Oilfield Drilling Equipment and Rig Co. Inc., doing business as ODERCO Inc. in Houston, has agreed to pay $137,788 in back wages for 139 oil field workers, following an investigation by the U.S. Department of Labor’s Wage and Hour Division that determined the employees had been misclassified as independent contractors and consequently denied overtime compensation for all hours of their work, in violation of the Fair Labor Standards Act.
ODERCO is a fabricating company primarily engaged in manufacturing oil field drilling and rigging equipment, with locations in Houston and Abu Dhabi, United Arab Emirates. The company’s Houston-based yard employs welders, fitters, crane operators, painters, mechanics and machinists.
“Employers such as ODERCO cannot evade their duties under the FLSA to pay minimum wage and overtime compensation by misclassifying employees as independent contractors,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “There is no excuse for depriving workers of their rightful wages, and the resolution of this case demonstrates that the Labor Department will vigorously pursue violators to ensure accountability and compliance with the law.”
The investigation revealed that ODERCO improperly classified Houston employees as independent contractors, despite the existence of an FLSA-covered employment relationship between the parties. The company also paid employees “straight-time” wages, rather than time and one-half their regular rates for hours worked over 40 per week, as required under the FLSA.
ODERCO has agreed to pay the full amount of back wages, properly classify its employees and comply with the FLSA in the future.