Wednesday, December 10, 2014

U.S. Department of Labor recovers wages for oil and gas workers



According to the U.S. Department of Labor, thousands of workers employed by contractors engaged in natural gas extraction in the Marcellus Shale region of Pennsylvania and West Virginia are putting in a fair day’s work but not receiving a fair day’s pay.
An ongoing multi-year enforcement initiative conducted by the agency’s Wage and Hour Division offices in Wilkes-Barre and Pittsburgh from 2012 to 2014 found significant violations of the Fair Labor Standards Act which resulted in employers agreeing to pay $4,498,547 in back wages to 5,310 employees.
The division’s investigators attribute the labor violations in part to the industry’s structure.
The majority of violations were due to improper payment of overtime. In some cases, employees’ production bonuses were not included in the regular rate of pay to determine the correct overtime rate of pay.
Investigators also found that some salaried employees were incorrectly classified as exempt from the FLSA overtime provision, and were not paid an overtime premium regardless of the number of hours they worked.
Under the FLSA, all pay received by employees during the workweek must be factored when determining the overtime premium to be paid.
The ongoing enforcement initiative began in 2012. In addition to the Pennsylvania and West Virginia investigations, the agency is examining potential wage and hour violations in other parts of the country.

The FLSA requires that covered employees be paid at least the federal minimum wage of $7.25 per hour, as well as time and one-half their regular rates for every hour they work beyond 40 per week. The law also requires employers to maintain accurate records of employees’ wages, hours and other conditions of employment, and prohibits employers from retaliating against employees who exercise their rights under the law.