Does the $107,432 Highly Compensated Exemption Apply to Texas Oilfield Workers?

Big Paychecks Do Not Automatically Cancel Your Right to Overtime

Key Takeaways: The $107,432 highly compensated employee (HCE) exemption rarely applies to Texas oilfield workers because high pay alone generally does not eliminate overtime rights under the FLSA. To qualify, an employer must generally show total annual compensation of at least $107,432, including a guaranteed $684 per week on a salary or fee basis, plus a primary duty involving office or non-manual work and at least one exempt executive, administrative, or professional duty. Federal guidance states plainly that white-collar exemptions do not reach manual laborers or blue-collar workers, no matter how highly paid. Roustabouts, frac hands, mud loggers, pressure control technicians, and truck drivers perform physical, repetitive work that generally falls outside the exemption. Day-rate pay often fails the salary basis requirement, weakening an employer’s exemption defense, and employers may instead raise the separate motor carrier exemption. Because Texas generally follows federal standards, the answer usually turns on your actual duties, pay records, and hours rather than your job title.

If your Texas oil patch employer says you’re exempt because you earn over $107,432 a year, that answer may be incomplete. Under the federal Fair Labor Standards Act, high pay alone generally does not strip a worker of overtime rights. The HCE exemption has a second half many employers ignore: a duties test. Many rig hands, field technicians, and truck drivers perform hands-on physical work that generally falls outside the exemption no matter how large the annual total is. Because exemptions are defenses the employer must prove, and each case depends on its own facts, the discussion below describes general rules rather than predictions about any individual claim.

If you are a day-rate or hourly field worker who suspects your exempt classification is wrong, the attorneys at The Lore Law Firm can review how you are paid and what you actually do on site. Call 866-559-0400 or request a free case evaluation to discuss your situation confidentially.

What the $107,432 Threshold Actually Requires

The $107,432 figure is generally only the entry ticket, not the whole test. The U.S. Department of Labor’s overtime rules for highly compensated employees explain that to qualify, an employee must receive total annual compensation of at least $107,432 during a 52-week period, including at least $684 per week paid on a salary or fee basis. Commissions and nondiscretionary bonuses can count toward the annual total, but board, lodging, insurance, and retirement contributions generally do not. The weekly guaranteed amount can matter as much as the yearly total, since it cannot be satisfied with bonuses or incentive pay.

The threshold returned to $107,432 after federal courts in Texas vacated the 2024 overtime rule nationwide in late 2024. The Department of Labor stopped defending that rule and has since restored the 2019 levels. Because this is a federal FLSA standard rather than a Texas-specific rule, it generally applies the same way across the state, though figures can change through future rulemaking or litigation.

The Duties Test Employers Often Skip

Even a worker who clears the pay threshold generally must also pass a simplified duties test. Under the DOL’s framework, the employee must customarily and regularly perform at least one exempt duty of an executive, administrative, or professional employee, even without satisfying every element of the standard duties test. Just as importantly, the employee’s primary duty must include office or non-manual work.

Most oilfield jobs do not fit that description. A mud logger recording data, a welding inspector checking joints, or a drill crew member handling pipe is generally performing technical or physical work rather than managing a business, exercising discretion over significant business matters, or practicing a learned profession. Courts generally look to actual day-to-day tasks rather than a job title on an offer letter.

Why the Highly Compensated Employee Exemption Oilfield Workers Question Usually Turns on Blue-Collar Work

Federal guidance states directly that white-collar exemptions do not reach manual laborers. The DOL’s regulations provide that the exemptions do not apply to manual laborers or other “blue-collar” workers who perform repetitive operations with their hands, physical skill, and energy, no matter how highly paid. Secondary sources describing the white collar exemption rules make the same point.

That principle may resolve the highly compensated employee exemption oilfield workers question for a large share of the industry. Roustabouts, coil tubing operators, frac hands, pressure control technicians, and water truck drivers typically perform repetitive, physically demanding operations. Employers often still label these workers exempt because annual earnings look high after months of long hitches and day rates paid without overtime premiums. Whether a particular worker is exempt still depends on that worker’s own duties.

• Physical, hands-on field work generally points away from exempt status.

• A high annual total built from long hours does not, by itself, create an exemption.

• Titles such as “supervisor” or “consultant” generally do not control if the daily reality is manual labor.

• A day rate with no guaranteed weekly salary amount can undercut the employer’s exemption defense.

💡 Pro Tip: Save your daily time sheets, JSAs, pay stubs, and field tickets. Hours records are often the single most useful proof when an employer claims you worked no overtime or that you were properly classified.

