Case Digest: Helix Energy Solutions Group Inc. et al. v. Hewitt

The core legal principle established in Helix Energy Solutions Group Inc. v. Hewitt revolves around the criteria for the Fair Labor Standards Act's (FLSA) overtime pay exemption, particularly focusing on the "salary basis" requirement. The Supreme Court held that daily-rate workers, regardless of their income level, are only considered to be paid on a "salary basis" if the conditions in §541.604(b) are met, thus determining their eligibility for overtime pay under the FLSA.

Introduction:
This case involves a dispute between Michael Hewitt and his employer, Helix Energy Solutions Group, concerning the entitlement to overtime pay under the FLSA. The case’s resolution centers on interpreting the FLSA’s criteria for exempting certain employees from overtime pay based on their employment status as "bona fide executives."

Facts of the Case:
From 2014 to 2017, Michael Hewitt worked for Helix Energy on an offshore oil rig, typically working 84 hours a week. He was compensated on a daily-rate basis without overtime pay, earning over $200,000 annually. Helix classified Hewitt as exempt from FLSA overtime pay, arguing that he was a "bona fide executive."

Issue of the Case:
The legal issue centers on whether Hewitt was exempt from FLSA's overtime pay requirement, specifically whether he was paid on a "salary basis" as a "bona fide executive," under FLSA criteria.

Ruling of the Case:
The Supreme Court held that Hewitt was not exempt from FLSA’s overtime pay guarantee. Daily-rate workers like Hewitt only qualify as being paid on a salary basis if they meet specific conditions outlined in §541.604(b), which Hewitt's compensation scheme did not satisfy.

Impact on the Legal System:
The ruling clarifies the interpretation of the "salary basis" test under FLSA, particularly for high-income employees. It establishes that being highly compensated does not automatically exempt an employee from overtime requirements. This decision impacts how employers categorize employees as exempt or non-exempt for overtime pay, particularly those compensated on a daily-rate basis.

Conclusion:
Helix Energy Solutions Group Inc. v. Hewitt is significant for clarifying the criteria under which daily-rate workers are considered to be paid on a "salary basis" for the purposes of FLSA’s overtime pay exemption. This ruling reinforces the FLSA’s intention to provide overtime compensation protections, regardless of the employee's level of income, unless specific exemption criteria are met​​.