$1.25M lesson: Blue collar work is always eligible for OT — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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$1.25M lesson: Blue collar work is always eligible for OT

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in Human Resources,Overtime Labor Laws

A Texas-based oil and gas drilling company, ROC Services Inc., has settled an overtime lawsuit filed by two workers in Pennsylvania. Two employees testing wells filed suit, alleging the employer’s pay scheme ran afoul of the Fair Labor Standards Act (FLSA).

The employees claimed the company frequently worked the two workers and similarly situated staff about 84 hours a week. The company paid them a salary, per diem and a day bonus, but no overtime. The workers were performing manual labor jobs that weren’t FLSA exempt.

The parties elected to settle through mediation. Final tab: $1.25 million in back pay for the workers.

Note: Manual labor positions are always nonexempt positions, meaning employers must pay workers time and a half for all hours worked in excess of 40 in a week.

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