On May 28, 2026, the United States Supreme Court issued a unanimous decision in Flowers Foods, Inc. v. Brock, No. 24-935, holding that a local delivery driver who picks up and delivers goods entirely within one state can qualify for the Federal Arbitration Act’s transportation-worker exemption if his intrastate route forms part of a
Wage & Hour
Fifth Circuit Holds Hybrid Salary-Plus-Day-Rate Pay Scheme Qualifies as “Salary Basis” and Exempts Oilfield Workers from FLSA Overtime
On June 12, 2026, the Fifth Circuit issued its decision in Guilbeau v. Schlumberger Technology Corporation, No. 25-50594, holding that a hybrid compensation scheme combining a fixed biweekly salary with variable day rates qualified as “salary basis” pay under the FLSA, exempting the named plaintiff from overtime as a highly compensated employee (HCE).
Background…
Fifth Circuit Clarifies Highly Compensated Employee Exemption Under FLSA for Oilfield Quality Control and Advisory Roles
On July 14, 2025, the U.S. Court of Appeals for the Fifth Circuit issued a significant decision addressing the application of the Fair Labor Standards Act (FLSA) overtime exemption for highly compensated employees (HCEs) in the oilfield services sector. In Gilchrist v. Schlumberger Technology Company, the court reversed a district court ruling and held…
U.S. Supreme Court Clarifies Burden of Proof for Employer to Prove Exempt Status
Today, the U.S. Supreme Court unanimously held that “the preponderance-of-the-evidence standard applies when an employer seeks to prove that an employee is exempt from the minimum-wage and overtime-pay provisions of the Fair Labor Standards Act (FLSA).” The Court reversed the Fourth Circuit, which had affirmed the District Court’s use of the “clear-and-convincing-evidence standard” in favor…
Texas Court Strikes DOL Rule Increasing Salary Basis Threshold
In an April 2024 final rule that abruptly took effect July 1, 2024, entitled Defining and Delimiting the Exceptions for Executive, Administrative, Professional, Outside sales, and Computer Employees, the Department of Labor amended the Fair Labor Standards Act to require a higher standard salary level for those employees exempt from the Act’s minimum wage…
DOL Publishes Final Rule Raising Salary Basis Threshold for Many Overtime Exemptions
On April 23, 2024, the U.S. Department of Labor published a final rule raising the minimum weekly salary many exempt employees must be paid to qualify as exempt from overtime under the Fair Labor Standards Act. The new rule raises the salary basis threshold for executive, administrative, professional and computer professional exempt employees from $684…
Day Rate Compensation Insufficient to Satisfy Salary Basis Test for Executive Exemptions says U.S. Supreme Court
A recent United States Supreme Court decision provided two reminders for employers utilizing a day-rate compensation scheme. First, employers must pay their day-rate employees overtime or risk potential liability under the FLSA. Second, employers cannot shield themselves from FLSA overtime liability by directing the Court to only their annualized compensation of employees or their job…
DOL Increasing Focus on Staffing Agencies and Health Care Practices’ Misclassifying Workers as Independent Contractors
On November 16, 2022, the Department of Labor announced that it had recovered $1.2 million in back wages from four different home health care agencies on behalf of 599 home healthcare workers. One of the responsible employers, Guardian Angels Care Services, Inc., owed $160,477 in overtime back wages for misclassifying its employees as independent…
Texas Employers Can Pay Employees in Bitcoin, But Why Should They? A Sequel
With the spectacular crash of the centralized cryptocurrency exchange FTX and the potential bankruptcy of a second high-profile cryptocurrency exchange called BlockFi, now is a good time to revisit whether an employer would want to pay or employees receives all or part of their wages in Bitcoin or other cryptocurrency.
Let’s go back to…
San Antonio Paid Sick Leave Ordinance Postponed until December 1, 2019
In a compromise between the City of San Antonio and a coalition of local San Antonio employers that sued to block the implementation of the new paid sick leave ordinance, the City agreed to postpone the effective date of the ordinance from August 1, 2019 until December 1, 2019. The state district judge hearing…
