Inspectors Claim Unpaid Overtime Pay Resulting from Day Rate Pay Scheme
A lawsuit has been filed against Wellsco Field Services, LLC (Wellsco) stating that it has violated the federal overtime labor laws by paying its field service workers using a day rate system, under which employees receive a flat dollar rate for each day they work – and no overtime pay.
The lawsuit has been brought on behalf of all field service workers, including but not limited to welding inspectors and utility inspectors, who were paid on Wellsco’s day rate system. The legal flaw claimed is that the day rate pay practice violates the Fair Labor Standards Act (FLSA) because the workers do not receive any additional overtime premium for the many hours they routinely worked beyond 40 per workweek.
As awareness spreads among oil field workers being paid on a day-rate system (and even others on paid on a “salary” basis), similar claims have also been brought against other companies that provide a wide range of oilfield service workers to the oil and gas industry. These claims cover a variety of jobs ranging from pipeline inspectors, top drive technicians, top drive assistants, service supervisors, field engineers, production managers, pumpers, field coordinators and office clerks
Under federal and state hour and wage laws, non-exempt employees may be paid using a valid day rate plan, but must still be paid overtime for all hours worked in excess of forty per week (note: in some states such as California, overtime pay laws may require an overtime premium for all hours worked over 8 per day). It is the manner in which a day rate worker’s overtime is calculated that is a bit different, and sometimes botched. The proper calculation begins with determining the worker’s “regular rate” of pay for each work week. This is done by adding up the total day rate compensation for the week and then dividing this amount by the total hours worked during the week. For all hours worked beyond 40 during the week, the employee should be paid an additional premium equal to one half their “regular rate” of pay.
If you are a current or former oil field and/or gas field worker and believe that you may have a claim or would like to get more information, please call us at 1-866-559-0400, email us at firstname.lastname@example.org or submit your information using our convenient Case Evaluation form for a FREE and CONFIDENTIAL review of your circumstances.
A Note About Retaliation: Both Federal and State labor laws strictly prohibit an employer from firing, demoting or in any other manner retaliating against workers because they have exercised their right to complain and/or make a claim for unpaid overtime wages.