Highly Compensated Employees Paid Daily Are Entitled To Overtime

Highly Compensated Employees Paid Daily Are Entitled To Overtime

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The Supreme Court ruled today that highly compensated employees are eligible for overtime pay.  The Supreme Court ruled in the case of Helix Energy Solutions Group v. Hewitt that because a former employee was paid on a daily basis he could get overtime pay, even though he was making more than $200,000 a year.  Because the employee was paid daily and not on a salary as defined by the Fair Labor Standards Act and even though he was a “highly compensated employee,” he was not an exempt employee.

The employer was Helix Energy Solutions Group, an offshore oil and gas company in Houston.  The prior employee worked and lived for 28 days at a time on an oil rig and was paid for “on-duty” time of 12 hours each day, earning more than $200k each year.  Helix claimed the former employee was exempt from overtime pay because he was being paid more than $200k.  So, Helix argued, he was a highly compensated employee not entitled to overtime.  Not surprisingly, the employee claimed he should get retroactive overtime pay because Helix calculated his pay by using a daily rate.  The employee won.  The court pointed out that the being paid on a salary basis requirement is met solely by paying employees by the week or longer.

Things change.  Here at Epps & Coulson, LLP, our employment attorneys keep on top of matters for you.  We are ready to help you plan and grow.  Please feel free to contact Dawn at: dcoulson@eppscoulson.com for any questions.

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