In a 6 – 3 decision on Feb. 22, the U.S. Supreme Court held that an offshore rig employee paid a “day rate” but earning more than $200,000 annually is entitled to overtime.

The case arose under the Fair Labor Standards Act (FLSA), which guarantees covered employees a minimum hourly wage and, when hours exceed 40 in a workweek, overtime at time-and-a-half of their regular rate of pay. The FLSA also provides exemptions from the minimum wage and overtime rules for certain categories of workers, but only if specific requirements are met.

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