DENVER — An overtime claim settlement agreement received final approval in Colorado federal court recently. The overtime claim alleged that J & A Services LLC misclassified a group of its oil field workers as independent contractors, in violation of the Fair Labor Standards Act (FLSA), and wrongfully denied them proper overtime pay. In the settlement, J & A Services agreed to pay $2 million to the class of oil field workers in Colorado, Pennsylvania, Texas and North Dakota.
Employers are required to classify their employees as either exempt or nonexempt. The classification indicates where the employee is governed by overtime wage laws. Many employers will hire additional workers who do work for the employer, but are not employed by the employer. For instance, companies will frequently use cleaning services to maintain their property, but the cleaning workers are employed by the cleaning service, and not the companies they are cleaning. These non-employees are independent contractors. Unless an employee is exempt or classified as an independent contractor, an employer is required to pay overtime wages of at least time and a half for any time worked beyond 40 hours in a week. In the case of J & A Services, the oil field workers were working directly for the company and were not independent contractors.
Around 70 J & A Services’ employees responsible for monitoring oil and gas wells will share in the settlement payouts. The terms of settlement agreement describe how payouts are determined and delivered. The payouts, in this case, will range from a few hundred dollars to several thousand dollars. Payout amounts will be determined based on the invoiced hours that each worker worked beyond 40 hours each week. Furthermore, J&A Services has agreed to pay the entire $2 million within 10 days of the judge’s approval of the agreement. This will allow the workers quick financial relief.
Not all settlement payouts occur as quickly. And not all settlement payouts are determined by the number of hours a plaintiff worked. In some cases all of the plaintiffs receive the same flat amount. Or, in many cases, payouts will be based on the length of time the employee worked for the employer. Also named plaintiffs, those who bring the lawsuit and represent the class in litigation, frequently receive an additional payout for the time and efforts in the lawsuit. In this case, the lead plaintiffs will receive either $5,000 or $7,500 on top of the amount they would have received based on their hours.
If you believe you have been misclassified as an independent contractor and have been denied overtime pay, our experienced team of overtime pay lawyers is available to discuss your situation. Contact them today at (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page and our knowledgeable legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.