Plain-English summary
Court: daily-rate, high-earning supervisors aren’t automatically salaried executives for FLSA overtime
The Court held that Michael Hewitt, a highly paid offshore supervisor paid a daily rate, was not an exempt ‘‘executive’’ under the Fair Labor Standards Act because he was not paid on a salary basis under the Department of Labor’s regulation. The decision clarifies that high income alone doesn’t make a daily-rate worker salaried for overtime exemption purposes.
Why this matters
The decision limits employers’ ability to avoid overtime pay by labeling high-paid, daily-rate workers as salaried executives. It preserves overtime protections for many workers who are paid by the day or shift and prevents employers from relying on a worker’s high total pay to claim a salary-based exemption without meeting the Department of Labor’s specific rules.
Who may feel it
- Daily-rate and shift-rate workers (e.g., offshore workers, construction, healthcare, transportation)
- Employers who pay high-paid employees by the day or shift
- Wage-and-hour plaintiffs and lawyers
- Federal agencies that enforce overtime rules (DOL, the courts)
Key questions