In the case of Helix Energy Solutions Group, Inc. v. Hewitt, Michael Hewitt, a well-paid oil rig supervisor, filed a lawsuit against his employer, Helix Energy Solutions Group, arguing that he should be entitled to overtime pay for his long work weeks.
Hewitt worked an average of 84 hours per week for 7 days, and he claimed that because he was paid on a daily basis, he should receive time and a half for hours worked beyond 40 hours per week under the Fair Labor Standards Act.
Helix Energy, on the other hand, argued that Hewitt, who earned $200,000 annually, was exempt from the overtime requirement as a “bonafide executive.” However, the court, in a 6-3 decision, determined that the overtime pay exemption for highly paid workers did not apply to Hewitt because he was paid a daily rate of $963 instead of a salary.
The court, in this decision, recognized that Helix’s position would have negative implications for lower-income workers who are protected by the Fair Labor Standards Act. It would essentially deprive daily workers of less than $100,000 of overtime pay.
Key lessons from this case:
- The case highlights the importance of correctly classifying employees for overtime purposes.
- Employers must carefully evaluate whether employees meet the criteria for exemption from overtime pay and ensure compliance with relevant laws and regulations.
- The court recognizes the potential negative consequences that a broad application of the overtime exemption could have on a certain group.
Learn more about Arizona Labor Laws through our detailed guide.
