What Does it Mean to be Paid a Day Rate?
“Day Rate Basis,” “Daily Rate,” “Paid Per Day,” and “Per Diem.” Each of these phrases describing compensation mean the same thing: that you are paid a set amount for each day you work. For example, you receive a certain amount of money if you work one day in a week (let’s say $100 per day), twice as much for two days ($200), three times as much for three days ($300), and so on.
Are Day-Rate Workers Entitled to Receive Time-and-a-Half for Overtime?
Yes, unless their employer meets certain requirements for how to pay them. The U.S. Supreme Court recently answered this question in its ruling in Helix Energy Solutions Group, Inc., et al. v. Hewitt (No. 21–984). There, the Supreme Court considered whether a high-earning employee is compensated on a “salary basis” when his paycheck is based solely on a day rate. The Supreme Court held that such an employee is not paid on a salary basis, and thus is entitled to time-and-a-half overtime pay—as mandated by the FLSA—for hours worked in excess of 40 in a workweek.
The Supreme Court also explained what requirements an employer must meet for their day-rate pay system to qualify as a “salary basis” of pay. If you are paid a day rate and your employer does not meet these requirements, you may be entitled to overtime pay when you work more than 40 hours in a week. Call us for a free and confidential consultation at 615-244-2202.
What Are Some Industries & Job Titles that Pay Day Rates?
If you are a day-rate worker and you believe you have not been properly paid, please call our office at (615) 244-2202 for a free and confidential consultation.
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