Compliance & Policy

Supreme Court Rules Overtime Pay Owed to Employees Paid Via Daily Rate

UPDATED ON
March 2, 2023
Abbey Dean
Abbey Dean
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Last week, in the case of Navy Yard Hospitality Corp v. NLRB, the Supreme Court ruled that employees who are paid a daily rate for their work are owed overtime pay when their work exceeds 40 hours in a given week.

In that case, the employer ran a banquet catering company and paid employees a flat day rate regardless of how many hours were worked per week.

Ultimately, the court rejected the employer’s argument that employees paid per day were an exception to the Fair Labor Standards Act and held that such employees are entitled to overtime pay in accordance with FLSA guidelines. You can read more here as analyzed by the National Legal Review.


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