OVERTIME PAY LAWS IN OIL AND GAS INDUSTRY Oil, gas and drilling companies have a great deal of work and workers are in short supply. That automatically means that the workers have to work long hours, sometimes reaching 100 or more hours in a single week due to mandatory overtime.
The Fair Labor Standards Act (FLSA) requires that nonexempt employees, including those working in oilfields jobs, be paid time and a half for overtime, which is defined as any hours worked over 40 per week. Unfortunately, overtime pay violations in oil, gas and drilling industry are very common. Many companies pay workers under a ‘day rate’ method, which means employees are paid a flat amount for each day work, regardless of how many hours they have worked that day. For those with mud logging jobs (part of an oil field drilling team), it is not uncommon to work over the norm of 40 hours a week. The national overtime pay laws FLSA prohibits employer in the energy industry from withholding overtime pay from employees if they are classified as non exempt. Oil field workers may be non exempt, and entitled to overtime compensation, regardless of whether they are paid hourly, on a day rate or a salary. Proper classification is determined by a worker’s job duties and responsibilities and the manner in which they are paid.
While employers are legally obligated to keep accurate and complete time record for all non exempt employees, in order to protect you against overtime pay violations. It is a good idea to keep track of hours worked and maintains record of payroll, and then only you are covered if an issue ever arises where you believe you are not getting the overtime compensation rightfully owed to you. Overtime pay laws can be complicated and often vary from state to state, so it is also important to make yourself aware as to what is and is not legal when it comes to getting paid for overtime. For any issue an overtime claim lawyer can be contacted.
The FSLA establishes minimum wage, overtime pay and record keeping. The Department of Labor (DOL) released the â€œFair playâ€? rules that went into effect on August 23, 2004, for more information click here. Under the new fair play rules, workers earnings less than 23,660 dollar per year are guaranteed overtime protection. Under the new overtime rules, certain workers are automatically eligible for overtime pay regardless of how much they earn. The following class of workers is eligible for overtime, blue collar worker or manual laborers who perform work involving repetitive operations with their hands, physical skill and energy, police officers, fire fighters and others.
Published on Oct 1, 2013
Oil, gas and drilling industry are very common. Many companies pay workers under a ‘day rate’ method, which means employees are paid a flat...