High Earners May Be Eligible for Overtime Pay

Many companies wrongfully assume that because a worker is paid significant compensation, the overtime pay exemption applies. This assumption is wrong, says the U.S. Supreme Court. In a case involving an oil rig worker earning over $200,000 a year, the company owed him overtime pay when he worked more than 40 hours (he typically worked 84 hours a week). He could not be considered an exempt employee (someone not subject to the overtime pay rule) because he was not salaried; he was paid on a daily-rate basis. A salary means an employee is compensated without regard to the number of days worked.  #IdeaoftheDay