Helix Energy Solutions v. Hewitt

The Court ruled that Michael Hewitt, an offshore oil-rig supervisor paid a daily rate, was not exempt from the Fair Labor Standards Act's overtime-pay guarantee. Daily-rate workers must meet the specified salary-basis conditions in Labor Department rules to qualify for the executive exemption, no matter how much they earn.

The Court affirmed the Fifth Circuit, 6-3. Justice Elena Kagan wrote the majority opinion, joined by Chief Justice John Roberts and Justices Clarence Thomas, Sonia Sotomayor, Amy Coney Barrett, and Ketanji Brown Jackson. Justice Neil Gorsuch and Justice Brett Kavanaugh each wrote dissents; Justice Samuel Alito also dissented.

Majority

Kagan

Roberts

Thomas

Sotomayor

Barrett

Jackson

Dissent

Gorsuch

Kavanaugh

Alito

““Daily-rate workers, of whatever income level, qualify as paid on a salary basis only if” they meet the conditions in §541.604(b).”

Employers cannot avoid overtime obligations simply because a daily-rate supervisor earns a high annual income. For example, a worker paid more than $200,000 a year by the day may still be entitled to overtime if the salary-basis conditions are not met.

Lower courts will apply the Court's rule in overtime disputes involving daily-rate workers. Employers may need to review pay plans and overtime practices for highly paid supervisors paid by the day.

The Court ruled that Hewitt was not exempt from overtime. His daily-rate pay did not satisfy the required salary-basis conditions.

Highly paid supervisors and other workers paid by the day may be affected. Employers must evaluate whether their pay plans meet the salary-basis conditions.

Lower courts must follow the decision in similar overtime cases. Employers may review daily-rate jobs and adjust payroll practices where needed.