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.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Danielle Ryman Danielle Ryman

For 25 years, Partner Danielle Ryman has helped companies navigate the complex issues affecting today’s workplace. She is a trusted advisor to boards of directors and executive leadership, offering responsive and practical strategies to help companies achieve their goals and manage their greatest…

For 25 years, Partner Danielle Ryman has helped companies navigate the complex issues affecting today’s workplace. She is a trusted advisor to boards of directors and executive leadership, offering responsive and practical strategies to help companies achieve their goals and manage their greatest asset—their people.

Photo of Jill L. Ripke Jill L. Ripke

Jill Ripke defends companies in employment and independent contractor class action matters dealing with claims relating to independent contractor status, misclassification, unpaid overtime, unpaid meal and rest breaks, and unpaid off-the-clock work.

Photo of Chris Wilkinson Chris Wilkinson

Chris Wilkinson maintains a broad litigation and advice practice in labor and employment, wage-and-hour, federal contractor compliance, equal pay, government relations, and administrative law. He represents multinational employers, advising and counseling on the full range of employment and compliance matters arising out of…

Chris Wilkinson maintains a broad litigation and advice practice in labor and employment, wage-and-hour, federal contractor compliance, equal pay, government relations, and administrative law. He represents multinational employers, advising and counseling on the full range of employment and compliance matters arising out of federal and state laws.

Chris’ current practice focuses on counseling employers and litigating pay equity matters arising out of federal and state claims. He helps clients navigate large-scale government investigations and litigation arising out of discrimination, retaliation, whistleblower, and other enforcement matters. He also investigates highly sensitive matters at the executive level, ensures legal compliance in diversity and inclusion efforts, and strategizes regarding labor and employment risks arising out of the COVID-19 pandemic.

Photo of Kelsey Cropper Kelsey Cropper

Kelsey Cropper has provided advice and counsel related to all manners of labor and employment including drafting employment agreements for high level management employees and performing audits of client practices related to independent contractors.