On February 22, 2023, the Supreme Court of the United States ruled that an employee who is paid a daily rate for each day worked, no matter how high the rate, is not exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and, therefore, entitled to overtime pay for hours worked over 40 in a work week. The Court found that although the employee was highly compensated, his daily wage did not meet the salary basis requirements for exempt status under the FLSA and its implementing regulations.
