Plaintiff and her supervisor without her consent and shared it with supervisors. The employee then sued for discrimination and retaliation, along with two counts for violation of the wiretap statute. Massachusetts is a two-party consent state but, in this case, it was found that the consent of only one party was needed because nothing in the Wiretap Statute bars the use of an allegedly illegally obtained communication in a civil proceeding. The court found that the provisions about the use of illegally obtained communications in evidence are limited to criminal trials. However, depending on the court, results may differ, as this recording was central to proving and/or disproving the Plaintiff’s claim, and as such, the recording was indispensable as a piece of evidence. Issues with unauthorized recordings have been arising all the time in civil proceedings because recording devices are everywhere, whether they be a cell phone, laptop or other recording device. This ruling is good for employers, as if there is an otherwise inadmissible recording that is made that disproves an employee’s claims, it can be admissible as evidence if meets the same scenario above. However, employers must be careful to use these recordings as they may be inadmissible and may not show the same thing that the employer believes in the court’s eyes. This being said, it is prudent to consult an attorney before utilizing a recording for any employment action or in legal action to avoid unwanted consequences. If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.
February 14, 2025
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