Supreme Court rules Helix Energy oil rig worker who makes 0,000 is entitled to overtime

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Supreme Court rules Helix Energy oil rig worker who makes $200,000 is entitled to overtime

Published

3 years ago

February 22, 2023

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The Supreme Court of the United States on Captiol Hill, photographed on Tuesday, Feb. 21, 2023 in Washington, DC.

Kent Nishimura | Los Angeles Times | Getty Images

The Supreme Court ruled Wednesday that an offshore oil rig worker who earned more than $200,000 annually — and whose company classified him as a “bona fide executive” — is entitled to overtime pay for having worked more than 40 hours per week.

A lawyer for Helix Energy Solutions Group had argued in October that the worker, Michael Hewitt, was not entitled to overtime under the Fair Labor Standards Act, despite the fact that he regularly worked 84 hours per week on the rigs.

“This decision could result in an enormous windfall for workers in a variety of occupations,” said Lou Pechman, a New York City employment attorney who has handled more than 300 cases involving the FLSA, but who was not involved in this case.

“The Supreme Court has sent a message to all workers paid on a day rate basis that they are entitled to overtime after 40 hours of work,” Pechman said.

In a 6-3 ruling Wednesday, the Supreme Court noted that the case hinged on the issue of whether Hewitt, whose job is called tool pusher, was paid on a salary basis.

The majority opinion, written by Justice Elena Kagan, noted that Hewitt’s bi-weekly paycheck amounted to his daily pay rate multiplied by the number of days he worked in the pay period.

“The question here is whether a high-earning employee is compensated on a ‘salary basis’ when his paycheck is based solely on a daily rate — so that he receives a certain amount if he works one day in a week, twice as much for two days, three times as much for three, and so on,” wrote Kagan.

“We hold that such an employee is not paid on a salary basis, and thus is entitled to overtime pay,” Kagan wrote.

A federal district court judge who first heard the case agreed with Helix’s view, finding Hewitt was paid on a salary basis and thus was not due overtime pay.

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The U.S. 5th Circuit Court of Appeals reversed the decision. It said that Helix Energy’s compensation for Hewitt did not satisfy a special rule of the FLSA that allowed so-called daily-rate workers to be paid on a salary basis.

In its ruling Wednesday, the Supreme Court affirmed the appeals court decision. The majority opinion said that “Hewitt was not an executive exempt from the FLSA’s overtime pay guarantee,” and that “daily-rate workers, of whatever income level, qualify as paid on a salary basis only if the conditions set out in” the special rule are met.

Kagan in her opinion noted that Hewitt’s compensation did not meet the conditions of that special rule, “which focuses on workers whose compensation is “computed on an hourly, a daily or a shift basis.”

Two justices, Brett Kavanaugh and Neil Gorsuch, filed dissenting opinions.

Kavanaugh, in his dissent joined by Justice Samuel Alito, noted that Hewitt had a daily predetermined minimum pay rate of $963 per day. And under federal labor regulations, Kavanaugh added, “an employee who performs executive duties and earns at least $100,000 per year with a ‘predetermined’ weekly salary of at least $455 for any week that he works is a bona fide executive and not entitled overtime.”

“Per those regulations, Hewitt readily qualified as a bona fide executive,” Kavanaugh wrote. “As everyone agrees, Hewitt performed executive duties, earned about $200,000 per year, and received a predetermined salary of at least $963 per week for any week that he worked.”

Gorsuch, in his extremely short, two-page opinion, said he would dismiss the case as having been “improvidently granted” by the Supreme Court.

Gorsuch wrote that the court had allowed Helix to appeal the lower court’s ruling on the expectation that the question to be determined was “which regulations certain well-paid employees must satisfy to fit within the overtime-pay exemption.”

“Unfortunately, this case does not tee up that issue in the way we hoped,” Gorsuch wrote. “With the benefit of briefing and argument, it has become clear that the ‘critical question here’ is not how” two sections of the FLSA interact, he wrote.

The New York lawyer Pechman, who teaches a class on wage theft at Fordham Law School, said, “This case highlights one of the quirks about the FLSA in that sometimes liability is not a result of how much a worker gets paid but rather how he is paid.”

Environment

Honda is already testing a new electrified Civic: Here’s our first look

Published

2 hours ago

November 5, 2025

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Honda is already testing a new electrified Civic: Here's our first look

A new Civic is in the works that’s bringing much more than just a new look to Honda’s best-selling vehicle. Here’s our first look at the next-gen Honda Civic.

Honda previews next-gen Civic with new hybrid system

During an event held for the media on Wednesday, Honda offered a look at some of the advanced new tech it plans to roll out over the next few years.

Although it just launched the current Civic Hybrid last year, Honda is already working on its replacement. Honda didn’t confirm or deny that the Civic was under the camouflage, but it was pretty evident.

The new Civic will ride on Honda’s next-gen hybrid (HEV) platform, designed for mid-size vehicles. Honda’s new hybrid system is nearly 200 lbs (90 kg) lighter and more flexible, which it said provides “excellent fuel economy” while also improving the driving experience.

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According to Car and Driver, which drove the new Civic, the interior is also getting redesigned. Honda covered most of it, but you could still see what appeared to be a larger, at least 15″ infotainment screen at the center.

Honda is keeping most powertrain details a secret for now, but the new Civic appears to have an electrified drive unit similar to those found in the Accord and CR-V.

The company said the direct-drive motor and generator motor are smaller, more efficient, and free from rare-earth materials. Honda also said the battery, located under the rear seat, is all-new. It will be used for upcoming compact and mid-size vehicles, which Honda said will help reduce costs.

