State:
Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
May 10, 2022
Multiple Lawsuits Challenge Federal Contractor $15 Minimum Wage

Whether to pay any travel time for employees under the Fair Labor Standards Act (FLSA) can be complicated. Those who believe they should be compensated for the time often challenge nonpayment. A dispute over travel time with one individual can sometimes even blossom into a class action lawsuit involving a large number of current and former employees. An oilfield employer recently found itself battling exactly that sort of expanding lawsuit.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

Housing, Worksites, and Travel

Evolution Well Services Operating, LLC, provides a variety of oilfield services to the fracturing industry. Some employees are assigned to 14-day rotations while working at remote well sites. Before beginning each rotation, they traveled from their homes to housing provided by Evolution. After completing the 14-day rotations, they left the employer-provided housing and returned home.

During the rotations, Evolution frequently held morning meetings with workers on-site at the employer-provided housing before they left for the worksite. The meetings, which generally lasted 15 to 20 minutes, included discussions with supervisors, temperature checks, and occasionally drug testing.

Each day, employees traveled between the employer-provided housing to remote worksites. On average, the commute was a three-hour roundtrip. Employees claimed they performed some work tasks during their daily commute.

Class Action

Evolution employees and former employees are pursuing a class action lawsuit against the company, claiming they should have been paid for:

  • Travel time to and from their homes to the employer-provided housing at the beginning and at the end of their 14-day rotations;
  • The 15 to 20 minutes spent attending each morning meeting; and
  • Travel time (three-hour roundtrip) spent each day between the employer-provided housing and a remote worksite.

Although it remains to be seen whether the employees will be successful, at this point the court has conditionally approved them to move forward with their class action lawsuit against Evolution. Copley et al. v. Evolution Well Services Operating, LLC, Case No. 2:20-CV-1442-CCW (W.D. Pa., 2022).

FLSA Considerations

Under the FLSA, whether an employer is required to pay an employee for travel time depends on specific facts, such as:

  • Whether travel is from home to work;
  • Whether travel is to different worksites during the day;
  • Whether travel is to a different city and returning the same day;
  • Whether travel requires an overnight stay;
  • Whether travel is during regular work hours; and
  • Whether the employee performs work while traveling.

The Wage and Hour Division’s (WHD) Fact Sheet #22 provides a helpful summary of when travel time is compensable: https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/whdfs22.pdf

Check Your Travel Compensation Practices

Under the FLSA, an employer’s obligation to pay employees for some types of travel time, but not others, can be confusing. Increasingly, attorneys are targeting employers with potential class action lawsuits aimed at challenging a company’s practices. Before that happens to you, audit your own travel pay practices. Make sure you are consistent on when travel time is paid and that your practices comply with the FLSA’s requirements.

Charlie Plumb is an attorney in the Tulsa, Oklahoma, office of McAfee & Taft where he represents management in all phases of employment law and labor relations. Much of his practice is dedicated to counseling employers on compliance with a broad range of state and federal employment laws and regulations and educating management on best practices for avoiding disputes arising from the employer/employee relationship. He can be reached at charlie.plumb@mcafeetaft.com.

Featured Free Resource:
Cost Per Hire Calculator
   
   
 
 
Twitter  Facebook  Linked In
Follow Us
CT-WEB06
Copyright © 2022 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on https://Compensation.BLR.com
Document URL: https://compensation.blr.com/Compensation-news/Compliance/Minimum-Wage/Multiple-Lawsuits-Challenge-Federal-Contractor-15-/