A federal judge in Houston has issued a ruling in an overtime case involving Precision Directional Services, Inc and Precision Drilling Corporation. A former worker sued both companies alleging he and others were misclassified as independent contractors while employed by Defendants and that as such, they were improperly paid (under the FLSA) a fixed daily rate for all hours worked instead of an overtime rate for hours worked over forty. The court found that the claims are within the scope of an arbitration agreement between the worker and RigUp, the consulting company he worked for. As such, the court ordered the case to arbitration. The court did not rule on the merits of the claims against Precision Directional Services, Inc and Precision Drilling Corporation – those will be decided in the arbitration. The attorneys at Borsellino, P.C. are not involved in the lawsuit.
Companies in the oil industry – both on the production and service side – continue to use “consulting firms” to fill many important positions, such as directional drillers, MWDs, rig supervisors, company men, and HSEs, on their rigs. They do so in order to claim that these workers are independent contractors so they can pay them a day rate without overtime or benefits. However, this is often a violation of federal overtime laws. If you have worked as a “consultant” or an independent contractor in the oilfield industry within the past three years and paid a day rate or straight time, speak with an experienced attorney to learn of your legal rights. Do so as soon as possible, as there are time limitations that may bar your claim if you wait too long.
Josh Borsellino has represented hundreds of employees that were paid day rates on claims for unpaid overtime. He works hard to get workers the overtime pay they deserve. Call Josh Borsellino at 817.908.9861 or email him here for a free and confidential, no-obligation consultation.