Inspectors Claim Unpaid Overtime Pay Resulting from Day-Rate Pay Scheme

Lawsuits continue to be filed seeking recovery of back overtime pay on behalf of all types of construction inspectors paid on a day-rate basis. Despite numerous cases over the past several years, many inspection companies continue to employ a day-rate pay scheme that does not include proper pay for overtime hours.

These cases claim that employers have violated the federal overtime labor laws by paying 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.

Day-Rate Pay Violation

Lawsuits have been brought on behalf of all types of field service workers who were paid on a day-rate system, including but not limited to:

  • welding inspectors
  • tank inspectors
  • safety inspectors
  • E&I inspectors
  • NACE coating inspectors
  • vendor inspectors
  • tie-in inspectors
  • directional drill inspectors
  • utility inspectors

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 work week.

Spreading Awareness to Other Oil Field Workers

As awareness spreads among oil field and industrial workers being paid on a day-rate system (and even others paid on a “salary” basis), similar claims continue to be brought against 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).

Calculating Day-Rate Worker’s Overtime

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.  Find more information about how to calculate overtime pay when you are paid a day rate.

Are You Owed Overtime Pay?

If you are a current or former oil, gas, construction, or other type of field worker paid on a day-rate basis 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 mlore@overtime-flsa.com, 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.

Fill out our quick case evaluation form for a free and confidential review of your situation.