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Dwight A. Howes contributed to the content of this post.

Plaintiffs’ counsel have recently been challenging whether the pay practices of oilfield service contractors comply with the overtime provisions of the Federal Fair Labor Standards Act (“FLSA”) or analogous state laws. These lawsuits challenge the use of “day rate” compensation for employees of oilfield service contractors, arguing that use of a day rate violates the FLSA or analogous state statues which require that any work over 40 hours per week by non-exempt employees must be paid at an overtime rate of time-and-a-half. When a non-exempt employee works more than three 12-hour shifts per week under such a “day rate” system, Plaintiffs argue that they are entitled to overtime compensation.Continue Reading Day Rates – Danger Lurks