Day Rate Pay and the Salary Basis Problem

A flat daily payment is generally not automatically a salary. The HCE exemption requires a guaranteed weekly amount paid on a salary or fee basis in addition to the annual total. The U.S. Supreme Court held in Helix Energy Solutions Group v. Hewitt (2023) that a daily-rate worker is not paid on a salary basis unless the employer meets separate regulatory conditions for computing pay on an hourly, daily, or shift basis, requiring a guaranteed weekly minimum that reasonably relates to the amount actually earned. When a worker is paid only for days actually worked, with no such guarantee, the employer may be unable to show a true salary was ever paid, which can defeat an exemption defense.

This is where many oil and gas pay practices may break down. Learn more about how day rate exemption lawyer issues arise for field employees receiving the same amount for a 10-hour day and a 16-hour day. Under DOL regulations, a non-exempt day-rate employee who works more than 40 hours in a week is generally owed an additional half-time premium on the regular rate, calculated by dividing total day-rate compensation by all hours worked that week.

How the Two Halves of the Test Compare

All parts of the test generally must be satisfied, not just the pay level. If any element fails, the exemption typically does not apply and overtime may be owed for hours beyond 40 in a workweek, unless another exemption applies. Outcomes depend on the specific facts of each job and pay plan.

Other Exemptions Employers May Raise Instead

When the pay-based exemption fails, employers sometimes point to a different rule. Section 13(b)(1) of the FLSA contains a motor carrier exemption that can apply to employees of motor carriers whose duties affect the safety of motor vehicle operation on public highways in interstate commerce. Oilfield workers hauling equipment, water, or materials across state lines in vehicles with a GVWR over 10,000 pounds may be evaluated under this separate provision instead of the HCE rule.

This exemption is distinct and fact-intensive. It may depend on vehicle weight, the interstate nature of the routes, and the safety-affecting nature of the job. A separate federal statute also preserves overtime rights for certain drivers and helpers who work in part on smaller vehicles rated at 10,000 pounds or less. If your employer raises it, you may want to consult a lawyer before accepting that answer, since the analysis can shift with small changes in job duties.

Texas Follows Federal Standards Here

Texas does not have a separate state overtime statute that replaces the FLSA for these claims. Texas statutory provisions reference the federal executive, administrative, or professional exemption framework under the Fair Labor Standards Act of 1938, 29 U.S.C. § 201 et seq., the same statutory base for the HCE exemption. Practically, an unpaid overtime Texas claim in the oil and gas sector is usually analyzed under federal rules, and unlike some states, Texas does not impose a higher salary threshold or a stricter duties test.

Be careful not to confuse unrelated Texas exemption lists with overtime law. Texas workers’ compensation provisions exclude certain categories, such as domestic workers, casual workers, and some farm or ranch employees, from that subtitle. Those carve-outs generally have nothing to do with whether you may be entitled to time-and-a-half for hours over 40.

💡 Pro Tip: Write down a short description of what you actually do each day, including tools you handle and whether you hire, fire, or set budgets. That description often matters more than your title when an FLSA exemption test is applied.

Frequently Asked Questions

1. Does earning more than $107,432 make me exempt from overtime?

Generally, no. The pay level is one requirement, and duties requirements generally must also be met. Employees whose primary duty is manual or repetitive physical work typically remain non-exempt regardless of total annual compensation.

2. Can a day rate satisfy the salary basis requirement?

In many cases, it does not. The exemption calls for a guaranteed weekly amount of at least $684 paid on a salary or fee basis, and pay that fluctuates purely with days worked generally fails that standard unless the employer provides a qualifying weekly guarantee that reasonably relates to actual earnings.

3. What if my employer calls me an independent contractor?

A label generally does not decide the question. Courts apply an economic reality test weighing factors such as control over the work, investment, permanence, opportunity for profit or loss, skill, and whether the work is integral to the employer’s business. No single factor is controlling.

4. How far back can I recover unpaid overtime?

FLSA claims are subject to a limitations period that generally runs two years, extending to three years for willful violations. The clock generally continues to run until a claim is filed, so timing should be reviewed promptly.

5. Will filing a claim put my job at risk?

The FLSA prohibits retaliation against employees who file complaints or assert wage rights, and remedies can include reinstatement and damages. Protection is not a guarantee against all workplace consequences, so documenting events as they occur is generally advisable.

What This Means for Your Paycheck

The HCE exemption in oil and gas is often far narrower than many employers suggest. Clearing the $107,432 threshold generally does not end the analysis, because the rule also calls for a genuine weekly salary or fee basis, office or non-manual primary duties, and at least one true executive, administrative, or professional responsibility. For crews performing physical field work, exempt status may be difficult for an employer to establish. Because these determinations depend heavily on your actual duties, pay records, and hours, a careful review of your specific situation is generally the best next step.

If you believe you have been misclassified and denied overtime, The Lore Law Firm is ready to listen. Call 866-559-0400 or visit overtime-flsa.com to start a confidential review of your day-rate pay and hours.

Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.