In a recent en banc decision (meaning the case was heard before all the judges rather than a panel of three), the US Court of Appeals for the Fifth Circuit held that a tool pusher earning more than $200,000 a year was entitled to overtime because the day rate he was paid did not qualify as a "salary" under the Fair Labor Standards Act (FLSA). This decision highlights the importance of ensuring that employees classified as exempt from overtime meet all the requirements — including payment on a salary basis, if applicable — for the exemption(s) claimed. Regular review of pay practices (with modifications as needed) can avoid a costly mistake. Continue reading >