Overtime Violations in Oklahoma's Oil and Gas Industry

Oklahoma's oil and gas industry runs on long hours. Roughnecks, roustabouts, derrickmen, motorhands, and field technicians routinely work 80 to 100 hours per week during drilling operations — fourteen-hour days, seven days straight, sometimes for months without a break. For many of these workers, the paycheck at the end of the hitch doesn't reflect the overtime they're legally owed. Instead, they receive a flat daily rate that treats sixty hours the same as a hundred, or they're classified as independent contractors who supposedly aren't entitled to overtime at all. Both practices are illegal under the Fair Labor Standards Act, and they cost Oklahoma oilfield workers millions of dollars every year.

The Department of Labor has identified the oil and gas industry as a priority enforcement sector precisely because wage theft is so pervasive. The violations aren't subtle or accidental — they're built into the business model. And because the same pay practices typically apply to every worker on a rig or in a field crew, these cases are natural candidates for FLSA collective actions that force companies to answer for what they've done to their entire workforce.

The Day-Rate Problem

The most common overtime violation in Oklahoma's oilfield is the day-rate pay scheme. Instead of paying workers an hourly rate, companies pay a flat amount per day — $200, $300, $400, sometimes more — regardless of how many hours the worker puts in. The employer treats this as a complete payment for the day's work, no matter whether the shift runs 8 hours or 16.

This is not how the FLSA works. Under 29 U.S.C. § 207(a)(1), non-exempt employees must receive overtime pay at a rate of 1.5 times their "regular rate" for all hours worked beyond 40 in a workweek. When an employee is paid a day rate, the regular rate is calculated by dividing the total daily earnings by the total hours worked that day. If a worker earns $300 for a 15-hour day, the regular rate is $20 per hour — and every hour beyond 40 in the workweek must be compensated at $30 per hour.

Many oilfield employers either don't understand this calculation or deliberately ignore it. The result is the same: workers who should be earning significant overtime premiums receive nothing extra for the 40, 50, or 60 hours beyond the 40-hour threshold. Over the course of a year, the unpaid overtime can easily reach tens of thousands of dollars per worker.

The Department of Labor addressed this directly in its fact sheet on day-rate workers, confirming that a day rate does not satisfy the FLSA's overtime requirements unless the employer also pays overtime at the proper rate. Courts across the country — including the Tenth Circuit, which covers Oklahoma — have consistently held that day-rate pay without proper overtime compensation violates the FLSA.

Independent Contractor Misclassification

The second major violation in Oklahoma's oilfield is misclassification of employees as independent contractors. Oil and gas companies, particularly smaller operators and staffing firms, classify roughnecks, roustabouts, and field service workers as 1099 independent contractors rather than W-2 employees. The classification serves one purpose: it allows the company to avoid paying overtime, providing benefits, covering workers' compensation insurance, and paying its share of payroll taxes.

The problem is that most oilfield workers classified as independent contractors are employees under the FLSA's "economic reality" test. This test examines the actual working relationship, not what the company calls it on paper. Courts look at several factors: whether the worker controls how and when the work is performed, whether the worker can profit or lose from the arrangement, whether the company provides tools and equipment, whether the relationship is permanent, whether the work is integral to the company's business, and the worker's level of skill and independent judgment.

For most oilfield workers, every factor points to employment. The company tells them where to report, when to start, what to do, and how to do it. The company provides the rig, the trucks, the tools, and the safety equipment. The workers can't hire substitutes, don't advertise their services, and work for one company at a time. They're employees in every meaningful sense — and they're entitled to overtime under the FLSA regardless of what their contract says.

The Exempt Employee Dodge

Some oilfield employers take a different approach: they classify workers as "exempt" from overtime under one of the FLSA's white-collar exemptions. The most commonly abused exemption in the oil and gas industry is the administrative exemption, which requires that the employee's primary duty involve the exercise of discretion and independent judgment on matters of significance. Employers apply this exemption to field supervisors, rig consultants, and technology specialists who perform primarily manual or technical work with limited independent decision-making authority.

The executive exemption — for employees who manage a department and supervise at least two full-time employees — is similarly misapplied to "pushers" and crew leads who spend most of their time doing the same physical work as their crews. If a tool pusher spends 80% of his shift working alongside his crew and 20% directing their activities, he is not exempt under the executive exemption. Under the FLSA, the employee's "primary duty" must be management — not just an occasional supervisory responsibility tacked onto a physical labor job.

