5 Myths About Overtime Pay in the Oil Industry

Workers in the oil industry often work well beyond 40 hours in a week — some may even spend 100 hours a week on the job. But not all of them are being compensated fairly for the total amount of time they put in. Unfortunately, there are many myths in the industry that may lead workers to believe that they’re not entitled to overtime pay when they are legally entitled to receive it.

Here are five of the most common myths about overtime pay in the oil industry:

Myth #1: You’re an independent contractor who isn’t entitled to overtime pay.

While it is true that the Fair Labor Standards Act (FLSA) exempts independent contractors from overtime pay, it’s essential to consider whether your employer has misclassified you as an independent contractor when you should actually be considered an employee. In some cases, employers intentionally misclassify employees as independent contractors to avoid paying payroll taxes and overtime, and in other cases, misclassification may be unintentional.

However, under the FLSA, several factors are considered to determine whether a worker is actually an independent contractor, regardless of what their employer might label them.

Myth #2: Salaried workers in the oil industry are exempt from overtime pay.

If you’re a nonexempt employee, you are entitled to overtime pay for any hours worked over 40 in a workweek — even if you’re paid a salary. Additionally, having the title of “supervisor” may not exempt you from overtime pay. A common tactic used by employers to circumvent the overtime pay rules is giving employees misleading management titles without the responsibilities that come with the position.

Myth #3: Time spent traveling between sites doesn’t count toward overtime.

Workers in the oil industry often travel between sites throughout the day as part of their job functions. Under the FLSA, this type of travel time may be compensable and counted toward overtime.

Myth #4: If you’re paid “straight time,” you don’t get overtime pay.

It’s not uncommon for companies in the oil industry to pay employees “straight time” to workers who have worked more than 40 hours in a week. But to comply with the FLSA, workers are not just entitled to their hourly rate for overtime pay — they must be paid at 1.5 times their regular pay rate.

Myth #5: If you’re paid a day rate, you’re not entitled to overtime pay.

Being paid a day rate is common in the oil industry, but this doesn’t exempt a worker from overtime pay at 1.5 times what their regular pay rate amounts to for hours worked over 40 in a week.

What Can You Do if You Were Denied Overtime Pay in the Oil Industry?

If you work in the oil industry and were denied overtime pay, you might be entitled to take legal action. By filing a lawsuit under the FLSA, you may be eligible to receive the compensation you’re owed, liquidated damages, and attorney’s fees. An experienced attorney can best advise you concerning your legal rights and remedies.