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One to Keep An Eye On: Helix Energy Solutions Group, Inc. v. Hewitt (U.S. Supreme Court)


As with many labor & employment law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on.


Yesterday, there was a recent development from the U.S. Supreme Court that I wanted to bring to the attention of readers.  No, it is not the case you are thinking of here.

Instead, this is the Helix Energy Solutions Group, Inc. v. Hewitt case in which the Supreme Court will consider whether a highly paid employee (who made over $200,000/year) is entitled to retroactive overtime pay despite a regulation that carves out an exemption for highly paid executives, because he had been paid on a daily basis.

In broad terms, the Fair Labor Standards Act (“FLSA”) provides for overtime pay for workers that are paid on an hourly basis.  A worker is considered to be paid on a salary basis, rather than hourly, if the worker “regularly receives each pay period on a weekly, or less frequent basis, a predetermined amount” and without regard for the number of days or hours worked.  These workers paid on a salary basis are not entitled to overtime pay.

In this situation, Hewitt was paid on a daily basis but was not paid overtime.  As he made over $200,000/year, Helix argued that “highly compensated executives” such as Hewitt, are barred from overtime pay under the FLSA.  (The FLSA provides an exemption for highly paid executives, such that these workers are not entitled to overtime pay.)  Going one step further, Helix  suggested that paying workers such as Hewitt a daily rate, rather than salary, is common in the industry and was not reflective of him actually being an “hourly” worker.  Hewitt counter these arguments and noted that he never knew how much he would be paid at a given time (again, under his argument that he was an hourly worker rather than receiving a salary.)

The Fifth Circuit Court of Appeals had previously ruled on the matter and held that the FLSA exemption did not apply as Hewitt was paid a daily rate, rather than a salary.  Helix subsequently appealed to the Supreme Court.  With the Supreme Court granting certiorari yesterday, the matter will eventually be set for an oral hearing in the fall.  Stay tuned.


For additional information:  https://www.supremecourt.gov/docket/docketfiles/html/public/21-984.html

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