DCS, a Texas based third party vendor providing services to companies in the oil and gas industry, has been sued for unpaid wages. Affected employees that brought this lawsuit forward include Day Rate Employees for the company that have alleged that they have not been properly paid for all hours worked as required by the Fair Labor Standards Act (“FLSA”) resulting in unpaid overtime. This lawsuit seeks to recover overtime pay for all current and former day rate employees who provided services on behalf of DCS who were classified as independent contractors and paid a day rate during the last three years.
Specifically, the collective action lawsuit alleges that Day Rate Employees regularly worked in excess of 40 hours per week but did not receive any overtime pay for these hours worked over 40. Instead of paying overtime as required by the FLSA, DCS improperly classified Day Rate Employees and those similarly situated as independent contractors and paid them a daily rate with no overtime compensation. This lawsuit claims that these workers should have been classified as employees of the company instead of independent contractors due to the following:
• DCS had direct control over Day Rate Employees’ day- to-day activities providing them daily instructions and job assignments.
• Companies that DCS contracted with provide Day Rate Employees with the equipment they required to do their jobs.
• Day Rate Employees are wholly economically dependent on the company, as they only receive payment for days that they work.
• Day Rate Employees do not incur operating expenses like rent, payroll, marketing, and insurance.
• The services rendered by Day Rate Employees are an integral part of Defendant’s businesses of oil and gas production.
Despite having substantial custody and control over Day Rate Employees and being their employer, DCS misclassified them as independent contractors to avoid paying overtime compensation.This lawsuit is brought on behalf of all similarly situated current and former Day Rate Employees who elect to opt-in to this action pursuant to the FLSA to remedy violations of the wage-and-hour provisions of the FLSA by Defendant that has deprived Plaintiff and similarly situated employees of their lawfully earned wages.
If you have worked for this company specifically or in a similar position in the oil and gas industry as a whole, you may have claims for owed wages. Call our employment law firm, Fitapelli & Schaffer, LLP, for a free and confidential consultation at (212) 300-0375 or visit our website for additional information.
You can also view the filed complaint here.