What’s going on:Â Â
On February 22nd, the United States Supreme Court made a groundbreaking decision recently that will set a precedent for workers in the future. Â
The Court ruled in favor of Michael Hewitt, an oil and gas company employee in Houston who earned an impressive $200,000 a year, according to Fortune. They ruled that he was still entitled to overtime pay under the Fair Labor Standards Act (FLSA).   Â
The FLSA overtime rule dictates that employees exempt from the rule must typically be compensated with a salary that exceeds a certain amount, and fulfill an executive, administrative, or professional role. Hewitt was paid daily instead of weekly, which didn’t fit the FLSA’s criteria for the executive exemption.Â
Why it matters:Â Â
A new paper from the National Bureau of Economic Research reveals an astonishing five-fold rise in listings for salaried positions with managerial titles, seemingly to dodge paying overtime wages.Â
Employers who continue to practice non-compliance and who try to avoid paying overtime will most likely not succeed in the future of work. Â
This ruling sets an important example for future workplace issues related to overtime pay, and shows that the Supreme Court is in favor of employees in this instance.   Â
How it’ll impact the future:Â Â Â Â
This Supreme Court ruling comes at a time when pay, compensation, and employment laws are at the forefront of people’s minds, and also serves as a timely reminder of the importance of fair pay for all workers.Â
