09/20/2021
If you work over 40 hours per week in the energy industry and are paid a "day rate," you may be entitled to overtime pay--even if your employer says you are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA).
Recently, a federal appeals court said that employees may be entitled overtime if they are paid a "day rate," which is a common practice at energy companies.
Generally, under the FLSA, an employee has to be paid a on a "salary basis" and perform certain other duties in order to be considered exempt.
The DOL has defined "salary basis" to mean a worker regularly received a "predetermined amount" that is calculated on a "weekly or less frequent" pay period and that the individual is paid "without regard to the number of days or hours worked."
Employees paid on a day rate, by definition, are not paid on a salary basis. This can have a big impact on employees who have been paid a day rate--they may be able to recover several years of back pay if they were wrongly denied overtime pay.
In arguments before the court, the employer, Helix Energy Solutions Group, argued that it's common practice for energy companies to pay employees on a day rate. The court responded that industry practice does not define the law: "Our job is to follow the text — not to bend the text to avoid perceived negative consequences for the business community," the court said.
If you work for an energy company--or any other company that paid you on a day rate and didn't pay overtime--you can contact us for a free, confidential case assessment by calling 917-810-4303 or by visiting our website:
https://www.nyc-employmentlawyer.com/contact-us/
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