The oilfield industry is a vital part of the American economy, employing thousands of workers across various states. However, due to the demanding nature of the job, many oilfield workers find themselves working long hours, often beyond the standard 40-hour workweek. Understanding the overtime laws that apply to oilfield workers in different states is crucial for ensuring fair compensation. In this guide, we provide an in-depth analysis of overtime laws in the states where oil and gas production is common and how they apply to oilfield workers.

Federal Overtime Laws

Before diving into state-specific laws, it’s essential to understand the baseline set by federal law. The Fair Labor Standards Act (FLSA) requires that non-exempt employees be paid overtime at a rate of one and a half times their regular pay for hours worked over 40 in a workweek. However, the FLSA has specific exemptions, some of which may apply to oilfield workers, such as the “highly compensated employee” exemption or the “motor carrier” exemption.

State-Specific Overtime Laws

New Mexico

The Permian Basin extends from Texas into New Mexico.  New Mexico has its own overtime provisions under the New Mexico Minimum Wage Act.  This overtime law is one of the most powerful state overtime statutes in the country, for several reasons.  First, it contains a provision stating that as long as a violation is ongoing, the statute of limitations does not begin to run.  Second, it provides for treble damages.  Third, the fluctuating workweek, which allows overtime to be paid at half-time, is illegal in New Mexico.   

California

• Overtime Rules: California has some of the most stringent overtime laws in the U.S.
  • Employees are entitled to overtime pay at 1.5 times their regular rate of pay for:
    • Work over 8 hours in a day.
    • Work over 40 hours in a week.
    • The first 8 hours worked on the seventh consecutive day of work in a workweek.
  • Double time is required for:
    • Work over 12 hours in a day.
    • Work over 8 hours on the seventh consecutive day of work in a workweek.

Alaska

Alaska has its own overtime statute. Under Alaska law, an employer may not require an employee to work more than 40 hours in a workweek or more than eight hours in a single day. If an employer requires an employee to work beyond these limits, the employee must be compensated for the overtime at a rate of one and one-half times their regular hourly wage.

Texas

Texas has four major shale formations – Barnett, Eagle Ford, Permian and Hanynesvillle.   Texas does not have its own overtime law, and thus workers in the state are subject to the FLSA.

Louisiana

Louisiana, home of the Bossier Shale Formation, does not have its own overtime law, and thus workers in the state are subject to the FLSA.

North Dakota

North Dakota, home to the Bakken Formation, does not have its own overtime law, and thus workers in the state are subject to the FLSA.

Colorado

Colorado has more stringent overtime laws than the federal standard. The Colorado Overtime and Minimum Pay Standards Order (COMPS Order) mandates overtime pay for employees working over 12 hours in a workday or 40 hours in a workweek. This is particularly relevant for oilfield workers who often have extended shifts.

Oklahoma

Oklahoma has several shale formations, including the Caney Shale, the Woodford Shale, and the Cana-Woodford. Oklahoma does not have its own overtime law, and thus workers in the state are subject to the FLSA.

Pennsylvania

Pennsylvania has its own state statutes which requires overtime pay for hours worked over 40 in a workweek. However, the state also has specific protections for “day rate” workers, common in the oilfield industry.

Key Considerations for Oilfield Workers

1. Misclassification: One of the most common issues in the oilfield industry is the misclassification of workers as independent contractors or exempt employees.
2. Day Rate Pay: Workers paid on a day rate basis are often entitled to overtime pay.
3. Exemptions: Understanding the exemptions under the FLSA and state laws is crucial. Most oilfield workers performing manual labor will not qualify for any overtime exemptions, and employers often incorrectly apply these rules.

Conclusion

Oilfield workers play a critical role in the energy sector, and their labor rights, particularly regarding overtime pay, must be protected. This state-by-state guide highlights the importance of understanding both federal and state-specific laws to ensure fair compensation. If you believe your rights have been violated or you are unsure about your classification or pay structure, consulting with an experienced attorney can help clarify your situation and protect your rights.

At Borsellino PC, we have extensive experience representing oilfield workers. We understand the complexities of overtime law and are committed to fighting for the rights of workers.

If you believe you have questions about overtime pay, contact us today. Call us at 817.908.9861, email me here or use this contact form for a free consultation.