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Oil rig workers often spend long hours on the job. Unfortunately, many of them might be unaware that they’re not getting the overtime pay they deserve. It is not uncommon for workers in the industry to be paid a salary, by the hour, or at a day rate. However, under the Fair Labor Standards Act, oil rig workers are still entitled to one and one-half times their regular rate of pay for any time worked in excess of 40 hours in a week.
What Overtime Pay Violations are Oil Rig Workers Alleging?
The federal Fair Labor Standards Act (FLSA) does not prohibit employers from requiring mandatory overtime. But, employers must pay overtime to nonexempt oil rig workers for any amount of time they worked over 40 hours a week.
Critically, some oil and gas companies might be attempting to circumvent the law and misclassify workers as exempt by giving them the title “supervisor.” Others may be labeling oil rig workers as independent contractors when they are actually employees. There have also been lawsuits alleging that certain companies failed to pay workers beyond their day rate or provide them with overtime because they received bonuses.
Oil rig workers may also be entitled to pay for their time spent traveling back and forth to job sites or attending safety training. These kinds of job-related activities can also factor into overtime pay by causing the workweek to exceed 40 hours.
How Does Overtime Pay Get Calculated?
Overtime pay is calculated by 1.5 times the regular pay rate. However, many oil rig workers are paid at a day rate. In these cases, the pay rate is determined by multiplying the daily rate by the days worked in the week. This number is divided by the total number of hours worked during the week to arrive at the “regular pay rate.”
To get the overtime rate, divide this number in half — this is the additional amount owed for each hour over 40 that is worked in the week.
What Can Oil Rig Workers Do if They Were Denied Overtime Pay?
If you’re an oil rig worker who works more than 40 hours a week without receiving overtime pay, you may be entitled to compensation from your employer. By filing a lawsuit or joining a class or collective action, you may be eligible to recover your back pay, liquidated damages, and attorney’s fees.
If you think you have a case for overtime pay, an experienced attorney can best advise you concerning your legal rights and remedies.
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