February 8, 2023

Volume XIII, Number 39

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February 07, 2023

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February 06, 2023

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Supreme Court Takes Up FLSA High Earners Exemption

On October 12, 2022, the U.S. Supreme Court heard oral arguments in a case that considers whether a supervisor who earned over $200,000 annually may still be eligible for overtime pay under the Fair Labor Standards Act (FLSA). The case centers on the interpretation of the regulatory scheme surrounding highly compensated employees and their exemption status under the FLSA.

The Plaintiff in the case was a worker in a supervisory role on an oil rig and his compensation was based on a daily rate. The plaintiff argued that his daily rate of pay did not constitute a salary.  Prior to the Supreme Court, the Fifth Circuit en banc agreed with the Plaintiff and found that he was not paid a salary such that he was not an exempt employee under the FLSA.

This case has implications for how employers will pay workers, and whether there is potential exposure for overtime claims, even for highly compensated employees.

© Polsinelli PC, Polsinelli LLP in CaliforniaNational Law Review, Volume XII, Number 290
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About this Author

Associate

Isaac Caverly focuses his practice on a wide variety of employment-related matters. Isaac is committed to understanding the industry in which clients operate and he provides valuable counsel to employers as they face sensitive workplace matters. His experience includes conducting discovery research and drafting memoranda related to employment cases and summary judgements as well as conducting employment due diligence for corporate transactions. Prior to joining Polsinelli, Isaac was a summer associate and served as a congressional intern and served as Co-President of the Iowa Student Bar...

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