Oil Drilling Co. Agrees To $1.8M Unpaid Overtime Settlement

Workers have reached an agreement with Ensign United States Drilling Inc., a Denver, Colorado-based company, to resolve claims that the employer neglected to pay employees properly for overtime.

The unpaid overtime lawsuit was filed in Colorado federal court.

Under the terms of the unpaid overtime settlement, Ensign has agreed to compensate 28 operators in the collective action.

The operators alleged that Ensign misclassified them as exempt employees, and thus they were not fairly paid for overtime work.

“This case involves several bona fide disputes in the proposal and is a fair and equitable resolution to all parties,” the unpaid overtime settlement court documents read.

The proposed settlement amount for each individual represents an amount that exceeds the full amount of overtime pay that was owed to each of the 28 operators over a period of three years, assuming that operators worked a 12-hour workday during the relevant time period, according to Ensign.

As an example, lead plaintiff Andrew Demrow will receive a total of $88,894.49 for his share. The preliminary motion for approval states that this amount was calculated as a fraction of the overtime worked by each operator for three years at a total of 12 hours per day over the gross settlement amount.

Another worker is slated to receive $99,001.43 as his share, which is the largest portion of the settlement. The other workers will receive varying amounts ranging from $3748.40 to $73,037.73, according to the unpaid overtime settlement court documents.

Demrow filed this proposed class-action lawsuit in Colorado federal court in November 2015 following his layoff. He was employed by Ensign from April 2012 to 2015. He alleged that Ensign failed to pay him and other operators overtime for their work.

The plaintiff stated that he averaged about 84 hours a week or more of work, but since he was classified as an exempt employee, he was not paid for the excess hours. He alleged that Ensign violated the Fair Labor Standards Act.

The attorneys in the litigation will receive a total of $720,000 in fees and another $9000 in litigation costs, according to the terms of the unpaid overtime settlement.

The plaintiffs are represented by Karp Neu Hanlon PC.

Misclassified Workers May be Eligible for an Unpaid Overtime Settlement

If you are a worker who is classified as exempt, but believe you are misclassified and should be earning pay for your overtime, you may be eligible to take legal action against your employer.

Employees who file lawsuits against their employers for alleged violations of the Fair Labor Standards Act or applicable state labor laws may be able to recover lost wages as well as costs of litigation to pursue the lawsuit.

An experienced attorney can review your case at no charge and can help decide if you meet eligibility requirements to file a lawsuit or a class action lawsuit against the employer.

The Ensign Unpaid Overtime Lawsuit is Demrow v. Ensign United States Drilling Inc., Case No. 1:15-cv-02525, in the U.S. District Court for the District of Colorado.

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