Oil & Gas Workers Overtime Lawyers

In general, most oil and gas workers who are classified as non-exempt employees are eligible for overtime pay. This includes positions such as drillers, rig hands, production operators, mechanics, and other similar roles. However, the determination of whether an employee is eligible for overtime pay depends on various factors, including job duties, salary, and exemption criteria defined by the FLSA and applicable state laws.

Oil companies, like any other companies, are required by law to pay overtime to eligible employees. In the United States, the Fair Labor Standards Act (FLSA) mandates that employees must receive overtime pay for hours worked over 40 in a workweek at a rate not less than one and one-half times their regular rates of pay. There are, however, certain exemptions to this rule, and some employers may attempt to deceptively use these exemptions as excuses to avoid paying overtime.  Here are some examples of how companies try to avoid paying overtime.  

Misclassification of Employees: Some companies might try to classify workers as independent contractors instead of employees, or as exempt employees, to avoid paying overtime. Exempt employees typically have managerial, professional, or administrative roles, and their pay is not subject to overtime laws. Misclassification, however, is illegal and can result in penalties if incorrect.

“Salary” Employees: Some companies might pay a “salary” to non-exempt employees to try to avoid overtime. However, simply being paid on a salary basis does not make an employee exempt from overtime pay. It also depends on the nature of the work performed.  General oilfield work is usually not exempt work and must be paid overtime.  

Off-the-Clock Work: Some companies might ask or allow workers to work “off the clock,” meaning they perform duties before clocking in for their shift, after clocking out, or during their breaks. This practice is illegal if the employee is not compensated for these hours.

Improper Calculation of Overtime Rate: Some companies might fail to include all compensation when calculating an employee’s regular rate of pay, which is used to determine their overtime rate. This could result in an employee receiving less overtime pay than they are legally entitled to.

Use of the Fluctuating Workweek Method: This method allows an employer to pay a fixed salary to a non-exempt employee whose hours fluctuate from week to week. The employer then pays overtime at a half-time rate, rather than the typical time and a half. This method can only be used if certain conditions are met, and misuse can result in violations of overtime laws.

These practices can lead to lawsuits and significant penalties for companies. If an oilfield worker feels they have been unfairly denied overtime pay, they should seek legal counsel immediately. 

Oil and gas overtime pay lawsuits are legal actions taken by employees in the oil and gas industry who believe they have been improperly denied overtime pay. These lawsuits typically involve allegations that employers violated federal or state wage and hour laws by failing to compensate their workers for the extra hours they worked beyond the standard 40-hour workweek.

Oil and gas industry jobs that are being investigated for potential wage and hour law violations include:

• Pipeline Inspectors
• Top Drive Technicians
• Top Drive Mechanics
• Closed Loop Operators
• Service Supervisors
• Pumpers and Lease Operators
• Field Coordinators
• MWD/LWD Engineer or Operator
• Field Specialists
• Field Engineers
• Field Operators
• Tool Pushers
• Mud Loggers / Solids Control
• Tankermen 
• Wireline or Slickline Operators
• Directional Drillers

Some employers have argued against oil and gas overtime cases, claiming that the day-rate method of paying employees does not meet the standards required by federal labor law to earn overtime pay. 

However, if an employee’s 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 for time worked beyond forty hours per week violated wage and hour laws. 

Also, recently the United States Supreme Court held that an employee who is truly paid a day rate is eligible for overtime in most situations and must be paid overtime for overtime hours worked.  

While an employer is permitted to pay non-exempt employees on a day-rate basis, an employer must still pay such employees overtime compensation pay for hours worked in excess of 40 per week.

Remedies sought in overtime pay lawsuits may include back pay for unpaid overtime, liquidated damages (equal to the amount of unpaid overtime), attorney fees and court costs, injunctive relief to ensure future compliance with overtime laws, and other appropriate legal remedies depending on the circumstances of the case.

If oil and gas workers believe they are owed unpaid overtime, they should consider consulting with an employment attorney who specializes in wage and hour disputes. An attorney can help assess their situation, evaluate their eligibility for overtime pay, gather evidence, and guide them through the process of filing a lawsuit or pursuing a resolution through negotiations or alternative dispute resolution methods.

If you’re an oil and gas service worker and believe you’re owed money by a former or current employer, don’t wait to get justice—and the money you rightfully need and deserve. 

Reach out to Morgan & Morgan for a free, confidential case evaluation. Our team of wage and hour attorneys can tell you how best to stand up against pay injustice and fight to recover the wages you may be owed.