ConocoPhillips Lawsuit Argues Oil Industry Workers Denied Overtime

In May 2020, a collective action brought under the Fair Labor Standards Act was filed in the Southern District of Texas Houston Division against oil company ConocoPhillips. Notably, the ConocoPhillips lawsuit draws attention to an issue that has reportedly been prevalent in the oil industry — overtime pay violations. While many oil workers spend well over 40 hours a week on the job, not all of them are compensated with the overtime pay they’re entitled under the Fair Labor Standards Act.

What Does the ConocoPhillips Overtime Pay Lawsuit Allege?

The ConocoPhillips lawsuit was filed by Plaintiff Larry M. on behalf of himself and other oil and gas workers who claim they were wrongfully denied overtime pay. Specifically, the complaint alleges that the workers were paid a day rate without compensation for hours worked over 40 in a week. According to the lawsuit, the day rate workers were often scheduled to work 12-hour shifts for weeks at a time.

Plaintiff Larry M. also contended in the ConocoPhillips lawsuit that he was misclassified as an independent contractor, rather than an employee, despite being regularly on call. Misclassifying employees as independent contractors — who are exempt from overtime — is a common tactic used by employers to avoid paying overtime compensation.

The plaintiffs are requesting their unpaid wages, liquidated damages, and attorney’s fees. Litigation is ongoing.

What is Overtime Pay?

Overtime pay is compensation that employees are legally entitled for any time they have worked over 40 hours in a workweek. Under the federal Fair Labor Standards Act, nonexempt workers are eligible to receive one and one-half times their regular pay rate for each hour worked beyond 40 hours. This also includes nonexempt workers in the oil industry — regardless of whether they are paid a day rate or a salary.

When employees are paid a day rate, their overtime rate is calculated by multiply the rate they’re paid daily by the number of days worked in a week. That number must then be divided by the total number of hours worked in the week to get the “regular pay rate.” Next, the regular pay rate is divided in half — this is the overtime rate.

Can You File an Overtime Pay Lawsuit?

Regardless of whether you were paid a day rate or a salary, you may be entitled to overtime pay if you are a nonexempt employee. If you regularly worked more than 40 hours in a workweek and your employer did not properly compensate you in compliance with the Fair Labor Standards Act, you might be eligible to receive back wages, liquidated damages, and your attorney’s fees. An experienced attorney can advise you of your legal rights and remedies.