A number of lawsuits have been filed against several oilfield service companies, including:

  • FracTech,
  • Moody International,
  • ENGlobal,
  • And, WellsCo

by workers seeking to recover unpaid overtime pay. Claims for unpaid overtime are being investigated on behalf of similar workers at other companies. The following are a few of the oil and gas industry jobs that are being investigated for potential wage and hour law violations:

  • Pipeline Inspectors
  • Top Drive Technicians
  • Top Drive Assistants
  • Top Drive Mechanic
  • Service Supervisors
  • Service Supervisors
  • Field Coordinators
  • Field Office Clerks
  • Field Engineers
  • Water Truck Drivers
  • Mud Loggers and Mud Logging Technicians

Oilfield and gas technical services workers are often required to work well over 40 hours a week, frequently over 100 hours per week, but are not paid overtime compensation as required by federal labor laws for this mandatory overtime work.

The FLSA Overtime Law

While The Fair Labor Standards Act does not prohibit the energy service companies from forcing their employees to work large amounts of overtime, it does require that they pay overtime to non-exempt hourly employees who work more than 40 hours per week at a rate equal to one-and-a-half times their regular rate of pay.

Does the Day Rate Method Meet FLSA Standards?

One issue involved in some of these cases is whether the day-rate method of paying employees met the standards required by federal labor law. Where employees’ wages are reduced when the employee worked less than a full day, courts have found that an employer did not have a valid day-rate plan and therefore their failure to pay employees overtime compensation pay for time worked beyond forty hours per week violated the wage and hour laws.

ENGlobal Example

In the lawsuit filed against ENGlobal, the plaintiffs assert violation of the Fair Labor Standards Act (FLSA) by failing to pay its field service workers, who are paid using a day rate system, overtime when they work more than 40 hours in a week. While an employer is permitted to pay non-exempt employees on day rate basis, it must still pay such employees overtime pay for hours worked in excess of 40 per week.

Many drilling related employees impacted by these industry wide pay practices work in the major U.S. shale gas plays, namely:

  • Barnett Shale (Texas)
  • Fayetteville Shale (Arkansas)
  • Bakken Shale (North Dakota and Montana)
  • Haynesville Shale (North Louisiana, North Texas, and South Arkansas)
  • Marcellous Shale (Pennsylvania, West Virginia, New York, and Ohio)
  • Woodford Shale (Oklahoma)
  • Cotton Valley (North Texas and North Louisiana)
  • Eagle Ford Shale (South Texas from Laredo to Houston)
  • Niobrara Shale (Denver – Julesburg Basin in North Colorado, South Wyoming, Nebraska, and Kansas)
  • Utica Shale (North New York State)
  • Piceance-Uinta (North Utah and North Colorado)

Do You Have a Claim?

If you are a current or former oil and gas 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 [email protected] or submit your information using our convenient Case Evaluation form for a FREE and CONFIDENTIAL review of your circumstances.