Oilfield Wage Theft

Common violations

Oil and Gas Companies are notorious for failing to pay proper wages to its workers. Common violations committed by these companies include:

• Misclassifying their employees as “independent contractors” and not paying them overtime;
• Not paying employees for all hours worked including having to drive to the yard;
• Not being paid for work done at the beginning or end of the work day;
• Not including Bonuses or Commissions into the overtime rate;
• Paying a Day Rate but no overtime;
• Paying a Salary but no overtime;
• Paying a Piece Rate or Per Job pay;
• Paying a flat Hourly Rate for all hours worked regardless of overtime hours; and
• Paying a set “per diem” rate that was not included in the overtime rate.

Affected Job Titles

Some job titles where these violations occur are:

Inspectors

Oil and Gas Inspectors are commonly paid a day rate by oil and gas companies and no overtime. We have brought numerous lawsuits to recover inspector’s overtime wages. Generally, all employees should be paid overtime. However, those who qualify as administrative employees are exempt from receiving overtime. Occasionally, the oil and gas companies will try to say that the inspectors are administrative employees. However, the federal regulations make it clear that they are not. Specifically the following federal regulation:

Ordinary inspection work generally does not meet the duties requirements for the administrative exemption.  Inspectors normally perform specialized work along standardized lines involving well-established techniques and procedures which may have been cataloged and described in manuals and other sources.  Such inspectors rely on techniques and skills acquired by special training or experience.  They have some leeway in the performance of their work but only within closely prescribed limits.

29 C.F.R. 541.203(g). 

Common Questions

I signed a contract to get paid a day rate, can I sue for unpaid overtime?

Yes. Many times employers will require that their employees sign various documents when hired.  One of those may have been a contract to accept a day rate, to not to file a claim for overtime, to be an Independent Contractor or a contract to agree to arbitrate your claims. These contracts, which may or may not be valid, DO NOT prohibit you from making a claim for your unpaid overtime whether it be in federal court, through a settlement demand, or in arbitration. The Federal Labor Standards Act cannot be abridged by contract. In other words, you cannot agree to not get paid overtime if you are owed overtime. The law would simply void such an illegal contract.

I signed a contract to be an independent contractor, can I sue for unpaid overtime?

Yes, you can sue to recover your unpaid overtime. If you are truly an employee of the company, the contract you signed would not be valid. The law looks at the actual relationship between the parties and not simply the documents your employer made you sign.  It is illegal for employers to classify their employees as independent contractors simply to avoid paying overtime.   Federal law requires employers to pay overtime to non-exempt employees.

I signed an Arbitration Agreement promising not to sue, can I still recover overtime?

Yes.  If you signed a valid Arbitration Agreement, you can still bring a claim for your overtime through arbitration.  Arbitration is just another avenue for recovering your wages.  Some arbitration agreements have been held invalid, and we would carefully screen the agreement you signed, if any. Nevertheless, we would be willing to litigate your claim for overtime wages in arbitration.  

How much could I be entitled to?

If you were paid in one of these ways, you may have a claim worth several thousand dollars depending on how long you were employed and your pay rate.  By way of example, if you were paid a salary of $1,500 a week and worked 60 hours, you would be entitled to $500 in overtime for that one week.  This is calculated by dividing the weekly salary of $1,500 by 60 hours to calculate your hourly rate ($25) and multiplying it by .5 to calculate your overtime rate ($12.50); you then multiply your overtime rate of $12.50 by the 20 overtime hours (60-40) = $250.  Under the law you may be entitled to liquidated damages, meaning you multiply how much you are entitled to in unpaid overtime by two ($250 x 2 = $500).   The statute of limitations allows you to recover unpaid wages two years from the date you file a claim and in some instances three years.  For example, if you file a claim today you can recover your unpaid wages from three years from today to the present.  However, the longer you wait to file a claim, the less you may be entitled to recover. This example, demonstrates the maximum amount you may be entitled to.

If you were a day-rate paid employee, you may be entitled to the amounts below:

Example with a Day rate: $200

• Day Rate: $200
• Days Worked: 5
• Hours worked per day: 10
• Total Hours worked: 50
• Total overtime hours worked: 40
• Total Pay: ($200 x 5)= 1,000
• Total hourly rate: $20
• Overtime premium owed: ($20/2)=$10
• Total overtime owed this week: $100
• Liquidated damages: $100
• Total potential recovery for the week: $200.

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