Is a High-Earning Employee Entitled to Overtime?

March 23, 2023

According to the Supreme Court, even a high-earning employee can be entitled to overtime if they are not paid on a salary basis.


In Helix Energy Solutions Group v. Hewitt, the Court considered the federal Fair Labor Standards Act (FLSA) and assessed whether a supervisor earning over $200,000 annually is entitled to overtime pay.


Helix argued that Hewitt’s “executive” status exempted him from overtime pay and placed him beyond the threshold for a “highly compensated” worker. On appeal in the 5th Circuit, the court held that the “highly compensated” metric did not apply because Hewitt was paid using a day rate, not a salary.


When the case arrived at the Supreme Court, the issue before the Justices was whether a “daily rate” pay satisfied the salary-based requirement under the FLSA.


The Court held that a salary provided “the stability and security of a regular weekly, monthly, or annual pay structure.” Helix had violated the principles of a true salary by paying Hewitt for the days on which he actually worked.


If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.

June 10, 2025
Brandon Calton is now admitted to the United States District Court, Connecticut! The Royal Law Firm is passionate about expanding our reach so that we can better serve our clients and their needs. Brandon is admitted in Massachusetts, the United States District Court of Massachusetts, and the United States District Court of Connecticut.
By Heather Child June 9, 2025
On May 21, 2025, the U.S. District Court for the Western District of Louisiana struck down a provision in the Equal Employment Opportunity Commission’s (EEOC) final rule under the Pregnant Workers Fairness Act (PWFA), ruling that the agency exceeded its authority by requiring employers to accommodate elective abortions that are not medically necessary. Background Information: In June 2022, the U.S. Supreme Court issued a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe v. Wade and eliminated the constitutional right to abortion. Congress passed the Pregnant Workers Fairness Act in December 2022, and it became effective in June 2023. The law requires employers with 15 or more employees to provide reasonable accommodation to qualified applicants or employees who have physical or mental conditions related to pregnancy, childbirth, or related medical conditions, unless doing so would cause significant difficulty or expense for the employer. In April 2024, The EEOC issued its final interpretation of the PWFA including abortion in the definition of “pregnancy, childbirth, or other related medical conditions” thereby requiring employers to provide accommodations related to abortion. In May 2024, the states of Mississippi and Louisiana sued the EEOC, arguing that the interpretation conflicted with the U.S. Supreme Court’s Dobbs decision and their respective state laws on abortion. In June 2024, Judge Joseph found that the EEOC exceeded its authority and issued a preliminary injunction postponing the effective date of the interpretation to provide accommodation for elective abortions until final judgment was entered in this matter. The final judgment was entered on May 21, 2025, that remanded the matter to the EEOC to revise the final rule and all related implementing regulations and guidances. Employer Takeaways: While employers are no longer (as of now) REQUIRED to provide accommodation for elective abortions, the remainder of the PWFA remains in full effect The decision to have or not have an abortion remains protected under Title VII The PWFA does not supersede state or local laws providing greater protection for pregnant workers. It is important to stay up to date on state regulations to ensure employers are complying with state laws. While it is still unclear how this ruling will impact employers nationwide, it is still important to continue to stay up to date on ever-changing legislation.  If your business has any questions on this topic or any other matters, please do not hesitate to contact the attorneys at The Royal Law Firm at 413-586-2288.