Employers that fail to protect themselves may find litigation costs cutting into their bottom line. Because of its high compensation rates, the oil business can be a tempting target for plaintiffs.
Those big paychecks sometimes blur the lines betweenand . In a bid to cut large overtime costs, employers may err in employee classification, a move that could bring misclassified employees a big payday.
Advice: Regularly review your employee classifications, with input from your attorney.
Employers that use arbitration agreements can theoretically shield themselves from large legal bills and the threat of class actions, but only if those agreements are well crafted. Boilerplate agreements may not provide enough protection. To create a custom-designed agreement that will withstand legal scrutiny, consult with an attorney who knows the energy industry and the latest court rulings.