Mark Wilson v. Schlumberger Technology Corporation

The Fair Labor Standards Act, 29 U.S.C. 201, et seq. (“FLSA”) requires the payment of overtime wages to the vast majority of American workers, unless those workers fall under an applicable exemption. The exemption alleged to apply to Petitioner Wilson requires that he be paid on a “salary basis.” Pursuant to the legislative rulemaking authority delegated to it by Congress, the Department of Labor set forth the very limited circumstances when an employer can pay additional compensation to salaried employees without violating the “salary basis” test. 29 C.F.R. §541.602(a)-(b). Mr. Wilson was paid on a salary plus day rate basis, but the amount of his “salary” is just 28.5% ($28,812.90) of his compensation while the daily pay is 71.5% ($72,150) of his total compensation ($100,962.90) (a ratio of 1 to 3.5). The questions presented are: 1. Whether an employer who pays an employee a guaranteed weekly amount that exceeds the salary level test and who is also paid additional compensation on an hourly, daily or per shift basis must meet the “reasonable relationship” test of 29 C.F.R. § 541.604(b) to be paid on a salary basis for purposes of the executive, administrative, or professional exemptions to the FLSA and its implementing regulations, where that additional compensation’s relationship to the guaranteed weekly pay exceeds a ratio of 3:1?