Wage and Hour Division (WHD)
U.S. Department of Labor
Oil field construction company in Magnolia, Texas, agrees to pay more than $106,000 in overtime back wages following US Labor Department investigation
MAGNOLIA, Texas -- Five J.A.B. Inc., an oil field construction company in Magnolia, has agreed to pay $106,709 in overtime back wages to 37 current and former oil field construction workers for violations of the Fair Labor Standards Act following an investigation by the U.S. Department of Labor’s Wage and Hour Division.
“Employees are entitled to be fully paid according to the law,” said Cynthia Watson, regional administrator for the Wage and Hour Division in the Southwest. “As a result of the Labor Department’s actions, these workers will now receive the pay they have rightfully earned.”
The investigation by the Wage and Hour Division in Houston, Texas, found that the company misclassified employees as independent contractors and paid them straight time for all hours, including those worked over 40 a week. The company also failed to pay employees overtime for hours spent while traveling and did not maintain required recordkeeping.
The FLSA requires that covered employees be paid for all hours worked in a week. In general, “hours worked” includes all time an employee must be on duty, or on the employer’s premises or at any other prescribed place of work, from the beginning to the end of the employee’s workday. Additionally, the law requires that covered employees be paid at least the federal minimum wage of $7.25 for all hours worked, plus time and one-half their regular rates of pay, including commissions, bonuses and incentive pay, for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.
For more information about the FLSA, call the Department of Labor’s toll-free helpline at 866-4US-WAGE (487-9243) or the Wage and Hour Division’s Houston District Office at 713-339-5500. Information is also available on the Internet at http://www.dol.gov/whd.
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