Many oilfield workers in Texas and across the country are paid a day rate for long shifts. While this pay structure is common in drilling, completions, wireline, and other field operations, being paid a day rate does not automatically mean a worker is exempt from overtime pay. In fact, many day-rate workers who regularly work more than 40 hours per week may be legally entitled to significant unpaid overtime.
A Day Rate Is Not the Same as a Salary
Employers sometimes tell workers that a day rate functions like a salary and eliminates the need to pay overtime. This is often incorrect. Federal wage law generally requires overtime pay at one-and-one-half times the worker’s regular rate for hours worked over 40 in a workweek. A day rate is simply one method of calculating compensation. It does not automatically satisfy the requirements for an overtime exemption.
Long Hitches Often Result in Overtime Violations
Oilfield workers frequently work extended schedules such as 12- to 14-hour shifts for multiple consecutive days or weeks. These long hitches can easily result in 70 or more hours worked in a single week. When employers pay only a flat day rate without properly calculating overtime, workers may lose thousands of dollars in wages over time.
Job Duties Determine Whether Overtime Is Required
Employers sometimes classify day-rate workers as supervisors or professionals to avoid paying overtime. However, job titles alone do not control overtime eligibility. Courts examine the worker’s actual duties. Employees who primarily perform manual labor, operate equipment, perform inspections, assist with wellsite operations, or carry out technical field work are often entitled to overtime even if they are given elevated titles.
Additional Pay Such as Bonuses or Per Diem May Affect Overtime Calculations
Some oilfield workers receive bonuses, safety incentives, or per diem payments. In certain situations, these additional forms of compensation must be included when calculating the worker’s regular rate of pay for overtime purposes. Improper calculations can further increase the amount of unpaid wages owed.
Employers Must Keep Accurate Records of Hours Worked
Oilfield schedules can be demanding and unpredictable, especially when crews travel between wellsites or remain on location for extended periods. Employers are generally responsible for maintaining accurate time records. When records are incomplete or inaccurate, workers may still prove their claims using hitch schedules, text messages, pay stubs, or testimony from coworkers.
You May Be Entitled to Recover Significant Back Pay
Unpaid overtime for day-rate oilfield workers can accumulate quickly, particularly for those who work long rotations or travel frequently for assignments. Workers may be entitled to recover back wages and additional damages under federal law. In some cases, groups of workers with similar pay structures may pursue collective legal action.
Free Consultation
If you were paid a day rate and worked long hours in the oilfield, you may be owed unpaid overtime. For more information about your rights, contact Josh Borsellino at 817-908-9861 or josh@dfwcounsel.com.