This blog has previously covered the ongoing battles between plaintiffs suing for overtime pay, staffing companies and the companies that actually direct the workers. In the oil and gas industry, it has become common for large producers and service companies to use “staffing” or “consulting” companies to fill their positions. This is an effort by the oilfield companies to put distance between themselves and the workers and shield themselves from any liability under state and federal overtime laws. Several companies, including Cypress Environmental Management-TIR, LLC and Cleveland Integrity Services, Inc. have attempted to intervene in overtime lawsuits to enforce arbitration provisions and/or class action waivers. A review of the federal litigation database indicates that Cypress Environmental has been sued or intervened in more than a dozen overtime lawsuits. Likewise, Cleveland Integrity has been sued or intervened in almost 20 overtime cases. When one of their clients is sued under the FLSA, Cleveland and Cypress typically seek to intervene and ask the court to enforce an arbitration agreement signed by the worker. Judge Eskridge in the Southern District of Texas recently allowed Cleveland Integrity Services to intervene in an order dated February 23, 2021. The magistrate judge then recommended that Cleveland’s motion to compel arbitration be granted in an order dated March 18, 2021. Judge Eskridge has not yet ruled on this recommendation. Similarly, a judge in Tennessee allowed Cypress and another field services company, Kestrel to intervene in an overtime case. However, the Court denied the intervenors’ motion to transfer or compel arbitration.
If you work or have worked for Cypress Environmental Management-TIR, LLC or Cleveland Integrity Services, Inc. over the past three years and were not paid overtime, you should speak with an experienced overtime attorney to learn of your legal rights. If you have questions about overtime pay, call Josh Borsellino at 817.908.9861 or email him here for a free evaluation to see whether you may have a claim under state or federal overtime laws.