Humble drilling company to pay $580,000 in back OT

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in Small Business Tax Deduction Strategies

Unit Texas Drilling has settled a U.S. Department of Labor lawsuit that claimed the company stiffed 824 drillers, derrickmen and floor hands out of overtime wages they should have received. Now the oil and gas drilling company, based in Humble, will make good on its obligations under the federal Fair Labor Standards Act—a total of $579,910.

The DOL filed suit against Unit Texas Drilling after an investigation found that employees weren’t properly paid for overtime hours and time they spent attending mandatory daily safety meetings at the beginning of their shifts. Investigators also discovered the company failed to maintain accurate time and payroll records.

Note: If you work in the oil or gas business, be warned: The long hours drilling workers put in make the industry an easy target for federal investigators. “Those who work on drilling rigs are already putting in more than a full day, since many of them work in 12-hour shifts, and drilling rigs operate 24 hours a day,” said a DOL Wage and Hour Division official.

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