February 27, 2023
On February 22, 2023, in Helix Energy Solutions Group v. Hewitt, the Supreme Court ruled 6-3 that a former employee that made over $200,000 was eligible for overtime pay.
Helix Energy Solutions Group, an offshore oil and gas company, claimed its former employee, Michael Hewitt, was exempt from overtime pay because he was a highly paid executive, earning more than $200,000 per year. His pay ranged from $963 to $1,341 per day. He earned $248,053 in 2015 and $218,863 in 2016, according to court records. He claimed he should get retroactive overtime pay because Helix calculated his pay by using a daily rate, and the Supreme Court agreed.
The case hinged on whether being paid at least a minimum amount per day counted as a salary. In an opinion written by Justice Elena Kagan, the court ruled that Helix was not paying a salary as defined by the Fair Labor Standards Act and therefore Hewitt was not exempt. The salary basis requirement is met when employees are paid by the week or longer, the court stated. “It is not met when an employer pays an employee by the day, as Helix paid Hewitt,” the court said.
If you have questions regarding this or any other matter, please contact Dean Leazenby at Warrick & Boyn, LLP.