Update: Day-Rate Rules Result in Overtime Pay for Exempt Highly Compensated Employee
Recently, in Helix Energy Solutions Group v. Hewitt, the U.S. Supreme Court ruled that a daily-rate worker who earned more than $200,000 annually was not exempt from the Fair Labor Standards Act's (FLSA) 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. Listen to learn more about the Helix Energy Solutions Group v. Hewitt case and how employers can comply with the FLSA moving forward.
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