What’s going on:
On February 22nd, the United States Supreme Court made a groundbreaking decision recently that will set a precedent for workers in the future.
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).
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.
Why it matters:
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.
Employers who continue to practice non-compliance and who try to avoid paying overtime will most likely not succeed in the future of work.
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.
How it’ll impact the future:
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.