The salary threshold adds another layer. To qualify for most white-collar exemptions, an employee must earn at least $684 per week on a salary basis (as of the current DOL threshold). Many oilfield workers who are classified as exempt don't actually receive a guaranteed salary — their pay varies based on days worked, which is functionally a day rate, not a salary. A day rate that fluctuates based on whether the worker reports to the site is not a "salary" under DOL regulations, and the exemption fails.

What FLSA Recovery Looks Like

The FLSA provides powerful remedies for workers who have been denied overtime. Under 29 U.S.C. § 216(b), employees can recover:

• Back pay: The full amount of unpaid overtime, calculated at 1.5 times the regular rate for all hours over 40 per workweek
• Liquidated damages: An equal amount — effectively doubling the recovery. Liquidated damages are automatic unless the employer proves the violation was in good faith and based on reasonable grounds.
• Attorney's fees and costs: The employer pays the employee's lawyer. This fee-shifting provision makes it economically viable for workers to pursue even modest claims.

The statute of limitations is two years for standard violations and three years for willful violations — meaning the employer knew or showed reckless disregard for whether its pay practices violated the law. In the oilfield context, where companies have been warned repeatedly about day-rate and misclassification violations, the three-year period frequently applies.

Why Collective Actions Matter in the Oilfield

When an oil and gas company pays all its roughnecks a day rate without overtime, or classifies every field worker as a 1099 contractor, the violation isn't unique to one employee. The same illegal pay practice applies to every worker in the same position across the company's operations. This makes oilfield wage cases natural candidates for FLSA collective actions, where workers join together to hold the employer accountable for systemic violations.

Collective actions under 29 U.S.C. § 216(b) allow "similarly situated" employees to combine their claims in a single lawsuit. An individual roughneck owed $15,000 in unpaid overtime may not justify the cost of federal litigation — but when 50 roughnecks from the same company each have the same claim, the case represents $750,000 in unpaid wages, plus another $750,000 in liquidated damages. That aggregate exposure concentrates the employer's attention and creates serious settlement pressure.

The Department of Labor's enforcement data shows that oil and gas companies are among the most frequent targets of FLSA actions nationwide. Oklahoma, as one of the nation's top producing states, sees a disproportionate share of these cases. Both the DOL and private attorneys have successfully challenged day-rate schemes, independent contractor misclassification, and exemption misclassification in the Oklahoma oilfield.

What You Should Do

If you work in Oklahoma's oil and gas industry and you're being paid a day rate without overtime, classified as an independent contractor when you work like an employee, or told you're "exempt" from overtime despite doing primarily manual or technical work, you likely have a claim under the FLSA. Here's what to do:

1. Document your hours. Keep a personal record of every shift — start times, end times, days worked. Your phone's location history can corroborate this.
2. Save your pay records. Every pay stub, every 1099, every direct deposit record. These establish your actual pay rate and total compensation.
3. Don't confront your employer yet. It's natural to want answers, but speaking to an attorney first protects your options — including the possibility of a broader collective action.
4. Act before the deadline. The FLSA statute of limitations runs from each unpaid paycheck. Every week you wait is a week of overtime you may not recover.

At Addison Law, we represent Oklahoma oilfield workers in wage and hour claims. We understand the industry, the pay practices, and how to calculate what you're owed. Contact us for a free, confidential evaluation.

Frequently Asked Questions

Can my employer pay me a day rate?

Yes, but a day rate alone does not satisfy the FLSA's overtime requirements. If you work over 40 hours in a workweek, your employer must pay overtime at 1.5 times your regular rate — which is calculated by dividing your daily earnings by hours worked that day. A $300/day rate for a 15-hour day means your regular rate is $20/hour, and overtime must be paid at $30/hour.

I signed a contract saying I'm an independent contractor. Does that matter?

Not under the FLSA. The FLSA uses an "economic reality" test that looks at the actual working relationship, not what the contract says. If the company controls your schedule, provides your equipment, tells you how to do the work, and you cannot profit independently from the arrangement, you are likely an employee regardless of your contract or 1099 status.

What if I'm afraid of retaliation?

The FLSA's anti-retaliation provision, 29 U.S.C. § 215(a)(3), makes it illegal for an employer to fire, discipline, or punish you for filing a wage complaint or joining a collective action. If your employer retaliates, you have an additional claim with separate damages. Retaliation claims are frequently stronger than the underlying wage claim.

How much could I recover?

This depends on your day rate, your hours worked, and the period of violation. As an example: a roughneck earning $300/day who works 84-hour weeks (12 hours/day, 7 days/week) has a regular rate of $25/hour, meaning overtime should be $37.50/hour for 44 overtime hours per week. That's $1,650 in weekly unpaid overtime. Over two years, that's $171,600 — and liquidated damages could double it to $343,200.

This article is for general information only and is not legal advice.