Helix Energy Solutions Group, Inc. v. Hewitt
598 U.S. 39
SCOTUS2023Background
- Michael Hewitt worked 2014–2017 as a tool-pusher on an offshore rig, typically 12-hour days, seven days a week during 28‑day hitches, earning >$200,000 annually.
- Helix paid Hewitt a daily rate ($963–$1,341) and issued biweekly paychecks equal to daily rate × days worked; no overtime was paid.
- Helitt sued under the FLSA seeking overtime; Helix invoked the "bona fide executive" exemption (HCE rule) in 29 C.F.R. §541.601.
- Relevant regulations: §541.602(a) (salary-basis test: predetermined fixed salary paid on a weekly or less‑frequent basis and not reduced for variations in days/hours) and §541.604(b) (special rule for hourly/daily/shift rates requiring a weekly guarantee roughly equivalent to usual earnings).
- District Court granted summary judgment for Helix; the Fifth Circuit en banc reversed, concluding §602(a) does not cover daily‑rate employees and that §604(b) is the exclusive path for daily/hours/shifts (Helix conceded it did not meet §604(b)).
- Supreme Court affirmed: §602(a) is limited to weekly (or less frequent) predetermined salaries and excludes daily‑rate pay; daily‑rate workers qualify as salaried only if they meet §604(b), which Hewitt did not, so he is entitled to overtime.
Issues
| Issue | Hewitt (Plaintiff) | Helix (Defendant) | Held |
|---|---|---|---|
| Whether a daily‑rate, highly compensated worker is "paid on a salary basis" under §541.602(a) | Daily‑rate pay is not a salary under §602(a); weekly predetermined pay is required | Biweekly paychecks that contain at least $455 per week satisfy §602(a); §602(a)’s "weekly basis" refers only to pay‑distribution frequency | §602(a) requires a predetermined weekly (or less frequent) salary; daily‑rate pay does not meet §602(a) |
| Whether §541.604(b) (the daily/hourly/shift special rule) applies to highly compensated employees or the HCE rule can be satisfied without §604(b) | §604(b) applies to both the general and HCE rules; daily‑rate employees must meet §604(b) to be salaried | HCE rule operates independently and does not require satisfying §604(b) | §604(b) and §602(a) both define the salary‑basis requirement for general and HCE rules; daily‑rate workers can qualify as salaried only via §604(b) |
Key Cases Cited
- United States v. Detroit Timber & Lumber Co., 200 U.S. 321 (1906) (syllabus disclaimer on headnotes)
- Barrentine v. Arkansas‑Best Freight Sys., 450 U.S. 728 (1981) (FLSA designed to limit oppressive hours and protect overtime rights)
- Overnight Motor Transp. Co. v. Missel, 316 U.S. 572 (1942) (well‑paid workers are not categorically exempt from FLSA overtime)
- Jewell Ridge Coal Corp. v. United Mine Workers, 325 U.S. 161 (1945) (FLSA protections apply notwithstanding high pay)
- Caterpillar Inc. v. Lewis, 519 U.S. 61 (1996) (procedural principle on considering antecedent issues)
- Christopher v. SmithKline Beecham Corp., 567 U.S. 142 (2012) (retroactivity and longstanding regulatory meaning may affect relief)
- Helix Energy Sols. Group, Inc. v. Hewitt, 15 F.4th 289 (5th Cir. 2021) (en banc) (Fifth Circuit held §602(a) excludes daily‑rate and §604(b) is the exclusive path for daily‑rate workers)