An oil rig supervisor who earned more than $200,000 a year working for Houston-based Helix Energy Solutions Group Inc is entitled to overtime pay, the U.S. Supreme Court ruled on Wednesday in a decision with costly implications for the oil and gas industry.
Kagan said the text of the regulation made clear that it did not apply to employees who are paid based on how many days they work and are not guaranteed minimum weekly wages.
Ed Sullivan, a lawyer for Hewitt, said that "my client and team are appreciative that the Supreme Court applied the plain text of the law to his case."Helix was backed in the case by oil and gas trade groups including the American Petroleum Institute, which said in briefs to the justices that supervisors in the industry are routinely paid daily rates and work long hours.
Conservative Justices Clarence Thomas, Amy Coney Barrett and John Roberts joined the court's three liberal members in the ruling., in a dissent joined by fellow conservative Justice Samuel Alito, wrote that because Hewitt earned a set daily rate, he knew he would be paid at least that much for any week in which he worked. That coupled with his management duties made him exempt from overtime pay, Kavanaugh said.
Conservative Justice Neil Gorsuch in a separate dissent said Helix's appeal should have been dismissed for procedural reasons.Our Standards:Dan Wiessner reports on labor and employment and immigration law, including litigation and policy making. He can be reached at [email protected].
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