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

2 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

Loren McDonald stops by Quick Charge to discuss EV charging, Paren, and more

Published

4 hours ago

November 14, 2024

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Loren McDonald stops by Quick Charge to discuss EV charging, Paren, and more

Leading electric vehicle analyst, author, and industry thought leaders Loren McDonald and Bill Ferro stop by Quick Charge to discuss EV Adoption’s acquisition by Paren, the “crisis” of EV charging reliability, and the real state of the EV market.

Depending on who you listen, EVs are either driving brands to record growth and are about cross that critical 10% of the overall market nationwide, or the future is bleak, the market is down, and EVs just aren’t selling. What’s really going on? Loren and Bill (probably) have some answers.

Today’s episode is sponsored by BLUETTI, a leading provider of portable power stations, solar generators, and energy storage systems. For a limited time, save up to 52% during BLUETTI’s exclusive Black Friday sale, now through November 28, and be sure to use promo code BLUETTI5OFF for 5% off all power stations site wide. Click here to learn more.

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Environment

Chevy EV owners in Texas now get free overnight home charging with Reliant

Published

6 hours ago

November 14, 2024

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Chevy EV owners in Texas now get free overnight home charging with Reliant

Chevy EV Texas Reliant — Chevy Blazer EV (left), Chevy Equinox EV (middle) Chevy Silverado EV (right) (Source: GM)

Chevy EV owners in Texas who have Reliant as their electric utility can now charge for free at night with renewable energy.

Over 150 Chevrolet dealerships across Texas are now offering the Reliant Free Charge Nights plan to new EV buyers. With Free Charge Nights, customers can offset their charging costs by receiving credits for electricity used between 11 pm and 6 am. The plan is powered entirely by renewable energy, thanks to the purchase of renewable energy certificates (RECs).

Rasesh Patel, president of NRG Consumer, says the plan is about making power personal: “We’re excited to help Chevrolet EV drivers offset the cost of charging their vehicle all while having access to a renewable electricity plan.”

This collaboration aims to make EV adoption more appealing by making charging cheaper and greener. GM Energy’s chief revenue officer, Aseem Kapur, emphasized that partnerships like this help build the ecosystem needed to support an all-electric future: “The Reliant Free Charge Nights plan is a great example of how an automaker and an energy company can work together to make EV adoption an easy decision.”

Existing Reliant customers can also sign up for the Free Charge Nights plan. To get started, Chevrolet EV owners need to designate their vehicle on the GM Energy Smart Charging Portal before enrolling in the plan.

Reliant Energy, a subsidiary of NRG Energy, serves over 1.5 million customers in Texas, making it one of the largest electricity providers in the state.

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Environment

Texas to get 1 GW AI-powered virtual power plant, enough to power 200,000 homes

Published

8 hours ago

November 13, 2024

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Texas to get 1 GW AI-powered virtual power plant, enough to power 200,000 homes

Texas is about to get a major power boost – a new AI-powered virtual power plant (VPP) delivering capacity equivalent to 200,000 homes during peak demand.

NRG Energy is teaming up with Renew Home to bring nearly 1 gigawatt (GW) of capacity to the Texas grid by 2035, aiming to make it more resilient while helping residents save on energy costs.

The new VPP will rely on hundreds of thousands of smart thermostats and other connected home devices, making use of AI technology provided by Google Cloud. These devices, like Vivint and Nest smart thermostats, will be offered to eligible customers at no cost. By automating HVAC adjustments, they help shift energy use to when electricity is cheaper, cleaner, and less strained.

NRG and Renew Home have big plans for the VPP. Starting in spring 2025, the companies plan to roll out the program across Texas, installing these smart thermostats in homes served by NRG’s retail electricity providers. Eventually, they plan to add home battery storage and EVs to expand the power plant’s capabilities.

Texas has faced record-breaking energy demands, with peak usage hitting 85 GW in 2023. As the state’s population grows and extreme weather becomes more frequent, VPPs like this one could play a key role in stabilizing the grid. VPPs aggregate a lot of small-scale energy resources, from smart thermostats to home batteries, and use them to help balance supply and demand during times of high stress on the grid.

This nearly 1 GW VPP will be one of the largest of its kind in Texas. NRG’s president of consumer operations, Rasesh Patel, calls it a “pivotal step” for improving customer experience while making Texas’ energy infrastructure more sustainable and resilient.

In addition to Renew Home, NRG is working with Google Cloud to maximize the power plant’s effectiveness. Google Cloud’s AI and analytics tools will help predict weather conditions, forecast renewable generation, and optimize energy usage, all of which will help make energy management smoother for both customers and the grid.

Ben Brown, CEO of Renew Home, said:

NRG’s commitment to creating a more resilient and sustainable energy future while also making electricity bills more affordable makes them an ideal partner for co-developing this unique VPP program.

This initiative raises the bar for future-proofing our electricity infrastructure and delivering cost savings to customers.

Read: Chinese solar giant Trina sells its Texas factory a week after it opens

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Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*

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