In a closely watched case,1 the United States Supreme Court held today that a tool pusher in the oil & gas industry, who was paid a day rate of at least $963.00 per day, was not exempt from the overtime provisions of the Fair Labor Standards Act (“FLSA”). While the highly paid tool pusher was otherwise exempt under the FLSA’s Highly Compensated Exemption (the “HCE rule”)2 based upon his duties and annual compensation, he was not paid a “salary” as defined by the U.S. Department of Labor (“DOL”) regulations. Further, his daily rate of pay did not comply with the applicable “reasonable relationship test.” Accordingly, he was due overtime pay.
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