Honda-Civic-new-hybrid-platform — (Source: Honda)

As for how it drives, Car and Driver said the new Honda Civic was quick off the line thanks to its direct-drive setup. However, the test track was too smooth to really judge the ride quality.

Like the new Honda Prelude, the Civic will feature S+ Shift, which simulates gear-shifting via paddles on the steering wheel.

The prototype had exhaust pipes, but they likely won’t make it to the production model. Honda plans to launch several next-gen hybrids on the new HEV platform, starting from 2027. The next-gen Honda Accord may even arrive before the Civic, debuting on the hybrid system.

Honda said it’s also developing a next-gen platform for large-size HEVs to meet the growing demand in North America.

Using a next-gen V6 engine with extended fuel-efficient range, Honda said it aims to improve fuel efficiency by 30% compared to its current ICE vehicles. Honda’s larger HEVs will likely go on sale closer to 2028.

Honda also showcased the Super-ONE Prototype during the event, its compact EV set to launch in Japan in 2026, followed by the UK and other global markets.

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Environment

Will Zero bring its new 60 MPH electric scooter to the US?

Published

3 hours ago

November 5, 2025

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Will Zero bring its new 60 MPH electric scooter to the US?

Zero Motorcycles turned heads in Milan at EICMA 2025 with the unveiling of its new LS1 electric scooter, a sleek and practical 60 mph (100 km/h) commuter built for European city streets. With its swappable batteries, off-board charging, and smart safety tech like ABS and traction control, the LS1 is clearly a strong contender in the urban EV space. It also marks a major shift for Zero, expanding beyond full-size electric motorcycles into a more accessible, everyday format.

But will it come to the US market?

At the show I had the chance to speak with James Callahan of Zero, and he confirmed that the LS1 is not coming to the US market, at least not in its current form or in the near future. “The scooter market in the US is still very small,” Callahan explained, “so for now, we’re focused on Europe, where the demand is much higher.”

And while interest from American riders may exist, there’s another hurdle: the LS1 isn’t homologated for the US, meaning it doesn’t meet certain regulatory standards like the NHTSA’s lighting requirements. Its slick continuous LED turn signal bar would need to be redesigned entirely, among other tweaks to the design.

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The LS1 comes equipped with two removable batteries that live in the floorboard and can be charged indoors using an 800W charger – or even faster with a 1,500W upgrade. A third battery can be added under the seat for extended range, while that same underseat storage area also hides a cavity large enough for a helmet or groceries.

Add in a low seat height, a short wheelbase, and user-friendly features, and you’ve got a solid commuter platform. But it’s a platform that we’re not likely to see in the US for a long time.

So while the LS1 represents an exciting new chapter for Zero in Europe, fitting with the company’s recent move out of California and into the Netherlands, don’t expect to see it zipping down US streets anytime soon.

Though it’s not all bad news for our American readers. There’s a spark of hope that Zero’s more affordable off-road electric motorcycles launched in the US market this year could be getting street-legal homologation, though not immediately. More on that soon…

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Environment

Toyota’s selling cars faster than it can build them, saying it can ‘barely cover the demand’

Published

4 hours ago

November 5, 2025

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Toyota's selling cars faster than it can build them, saying it can 'barely cover the demand'

Toyota is selling cars faster than it can build them. With strong demand for hybrids, the company says it can “barely cover the demand.”

Toyota’s hybrids fuel sales growth in 2025

After reporting its fiscal second-quarter earnings on Wednesday, Toyota raised its sales and earnings forecast for the year.

In the first half of the fiscal year, the company sold a record 5.27 million vehicles, up 105% compared to the same period in 2024. Those numbers include its luxury Lexus brand.

Toyota said “strong demand from customers around the world” led to higher sales, particularly in Japan and North America. Hybrid vehicles primarily drove growth, with higher demand in competitive markets such as North America and China.

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The Japanese automaker sold 2.27 million hybrids (HEVs) in the first six months of the fiscal year 2026. Including battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), and fuel-cell electric vehicles (FCEVs), Toyota’s total “electrified” vehicles accounted for 47% of its total sales.

Toyota said the new RAV4, its best-selling vehicle globally, is carrying the growth as the first to adopt its software-defined platform, Arene.

Like most automakers, Toyota took a hit from the US auto tariffs. The company expects the 15% tariff will cost an extra 1.45 trillion yen ($9.4 billion) in the fiscal year.

Toyota-hybrid-sales — Toyota RAV4 PHEV (Source: Toyota)

Toyota expects higher sales, and cost-cutting measures will lessen the blow. It raised operating profit guidance for the fiscal year ending March 31, 2026, to 3.4 trillion yen ($22 billion). That’s up from its previous guidance of 3.2 trillion yen ($20.8 billion), but still a 28% decrease compared to the previous fiscal year.

Toyota-2026-bZ-prices — 2026 Toyota bZ electric SUV (Source: Toyota)

“In terms of sales, we expect a very healthy situation going forward,” Toyota’s CFO, Kenta Kon, said during a news conference with reporters on Wednesday (via Automotive News).

According to Kon, Toyota is still seeing “strong demand,” so much so that “we can barely cover the demand,” he added.

Electrek’s Take

Although hybrids are carrying the growth, Toyota’s BEV sales are still lagging. In the US, Toyota sold just 61 bZ electric SUVs in September. Through the first nine months of the year, Toyota sold just 12,264 bZs, down from 13,577 in the same period last year.

With the 2026 BZ upgrade rolling out and new EVs arriving soon, including the C-HR and bZ Woodland, Toyota’s BEV sales are expected to gain momentum over the next few months finally.

At the Japan Mobility Show, the company revealed plans for five unique brands under the Toyota Group, which it says will provide a diverse range of vehicles designed for every buyer.

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