Fifth Circuit Issues Major FLSA Ruling: Daily-Rate Employees May Be Entitled To Overtime Pay

Fifth Circuit Issues Major FLSA Ruling: Daily-Rate Employees May Be Entitled To Overtime Pay

In a recent en banc decision the Fifth Circuit Court of Appeals effectively demolished the legal basis underpinning a long-standing oil and gas industry custom in compensating oil rig workers. In Hewitt v. Helix Energy Solutions Group, Inc., the Fifth Circuit held that an otherwise highly compensated rig worker who was paid on a daily-rate basis was not exempt from the Fair Labor Standards Act’s (“FLSA”) overtime provisions and therefore must be paid overtime for any time worked more than 40 hours per week.

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