Oilfield & Energy Workers: The Day-Rate Overtime Guide

You work in the oilfield. You spend weeks away from home. You work 12 or 14 hours every single day. Your employer pays a day rate. Most workers in your position believe a day rate covers everything. They assume they do not get overtime because they are paid a high daily amount.

Employers want you to believe this. They want to avoid paying time and a half for the 80 or 90 hours you put in every week. This is a form of oil and gas wage theft.

Recent legal changes mean your day rate does not excuse your boss from paying overtime. A Supreme Court ruling confirmed that workers paid by the day are still entitled to overtime pay. If you work more than 40 hours in a week on a day rate, you are likely owed thousands of dollars. An Oilfield overtime lawyer day rate specialist helps you reclaim these lost wages.

Many energy companies pay a flat daily rate to simplify payroll. This rate is supposed to cover the entire day, no matter how many hours you work. The problem is federal law.

The Fair Labor Standards Act (FLSA) requires overtime pay for any hours worked over 40 in a week. Your employer only avoids this if they pay you on a “salary basis.” A day rate is not a salary.

The United States Supreme Court ruled in the case of Helix Energy Solutions Group, Inc. v. Hewitt that a worker paid a day rate is not a salaried employee. Even if your day rate is $1,000 and you earn $200,000 per year, you still deserve overtime. A salary must be a fixed amount per week, regardless of days worked. A day rate changes based on your schedule.

Why the “Salary Basis” Test Matters

To deny you overtime, your employer must prove you are exempt. Most exemptions require a salary.

• The Salary Basis Test: You must receive a fixed, predetermined amount each week.
• The Salary Level Test: Your weekly pay must exceed a specific dollar amount.
• The Duties Test: Your job must involve specific management or professional tasks.

If you are paid by the day, you fail the Salary Basis Test. You are a non-exempt employee. This means every hour over 40 in a workweek must be paid at the overtime rate.

Companies often try to use the highly compensated employee exemption that oilfield workers frequently hear about. This rule says if you earn over a certain annual amount (currently $107,432), the duties test is easier to pass.

The Supreme Court made it clear: The HCE exemption still requires a salary. If your pay is calculated by the day, the HCE exemption does not apply. You could earn $300,000 a year on a day rate and still be legally eligible for overtime. Employers often ignore this fact. They hope you see a big paycheck and do not ask questions.

Another way companies steal wages is through independent contractor misclassification oil rig operators use to lower costs. They tell you that you are a “1099 contractor.” They give you a day rate. They tell you contractors do not get overtime.

Labeling you a contractor does not make you one. The law looks at the reality of your work.

• Does the company set your schedule?
• Do they provide your tools and safety equipment?
• Do they tell you exactly how to do the job?
• Are you prohibited from working for other companies during your hitch?

If the company controls your work, you are an employee. Misclassifying you as a contractor is a violation of the FLSA. It is a tactic used to avoid taxes, insurance, and overtime.

Calculating overtime for day-rate workers is different from that of hourly workers. It involves finding your “regular rate” for each specific week.

The Regular Rate Formula

First, add up your total pay for the week. This includes your day rates and any non-discretionary bonuses. Then, divide by the total hours you worked.

$$Regular\ Rate = \frac{Total\ Weekly\ Pay}{Total\ Hours\ Worked}$$

The Overtime Premium

Since your day rate already covers the “straight time” for all hours worked, the employer owes you an additional 0.5 times the regular rate for every hour over 40.

$$Overtime\ Pay = (Regular\ Rate \times 0.5) \times Overtime\ Hours$$

For example, if you earn a $500 day rate and work 7 days (84 hours), your total pay is $3,500.

1. Regular Rate: $3,500 / 84 = $41.67 per hour.
2. Overtime Hours: 84 – 40 = 44 hours.
3. Overtime Premium: ($41.67 x 0.5) x 44 = $916.74.

In this example, your employer owes you nearly $1,000 extra for just one week. Over a two-year period, this adds up to a life-changing amount of money.

Many oilfield jobs pay a per diem for meals and lodging. Your employer might exclude this from your overtime pay. This is a common mistake.

If your per diem exceeds the actual cost of your expenses, or if it is just a disguised wage, it must be included in your per diem overtime calculation. By leaving it out, the company keeps your “regular rate” artificially low. This lowers your overtime check. A lawyer ensures every dollar of your compensation is counted.

Watch for these red flags on your pay stub or in your contract:

• You are paid a flat day rate with zero overtime.
• Your boss tells you, “Day rate workers are exempt.”
• You are told you are an independent contractor, but you follow company rules.
• Your per diem is huge while your base rate is low.
• You work 100-hour weeks, but your check never changes.

If you see these signs, your company is likely pocketing your overtime money to increase its margins.

Energy companies have massive legal teams. They spend millions to keep their labor costs down. You need a partner who knows the industry and the specific laws governing day rates.

We help you:

1. Analyze Your Pay: We review your hitches and pay stubs to find every unpaid hour.
2. Challenge Misclassification: We prove you are an employee, not a contractor.
3. Recover Back Pay: We go back two or three years to get every cent you earned.
4. Double Your Money: Under the FLSA, you are often entitled to liquidated damages. This means the court orders your employer to pay you double what they stole.
5. Protect Your Job: Federal law forbids your employer from retaliating against you for a wage claim.

You Earned the Money. We Get It Back.

Oilfield work is grueling. You sacrifice time with your family and risk your safety to power the country. You deserve the full protection of the law. Do not let your company convince you that a day rate means you work for free after 40 hours.

Get a Free, Confidential Case Review

Contact us for a 100% free and confidential consultation. You can tell us your story, and we will tell you if you have a case. You risk nothing by calling, and you could get back thousands of dollars in stolen pay.

Call us at (615) 242-0434 or fill out our online form to get your free case review.