Oil and natural gas giant Shell Oil and refiner Motiva have agreed to pay $4,460,764 to 2,677 workers after the U.S. Department of Labor (DOL) determined the companies failed to pay workers for required pre-shift meetings.
Because the companies did not consider the time compensable, they did not track employee hours and therefore did not pay proper overtime to the workers. The investigation centered on Shell and Motiva operations in Alabama, California, Louisiana, Texas and Washington. Shell is partial owner of Motiva.
Both companies required employees to attend meetings before they began their 12-hour shifts. Investigators from the DOL’s Wage and Hour Division (WHD) determined that meeting time was compensable.
Note: Generally, anytime the employer requires an employee to attend a function, the employee is on the clock during that function. Consult with your attorney if you expect employees to attend a meeting or function without being compensated for the time.