In a closely watched case,1 the United States Supreme Court held today that a tool pusher in the oil & gas industry, who was paid a day rate of at least $963.00 per day, was not exempt from the overtime provisions of the Fair Labor Standards Act (“FLSAâ€). While the highly paid tool pusher was otherwise exempt under the FLSA’s Highly Compensated Exemption (the “HCE ruleâ€)2 based upon his duties and annual compensation, he was not paid a “salary†as defined by the U.S. Department of Labor (“DOLâ€) regulations. Further, his daily rate of pay did not comply with the applicable “reasonable relationship test.†Accordingly, he was due overtime pay.
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