Part of our oilfield overtime cases →
Casing crews are often paid by the joint or by the foot instead of by the hour. That does not cancel overtime. In McClure v. Rocky Mountain Casing Crews, Inc., the United States District Court for the District of North Dakota allowed a group of piece-rate casing crew workers to sue together for unpaid overtime. Senior Judge Billy Roy Wilson granted conditional certification on February 14, 2017, in Case No. 1:16-cv-00322. The company opposed the motion and asked for a hearing. The court granted the motion anyway and denied the hearing request.1 Jack Siegel filed and briefed that motion.
The court granted the workers' motion for conditional certification and authorized notice to other casing crew workers, so they could join the case.1 The company had filed a written opposition backed by four sworn affidavits, and had asked the court to hold a hearing before ruling. The court denied the hearing request and granted certification.
Two weeks later, both sides agreed on the wording of the notice that would go out to workers, and the court adopted that agreed notice on February 27, 2017.2 Notice went out in March 2017. More than twenty additional workers filed consents to join over the following months.
The company never asked the court to undo the certification. The case settled, and the court dismissed it on April 2, 2018, keeping the power to enforce the settlement.3
Piece-rate and footage-based pay systems are common in the casing industry. Workers are paid per joint of casing run, per foot of hole completed, or on similar production-based metrics. While there is nothing inherently wrong with piece-rate compensation, the FLSA still requires employers to pay overtime for all hours worked over 40 in a workweek.
Some oilfield employers treat piece-rate pay as if it ends the overtime obligation. It does not. The regular rate must be calculated by dividing total piece-rate earnings by total hours worked, and then paying the overtime premium (one-half times the regular rate) on top of that for all overtime hours.
Under 29 C.F.R. Section 778.111, when a worker is paid on a piece-rate basis, the regular rate for a particular workweek is calculated by dividing total piece-rate earnings by total hours worked in that workweek. The employer must then pay an additional one-half times this regular rate for each overtime hour. This is known as the "half-time" method for piece-rate workers.
The firm concentrates in overtime lawsuits for oilfield workers paid piece rates, day rates, and other non-hourly compensation methods. These pay structures create unique regular rate calculation issues that require concentrated knowledge of FLSA wage and hour regulations.
If you run casing and you are paid by the joint, by the foot, or by the job, and you work more than 40 hours in a week without extra pay for the extra hours, you may be owed money. The pay structure is not a defense. The company still has to track your hours and still has to pay the overtime premium.
Yes. The FLSA requires overtime for all non-exempt workers who work over 40 hours per week, regardless of how they are paid. For piece-rate workers, the regular rate is calculated by dividing total piece-rate earnings by total hours worked. Overtime is then paid at 1.5 times this rate (or an additional half-time premium) for all hours over 40.
Divide total piece-rate earnings for the workweek by total hours worked. This gives the regular rate. Multiply the regular rate by 1.5 for the overtime rate. The employer owes the overtime rate for every hour worked over 40 in that workweek. If the employer already paid the straight-time piece rate for the overtime hours, it owes an additional half-time premium.
No. Piece-rate pay does not eliminate the employer's obligation to pay overtime under the FLSA. Employers must still track hours worked and pay the overtime premium for all hours over 40, calculated using the piece-rate regular rate formula.
Conditional certification allows similarly situated workers — those paid under the same piece-rate system without proper overtime — to join together in a collective action. Notice is sent to other affected workers, giving them the opportunity to opt in and pursue their own claims.
The FLSA collective action process begins with conditional certification, followed by a notice period for opt-in plaintiffs. After the opt-in period, the employer may move for decertification. If the collective survives, the case proceeds through discovery toward trial or settlement.
If you did this kind of work for another employer and weren't paid overtime for hours over 40, tell us your job title, your employer and the state you worked in. We'll tell you plainly whether we think you have a case. Federal law makes it illegal to retaliate against you for asking.
Siegel Law Group PLLC concentrates in unpaid overtime cases under the FLSA and state wage laws. The firm has filed more than 100 federal overtime cases, obtained 50+ class and collective certifications in 20 federal judicial districts across 15 states, and recovered more than $100 million for workers. It has never represented an employer in a wage case. Free consultation. Contingency fee: we advance case costs, and they are repaid from any recovery. No recovery, no fee and no costs. Phone: (214) 790-4454 | Email: [email protected]
These are results in other people's cases. Every case depends on its own facts and law. Prior results do not guarantee a similar outcome. This website contains attorney advertising.
Attorney responsible: Jack L. Siegel, Siegel Law Group PLLC, Dallas, Texas.
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"Certified" means a judge agreed the case could go forward for a group of workers at once, not just the one person who filed it. It is a step in the case, not the end of it.
Attorney advertising. Case information shown is taken from public court filings and court-approved settlements in cases this firm brought. Every case turns on its own facts and on the law of the court where it is heard. Prior results do not guarantee a similar outcome, and a certification or ruling in one case does not guarantee the same result in another. Nothing on this page is legal advice, and reading it or sending a message does not create an attorney-client relationship.
Jack L. Siegel of Siegel Law Group PLLC, Dallas, Texas, is responsible for the content of this page. He appears in federal courts in other states by admission to those courts or by leave of court, and is not licensed in every state shown in this list.
