In an important new ruling, the U.S. Supreme Court recently clarified the standards under which a worker does (or does not) qualify as a salaried exempt employee for purposes of overtime compensation. The 6-3 decision in favor of an oil rig worker clarifies that just because an employee earns a very high income, that does not automatically mean that he/she is an exempt employee. Regardless of how much you make, if you think that you meet the legal standards for a non-exempt employee, then you may be entitled to overtime pay and if your employer didn’t compensate you accordingly, you potentially can, with the aid of the right Atlanta unpaid overtime lawyer, win compensation in a Fair Labor Standards Act lawsuit.
The worker, M.H., worked as a tool pusher on an offshore oil rig. That job typically entailed the employee working 12-14 hours per day, seven days per week for a stint of four weeks, followed by four weeks off. The employer paid the pusher a daily rate of $963. All totaled, the worker earned more than $200,000 annually.
Neither the worker nor the employer argued that 29 CFR 541.604(b) applied to the pusher’s circumstance. That’s the federal regulation that says that if a worker receives extra pay based on his/her work hours, he/she can still be an exempt employee so long as there was a “reasonable relationship” between the worker’s periodic salary and the amount the worker actually earned each period.